Matthew Laird

The OG Investor

Notes and Sources

Every Way to Invest in Oil and Gas, in Plain English. By Matthew Laird.

2,642 notes in 42 sections · Last updated October 7, 2026

Every numbered callout in the book points to a note here, listed by chapter, with the source and a link where one exists. The numbers match the printed book. Links were live when the book went to press; if one has moved, search the source’s name and the document title. Last updated October 7, 2026.

Contents

Front of the book Before You Begin

60 notes, 50 numbered in the book

  1. FINRA Investor Education Foundation, National Financial Capability Study (NFCS), multi-wave analysis. FINRA Foundation, National Financial Capability Study, Waves 1–6 (2009–2024); discussed in FINRA.org, “National Financial Capability Study: Key Trends and Insights” (2025). https://www.finra.org/media-center/finra-unscripted/nfcs-key-trends-and-insights
  2. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  3. Author’s calculation from notes 2, 22, 26, 51, 52, 53, 54. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  4. IRC § 461(l)(3)(A) (flush language). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  5. IRS, Instructions for Forms 1099-MISC and 1099-NEC (12/2026), Specific Instructions for Form 1099-MISC, “Box 2. Royalties.” https://www.irs.gov/instructions/i1099mec
  6. IRS, Partner’s Instructions for Schedule K-1 (Form 1065) (2025), Part III: Box 1; Box 7; Box 13 codes I and AD; Box 14 code A; Box 20 codes T and Z. https://www.irs.gov/instructions/i1065sk1
  7. United States Oil Fund, LP Form 10-K FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  8. IRC § 199A(d)(1)(B); Instructions for Form 8995 (2025), “Services performed as an employee excluded from qualified trades or businesses” (irs.gov/instructions/i8995). https://www.law.cornell.edu/uscode/text/26/199A
  9. IRC § 611(a) first sentence; 2025 Instructions for Schedule E, Part I, “Line 18,” last paragraph (irs.gov/instructions/i1040se). https://www.law.cornell.edu/uscode/text/26/611
  10. Author’s calculation from note 4. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  11. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  12. IRS Pub. 925 (2025), “Dispositions.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  13. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T
  14. Author’s calculation from notes 2, 11, 12, 13. https://www.ecfr.gov/current/title-26/section-1.469-2T
  15. Dahlstrom, M.F. (2014). Using narratives and storytelling to communicate science with nonexpert audiences. Proceedings of the National Academy of Sciences, 111(Suppl 4), 13614–13620. https://doi.org/10.1073/pnas.1320645111
  16. Small, D.A., Loewenstein, G., & Slovic, P. (2007). Sympathy and callousness: The impact of deliberative thought on donations to identifiable and statistical victims. Organizational Behavior and Human Decision Processes, 102(2), 143–153. https://doi.org/10.1016/j.obhdp.2006.01.005
  17. Freling, T.H., Yang, Z., Saini, R., Itani, O.S., & Abualsamh, R.R. (2020). When poignant stories outweigh cold hard facts: A meta-analysis of the anecdotal bias. Organizational Behavior and Human Decision Processes, 160, 51–67. https://doi.org/10.1016/j.obhdp.2020.01.006
  18. Pub. L. 119-21, § 70601(b). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  19. Rev. Proc. 2025-32 sec. 3.31. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  20. Rev. Proc. 2024-40 sec. 3.32 (2025: $313,000, $626,000 joint); Rev. Proc. 2025-32 sec. 3.31 (2026); Pub. L. 119-21, § 70601(b) (new base year). https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
  21. Gerd Gigerenzer and Ulrich Hoffrage, “How to Improve Bayesian Reasoning Without Instruction: Frequency Formats,” Psychological Review, 102(4), 684–704 (1995). https://doi.org/10.1037/0033-295X.102.4.684
  22. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  23. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1 (Feb. 24, 2010), Table 4 “Summary of Investor Tax Benefits and Cash Distribution Returns as of September 30, 2009” and footnotes 1, 2 and 8. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  24. Author’s calculation from notes 4, 19. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  25. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  26. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  27. Author’s calculation from notes 55, 56. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  28. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  29. Tex. Bus. Orgs. Code § 101.114 (Liability for Obligations). https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.114
  30. Oklahoma Statutes Citationized, Title 18, Chapter 32 (Oklahoma Limited Liability Company Act), Section 2022 – Liability of Member or Manager. https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=67192
  31. IRS Office of Chief Counsel, CCA 200952054 (released Dec. 24, 2009), Section 469 analysis, p. 2. https://www.irs.gov/pub/irs-wd/0952054.pdf
  32. Treas. Reg. § 1.469-5T(a)(1)–(7). https://www.ecfr.gov/current/title-26/section-1.469-5T
  33. Devon Energy Corp., Form 8-K (Exhibit 99.2, investor presentation). https://www.sec.gov/Archives/edgar/data/1090012/000119312518146564/d580771dex992.htm
  34. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  35. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  36. Author’s calculation from notes 33, 35.
  37. Author’s illustration of working-interest and net-revenue-interest math.
  38. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  39. Pub. L. 119-21, 139 Stat. 72 (2025): no provision amends IRC § 469; the Act’s only mention of section 469 is a cross-reference in new § 199A(i)(2)(B). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  40. IRC § 613A(c)(1). https://www.law.cornell.edu/uscode/text/26/613A
  41. IRC § 613A(d)(1). https://www.law.cornell.edu/uscode/text/26/613A
  42. EIA, “U.S. Crude Oil, Natural Gas, and Dry Exploratory and Developmental Wells Drilled” and “U.S. Dry Exploratory and Developmental Wells Drilled” (Petroleum & Natural Gas Data Navigator). https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=e_ertw0_xwc0_nus_c&f=a
  43. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2018, filed April 1, 2019 (accession 0001387131-19-002346). https://www.sec.gov/Archives/edgar/data/1353722/000138713119002346/mep06-10k_123118.htm
  44. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  45. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  46. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  47. Securities Exchange Act of 1934 § 15(a)(1), 15 U.S.C. § 78o(a)(1). https://www.law.cornell.edu/uscode/text/15/78o
  48. Securities Exchange Act of 1934 § 3(a)(4)(A), 15 U.S.C. § 78c(a)(4)(A). https://www.law.cornell.edu/uscode/text/15/78c
  49. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  50. FINRA Qualification Exams, Series 22. https://www.finra.org/registration-exams-ce/qualification-exams/series22
  51. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  52. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  53. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  54. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  55. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  56. Author’s calculation from notes 55, 57, 58, 59, 60. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  57. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  58. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  59. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  60. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim

Notes 51 to 60 have no number in the book; other notes in this list cite them.

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Chapter 1 From lease to paycheck

66 notes

  1. Author’s calculation from notes 2, 3.
  2. Devon Energy Corp., Form 8-K (Exhibit 99.2, investor presentation). https://www.sec.gov/Archives/edgar/data/1090012/000119312518146564/d580771dex992.htm
  3. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  4. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  5. Texas General Land Office, Tabulation of Bids, Tuesday, May 12, 2026, tract MGL #34 (H&T C RY CO Survey, Ward County). https://www.glo.texas.gov/sites/default/files/documents/energy/past-bid-sales/2026-sealed-bid-salespast-bid-sales/may-2026-tabulation-of-bids.pdf
  6. IRS Publication 5652 (Rev. 2-2023), Oil & Gas Audit Technique Guide, Part C “Lease and Leasehold Costs,” para. (1), pp. 30–31. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  7. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  8. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996). https://www.courtlistener.com/opinion/2448635/heritage-resources-inc-v-nationsbank/
  9. Renewal Oil & Gas Lease between Westland Development Co., Inc. and Tecton Energy, LLC, Sept. 17, 2006, Paragraph 24 (“Continuous Drilling”), Exhibit 6.5 to Atrisco Oil & Gas LLC Form 10-SB12G. https://www.sec.gov/Archives/edgar/data/1376992/000119312506204481/dex9965.htm
  10. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. IV.A (Title Examination), as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  11. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. IV.A (Title Examination) and Art. I.E, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  12. Tex. Nat. Res. Code § 91.402(b). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  13. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  14. Author’s illustration of working-interest and net-revenue-interest math.
  15. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  16. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  17. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  18. Participation Agreement between ENTEK GRB LLC (farmee) and New Frontier Energy, Inc. (farmor), dated Aug. 10, 2009, sec. 8.1, Ex. 10.1 to New Frontier Energy Form 8-K filed Aug. 21, 2009. https://www.sec.gov/Archives/edgar/data/1140586/000107997309000810/nef_8k-ex10x1.htm
  19. Northern Oil and Gas, Inc., Form 10-K for FY2025, filed Feb. 26, 2026, accession 0001104485-26-000008. https://www.sec.gov/Archives/edgar/data/1104485/000110448526000008/nog-20251231.htm
  20. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  21. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  22. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  23. IRS Publication 5652, Oil and Gas Audit Technique Guide, Glossary. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  24. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  25. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  26. Synthesis of Art. VI.B.2(b)(i) figures in the same six filed JOAs listed in note 25, low end Rhino Resource Partners/Gulfport JOA (2012 10-Q Ex. 10.2), high end Mewbourne Energy Partners 09-A JOA (2010). https://www.sec.gov/Archives/edgar/data/1490630/000110465912076553/a12-20059_1ex10d2.htm
  27. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. VI.B.2(b)(i), as filed as Exhibit 10.46 to Beta Oil & Gas, Inc.’s Form 10-Q. https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  28. COPAS 2022 Accounting Procedure (MF-8), sec. I.5.B–C (audit provisions), p. 5. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  29. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  30. COPAS 2022 Accounting Procedure (MF-8), sec. I.2 “Statements and Billings,” p. 3. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  31. COPAS 2022 Accounting Procedure (MF-8), sec. I.3.A “Advances and Payments,” p. 3. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  32. Royale Energy, Inc., Form 10-K FY2020, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/1694617/000118518521000424/ex_237057.htm
  33. RRC Drilling Permits (W-1) Online Filing User Guide, § 2.3.1.1. https://www.rrc.texas.gov/media/qqmhxxex/dpmanual.pdf
  34. RRC news release, “RRC Staff Processing Standard Drilling Permits in Two Days.” https://www.rrc.texas.gov/news/rrc-staff-processing-standard-drilling-permits-in-two-days
  35. Patterson-UTI Energy, Inc., Form 8-K Exhibit 99.1, Q1 2025 earnings release (filed April 24, 2025), “Additional Financial and Operating Data” table. https://www.sec.gov/Archives/edgar/data/889900/000162828025019463/a2025q1earningsreleaseex991.htm
  36. Tex. Tax Code § 191.081. https://tcss.legis.texas.gov/resources/TX/pdf/TX.191.pdf
  37. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  38. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  39. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Item 1. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  40. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  41. EIA, “U.S. Crude Oil, Natural Gas, and Dry Exploratory and Developmental Wells Drilled” and “U.S. Dry Exploratory and Developmental Wells Drilled” (Petroleum & Natural Gas Data Navigator). https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=e_ertw0_xwc0_nus_c&f=a
  42. Summary of Drilling Permits, Completions and Plugging Reports Processed – December 2025. https://rrc.state.tx.us/media/c02mui0q/december-2025.pdf
  43. Diamondback Energy Form 10-K for fiscal year 2025. https://www.sec.gov/Archives/edgar/data/1539838/000153983826000010/fang-20251231.htm
  44. Coterra Energy Form 10-K FY2025; Expand Energy Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/858470/000085847026000073/cog-20251231.htm
  45. Devon Energy Form 10-K FY2025 (“Drilling Statistics”); ConocoPhillips Form 10-K FY2025 (“Development and Exploration Activities”). https://www.sec.gov/Archives/edgar/data/1090012/000119312526056485/dvn-20251231.htm
  46. Monthly Energy Review, September 2026, Table 5.2 Crude Oil and Natural Gas Wells and Footage Drilled (CSV T05.02). https://www.eia.gov/totalenergy/data/browser/csv.php?tbl=T05.02
  47. Tex. Tax Code § 201.001(3), (5). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.201.htm#201.001
  48. Tex. Tax Code § 202.001(1)–(2), (4). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.001
  49. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  50. Tex. Nat. Res. Code § 91.401(1). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  51. Tex. Nat. Res. Code § 91.401(3)–(4). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  52. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  53. Tex. Nat. Res. Code § 91.402(a)(1)–(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  54. Tex. Nat. Res. Code § 91.403(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.403
  55. 52 O.S. § 570.10(B)(1). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552383
  56. Tex. Tax Code § 201.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.201.htm#201.052
  57. Tex. Tax Code § 202.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.052
  58. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  59. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  60. 17 C.F.R. § 210.4-10(a)(22). https://www.law.cornell.edu/cfr/text/17/210.4-10
  61. 17 C.F.R. § 210.4-10(a)(6). https://www.law.cornell.edu/cfr/text/17/210.4-10
  62. FDIC, “FDIC History: 1980–1989” (online timeline). https://www.fdic.gov/history/1980-1989
  63. FDIC, History of the Eighties: Lessons for the Future, Vol. 1, Ch. 9 “Banking Problems in the Southwest.” https://www.fdic.gov/resources/publications/history-eighties/volume-1/history-80s-volume-1-part2-09.pdf
  64. FDIC, History of the Eighties: Lessons for the Future, Vol. 1, Ch. 7 “Continental Illinois and Too Big to Fail.” https://www.fdic.gov/bank/historical/history/235_258.pdf
  65. Susan Nelson & Tom Petska, “Partnerships, Passive Losses, and Tax Reform,” IRS Statistics of Income Bulletin. https://www.eitc.irs.gov/pub/irs-soi/81-87papltxrf.pdf
  66. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469

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Chapter 2 Who’s who

65 notes

  1. Federal Reserve Bank of Dallas, Southwest Economy, First Quarter 2015, “Texas Facing Economic Headwinds in 2015.” https://www.dallasfed.org/~/media/documents/research/swe/2015/swe1501.pdf
  2. Altman v. Blake, 712 S.W.2d 117, 118 (Tex. 1986). https://law.justia.com/cases/texas/supreme-court/1986/c-5143-0.html
  3. Treas. Reg. § 1.612-3(c)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  4. Treas. Reg. § 1.469-1(e)(4)(iv). https://www.ecfr.gov/current/title-26/section-1.469-1
  5. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  6. Tex. Tax Code § 191.081. https://tcss.legis.texas.gov/resources/TX/pdf/TX.191.pdf
  7. Tex. Tax Code § 201.001(3), (5). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.201.htm#201.001
  8. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  9. Anderson v. Helvering, 310 U.S. 404, 409 (1940), as summarized in IRS Pub. 5652, Oil and Gas Industry Audit Technique Guide. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  10. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  11. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996). https://www.courtlistener.com/opinion/2448635/heritage-resources-inc-v-nationsbank/
  12. Author’s illustration of working-interest and net-revenue-interest math.
  13. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  14. RRC Oil & Gas Fees and Surcharges schedule. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/oil-gas-fees-surcharges/
  15. RRC Drilling Permits (W-1) Online Filing User Guide, § 2.3.1.1. https://www.rrc.texas.gov/media/qqmhxxex/dpmanual.pdf
  16. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  17. Tex. Nat. Res. Code § 91.104(a). https://texas.public.law/statutes/tex._nat._resources_code_section_91.104
  18. 16 Tex. Admin. Code § 3.78(g)(1)(B). https://law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-78
  19. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  20. COPAS, Overhead Adjustment Factors / Economic Factors page. https://copas.org/resources/economic-factors/
  21. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  22. Royale Energy, Inc., Form 10-K FY2020, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/1694617/000118518521000424/ex_237057.htm
  23. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  24. Northern Oil and Gas, Inc., Form 10-K for FY2025, filed Feb. 26, 2026, accession 0001104485-26-000008. https://www.sec.gov/Archives/edgar/data/1104485/000110448526000008/nog-20251231.htm
  25. COPAS 2022 Accounting Procedure (MF-8), sec. I.5.B–C (audit provisions), p. 5. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  26. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  27. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  28. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii), Exhibit 4.3, South Dakota Public Utilities Commission Docket EL15-036; see the range in note 29. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  29. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  30. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  31. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  32. IRS Pub. 925 (2025), “Activities That Aren’t Passive Activities” item 2. https://www.irs.gov/pub/irs-pdf/p925.pdf
  33. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.6. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  34. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 1 (Business) and Note 1 to Financial Statements. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  35. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 7 (cost-sharing table). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  36. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 7. https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  37. NASAA (published via Arizona Corporation Commission), Investor Alert: Oil and Gas Investment Fraud. https://azcc.gov/docs/default-source/az-investor-files/investment-scams/oil-and-gas-investor-alert-nasaa.pdf
  38. Securities Exchange Act of 1934 § 3(a)(4)(A), 15 U.S.C. § 78c(a)(4)(A). https://www.law.cornell.edu/uscode/text/15/78c
  39. Securities Exchange Act of 1934 § 15(a)(1), 15 U.S.C. § 78o(a)(1). https://www.law.cornell.edu/uscode/text/15/78o
  40. 15 U.S.C. § 78c(a)(4)(A) (definition); 15 U.S.C. § 78o(a)(1) (registration requirement). https://www.law.cornell.edu/uscode/text/15/78c
  41. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  42. Vanna Production III, LP, Form D, Items 6 and 13 (offering and sales amounts). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  43. Vanna Production III, LP, Form D, Item 8 (sales commissions and finders’ fees, marked as estimates) and Item 12 (recipients of sales compensation). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  44. Patterson-UTI Energy, Inc., Form 8-K Exhibit 99.1, Q1 2025 earnings release (filed April 24, 2025), “Additional Financial and Operating Data” table. https://www.sec.gov/Archives/edgar/data/889900/000162828025019463/a2025q1earningsreleaseex991.htm
  45. PDC 2004–2006 Drilling Program, Form 424B3. https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  46. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.7. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  47. Bernuth v. Commissioner, 57 T.C. 225 (1971), aff’d, 470 F.2d 710 (2d Cir. 1972). https://static.case.law/tc/57/html/0225-01.html
  48. OSH Act 5(a)(1), 29 U.S.C. § 654(a)(1). https://www.osha.gov/laws-regs/oshact/section5-duties
  49. Tex. Prop. Code §§ 56.002–56.003. https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  50. Okla. Stat. tit. 42, 144. https://oksenate.gov/sites/default/files/2022-05/os42.pdf
  51. Tex. Tax Code § 202.001(1)–(2), (4). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.001
  52. 52 O.S. § 570.10(C)(1)–(3) (Oklahoma, not Texas). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552383
  53. Oklahoma Corporation Commission, OCC Well Data Finder User Guide (linked from the OCC Well Data Finder page, last modified Aug. 19, 2026). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/ogcd_automated/esri-occ-well-data-finder-manual.pdf
  54. OAC 165:10-3-1(a)(1), (a)(3), Oklahoma Corporation Commission, Title 165 Chapter 10 (eff. Feb. 18, 2026). https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/jls-courts/rules/2026/chapter-10-oil-and-gas-conservation-effective-02-18-2026.pdf
  55. FINRA Qualification Exams, Series 22. https://www.finra.org/registration-exams-ce/qualification-exams/series22
  56. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  57. EQT Corp. Form 10-K for FY2014, Item 7 (MD&A), Operational Data table. https://www.sec.gov/Archives/edgar/data/33213/000003321315000004/eqt-12312014x10k.htm
  58. Plains All American Pipeline, L.P., Form 10-K for fiscal year ended Dec. 31, 2025 (filed Feb. 27, 2026), Item 7, Liquidity and Capital Resources, “Purchase Obligations.” https://www.sec.gov/Archives/edgar/data/1070423/000107042326000014/paa-20251231.htm
  59. Unit 2010 Employee Oil and Gas Limited Partnership Agreement, filed as Exhibit 10.2.32 to Unit Corporation Form 10-K for FY2009 (filed Feb. 23, 2010). https://www.sec.gov/Archives/edgar/data/798949/000119312510037350/dex10232.htm
  60. U.S. Energy Information Administration, Texas Field Production of Crude Oil (Thousand Barrels per Day), monthly series MCRFPTX2, release date Sept. 30, 2026. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPTX2&f=M
  61. Haynes and Boone, LLP, Oil Patch Bankruptcy Monitor (December 14, 2016). https://www.haynesboone.com/getcontentasset/588047ed-0b66-4c80-85ab-555932d9270c/141d77fc-2e06-49eb-b14c-2ff58f5ce730/oil_patch_bankruptcy_20160106.pdf?language=en-US
  62. Patterson-UTI Energy, Inc., Form 10-K for FY2016, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  63. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do
  64. FINRA, “About BrokerCheck.” https://www.finra.org/investors/investing/working-with-investment-professional/about-brokercheck
  65. SEC EDGAR Full Text Search FAQ. https://www.sec.gov/edgar/search/efts-faq.html

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Chapter 3 The money map

53 notes

  1. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  2. Tex. Nat. Res. Code § 91.502(6). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  3. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  4. Author’s illustration of working-interest and net-revenue-interest math.
  5. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  6. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996). https://www.courtlistener.com/opinion/2448635/heritage-resources-inc-v-nationsbank/
  7. Tex. Tax Code § 202.001(1)–(2), (4). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.001
  8. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  9. Tex. Nat. Res. Code § 91.401(1). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  10. Tex. Nat. Res. Code § 91.401(3)–(4). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  11. Tex. Tax Code § 202.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.052
  12. Tex. Tax Code § 201.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.201.htm#201.052
  13. 68 O.S. § 1001(B)(1)–(2). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552911
  14. 68 O.S. § 1001(B)(3). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552911
  15. Royale Energy, Inc., Form 10-K FY2020, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/1694617/000118518521000424/ex_237057.htm
  16. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  17. EIA, Today in Energy: “High Permian well productivity, crude oil prices drive U.S. natural gas production growth.” https://www.eia.gov/todayinenergy/detail.php?id=60702
  18. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  19. Energytec, Inc., Form 10-K for the fiscal year ended Dec. 31, 2006 (filed Apr. 17, 2007), glossary. https://www.sec.gov/Archives/edgar/data/1202963/000119312507082987/d10k.htm
  20. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  21. Tex. Nat. Res. Code § 91.402(a)(1)–(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  22. Devon Energy Corp., Form 8-K (Exhibit 99.2, investor presentation). https://www.sec.gov/Archives/edgar/data/1090012/000119312518146564/d580771dex992.htm
  23. Author’s calculation from notes 20, 22.
  24. Tex. Nat. Res. Code § 91.402(b). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  25. Tex. Nat. Res. Code § 91.403(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.403
  26. Tex. Prop. Code § 72.101(a). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.72.htm#72.101
  27. Tex. Prop. Code § 72.101(b)(1). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.72.htm#72.101
  28. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  29. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  30. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  31. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  32. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  33. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  34. Dallas Fed Energy Survey, Q1 2026 (2601). https://www.dallasfed.org/research/surveys/des/2026/2601
  35. CFTC, Interim Staff Report on Trading in NYMEX WTI Crude Oil Futures Contracts Leading Up to, on, and Around April 20, 2020. https://www.cftc.gov/media/5296/InterimStaffReportNYMEX_WTICrudeOil/download
  36. CFTC Staff, Interim Staff Report: Trading in NYMEX WTI Crude Oil Futures Contract Leading up to, on, and around April 20, 2020 (Nov. 23, 2020), section “B. NYMEX WTI Crude Oil Futures,” printed p. 6. https://www.cftc.gov/media/5296/InterimStaffReportNYMEX_WTICrudeOil/download
  37. CFTC Staff, Interim Staff Report on WTI trading around April 20, 2020 (Nov. 23, 2020), Executive Summary, printed p. 2. https://www.cftc.gov/media/5296/InterimStaffReportNYMEX_WTICrudeOil/download
  38. CFTC Staff, Interim Staff Report on WTI trading around April 20, 2020 (Nov. 23, 2020), Part B “Starting Open Interest on April 20,” printed pp. 20–21 and n. 63. https://www.cftc.gov/media/5296/InterimStaffReportNYMEX_WTICrudeOil/download
  39. CFTC Staff, Interim Staff Report on WTI trading around April 20, 2020 (Nov. 23, 2020), Part B “Starting Open Interest on April 20,” Figure 11, printed p. 20. https://www.cftc.gov/media/5296/InterimStaffReportNYMEX_WTICrudeOil/download
  40. CFTC, Press Release 8315-20, “CFTC Staff Publishes Interim Report on NYMEX WTI Crude Contract Trading on and around April 20, 2020.” https://www.cftc.gov/PressRoom/PressReleases/8315-20
  41. Railroad Commission of Texas, “Texas Drilling Permits and Completions Statistics for August 2020.” https://www.rrc.texas.gov/news/090920-drilling-permits
  42. Private Equity Stakeholder Project, “Private Equity-Backed Companies Dominate 2020 Oil and Gas Bankruptcies,” citing Haynes and Boone’s Oil Patch Bankruptcy Monitor. https://pestakeholder.org/news/private-equity-backed-companies-dominate-2020-oil-and-gas-bankruptcies-2/
  43. Railroad Commission of Texas, “Summary of Drilling Permits, Completions and Plugging Reports Processed, December 2020” (Annual 2020), Total Original Drilling Permits, Current Year Group Jan. 1–Dec. 31, 2020. https://www.rrc.texas.gov/media/xm4ixbs1/annual-2020.pdf
  44. Texas Almanac, “Rig Counts and Wells Drilled by Year,” compiling Railroad Commission of Texas and Baker Hughes Inc. data. https://www.texasalmanac.com/articles/rig-counts-and-wells-drilled-by-year
  45. Haynes and Boone, LLP, Oil Patch Bankruptcy Monitor (December 14, 2016). https://www.haynesboone.com/getcontentasset/588047ed-0b66-4c80-85ab-555932d9270c/141d77fc-2e06-49eb-b14c-2ff58f5ce730/oil_patch_bankruptcy_20160106.pdf?language=en-US
  46. Federal Reserve Bank of Dallas, Dallas Fed Energy Survey, First Quarter 2022. https://www.dallasfed.org/research/surveys/des/2022/2201
  47. EIA, Today in Energy: “Tight oil production in Permian drives growth in onshore U.S. Lower 48 states production.” https://www.eia.gov/todayinenergy/detail.php?id=65404
  48. EIA Today in Energy, “Trends in U.S. Oil and Natural Gas Upstream Costs.” https://www.eia.gov/todayinenergy/detail.php?id=25592
  49. 52 Okla. Stat. 570.10(D)(1), as amended by Laws 2026, HB 1371, c. 175, § 1 (eff. Nov. 1, 2026). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=80938
  50. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” Table 1 & accompanying text, p. 24. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  51. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” p. 25. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  52. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2016, Item 5 (Market for Registrant’s Units). https://www.sec.gov/Archives/edgar/data/1487561/000156459017006645/ser28-10k_20161231.htm
  53. SEC Office of Investor Education and Advocacy, Investor Bulletin: Interest Rate Risk – When Interest Rates Go Up, Prices of Fixed-Rate Bonds Fall, pp. 1–2. https://www.sec.gov/files/ib_interestraterisk.pdf

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Chapter 4 The core tax breaks

90 notes, 83 numbered in the book

  1. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  2. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  3. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1 (Feb. 24, 2010), Table 4 “Summary of Investor Tax Benefits and Cash Distribution Returns as of September 30, 2009” and footnotes 1, 2 and 8. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  4. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  5. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  6. Treas. Reg. § 1.612-4(d). https://www.law.cornell.edu/cfr/text/26/1.612-4
  7. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  8. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  9. IRC § 1245(a)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  10. IRC § 613A(c)(1). https://www.law.cornell.edu/uscode/text/26/613A
  11. IRC § 613A(d)(1). https://www.law.cornell.edu/uscode/text/26/613A
  12. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  13. Mewbourne Energy Partners 06-07 Drilling Programs, Prospectus (Form 424B3), Reg. No. 333-131978, filed July 11, 2006, SEC accession 0000950134-06-013015, prospectus summary. https://www.sec.gov/Archives/edgar/data/1353722/000095013406013015/d33105b3e424b3.htm
  14. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Item 8, Notes to Financial Statements, Note 3 – Participation in Revenues and Costs. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  15. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  16. SEC EDGAR: ICON Oil & Gas Fund-A L.P., Form 10-K (FY2012). https://www.sec.gov/Archives/edgar/data/1529692/000094798613000086/body.htm
  17. Treas. Reg. § 1.612-4(e). https://www.law.cornell.edu/cfr/text/26/1.612-4
  18. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  19. Author’s calculation from notes 1, 5, 23, 82, 83, 84, 85. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  20. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  21. Treas. Reg. § 1.469-1(e)(4)(iv). https://www.ecfr.gov/current/title-26/section-1.469-1
  22. Author’s illustration of working-interest and net-revenue-interest math.
  23. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  24. IRC § 465(c)(1)(D). https://www.law.cornell.edu/uscode/text/26/465
  25. IRC § 167(h)(1)–(2). https://www.law.cornell.edu/uscode/text/26/167
  26. IRS Chief Counsel Advice 201835004 (May 10, 2018; released Aug. 31, 2018). https://www.irs.gov/pub/irs-wd/201835004.pdf
  27. IRC § 57(a)(2)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  28. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  29. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  30. IRC § 59(e)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.59-1
  31. Author’s calculation from IRC § 263(c) and IRC § 57(a)(2)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  32. Keller v. Commissioner, 725 F.2d 1173, 1174 (8th Cir. 1984). https://openjurist.org/725/f2d/1173/keller-v-commissioner-of-internal-revenue
  33. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.7. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  34. IRC § 461(i)(2)(A). https://www.law.cornell.edu/uscode/text/26/461
  35. IRC § 461(i)(3)(A). https://www.law.cornell.edu/uscode/text/26/461
  36. IRC § 461(h)(1), (h)(2)(A)(i). https://www.law.cornell.edu/uscode/text/26/461
  37. Caltex Oil Venture v. Commissioner, 138 T.C. 18 (2012) (Background; Conclusion). https://static.case.law/tc/138/html/0018-01.html
  38. Pub. L. 119-21, 139 Stat. 72 (enacted July 4, 2025); bonus depreciation at § 70301, 139 Stat. 189. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  39. Comparison of Pub. L. 119-21 full text against current IRC §§ 611–613A and 263(c). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  40. Pub. L. 119-21, § 70301; IRS Notice 2026-11 sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  41. Pub. L. 119-21, § 70301(a)(1), amending IRC § 168(k)(2)(A). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  42. IRS Notice 2026-11, sec. .01 (describing prior TCJA sec. 168(k)(6)). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  43. IRS Notice 2026-11, applying Treas. Reg. § 1.168(k)-2(b)(5). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  44. FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  45. NY DTF Form IT-225-I (2025) instructions. https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf
  46. Cal. Rev. & Tax Code § 17260; FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  47. IRC § 1245(a)(3). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  48. IRC § 453(i)(1). https://www.law.cornell.edu/uscode/text/26/453
  49. Permian Basin Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/319654/000119312526128561/pbt_10-k_2025-12-31.htm
  50. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  51. Palmer v. Bender, 287 U.S. 551, 557 (1933). https://www.law.cornell.edu/supremecourt/text/287/551
  52. IRC § 613A(c)(3)(B); Treas. Reg. § 1.613A-3. https://www.law.cornell.edu/uscode/text/26/613A
  53. IRC § 613A(c)(3). https://www.law.cornell.edu/uscode/text/26/613A
  54. IRC § 613(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A613+edition%3Aprelim%29
  55. IRC § 613A(c)(7)(D). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  56. IRC § 613A(c)(6)(E). https://www.law.cornell.edu/uscode/text/26/613A
  57. IRC § 613A(c)(6)(C). https://www.law.cornell.edu/uscode/text/26/613A
  58. IRS Notice 2026-35, 2026-25 I.R.B. 1580 (2026 marginal-production percentage; 2025 reference price). https://www.irs.gov/irb/2026-25_irb
  59. Anderson v. Helvering, 310 U.S. 404, 409 (1940), as summarized in IRS Pub. 5652, Oil and Gas Industry Audit Technique Guide. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  60. IRC § 613A(d)(5); IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  61. Treas. Reg. § 1.612-3(c)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  62. Cal. Rev. & Tax Code § 17681; FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  63. Pub. L. 119-21, 139 Stat. 72 (2025): no provision amends IRC § 1254; the Act’s only references to 1254 are to 8 U.S.C. § 1254a. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  64. Herring v. Commissioner, 293 U.S. 322, 324 (1934). https://www.govinfo.gov/content/pkg/USREPORTS-293/pdf/USREPORTS-293-322.pdf
  65. IRC § 613A(d)(5). https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section613A&num=0&edition=prelim
  66. Kirby Petroleum Co. v. Commissioner, 326 U.S. 599 (1946). https://caselaw.findlaw.com/us-supreme-court/326/599.html
  67. Treas. Reg. § 1.611-1(b). https://www.law.cornell.edu/cfr/text/26/1.611-1
  68. IRC § 461(l)(1)(B); Pub. L. 119-21, § 70601(a), (c)(1) (2025 amendment notes). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  69. Rev. Proc. 2025-32 sec. 3.31. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  70. Author’s calculation from notes 69, 86. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  71. Author’s calculation from notes 20, 28, 29, 87, 88. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  72. Author’s calculation from notes 20, 71. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  73. Author’s calculation from notes 1, 23, 82, 83, 84. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  74. Author’s calculation from note 86. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  75. Author’s calculation from notes 20, 29, 87, 88. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  76. IRC § 1402(a)(12) (92.35% net-earnings adjustment); IRC § 1401(b)(1)–(2); IRC § 1402(a)(13); IRC § 164(f). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  77. Author’s calculation from notes 23, 79, 89, 90. https://www.ecfr.gov/current/title-26/section-1.469-2T
  78. Author’s calculation from note 77. https://www.ecfr.gov/current/title-26/section-1.469-2T
  79. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T
  80. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.A. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  81. Bernuth v. Commissioner, 57 T.C. 225 (1971), aff’d, 470 F.2d 710 (2d Cir. 1972). https://static.case.law/tc/57/html/0225-01.html
  82. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  83. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  84. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  85. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  86. IRC § 461(l)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  87. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  88. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  89. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  90. IRS Pub. 925 (2025), “Dispositions.” https://www.irs.gov/pub/irs-pdf/p925.pdf

Notes 84 to 90 have no number in the book; other notes in this list cite them.

