The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-08-30
IN THE OIL FIELDS
ofnce s24ii Rosidenoe s4o W. PECK. o. Bor oaa.
p. q. Bor s3a

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ANN. I. l,.,I,t.n,. tD, r,..,cr,y
,.s.II.I,, of ,'Uy.I,ti truu'rt.y'
..,i,l. A., i,s ,.,,'.i ,f ,pr,i,,, tD,rc,
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a.. I.fl ....t,r. and I,...c. u,,b |rgt.
J,ut,I ,tu.rsr, o.. rro p,iJ fo,
v.at.s MOI repotr. bpuIipr ,tr ir
connection win tuc drilling OF volI,
ana mrfb,r dry.lout..uf of tn,
prop,tty uHv al ihr upi,uu OF th,
opriutor b, deducted las am upprat.
ina. ..xpeu4. nr. rutfe,d to ..ulfpI.aC.
count Tho value pf the equities of
lcHaur aud lessee shall b, computed
scpurutoly but when determined aa
of tho same basic date, shall tuEoth-
or never .Nrurd tho Nullu ut tuuf
By basic date is meant March i.
1913. in case of acquisition prior To
that date. or the date OF acquisition
whore It occurred on or after tnat
date.
II, I'm exercising the opuon mcu.
toned lutuc preceding paragraph,
the individual ur corporation uharEpa
the expense of uillilug wells or fuIa
thcr development TO capital account
the Same, insofar, as such expense
Is roptrArnttd uy physical property.
may De taken INTO account In de-
tcrminlns a reasonable allowance tor
depreciation during each year until
the property account thus augment
ed has been cNtinguished through
annual depreciation deductions, att
cr which no furthcr deduction on
th!s account va! DO allowed. In the
case ut going or producing bu5l-
ness the cost OF drilling non-prUduc-
tive wells may be deducted from
gross Income aB an operating cX-
PohHe'
Estimate OF Probable l,csOurCcS.
In the case OF either an owner or
Lessee II Will bo required that an Cs-
tlm6tc, subject to the approval OF
oil or gas contained IN or TO be re-
covered irom the territory with re-
spect TO which the investment Is
made. The invested capital (valuc
as OF March /, 1913, or cost, IL ac.
quired ON or after that date, plus cost
OF development, other than cost of
physical property, up TO the point Of
expense paying production viii be
divided by the number of units OF
oil or gaa so estimated 10 be con-
talned In or to be recovered from the
territory. and the quOtlcnt Will be the
per unit cost ar amount Of capital
Invested In each unit recoverable.
Thi5 quotlent, or per unit cost, whom
multiplied by the number of units
removed from the territory during
any one year. VIII determine the
amount which may be allowably de
Quoted from the gross income of
that year on account OF depletion OF
assets or as return Of Invested cap
ltnl until the total OF such deduc-
ions shan equal the capital invest
ed.
Every individual or corpora tlon
| entitled to a deduction on account
OF the depletion of the property
under opcrntlon or for rcturn nf M
capital invested WIN respect ~ thc
| shme shall Xeen an accurate ledge,
account, in which. In the case of re-
| owner. shall be charged the fair
market value AS Of Nnrrh 1 1Q12 N,
| the cost. If acquired ON or nffgr thot
| date, of the oil or gas nropertv min,
| cost of devclopment as hcrctoinr,
| defined, or. i'm tho rnss or a Iossro
| the fair market value as or March /
! 1919, or the cost. If acquired ON a,
| after that date. OF tho losgre's ip,
| turcst, plus cuat OF dcvelopment
| This account shau be credited viii
the amount claimed ana aIIo,ycl
zach year MS a deduction on ocroun
of depletion or as a return a., can
nal 10 the end that when the crod
its TO tho acrount canal tho J.itt
no further deduction ON eithnr ne
count. with respoct 10 thls pronort,
and the capital Invested therein vvii
be allowed. or. in lien of dlror
| credit 10 propertv accom-, ~,
amount SO ciaimcd and allowed os
deduction mny be credited Ia n de-
| pietion reserve nccoupt
Where Ncsourcea Arc i,ncor,,in
IL for any reason ihe ounntir, -
oil or gas I'm tho pronertv conro
ha datermincd with arV isyrno N
certainty. the depIctIon dcJucttc,
will be computcd ln ar,nrJ,,,,
with the ruIe set oui tr Tr.as,,,
| Decision 244T. cxcept th,t logscc
may commute their d.1,'rtf,p z,
return of ,onIfnl la tho s.,,, -,
Nor as owners In fcet thnt h. tSa
llnay cNtlngulsh their lnnit,l On a.,
h,gis 80 ~. s,l,,,tl. d. a. ., 80