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U.S. Department of Energy
Office of Scientific and Technical Information

Income taxation of natural resources

Book ·
OSTI ID:7317528

The purpose of this book is to describe and explain the income tax rules of the United States and Canada as they relate to the natural resource industries. Natural resources in the broadest sense refer to oil, gas, minerals, and timber. The exploration for, development of, and production of minerals are commonly referred to as the extractive industries. Two fundamental observations may be made about Federal income taxation of the extractive industries. (1) the Federal tax concept of income derived from oil, gas, and mineral production differs substantially from the customary business, accounting, or legal concepts of income; and (2) there is a substantial resemblance in the Federal income tax principles that apply to the production of oil and gas and to the production of other minerals. There are many different minerals and there are many ways in which minerals might be classified. For purposes of this book the simplest and the most useful classification divides the minerals into four basic categories: oil and gas, coal, non-metals, and metals. The introductory chapter continues with orientation discussions of the petroleum industry and the solid minerals industries. The chapters following are titled: Extractive Industries; Oil and Gas; Solid Minerals; Timber; Canada; Foreign Investment; Review Act (Canada); and Foreign Operations. (MCW)

OSTI ID:
7317528
Country of Publication:
United States
Language:
English