Revenue Ruling 77-176 revisited

Journal Article · Fri Nov 30 23:00:00 EST 1979 · Oil Gas Tax Q.; (United States)

OSTI ID:5189347

Friske, K A

Farm-out arrangements are used in the oil and gas industry to share operating interests in exchange for contributions to exploring and developing a property. Originally nontaxable, new farm-out transaction rulings define separate properties for each taxpayer in the transaction on the grounds that the mineral interests of the taxpayers are dissimilar. The impact of this ruling is detrimental to carved-out drill sites. Several plans are suggested for testing this ruling in the courts. Although legal action, such as an injunction, can be counterproductive, it may be the only solution. (DCK)

• OSTI ID: 5189347
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 28:2; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020200 -- Petroleum-- Reserves
Geology
& Exploration
021000 -- Petroleum-- Legislation & Regulations
03 NATURAL GAS
030200 -- Natural Gas-- Reserves
Geology
& Exploration
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294000* -- Energy Planning & Policy-- Fossil Fuels
DRILLING
EXPLORATION
INDUSTRY
LAWSUITS
LEGAL ASPECTS
NATURAL GAS INDUSTRY
OWNERSHIP
PETROLEUM INDUSTRY
REGULATIONS
RESOURCE DEVELOPMENT
TAXES
WELL DRILLING