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Chapter 5 Which reader are you?

101 notes, 95 numbered in the book

  1. Author’s calculation from notes 57, 62. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  2. Author’s calculation from notes 57, 96, 97, 98. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  3. Treas. Reg. § 1.469-1T(e)(4)(ii). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  4. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  5. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  6. IRC § 465(a)(2). https://www.law.cornell.edu/uscode/text/26/465
  7. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  8. IRC § 461(l)(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  9. Author’s calculation from notes 5, 15, 16, 29, 58, 61, 99. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  10. Author’s calculation from notes 5, 15, 16, 29, 58. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  11. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  12. Rev. Proc. 2025-32 sec. 3.31. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  13. IRC § 1366(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1366&num=0&edition=prelim
  14. IRC § 465(c)(1)(D). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  15. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  16. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  17. IRC § 465(c)(2)(A)(iv). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  18. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.A. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  19. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.C. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  20. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section J (Penalty Considerations). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  21. Complaint for Permanent Injunction and Other Relief ¶¶1-3, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  22. Complaint for Permanent Injunction ¶5, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  23. Complaint for Permanent Injunction ¶6, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  24. Complaint for Permanent Injunction ¶16, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  25. Complaint for Permanent Injunction ¶12, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  26. Stipulated Permanent Injunction as to Jeffrey L. Gaumer, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio Nov. 7, 2008). https://www.justice.gov/sites/default/files/tax/legacy/2008/11/18/Gaumer_PermInj.pdf
  27. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  28. Treas. Reg. § 1.469-5T(a)(1)–(7). https://www.ecfr.gov/current/title-26/section-1.469-5T
  29. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  30. IRS Pub. 925 (2025), “Activities That Aren’t Passive Activities” item 2. https://www.irs.gov/pub/irs-pdf/p925.pdf
  31. Pub. L. 119-21, 139 Stat. 72 (2025): no provision amends IRC § 469; the Act’s only mention of section 469 is a cross-reference in new § 199A(i)(2)(B). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  32. Treas. Reg. § 1.469-1(e)(4)(iv). https://www.ecfr.gov/current/title-26/section-1.469-1
  33. Treas. Reg. § 1.469-1T(e)(4)(iv). https://www.ecfr.gov/current/title-26/section-1.469-1T
  34. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  35. Treas. Reg. § 1.469-1T(e)(4)(v)(B). https://www.ecfr.gov/current/title-26/section-1.469-1T
  36. Treas. Reg. § 1.469-1T(e)(4)(ii)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  37. IRC § 469(c)(3)(B). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  38. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T
  39. IRC § 469(e)(1); Treas. Reg. § 1.469-2T(c)(3)(i). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  40. IRC § 469(k)(2) (definition of a publicly traded partnership). https://www.law.cornell.edu/uscode/text/26/469
  41. IRC § 469(k); author’s calculation from notes 40, 100. https://www.law.cornell.edu/uscode/text/26/469
  42. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  43. Author’s calculation from notes 4, 7, 29, 38. https://www.ecfr.gov/current/title-26/section-1.469-2T
  44. IRC § 1402(a)(13). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  45. Rev. Rul. 58-166, 1958-1 C.B. 324. https://www.govinfo.gov/content/pkg/GOVPUB-T22-67529d3c800f0111169e2b4d5c20fead/pdf/GOVPUB-T22-67529d3c800f0111169e2b4d5c20fead-1.pdf
  46. IRC § 469(c)(3)(A); Treas. Reg. § 1.1411-5(b)(1)(ii). https://www.ecfr.gov/current/title-26/section-1.1411-5
  47. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  48. IRC § 461(l)(1)(B); Pub. L. 119-21, § 70601(a), (c)(1) (2025 amendment notes). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  49. IRC § 461(l)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  50. Pub. L. 119-21, § 70601(a), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  51. Pub. L. 119-21, § 70601(b). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  52. Rev. Proc. 2024-40 sec. 3.32 (2025: $313,000, $626,000 joint); Rev. Proc. 2025-32 sec. 3.31 (2026); Pub. L. 119-21, § 70601(b) (new base year). https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
  53. IRC § 172(b)(1)(A)(ii)(II). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section172&num=0&edition=prelim
  54. IRC § 172(b)(1)(A)(i), (B)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section172&num=0&edition=prelim
  55. IRC § 172(a)(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section172&num=0&edition=prelim
  56. Author’s calculation from note 49. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  57. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  58. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  59. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  60. Author’s calculation from notes 12, 49. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  61. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  62. Author’s calculation from notes 57, 96, 97, 98, 101. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  63. IRC § 1402(a)(12) (92.35% net-earnings adjustment); IRC § 1401(b)(1)–(2); IRC § 1402(a)(13); IRC § 164(f). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  64. Author’s calculation from note 43. https://www.ecfr.gov/current/title-26/section-1.469-2T
  65. IRS, 2025 Instructions for Form 1040, Line Instructions, “Line 1a Total Amount From Form(s) W-2, Box 1.” https://www.irs.gov/instructions/i1040gi
  66. IRS, Instructions for Forms 1099-MISC and 1099-NEC (12/2026), Specific Instructions for Form 1099-MISC, “Box 2. Royalties.” https://www.irs.gov/instructions/i1099mec
  67. United States Oil Fund, LP Form 10-K FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  68. IRS, Partner’s Instructions for Schedule K-1 (Form 1065) (2025), Part III: Box 1; Box 7; Box 13 codes I and AD; Box 14 code A; Box 20 codes T and Z. https://www.irs.gov/instructions/i1065sk1
  69. IRS, 2025 Instructions for Schedule E, Part I, “Line 4” and “Line 18”; 2025 Schedule E line 18 caption; Schedule 1 (Form 1040) 2025 line 5. https://www.irs.gov/instructions/i1040se
  70. IRC § 62(a)(4). https://www.law.cornell.edu/uscode/text/26/62
  71. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  72. IRS, 2025 Instructions for Schedule C, Line G, “Exception for oil and gas”; Schedule 1 (Form 1040) 2025 line 3. https://www.irs.gov/instructions/i1040sc
  73. IRC § 162(a) first sentence; IRC § 212(1)–(3) (law.cornell.edu/uscode/text/26/212); FS-2013-6, “Additional Expenses,” second paragraph (irs.gov/newsroom/tips-on-reporting-natural-resource-income). https://www.law.cornell.edu/uscode/text/26/162
  74. IRC § 613A(c)(1). https://www.law.cornell.edu/uscode/text/26/613A
  75. IRC § 199A(d)(1)(B); Instructions for Form 8995 (2025), “Services performed as an employee excluded from qualified trades or businesses” (irs.gov/instructions/i8995). https://www.law.cornell.edu/uscode/text/26/199A
  76. Reg. 1.199A-3(b)(1)(vi); IRC § 199A(d)(1)–(2) (law.cornell.edu/uscode/text/26/199A). https://www.ecfr.gov/current/title-26/section-1.199A-3
  77. IRC § 199A(i), as amended by Pub. L. 119-21. https://www.law.cornell.edu/uscode/text/26/199A
  78. IRC § 62(a)(1); 62(a)(2)(A)–(B). https://www.law.cornell.edu/uscode/text/26/62
  79. Sec. 70110(a), (b)(1)–(2), (c), 139 Stat. 164; current IRC § 67(h) (law.cornell.edu/uscode/text/26/67). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  80. IRC § 611(a) first sentence; 2025 Instructions for Schedule E, Part I, “Line 18,” last paragraph (irs.gov/instructions/i1040se). https://www.law.cornell.edu/uscode/text/26/611
  81. IRC § 613(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A613+edition%3Aprelim%29
  82. IRC § 613(a), second and last sentences. https://www.law.cornell.edu/uscode/text/26/613
  83. Rev. Proc. 2025-32, sec. 4.26 (table); IRC § 199A(b)(2)(B), (b)(3)(B) (law.cornell.edu/uscode/text/26/199A). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  84. Reg. 1.199A-1(b)(14); Reg. 1.199A-3(b)(2)(ii)(A)–(J) (ecfr.gov/current/title-26/section-1.199A-3). https://www.ecfr.gov/current/title-26/section-1.199A-1
  85. IRC § 613A(c)(7)(D). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  86. IRC § 469(e)(1)(A)(i)(I)–(III); K-1 instructions, “Portfolio Income” (irs.gov/instructions/i1065sk1); 2025 Instructions for Schedule E, Passive Activity Loss Rules, “Other activities” (irs.gov/instructions/i1040se). https://www.law.cornell.edu/uscode/text/26/469
  87. SSA, 2026 COLA Fact Sheet / wage base announcement (Oct. 24, 2025). https://www.ssa.gov/oact/cola/cbb.html
  88. IRS, Schedule SE (Form 1040) 2025, Part I, lines 7, 8a-8d, 9, 10, 11, 12, 13. https://www.irs.gov/pub/irs-pdf/f1040sse.pdf
  89. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  90. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  91. Caltex Oil Venture v. Commissioner, 138 T.C. 18 (2012), as summarized by the Center for Agricultural Law and Taxation, Iowa State University. https://www.calt.iastate.edu/annotation/caltex-oil-venture-et-al-v-comr-138-tc-18-2012
  92. Caltex Oil Venture v. Commissioner, 138 T.C. 18 (2012). https://static.case.law/tc/138/html/0018-01.html
  93. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.A(4). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  94. Keller v. Commissioner, 725 F.2d 1173, 1176 (8th Cir. 1984). https://openjurist.org/725/f2d/1173/keller-v-commissioner-of-internal-revenue
  95. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  96. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  97. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  98. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  99. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  100. IRC § 469(k)(1). https://www.law.cornell.edu/uscode/text/26/469
  101. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim

Notes 96 to 101 have no number in the book; other notes in this list cite them.

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Chapter 6 AMT, NIIT, self-employment tax and state taxes

106 notes, 99 numbered in the book

  1. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  2. Rev. Proc. 2025-32 (absence of any § 1411 adjustment, contrasted with IRC § 1411(b) fixed dollar figures). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  3. IRC § 1401(b)(2)(A). https://www.law.cornell.edu/uscode/text/26/1401
  4. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  5. Pub. L. 119-21, § 70107(c)–(d). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  6. Treas. Reg. § 1.1411-5(a)(1), (b)(1)(ii). https://www.ecfr.gov/current/title-26/section-1.1411-5
  7. IRC § 469(c)(3)(A); Treas. Reg. § 1.1411-5(b)(1)(ii). https://www.ecfr.gov/current/title-26/section-1.1411-5
  8. IRC § 1402(a)(13). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  9. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  10. Tex. Const. art. VIII, sec. 24-a. https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24-a.htm
  11. Cal. Rev. & Tax Code § 17260; FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  12. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  13. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  14. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  15. IRC § 1402(a) (flush language). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  16. SSA, 2026 COLA Fact Sheet / wage base announcement (Oct. 24, 2025). https://www.ssa.gov/oact/cola/cbb.html
  17. IRC § 1402(a)(12) (92.35% net-earnings adjustment); IRC § 1401(b)(1)–(2); IRC § 1402(a)(13); IRC § 164(f). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  18. Tex. Tax Code § 202.052(a). https://texas.public.law/statutes/tex._tax_code_section_202.052
  19. 68 O.S. § 1001(B)(1)–(2). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  20. Tex. Tax Code § 23.175(a)–(b) (appraisal of oil or gas interest); Tex. Tax Code § 202.052(a) (severance tax). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm#23.175
  21. United States Oil Fund, LP Form 10-K FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  22. IRC § 57(a)(2)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  23. Author’s calculation from notes 4, 12, 27, 31, 100. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  24. IRC § 1411(b). https://www.law.cornell.edu/uscode/text/26/1411
  25. Pub. L. No. 119-21, sec. 70107(b) (2025), amending IRC § 55(d)(4); Rev. Proc. 2025-32, sec. 2.07. https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  26. IRC § 57(a)(2)(B). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  27. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  28. IRC § 291(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section291&num=0&edition=prelim
  29. IRC § 613A(d)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A&num=0&edition=prelim
  30. IRC § 613A(d)(2). https://www.law.cornell.edu/uscode/text/26/613A
  31. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  32. Author’s calculation from notes 4, 12, 31, 100. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  33. IRS Pub. 925 (2025), “Excess business loss limitation” reminder. https://www.irs.gov/pub/irs-pdf/p925.pdf
  34. Author’s calculation from IRC § 263(c) and IRC § 57(a)(2)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  35. IRC § 1411(a)(1). https://www.law.cornell.edu/uscode/text/26/1411
  36. Treas. Reg. § 1.1411-4(a)(1)(i). https://www.ecfr.gov/current/title-26/section-1.1411-4
  37. Author’s illustration of working-interest and net-revenue-interest math.
  38. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  39. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  40. Treas. Reg. § 1.469-5T(a)(1)–(7). https://www.ecfr.gov/current/title-26/section-1.469-5T
  41. Author’s calculation from notes 23, 100. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  42. Rev. Rul. 58-166, 1958-1 C.B. 324. https://www.govinfo.gov/content/pkg/GOVPUB-T22-67529d3c800f0111169e2b4d5c20fead/pdf/GOVPUB-T22-67529d3c800f0111169e2b4d5c20fead-1.pdf
  43. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4(3), citing Methvin v. Comm’r, T.C. Memo 2015-81, aff’d 653 Fed. Appx. 616 (10th Cir. 2016). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  44. IRC § 1401(a). https://www.law.cornell.edu/uscode/text/26/1401
  45. Soroban Capital Partners LP v. Commissioner, 161 T.C. 310 (2023) (161 T.C. No. 12), Background. https://bradfordtaxinstitute.com/Endnotes/161_TC_No_12.pdf
  46. Treasury Department and IRS, 2026–2027 Priority Guidance Plan (Sept. 29, 2026); IRC § 1402(a)(13). https://www.irs.gov/pub/irs-counsel/2026-2027-initial-pgp.pdf
  47. K Alain, L.L.L.P. v. Commissioner, No. 24-60240 (5th Cir. Aug. 12, 2026). https://www.ca5.uscourts.gov/opinions/pub/24/24-60240-CV1.pdf
  48. Soroban Capital Partners LP v. Commissioner, Nos. 25-2079(L), 25-2250(CON) (2d Cir. Sept. 17, 2026). https://ww3.ca2.uscourts.gov/decisions/OPN/25-2079_opn.pdf
  49. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T
  50. IRC § 469(e)(1); Treas. Reg. § 1.469-2T(c)(3)(i). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  51. Rev. Rul. 68-331, 1968-1 C.B. 352, quoting Kate J. Crichton v. Commissioner, 42 B.T.A. 490 (1940), acq., aff’d, 122 F.2d 181 (5th Cir. 1941). https://apiexchange.com/tax-legal/revenue-ruling/rev-rul-68-331.pdf
  52. IRC § 1031(a)(1). https://www.law.cornell.edu/uscode/text/26/1031
  53. Crichton v. Commissioner, 122 F.2d 181 (5th Cir. 1941), as quoted in Rev. Rul. 68-331, 1968-1 C.B. 352. https://apiexchange.com/tax-legal/revenue-ruling/rev-rul-68-331.pdf
  54. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.5(1), citing Treas. Reg. § 1.636-3(a)(1) and (2). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  55. IRC § 1031(a)(1), as amended by Pub. L. 115-97 (TCJA) § 13303. https://www.law.cornell.edu/uscode/text/26/1031
  56. Treas. Reg. § 1.1031(a)-3(a)(5)(i). https://www.law.cornell.edu/cfr/text/26/1.1031(a)-3
  57. Treas. Reg. § 1.1031(a)-3(a)(6) (state or local law rule). https://www.law.cornell.edu/cfr/text/26/1.1031(a)-3
  58. 68 Okla. Stat. § 2358(A)(4)(a) (current version, eff. May 6, 2026). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=92616
  59. Tex. Tax Code § 201.052(a). https://texas.public.law/statutes/tex._tax_code_section_201.052
  60. 68 O.S. § 1001(B)(3). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  61. Tex. Tax Code § 202.052(b); qualification under sec. 202.054. https://texas.public.law/statutes/tex._tax_code_section_202.054
  62. Tex. Tax Code § 201.057(c). https://texas.public.law/statutes/tex._tax_code_section_201.057
  63. Tex. Tax Code § 202.056. https://texas.public.law/statutes/tex._tax_code_section_202.056
  64. 68 O.S. § 1001(D)(1)–(3). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  65. 68 O.S. § 1001(D)(5). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  66. Tex. Tax Code § 23.175. https://texas.public.law/statutes/tex._tax_code_section_23.175
  67. 68 O.S. § 1001(K) (see also sec. 1001(L) for equipment limits). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  68. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  69. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  70. 52 O.S. § 570.12(A). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=80940
  71. 68 O.S. § 1001(B)(3)–(4); Oklahoma Secretary of State, State Question No. 795 initiative petition filing (Dec. 20, 2017). https://www.sos.ok.gov/documents/questions/795.pdf
  72. 68 O.S. § 1001(B)(4); Oklahoma Secretary of State, State Question 795 (Initiative Petition 416), status: Withdrawn by proponents of record, April 23, 2018. https://www.sos.ok.gov/gov/questions.aspx
  73. 68 O.S. § 2355(C)–(D), as amended by 2025 Okla. Sess. Laws, H.B. 2764 sec. 2. https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF
  74. Okla. Admin. Code § 710:50-19-1(a)(2). https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/rules-and-policies/agency-rules/2024/Chapter_50_Income_2024.pdf
  75. 68 O.S. § 2385.26(A). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  76. 68 O.S. § 2385.26(C). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  77. 68 O.S. § 2385.26(B). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  78. FTB Schedule S (2025), Other State Tax Credit. https://www.ftb.ca.gov/forms/2025/2025-540-s.pdf
  79. NY Tax Law sec. 620; NY DTF Form IT-112-R. https://www.tax.ny.gov/pdf/current_forms/it/it112r_fill_in.pdf
  80. NY DTF Form IT-225-I (2025) instructions. https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf
  81. Cal. Rev. & Tax Code § 17681; FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  82. FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  83. N.Y. Tax Law sec. 612(a), (i) (2026). https://www.nysenate.gov/legislation/laws/TAX/612
  84. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  85. 68 O.S. § 2353(10) (Oklahoma depletion option); Oklahoma Tax Commission 2025 Form 511 Packet, Schedule 511-A “Oklahoma Depletion” and Schedule 511-B “Add Back of Excess Federal Depletion” instructions. https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
  86. 68 O.S. § 2358.6A(B)(1). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  87. IRC § 613A(c)(1). https://www.law.cornell.edu/uscode/text/26/613A
  88. FTB 2025 Form 540 Booklet, line 62 instructions. https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf
  89. FTB 2025 Form 540 Personal Income Tax Booklet, 2025 California Tax Rate Schedules X and Y (p. 75) and Form 540 line 62 instructions (Behavioral Health Services Tax). https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf
  90. N.Y. Tax Law § 601(a)(1)(B)(vii), as amended by 2025 N.Y. Laws ch. 59 (S.3009-C/A.3009-C), Part B, § 1. https://legislation.nysenate.gov/pdf/bills/2025/s3009c
  91. N.Y. Tax Law § 601(c)(1)(B)(vii), as amended by 2025 N.Y. Laws ch. 59 (S.3009-C/A.3009-C), Part B, § 5. https://legislation.nysenate.gov/pdf/bills/2025/s3009c
  92. NY DTF Form IT-201-I (2025), p. 40, “How to calculate your 2025 New York City tax” – NYC tax rate schedule. https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
  93. Author’s calculation from notes 14, 38, 98, 101, 102, 103, 104. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  94. Cal. Franchise Tax Board, 2025 California Tax Rate Schedules (2025 Personal Income Tax Booklet). https://www.ftb.ca.gov/forms/2025/2025-540-tax-rate-schedules.pdf
  95. California Franchise Tax Board, Tax News, October 2026, “2026 Indexing.” https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/index.html
  96. Cal. Rev. & Tax. Code § 17260(b) (as amended by Stats. 2026, ch. 236 (SB 1435), eff. Sept. 14, 2026). https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17260
  97. Treas. Reg. § 1.612-4(b)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.612-4
  98. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  99. Author’s calculation from note 105. https://www.ecfr.gov/current/title-26/section-1.469-2T
  100. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  101. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  102. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  103. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  104. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  105. Author’s calculation from notes 33, 38, 49, 106. https://www.ecfr.gov/current/title-26/section-1.469-2T
  106. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim

Notes 100 to 106 have no number in the book; other notes in this list cite them.

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Chapter 7 Special moves

98 notes, 83 numbered in the book

  1. Ellis v. Comm’r, No. 14-1310 (8th Cir. June 5, 2015). https://www.govinfo.gov/content/pkg/USCOURTS-ca8-14-01310/pdf/USCOURTS-ca8-14-01310-0.pdf
  2. IRC § 4975(a), (b). https://www.law.cornell.edu/uscode/text/26/4975
  3. IRC § 4975(c)(3). https://www.law.cornell.edu/uscode/text/26/4975
  4. IRC § 43(a), as described in IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  5. IRC § 45I(a), as described in IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  6. SEC/NASAA/FINRA, Investor Alert: Self-Directed IRAs and the Risk of Fraud. https://www.finra.org/investors/insights/self-directed-IRAs-risk-of-fraud
  7. IRC § 408(e)(1). https://www.law.cornell.edu/uscode/text/26/408
  8. IRC § 512(a)(1). https://www.law.cornell.edu/uscode/text/26/512
  9. IRC § 512(b)(2). https://www.law.cornell.edu/uscode/text/26/512
  10. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  11. Treas. Reg. § 1.512(b)-1(b). https://www.law.cornell.edu/cfr/text/26/1.512(b)-1
  12. IRS Instructions for Form 990-T (2024). https://www.irs.gov/instructions/i990t
  13. IRS Instructions for Form 990-T (2025), Who Must File, item 4 (IRAs and similar accounts) and following caution. https://www.irs.gov/instructions/i990t
  14. IRC § 512(b)(12). https://www.law.cornell.edu/uscode/text/26/512
  15. IRS, Instructions for Form 990-T (2025), Item G, p. 11. https://www.irs.gov/pub/irs-pdf/i990t.pdf
  16. IRS, Instructions for Form 990-T (2025), Part II, Line 2; see also IRC § 511(b)(1). https://www.irs.gov/pub/irs-pdf/i990t.pdf
  17. Rev. Proc. 2025-32, sec. 4.01, Table 5 (Section 1(j)(2)(E) – Estates and Trusts), p. 12. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  18. IRC § 514(a)(1). https://www.law.cornell.edu/uscode/text/26/514
  19. IRC § 512(b)(4). https://www.law.cornell.edu/uscode/text/26/512
  20. IRC § 514(b)(1). https://www.law.cornell.edu/uscode/text/26/514
  21. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  22. IRS, Instructions for Form 990-T (2025), Passive loss and at-risk limitations, pp. 19–20. https://www.irs.gov/pub/irs-pdf/i990t.pdf
  23. IRC § 4975(c)(1). https://www.law.cornell.edu/uscode/text/26/4975
  24. IRC § 4975(e)(2)(A)–(I). https://www.law.cornell.edu/uscode/text/26/4975
  25. IRC § 4975(e)(6). https://www.law.cornell.edu/uscode/text/26/4975
  26. IRC § 408(e)(2). https://www.law.cornell.edu/uscode/text/26/408
  27. IRC § 408(e)(4). https://www.law.cornell.edu/uscode/text/26/408
  28. Peek v. Commissioner, 140 T.C. 216 (2013), Findings of Fact (Implementing IACC with FP Company). https://static.case.law/tc/140/html/0216-01.html
  29. Fleck v. Comm’r, No. 13-9004; Peek v. Comm’r, No. 13-9005 (10th Cir. Dec. 18, 2014). https://www.govinfo.gov/content/pkg/USCOURTS-ca10-13-09005/pdf/USCOURTS-ca10-13-09005-0.pdf
  30. IRC § 1031(a)(1). https://www.law.cornell.edu/uscode/text/26/1031
  31. IRC § 1031(a)(1), as amended by Pub. L. 115-97 (TCJA) § 13303. https://www.law.cornell.edu/uscode/text/26/1031
  32. Rev. Rul. 68-331, 1968-1 C.B. 352, quoting Kate J. Crichton v. Commissioner, 42 B.T.A. 490 (1940), acq., aff’d, 122 F.2d 181 (5th Cir. 1941). https://apiexchange.com/tax-legal/revenue-ruling/rev-rul-68-331.pdf
  33. Treas. Reg. § 1.1031(a)-3(a)(5)(i). https://www.law.cornell.edu/cfr/text/26/1.1031(a)-3
  34. Treas. Reg. § 1.1031(a)-3(a)(6) (state or local law rule). https://www.law.cornell.edu/cfr/text/26/1.1031(a)-3
  35. Sheffield v. Hogg, 124 Tex. 290, 77 S.W.2d 1021 (1934). https://www.courtlistener.com/opinion/5184530/sheffield-v-hogg/
  36. IRC § 1031(a)(3)(A). https://www.law.cornell.edu/uscode/text/26/1031
  37. IRC § 1031(a)(3)(B). https://www.law.cornell.edu/uscode/text/26/1031
  38. Treas. Reg. § 1.1031(k)-1(g)(4). https://www.law.cornell.edu/cfr/text/26/1.1031(k)-1
  39. Treas. Reg. § 1.1031(k)-1(g)(4)(vi) (see also (g)(6) for required agreement restrictions). https://www.law.cornell.edu/cfr/text/26/1.1031(k)-1
  40. IRC § 1031(b). https://www.law.cornell.edu/uscode/text/26/1031
  41. Treas. Reg. § 1.1031(d)-2 (and Example 2). https://www.law.cornell.edu/cfr/text/26/1.1031(d)-2
  42. IRC § 636(a). https://www.law.cornell.edu/uscode/text/26/636
  43. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  44. Treas. Reg. § 1.1254-1(a). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  45. Treas. Reg. § 1.1254-2(d)(1). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  46. Rev. Proc. 2025-32 sec. 4.42(1). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  47. Rev. Proc. 2025-32 sec. 3.14 (implementing Pub. L. 119-21, § 70106, amending IRC § 2010(c)(3)). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  48. Pub. L. 119-21, 139 Stat. 72 (enacted July 4, 2025); bonus depreciation at § 70301, 139 Stat. 189. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  49. Pub. L. 119-21, § 70106(a)(3), (b), striking IRC § 2010(c)(3)(C); U.S. Code editorial note (“Amendments 2025”) under IRC § 2010. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section2010&num=0&edition=prelim
  50. Pub. L. No. 119-21, sec. 70106 (2025), amending IRC § 2010(c)(3); Rev. Proc. 2025-32, sec. 2.14; IRC § 2631(c). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  51. IRC § 1014(a)(1). https://www.law.cornell.edu/uscode/text/26/1014
  52. Treas. Reg. § 1.1254-2(b). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  53. Treas. Reg. § 1.1254-2(a)(1). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  54. IRC § 1015(a). https://www.law.cornell.edu/uscode/text/26/1015
  55. Treas. Reg. § 1.1254-3(b)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.1254-3
  56. IRC § 1245(a)(2)(A). https://www.law.cornell.edu/uscode/text/26/1245
  57. Treas. Reg. § 20.2031-1(b). https://www.law.cornell.edu/cfr/text/26/20.2031-1
  58. Treas. Reg. § 25.2512-1. https://www.law.cornell.edu/cfr/text/26/25.2512-1
  59. IRC § 170(e)(1)(A). https://www.law.cornell.edu/uscode/text/26/170
  60. IRC § 170(f)(11)(C), (D). https://www.law.cornell.edu/uscode/text/26/170
  61. IRC § 1014(c). https://www.law.cornell.edu/uscode/text/26/1014
  62. Treas. Reg. § 1.691(a)-1(b). https://www.law.cornell.edu/cfr/text/26/1.691(a)-1
  63. IRS, Publication 559, Survivors, Executors, and Administrators (2025), Specific Types of Income in Respect of a Decedent – Depletion, p. 17. https://www.irs.gov/pub/irs-pdf/p559.pdf
  64. RRC, “Enhanced Recovery” webpage. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/injection-storage-permits/enhanced-recovery/
  65. IRC § 43(b)(1) and § 43(b)(3)(A), as restated in IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  66. IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  67. IRS Notice 2026-46 Table 2, 2026-35 I.R.B. 184. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  68. IRC § 45I(c)(3)(A), as described in IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  69. IRC § 613A(c)(6)(E). https://www.law.cornell.edu/uscode/text/26/613A
  70. IRC § 45K(d)(5) (cross-referenced by 45I(c)(2)(A)). https://www.law.cornell.edu/uscode/text/26/45K
  71. IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  72. IRC § 45I(b)(2)(A)–(C); IRS Notice 2026-46, 2026-35 I.R.B. 182 (2025 reference price $63.40); IRS Notice 2026-42, 2026-29 I.R.B. 41 (2026 inflation adjustment factor 1.6295). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section45I&num=0&edition=prelim
  73. IRC § 45I(c)(2). https://www.law.cornell.edu/uscode/text/26/45I
  74. IRC § 45I(d)(1). https://www.law.cornell.edu/uscode/text/26/45I
  75. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996). https://www.courtlistener.com/opinion/2448635/heritage-resources-inc-v-nationsbank/
  76. IRC § 469(d)(2). https://www.law.cornell.edu/uscode/text/26/469
  77. IRC § 469(a)(1). https://www.law.cornell.edu/uscode/text/26/469
  78. IRC § 469(b). https://www.law.cornell.edu/uscode/text/26/469
  79. Author’s calculation from notes 21, 84, 85, 86, 87, 88, 89. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  80. Author’s calculation from notes 90, 91. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  81. Author’s calculation from notes 21, 84, 85, 86, 89. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  82. Author’s calculation from notes 21, 92, 93, 94. https://www.ecfr.gov/current/title-26/section-1.469-2T
  83. Author’s calculation from note 82. https://www.ecfr.gov/current/title-26/section-1.469-2T
  84. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  85. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  86. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  87. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  88. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  89. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  90. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  91. Author’s calculation from notes 90, 95, 96, 97, 98. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  92. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  93. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T
  94. IRS Pub. 925 (2025), “Dispositions.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  95. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  96. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  97. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  98. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim

Notes 84 to 98 have no number in the book; other notes in this list cite them.

