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The ACR methodology defines eligible abandoned wells to include: (1) unplugged wells with a spud date prior to 1950, which are eligible because they predate standardized regulations for P&A, and (2) unplugged wells with a spud date of 1950 or later and having no production for six consecutive months. million vehicles per year.
If this approach is utilized, the parties should consult their tax advisors as to whether a tax partnership agreement should be included in the transaction documents to avoid possible unforeseen tax consequences on the earning of such additional formations. The Five Lessons 1. Take advantage of the geology.
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