Lease-termination provisions and the economic-interest concept: interminable confusion

Journal Article · Sun Mar 01 04:00:00 EST 1981 · Oil Gas Tax Q.; (United States)

OSTI ID:6438689

Goff, N M

The purpose of this article is to review the historical underpinnings of the terminability factor and to determine if courts should continue to place emphasis on its presence in natural resource leases. For those taxpayers who do not wish to become susceptible to or increase the risk of litigation in the terminability area, two alternatives exist: (1) without cause on short notice termination clauses should be avoided; and (2) if termination clauses are utilized, they should be tailored to existing Revenue Service approved guidelines. Should litigation arise, the taxpayer would be better off paying the tax deficiency and suing for refund in the Court of Claims. It is hoped that the analysis will produce a twofold result with respect to the terminability issue: (1) prompt a reexamination of the view adopted by the Service and the Tax Court; and (2) demonstrate the very reasonable position of the Court of Claims in terms of underlying Congressional purpose, historical perspective and the legal percepts inherent in the economic interest concept. 19 references.

• Research Organization: Peat, Marwick, Mitchell and Co., Denver, CO
• OSTI ID: 6438689
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 26:3; ISSN OGTQD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
CASE LAW
ECONOMIC POLICY
GOVERNMENT POLICIES
LAWS
LEASES
LEGAL ASPECTS