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Chapter 8 Getting out

75 notes, 64 numbered in the book

  1. Rev. Proc. 2025-32 sec. 3.03 (IRC § 1(j)(5)(B)). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  2. Rev. Proc. 2025-32 sec. 3.01, Tables 2 and 3. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  3. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  4. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  5. IRC § 613A(c)(1). https://www.law.cornell.edu/uscode/text/26/613A
  6. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  7. Treas. Reg. § 1.1254-1(a). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  8. IRC § 1245(a)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  9. IRC § 1245(a)(3). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  10. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  11. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  12. IRS Pub. 925 (2025), “Dispositions.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  13. Author’s calculation from notes 10, 14, 25, 65, 66, 67, 68. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  14. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  15. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  16. Author’s calculation from notes 69, 70. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  17. IRC § 1254(a)(1)(A)(ii). https://www.law.cornell.edu/uscode/text/26/1254
  18. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  19. Pub. L. 119-21, 139 Stat. 72 (2025): no provision amends IRC § 1254; the Act’s only references to 1254 are to 8 U.S.C. § 1254a. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  20. IRC § 751(c). https://www.law.cornell.edu/uscode/text/26/751
  21. Treas. Reg. § 1.611-1(a)(1), (b)(1); IRC § 613(a), 613A(c); IRC § 1221/1231. https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR1d8cb30f9f8e91c/section-1.611-1
  22. Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  23. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  24. Treas. Reg. § 1.1245-1(a)(5). https://www.law.cornell.edu/cfr/text/26/1.1245-1
  25. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  26. Treas. Reg. § 1.469-1(e)(4)(iv). https://www.ecfr.gov/current/title-26/section-1.469-1
  27. Treas. Reg. § 1.512(b)-1(b). https://www.law.cornell.edu/cfr/text/26/1.512(b)-1
  28. IRC § 1231(a). https://www.law.cornell.edu/uscode/text/26/1231
  29. IRC § 751(a). https://www.law.cornell.edu/uscode/text/26/751
  30. IRC § 1231(c). https://www.law.cornell.edu/uscode/text/26/1231
  31. IRC § 1231; IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  32. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  33. IRC § 741. https://www.law.cornell.edu/uscode/text/26/741
  34. IRC § 469(k)(2) (definition of a publicly traded partnership). https://www.law.cornell.edu/uscode/text/26/469
  35. Synthesis of IRC § 751(c) (note 20) and standard MLP return-of-capital distribution mechanics. https://www.law.cornell.edu/uscode/text/26/751
  36. IRC § 453(i)(1). https://www.law.cornell.edu/uscode/text/26/453
  37. Treas. Reg. § 1.1254-1(d). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  38. Author’s calculation from IRC § 453(i)(2) (definition of “recapture income”) and IRC § 751(c)’s inclusion of section 1254 property as an unrealized receivable. https://www.law.cornell.edu/uscode/text/26/453
  39. IRC § 61(a)(4). https://www.law.cornell.edu/uscode/text/26/61
  40. Author’s calculation from notes 14, 65, 66, 67, 68. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  41. Author’s calculation from notes 11, 12, 68, 71. https://www.ecfr.gov/current/title-26/section-1.469-2T
  42. Author’s calculation from notes 69, 72, 73, 74. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  43. Burnet v. Harmel, 287 U.S. 103 (1932). https://www.law.cornell.edu/supremecourt/text/287/103
  44. Palmer v. Bender, 287 U.S. 551, 557 (1933). https://www.law.cornell.edu/supremecourt/text/287/551
  45. Palmer v. Bender, 287 U.S. 551, 556 & n.1 (1933), construing Revenue Act of 1921 sec. 214(a)(10), 42 Stat. 239. https://www.law.cornell.edu/supremecourt/text/287/551
  46. Treas. Reg. § 1.1254-2(a)(1). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  47. Treas. Reg. § 1.1245-4(a)(1). https://www.law.cornell.edu/cfr/text/26/1.1245-4
  48. Treas. Reg. § 1.1254-3(b)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.1254-3
  49. IRC § 1254(a)(1)(A)(i). https://www.law.cornell.edu/uscode/text/26/1254
  50. IRC § 1245(a)(2)(A). https://www.law.cornell.edu/uscode/text/26/1245
  51. IRC § 1014(a)(1). https://www.law.cornell.edu/uscode/text/26/1014
  52. Treas. Reg. § 1.1254-2(b). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  53. Treas. Reg. § 1.1245-4(b)(1). https://www.law.cornell.edu/cfr/text/26/1.1245-4
  54. IRC § 1014(c). https://www.law.cornell.edu/uscode/text/26/1014
  55. Treas. Reg. § 1.1254-2(c)(1) and (c)(3). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  56. Treas. Reg. § 1.1245-4(c)(1) and (c)(2). https://www.law.cornell.edu/cfr/text/26/1.1245-4
  57. Rev. Rul. 68-331, 1968-1 C.B. 352. https://apiexchange.com/tax-legal/revenue-ruling/rev-rul-68-331.pdf
  58. IRC § 1031(a)(1), as amended by Pub. L. 115-97 (TCJA) § 13303. https://www.law.cornell.edu/uscode/text/26/1031
  59. Treas. Reg. § 1.1031(a)-3(a)(5)(i). https://www.law.cornell.edu/cfr/text/26/1.1031(a)-3
  60. Treas. Reg. § 1.1031(a)-3(a)(6) (state or local law rule). https://www.law.cornell.edu/cfr/text/26/1.1031(a)-3
  61. Treas. Reg. § 1.1254-2(d)(1). https://www.law.cornell.edu/cfr/text/26/1.1254-2
  62. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 5. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  63. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  64. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  65. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  66. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  67. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  68. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  69. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  70. Author’s calculation from notes 69, 72, 73, 74, 75. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  71. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T
  72. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  73. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  74. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  75. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim

Notes 65 to 75 have no number in the book; other notes in this list cite them.

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Chapter 9 Mineral rights

61 notes

  1. Kimbell Royalty Partners, LP, Form 8-K, filed January 2025. https://www.sec.gov/Archives/edgar/data/1657788/000110465925001678/tm251962d3_8k.htm
  2. Author’s calculation from note 1: $231,000,000 / 6,953 net royalty acres. https://www.sec.gov/Archives/edgar/data/1657788/000110465925001678/tm251962d3_8k.htm
  3. Dorchester Minerals, L.P., news release, September 2, 2025 (referenced in Form 10-K FY2025). https://www.globenewswire.com/news-release/2025/09/02/3143211/0/en/Dorchester-Minerals-L-P-Announces-Acquisition-of-Mineral-Interests.html
  4. Author’s calculation from note 3: $23,000,000 / 3,050 net royalty acres. https://www.globenewswire.com/news-release/2025/09/02/3143211/0/en/Dorchester-Minerals-L-P-Announces-Acquisition-of-Mineral-Interests.html
  5. Altman v. Blake, 712 S.W.2d 117, 118 (Tex. 1986). https://law.justia.com/cases/texas/supreme-court/1986/c-5143-0.html
  6. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996). https://www.courtlistener.com/opinion/2448635/heritage-resources-inc-v-nationsbank/
  7. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section613A&num=0&edition=prelim
  8. IRC § 613A(c)(6)(C). https://www.law.cornell.edu/uscode/text/26/613A
  9. IRC § 469(e)(1); Treas. Reg. § 1.469-2T(c)(3)(i). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  10. Sentry Mineral Holdings III, LP, SEC Form D, filed Sept. 30, 2025. https://www.sec.gov/Archives/edgar/data/2088118/000208811825000002/primary_doc.xml
  11. Texas General Land Office, Tabulation of Bids, Tuesday, May 12, 2026, tract MGL #34 (H&T C RY CO Survey, Ward County). https://www.glo.texas.gov/sites/default/files/documents/energy/past-bid-sales/2026-sealed-bid-salespast-bid-sales/may-2026-tabulation-of-bids.pdf
  12. Anderson v. Helvering, 310 U.S. 404, 409 (1940), as summarized in IRS Pub. 5652, Oil and Gas Industry Audit Technique Guide. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  13. Tex. Nat. Res. Code § 52.022 (Subchapter B, Lease of Public School and Gulf Land). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.52.htm
  14. Burnet v. Harmel, 287 U.S. 103 (1932). https://www.law.cornell.edu/supremecourt/text/287/103
  15. Treas. Reg. § 1.612-3(c)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  16. Colonial Royalties Co. v. Keener, 266 P.2d 467 (Okla. 1953). https://case-law.vlex.com/vid/colonial-royalties-co-v-888293187
  17. Stroud v. D-X Sunray Oil Co., 1962 OK 240, 376 P.2d 1015 (Okla. 1962). https://law.justia.com/cases/oklahoma/supreme-court/1962/36103.html
  18. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  19. French v. Chevron U.S.A. Inc., 896 S.W.2d 795 (Tex. 1995). https://www.courtlistener.com/opinion/1512430/french-v-chevron-usa-inc/
  20. Sheffield v. Hogg, 124 Tex. 290, 77 S.W.2d 1021 (1934). https://www.courtlistener.com/opinion/5184530/sheffield-v-hogg/
  21. 17 C.F.R. § 210.4-10(a)(6). https://www.law.cornell.edu/cfr/text/17/210.4-10
  22. Treas. Reg. § 1.611-1(a); IRC § 613(a), 613A(c) & (d)(1). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  23. Tex. Nat. Res. Code § 91.401(3)–(4). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  24. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  25. Tex. Tax Code § 202.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.052
  26. Tex. Tax Code § 201.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.201.htm#201.052
  27. Tex. Tax Code § 23.175(a)–(b) (appraisal of oil or gas interest); Tex. Tax Code § 202.052(a) (severance tax). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm#23.175
  28. Viper Energy Partners LP, Form 10-K for FY2014, Items 1 & 2. https://www.sec.gov/Archives/edgar/data/1602065/000160206515000005/viper12311410-k.htm
  29. Viper Energy Partners LP, 10-K FY2014, cover page. https://www.sec.gov/Archives/edgar/data/1602065/000160206515000005/viper12311410-k.htm
  30. Viper Energy, Inc., 10-K FY2024, “Our Properties.” https://www.sec.gov/Archives/edgar/data/1602065/000160206525000010/vnom-20241231.htm
  31. Viper Energy, Inc., 10-K FY2025, cover page. https://www.sec.gov/Archives/edgar/data/2074176/000207417626000010/vnom-20251231.htm
  32. Brigham Minerals, Inc., 10-K FY2019, Business overview. https://www.sec.gov/Archives/edgar/data/1745797/000162828020002506/brighamminerals10k2019.htm
  33. Brigham Minerals, Inc., 10-K FY2021, Business overview. https://www.sec.gov/Archives/edgar/data/1745797/000174579722000017/mnrl-20211231.htm
  34. Brigham Minerals, Inc., Form 8-K, September 6, 2022, Item 7.01. https://www.sec.gov/Archives/edgar/data/1745797/000119312522238432/d401487d8k.htm
  35. Viper Energy Partners LP, Form 10-K for FY2014, Item 5. https://www.sec.gov/Archives/edgar/data/1602065/000160206515000005/viper12311410-k.htm
  36. VNOM Sub, Inc. (formerly Viper Energy, Inc.), Form 10-Q for the quarter ended June 30, 2025, Part II, Item 2. https://www.sec.gov/Archives/edgar/data/1602065/000160206525000061/vnom-20250630.htm
  37. Viper Energy, Inc., Form 8-K filed Nov. 13, 2023, Items 3.03 and 5.03. https://www.sec.gov/Archives/edgar/data/1602065/000110465923116606/tm2330431d1_8k.htm
  38. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  39. Treas. Reg. § 1.469-2T(c)(3)(ii)–(iii)(B). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  40. Black Stone Minerals, L.P., 10-K FY2020, Item 6, Selected Financial Data. https://www.sec.gov/Archives/edgar/data/1621434/000162828021002859/bsm-20201231.htm
  41. Kimbell Royalty Partners, LP, News Release dated Jan. 7, 2025, Exhibit 99.1 to Form 8-K, highlights and footnote 2. https://www.sec.gov/Archives/edgar/data/1657788/000110465925001678/tm251962d3_ex99-1.htm
  42. Black Stone Minerals, L.P., Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/1621434/000162143426000018/bsm-20251231.htm
  43. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  44. IRC § 613A(d)(1). https://www.law.cornell.edu/uscode/text/26/613A
  45. IRC § 613A(c)(3). https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section613A&num=0&edition=prelim
  46. Treas. Reg. § 1.613A-3(i)(2)(i); Pub. L. 101-508, § 11521(a) (repealing former IRC § 613A(c)(9), (10)). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR83f3d9df3aa3566/section-1.613A-3
  47. IRC § 613A(d)(5). https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section613A&num=0&edition=prelim
  48. IRC § 613A(d)(5); IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  49. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  50. Treas. Reg. § 1.1411-4(a)(1)(i). https://www.ecfr.gov/current/title-26/section-1.1411-4
  51. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  52. IRC § 1231; IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  53. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  54. Black Stone Minerals, L.P., 10-K FY2015, cover page. https://www.sec.gov/Archives/edgar/data/1621434/000156459016014218/bsm-10k_20151231.htm
  55. Patterson-UTI Energy, Inc., Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/889900/000156459021005045/pten-10k_20201231.htm
  56. Bureau of Land Management, Oil and Gas: About (page accessed Oct. 1, 2026). https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/about
  57. Japhet v. McRae, 276 S.W. 669, 669 (Tex. Comm’n App., Section B, Oct. 28, 1925, judgment adopted by the Supreme Court), headnote 1. https://static.case.law/sw/276/html/0669-01.html
  58. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  59. Texas State Securities Board, News Release “North Texas Company Ordered to Stop Fraudulent Offering of Oil Royalty Rights” (Mar. 26, 2015); Emergency Cease and Desist Order No. ENF-15-CDO-1738 (Mar. 25, 2015). https://www.ssb.texas.gov/news-publications/north-texas-company-ordered-stop-fraudulent-offering-oil-royalty-rights
  60. FINRA, “About BrokerCheck.” https://www.finra.org/investors/investing/working-with-investment-professional/about-brokercheck
  61. SEC Press Release 2021-61 (SEC v. Zona Energy Inc., et al.). https://www.sec.gov/newsroom/press-releases/2021-61

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Chapter 10 Royalties, NPRIs, overrides and net profits interests

78 notes

  1. Heritage Resources, Inc. v. NationsBank, 939 S.W.2d 118 (Tex. 1996). https://www.courtlistener.com/opinion/2448635/heritage-resources-inc-v-nationsbank/
  2. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  3. Mittelstaedt v. Santa Fe Minerals, Inc., 954 P.2d 1203 (Okla. 1998). https://law.justia.com/cases/oklahoma/supreme-court/1998/11722.html
  4. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  5. Treas. Reg. § 1.611-1(a)(1), (b)(1); IRC § 613(a), 613A(c); IRC § 1221/1231. https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR1d8cb30f9f8e91c/section-1.611-1
  6. Treas. Reg. § 1.611-1(a); IRC § 613(a), 613A(c) & (d)(1). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  7. Klondike Royalties, LP, SEC Form D, filed May 30, 2024. https://www.sec.gov/Archives/edgar/data/2003542/000200354224000001/primary_doc.xml
  8. Dorchester Minerals, L.P., Form 10-K FY2025 (referencing Sept. 2024 acquisition). https://www.sec.gov/Archives/edgar/data/1172358/000143774926005376/dmlp20251231_10k.htm
  9. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  10. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.8. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  11. Colonial Royalties Co. v. Keener, 266 P.2d 467 (Okla. 1953). https://case-law.vlex.com/vid/colonial-royalties-co-v-888293187
  12. Anderson v. Helvering, 310 U.S. 404, 409 (1940), as summarized in IRS Pub. 5652, Oil and Gas Industry Audit Technique Guide. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  13. Treas. Reg. § 1.612-3(c)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  14. Altman v. Blake, 712 S.W.2d 117, 118 (Tex. 1986). https://law.justia.com/cases/texas/supreme-court/1986/c-5143-0.html
  15. Stroud v. D-X Sunray Oil Co., 1962 OK 240, 376 P.2d 1015 (Okla. 1962). https://law.justia.com/cases/oklahoma/supreme-court/1962/36103.html
  16. French v. Chevron U.S.A. Inc., 896 S.W.2d 795 (Tex. 1995). https://www.courtlistener.com/opinion/1512430/french-v-chevron-usa-inc/
  17. Chesapeake Exploration, L.L.C. v. Hyder, 483 S.W.3d 870 (Tex. 2016) (opinion on rehearing). https://static.case.law/sw3d/483/html/0870-01.html
  18. IRS Oil & Gas Audit Technique Guide, Pub. 5652 (2-2023), Glossary (PDF p. 306). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  19. San Juan Basin Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/319655/000119312526128710/sjt_10-k_2025-12-31.htm
  20. Treas. Reg. § 1.611-1(b). https://www.law.cornell.edu/cfr/text/26/1.611-1
  21. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.5(1), citing Treas. Reg. § 1.636-3(a)(1) and (2). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  22. IRC § 636; IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.5. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  23. San Juan Basin Royalty Trust, Form 10-K for FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/319655/000119312526128710/sjt_10-k_2025-12-31.htm
  24. VOC Energy Trust, Form 10-K for FY2024, Item 1. https://www.sec.gov/Archives/edgar/data/1505413/000110465925026133/tm251072-1_10k.htm
  25. MV Oil Trust, Form 10-K for FY2024, Item 1. https://www.sec.gov/Archives/edgar/data/1371782/000110465925026134/tm251071-1_10k.htm
  26. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  27. Tex. Nat. Res. Code § 91.401(3)–(4). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  28. Tex. Nat. Res. Code § 91.402. https://codes.findlaw.com/tx/natural-resources-code/nat-res-sect-91-402/
  29. Permian Basin Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/319654/000119312526128561/pbt_10-k_2025-12-31.htm
  30. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Part I, Item 1 (Business). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  31. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Selected Financial Data. https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  32. SandRidge Mississippian Trust I, 10-K FY2020, Item 7 / Form 8-K, April 26, 2021. https://www.sec.gov/Archives/edgar/data/1509228/000162828021005478/a202010ksdt.htm
  33. SandRidge Mississippian Trust II, 10-K FY2019, Item 7. https://www.sec.gov/Archives/edgar/data/1538267/000153826720000012/a201910ksdr.htm
  34. SandRidge Permian Trust, Form 8-K, June 24, 2021, Item 1.01. https://www.sec.gov/Archives/edgar/data/1521168/000110465921085112/tm2120573d1_8k.htm
  35. SandRidge Mississippian Trust I, Form 8-K, April 26, 2021, Item 1.01. https://www.sec.gov/Archives/edgar/data/1509228/000162828021007593/sdt1q2021distdec8-k.htm
  36. SandRidge Mississippian Trust II, Form 8-K, September 14, 2020, Item 1.01. https://www.sec.gov/Archives/edgar/data/1538267/000153826720000025/royaltyinterestspsawit.htm
  37. SandRidge Mississippian Trust I, 10-K FY2020, Item 5. https://www.sec.gov/Archives/edgar/data/1509228/000162828021005478/a202010ksdt.htm
  38. SandRidge Mississippian Trust II, 10-K FY2019, Item 5. https://www.sec.gov/Archives/edgar/data/1538267/000153826720000012/a201910ksdr.htm
  39. SandRidge Mississippian Trust II, Form 10-K for FY2019, Item 1. https://www.sec.gov/Archives/edgar/data/1538267/000153826720000012/a201910ksdr.htm
  40. SandRidge Mississippian Trust I, press release “Announces Resolution of Litigation Against the Trust; Final Distribution to Trust Unitholders to be Made in November 2025” (Business Wire, Oct. 27, 2025). https://www.businesswire.com/news/home/20251027224898/en/SandRidge-Mississippian-Trust-I-Announces-Resolution-of-Litigation-Against-the-Trust-Final-Distribution-to-Trust-Unitholders-to-be-Made-in-November-2025
  41. SandRidge Mississippian Trust I, Form 10-K for FY2011, Item 1. https://www.sec.gov/Archives/edgar/data/1509228/000119312512130819/d319153d10k.htm
  42. SandRidge Mississippian Trust II, Form 10-K for FY2012, Item 1. https://www.sec.gov/Archives/edgar/data/1538267/000119312513108848/d501730d10k.htm
  43. SandRidge Permian Trust, Form 10-K for FY2011, Item 1. https://www.sec.gov/Archives/edgar/data/1521168/000119312512130820/d319405d10k.htm
  44. SandRidge Mississippian Trust II, Form 10-Q for the quarter ended Sept. 30, 2020, Item 1 (statement of distributable income). https://www.sec.gov/Archives/edgar/data/1538267/000153826720000028/sdr3q202010q9302020.htm
  45. SandRidge Permian Trust, Form 10-Q for the quarter ended June 30, 2021, statements of distributable income. https://www.sec.gov/Archives/edgar/data/1521168/000110465921106322/tm2118593d1_10q.htm
  46. Sabine Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/710752/000119312526081251/sbr_10-k_2025-12-31.htm
  47. IRC § 469(e)(1); Treas. Reg. § 1.469-2T(c)(3)(i). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  48. Treas. Reg. § 1.469-2T(c)(3)(ii)–(iii)(B). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  49. Swift Energy Pension Partners 1994-A, Ltd., Form 10-K for FY1999, Items 1 and 5. https://www.sec.gov/Archives/edgar/data/928541/000092854100000002/0000928541-00-000002.txt
  50. Swift Energy Pension Partners 1994-A, Ltd., Form 10-K for FY1999, Items 6 and 7. https://www.sec.gov/Archives/edgar/data/928541/000092854100000002/0000928541-00-000002.txt
  51. Swift Energy Pension Partners 1993-C, Ltd., Form 10-K for FY1999, Items 6 and 7. https://www.sec.gov/Archives/edgar/data/915513/000091551300000005/0000915513-00-000005.txt
  52. Kimbell Royalty Partners, LP, News Release dated Jan. 7, 2025, Exhibit 99.1 to Form 8-K, highlights and footnote 2. https://www.sec.gov/Archives/edgar/data/1657788/000110465925001678/tm251962d3_ex99-1.htm
  53. Tex. Tax Code § 202.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.052
  54. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1 (Cawley, Gillespie & Associates, Inc. reserve report dated January 21, 2020). https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  55. Naylor Farms, Inc. v. Chaparral Energy, LLC, No. 17-6146 (10th Cir. May 3, 2019), slip op. pp. 1–2 (parties, docket, 2,500 wells); Chaparral Energy, Inc., Disclosure Statement (Ex. 99.12 to Form 8-K, Aug. 2020), “Royalties Class Action Lawsuit” (June 7, 2011 filing date). https://www.sec.gov/Archives/edgar/data/1346980/000119312520221605/d37844dex9912.htm
  56. Chaparral Energy, Inc., Disclosure Statement exhibit, SEC Form 8-K, 2020, “Royalties Class Action Lawsuit.” https://www.sec.gov/Archives/edgar/data/1346980/000119312520221605/d37844dex9912.htm
  57. Chaparral Energy, Inc., Disclosure Statement, Ex. 99.12 to Form 8-K filed Aug. 17, 2020, Plan summary. https://www.sec.gov/Archives/edgar/data/1346980/000119312520221605/d37844dex9912.htm
  58. Chesapeake Energy Corp., 10-K FY2018, Legal Proceedings note. https://www.sec.gov/Archives/edgar/data/895126/000089512619000070/chk-20181231_10k.htm
  59. Chesapeake Energy Corp., 10-K FY2020 (filed March 2021), Glossary of Certain Other Terms. https://www.sec.gov/Archives/edgar/data/895126/000089512621000078/chk-20201231.htm
  60. In re Chesapeake Energy Corp., No. 21-20323 (5th Cir. June 8, 2023), Part I.D. https://www.ca5.uscourts.gov/opinions/pub/21/21-20323-CV0.pdf
  61. In re Chesapeake Energy Corp., No. 21-20323 (5th Cir. June 8, 2023), Part I.E. https://www.ca5.uscourts.gov/opinions/pub/21/21-20323-CV0.pdf
  62. In re Chesapeake Energy Corp., No. 21-20323 (5th Cir. June 8, 2023), Part III. https://www.ca5.uscourts.gov/opinions/pub/21/21-20323-CV0.pdf
  63. Settlement Agreement, In re Chesapeake Energy Corp., No. 20-33233 (Bankr. S.D. Tex.), Dkt. 3175-2 (filed Mar. 5, 2021), paras. 3.5.1–3.5.2; PA Office of Attorney General, “Chesapeake Energy Settlement FAQs” and press release “AG Shapiro, Chesapeake Energy Reach Settlement Amid Bankruptcy” (Mar. 8, 2021). https://web.archive.org/web/20210311051742/https://www.attorneygeneral.gov/chesapeake/
  64. Settlement Agreement, In re Chesapeake Energy Corp., No. 20-33233 (Bankr. S.D. Tex.), Dkt. 3175-2 (filed Mar. 5, 2021), paras. 2.7, 3.1-3.2; PA Office of Attorney General press release, Mar. 8, 2021. https://web.archive.org/web/20211027233847/https://www.attorneygeneral.gov/taking-action/chesapeake-energy/ag-shapiro-chesapeake-energy-reach-settlement-amid-bankruptcy/
  65. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section613A&num=0&edition=prelim
  66. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4(3), citing Methvin v. Comm’r, T.C. Memo 2015-81, aff’d 653 Fed. Appx. 616 (10th Cir. 2016). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  67. IRC § 512(b)(2). https://www.law.cornell.edu/uscode/text/26/512
  68. IRC § 512(b)(4). https://www.law.cornell.edu/uscode/text/26/512
  69. Rev. Rul. 83-46, 1983-1 C.B. 16; IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.1(7). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  70. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  71. Royale Energy, Inc., Form 10-K FY2020, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/1694617/000118518521000424/ex_237057.htm
  72. Tex. Nat. Res. Code § 91.404(a)–(b). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.404
  73. Tex. Prop. Code § 72.101(a). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.72.htm#72.101
  74. Tex. Prop. Code § 72.101(b)(1). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.72.htm#72.101
  75. Tex. Prop. Code § 74.507 (Assistance of Claimant; Fee for Recovery). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.74.htm
  76. Tex. Prop. Code § 74.507(a) (Assistance of Claimant; Fee for Recovery). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.74.htm
  77. Texas State Securities Board, News Release “North Texas Company Ordered to Stop Fraudulent Offering of Oil Royalty Rights” (Mar. 26, 2015); Emergency Cease and Desist Order No. ENF-15-CDO-1738 (Mar. 25, 2015). https://www.ssb.texas.gov/news-publications/north-texas-company-ordered-stop-fraudulent-offering-oil-royalty-rights
  78. Texas State Securities Board, “Judge Orders $29M in Restitution in Oil and Gas Fraud Case.” https://ssb.texas.gov/news-publications/judge-orders-29m-restitution-oil-and-gas-fraud-case

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Chapter 11 Land banking

52 notes

  1. 30 U.S.C. § 226(b)(1)(B) and 226(d), as amended by Pub. L. 117-169, § 50262(b)–(c); see 2022 amendment notes. https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title30-section226&num=0&edition=prelim
  2. Texas General Land Office, Tabulation of Bids, Tuesday, May 12, 2026, tract MGL #34 (H&T C RY CO Survey, Ward County). https://www.glo.texas.gov/sites/default/files/documents/energy/past-bid-sales/2026-sealed-bid-salespast-bid-sales/may-2026-tabulation-of-bids.pdf
  3. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.C.8 (Top Leasing). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  4. Treas. Reg. § 1.612-3(c)(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  5. CSR Leasehold III, LP, SEC Form D, filed June 4, 2026. https://www.sec.gov/Archives/edgar/data/2136363/000213636326000001/primary_doc.xml
  6. Landbank III, LP, SEC Form D, filed May 4, 2026. https://www.sec.gov/Archives/edgar/data/2131987/000213198726000001/primary_doc.xml
  7. Renewal Oil & Gas Lease between Westland Development Co., Inc. and Tecton Energy, LLC (Bernalillo County, NM), Sept. 17, 2006, Exhibit 6.5 to Atrisco Oil & Gas LLC Form 10-SB12G. https://www.sec.gov/Archives/edgar/data/1376992/000119312506204481/dex9965.htm
  8. XOG Operating, LLC and Geronimo Holding Corp. v. Chesapeake Exploration L.P., No. 15-0935, slip op. (Tex. Apr. 13, 2018). https://www.txcourts.gov/media/1441369/150935.pdf
  9. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.8. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  10. Altman v. Blake, 712 S.W.2d 117, 118 (Tex. 1986). https://law.justia.com/cases/texas/supreme-court/1986/c-5143-0.html
  11. Treas. Reg. § 1.612-3(c)(1)–(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  12. Black Stone Minerals, L.P., Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/1621434/000162143426000018/bsm-20251231.htm
  13. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  14. Petrohawk Energy Corp., Form 8-K filed Nov. 4, 2009, Exhibit 99.1, press release “Petrohawk Announces Third Quarter 2009 Financial and Operating Results.” https://www.sec.gov/Archives/edgar/data/0001059324/000119312509224184/dex991.htm
  15. Louisiana Dept. of Natural Resources/DCE press release, “September-October mineral lease sale nets $43.5 million.” https://www.dce.louisiana.gov/news/september-october-mineral-lease-sale-nets-435-million
  16. Petrohawk Energy Corp./BHP Billiton joint news release, Exhibit 99.1 to Petrohawk Form 8-K. https://www.sec.gov/Archives/edgar/data/0001059324/000110465911039793/a11-18972_2ex99d1.htm
  17. 17 C.F.R. § 210.4-10(a)(22). https://www.law.cornell.edu/cfr/text/17/210.4-10
  18. Petrohawk Energy Corp., Form 8-K filed Aug. 24, 2011, Item 2.01. https://www.sec.gov/Archives/edgar/data/1059324/000110465911048555/a11-24900_18k.htm
  19. BHP Billiton, Offer to Purchase dated July 25, 2011 (Ex. (a)(1)(A) to Schedule TO), Section 6. https://www.sec.gov/Archives/edgar/data/1059324/000095012311067709/y92090exv99waw1wa.htm
  20. Louisiana DCE press release, “State Mineral Leasing takes another big leap.” https://www.dce.louisiana.gov/news/state-mineral-leasing-takes-another-big-leap
  21. Comstock Resources, Inc. news release, Exhibit 99.1 to Form 8-K, “Comstock Resources to Become Haynesville Basin Leader with Acquisition of Covey Park Energy.” https://www.sec.gov/Archives/edgar/data/23194/000095012319005920/crk-ex991_6.htm
  22. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  23. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  24. Chesapeake Energy Corp./Plains Exploration & Production Co. joint news release, Exhibit 99.1 to Chesapeake Form 8-K. https://www.sec.gov/Archives/edgar/data/0000895126/000089512608000299/chk07012008_ex991.htm
  25. Comstock Resources, Inc. Form 8-K, Exhibit 99 (Haynesville Shale acquisition announcement). https://www.sec.gov/Archives/edgar/data/0000023194/000156459018017027/crk-ex991_6.htm
  26. Comstock Resources, Inc. news release, Exhibit 99.1 to Form 8-K, “Announces Closing of Contribution Agreement with Jerry Jones.” https://www.sec.gov/Archives/edgar/data/0000023194/000119312518249597/d583492dex991.htm
  27. Comstock Resources, Inc. 2022 Annual Report to Shareholders (Form ARS filed with the SEC). https://www.sec.gov/Archives/edgar/data/23194/000002319423000014/crk-20221231annualreport.pdf
  28. Comstock Resources, Inc., 2023 Proxy Statement (DEF 14A), Outstanding Equity Awards at 2022 Fiscal Year-End, note (1). https://www.sec.gov/Archives/edgar/data/23194/000002319423000013/crk-20230423.htm
  29. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.C.9. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  30. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.2(9). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  31. Anderson v. Helvering, 310 U.S. 404, 409 (1940), as summarized in IRS Pub. 5652, Oil and Gas Industry Audit Technique Guide. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  32. IRC § 613A(d)(5); IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  33. Burnet v. Harmel, 287 U.S. 103 (1932). https://www.law.cornell.edu/supremecourt/text/287/103
  34. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  35. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4(3), citing Methvin v. Comm’r, T.C. Memo 2015-81, aff’d 653 Fed. Appx. 616 (10th Cir. 2016). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  36. Treas. Reg. § 1.165-2(a). https://www.law.cornell.edu/cfr/text/26/1.165-2
  37. Rev. Rul. 2004-58 (citing Treas. Reg. § 1.165-1(b) and (d)(1) and 1.165-2(a)). https://www.irs.gov/pub/irs-drop/rr-04-58.pdf
  38. GMX Resources Inc. Form 10-K for fiscal year 2010. https://www.sec.gov/Archives/edgar/data/0001127342/000119312511062904/d10k.htm
  39. GMX Resources Inc. Form 10-K for fiscal year 2011. https://www.sec.gov/Archives/edgar/data/0001127342/000144530512000619/gmxr-12312011x10k.htm
  40. Chesapeake Energy Corp. Form 10-Q for the quarter ended September 30, 2009. https://www.sec.gov/Archives/edgar/data/895126/000119312509229377/d10q.htm
  41. GMX Resources Inc. Form 8-K announcing Chapter 11 filing. https://www.sec.gov/Archives/edgar/data/1127342/000112734213000021/gmxresources-8xk4x1x131.htm
  42. GMX Resources Inc., Form 8-K filed Jan. 28, 2014, Item 1.03. https://www.sec.gov/Archives/edgar/data/1127342/000112734214000008/form8-kplanconfirmationord.htm
  43. GMX Resources Inc., Form 8-K filed Feb. 6, 2014, Item 8.01. https://www.sec.gov/Archives/edgar/data/1127342/000112734214000010/form8-keffectivedate.htm
  44. Goodrich Petroleum Corp. news release, Exhibit 99.1 to Form 8-K. https://www.sec.gov/Archives/edgar/data/0000943861/000119312516543186/d159847dex991.htm
  45. Goodrich Petroleum Corp. Form 10-K for fiscal year 2016. https://www.sec.gov/Archives/edgar/data/943861/000094386117000002/gdp1231201610-k.htm
  46. EXCO Resources, Inc. Form 10-K for fiscal year 2015 (comparative disclosure). https://www.sec.gov/Archives/edgar/data/0000316300/000031630016000087/xco2015123110k.htm
  47. EXCO Resources, Inc. news release, Exhibit 99.1 to Form 8-K. https://www.sec.gov/Archives/edgar/data/0000316300/000119312518011684/d644828dex991.htm
  48. Chesapeake Energy Corp. news release, Exhibit 99.1 to Form 8-K, “Chesapeake Energy Corporation Commences Voluntary Chapter 11 Process.” https://www.sec.gov/Archives/edgar/data/895126/000110465920077745/tm2023599d1_ex99-1.htm
  49. Louisiana DNR/DCE press releases, “Partial state mineral leasing sale still brings strong collection” (Oct. 10, 2008) and “September-October mineral lease sale nets $43.5 million” (Oct. 15, 2008). https://www.dce.louisiana.gov/news/partial-state-mineral-leasing-sale-still-brings-strong-collection
  50. ProPetro Holding Corp. Form 10-K FY2020, Item 1A Risk Factors. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  51. ProPetro Holding Corp. Form 10-K FY2025, Item 1 (Business – Commodity Price and Other Economic Conditions); repeated in Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/1680247/000168024726000028/pump-20251231.htm
  52. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf

