, 1921-10-27
VALUABLE OIL BULLETIN

The Manual for the Oil and Gas
Industry as originally published in
1919 contained much information
that was invaluable to the Jay
in making out his return and supply
ing proper %voluation data. Since the
publication of the original Manual, a
number of Treasury Rulings have
been rendered; much additional in
formation regarding the estimation
of oil reserves has been collected,
studied and prepared for publica-
ton: also a large mount Of data
collected and tabulated relating to
the number of wells drilled, thus
establishing a dry-hole hazard for
various districts and fields.
On account of the demand for this
additional information. the Revised
Manual has been issued to assist the
taxpayer of the oil and gas industry
to prepare his Federal tax returns
correctly and expeditiously. AL
though endeavOr has been made to
anticipate all questions that may be
asked regarding the law and regula-
tions, and the latter have been am
plified when it was deemed necessary
to obtain the desired result, it is
recognized that such a manual is
only general and cannot cover all in
formation gathered by engineers,
biologists and other technologists,
the object being to establish a basis
for arriving at valuation. depletion
and depreciation in connection with
the oil and gas industry.
Records of production of thou
of properties scattered through
out all fields in the United States
~. nnrCc1I,, -1,-.f:.1 -, A-1 /.
by experienced engineers with the re-
that average future production
and tables are available for
practically every producing district in
the United States.
The book consists of five parts:
Part l.. deals directly with the
Law and Regulations. These. as
they relate to the oil and gas in
dustry. have been prepared in ac-
with recent Treasury Deci-
and are explained by the inclu-
sion Of a number of illustrations and
to bring out their applica- i
ton. !
Part 2. deals with the question of
and should assist the
taxpayer in standardizing his CLASH
Of equipment. 1t also offers
ohS6tSLloIS ds " TeldllNe rates VI
for different types of
physical property. The rates are not
to be applied Unfortunately to !
cases. but are relative only
and the Treasury Department is in
no way committed to accept them in
the returns.
Part ;, consists of descriptions and
methods of estimating underground
reserves. especially by means of
production curves and tables. The
material in this chapter was prepared
by w. w. Cutler. Petroleum Tech
nologist, United States Bureau of
Mines and Rnber F.. White. Valua-
ton Engineer of the Bureau Of In
ternal Revenue. A collection Of
curves and tables covering many Of
the pools. districts and fields in the
United States accompanies the text.
The curve and tables are intend
ed as a suggestion for the guidance
of the taxpayer in the computation
of his depletion allowance. which in
has a direct bearing on the
amount of his tax. They are not to
be applied unfortunately to
specific properties and the Treasury
Department is in no way committed
to accept estimates based upon them.
Every claim for deduction on account
of depletion must be accompanied by
a detailed statement Of cost. pro
duction and any other data upon
which such claim is based.
Part 4. contains many tables show
ing states. counties or districts the
number of wells drilled. revealing
much information as to initial pro-