If you intersect the cone x^2 + y^2 = a^2 z^2 with the parabolic dome z = b -(x-c)^2 - y^2 you get the equation x^2 + y^2 - a^2 (b - (x-c)^2 - y^2)^2 = 0
It's a polynomial of degree 4, and doesn't factor in general, so solutions are not going to be simple: certainly you shouldn't expect ellipses.
Department of Mathematics
http://www.math.ubc.ca/~israel University of British Columbia Vancouver, BC, Canada V6T 1Z2