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Chapter 12 Farm-ins and farmouts

45 notes, 43 numbered in the book

  1. Farmout Agreement between Delta Oil & Gas, Inc. and MPG King City Project, L.P. (King City Prospect, Monterey County, CA), effective Sept. 7, 2012, § 3(a), Exhibit 10.1 to Delta Oil & Gas, Inc. (CIK 1166847) Form 10-Q for the quarter ended Sept. 30, 2012, filed Nov. 14, 2012. https://www.sec.gov/Archives/edgar/data/1166847/000111776812000452/exhibit101.htm
  2. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.8. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  3. Author’s illustration of working-interest and net-revenue-interest math.
  4. Farmout Agreement, King City Prospect (Delta Oil & Gas, Inc.), Exhibit 10.1 to Form 10-Q filed Nov. 14, 2012, s. 2(e). https://www.sec.gov/Archives/edgar/data/1166847/000111776812000452/exhibit101.htm
  5. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  6. Farmout Agreement between Delta Oil & Gas, Inc. and MPG King City Project, L.P., effective Sept. 7, 2012, § 3(b), Exhibit 10.1 to Delta Oil & Gas, Inc. (CIK 1166847) Form 10-Q for the quarter ended Sept. 30, 2012, filed Nov. 14, 2012. https://www.sec.gov/Archives/edgar/data/1166847/000111776812000452/exhibit101.htm
  7. Rev. Rul. 77-176, 1977-1 C.B. 77. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  8. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.1. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  9. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  10. Seismic Data Acquisition and Farm Out Agreement between National Gulf Production, Inc. and Trans Energy, Inc. (Trego County, KS), 2007, ¶ 3, Exhibit 10.2 to Trans Energy, Inc. Form 8-K filed Jan. 25, 2007. https://www.sec.gov/Archives/edgar/data/919721/000093173107000005/ex10-2.txt
  11. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  12. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  13. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.2; Treas. Reg. § 1.612-4(a). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  14. EP Energy Corporation, Form 8-K, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/0001584952/000158495217000004/exhibit991.htm
  15. Chesapeake Energy Corp./Plains Exploration & Production Co. joint news release, Exhibit 99.1 to Chesapeake Form 8-K. https://www.sec.gov/Archives/edgar/data/0000895126/000089512608000299/chk07012008_ex991.htm
  16. Plains Exploration & Production Co., Form 10-K for FY2009, Item 1 (Haynesville). https://www.sec.gov/Archives/edgar/data/891456/000119312510039749/d10k.htm
  17. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  18. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4(3), citing Methvin v. Comm’r, T.C. Memo 2015-81, aff’d 653 Fed. Appx. 616 (10th Cir. 2016). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  19. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  20. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  21. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  22. IRC § 465(c)(1)(D). https://www.law.cornell.edu/uscode/text/26/465
  23. Rev. Rul. 83-46, 1983-1 C.B. 16; IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.1(7). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  24. Palmer v. Bender, 287 U.S. 551, 558 (1933). https://www.law.cornell.edu/supremecourt/text/287/551
  25. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  26. XOG Operating, LLC and Geronimo Holding Corp. v. Chesapeake Exploration L.P., No. 15-0935, slip op. (Tex. Apr. 13, 2018). https://www.txcourts.gov/media/1441369/150935.pdf
  27. EnerJex Resources, Inc., Form 8-K (Item 2.01), Exhibit 10.1 (Purchase and Sale Agreement dated June 30, 2015 among EnerJex Kansas, Inc., Working Interest, LLC, Haas Petroleum, LLC, BAM Petroleum, LLC and MorMeg, LLC, restating Section 3.3(c) of the Joint Development Agreement), filed July 16, 2015, accession 0001144204-15-042885. https://www.sec.gov/Archives/edgar/data/8504/000114420415042885/v415530_ex10-1.htm
  28. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  29. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  30. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  31. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 1. https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  32. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 5. https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  33. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2013, Item 5. https://www.sec.gov/Archives/edgar/data/1487561/000156459014001157/ser28-10k_20131231.htm
  34. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2011, Item 5. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  35. Farmout Agreement, North Semitropic Prospect (Transco Oil & Gas, Inc., farmor), dated Feb. 1, 2008, paras. 4 and 6, Ex. 10.1 to PetroSouth Energy Corp. Form 8-K filed Feb. 12, 2008. https://www.sec.gov/Archives/edgar/data/1343601/000109690608000244/petro8k02012008ex10-1.htm
  36. Farmout Agreement, North Semitropic Prospect (Transco Oil & Gas, Inc., farmor; PetroSouth Energy Corp. and others, farmee), dated Feb. 1, 2008, para. 10, Ex. 10.1 to PetroSouth Energy Corp. Form 8-K filed Feb. 12, 2008. https://www.sec.gov/Archives/edgar/data/1343601/000109690608000244/petro8k02012008ex10-1.htm
  37. Participation Agreement between ENTEK GRB LLC (farmee) and New Frontier Energy, Inc. (farmor), dated Aug. 10, 2009, sec. 8.1, Ex. 10.1 to New Frontier Energy Form 8-K filed Aug. 21, 2009. https://www.sec.gov/Archives/edgar/data/1140586/000107997309000810/nef_8k-ex10x1.htm
  38. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  39. Derived from notes 14, 44, 45 (LINN Energy Form 8-K Ex. 99.2, July 2015; EP Energy Form 8-K Ex. 99.1, Jan. 26, 2017; Gastar Exploration Form 8-K Ex. 99.1, Oct. 2016). https://www.sec.gov/Archives/edgar/data/1431372/000156459016025951/gst-ex991_30.htm
  40. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  41. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. VII.D. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  42. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. VII.F. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  43. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.A.2. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  44. LINN Energy, LLC, Form 8-K, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/0001326428/000132642815000027/exhibit992drillco.htm
  45. Gastar Exploration Inc., Form 8-K, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/0001431372/000156459016025951/gst-ex991_30.htm

Notes 44 and 45 have no number in the book; other notes in this list cite them.

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Chapter 13 Working interests

62 notes

  1. USEIG Rocking Chair Joint Venture, SEC Form D, filed May 31, 2024. https://www.sec.gov/Archives/edgar/data/2025240/000202524024000001/primary_doc.xml
  2. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  3. Author’s illustration of working-interest and net-revenue-interest math.
  4. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  5. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  6. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  7. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.B. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  8. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  9. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  10. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2011, filed March 30, 2012. https://www.sec.gov/Archives/edgar/data/1353722/000119312512143635/d281779d10k.htm
  11. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.B.3. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  12. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  13. MCAP S-Federal 1A Joint Venture, SEC Form D, filed July 31, 2023. https://www.sec.gov/Archives/edgar/data/1987498/000198749823000001/primary_doc.xml
  14. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  15. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  16. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.A. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  17. IRS Publication 5652, Oil and Gas Audit Technique Guide, Glossary. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  18. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  19. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  20. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. VI.B.2(b)(i), as filed as Exhibit 10.46 to Beta Oil & Gas, Inc.’s Form 10-Q. https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  21. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  22. Synthesis of Art. VI.B.2(b)(i) figures in the same six filed JOAs listed in note 21, low end Rhino Resource Partners/Gulfport JOA (2012 10-Q Ex. 10.2), high end Mewbourne Energy Partners 09-A JOA (2010). https://www.sec.gov/Archives/edgar/data/1490630/000110465912076553/a12-20059_1ex10d2.htm
  23. Paxton Energy, Inc., Form SB-2 (filed Aug. 1, 2006), Exhibit 10.06, Participation Agreement with Bayshore Exploration L.L.C. dated Nov. 2005, SEC accession 0001038838-06-000605. https://www.sec.gov/Archives/edgar/data/1342643/000103883806000605/ex1006sb2.txt
  24. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  25. SEC v. W.J. Howey Co., 328 U.S. 293, 298–99 (1946). https://tile.loc.gov/storage-services/service/ll/usrep/usrep328/usrep328293/usrep328293.pdf
  26. Williamson v. Tucker, 645 F.2d 404, 422–24 (5th Cir. 1981). https://openjurist.org/645/f2d/404/williamson-v-g-tucker
  27. Williamson v. Tucker, 645 F.2d 404, 424 (5th Cir. 1981) (No. 79-1058). https://law.resource.org/pub/us/case/reporter/F2/645/645.F2d.404.79-1058.html
  28. SEC v. Shields, 744 F.3d 633 (10th Cir. 2014). https://www.govinfo.gov/content/pkg/USCOURTS-ca10-12-01438/pdf/USCOURTS-ca10-12-01438-0.pdf
  29. SEC v. Arcturus Corp., 928 F.3d 400 (5th Cir. 2019). https://www.ca5.uscourts.gov/opinions/pub/17/17-10503-CV1.pdf
  30. Treas. Reg. § 1.469-1T(e)(4)(ii). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  31. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2007, filed March 31, 2008 (accession 0001193125-08-070491). https://www.sec.gov/Archives/edgar/data/0001353722/000119312508070491/d10k.htm
  32. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2009, filed March 31, 2010 (accession 0001193125-10-072517). https://www.sec.gov/Archives/edgar/data/0001353722/000119312510072517/d10k.htm
  33. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2018, filed April 1, 2019 (accession 0001387131-19-002346). https://www.sec.gov/Archives/edgar/data/1353722/000138713119002346/mep06-10k_123118.htm
  34. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2012, filed April 1, 2013 (SEC CIK 0001491262, accession 0001387131-13-001086). https://www.sec.gov/Archives/edgar/data/0001491262/000138713113001086/mep10-10k_123112.htm
  35. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  36. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 7 (MD&A) and financial statements. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  37. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 5/statements of changes in partners’ capital. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  38. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2020, filed March 31, 2021 (accession 0001387131-21-004065). https://www.sec.gov/Archives/edgar/data/1491262/000138713121004065/mep10-10k_123120.htm
  39. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  40. U.S. Energy Information Administration, Henry Hub Natural Gas Spot Price (Dollars per Million Btu), Annual, series RNGWHHD, release date Sept. 30, 2026. https://www.eia.gov/dnav/ng/hist/rngwhhdA.htm
  41. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  42. 17 C.F.R. § 230.506(c). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  43. 17 C.F.R. § 230.506(b)(2)(i), as amended at 86 FR 3598 (Jan. 14, 2021). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  44. 17 C.F.R. § 230.501(a)(5). https://www.law.cornell.edu/cfr/text/17/230.501
  45. 17 C.F.R. § 230.501(a)(6). https://www.law.cornell.edu/cfr/text/17/230.501
  46. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  47. IRC § 465(c)(1)(D). https://irc.bloombergtax.com/public/uscode/doc/irc/section_465
  48. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  49. IRC § 465(a)(2). https://www.law.cornell.edu/uscode/text/26/465
  50. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  51. Treas. Reg. § 1.1254-1(a). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  52. Reef Oil & Gas Income & Development Fund III, L.P., Form 10-K for FY2010, filed April 18, 2011 (SEC CIK 0001411643, accession 0001104659-11-020439). https://www.sec.gov/Archives/edgar/data/0001411643/000110465911020439/a11-9141_110k.htm
  53. Reef Global Energy VII, L.P., Form 10-K for FY2013, filed March 27, 2014 (SEC CIK 0001344530, accession 0001104659-14-023319). https://www.sec.gov/Archives/edgar/data/0001344530/000110465914023319/a14-2963_110k.htm
  54. Reef Global Energy VII, L.P., Form 10-K for FY2013, filed March 27, 2014, Item 6 Selected Financial Data. https://www.sec.gov/Archives/edgar/data/0001344530/000110465914023319/a14-2963_110k.htm
  55. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013, accession 0001047469-13-009122. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  56. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  57. Tex. Prop. Code § 56.021(a). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  58. Tex. Prop. Code § 56.003. https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  59. Okla. Stat. tit. 42, § 144. https://oksenate.gov/sites/default/files/2022-05/os42.pdf
  60. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  61. U.S. Attorney’s Office, Northern District of Texas, “So-Called ‘Frack Master’ Sentenced to 15 Years in Federal Prison” (Sept. 29, 2021). https://www.justice.gov/usao-ndtx/pr/so-called-frack-master-sentenced-15-years-federal-prison
  62. 15 U.S.C. § 78c(a)(4)(A) (definition); 15 U.S.C. § 78o(a)(1) (registration requirement). https://www.law.cornell.edu/uscode/text/15/78c

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Chapter 14 Drilling programs and limited partnerships

71 notes, 67 numbered in the book

  1. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Item 8, Notes to Financial Statements, Note 3 – Participation in Revenues and Costs. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  2. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  3. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 7 (Program cost/revenue allocation table). https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  4. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  5. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  6. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  7. Author’s calculation from notes 6, 17, 48, 68, 69, 70, 71. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  8. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 5. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  9. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  10. 2025 Dobie Ranch Drilling Program, L.P., SEC Form D, filed May 30, 2025. https://www.sec.gov/Archives/edgar/data/2070140/000207014025000001/primary_doc.xml
  11. 17 C.F.R. § 230.501(a)(5). https://www.law.cornell.edu/cfr/text/17/230.501
  12. 17 C.F.R. § 230.501(a)(6). https://www.law.cornell.edu/cfr/text/17/230.501
  13. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  14. IRS Pub. 925 (2025), “Activities That Aren’t Passive Activities” item 2. https://www.irs.gov/pub/irs-pdf/p925.pdf
  15. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.B.3. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  16. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.B.2. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  17. SEC EDGAR: Atlas Resources Public #19-2010 Program, Form S-1. https://www.sec.gov/Archives/edgar/data/1479590/000114420410009651/v174793_s1.htm
  18. Mewbourne Energy Partners 03-A, L.P., Form 10-K for FY2014, filed March 31, 2015, Item 1 (SEC CIK 0001170797, accession 0001387131-15-001094). https://www.sec.gov/Archives/edgar/data/1170797/000138713115001094/mep03-10k_123114.htm
  19. Mewbourne Energy Partners 04-A, L.P., Form 10-K for FY2013, filed March 31, 2014, Item 1 (SEC CIK 0001282400, accession 0001387131-14-001168). https://www.sec.gov/Archives/edgar/data/1282400/000138713114001168/mep04-10k_123113.htm
  20. Reef Global Energy IV, L.P., Form 10-K for FY2006, filed April 17, 2007 (SEC CIK 0001303804, accession 0001104659-07-028837). https://www.sec.gov/Archives/edgar/data/1303804/000110465907028837/a07-6053_210k.htm
  21. Atlas Resources Public #18-2009 (B) L.P., Prospectus (Form 424B3) filed Oct. 27, 2008, “Conversion from Investor General Partner to Limited Partner” (SEC accession 0001144204-08-059479). https://www.sec.gov/Archives/edgar/data/1432985/000114420408059479/v129662_424b3.htm
  22. IRC § 469(c)(3)(B). https://www.law.cornell.edu/uscode/text/26/469
  23. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 7 (cost-sharing table). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  24. PDC 2004–2006 Drilling Program, Form 424B3. https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  25. NASAA, Statement of Policy: Registration of Oil and Gas Programs (adopted Sept. 22, 1976, as amended through May 6, 2012); see also Iowa Admin. Code r. 191-50.66. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  26. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.1(a). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  27. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Item 1. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  28. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Item 8, Note 3 – Participation in Revenues and Costs, footnote (1); Item 13. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  29. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Note 8. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  30. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.A.1. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  31. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 5. https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  32. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 2. https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  33. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  34. USEDC 2025 Drilling Fund 2 LP, SEC Form D/A, filed July 30, 2025. https://www.sec.gov/Archives/edgar/data/2057777/000205777725000015/primary_doc.xml
  35. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2018, filed April 1, 2019 (accession 0001387131-19-002346). https://www.sec.gov/Archives/edgar/data/1353722/000138713119002346/mep06-10k_123118.htm
  36. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  37. Atlas Resource Partners, L.P., Disclosure Statement (Exhibit 99.1 to Form 8-K), filed July 25, 2016 (SEC CIK 0001532750, accession 0001193125-16-656046). https://www.sec.gov/Archives/edgar/data/0001532750/000119312516656046/d126536dex991.htm
  38. Atlas Resource Partners, L.P., Form 10-K for FY2015, filed March 7, 2016 (accession 0001564590-16-014066). https://www.sec.gov/Archives/edgar/data/1532750/000156459016014066/arp-10k_20151231.htm
  39. Author’s calculation from notes 6, 17, 68, 69, 70. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  40. Treas. Reg. § 1.469-1T(e)(4)(ii). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  41. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” Table 1 & accompanying text, p. 24. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  42. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” Table 2, p. 25. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  43. FINRA, Rule 2111 (Suitability) FAQ, Q1.1. https://www.finra.org/rules-guidance/key-topics/suitability/faq
  44. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2012, filed April 1, 2013 (SEC CIK 0001491262, accession 0001387131-13-001086). https://www.sec.gov/Archives/edgar/data/0001491262/000138713113001086/mep10-10k_123112.htm
  45. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2020, filed March 31, 2021 (accession 0001387131-21-004065). https://www.sec.gov/Archives/edgar/data/1491262/000138713121004065/mep10-10k_123120.htm
  46. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2011, filed March 30, 2012 (SEC CIK 0001353722, accession 0001193125-12-143635). https://www.sec.gov/Archives/edgar/data/1353722/000119312512143635/d281779d10k.htm
  47. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 5/statements of changes in partners’ capital. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  48. IRC § 263(c). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim
  49. Treas. Reg. § 1.612-4(d). https://www.law.cornell.edu/cfr/text/26/1.612-4
  50. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  51. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  52. IRC § 465(a)(2). https://www.law.cornell.edu/uscode/text/26/465
  53. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  54. IRC § 751(c). https://www.law.cornell.edu/uscode/text/26/751
  55. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013, accession 0001047469-13-009122. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  56. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 7 (MD&A) and financial statements. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  57. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Statements of Operations. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  58. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2016, Item 5 (Market for Registrant’s Units). https://www.sec.gov/Archives/edgar/data/1487561/000156459017006645/ser28-10k_20161231.htm
  59. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  60. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 1 (Business) and Note 1 to Financial Statements. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  61. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.A.2. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  62. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.7. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  63. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.A. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  64. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section J (Penalty Considerations). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  65. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  66. Securities Exchange Act of 1934 § 15(a)(1), 15 U.S.C. § 78o(a)(1). https://www.law.cornell.edu/uscode/text/15/78o
  67. In the Matter of Pangean Energy, LLC and Pangean Energy Bakken Shale #1H, LLC, Okla. Dep’t of Securities, ODS File 14-025, Agreed Order to Cease and Desist. https://securities.ok.gov/Enforcement/Orders/PDF/Agmt-AgreedOrder_PangeanEnergy_14-025.pdf
  68. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  69. IRC § 465(b)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  70. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  71. Pub. L. 119-21, § 70301(b)(1), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm

Notes 68 to 71 have no number in the book; other notes in this list cite them.

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Chapter 15 Non-operated working interests

76 notes, 70 numbered in the book

  1. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  2. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  3. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  4. Northern Oil and Gas, Inc., Form 10-K for FY2025, filed Feb. 26, 2026, accession 0001104485-26-000008. https://www.sec.gov/Archives/edgar/data/1104485/000110448526000008/nog-20251231.htm
  5. Northern Oil and Gas, Inc., Form 10-K for fiscal year 2024. https://www.sec.gov/Archives/edgar/data/1104485/000110448525000039/nog-20241231.htm
  6. MCAP-Madison 2 Joint Venture, SEC Form D/A, filed July 31, 2023. https://www.sec.gov/Archives/edgar/data/1958750/000198749823000003/primary_doc.xml
  7. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  8. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  9. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  10. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  11. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.A. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  12. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036, Art. VI.B.1 (Proposed Operations). https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  13. Royale Energy, Inc., Form 10-K FY2020, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/1694617/000118518521000424/ex_237057.htm
  14. COPAS, Overhead Adjustment Factors / Economic Factors page. https://copas.org/resources/economic-factors/
  15. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  16. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  17. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Note 8. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  18. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  19. IRS Publication 5652, Oil and Gas Audit Technique Guide, Glossary. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  20. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  21. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. VI.B.2(b)(i), as filed as Exhibit 10.46 to Beta Oil & Gas, Inc.’s Form 10-Q. https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  22. Synthesis of Art. VI.B.2(b)(i) figures in the same six filed JOAs listed in note 18, low end Rhino Resource Partners/Gulfport JOA (2012 10-Q Ex. 10.2), high end Mewbourne Energy Partners 09-A JOA (2010). https://www.sec.gov/Archives/edgar/data/1490630/000110465912076553/a12-20059_1ex10d2.htm
  23. Northern Oil and Gas, Inc., Form 10-K for fiscal year 2016. https://www.sec.gov/Archives/edgar/data/0001104485/000110448517000014/nog-20161231x10k.htm
  24. Northern Oil and Gas, Inc., Form 10-K for fiscal year 2016, Item 5. https://www.sec.gov/Archives/edgar/data/0001104485/000110448517000014/nog-20161231x10k.htm
  25. Vitesse Energy, Inc., Form 10-K for FY2025, filed March 2, 2026, accession 0001944558-26-000009. https://www.sec.gov/Archives/edgar/data/1944558/000194455826000009/vitesse-20251231.htm
  26. Author’s illustration of working-interest and net-revenue-interest math.
  27. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1 (Cawley, Gillespie & Associates, Inc. reserve report dated January 21, 2020). https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  28. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  29. IRC § 263(c); IRS Oil and Gas Audit Technique Guide, Pub. 5652. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  30. Author’s calculation from notes 71, 72. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  31. IRC § 465(c)(1)(D). https://irc.bloombergtax.com/public/uscode/doc/irc/section_465
  32. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  33. IRC § 465(a)(2). https://www.law.cornell.edu/uscode/text/26/465
  34. Treas. Reg. § 1.469-1T(e)(4)(ii). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  35. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.2. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  36. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  37. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4(3), citing Methvin v. Comm’r, T.C. Memo 2015-81, aff’d 653 Fed. Appx. 616 (10th Cir. 2016). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  38. SEC Litigation Release No. 25284. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25284
  39. SEC, Whistleblower Program Notice of Covered Action 2025-005, SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://www.sec.gov/enforcement-litigation/whistleblower-program/notice-covered-actions/award-claim-2025-005
  40. Final Judgment as to Defendant Manjit Singh “Roger” Sahota, ECF No. 769 (filed July 25, 2025), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://www.sec.gov/files/judg21-cv-01310sahotamanjit.pdf
  41. Final Judgment as to the Heartland Receivership Defendants and Relief Defendants, ECF No. 699 (filed March 3, 2025), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/80b28941-801f-4621-a635-565a31955bb4/ECF%20699%20-%20Final%20Judgment%20as%20to%20the%20Heartland%20R.pdf
  42. Final Judgment as to Defendant John Muratore, ECF No. 593 (filed Sept. 24, 2024), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/80b7a781-c3b3-4936-b584-efdc4a9b95af/SEC%20-%20ECF%20593%20-%20FINAL%20JUDGMENT%20AS%20TO%20DEFENDANT.pdf
  43. Final Judgment as to Defendant Thomas Brad Pearsey, ECF No. 595 (filed Sept. 24, 2024), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/8ce6b2fc-8bac-4c0d-8f1b-f77f8a3e67eb/SEC%20-%20ECF%20595%20-%20FINAL%20JUDGMENT%20AS%20TO%20DEFENDANT.pdf
  44. Final Judgment as to Defendant James Ikey, ECF No. 702 (filed March 3, 2025), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/271c6c2c-5ee6-432a-8c99-f0e289dd0db0/ECF%20702%20-%20Final%20Judgment%20as%20to%20Defendant%20James.pdf
  45. Final Judgment as to Defendant Rustin Brunson, ECF No. 697 (filed March 3, 2025), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/8ac8da40-bfd8-407b-b890-24c03cf0cfa7/ECF%20697%20-%20Final%20Judgment%20as%20to%20Defendant%20Rusti.pdf
  46. Final Judgment as to Defendant Alternative Office Solutions, LLC, ECF No. 700 (filed March 3, 2025), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/cde054e1-1184-466c-85b9-42efc3c906c7/ECF%20700%20-%20Final%20Judgment%20as%20to%20Defendant%20Alter.pdf
  47. Final Judgment as to the Sahota Receivership Defendants and Relief Defendants, ECF No. 705 (filed March 3, 2025), SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/fb9f947b-f0a0-4db1-89d8-0c7960ead10d/ECF%20705%20-%20Final%20Judgment%20as%20to%20the%20Sahota%20Rece.pdf
  48. Receiver’s Eleventh Quarterly Report, ECF No. 571 (filed July 16, 2024), para. 14, SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/ECF%20571%20-%20Receiver_s%20Eleventh%20Quarterly%20Report.pdf
  49. Amended Receiver’s Thirteenth Quarterly Report, ECF No. 668 (filed Jan. 27, 2025), paras. 2–4, SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/2188dcc4-ef14-4cc1-a438-919afdd8bc55/ECF%20668%20-%20Amended%20Receiver_s%20Thirteenth%20Quarte.pdf
  50. Receiver’s Nineteenth Quarterly Report, ECF No. 838 (filed July 29, 2026), para. 10, SEC v. The Heartland Group Ventures, LLC, et al., No. 4:21-cv-01310 (N.D. Tex.). https://img1.wsimg.com/blobby/go/210a2611-c745-40c6-8184-f857bcc42bf2/downloads/bc1e321e-c5bb-4020-9f00-ab00c8482dda/ECF%20838%20-%20Receiver_s%20Nineteenth%20Quarterly%20Repo.pdf
  51. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  52. Railroad Commission of Texas, Production Data Query System (PDQ) FAQs. https://www.rrc.texas.gov/about-us/faqs/oil-gas-faq/production-data-query-system-faqs/
  53. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  54. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 5/statements of changes in partners’ capital. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  55. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  56. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.B. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  57. Tex. Prop. Code § 56.001(1). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  58. Tex. Prop. Code § 56.021(a). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  59. Okla. Stat. tit. 42, § 144. https://oksenate.gov/sites/default/files/2022-05/os42.pdf
  60. LINN Energy, LLC, Form 10-K for FY2015, filed March 15, 2016 (SEC CIK 0001326428, accession 0001326428-16-000071). https://www.sec.gov/Archives/edgar/data/0001326428/000132642816000071/linnform10-k2015.htm
  61. LINN Energy, Inc., Form 10-K for FY2016, filed March 23, 2017 (accession 0001326428-17-000008). https://www.sec.gov/Archives/edgar/data/0001326428/000132642817000008/linnform10-k2016.htm
  62. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036, Art. V.B.3 (Effect of Bankruptcy). https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  63. 11 U.S.C. § 365(a). https://www.law.cornell.edu/uscode/text/11/365
  64. 11 U.S.C. § 362(a)(6). https://www.law.cornell.edu/uscode/text/11/362
  65. Securities Exchange Act of 1934 § 15(a)(1), 15 U.S.C. § 78o(a)(1). https://www.law.cornell.edu/uscode/text/15/78o
  66. Securities Exchange Act of 1934 § 3(a)(4)(A), 15 U.S.C. § 78c(a)(4)(A). https://www.law.cornell.edu/uscode/text/15/78c
  67. Tex. Nat. Res. Code § 91.104(a). https://texas.public.law/statutes/tex._nat._resources_code_section_91.104
  68. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do
  69. EP Energy Corporation, press release, Exhibit 99.1 to Form 8-K, filed Jan. 26, 2017. https://www.sec.gov/Archives/edgar/data/1555082/000158495217000004/exhibit991.htm
  70. Diamondback Energy, Inc., Form 10-K for FY2020, filed Feb. 25, 2021. https://www.sec.gov/Archives/edgar/data/1539838/000153983821000015/fang-20201231.htm
  71. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  72. Author’s calculation from notes 71, 73, 74, 75, 76. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  73. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  74. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  75. IRC § 57(a)(2)(E)(i). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim
  76. IRC § 57(a)(2)(E)(ii). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section57&num=0&edition=prelim

Notes 71 to 76 have no number in the book; other notes in this list cite them.

