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Oil and Gas Tax

The mission of our Oil & Gas Tax Services is to provide melded engineer technical and business and commercial development experience to produce ideas and strategies related to the petroleum industry’s financial and tax matters. Our services include but are not limited to the following:

Tax Matter 

Issue(s)

Service
Petroleum Industry Overview and Tax Matters Inexperienced staff, specific issue(s) awareness and/or treatment Seminar

  • Highlight the beginning of petroleum formation, upstream operations, map reading, downstream operations, taxation and financial terminology -what they mean and how they tie to and are applied in the industry.
Depletion Property Definition for Depletion Purposes Seminar

  • Review and evaluate records that reflect property concept for tax purposes
  • Determination of separate mineral deposits for separate property treatment.
Depletable Basis Evaluation, Analysis, Determination, Confirmation
of allocation  of costs between leasehold and equipment
Reserve Estimates Evaluation, Analysis, Determination, Confirmation
Review of reserve categories as they apply to depletion deductions proved

  • Proved Developed Producing Reserves
  • Proved Developed Nonproducing Reserves
  • Proved Undeveloped Reserves

Unproved Reserves

  • Probable Reserves
  • Possible Reserves

 
Proven Property Transfers for Percentage Depletion Purposes Evaluation, Analysis, Determination, Confirmation
if or when deductions can be taken by transferees
Cost and Percentage Depletion Calculation, Evaluation, Analysis, Determination, Confirmation
Intangible Drilling Costs (IDC) Capital vs. Expense Evaluation, Analysis, Determination, Confirmation
Timing of Deduction Evaluation, Analysis, Determination, Confirmation

Prepaid Expenses

Contract Provisions

  • Turnkey
  • Footage
  • Day Work
Partnerships Evaluation, Analysis, Determination, Confirmation

  • Partnership Verification
  • Allocation of  IDC deduction
Carried Interest Arrangements Evaluation, Analysis, Determination, Confirmation
of  carrying and carried parties’ agreement
Bottom-hole and Dry-hole Contributions Evaluation, Determination, Confirmation of abandonment or property retention status
Lease and Leasehold Costs Geological and Geophysical (G&G) Expenditures Evaluation, Analysis, Determination, Confirmation
of Capital Costs versus ExpenseAllocation of Expenditures
Delay Rentals Evaluation of payments to determine whether delay rentals, lease bonus, royalty payments
Top Leasing Evaluation, Determination, Confirmation of EXPIRATIONS AND RENEWALS of leases
Acquisitions Evaluation, Analysis of Allocation of G&G Expenditures, Leasehold and Equipment Costs
Sales, Exchanges  and Other Dispositions
Sale of Lease Equipment Evaluation, Analysis of Allocation between Leasehold and  Equipment costs
Production Payments Evaluation, Analysis, Determination, Confirmation
of compliance to production payments derived as per arrangement
Worthless Minerals Evaluation, Analysis, Determination, Confirmation
of transactions and identifiable events
Lease  Abandonment Evaluation, Analysis, Determination, Confirmation
of expiration under lease terms, lease forfeit, top lease, establishing a time of worthlessness
Sublease Evaluation, Analysis, Determination, Confirmation
of retention or nonretention of nonoperating interest.
Enhanced Oil Recovery (EOR) Credit “Unapproved” EOR Methods Technical Support in Identification  to reflect advances in technology
Qualified Expenditures and   Credit Amount Identification and Estimate
Private Letter Ruling Request Technical Support in Preparation for ruling for a decision on a method.
Contract Compliance Expense Overpayments, Revenue Underpayments Evaluation and Analysis 
of  high impact Joint Operating, Partnership, Lease and Purchase/Sales agreements of revenues  and expenses derived

 

For more information contact us.