Bob, that's the same number BMW has been quoting in their manuals since the 30s, back when they were using felt and leather seals. I've never had a BMW use anywhere near that much oil. For that matter, my VW Beetle never used anything like that, either.
That said, I've only put a few hundred miles on my Free Bike, so I don't know where it is yet for either oil consumption or gas mileage (another thread).