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Chapter 16 DrillCos

43 notes

  1. EP Energy Corporation, Form 8-K, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/0001584952/000158495217000004/exhibit991.htm
  2. LINN Energy, LLC, Form 8-K, Exhibit 99.2 (July 6, 2015 press release). https://www.sec.gov/Archives/edgar/data/0001326428/000132642815000027/exhibit992drillco.htm
  3. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  4. Invito DrillCo 2023, LP, SEC Form D, filed March 28, 2023. https://www.sec.gov/Archives/edgar/data/1971370/000197137023000001/primary_doc.xml
  5. Gastar Exploration Inc., Form 8-K, Exhibit 99.1 (Oct. 2016). https://www.sec.gov/Archives/edgar/data/0001431372/000156459016025951/gst-ex991_30.htm
  6. Derived from notes 1, 2, 5 (LINN Energy Form 8-K Ex. 99.2, July 2015; EP Energy Form 8-K Ex. 99.1, Jan. 26, 2017; Gastar Exploration Form 8-K Ex. 99.1, Oct. 2016). https://www.sec.gov/Archives/edgar/data/1431372/000156459016025951/gst-ex991_30.htm
  7. LINN Energy, LLC, Form 10-K for FY2015, filed March 15, 2016, Item 1A (SEC CIK 0001326428, accession 0001326428-16-000071). https://www.sec.gov/Archives/edgar/data/0001326428/000132642816000071/linnform10-k2015.htm
  8. Gastar Exploration Inc., Form 10-K for FY2017, filed March 15, 2018 (SEC CIK 0001431372, accession 0001564590-18-005841). https://www.sec.gov/Archives/edgar/data/1431372/000156459018005841/gst-10k_20171231.htm
  9. Diamondback Energy, Inc., Form 10-K for FY2020, filed Feb. 25, 2021. https://www.sec.gov/Archives/edgar/data/1539838/000153983821000015/fang-20201231.htm
  10. Diamondback Energy, Inc., Form 10-K for FY2022, filed Feb. 23, 2023 (accession 0001539838-23-000022). https://www.sec.gov/Archives/edgar/data/1539838/000153983823000022/fang-20221231.htm
  11. LINN Energy, LLC, Form 10-K for FY2015, filed March 15, 2016 (SEC CIK 0001326428, accession 0001326428-16-000071). https://www.sec.gov/Archives/edgar/data/0001326428/000132642816000071/linnform10-k2015.htm
  12. LINN Energy, LLC, Form 10-K for FY2015, Item 7 (Alliance with GSO Capital Partners). https://www.sec.gov/Archives/edgar/data/1326428/000132642816000071/linnform10-k2015.htm
  13. LINN Energy, Inc., Form 10-K for FY2016, filed March 23, 2017 (accession 0001326428-17-000008). https://www.sec.gov/Archives/edgar/data/0001326428/000132642817000008/linnform10-k2016.htm
  14. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  15. 17 C.F.R. § 230.506(c). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  16. 17 C.F.R. § 230.501(a)(5). https://www.law.cornell.edu/cfr/text/17/230.501
  17. 17 C.F.R. § 230.501(a)(6). https://www.law.cornell.edu/cfr/text/17/230.501
  18. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  19. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.4 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  20. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.6 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  21. FINRA, Rule 2111 (Suitability) FAQ, Q1.1. https://www.finra.org/rules-guidance/key-topics/suitability/faq
  22. FINRA Rule 2111, Supplementary Material .08 (Regulation Best Interest), FINRA Manual, eff. June 30, 2020. https://www.finra.org/rules-guidance/rulebooks/finra-rules/2111
  23. SEC, Small Entity Compliance Guide: Regulation Best Interest, Question 2 (retail customer scope). https://www.sec.gov/resources-small-businesses/small-business-compliance-guides/regulation-best-interest
  24. Diamondback Energy, Inc., Form 10-K for FY2020, filed Feb. 25, 2021, Note 11 (Debt), “Alliance with Obsidian Resources, L.L.C.” (SEC accession 0001539838-21-000015). https://www.sec.gov/Archives/edgar/data/1539838/000153983821000015/fang-20201231.htm
  25. Rev. Rul. 77-176, 1977-1 C.B. 77. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  26. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  27. IRC § 465(c)(1)(D). https://irc.bloombergtax.com/public/uscode/doc/irc/section_465
  28. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  29. IRS Publication 5652 (2-2023), Oil & Gas Audit Technique Guide, “Who Gets the Deduction,” I.4 Carried Interest, p. 97. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  30. IRC § 741. https://www.law.cornell.edu/uscode/text/26/741
  31. Gastar Exploration Inc., Form 10-K for FY2017, filed March 15, 2018, Item 1 (SEC accession 0001564590-18-005841). https://www.sec.gov/Archives/edgar/data/1431372/000156459018005841/gst-10k_20171231.htm
  32. Gastar Exploration Inc., Form 8-K, Item 1.03, filed Nov. 1, 2018 (SEC accession 0001564590-18-025960). https://www.sec.gov/Archives/edgar/data/1431372/000156459018025960/gst-8k_20181031.htm
  33. Gastar Exploration Inc., Form 8-K, filed Jan. 22, 2019 (SEC accession 0001564590-19-000902). https://www.sec.gov/Archives/edgar/data/1431372/000156459019000902/gst-8k_20190118.htm
  34. EP Energy Corporation, Form 10-K for FY2019, Note 1A (Joint Venture). https://www.sec.gov/Archives/edgar/data/1584952/000158495220000005/epenergycorp-1231201910k.htm
  35. EP Energy Corporation, Form 8-K, filed March 19, 2020 (accession 0001104659-20-035623). https://www.sec.gov/Archives/edgar/data/1555082/000110465920035623/tm2011925d4_8k.htm
  36. EP Energy Corporation, Form 10-K for FY2019, Item 10 (Directors, Executive Officers and Corporate Governance). https://www.sec.gov/Archives/edgar/data/1584952/000158495220000005/epenergycorp-1231201910k.htm
  37. EP Energy Corporation, Form 10-K for FY2019, Supplemental Oil and Natural Gas Operations (Unaudited). https://www.sec.gov/Archives/edgar/data/1584952/000158495220000005/epenergycorp-1231201910k.htm
  38. 17 C.F.R. § 210.4-10(a)(31). https://www.law.cornell.edu/cfr/text/17/210.4-10
  39. EP Energy Corporation, Disclosure Statement, Exhibit 99.2 to Form 8-K, filed Nov. 19, 2019 (accession 0001104659-19-065250). https://www.sec.gov/Archives/edgar/data/1555082/000110465919065250/a19-22534_2ex99d2.htm
  40. EP Energy Corporation et al., Modified Disclosure Statement for the Joint Chapter 11 Plan, Defined Terms. https://www.sec.gov/Archives/edgar/data/1555082/000110465920002697/a19-28375_2ex99d2.htm
  41. EP Energy Corporation, Form 8-K, filed April 24, 2020 (accession 0001104659-20-050522). https://www.sec.gov/Archives/edgar/data/1555082/000110465920050522/tm2011925-6_8k.htm
  42. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  43. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf

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Chapter 17 Buying producing wells

69 notes

  1. Ring Energy, Inc. Form 10-K FY2025, Item 2 Properties. https://www.sec.gov/Archives/edgar/data/1384195/000138419526000050/rei-20251231.htm
  2. 17 C.F.R. § 210.4-10(a)(6). https://www.law.cornell.edu/cfr/text/17/210.4-10
  3. RRC Oil & Gas Fees and Surcharges schedule. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/oil-gas-fees-surcharges/
  4. RRC, Form P-5 Financial Assurance Instructions. https://rrc.texas.gov/media/ev5hwofo/p-5-financial-assurance-instructions.pdf
  5. Treas. Reg. § 1.613A-3(i)(2)(i); Pub. L. 101-508, § 11521(a) (repealing former IRC § 613A(c)(9), (10)). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR83f3d9df3aa3566/section-1.613A-3
  6. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  7. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  8. Panex Acquisition Fund #1, LLC, SEC Form D, filed Oct. 28, 2024. https://www.sec.gov/Archives/edgar/data/2042675/000204267524000002/primary_doc.xml
  9. 16 Tex. Admin. Code § 3.78(g)(1)(B). https://law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-78
  10. EON Resources Inc., Form 8-K, Exhibit 99.1 (investor presentation), filed June 26, 2025, accession 0001213900-25-058050. https://www.sec.gov/Archives/edgar/data/1842556/000121390025058050/ea024703401ex99-1_eonres.htm
  11. 17 C.F.R. § 210.4-10(a)(22). https://www.law.cornell.edu/cfr/text/17/210.4-10
  12. 17 C.F.R. § 210.4-10(a)(24). https://www.law.cornell.edu/cfr/text/17/210.4-10
  13. 17 C.F.R. § 210.4-10(a)(31). https://www.law.cornell.edu/cfr/text/17/210.4-10
  14. Ring Energy, Inc. Form 10-K FY2025, Glossary of Terms. https://www.sec.gov/Archives/edgar/data/1384195/000138419526000050/rei-20251231.htm
  15. 17 C.F.R. § 229.10(e)(1)(i). https://www.ecfr.gov/current/title-17/chapter-II/part-229/subpart-229.100/section-229.10
  16. Tex. Nat. Res. Code § 91.104(a). https://texas.public.law/statutes/tex._nat._resources_code_section_91.104
  17. 43 C.F.R. § 3104.1 (current), as amended at 90 Fed. Reg. 59069 (Dec. 18, 2025). https://www.ecfr.gov/current/title-43/subtitle-B/chapter-II/subchapter-C/part-3100/subpart-3104/section-3104.1
  18. Author’s illustration of working-interest and net-revenue-interest math.
  19. Northern Oil and Gas, Inc., Form 10-K for FY2025, filed Feb. 26, 2026. https://www.sec.gov/Archives/edgar/data/1104485/000110448526000008/nog-20251231.htm
  20. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  21. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  22. Diversified Energy Co., Form DEF 14A (2026 proxy statement). https://www.sec.gov/Archives/edgar/data/1922446/000114036126010918/edge20061802x1_def14a.htm
  23. Diversified Energy Company PLC, Form 20-F for fiscal year 2024. https://www.sec.gov/Archives/edgar/data/1922446/000192244625000003/dec-20241231.htm
  24. Office of the Governor of West Virginia, press release on the Mountain State Plugging Fund. https://governor.wv.gov/article/west-virginia-and-diversified-energy-launch-first-its-kind-well-plugging-fund
  25. Diversified Energy Co., Form 10-K for fiscal year 2025, Stock Performance Graph. https://www.sec.gov/Archives/edgar/data/1922446/000192244626000020/dec-20251231.htm
  26. U.S. Department of the Interior, Orphaned Wells Program Office, Orphaned Wells Program FY 2025 Annual Report to Congress. https://www.doi.gov/sites/default/files/documents/2025-11/fy-2025-orphaned-wells-congressional-report.pdf
  27. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025), p. 7. https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  28. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  29. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  30. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  31. IRC § 469(c)(3)(B). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  32. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  33. OCC Comptroller’s Handbook, Oil and Gas Exploration and Production Lending, Version 2.2 (Oct. 15, 2018), p. 24. https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/oil-gas-exploration-prod-lending/pub-ch-oil-and-gas.pdf
  34. SandRidge Energy, Inc., year-end 2022 financial and operating results press release. https://www.prnewswire.com/news-releases/sandridge-energy-inc-announces-financial-and-operating-results-for-the-quarter-and-year-ended-december-31-2022-provides-conference-call-information-and-full-year-2023-guidance-301773438.html
  35. U.S. Energy Corp., Form 8-K, Exhibit 99.1, press release dated June 30, 2022. https://www.sec.gov/Archives/edgar/data/101594/000149315222018168/ex99-1.htm
  36. U.S. Energy Corp., Form 10-Q for the quarter ended September 30, 2022, Note 2 (Acquisitions). https://www.sec.gov/Archives/edgar/data/101594/000149315222031398/form10-q.htm
  37. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1 (Cawley, Gillespie & Associates, Inc. reserve report dated January 21, 2020). https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  38. Tex. Tax Code § 202.052(a). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm#202.052
  39. Crescent Energy Company / Independence Energy, merger completion press release. https://www.businesswire.com/news/home/20211207006133/en/Independence-Energy-and-Contango-Oil-and-Gas-Company-Complete-Merger-Forming-Crescent-Energy-Company
  40. Crescent Energy Company, Form 8-K exhibit, December 2021. https://www.sec.gov/Archives/edgar/data/1866175/000119312521363101/d232617dex991.htm
  41. SandRidge Energy, Inc., Form 8-K filed May 16, 2016 (petition) and Form 8-K filed September 14, 2016 (confirmation order). https://www.sec.gov/Archives/edgar/data/1349436/000119312516709633/d258066d8k.htm
  42. SandRidge Energy, Inc., Form 8-K, October 4, 2016. https://www.sec.gov/Archives/edgar/data/0001349436/000119312516733811/d252000dex991.htm
  43. EIA, Well Distribution Report. https://www.eia.gov/petroleum/wells/
  44. U.S. Energy Information Administration, Today in Energy, “Oil stripper wells accounted for over 16% of U.S. oil production in 2009.” https://www.eia.gov/todayinenergy/detail.php?id=2270
  45. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  46. IRC § 613A(d)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  47. IRC § 613A(c)(3)(B). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  48. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.C.9; IRM 4.10.13.5. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  49. IRC § 168(k)(2)(A)(ii) and (k)(2)(E)(i). https://www.law.cornell.edu/uscode/text/26/168
  50. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  51. IRC § 465(c)(1)(D). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  52. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  53. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  54. Vanguard Natural Resources, LLC, Form 10-K for fiscal year 2016. https://www.sec.gov/Archives/edgar/data/0001384072/000138407217000044/vnr-20161231x10k.htm
  55. Vanguard Natural Resources, LLC, Form 8-K filed February 2, 2017 (Items 1.01/1.03/2.04) and Exhibit 99.1 press release. https://www.sec.gov/Archives/edgar/data/1384072/000138407217000035/form8-k020217.htm
  56. Vanguard Natural Resources, Inc., Form 8-K exhibit, April 2019. https://www.sec.gov/Archives/edgar/data/1384072/000138407219000021/ex991pressrelease2019bankr.htm
  57. 16 Tex. Admin. Code § 3.15(f)(2)(B)(i). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  58. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iii). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  59. 16 Tex. Admin. Code § 3.15(f)(2)(B)(viii). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  60. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iv)–(v). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  61. Tex. SB 1150, 89th Leg., R.S. (2025), amending Nat. Res. Code 89.023(b). https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01150F.htm
  62. OCC Comptroller’s Handbook, Oil and Gas Exploration and Production Lending, Version 2.2 (Oct. 15, 2018), p. 38. https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/oil-gas-exploration-prod-lending/pub-ch-oil-and-gas.pdf
  63. OCC Comptroller’s Handbook, Oil and Gas Exploration and Production Lending, Version 2.2 (Oct. 15, 2018), p. 36. https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/oil-gas-exploration-prod-lending/pub-ch-oil-and-gas.pdf
  64. Tex. Nat. Res. Code § 91.114(a)(1)–(2). https://texas.public.law/statutes/tex._nat._resources_code_section_91.114
  65. Tex. Nat. Res. Code § 91.114(d)(1)–(2). https://texas.public.law/statutes/tex._nat._resources_code_section_91.114
  66. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  67. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 2 (Third Party Review of Reserves Estimate). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  68. Vanna Production III, LP, Form D, Item 15 (use-of-proceeds clarification). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  69. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do

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Chapter 18 Stripper wells, reactivations and workovers

55 notes

  1. EIA, Well Distribution Report. https://www.eia.gov/petroleum/wells/
  2. IRC § 613A(c)(6)(E). https://www.law.cornell.edu/uscode/text/26/613A
  3. Riley Exploration Permian, Inc. Form 8-K, Ex. 99.1 (Q2 2026 Earnings Release). https://www.sec.gov/Archives/edgar/data/1001614/000100161426000049/q22026earningsrelease.htm
  4. 16 Tex. Admin. Code § 3.15(f)(2)(B)(i). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  5. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  6. IRS, Oil & Gas Audit Technique Guide, Publication 5652 (rev. 2-24-2023), IDC discussion, paras. (7)–(8), p. 128. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  7. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  8. Rev. Proc. 2025-32 sec. 4.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  9. Tex. Tax Code § 202.056. https://texas.public.law/statutes/tex._tax_code_section_202.056
  10. GO ROG LLC, SEC Form D, filed Nov. 13, 2025. https://www.sec.gov/Archives/edgar/data/2093722/000209372225000004/primary_doc.xml
  11. Texlark Exploration Co Inc, SEC Form D, filed April 10, 2026. https://www.sec.gov/Archives/edgar/data/853789/000085378926000005/primary_doc.xml
  12. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  13. 17 C.F.R. § 210.4-10(a)(31). https://www.law.cornell.edu/cfr/text/17/210.4-10
  14. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  15. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  16. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iii). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  17. 16 Tex. Admin. Code § 3.15(f)(2)(B)(viii). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  18. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iv)–(v). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  19. Tex. SB 1150, 89th Leg., R.S. (2025), amending Nat. Res. Code 89.023(b). https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01150F.htm
  20. SandRidge Energy, Inc., Form 8-K, October 4, 2016. https://www.sec.gov/Archives/edgar/data/0001349436/000119312516733811/d252000dex991.htm
  21. SandRidge Energy, Inc., year-end 2022 financial and operating results press release. https://www.prnewswire.com/news-releases/sandridge-energy-inc-announces-financial-and-operating-results-for-the-quarter-and-year-ended-december-31-2022-provides-conference-call-information-and-full-year-2023-guidance-301773438.html
  22. SandRidge Energy, Inc., Form 8-K Exhibit 99.1, fourth-quarter and year-end 2021 results release, March 9, 2022, “Well Reactivation Program.” https://www.sec.gov/Archives/edgar/data/1349436/000162828022005593/sd12312021-ex991earningsre.htm
  23. SandRidge Energy, Inc., Form 8-K Exhibit 99.1, second-quarter 2021 results release, August 2021, “Well Reactivation Program.” https://www.sec.gov/Archives/edgar/data/1349436/000162828021016467/sd06302021-ex991earningsre.htm
  24. U.S. Energy Information Administration, Today in Energy, “Oil stripper wells accounted for over 16% of U.S. oil production in 2009.” https://www.eia.gov/todayinenergy/detail.php?id=2270
  25. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  26. IRC § 469(c)(3)(B). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  27. Author’s illustration of working-interest and net-revenue-interest math.
  28. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1 (Cawley, Gillespie & Associates, Inc. reserve report dated January 21, 2020). https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  29. Dallas Fed Energy Survey, Q1 2026 (2601), special questions on operating-expense breakeven. https://www.dallasfed.org/research/surveys/des/2026/2601
  30. Tex. Tax Code § 202.052(a)–(b). https://texas.public.law/statutes/tex._tax_code_section_202.052
  31. 68 O.S. § 1001(B)(1)–(2). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552911
  32. 68 O.S. § 1001(D)(5). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552911
  33. Railroad Commission of Texas, 2025 Oilfield Cleanup Program Annual Report. https://www.rrc.texas.gov/media/xgtpvwhf/2025-oilfield-cleanup-program-annual-report_final.pdf
  34. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  35. IRC § 613A(d)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  36. IRC § 613A(c)(6)(D). https://www.law.cornell.edu/uscode/text/26/613A
  37. IRC § 613A(c)(6)(C). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  38. IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  39. IRS Notice 2026-35, 2026-25 I.R.B. 1580 (2026 marginal-production percentage; 2025 reference price). https://www.irs.gov/irb/2026-25_irb
  40. IRC § 45I(c)(3)(A), as described in IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  41. IRC § 45I(b)(2)(A)–(C); IRS Notice 2026-46, 2026-35 I.R.B. 182 (2025 reference price $63.40); IRS Notice 2026-42, 2026-29 I.R.B. 41 (2026 inflation adjustment factor 1.6295). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section45I&num=0&edition=prelim
  42. IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  43. SEC Litigation Release No. 25284. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25284
  44. SEC v. The Heartland Group Ventures, LLC, No. 4:21-cv-01310 (N.D. Tex.), docket entries as posted by the court-appointed Receiver (Key Court Documents); SEC Litigation Release No. 25284 (Dec. 8, 2021). https://heartlandreceivership.com/key-court-documents
  45. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  46. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025), p. 7. https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  47. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  48. RRC, Form P-5 Financial Assurance Instructions. https://rrc.texas.gov/media/ev5hwofo/p-5-financial-assurance-instructions.pdf
  49. Railroad Commission of Texas, Oil & Gas Production Data Query (PDQ), home page. https://webapps.rrc.texas.gov/PDQ/home.do
  50. Oklahoma Corporation Commission, Oil and Gas Data Files, “Oil & Gas Production.” https://oklahoma.gov/occ/divisions/oil-gas/oil-gas-data.html
  51. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do
  52. Ring Energy, Inc. Form 10-K FY2025, Item 7 MD&A, Results of Operations, “Lease operating expenses.” https://www.sec.gov/Archives/edgar/data/1384195/000138419526000050/rei-20251231.htm
  53. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  54. 17 C.F.R. § 210.4-10(a)(6). https://www.law.cornell.edu/cfr/text/17/210.4-10
  55. RRC, “Enhanced Recovery” webpage. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/injection-storage-permits/enhanced-recovery/

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Chapter 19 Waterfloods and enhanced oil recovery

50 notes

  1. Verma, M.K., 2015, “Fundamentals of Carbon Dioxide-Enhanced Oil Recovery (CO2-EOR),” U.S. Geological Survey Open-File Report 2015-1071. https://pubs.usgs.gov/of/2015/1071/pdf/ofr2015-1071.pdf
  2. RRC, “Enhanced Recovery” webpage. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/injection-storage-permits/enhanced-recovery/
  3. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  4. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  5. IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  6. Pub. L. 119-21, § 70522(b)(2)(A), amending IRC § 45Q(b)(1). https://www.govinfo.gov/content/pkg/PLAW-119publ21/pdf/PLAW-119publ21.pdf
  7. Tex. Tax Code § 202.052(a)–(b). https://texas.public.law/statutes/tex._tax_code_section_202.052
  8. EMH Resources, LLC, SEC Form D, accession no. 0001484525-15-000001, filed May 15, 2015. https://www.sec.gov/Archives/edgar/data/1484525/000148452515000001/primary_doc.xml
  9. Evolution Petroleum Corp., Form 10-K for FY2025 (period ended June 30, 2025), filed Sept. 17, 2025, accession 0001104659-25-090839. https://www.sec.gov/Archives/edgar/data/1006655/000110465925090839/epm-20250630x10k.htm
  10. U.S. Energy Information Administration, “Oil prices drive projected enhanced oil recovery using carbon dioxide,” Today in Energy. https://www.eia.gov/todayinenergy/detail.php?id=17331
  11. 16 Tex. Admin. Code § 3.46(a). https://law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-46
  12. 16 Tex. Admin. Code § 3.46(c)(1), (5)(A), (6). https://law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-46
  13. Kinder Morgan, Inc., Form 10-K for fiscal year 2014. https://www.sec.gov/Archives/edgar/data/0001506307/000150630715000014/kmi-2014x10k.htm
  14. Kinder Morgan, Inc., Form 10-K for fiscal year 2016, CO2 segment results of operations. https://www.sec.gov/Archives/edgar/data/1506307/000150630717000008/kmi-2016x10k.htm
  15. Kinder Morgan, Inc., Form 10-K for fiscal year 2025, CO2 segment results (volumetric data). https://www.sec.gov/Archives/edgar/data/1506307/000150630726000011/kmi-20251231.htm
  16. Kinder Morgan, Inc., Form 10-K for fiscal year 2014, Supplemental Information on Oil and Gas Producing Activities, p. 161. https://www.sec.gov/Archives/edgar/data/1506307/000150630715000014/kmi-2014x10k.htm
  17. Kinder Morgan, Inc., Form 10-K for fiscal year 2014, Costs Incurred in Exploration, Property Acquisitions and Development, p. 162. https://www.sec.gov/Archives/edgar/data/1506307/000150630715000014/kmi-2014x10k.htm
  18. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  19. IRC § 469(c)(3)(B). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  20. IRC § 43(b)(1), (3). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section43
  21. Pub. L. 119-21, § 70522(a), amending IRC § 45Q(f)(10). https://www.govinfo.gov/content/pkg/PLAW-119publ21/pdf/PLAW-119publ21.pdf
  22. Author’s illustration of working-interest and net-revenue-interest math.
  23. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2009, Items 1 and 2 (Cato Properties) and MD&A. https://www.sec.gov/Archives/edgar/data/1253710/000104746909008587/a2194726z10-k.htm
  24. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2009, MD&A (proved reserves). https://www.sec.gov/Archives/edgar/data/1253710/000104746909008587/a2194726z10-k.htm
  25. Evolution Petroleum Corp., Form 10-K for fiscal year ended June 30, 2011, Item 1 (Delhi Field). https://www.sec.gov/Archives/edgar/data/1006655/000110465911051508/a11-26296_110k.htm
  26. Tex. Tax Code § 202.052(b); qualification under sec. 202.054. https://texas.public.law/statutes/tex._tax_code_section_202.054
  27. 68 O.S. § 1001(B)(1)–(2). https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=552911
  28. 68 O.S. § 1001(D)(1)–(3). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  29. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  30. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  31. IRC § 43(a). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section43
  32. IRC § 43(a), as described in IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  33. IRC § 43(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section43
  34. Treas. Reg. § 1.43-2(e)(3)(i) (not qualifying) and (e)(2)(ii)(B), (e)(2)(iv) (qualifying), Treas. Reg. § 1.43-2. https://www.law.cornell.edu/cfr/text/26/1.43-2
  35. IRC § 43(b)(1) and § 43(b)(3)(A), as restated in IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  36. IRS Notice 2026-46 Table 2, 2026-35 I.R.B. 184. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  37. Pub. L. 119-21, § 70522(b), amending IRC § 45Q(a)(3)(B). https://www.govinfo.gov/content/pkg/PLAW-119publ21/pdf/PLAW-119publ21.pdf
  38. IRC § 45Q(b)(1)(A) and § 45Q(h)(1), as amended by Pub. L. 119-21, § 70522(b), (d)(2) (139 Stat. 279–280). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section45Q&num=0&edition=prelim
  39. IRC § 45Q(f)(3)(A)(ii) and (f)(3)(B). https://www.law.cornell.edu/uscode/text/26/45Q
  40. Legacy Reserves Inc., Form 10-K for fiscal year 2019. https://www.sec.gov/Archives/edgar/data/1735828/000173582820000006/lgcy-20191231.htm
  41. Denbury Inc., Form 10-K for fiscal year 2020. https://www.sec.gov/Archives/edgar/data/945764/000094576421000022/den-20201231.htm
  42. Denbury Inc., Form 10-K for fiscal year 2020, Item 1 (Emergence from Voluntary Reorganization Under Chapter 11). https://www.sec.gov/Archives/edgar/data/945764/000094576421000022/den-20201231.htm
  43. ExxonMobil press release, Exhibit 99.1 to Denbury Inc. Form 8-K. https://www.sec.gov/Archives/edgar/data/945764/000094576423000091/den-20230713x8kex991.htm
  44. Denbury Inc., Form 8-K filed Nov. 2, 2023 (merger with ExxonMobil completed), accession 0000945764-23-000140; Denbury Inc., Form 8-K, Exhibit 99.2 (Sept. 18, 2020, emergence from bankruptcy). https://www.sec.gov/Archives/edgar/data/945764/000094576420000137/den-20200918x8kex992.htm
  45. Private Equity Stakeholder Project, “Private Equity-Backed Companies Dominate 2020 Oil and Gas Bankruptcies,” citing Haynes and Boone’s Oil Patch Bankruptcy Monitor. https://pestakeholder.org/news/private-equity-backed-companies-dominate-2020-oil-and-gas-bankruptcies-2/
  46. Oklahoma Corporation Commission, Oil & Gas Conservation Division, Media Advisory – OCC Directives Changing Disposal Well Operations in Earthquake Areas, May 11, 2015. https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/archived-news/2015/05-11-15directives.pdf
  47. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  48. 16 Tex. Admin. Code § 3.15(f)(2)(B)(i). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  49. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iv)–(v). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  50. OCC, Induced Seismicity and UIC Department webpage. https://oklahoma.gov/occ/divisions/oil-gas.html

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Chapter 20 Starting your own operating company

61 notes

  1. RRC Oil & Gas Fees and Surcharges schedule. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/oil-gas-fees-surcharges/
  2. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  3. 16 Tex. Admin. Code § 3.78(g)(1)(B). https://law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-78
  4. Matador Resources Company, Prospectus (Form 424B4), Feb. 2, 2012, Prospectus Summary. https://www.sec.gov/Archives/edgar/data/1520006/000119312512037044/d217064d424b4.htm
  5. Matador Resources Company, Form 10-K for fiscal year 2011, Item 5 / Liquidity. https://www.sec.gov/Archives/edgar/data/1520006/000119312512145249/d325766d10k.htm
  6. Railroad Commission of Texas, Final Order, Oil and Gas Docket No. 04-0256342. https://www.rrc.texas.gov/media/5zljct0k/04-0256342_fo.pdf
  7. Tex. Nat. Res. Code § 91.104(a). https://texas.public.law/statutes/tex._nat._resources_code_section_91.104
  8. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  9. Tex. Nat. Res. Code § 91.114(a)(1)–(2). https://texas.public.law/statutes/tex._nat._resources_code_section_91.114
  10. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  11. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section613A
  12. Rev. Proc. 2025-32 sec. 4.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  13. Okla. Admin. Code 165:10-1-10. https://www.law.cornell.edu/regulations/oklahoma/OAC-165-10-1-10
  14. RRC, Form P-5 Financial Assurance Instructions. https://rrc.texas.gov/media/ev5hwofo/p-5-financial-assurance-instructions.pdf
  15. 43 C.F.R. § 3104.1 (current), as amended at 90 Fed. Reg. 59069 (Dec. 18, 2025). https://www.ecfr.gov/current/title-43/subtitle-B/chapter-II/subchapter-C/part-3100/subpart-3104/section-3104.1
  16. Bureau of Land Management, Oil and Gas Leasing, proposed rule, 91 Fed. Reg. 38084 (June 24, 2026). https://www.federalregister.gov/documents/2026/06/24/2026-12734/oil-and-gas-leasing
  17. RRC Drilling Permits (W-1) Online Filing User Guide, § 2.3.1.1. https://www.rrc.texas.gov/media/qqmhxxex/dpmanual.pdf
  18. Tex. Nat. Res. Code § 91.114(d)(1)–(2). https://texas.public.law/statutes/tex._nat._resources_code_section_91.114
  19. 16 Tex. Admin. Code § 3.15(f)(2)(B)(i). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  20. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iii). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  21. 16 Tex. Admin. Code § 3.15(f)(2)(B)(viii). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  22. 16 Tex. Admin. Code § 3.15(f)(2)(B)(iv)–(v). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-15
  23. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.B. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  24. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  25. COPAS, Overhead Adjustment Factors / Economic Factors page. https://copas.org/resources/economic-factors/
  26. Matador Resources Company, Form 10-K for fiscal year 2025, MD&A. https://www.sec.gov/Archives/edgar/data/1520006/000152000626000002/mtdr-20251231.htm
  27. Diamondback Energy, Inc., Form 8-K Exhibit 99.2, quoting Autry C. Stephens, Founder and Chairman of the Board of Endeavor. https://www.sec.gov/Archives/edgar/data/1539838/000114036124006881/ny20021341x1_ex99-2.htm
  28. Diamondback Energy, Inc., Form 8-K Exhibit 99.2 (merger announcement). https://www.sec.gov/Archives/edgar/data/1539838/000114036124006881/ny20021341x1_ex99-2.htm
  29. Diamondback Energy, Inc., Form 8-K (Endeavor closing). https://www.sec.gov/Archives/edgar/data/1539838/000114036124040726/ef20035628_8k.htm
  30. U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year, Mining, Quarrying, and Oil and Gas Extraction (data through March 2025). https://www.bls.gov/bdm/us_age_naics_21_table7.txt
  31. Author’s illustration of working-interest and net-revenue-interest math.
  32. Royale Energy, Inc., Form 10-K FY2020, Exhibit 99.2. https://www.sec.gov/Archives/edgar/data/1694617/000118518521000424/ex_237057.htm
  33. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  34. Treas. Reg. § 1.612-4(d). https://www.law.cornell.edu/cfr/text/26/1.612-4
  35. Treas. Reg. § 1.612-4(e). https://www.law.cornell.edu/cfr/text/26/1.612-4
  36. Texas Comptroller, Franchise Tax overview. https://comptroller.texas.gov/taxes/franchise/
  37. Tex. Tax Code § 171.002(a)–(b) (text as reproduced at texas.public.law; official source statutes.capitol.texas.gov, Tax Code ch. 171). https://texas.public.law/statutes/tex._tax_code_section_171.002
  38. Tex. Tax Code § 171.101(a) (text as reproduced at texas.public.law; official source statutes.capitol.texas.gov, Tax Code ch. 171). https://texas.public.law/statutes/tex._tax_code_section_171.101
  39. Tex. Tax Code § 171.1016(a)–(c) (text as reproduced at texas.public.law; official source statutes.capitol.texas.gov, Tax Code ch. 171). https://texas.public.law/statutes/tex._tax_code_section_171.1016
  40. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  41. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  42. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  43. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section III.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  44. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2009, Items 1 and 2 (Cato Properties) and MD&A. https://www.sec.gov/Archives/edgar/data/1253710/000104746909008587/a2194726z10-k.htm
  45. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2009, MD&A (proved reserves). https://www.sec.gov/Archives/edgar/data/1253710/000104746909008587/a2194726z10-k.htm
  46. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2010, MD&A (Cato Properties). https://www.sec.gov/Archives/edgar/data/1253710/000110465910049416/a10-17991_110k.htm
  47. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2011, Consolidated Balance Sheets and Statements of Operations. https://www.sec.gov/Archives/edgar/data/1253710/000110465911056993/a11-27191_210k.htm
  48. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2008, cover page. https://www.sec.gov/Archives/edgar/data/1253710/000104746908010022/a2187843z10-k.htm
  49. Cano Petroleum, Inc., Form 10-K for fiscal year ended June 30, 2011, cover page and Item 5. https://www.sec.gov/Archives/edgar/data/1253710/000110465911056993/a11-27191_210k.htm
  50. Cano Petroleum, Inc., Form 8-K filed July 20, 2012 (Item 1.03, confirmation of plan of reorganization); Form 8-K filed March 13, 2012. https://www.sec.gov/Archives/edgar/data/1253710/000110465912050194/a12-16776_18k.htm
  51. Railroad Commission of Texas, 2025 Oilfield Cleanup Program Annual Report. https://www.rrc.texas.gov/media/xgtpvwhf/2025-oilfield-cleanup-program-annual-report_final.pdf
  52. RRC, “Federally Funded Well Plugging” webpage. https://www.rrc.texas.gov/oil-and-gas/environmental-cleanup-programs/federally-funded-well-plugging/
  53. Author’s calculation from note 52. https://www.rrc.texas.gov/oil-and-gas/environmental-cleanup-programs/federally-funded-well-plugging/
  54. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025), p. 7. https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  55. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do
  56. PrimeEnergy Resources Corp., Form 10-K for FY2024, filed April 15, 2025, accession 0001437749-25-012086. https://www.sec.gov/Archives/edgar/data/56868/000143774925012086/pnrg20241231_10k.htm
  57. Dallas Fed Energy Survey, Q1 2026 (2601). https://www.dallasfed.org/research/surveys/des/2026/2601
  58. Texas Business Organizations Code Section 101.107, Withdrawal or Expulsion of Member Prohibited. https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.107
  59. Texas Business Organizations Code Section 101.205, Distribution on Withdrawal. https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.205
  60. Texas Business Organizations Code Section 11.314, Involuntary Winding Up and Termination of Partnership or Limited Liability Company. https://statutes.capitol.texas.gov/Docs/BO/htm/BO.11.htm#11.314
  61. Oklahoma Statutes Title 18, Section 2036(A), Events Causing Cessation of Membership; Withdrawal; Death or Incapacity. https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=67206

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Chapter 21 Lending to operators

48 notes

  1. Sabine Oil & Gas Corp., Form 10-K for fiscal year 2015. https://www.sec.gov/Archives/edgar/data/0000038079/000155837016004332/sogc-20151231x10k.htm
  2. OCC Comptroller’s Handbook, Oil and Gas Exploration and Production Lending, Version 2.2 (Oct. 15, 2018), p. 11. https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/oil-gas-exploration-prod-lending/pub-ch-oil-and-gas.pdf
  3. Sabine Oil & Gas Corp., Form 8-K, Exhibit 99.1. https://www.sec.gov/Archives/edgar/data/0000038079/000110465916136612/a16-16038_1ex99d1.htm
  4. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  5. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  6. Nebari Natural Resources Credit Fund II, LP, SEC Form D/A, filed Jan. 30, 2025. https://www.sec.gov/Archives/edgar/data/1952745/000089706925000136/primary_doc.xml
  7. FS KKR Capital Corp., Form 10-K for FY2025, Consolidated Schedule of Investments (continued), “As of December 31, 2024,” Other Senior Secured Debt section, Warren Resources Inc line. https://www.sec.gov/Archives/edgar/data/1422183/000162828026011734/fsk-20251231.htm
  8. Tex. Bus. & Com. Code § 3.103(a)(12). https://texas.public.law/statutes/tex._bus._and_com._code_section_3.103
  9. Tex. Bus. & Com. Code § 3.104(e). https://texas.public.law/statutes/tex._bus._and_com._code_section_3.104
  10. 11 U.S.C. § 101(37). https://www.govinfo.gov/content/pkg/USCODE-2023-title11/html/USCODE-2023-title11-chap1-sec101.htm
  11. UCC § 9-102(a)(6)(A). https://www.law.cornell.edu/ucc/9/9-102
  12. UCC § 9-501(a)(1). https://www.law.cornell.edu/ucc/9/9-501
  13. 17 C.F.R. § 210.4-10(a)(22). https://www.law.cornell.edu/cfr/text/17/210.4-10
  14. OCC Comptroller’s Handbook, Oil and Gas Exploration and Production Lending, Version 2.2 (Oct. 15, 2018), p. 24. https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/oil-gas-exploration-prod-lending/pub-ch-oil-and-gas.pdf
  15. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.5(1), citing Treas. Reg. § 1.636-3(a)(1) and (2). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  16. Chesapeake Energy Corp., Form 10-K for FY2009, Consolidated Statement of Cash Flows. https://www.sec.gov/Archives/edgar/data/0000895126/000119312510044784/d10k.htm
  17. Chesapeake Energy Corp., Form 10-K for FY2009, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/0000895126/000119312510044784/d10k.htm
  18. Chesapeake Energy Corp., letter to SEC Division of Corporation Finance dated June 13, 2008 responding to staff comments on the 2007 Form 10-K, filed as Exhibit 99.1 to Form 8-K filed July 9, 2008. https://www.sec.gov/Archives/edgar/data/895126/000119312508148232/dex991.htm
  19. Reves v. Ernst & Young, 494 U.S. 56 (1990). https://supreme.justia.com/cases/federal/us/494/56/
  20. Reves v. Ernst & Young, 494 U.S. 56, 65 (1990) (quoting Second Circuit family-resemblance list). https://caselaw.findlaw.com/court/us-supreme-court/494/56.html
  21. U.S. Courts, “Chapter 11 – Bankruptcy Basics.” https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
  22. U.S. Court of Appeals for the Fifth Circuit, In re Ultra Petroleum Corp., No. 21-20008 (Oct. 14, 2022). https://www.ca5.uscourts.gov/opinions/pub/21/21-20008-CV0.pdf
  23. Office of the Comptroller of the Currency, News Release NR 2016-87, “Shared National Credit Review Finds Risk Remains High, But Underwriting and Risk Management Improve.” https://occ.treas.gov/news-issuances/news-releases/2016/nr-ia-2016-87.html
  24. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  25. IRS Pub. 925 (2025), “Portfolio income.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  26. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  27. Main Street Capital Corp., Form 10-K for FY2025, Consolidated Schedule of Investments, “December 31, 2025,” KBK Industries, LLC line (“Manufacturer of Specialty Oilfield and Industrial Products”). https://www.sec.gov/Archives/edgar/data/1396440/000139644026000016/main-20251231.htm
  28. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  29. VPP GAS, Inc., Form 1-A/A Offering Circular (filed May 27, 2026), “Acquisition Criteria and Pricing.” https://www.sec.gov/Archives/edgar/data/2134530/000213453026000003/vppgasregaFiled_3.txt
  30. IRC § 61(a)(4). https://www.law.cornell.edu/uscode/text/26/61
  31. IRC § 1411(a)(1). https://www.law.cornell.edu/uscode/text/26/1411
  32. IRC § 1411(b). https://www.law.cornell.edu/uscode/text/26/1411
  33. Rev. Proc. 2025-32 (absence of any § 1411 adjustment, contrasted with IRC § 1411(b) fixed dollar figures). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  34. Rev. Proc. 2025-32 sec. 3.01, Table 1. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  35. Treas. Reg. § 1.636-1(a)(1)(i) (implementing IRC § 636(a)). https://www.law.cornell.edu/cfr/text/26/1.636-1
  36. IRC § 636(a). https://www.law.cornell.edu/uscode/text/26/636
  37. Treas. Reg. § 1.611-1(b). https://www.law.cornell.edu/cfr/text/26/1.611-1
  38. SEC, In the Matter of Resolute Capital Partners LTD, LLC, et al., Order Instituting Administrative and Cease-and-Desist Proceedings, Securities Act Release No. 10987. https://www.sec.gov/files/litigation/admin/2021/33-10987.pdf
  39. SEC, In the Matter of Resolute Capital Partners LTD, LLC, et al., Order, Securities Act Release No. 10987; SEC distributions-to-harmed-investors page, Admin. Proc. File No. 3-20597. https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/matter-resolute-capital-partners-ltd-llc-et-al-admin-proc-file-no-3-20597
  40. SEC Press Release 2000-72, “SEC, State Securities Regulators Announce Promissory Note Enforcement Sweep.” https://www.sec.gov/newsroom/press-releases/2000-72-sec-state-securities-regulators-announce-promissory-note-enforcement-sweep
  41. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.A. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  42. Tex. Fin. Code § 302.001(b). https://statutes.capitol.texas.gov/Docs/FI/htm/FI.302.htm
  43. Tex. Fin. Code § 303.009(c). https://statutes.capitol.texas.gov/Docs/FI/htm/FI.303.htm
  44. Tex. Fin. Code § 305.001(a-1). https://statutes.capitol.texas.gov/Docs/FI/htm/FI.305.htm
  45. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.B.4. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  46. NASAA Informed Investor Advisory: Promissory Notes. https://www.nasaa.org/46329/informed-investor-advisory-promissory-notes/
  47. Railroad Commission of Texas, Production Data Query System (PDQ) FAQs. https://rrc.texas.gov/about-us/faqs/oil-gas-faq/production-data-query-system-faqs
  48. Oklahoma Tax Commission, Gross Production, “Obtaining Historical Data.” https://oklahoma.gov/tax/businesses/gross-production.html

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Chapter 22 Equipment financing and sale-leasebacks

61 notes

  1. Rev. Proc. 2001-28, sec. 4.01(1), 2001-1 C.B. 1156. https://www.novoco.com/documents80866/proc_01-28.pdf
  2. Rev. Proc. 2001-28, sec. 4.01(2), 2001-1 C.B. 1156. https://www.novoco.com/documents80866/proc_01-28.pdf
  3. Rev. Proc. 2001-28, sec. 4.01(3), 2001-1 C.B. 1156. https://www.novoco.com/documents80866/proc_01-28.pdf
  4. Author’s calculation from Forum Energy Technologies, Inc., Form 10-K for FY2025, Note 8 “Leases” (see note 7 for the underlying rent and proceeds figures). https://www.sec.gov/Archives/edgar/data/1401257/000140125726000015/fet-20251231.htm
  5. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://uscode.house.gov/view.xhtml?req=(title:26%20section:168%20edition:prelim)
  6. IRC § 469(c)(2). https://www.law.cornell.edu/uscode/text/26/469
  7. Forum Energy Technologies, Inc., Form 10-K for FY2025, Note 8 “Leases,” Sale-leaseback transactions. https://www.sec.gov/Archives/edgar/data/1401257/000140125726000015/fet-20251231.htm
  8. Frank Lyon Co. v. United States, 435 U.S. 561, 583–84 (1978). https://caselaw.findlaw.com/court/us-supreme-court/435/561.html
  9. Rev. Proc. 2001-28, sec. 4.03, 2001-1 C.B. 1156. https://www.novoco.com/documents80866/proc_01-28.pdf
  10. Rev. Proc. 2001-28, sec. 4.05, 2001-1 C.B. 1156. https://www.novoco.com/documents80866/proc_01-28.pdf
  11. Seadrill Limited, press release, “Seadrill Announces Comprehensive Restructuring Plan to Be Implemented with Prearranged Chapter 11 Cases,” Sept. 12, 2017. https://www.globenewswire.com/news-release/2017/09/12/1118425/0/en/SDRL-Seadrill-Announces-Comprehensive-Restructuring-Plan-to-Be-Implemented-with-Prearranged-Chapter-11-Cases.html
  12. U.S. Courts, “Chapter 11 – Bankruptcy Basics.” https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
  13. Seadrill Limited, Form 6-K, July 2021. https://www.sec.gov/Archives/edgar/data/1737706/000119312521223552/d156507d6k.htm
  14. Seadrill Limited, Form 20-F for fiscal year 2021 (filed April 29, 2022), definitions. https://www.sec.gov/Archives/edgar/data/1737706/000162828022011225/sdrl-20211231.htm
  15. Seadrill Limited, Form 20-F for fiscal year 2021 (filed April 29, 2022), Item 5.B, “Information on our borrowings.” https://www.sec.gov/Archives/edgar/data/1737706/000162828022011225/sdrl-20211231.htm
  16. Seadrill Limited, Interim report 1Q22 (Form 6-K filed May 25, 2022), Note 4, “Fresh Start accounting,” Reorganization Value. https://www.sec.gov/Archives/edgar/data/1737706/000162828022015301/seadrill6-k2022q1.htm
  17. Key Energy Services, Inc., Disclosure Statement for the Joint Prepackaged Plan of Reorganization dated Sept. 21, 2016, Ex. 99.1 to Form 8-K filed Sept. 22, 2016, Section I.B (summary of classification and treatment). https://www.sec.gov/Archives/edgar/data/318996/000119312516716371/d252924dex991.htm
  18. IRC § 469(j)(8). https://www.law.cornell.edu/uscode/text/26/469
  19. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  20. IRC § 469(i)(1)–(2). https://www.law.cornell.edu/uscode/text/26/469
  21. Treas. Reg. § 1.469-1T(e)(3)(ii)(A). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  22. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  23. Treas. Reg. § 1.469-5T(a)(1)–(7). https://www.ecfr.gov/current/title-26/section-1.469-5T
  24. Main Street Capital Corp., Form 10-K for FY2025, Consolidated Schedule of Investments, “December 31, 2025,” KBK Industries, LLC line (“Manufacturer of Specialty Oilfield and Industrial Products”). https://www.sec.gov/Archives/edgar/data/1396440/000139644026000016/main-20251231.htm
  25. USA Compression Partners, LP Form 10-K FY2025, Item 7 (Operating Highlights). https://www.sec.gov/Archives/edgar/data/1522727/000152272726000015/usac-20251231.htm
  26. Key Energy Services, Inc., Form 8-K, Exhibit 99.2, press release. https://www.sec.gov/Archives/edgar/data/0000318996/000119312516787494/d117637dex992.htm
  27. Key Energy Services, Inc., Form 8-K, plan support agreement disclosure. https://www.sec.gov/Archives/edgar/data/0000318996/000119312516690488/d234388d8k.htm
  28. Key Energy Services, Inc., Form 8-K filed December 15, 2016 (Effective Date disclosure), with Form 8-K Exhibit 99.2 press release of December 7, 2016 for the confirmation date. https://www.sec.gov/Archives/edgar/data/318996/000119312516794624/d313262d8k.htm
  29. Archrock, Inc., Form 10-K for FY2025, Fair Value Measurements note, unobservable inputs for the compression fleet. https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  30. Pub. L. 119-21, 139 Stat. 72 (enacted July 4, 2025); bonus depreciation at § 70301, 139 Stat. 189. https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  31. Pub. L. 119-21, § 70301(c), 139 Stat. 189 (effective-date note to IRC § 168(k)); § 70301(a)(1) (striking former § 168(k)(2)(A)(iii)). https://uscode.house.gov/view.xhtml?req=(title:26%20section:168%20edition:prelim)
  32. IRC § 168(k)(2)(A)(ii) and (k)(2)(E)(i). https://www.law.cornell.edu/uscode/text/26/168
  33. Treas. Reg. § 1.469-1T(e)(3)(ii), example. https://www.law.cornell.edu/cfr/text/26/1.469-1T
  34. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  35. IRC § 465(c)(1)(C). https://www.law.cornell.edu/uscode/text/26/465
  36. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  37. IRC § 1245(a)(1). https://www.law.cornell.edu/uscode/text/26/1245
  38. IRC § 467(d)(1). https://www.law.cornell.edu/uscode/text/26/467
  39. IRC § 467(d)(2) (flush language). https://www.law.cornell.edu/uscode/text/26/467
  40. IRC § 467(b)/(e). https://www.law.cornell.edu/uscode/text/26/467
  41. SEC Litigation Release No. 20608 (June 3, 2008), SEC v. Michael J. McNaul, II, et al. (Mid Western Natural Gas/Alliance Leasing). https://www.sec.gov/enforcement-litigation/litigation-releases/lr-20608
  42. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 1050, Interlocutory Judgment as to Michael J. McNaul, II (Oct. 13, 2011). https://www.sec.gov/files/PartialJudg08-cv-01159McNaul.pdf
  43. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 1049, Interlocutory Judgment as to Dale C. Lucas (Oct. 13, 2011). https://www.sec.gov/files/PartialJudg08-cv-01159Lucas.pdf
  44. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 1047, Interlocutory Judgment as to Lloyd F. Nunns (Oct. 13, 2011). https://www.sec.gov/files/PartialJudg08-cv-01159Nunns.pdf
  45. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 1048, Interlocutory Judgment as to Gregg Krause (Oct. 13, 2011). https://www.sec.gov/files/PartialJudg08-cv-01159Krause.pdf
  46. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 997, Final Judgment as to Defendant Raymond L. Leonard, Jr. (June 13, 2011). https://www.sec.gov/files/Judg08-cv-01159Leonard.pdf
  47. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 1076, Agreed Final Judgment as to Defendant Kilgariff (Dec. 22, 2011). https://www.sec.gov/files/Judg08-cv-01159Kilgariff.pdf
  48. SEC v. McNaul, No. 08-cv-1159-JTM (D. Kan.), Doc. 1099, Order (Mar. 30, 2012). https://www.sec.gov/files/Judg08-cv-01159McNaul.pdf
  49. Patterson-UTI Energy, Inc., Form 10-K for FY2016, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  50. Patterson-UTI Energy, Inc., Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/889900/000156459021005045/pten-10k_20201231.htm
  51. 11 U.S.C. § 365(a). https://www.govinfo.gov/content/pkg/USCODE-2023-title11/html/USCODE-2023-title11-chap3-subchapIV-sec365.htm
  52. 11 U.S.C. § 365(d)(5). https://www.govinfo.gov/content/pkg/USCODE-2023-title11/html/USCODE-2023-title11-chap3-subchapIV-sec365.htm
  53. 11 U.S.C. § 365(g)(1). https://www.govinfo.gov/content/pkg/USCODE-2023-title11/html/USCODE-2023-title11-chap3-subchapIV-sec365.htm
  54. 11 U.S.C. § 502(g)(1). https://www.govinfo.gov/content/pkg/USCODE-2023-title11/html/USCODE-2023-title11-chap5-subchapI-sec502.htm
  55. 11 U.S.C. § 506(a)(1). https://www.govinfo.gov/content/pkg/USCODE-2023-title11/html/USCODE-2023-title11-chap5-subchapI-sec506.htm
  56. Tex. Bus. & Com. Code § 1.203(b)(4). https://texas.public.law/statutes/tex._bus._and_com._code_section_1.203
  57. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  58. SEC Litigation Release No. 26648 (Sept. 25, 2026), SEC v. Kristopher A. Lunsford, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26648
  59. SEC Litigation Release No. 24158 (June 6, 2018), SEC v. Ralph T. Iannelli, et al. (Essex Capital Corporation). https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24158
  60. NASAA Informed Investor Advisory: Promissory Notes. https://www.nasaa.org/46329/informed-investor-advisory-promissory-notes/
  61. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.8(a). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf

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Chapter 23 Owning equipment

59 notes

  1. USA Compression Partners, LP Form 10-K FY2025, Item 7 (Operating Highlights). https://www.sec.gov/Archives/edgar/data/1522727/000152272726000015/usac-20251231.htm
  2. Archrock, Inc. Form 10-K FY2025, Item 7 (Operating Highlights). https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  3. Patterson-UTI Energy, Inc. Form 10-K FY2025, Item 7 (Recent Developments in Market Conditions). https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm
  4. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  5. IRC § 168(k)(2)(A)(ii) and (k)(2)(E)(i). https://www.law.cornell.edu/uscode/text/26/168
  6. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  7. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  8. Rev. Proc. 2025-32, sec. 3.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  9. Global Key Energy Equipment Fund I, LP, SEC Form D (accession 0001736015-18-000001), filed April 3, 2018. https://www.sec.gov/Archives/edgar/data/1736015/000173601518000001/primary_doc.xml
  10. Patterson-UTI Energy, Inc., Form 8-K Exhibit 99.1, Q1 2025 earnings release (filed April 24, 2025), “Additional Financial and Operating Data” table. https://www.sec.gov/Archives/edgar/data/889900/000162828025019463/a2025q1earningsreleaseex991.htm
  11. Author’s calculation from Archrock, Inc., Form 10-K for FY2025, revenue-by-category table (contract operations revenue) and “Operating Highlights” table (average operating horsepower). https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  12. Frank Lyon Co. v. United States, 435 U.S. 561, 583–84 (1978). https://caselaw.findlaw.com/court/us-supreme-court/435/561.html
  13. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.6 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  14. Patterson-UTI Energy, Inc., Form 10-K for fiscal year 2016, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  15. Patterson-UTI Energy, Inc., Form 10-K for FY2016, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  16. Patterson-UTI Energy, Inc., Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/889900/000156459021005045/pten-10k_20201231.htm
  17. Patterson-UTI Energy, Inc., Form 8-K, Exhibit 99.1 (merger announcement press release). https://www.sec.gov/Archives/edgar/data/889900/000119312523167408/d494894dex991.htm
  18. Patterson-UTI Energy, Inc., Form 8-K, Exhibit 99.1 (merger completion press release). https://www.sec.gov/Archives/edgar/data/889900/000119312523227636/d463540dex991.htm
  19. Patterson-UTI Energy, Inc., Form 8-K Exhibit 99.1, Q1 2024 earnings release (May 1, 2024; filed May 2, 2024), “First Quarter 2024 Financial Results and Other Key Items.” https://www.sec.gov/Archives/edgar/data/889900/000162828024019694/a2024q1earningsreleaseex991.htm
  20. Patterson-UTI Energy, Inc. Form 10-K for FY2019, Item 5(e) Performance Graph. https://www.sec.gov/Archives/edgar/data/889900/000156459020004584/pten-10k_20191231.htm
  21. Patterson-UTI Energy, Inc. Form 10-K for FY2023, Item 5(e) Performance Graph. https://www.sec.gov/Archives/edgar/data/889900/000095017024020661/pten-20231231.htm
  22. ProPetro Holding Corp. Form 10-K FY2020, Item 1A Risk Factors. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  23. IRC § 469(c)(2). https://www.law.cornell.edu/uscode/text/26/469
  24. IRC § 469(j)(8). https://www.law.cornell.edu/uscode/text/26/469
  25. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  26. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  27. IRC § 469(i)(1)–(2). https://www.law.cornell.edu/uscode/text/26/469
  28. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  29. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  30. Archrock, Inc., Form 10-K for FY2025, business overview / outlook discussion. https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  31. Natural Gas Services Group, Inc., Form 8-K Exhibit 99.1 (Q3 2023 earnings call transcript, call date Nov. 15, 2023; filed Nov. 20, 2023), answer to analyst question. https://www.sec.gov/Archives/edgar/data/1084991/000108499123000127/exhibit991earningscallq3sc.htm
  32. Author’s calculation from USA Compression Partners, LP Form 10-K FY2025, Item 7 results-of-operations table (cost of operations) and Operating Highlights table (average revenue-generating horsepower). https://www.sec.gov/Archives/edgar/data/1522727/000152272726000015/usac-20251231.htm
  33. Author’s calculation from Archrock, Inc. Form 10-K FY2025, Item 7, Contract Operations table (cost of sales) and Operating Highlights table (average operating horsepower). https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  34. Pub. L. 119-21, § 70301(c)(1) (IRC § 168 note). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  35. Treas. Reg. § 1.469-1T(e)(3)(ii)(A). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  36. Treas. Reg. § 1.469-1T(e)(3)(ii)(B). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  37. IRC § 469(c)(1). https://www.law.cornell.edu/uscode/text/26/469
  38. IRC § 1245(a)(3). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  39. IRC § 1245(a)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  40. IRC § 453(i)(1). https://www.law.cornell.edu/uscode/text/26/453
  41. IRC § 1031(a)(1). https://www.law.cornell.edu/uscode/text/26/1031
  42. FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  43. NY DTF Form IT-225-I (2025) instructions. https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf
  44. Independence Contract Drilling, Inc., Joint Prepackaged Plan of Reorganization, Exhibit 10.1 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1537028/000153702824000057/icdi-20241127xex10d1.htm
  45. Pioneer Energy Services Corp., Form 8-K describing the Restructuring Support Agreement. https://www.sec.gov/Archives/edgar/data/320575/000119312520057739/d871821d8k.htm
  46. Pioneer Energy Services Corp., Form 8-K. https://www.sec.gov/Archives/edgar/data/320575/000032057519000027/form8k-nysenotificationjun.htm
  47. Pioneer Energy Services Corp., Form 8-K, press release. https://www.sec.gov/Archives/edgar/data/320575/000032057519000039/ex991pressrelease-nysenoti.htm
  48. Pioneer Energy Services Corp., Form 8-K (event date May 29, 2020; filed June 2, 2020), Item 5.01. https://www.sec.gov/Archives/edgar/data/320575/000119312520157554/d926385d8k.htm
  49. Independence Contract Drilling, Inc., Form 8-K. https://www.sec.gov/Archives/edgar/data/1537028/000153702824000057/icdi-20241127x8k.htm
  50. Independence Contract Drilling, Inc., Form 15 certification (filed Jan. 17, 2025), footnote. https://www.sec.gov/Archives/edgar/data/1537028/000153702825000005/tmb-20250117x1512g.htm
  51. Patterson-UTI Energy, Inc., Form 10-K for FY2020, Risk Factors. https://www.sec.gov/Archives/edgar/data/889900/000156459021005045/pten-10k_20201231.htm
  52. USA Compression Partners, LP Form 10-K FY2025, Item 1A (risk factors). https://www.sec.gov/Archives/edgar/data/1522727/000152272726000015/usac-20251231.htm
  53. Archrock, Inc. Form 10-K FY2025, Item 1A (risk factors). https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  54. Patterson-UTI Energy, Inc. Form 10-K FY2025, Item 1 (Drilling Services). https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm
  55. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  56. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.8(a). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  57. SEC Litigation Release No. 20608, SEC v. Michael J. McNaul, II, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-20608
  58. United States v. McNaul, No. 6:12-cr-10210-JTM (D. Kan. June 12, 2015), Memorandum and Omnibus Order (Dkt. 241). https://www.govinfo.gov/content/pkg/USCOURTS-ksd-6_12-cr-10210/pdf/USCOURTS-ksd-6_12-cr-10210-0.pdf
  59. United States v. McNaul, No. 6:12-cr-10210 (D. Kan.), docket (via CourtListener/RECAP) entries 275 and 277, and Memorandum and Order (Dkt. 276, July 20, 2015) n.1. https://www.govinfo.gov/content/pkg/USCOURTS-ksd-6_12-cr-10210/pdf/USCOURTS-ksd-6_12-cr-10210-2.pdf

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Chapter 24 Saltwater disposal and water midstream

48 notes

  1. NGL Energy Partners LP Form 10-K FY2026 (period ended March 31, 2026), Item 1 (Business). https://www.sec.gov/Archives/edgar/data/1504461/000150446126000012/ngl-20260331.htm
  2. NGL Energy Partners LP Form 10-K FY2026, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1504461/000150446126000012/ngl-20260331.htm
  3. Aris Water Solutions, Inc. Form 10-K FY2024, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/1865187/000155837025001818/aris-20241231x10k.htm
  4. Ground Water Protection Council, U.S. Produced Water Volumes and Management Practices in 2021 (Nov. 2022), Executive Summary, p. 2. https://www.gwpc.org/wp-content/uploads/2021/09/2021_Produced_Water_Volumes.pdf
  5. Ground Water Protection Council, U.S. Produced Water Volumes and Management Practices in 2021 (Nov. 2022), Table 4-8 and accompanying text, p. 27. https://www.gwpc.org/wp-content/uploads/2021/09/2021_Produced_Water_Volumes.pdf
  6. Hew-Tex/Mentone #3 SWD LLC, SEC Form D/A, filed April 28, 2023. https://www.sec.gov/Archives/edgar/data/1972523/000197252323000002/primary_doc.xml
  7. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  8. IRS, Oil and Gas Audit Technique Guide, Pub. 5652 (rev. 2-2023), Section VII.D.5 “Saltwater Disposal Wells,” p. 138. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  9. Hew-Tex/Haynesville SWD LLC, SEC Form D, filed Feb. 9, 2026. https://www.sec.gov/Archives/edgar/data/2110121/000211012126000001/primary_doc.xml
  10. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  11. 17 C.F.R. § 230.506(b)(2)(i), as amended at 86 FR 3598 (Jan. 14, 2021). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  12. RRC Form W-14. https://www.rrc.texas.gov/media/1vlfbmna/formw-14p.pdf
  13. RRC Form W-14, items 36, 38. https://www.rrc.texas.gov/media/1vlfbmna/formw-14p.pdf
  14. Aris Water Solutions, Inc., Form 10-K for FY2024, “Operating Metrics” table (total revenue/barrel) and MD&A “Revenue – Produced Water Handling Revenue” table (fees/barrel and skim oil/barrel). https://www.sec.gov/Archives/edgar/data/1865187/000155837025001818/aris-20241231x10k.htm
  15. NGL Energy Partners LP, Form 10-K for FY ended March 31, 2026, “Water Solutions” segment operating results table. https://www.sec.gov/Archives/edgar/data/1504461/000150446126000012/ngl-20260331.htm
  16. Summit Midstream Partners, LP Form 10-K for FY2017, Glossary of Terms. https://www.sec.gov/Archives/edgar/data/1549922/000156459018003135/smlp-10k_20171231.htm
  17. Aris Water Solutions, Inc., Form 10-K for fiscal year 2021, Glossary of Defined Terms. https://www.sec.gov/Archives/edgar/data/1865187/000155837022002585/aris-20211231x10k.htm
  18. Aris Water Solutions, Inc., Form 425 (joint press release with Western Midstream Partners, LP). https://www.sec.gov/Archives/edgar/data/1865187/000119312525174578/d209131d425.htm
  19. Western Midstream Partners, LP, investor press release, “Western Midstream Completes Acquisition of Aris Water Solutions.” https://investors.westernmidstream.com/2025-10-15-WESTERN-MIDSTREAM-COMPLETES-ACQUISITION-OF-ARIS-WATER-SOLUTIONS
  20. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  21. Treas. Reg. § 1.469-1(e)(4)(iv). https://www.law.cornell.edu/cfr/text/26/1.469-1
  22. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  23. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  24. Oklahoma Corporation Commission, Oil & Gas Conservation Division, Media Advisory – Ongoing OCC Earthquake Response, March 25, 2015. https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/archived-news/2015/03-25-15-media-advisory-tl-and-related-documents.pdf
  25. Oklahoma Corporation Commission, Oil and Gas Conservation Division, Memo Re: Reduction in Volumes for Wells Located in Area of Interest for Induced Seismicity, Jan. 4, 2016. https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/2016/01-04-16eq-advisory.pdf
  26. Pub. L. 119-21, § 70301(c)(1) (IRC § 168 note). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  27. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  28. Rev. Proc. 87-56, as reflected in IRS Pub. 946 (2025), Table B-2, Asset Class 13.2. https://www.irs.gov/pub/irs-pdf/p946.pdf
  29. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  30. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  31. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  32. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  33. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  34. Oklahoma Corporation Commission, Oil & Gas Conservation Division, Media Advisory – Regional Earthquake Response Plan for Western Oklahoma, Feb. 16, 2016. https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/2016/02-16-16westernregionalplan.pdf
  35. Oklahoma Corporation Commission, Oil & Gas Conservation Division, media advisory, “Regional Earthquake Response Plan for Central Oklahoma and Expansion of the Area of Interest.” https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/2016/03-07-16advisory-aoi-volume-reduction.pdf
  36. Ladra v. New Dominion, LLC, 2015 OK 53, 353 P.3d 529 (Okla. 2015). https://law.justia.com/cases/oklahoma/supreme-court/2015/113396.html
  37. Ladra v. New Dominion LLC, No. CJ-2014-00115 (Lincoln County, Okla. Dist. Ct.), OSCN docket. https://www.oscn.net/dockets/GetCaseInformation.aspx?db=lincoln&number=CJ-2014-00115&cmid=1487792
  38. Oklahoma Corporation Commission, Oil & Gas Conservation Division, media advisory, “New Earthquake Directive Takes Aim at Future Disposal Rates.” https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/2017/02-24-17-future-disposal.pdf
  39. RRC, Seismicity Review (Injection-Disposal Permit Procedures). https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/injection-storage-permits/oil-and-gas-waste-disposal/injection-disposal-permit-procedures/seismicity-review/
  40. Aris Water Solutions, Inc. Form 10-K FY2024, Item 1A (Risk Factors). https://www.sec.gov/Archives/edgar/data/1865187/000155837025001818/aris-20241231x10k.htm
  41. In re Sabine Oil & Gas Corp., Bankr. S.D.N.Y. Case No. 15-11835 (SCC), Memorandum Decision and Order on Motions for Stay Pending Appeal and Expedited Requests for Certification, p. 4 n.16 (June 15, 2016). https://www.nysb.uscourts.gov/sites/default/files/opinions/259480_1267_opinion.pdf
  42. In re Sabine Oil & Gas Corp., Bankr. S.D.N.Y. Case No. 15-11835 (SCC), Memorandum Decision and Order on Motions for Stay Pending Appeal, p. 7 (June 15, 2016). https://www.nysb.uscourts.gov/sites/default/files/opinions/259480_1267_opinion.pdf
  43. 16 Tex. Admin. Code § 3.78(g)(1)(A)–(B), (g)(9) and (h). https://www.law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-78
  44. 40 C.F.R. § 144.52(a)(7)(i). https://www.law.cornell.edu/cfr/text/40/144.52
  45. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025), p. 7. https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  46. OCC, “Plan Addressing Orphaned Well Plugging Challenges” (Jan. 27, 2025). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/OCC-Plan-Addressing-Orphaned-Well-Plugging-Challenges.pdf
  47. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  48. Receiver’s Application for Approval to Pay Claims Associated with Emergency Disposal Well Remediation Procedures, Case No. CJ-2013-5023 (Okla. Cnty. Dist. Ct.). https://securities.ok.gov/Enforcement/Orders/PDF/CJ-13-5023_RcvrsAppForApprovToPayClaims_12-084.pdf

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Chapter 25 Pipelines and gathering systems

58 notes, 56 numbered in the book

  1. Sanchez Midstream Partners LP Form 10-K for FY2018, Item 1A (Risk Factors). https://www.sec.gov/Archives/edgar/data/1362705/000155837019001662/spp-20181231x10k.htm
  2. Natural Gas Act sec. 1(b); 15 U.S.C. § 717(b). https://www.law.cornell.edu/uscode/text/15/717
  3. IRC § 168(e)(3)(C)(iv). https://www.law.cornell.edu/uscode/text/26/168
  4. Sanchez Midstream Partners LP Form 10-K for FY2018, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/1362705/000155837019001662/spp-20181231x10k.htm
  5. IRC § 469(k)(2) (definition of a publicly traded partnership). https://www.law.cornell.edu/uscode/text/26/469
  6. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  7. Roaring Fork Midstream II, LP, SEC Form D, filed March 5, 2026. https://www.sec.gov/Archives/edgar/data/2116139/000211613926000001/primary_doc.xml
  8. Eckard Midstream, LLC, SEC Form D, filed Dec. 21, 2023. https://www.sec.gov/Archives/edgar/data/2004863/000200486323000001/primary_doc.xml
  9. Rev. Proc. 87-56, as reflected in IRS Pub. 946 (2025), Table B-2, Asset Class 13.2. https://www.irs.gov/pub/irs-pdf/p946.pdf
  10. EQT Corp. Form 10-K for FY2014, Item 7 (MD&A), Operational Data table. https://www.sec.gov/Archives/edgar/data/33213/000003321315000004/eqt-12312014x10k.htm
  11. Exhibit 10.16 to Summit Midstream Partners, LP Form 10-K for FY2013, “Amended and Restated Gas Gathering and Compression Agreement” between Mountaineer Midstream Company, LLC and Antero Resources Corporation, dated Nov. 4, 2013, Section 8.2. https://www.sec.gov/Archives/edgar/data/1549922/000154992214000024/exh10161213.htm
  12. HighPoint Resources Corp. Form 10-K for FY2018, Item 8, Notes to Financial Statements (Contractual Obligations footnote). https://www.sec.gov/Archives/edgar/data/1725526/000172552619000062/hpr-12312018x10xk.htm
  13. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  14. Ace Gathering Holdings, LLC, Form D (Rule 506(b)), primary_doc.xml. https://www.sec.gov/Archives/edgar/data/1927489/000192748922000001/primary_doc.xml
  15. 17 C.F.R. § 230.501(a)(5)–(6). https://www.law.cornell.edu/cfr/text/17/230.501
  16. IRC § 7704(c). https://uscode.house.gov/view.xhtml?req=(title:26%20section:7704%20edition:prelim)
  17. IRC § 7704(d)(1)(E). https://uscode.house.gov/view.xhtml?req=(title:26%20section:7704%20edition:prelim)
  18. In re Sabine Oil & Gas Corp., Memorandum Decision and Order on Motions for Stay Pending Appeal, Case No. 15-11835 (SCC), Bankr. S.D.N.Y. https://www.nysb.uscourts.gov/sites/default/files/opinions/259480_1267_opinion.pdf
  19. In re Sabine Oil & Gas Corp., Bankr. S.D.N.Y. Case No. 15-11835 (SCC), Memorandum Decision and Order on Motions for Stay Pending Appeal and Expedited Requests for Certification, p. 4 n.16 (June 15, 2016). https://www.nysb.uscourts.gov/sites/default/files/opinions/259480_1267_opinion.pdf
  20. In re Sabine Oil & Gas Corp., Bankr. S.D.N.Y. Case No. 15-11835 (SCC), Memorandum Decision and Order on Motions for Stay Pending Appeal, p. 7 (June 15, 2016). https://www.nysb.uscourts.gov/sites/default/files/opinions/259480_1267_opinion.pdf
  21. In re Sabine Oil & Gas Corp., 550 B.R. 59 (Bankr. S.D.N.Y. May 3, 2016), Case No. 15-11835 (SCC), Adv. Proc. Nos. 16-01042 & 16-01043, Memorandum Decision on (I) Motions of Nordheim and HPIP for Judgment on the Pleadings and (II) Debtors’ Omnibus Motion for Summary Judgment (May 3, 2016). https://www.nysb.uscourts.gov/sites/default/files/opinions/264963_22_opinion.pdf
  22. In re Sabine Oil & Gas Corp., 734 F. App’x 64, No. 17-1026 (2d Cir. May 25, 2018) (summary order affirming 567 B.R. 869 (S.D.N.Y. 2017)). https://caselaw.findlaw.com/court/us-2nd-circuit/1934164.html
  23. Alta Mesa Holdings, LP v. Kingfisher Midstream, LLC (In re Alta Mesa Res., Inc.), 613 B.R. 90 (Bankr. S.D. Tex. Dec. 20, 2019), as recounted in Mustang Gas Products, LLC v. Wells Fargo Bank, N.A. (In re Alta Mesa Res., Inc.), Adv. No. 20-03114, Mem. Op. at 4 (Bankr. S.D. Tex. July 25, 2024). https://www.govinfo.gov/content/pkg/USCOURTS-txsb-4_20-ap-03114/pdf/USCOURTS-txsb-4_20-ap-03114-3.pdf
  24. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469
  25. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  26. IRC § 469(k); author’s calculation from notes 5, 57. https://www.law.cornell.edu/uscode/text/26/469
  27. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  28. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  29. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.4 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  30. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.6 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  31. Archrock, Inc., Form 8-K, Exhibit 99.1, “Archrock Declares Dividend and Provides Operational Update for First Quarter 2016.” https://www.sec.gov/Archives/edgar/data/0001389050/000138905016000070/a2016q1ex991aroc.htm
  32. Archrock, Inc., Form 8-K, Exhibit 99.1, “Archrock Announces Quarterly Cash Dividend and Extends Share Repurchase Authorization.” https://www.sec.gov/Archives/edgar/data/1389050/000110465924054175/tm2412801d1_ex99-1.htm
  33. Diamondback Energy, Inc. Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/1539838/000153983821000015/fang-20201231.htm
  34. Author’s calculation from Archrock, Inc., Form 10-K for FY2025, revenue-by-category table (contract operations revenue) and “Operating Highlights” table (average operating horsepower). https://www.sec.gov/Archives/edgar/data/1389050/000138905026000009/aroc-20251231x10k.htm
  35. Patterson-UTI Energy, Inc., Form 10-K for FY2016, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  36. Archrock, Inc., Form 8-K, Exhibit 99.1, “Archrock Partners to Acquire Compression Assets from Archrock, Inc.” https://www.sec.gov/Archives/edgar/data/1389050/000110465916154289/a16-20977_18k.htm
  37. Archrock, Inc., 2025 Proxy Statement (Schedule 14A), Pay Versus Performance table and note (4), p. 64. https://www.sec.gov/Archives/edgar/data/1389050/000114036125007994/ny20041499x1_def14a.htm
  38. Archrock, Inc., Form 10-K for 2021, Item 5, Comparison of Five Year Cumulative Total Return. https://www.sec.gov/Archives/edgar/data/1389050/000138905022000007/aroc-20211231x10k.htm
  39. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  40. Pub. L. 119-21, § 70301(c)(1) (IRC § 168 note). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  41. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  42. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  43. FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  44. NY DTF Form IT-225-I (2025) instructions. https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf
  45. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  46. IRC § 1245(a)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  47. IRC § 453(i)(1). https://www.law.cornell.edu/uscode/text/26/453
  48. Synthesis of IRC § 751(c) (note 58) and standard MLP return-of-capital distribution mechanics. https://www.law.cornell.edu/uscode/text/26/751
  49. IRC § 512(a)(1). https://www.law.cornell.edu/uscode/text/26/512
  50. Mustang Gas Products, LLC v. Wells Fargo Bank, N.A. (In re Alta Mesa Res., Inc.), Bankr. S.D. Tex., Adv. No. 20-03114, Memorandum Opinion at 9 (July 25, 2024), quoting Beattie v. State ex rel. Grand River Dam Auth., 41 P.3d 377, 389 (Okla. 2002). https://www.govinfo.gov/content/pkg/USCOURTS-txsb-4_20-ap-03114/pdf/USCOURTS-txsb-4_20-ap-03114-3.pdf
  51. Tex. Nat. Res. Code § 111.002. https://web.archive.org/web/20180728105825/https://statutes.capitol.texas.gov/Docs/NR/htm/NR.111.htm
  52. Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas, LLC, 363 S.W.3d 192, 200 (Tex. 2012), as quoted in Denbury Green Pipeline-Texas, LLC v. Texas Rice Land Partners, Ltd., No. 15-0225, slip op. at 6 (Tex. Jan. 6, 2017). https://txcourts.gov/media/1436866/150225.pdf
  53. 86 Fed. Reg. 63266 (Nov. 15, 2021), Document 2021-24240, Docket No. PHMSA-2011-0023. https://www.federalregister.gov/documents/2021/11/15/2021-24240/pipeline-safety-safety-of-gas-gathering-pipelines-extension-of-reporting-requirements-regulation-of
  54. Tex. Prop. Code §§ 56.002–56.003. https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  55. Tex. Prop. Code § 56.001(1). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  56. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  57. IRC § 469(k)(1). https://www.law.cornell.edu/uscode/text/26/469
  58. IRC § 751(c). https://www.law.cornell.edu/uscode/text/26/751

Notes 57 and 58 have no number in the book; other notes in this list cite them.

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Chapter 26 Oilfield real estate

55 notes

  1. Target Hospitality Corp. Form 10-K FY2025, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/1712189/000110465926026351/th-20251231x10k.htm
  2. Target Hospitality Corp. Form 10-K FY2025, Item 1A (Risk Factors). https://www.sec.gov/Archives/edgar/data/1712189/000110465926026351/th-20251231x10k.htm
  3. Target Hospitality Corp., Form 10-K for FY2020, Item 6 (Selected Financial and Other Data). https://www.sec.gov/Archives/edgar/data/1712189/000155837021003780/th-20201231x10k.htm
  4. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  5. IRC § 168(k)(2)(A)(i)(I), as amended July 4, 2025. https://www.law.cornell.edu/uscode/text/26/168
  6. Rev. Proc. 87-56, as reflected in IRS Pub. 946 (2025), Table B-1, Asset Class 00.3. https://www.irs.gov/pub/irs-pdf/p946.pdf
  7. IRC § 179(d)(1), as amended July 4, 2025. https://www.law.cornell.edu/uscode/text/26/179
  8. IRS Publication 946, How To Depreciate Property (for 2025 returns), ch. 2, What Property Does Not Qualify? Land and Improvements. https://www.irs.gov/pub/irs-pdf/p946.pdf
  9. SEC Form D, Cuero Oilfield Housing, LLC (CIK 0001602071), accession 0001602071-14-000001. https://www.sec.gov/Archives/edgar/data/1602071/000160207114000001/primary_doc.xml
  10. SEC v. North Dakota Developments, LLC, et al., No. 4:15-cv-00053 (D.N.D.), Complaint (Doc. 1), para. 25. https://www.sec.gov/files/Comp15-cv-00053Gavin.pdf
  11. Target Hospitality Corp., Form 10-K for FY2025, Segment Results table. https://www.sec.gov/Archives/edgar/data/1712189/000110465926026351/th-20251231x10k.htm
  12. SMG Industries Inc., Form 10-K for fiscal 2018, Item 1 and Item 2 (Alice facility). https://www.sec.gov/Archives/edgar/data/1426506/000114420419017308/tv517274_10k.htm
  13. Mammoth Energy Services, Inc., Form 10-K for 2017, Item 13 (Certain Relationships and Related Transactions). https://www.sec.gov/Archives/edgar/data/1679268/000167926818000010/a2017-12x3110xk.htm
  14. Forum Energy Technologies, Inc., Form 10-K for FY2025, Note 8 “Leases,” Sale-leaseback transactions. https://www.sec.gov/Archives/edgar/data/1401257/000140125726000015/fet-20251231.htm
  15. Civeo Corporation, Form 10-K for FY2025, key operating statistics table. https://www.sec.gov/Archives/edgar/data/1590584/000159058426000021/cveo-20251231.htm
  16. Civeo Corp., Form 8-K, Exhibit 99.1, “Civeo Announces Initial 2015 Operating Guidance.” https://www.sec.gov/Archives/edgar/data/0001590584/000143774914022701/ex99-1.htm
  17. Civeo Corp., Form 8-K, Exhibit 99.1, “Civeo Announces Second Quarter 2015 Earnings.” https://www.sec.gov/Archives/edgar/data/0001590584/000117184315004233/newsrelease.htm
  18. Civeo Corp., Form 8-K. https://www.sec.gov/Archives/edgar/data/1590584/000159058420000142/cveo-20201119.htm
  19. Civeo Corporation, Form 8-K (Item 7.01) filed Sept. 5, 2023, Ex. 99.1 press release “Civeo Corporation Initiates Regular Quarterly Dividend of $0.25 Per Share.” https://www.sec.gov/Archives/edgar/data/1590584/000159058423000108/civeo_dividendannouncement.htm
  20. Civeo Corporation, Form 10-K for 2022, Item 5, Dividend Information. https://www.sec.gov/Archives/edgar/data/1590584/000159058423000043/cveo-20221231.htm
  21. Civeo Corporation, Form 10-K for 2025, Note 15, Share Repurchase Programs and Dividends. https://www.sec.gov/Archives/edgar/data/1590584/000159058426000021/cveo-20251231.htm
  22. Civeo Corporation, Form 10-K for FY2016, Item 7 (MD&A – Selected Operating Statistics). https://www.sec.gov/Archives/edgar/data/0001590584/000143774917003062/oisasc20161231_10k.htm
  23. IRC § 469(c)(2). https://www.law.cornell.edu/uscode/text/26/469
  24. IRC § 469(j)(8). https://www.law.cornell.edu/uscode/text/26/469
  25. IRC § 469(i)(1)–(2). https://www.law.cornell.edu/uscode/text/26/469
  26. IRC § 469(i)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  27. Author’s calculation from IRC § 469(i)(2) and (i)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  28. Treas. Reg. § 1.469-1T(e)(3)(ii)(A). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  29. Treas. Reg. § 1.469-1T(e)(3)(ii)(B). https://www.law.cornell.edu/cfr/text/26/1.469-1T
  30. IRC § 469(h)(1). https://www.law.cornell.edu/uscode/text/26/469
  31. Treas. Reg. § 1.469-5T(a)(1)–(7). https://www.ecfr.gov/current/title-26/section-1.469-5T
  32. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  33. Target Hospitality Corp., Form 10-K for fiscal year 2022. https://www.sec.gov/Archives/edgar/data/1712189/000155837023003440/th-20221231x10k.htm
  34. Author’s calculation from Forum Energy Technologies, Inc., Form 10-K for FY2025, Note 8 “Leases” (see note 14 for the underlying rent and proceeds figures). https://www.sec.gov/Archives/edgar/data/1401257/000140125726000015/fet-20251231.htm
  35. Target Hospitality Corp., Form 10-K for 2025, Item 7, Segment Results. https://www.sec.gov/Archives/edgar/data/1712189/000110465926026351/th-20251231x10k.htm
  36. Target Hospitality Corp., Form 10-K for fiscal year 2019. https://www.sec.gov/Archives/edgar/data/1712189/000155837020002582/th-20191231x10k.htm
  37. Target Hospitality Corp., Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/1712189/000155837021003780/th-20201231x10k.htm
  38. Treas. Reg. § 1.167(a)-2. https://www.law.cornell.edu/cfr/text/26/1.167(a)-2
  39. IRC § 168(c). https://www.law.cornell.edu/uscode/text/26/168
  40. Pub. L. 119-21, § 70301(c)(1) (IRC § 168 note). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  41. Rev. Proc. 2025-32 sec. 3.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  42. IRC § 179(e). https://www.law.cornell.edu/uscode/text/26/179
  43. IRC § 179(d)(1). https://www.law.cornell.edu/uscode/text/26/179
  44. IRC § 50(b)(2). https://www.law.cornell.edu/uscode/text/26/50
  45. IRS Publication 5653, Cost Segregation Audit Techniques Guide (2-2025), Ch. 2, Section L, ¶(1). https://www.irs.gov/pub/irs-pdf/p5653.pdf
  46. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  47. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  48. IRC § 1(h)(1)(E). https://www.law.cornell.edu/uscode/text/26/1
  49. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  50. IRC § 1031(a)(1). https://www.law.cornell.edu/uscode/text/26/1031
  51. SEC Litigation Release No. 23252, SEC v. North Dakota Developments, LLC, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23252
  52. SEC v. North Dakota Developments, LLC, et al., No. 4:15-cv-00053-DLH-CSM (D.N.D.), Judgment as to Robert L. Gavin, Doc. 162 (filed Apr. 24, 2018). https://www.sec.gov/files/Judg15-cv-00053Gavin.pdf
  53. SEC v. North Dakota Developments, LLC, et al., No. 4:15-cv-00053-DLH-CSM (D.N.D.), Judgment as to Daniel J. Hogan, Doc. 161 (filed Apr. 24, 2018). https://www.sec.gov/files/Judg15-cv-00053Hogan.pdf
  54. SEC v. North Dakota Developments, LLC, et al., No. 4:15-cv-00053-DLH-CSM (D.N.D.), Final Judgment as to Defendant North Dakota Developments, LLC and Relief Defendants, Doc. 210 (June 1, 2023), Part IV and Part XII. https://storage.courtlistener.com/recap/gov.uscourts.ndd.30892/gov.uscourts.ndd.30892.210.0.pdf
  55. SEC v. North Dakota Developments, LLC, No. 4:15-cv-00053 (D.N.D.), docket entry 211 (June 16, 2023) and termination entry (June 21, 2023), via CourtListener RECAP docket 4305687. https://www.courtlistener.com/docket/4305687/211/united-states-securities-and-exchange-commission-v-north-dakota/

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Chapter 27 Buying or starting a service company

69 notes

  1. ProPetro Holding Corp., Prospectus (Form 424B4), cover page (filed with SEC Mar. 20, 2017). https://www.sec.gov/Archives/edgar/data/1680247/000104746917001781/a2231420z424b4.htm
  2. ProPetro Holding Corp. Form 8-K, Exhibit 99.3, Nov. 1, 2022. https://www.sec.gov/Archives/edgar/data/1680247/000168024722000028/exhibit993announcementofsi.htm
  3. ProPetro Holding Corp., Form 10-K for fiscal year ended December 31, 2023, Note 11 “Reportable Segment Information”; Item 7 (wireline segment revenue discussion). https://www.sec.gov/Archives/edgar/data/1680247/000168024724000051/pump-20231231.htm
  4. Weatherford International plc, Disclosure Statement for Joint Prepackaged Plan of Reorganization for Weatherford International plc and its Affiliate Debtors Under Chapter 11 of the Bankruptcy Code, Ex. 99.1 to Form 8-K, § D.1 (filed with SEC June 28, 2019). https://www.sec.gov/Archives/edgar/data/1603923/000110465919038313/a19-12248_1ex99d1.htm
  5. Liberty Oilfield Services Inc., Prospectus (Form 424B4), Management (filed with SEC Jan. 16, 2018). https://www.sec.gov/Archives/edgar/data/1694028/000119312518010251/d313047d424b4.htm
  6. Cactus, Inc., Registration Statement (Form S-1), Management (filed with SEC Jan. 12, 2018). https://www.sec.gov/Archives/edgar/data/1699136/000104746918000178/a2234259zs-1.htm
  7. Cactus, Inc., Prospectus (Form 424B4), cover page (filed with SEC Feb. 9, 2018); Cactus, Inc., Amendment No. 2 to Registration Statement (Form S-1/A), cover page (filed with SEC Jan. 29, 2018). https://www.sec.gov/Archives/edgar/data/1699136/000104746918000465/a2234305zs-1a.htm
  8. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  9. IRC § 168(k)(2)(A)(ii) and (k)(2)(E)(i). https://www.law.cornell.edu/uscode/text/26/168
  10. IRC § 197(a). https://www.law.cornell.edu/uscode/text/26/197
  11. IRC § 1202(e)(3)(A)–(E). https://www.law.cornell.edu/uscode/text/26/1202
  12. Tex. Tax Code § 191.081. https://tcss.legis.texas.gov/resources/TX/pdf/TX.191.pdf
  13. Tex. Tax Code § 191.083. https://tcss.legis.texas.gov/resources/TX/pdf/TX.191.pdf
  14. 34 Tex. Admin. Code § 3.324(b)(1). https://www.law.cornell.edu/regulations/texas/34-Tex-Admin-Code-SS-3-324
  15. RPC, Inc., Form 10-K for fiscal year ended December 31, 2025, Notes to Consolidated Financial Statements, revenue note, “Payment terms.” https://www.sec.gov/Archives/edgar/data/742278/000110465926021480/res-20251231x10k.htm
  16. Patterson-UTI Energy, Inc., Form 10-K for fiscal year ended December 31, 2025, Notes to Consolidated Financial Statements, “Accounts Receivable and Contract Liabilities.” https://www.sec.gov/Archives/edgar/data/889900/000088990026000013/pten-20251231.htm
  17. Ranger Energy Services, Inc., Form 10-K for fiscal year ended December 31, 2025, Item 7A “Credit Risk” and revenue recognition note. https://www.sec.gov/Archives/edgar/data/1699039/000162828026015248/rngr-20251231.htm
  18. Tex. Prop. Code §§ 56.002–56.003. https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  19. Tex. Prop. Code § 56.021(a). https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  20. Tex. Prop. Code § 56.021(b). https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  21. Okla. Stat. tit. 42, 144. https://oksenate.gov/sites/default/files/2022-05/os42.pdf
  22. ProPetro Holding Corp., Prospectus Supplement (Form 424B3) (filed with SEC May 10, 2018). https://www.sec.gov/Archives/edgar/data/1680247/000104746918003740/a2235708z424b3.htm
  23. Cactus, Inc., Prospectus (Form 424B4), Prospectus Summary (filed with SEC Feb. 9, 2018). https://www.sec.gov/Archives/edgar/data/1699136/000104746918000703/a2234486z424b4.htm
  24. Watson v. United States, No. 11-1589 (8th Cir. Feb. 21, 2012). https://cases.justia.com/federal/appellate-courts/ca8/11-1589/11-1589-2012-02-21.pdf
  25. Treas. Reg. § 1.469-5T(a)(1). https://www.ecfr.gov/current/title-26/section-1.469-5T
  26. IRC § 1202(a) as amended by Pub. L. 119-21. https://uscode.house.gov/view.xhtml?req=(title:26%20section:1202%20edition:prelim)
  27. Liberty Oilfield Services Holdings LLC, SEC Form D, filed Oct. 25, 2016. https://www.sec.gov/Archives/edgar/data/1687802/000089914016001660/primary_doc.xml
  28. SCF-VII(A), L.P., SEC Form D, filed April 14, 2016. https://www.sec.gov/Archives/edgar/data/1672213/000167221316000001/primary_doc.xml
  29. U.S. Census Bureau, 2022 NAICS Descriptions, subsector 213 Support Activities for Mining; IRS, Statistics of Income, Corporation Income Tax Returns Complete Report 2022 (Publication 16), Appendix A, code 213110. https://www.census.gov/naics/2022NAICS/2022_NAICS_Descriptions.xlsx
  30. IRS, Statistics of Income, Corporation Complete Report 2022 (Publication 16, Rev. 9-2025), Table 1 “Selected Income Statement, Balance Sheet and Tax Items ... by Minor Industry, Tax Year 2022” (file 22co01ccr.xlsx). https://www.irs.gov/pub/irs-soi/22co01ccr.xlsx
  31. IRS, Statistics of Income, Corporation Complete Report, Table 1 “Selected Income Statement, Balance Sheet and Tax Items ... by Minor Industry, Tax Year 2020” (file 20co01ccr.xlsx). https://www.irs.gov/pub/irs-soi/20co01ccr.xlsx
  32. IRS, Statistics of Income, Corporation Complete Report, Table 1 “Selected Income Statement, Balance Sheet and Tax Items ... by Minor Industry, Tax Year 2018” (file 18co01ccr.xlsx). https://www.irs.gov/pub/irs-soi/18co01ccr.xlsx
  33. IRS, Statistics of Income, Corporation Complete Report, Table 1 “Selected Income Statement, Balance Sheet and Tax Items ... by Minor Industry, Tax Year 2019” (file 19co01ccr.xlsx). https://www.irs.gov/pub/irs-soi/19co01ccr.xlsx
  34. IRS, Statistics of Income, Corporation Complete Report, Table 1 “Selected Income Statement, Balance Sheet and Tax Items ... by Minor Industry, Tax Year 2021” (file 21co01ccr.xlsx). https://www.irs.gov/pub/irs-soi/21co01ccr.xlsx
  35. ProPetro Holding Corp., Form 10-K for fiscal year ended December 31, 2023, Note 11 “Reportable Segment Information.” https://www.sec.gov/Archives/edgar/data/1680247/000168024724000051/pump-20231231.htm
  36. ProPetro Holding Corp. Form 10-K FY2020, MD&A. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  37. IRC § 197(d)(1). https://www.law.cornell.edu/uscode/text/26/197
  38. Pub. L. 119-21, § 70301(c)(1) (IRC § 168 note). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  39. Rev. Proc. 2025-32 sec. 3.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  40. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  41. IRC § 1245(a)(1). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1245&num=0&edition=prelim
  42. IRC § 11(b). https://www.law.cornell.edu/uscode/text/26/11
  43. IRC § 199A(i), as amended by Pub. L. 119-21. https://www.law.cornell.edu/uscode/text/26/199A
  44. IRC § 1202(c)(1). https://www.law.cornell.edu/uscode/text/26/1202
  45. IRC § 1202(c)(1)(B). https://www.law.cornell.edu/uscode/text/26/1202
  46. IRC § 1202(c)(2)(A). https://www.law.cornell.edu/uscode/text/26/1202
  47. IRC § 1202(e)(1)(A). https://www.law.cornell.edu/uscode/text/26/1202
  48. IRC § 1202(b)(4). https://www.law.cornell.edu/uscode/text/26/1202
  49. IRC § 1202(d)(1). https://www.law.cornell.edu/uscode/text/26/1202
  50. IRC § 1202(b), (d), as amended by Pub. L. No. 119-21, sec. 70431 (2025). https://www.law.cornell.edu/uscode/text/26/1202
  51. FTS International, Inc., Press Release, Ex. 99.1 to Form 8-K (filed with SEC Aug. 24, 2020). https://www.sec.gov/Archives/edgar/data/1529463/000110465920097795/tm2029229d1_ex99-1.htm
  52. FTS International, Inc., Press Release, Ex. 99.2 to Form 8-K (filed with SEC Oct. 22, 2021). https://www.sec.gov/Archives/edgar/data/1529463/000095010321016242/dp160164_ex9902.htm
  53. FTS International, Inc., Form 8-K, Item 2.01 (filed with SEC Mar. 7, 2022). https://www.sec.gov/Archives/edgar/data/1529463/000110465922030767/tm228484d1_8k.htm
  54. Superior Energy Services, Inc., Form 8-K, Item 1.01 (Agreement and Plan of Merger), Item 1.02 and Item 3.02 (filed with SEC Feb. 3, 2021). https://www.sec.gov/Archives/edgar/data/886835/000119312521026071/d27671d8k.htm
  55. Superior Energy Services, Inc., Form 8-K, Introductory Note (filed with SEC Feb. 3, 2021). https://www.sec.gov/Archives/edgar/data/886835/000119312521026071/d27671d8k.htm
  56. Basic Energy Services, Inc., Form 8-K (filed with SEC Oct. 8, 2021). https://www.sec.gov/Archives/edgar/data/1109189/000110465921124316/tm2129540d1_8k.htm
  57. ProPetro Holding Corp. Form 10-K FY2025, Item 1 (Business – Commodity Price and Other Economic Conditions); repeated in Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/1680247/000168024726000028/pump-20251231.htm
  58. Author’s calculation from notes 36, 59.
  59. ProPetro Holding Corp. Form 10-K FY2020, Item 1A Risk Factors. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  60. Patterson-UTI Energy, Inc., Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/889900/000156459021005045/pten-10k_20201231.htm
  61. Patterson-UTI Energy, Inc., Form 10-K for FY2016, Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  62. Patterson-UTI Energy, Inc., Form 10-K for FY2016, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/0000889900/000156459017001437/pten-10k_20161231.htm
  63. ProPetro Holding Corp. Form 10-K FY2025, Item 1 (Customers). https://www.sec.gov/Archives/edgar/data/1680247/000168024726000028/pump-20251231.htm
  64. Tex. Civ. Prac. & Rem. Code § 127.003(a). https://tcss.legis.texas.gov/resources/CP/pdf/CP.127.pdf
  65. Tex. Civ. Prac. & Rem. Code § 127.004. https://tcss.legis.texas.gov/resources/CP/pdf/CP.127.pdf
  66. Tex. Civ. Prac. & Rem. Code § 127.005(c). https://tcss.legis.texas.gov/resources/CP/pdf/CP.127.pdf
  67. Okla. Stat. tit. 15, 221(B). https://oksenate.gov/sites/default/files/2019-12/os15.pdf
  68. OSH Act 5(a)(1), 29 U.S.C. § 654(a)(1). https://www.osha.gov/laws-regs/oshact/section5-duties
  69. Tex. Tax Code § 191.088. https://tcss.legis.texas.gov/resources/TX/pdf/TX.191.pdf

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Chapter 28 Minority stakes and private equity

51 notes

  1. Ritchie v. Rupe, 443 S.W.3d 856 (Tex. 2014) (Guzman, J., dissenting), Background. https://storage.courtlistener.com/pdf/2014/06/20/lee_c._ritchie_v._ann_caldwell_rupe_as_trustee_for_the_dallas_gordon_rupe.pdf
  2. Ritchie v. Rupe, No. 05-08-00615-CV (Tex. App.—Dallas Jan. 12, 2016, memo. op. on remand). https://600commerce.com/wp-content/uploads/2016/01/Ritchie-v.-Rupe.pdf
  3. Tex. Bus. Orgs. Code § 101.401. https://tcss.legis.texas.gov/resources/BO/pdf/BO.101.pdf
  4. Liberty Oilfield Services Holdings LLC, SEC Form D, filed Oct. 25, 2016. https://www.sec.gov/Archives/edgar/data/1687802/000089914016001660/primary_doc.xml
  5. Liberty Oilfield Services Inc., Prospectus (Form 424B4), cover page (filed with SEC Jan. 16, 2018). https://www.sec.gov/Archives/edgar/data/1694028/000119312518010251/d313047d424b4.htm
  6. FTS International, Inc., Press Release, Ex. 99.1 to Form 8-K (filed with SEC Aug. 24, 2020). https://www.sec.gov/Archives/edgar/data/1529463/000110465920097795/tm2029229d1_ex99-1.htm
  7. FTS International, Inc., Press Release, Ex. 99.2 to Form 8-K (filed with SEC Oct. 22, 2021). https://www.sec.gov/Archives/edgar/data/1529463/000095010321016242/dp160164_ex9902.htm
  8. FTS International, Inc., Form 8-K, Item 2.01 (filed with SEC Mar. 7, 2022). https://www.sec.gov/Archives/edgar/data/1529463/000110465922030767/tm228484d1_8k.htm
  9. IRC § 1061(a). https://www.law.cornell.edu/uscode/text/26/1061
  10. SCF-VII(A), L.P., SEC Form D, filed April 14, 2016. https://www.sec.gov/Archives/edgar/data/1672213/000167221316000001/primary_doc.xml
  11. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  12. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  13. SEC Form D (SEC1972, rev. 5/17), “Item-by-Item Instructions,” Item 11. https://www.sec.gov/files/formd.pdf
  14. SEC Investment Adviser Public Disclosure (IAPD) record, Firm ID 107599. https://api.adviserinfo.sec.gov/search/firm/107599
  15. Citizen Energy Partners Opportunities Fund II, L.P. – KC Capital Access Fund, SEC Form D, filed May 30, 2024. https://www.sec.gov/Archives/edgar/data/2024902/000202490224000001/primary_doc.xml
  16. 15 U.S.C. § 80a-2(a)(51)(A). https://uscode.house.gov/view.xhtml?req=(title:15%20section:80a-2%20edition:prelim)
  17. 17 C.F.R. § 230.501(a)(5)–(6). https://www.law.cornell.edu/cfr/text/17/230.501
  18. Kayne Anderson Capital Advisors, L.P. Form ADV Part 2A Brochure, March 27, 2026, Item 5 – Fees and Compensation, “Closed-end Funds.” https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1029129
  19. Ritchie v. Rupe, No. 11-0447, 443 S.W.3d 856 (Tex. June 20, 2014) (opinion of the Court, Boyd, J.). https://search.txcourts.gov/SearchMedia.aspx?MediaVersionID=84388e68-a8a1-468a-9e8a-6ab2ce235ada&coa=cossup&DT=OPINION&MediaID=2406ae51-8c91-42f9-b6e4-822368ae344c
  20. Texas Business Organizations Code Section 101.205, Distribution on Withdrawal. https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.205
  21. Texas Business Organizations Code Section 101.107, Withdrawal or Expulsion of Member Prohibited. https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.107
  22. Treas. Reg. § 1.469-5T(a)(1). https://www.ecfr.gov/current/title-26/section-1.469-5T
  23. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  24. Treas. Reg. § 1.469-5T(a)(1)–(7). https://www.ecfr.gov/current/title-26/section-1.469-5T
  25. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  26. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  27. CalPERS, Private Equity Program (PEP) Fund Performance Review. https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance
  28. Basic Energy Services, Inc., Form 8-K (filed with SEC Oct. 8, 2021). https://www.sec.gov/Archives/edgar/data/1109189/000110465921124316/tm2129540d1_8k.htm
  29. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  30. IRC § 1411(a)(1), (b). https://www.law.cornell.edu/uscode/text/26/1411
  31. Treas. Reg. § 1.1411-5(a)(1), (b)(1)(ii). https://www.ecfr.gov/current/title-26/section-1.1411-5
  32. IRC § 1402(a)(13). https://www.law.cornell.edu/uscode/text/26/1402
  33. IRC § 1061(c)(4)(B). https://www.law.cornell.edu/uscode/text/26/1061
  34. IRC § 11(b). https://www.law.cornell.edu/uscode/text/26/11
  35. IRC § 1202(e)(3)(A)–(E). https://www.law.cornell.edu/uscode/text/26/1202
  36. Weatherford International plc, Disclosure Statement for Joint Prepackaged Plan of Reorganization, Ex. 99.1 to Form 8-K (filed with SEC June 28, 2019). https://www.sec.gov/Archives/edgar/data/1603923/000110465919038313/a19-12248_1ex99d1.htm
  37. Superior Energy Services, Inc., Press Release, Ex. 99.1 to Form 8-K (filed with SEC Dec. 7, 2020). https://www.sec.gov/Archives/edgar/data/886835/000119312520311144/d63085dex991.htm
  38. Superior Energy Services, Inc., Form 8-K, Introductory Note (filed with SEC Feb. 3, 2021). https://www.sec.gov/Archives/edgar/data/886835/000119312521026071/d27671d8k.htm
  39. Superior Energy Services, Inc., Form 8-K, Item 1.01 (Agreement and Plan of Merger), Item 1.02 and Item 3.02 (filed with SEC Feb. 3, 2021). https://www.sec.gov/Archives/edgar/data/886835/000119312521026071/d27671d8k.htm
  40. Basic Energy Services, Inc., Press Release, Ex. 99.2 to Form 8-K (filed with SEC Dec. 12, 2016). https://www.sec.gov/Archives/edgar/data/0001109189/000110918916000369/ex99220161209pressrelease.htm
  41. Basic Energy Services, Inc., Press Release, Ex. 99.1 to Form 8-K (filed with SEC Aug. 18, 2021). https://www.sec.gov/Archives/edgar/data/1109189/000110465921107217/tm2125297d1_ex99-1.htm
  42. Weatherford International plc, Disclosure Statement for Joint Prepackaged Plan of Reorganization for Weatherford International plc and its Affiliate Debtors Under Chapter 11 of the Bankruptcy Code, Ex. 99.1 to Form 8-K, § D.1 (filed with SEC June 28, 2019). https://www.sec.gov/Archives/edgar/data/1603923/000110465919038313/a19-12248_1ex99d1.htm
  43. Oklahoma Statutes Title 18, Section 2036(A), Events Causing Cessation of Membership; Withdrawal; Death or Incapacity. https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=67206
  44. Oklahoma Statutes Title 18, Section 2036(D), Events Causing Cessation of Membership; Withdrawal; Death or Incapacity. https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=67206
  45. Texas Business Organizations Code Section 11.314, Involuntary Winding Up and Termination of Partnership or Limited Liability Company. https://statutes.capitol.texas.gov/Docs/BO/htm/BO.11.htm#11.314
  46. Oklahoma Statutes Title 18, Section 2038, Dissolution Upon Application by Member – Decree. https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=67208
  47. ProPetro Holding Corp. Form 10-K FY2020, Item 1A Risk Factors. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  48. ProPetro Holding Corp. Form 10-K FY2020, MD&A. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  49. SEC EDGAR Full Text Search FAQ. https://www.sec.gov/edgar/search/efts-faq.html
  50. SEC, “Oil and Gas Scams: Common Red Flags and Steps You Can Take to Protect Yourself.” https://www.sec.gov/investor/pubs/oilgasscams.htm
  51. Investment Adviser Public Disclosure (IAPD) firm record for EnCap Investments L.P. (CRD #160695, SEC file 802-74807). https://adviserinfo.sec.gov/firm/summary/160695

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Chapter 29 Energy stocks, ETFs and futures

41 notes

  1. ALPS ETF Trust Form 485BPOS (Alerian MLP ETF prospectus). https://www.sec.gov/Archives/edgar/data/1414040/000119312514121500/d700524d485bpos.htm
  2. ALPS Advisors, Alerian MLP ETF Tax Update press release. https://www.alpsfunds.com/about/press-releases/alerian-mlp-etf-tax-update-20250529
  3. Select Sector SPDR Trust, State Street Energy Select Sector SPDR ETF (XLE), Form 497K Summary Prospectus dated January 31, 2026, “Fees and Expenses of the Fund” table. https://www.sec.gov/Archives/edgar/data/1064641/000119312526031727/d46801d497k.htm
  4. United States Oil Fund, LP Prospectus (Form 424B3), Material U.S. Federal Income Tax Considerations. https://www.sec.gov/Archives/edgar/data/1327068/000207187626000128/i26211_uso-424b3.htm
  5. SEC Release No. 11006, para. 19. https://www.sec.gov/files/litigation/admin/2021/33-11006.pdf
  6. IRS, Corporations (irs.gov business pages), accessed Oct. 1, 2026. https://www.irs.gov/businesses/small-businesses-self-employed/corporations
  7. United States Oil Fund, LP Form 10-K FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  8. Select Sector SPDR Trust, Form N-CSRS for the six months ended March 31, 2026, Financial Highlights, State Street Energy Select Sector SPDR ETF; Note 13 (Stock Split). https://www.sec.gov/Archives/edgar/data/1064641/000119312526256847/d128483dncsrs.htm
  9. IRC § 11(b). https://www.law.cornell.edu/uscode/text/26/11
  10. United States Oil Fund, LP Form 10-K FY2025, Note 1 – Organization and Business. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  11. ProPetro Holding Corp. Form 10-K FY2025, Item 1 (Business – Commodity Price and Other Economic Conditions); repeated in Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/1680247/000168024726000028/pump-20251231.htm
  12. SPDR Series Trust, SPDR S&P Oil & Gas Exploration & Production ETF (XOP), Form 497K Summary Prospectus dated October 31, 2025, “Fees and Expenses of the Fund” table. https://www.sec.gov/Archives/edgar/data/1064642/000119312525256789/d51831d497k.htm
  13. IRC § 469(k)(2) (definition of a publicly traded partnership). https://www.law.cornell.edu/uscode/text/26/469
  14. United States Oil Fund, LP Form 10-K FY2025, Item 5. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  15. United States Oil Fund, LP Form 10-K FY2025, Item 1A – Risk Factors (“Natural forces in the oil futures market known as backwardation and contango may increase USO’s tracking error and/or negatively impact total return”). https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  16. CFTC, Futures Glossary, entry for “Margin.” https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/CFTCGlossary/index.htm
  17. SEC Release No. 11006, para. 15. https://www.sec.gov/files/litigation/admin/2021/33-11006.pdf
  18. SEC Release No. 11006 (Securities Act), Order Instituting Cease-and-Desist Proceedings, File No. 3-20648, In the Matter of United States Commodity Funds LLC and United States Oil Fund, LP, Nov. 8, 2021, para. 14. https://www.sec.gov/files/litigation/admin/2021/33-11006.pdf
  19. CFTC Docket No. 22-06, Order Instituting Proceedings, In the Matter of United States Commodity Funds LLC, Nov. 8, 2021, Findings section D.2. https://www.cftc.gov/media/6716/enfunitedstatescommodityorder110821/download
  20. SEC Release No. 11006, para. 6. https://www.sec.gov/files/litigation/admin/2021/33-11006.pdf
  21. United States Oil Fund, LP, Form 10-K for FY2020, Item 5 (Market for Registrant’s Units). https://www.sec.gov/Archives/edgar/data/1327068/000110465921029202/uso-20201231x10k.htm
  22. SEC Release No. 11006, Order para. B; CFTC Docket No. 22-06, Order Section VI.B. https://www.sec.gov/files/litigation/admin/2021/33-11006.pdf
  23. United States Oil Fund, LP, Form 10-K for FY2021, Legal Proceedings. https://www.sec.gov/Archives/edgar/data/1327068/000141057822000223/uso-20211231x10k.htm
  24. United States Oil Fund, LP, Form 10-K for FY2025, Item 3. Legal Proceedings, “In re: United States Oil Fund, LP Securities Litigation.” https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  25. United States Oil Fund, LP, Form 10-Q for the quarter ended June 30, 2026, Legal Proceedings, “In re: United States Oil Fund, LP Securities Litigation.” https://www.sec.gov/Archives/edgar/data/1327068/000110465926092623/uso-20260630x10q.htm
  26. United States Oil Fund, LP, Form 10-K for FY2020, Statements of Financial Condition. https://www.sec.gov/Archives/edgar/data/1327068/000110465921029202/uso-20201231x10k.htm
  27. IRC § 1256(a)(3). https://www.law.cornell.edu/uscode/text/26/1256
  28. 17 C.F.R. § 1.55(b)(11) – Public disclosures by futures commission merchants; mandatory “RISK DISCLOSURE STATEMENT” text. https://www.govinfo.gov/content/pkg/CFR-2025-title17-vol1/pdf/CFR-2025-title17-vol1-sec1-55.pdf
  29. IRS Pub. 925 (2025), “Portfolio income.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  30. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  31. Kayne Anderson MLP Investment Company, Form N-CSR for fiscal year ended Nov. 30, 2015, Financial Highlights section. https://www.sec.gov/Archives/edgar/data/0001293613/000119312516442364/d106297dncsr.htm
  32. Kayne Anderson MLP Investment Company, Form N-CSR for fiscal year ended Nov. 30, 2016. https://www.sec.gov/Archives/edgar/data/0001293613/000119312517022019/d277100dncsr.htm
  33. Rev. Proc. 2025-32 sec. 3.03 (IRC § 1(h), 1(j)(5)). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  34. Treas. Reg. § 1.1411-4(a)(1)(i). https://www.ecfr.gov/current/title-26/section-1.1411-4
  35. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  36. IRS, Instructions for Form 1120 (2025), Line 21. Depletion. https://www.irs.gov/instructions/i1120
  37. IRS, Instructions for Form 1120 (2025), “Section 291 limitations.” https://www.irs.gov/instructions/i1120
  38. Patterson-UTI Energy, Inc., Form 10-K for FY2020, Item 7 (MD&A). https://www.sec.gov/Archives/edgar/data/889900/000156459021005045/pten-10k_20201231.htm
  39. ProPetro Holding Corp. Form 10-K FY2020, MD&A. https://www.sec.gov/Archives/edgar/data/1680247/000168024721000010/pump-20201231.htm
  40. ProPetro Holding Corp. Form 10-K FY2025, Item 1 (Customers). https://www.sec.gov/Archives/edgar/data/1680247/000168024726000028/pump-20251231.htm
  41. Dallas Fed Energy Survey, Q1 2026 (2601). https://www.dallasfed.org/research/surveys/des/2026/2601

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Chapter 30 MLPs and royalty trusts

59 notes

  1. Permian Basin Royalty Trust Form 8-K dated May 8, 2026, Item 1.01. https://www.sec.gov/Archives/edgar/data/319654/000119312526214698/2026-05_pbt_rslt_of_hear.htm
  2. Permian Basin Royalty Trust Form 10-K FY2025 (filed March 27, 2026), Item 1 – Business. https://www.sec.gov/Archives/edgar/data/319654/000119312526128561/pbt_10-k_2025-12-31.htm
  3. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Item 5 (Market for Registrant’s Units). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  4. PBT Land and Minerals, Inc. Form S-4/A (filed September 24, 2026), proxy statement/prospectus cover and Q&A; see also Permian Basin Royalty Trust Form 8-K dated July 28, 2026, Item 7.01. https://www.sec.gov/Archives/edgar/data/2142855/000121390026102800/ea0297753-04.htm
  5. Permian Basin Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/319654/000119312526128561/pbt_10-k_2025-12-31.htm
  6. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Part I, Item 1 (Business). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  7. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Selected Financial Data. https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  8. San Juan Basin Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/319655/000119312526128710/sjt_10-k_2025-12-31.htm
  9. Sabine Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/710752/000119312526081251/sbr_10-k_2025-12-31.htm
  10. IRC § 469(k)(2) (definition of a publicly traded partnership). https://www.law.cornell.edu/uscode/text/26/469
  11. IRS, Instructions for Form 1065 (2025), “When To File.” https://www.irs.gov/instructions/i1065
  12. Treas. Reg. § 1.6031(b)-1T(b), Time for furnishing statement. https://www.ecfr.gov/current/title-26/section-1.6031(b)-1T
  13. IRS, Instructions for Form 7004 (12/2025), “Maximum extension period.” https://www.irs.gov/instructions/i7004
  14. IRS, 2025 Instructions for Form 1040 and 1040-SR, “When and Where Should You File?” https://www.irs.gov/instructions/i1040gi
  15. Synthesis of IRC § 751(c) (note 18) and standard MLP return-of-capital distribution mechanics. https://www.law.cornell.edu/uscode/text/26/751
  16. Pub. L. 119-21, § 70105(b)(1), rewriting IRC § 199A(i); U.S. Code editorial note (“Amendments 2025”) under IRC § 199A. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section199A&num=0&edition=prelim
  17. IRC § 469(k)(1). https://www.law.cornell.edu/uscode/text/26/469
  18. IRC § 751(c). https://www.law.cornell.edu/uscode/text/26/751
  19. PBT Land and Minerals, Inc., Form S-4/A filed September 24, 2026, Unaudited Pro Forma Condensed Combined Financial Information, Note 2 (Preliminary Purchase Price Consideration). https://www.sec.gov/Archives/edgar/data/2142855/000121390026102800/ea0297753-04.htm
  20. Treas. Reg. § 1.671-5; T.D. 9241, 71 Fed. Reg. 4002 (Jan. 24, 2006) (final WHFIT reporting regulations), as amended by T.D. 9308 (Dec. 29, 2006). https://www.irs.gov/pub/irs-regs/td9241.pdf
  21. Sabine Royalty Trust, Form 10-K for FY2025, Item 2. Properties (reserve study discussion). https://www.sec.gov/Archives/edgar/data/710752/000119312526081251/sbr_10-k_2025-12-31.htm
  22. 26 C.F.R. § 301.7701-4(c)(1), Certain investment trusts. https://www.ecfr.gov/current/title-26/section-301.7701-4
  23. Permian Basin Royalty Trust Form 10-K FY2025 (filed March 27, 2026), Item 8 financial statements and related-party trustee fee table with footnote (1). https://www.sec.gov/Archives/edgar/data/319654/000119312526128561/pbt_10-k_2025-12-31.htm
  24. IRC § 7704(c). https://uscode.house.gov/view.xhtml?req=(title:26%20section:7704%20edition:prelim)
  25. IRC § 7704(d)(1)(E). https://uscode.house.gov/view.xhtml?req=(title:26%20section:7704%20edition:prelim)
  26. IRC § 512(b)(4). https://www.law.cornell.edu/uscode/text/26/512
  27. United States Oil Fund, LP Form 10-K FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  28. United States Oil Fund, LP Form 10-K FY2025, Note 1 – Organization and Business. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  29. IRC § 469(k); author’s calculation from notes 10, 17. https://www.law.cornell.edu/uscode/text/26/469
  30. IRC § 469(e)(1); Treas. Reg. § 1.469-2T(c)(3)(i). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  31. Linn Energy, Inc., Form S-1 Registration Statement, filed May 12, 2017. https://www.sec.gov/Archives/edgar/data/1326428/000119312517148591/d386160ds1.htm
  32. LinnCo, LLC, Form 8-K filed under Rule 425 (news release re: settlement agreement and exchange offer), April 5, 2016. https://www.sec.gov/Archives/edgar/data/1326428/000119312516531120/d176733d425.htm
  33. Kinder Morgan, Inc., Form 8-K, Exhibit 99.1 press release, filed Jan. 20, 2016. https://www.sec.gov/Archives/edgar/data/1506307/000150630716000067/kmiq420158-kexh991.htm
  34. LINN Energy, LLC, Form 8-K, Item 3.01, filed May 16, 2016. https://www.sec.gov/Archives/edgar/data/1326428/000132642816000084/linedelisting5-16x16.htm
  35. LinnCo, LLC, Form S-4 Registration Statement, filed March 22, 2016, Summary section. https://www.sec.gov/Archives/edgar/data/1549756/000119312516513588/d152436ds4.htm
  36. LINN Energy, LLC, Form 8-K, Item 1.01, filed May 11, 2016. https://www.sec.gov/Archives/edgar/data/1326428/000119312516587315/d189000d8k.htm
  37. United States Courts, Chapter 11 – Bankruptcy Basics, accessed Oct. 1, 2026. https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics
  38. Kinder Morgan, Inc., Form 10-K for FY2015, cover page and Items 1 and 2. https://www.sec.gov/Archives/edgar/data/1506307/000150630716000072/kmi-2015x10k.htm
  39. Kayne Anderson MLP Investment Company, Form N-CSR (Certified Shareholder Report) for fiscal year ended Nov. 30, 2015, Letter to Stockholders/Performance Review. https://www.sec.gov/Archives/edgar/data/0001293613/000119312516442364/d106297dncsr.htm
  40. Kayne Anderson MLP Investment Company, Form N-CSR for fiscal year ended Nov. 30, 2016. https://www.sec.gov/Archives/edgar/data/0001293613/000119312517022019/d277100dncsr.htm
  41. ALPS ETF Trust, Alerian MLP ETF (AMLP), Form 497K Summary Prospectus dated March 31, 2026, “Average Annual Total Returns.” https://www.sec.gov/Archives/edgar/data/1414040/000139834426006163/fp0097939-40_497k.htm
  42. Permian Basin Royalty Trust, Form 10-K FY2019, Exhibit 99.1 (Cawley, Gillespie & Associates, Inc. reserve report dated January 21, 2020). https://www.sec.gov/Archives/edgar/data/319654/000119312520074441/d825620dex991.htm
  43. IRC § 199A(i) (pre-OBBBA text, per U.S. Code historical/amendment notes). https://www.law.cornell.edu/uscode/text/26/199A
  44. IRC § 751(a). https://www.law.cornell.edu/uscode/text/26/751
  45. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  46. Treas. Reg. § 1.1411-4(a)(1)(i). https://www.ecfr.gov/current/title-26/section-1.1411-4
  47. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  48. IRC § 512(a)(1). https://www.law.cornell.edu/uscode/text/26/512
  49. IRC § 512(b)(2). https://www.law.cornell.edu/uscode/text/26/512
  50. IRC § 514(a)(1). https://www.law.cornell.edu/uscode/text/26/514
  51. IRS Instructions for Form 990-T (2024). https://www.irs.gov/instructions/i990t
  52. IRS Instructions for Form 990-T (2025), Who Must File, item 4 (IRAs and similar accounts) and following caution. https://www.irs.gov/instructions/i990t
  53. SEC, Annual Meetings and Proxy Requirements (Going Public small-business guidance), accessed Oct. 1, 2026. https://www.sec.gov/smallbusiness/goingpublic/annualmeetings
  54. Texas Senate Research Center, Bill Analysis, H.B. 654, 87th Legislature (Engrossed, April 13, 2021), Author’s / Sponsor’s Statement of Intent. https://capitol.texas.gov/tlodocs/87R/analysis/html/HB00654E.htm
  55. Texas Senate Research Center, Bill Analysis, H.B. 654, 87th Legislature (Engrossed, April 13, 2021), Section-by-Section Analysis, sec. 112.036(c). https://capitol.texas.gov/tlodocs/87R/analysis/html/HB00654E.htm
  56. Sabine Royalty Trust, Form 10-K for FY2025, Item 1. Business, Description of the Trust. https://www.sec.gov/Archives/edgar/data/710752/000119312526081251/sbr_10-k_2025-12-31.htm
  57. SandRidge Mississippian Trust II, 10-K FY2019, Item 7. https://www.sec.gov/Archives/edgar/data/1538267/000153826720000012/a201910ksdr.htm
  58. SandRidge Mississippian Trust I, 10-K FY2020, Item 7 / Form 8-K, April 26, 2021. https://www.sec.gov/Archives/edgar/data/1509228/000162828021005478/a202010ksdt.htm
  59. SandRidge Permian Trust, Form 8-K, June 24, 2021, Item 1.01. https://www.sec.gov/Archives/edgar/data/1521168/000110465921085112/tm2120573d1_8k.htm

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Chapter 31 Energy private equity and credit funds

50 notes, 48 numbered in the book

  1. Kayne Anderson Capital Advisors, L.P. Form ADV Part 2A Brochure, March 27, 2026, Item 5 – Fees and Compensation, “Closed-end Funds.” https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1029129
  2. QEP Advisers, LLC (Quantum Capital Group / Quantum Energy Partners) Form ADV Part 2A Brochure, March 31, 2026, Item 5 – Fees and Compensation. https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1036508
  3. 15 U.S.C. § 80a-2(a)(51)(A). https://uscode.house.gov/view.xhtml?req=(title:15%20section:80a-2%20edition:prelim)
  4. 15 U.S.C. § 80a-2(a)(51) cross-referenced with Investment Company Act sections 3(c)(1) and 3(c)(7). https://uscode.house.gov/view.xhtml?req=(title:15%20section:80a-2%20edition:prelim)
  5. 17 C.F.R. § 230.501(a)(5)–(6). https://www.law.cornell.edu/cfr/text/17/230.501
  6. CalPERS, Private Equity Program (PEP) Fund Performance Review, fund performance table. https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance?FWAction=printfunds
  7. CalPERS, Private Equity Program (PEP) Fund Performance Review. https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance
  8. IRS, Instructions for Form 1065 (2025), “When To File.” https://www.irs.gov/instructions/i1065
  9. IRC § 1061(a). https://www.law.cornell.edu/uscode/text/26/1061
  10. White River Energy Partners I LP, SEC Form D/A, filed Nov. 30, 2023. https://www.sec.gov/Archives/edgar/data/1956736/000187978523000059/primary_doc.xml
  11. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  12. Nebari Natural Resources Credit Fund II, LP, SEC Form D/A, filed Jan. 30, 2025. https://www.sec.gov/Archives/edgar/data/1952745/000089706925000136/primary_doc.xml
  13. Citizen Energy Partners Opportunities Fund II, L.P. – KC Capital Access Fund, SEC Form D, filed May 30, 2024. https://www.sec.gov/Archives/edgar/data/2024902/000202490224000001/primary_doc.xml
  14. SEC Form D (SEC1972, rev. 5/17), “Item-by-Item Instructions,” Item 11. https://www.sec.gov/files/formd.pdf
  15. 17 C.F.R. § 230.506(b)(2)(i), as amended at 86 FR 3598 (Jan. 14, 2021). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  16. 17 C.F.R. § 230.506(c). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  17. QEP Advisers, LLC (Quantum Capital Group) Form ADV Part 2A Brochure, March 31, 2026, Item 6 – Performance-Based Fees and Side-By-Side Management. https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1036508
  18. NGP Energy Capital Management, L.L.C. Form ADV Part 2A Disclosure Brochure, March 31, 2026, Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss (fund-level borrowing/subscription-line risk). https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1036741
  19. Investment Adviser Public Disclosure (IAPD) firm record for EnCap Investments L.P. (CRD #160695, SEC file 802-74807). https://adviserinfo.sec.gov/firm/summary/160695
  20. NGP Energy Capital Management, L.L.C. Form ADV Part 2A Disclosure Brochure, March 31, 2026, Item 5 – Fees and Compensation. https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=1036741
  21. CalPERS, Alternative Investment Vehicle (AIV) Fee & Expense Disclosure (AB 2833 Report), Explanatory Notes, Investment Committee Agenda Item 4f, Attachment 2, November 17, 2025, Column 11. https://www.calpers.ca.gov/documents/202511-invest-agenda-item04f-02-a-0/download?inline
  22. SEC Division of Economic and Risk Analysis, Market Statistics: Form PF Performance, Fees, and Allocations (white paper), January 2025. https://www.sec.gov/files/dera_wp_pf-perf-fee-alloc-2501.pdf
  23. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  24. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  25. IRS Pub. 925 (2025), “Income not from a passive activity.” https://www.irs.gov/pub/irs-pdf/p925.pdf
  26. Author’s calculation from notes 23, 25, 49, 50. https://www.ecfr.gov/current/title-26/section-1.469-2T
  27. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  28. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.4 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  29. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.6 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  30. FINRA, Rule 2111 (Suitability) FAQ, Q1.1. https://www.finra.org/rules-guidance/key-topics/suitability/faq
  31. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Item 5 (Market for Registrant’s Units). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  32. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Selected Financial Data. https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  33. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Part I, Item 1 (Business). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  34. IRC § 704(d)(1)–(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section704&num=0&edition=prelim
  35. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  36. IRC § 512(a)(1). https://www.law.cornell.edu/uscode/text/26/512
  37. IRC § 512(b)(4). https://www.law.cornell.edu/uscode/text/26/512
  38. IRC § 514(a)(1). https://www.law.cornell.edu/uscode/text/26/514
  39. IRC § 1061(c)(1). https://www.law.cornell.edu/uscode/text/26/1061
  40. IRC § 1061(c)(4)(A). https://www.law.cornell.edu/uscode/text/26/1061
  41. IRC § 741. https://www.law.cornell.edu/uscode/text/26/741
  42. FS Energy and Power Fund, Form 10-K for fiscal year 2020. https://www.sec.gov/Archives/edgar/data/1501729/000110465921034574/tm218912-1_10k.htm
  43. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  44. Unit 2010 Employee Oil and Gas Limited Partnership Agreement, filed as Exhibit 10.2.32 to Unit Corporation Form 10-K for FY2009 (filed Feb. 23, 2010). https://www.sec.gov/Archives/edgar/data/798949/000119312510037350/dex10232.htm
  45. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  46. 17 C.F.R. § 230.506(c)(2)(ii)(A). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  47. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013), discussing SEC v. Wellco Energy, LLC. https://www.sec.gov/files/ia_oilgas.pdf
  48. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013), discussing SEC v. Provident Royalties, LLC. https://www.sec.gov/files/ia_oilgas.pdf
  49. IRC § 469(g)(1)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  50. Treas. Reg. § 1.469-2T(c)(3)(i)(A). https://www.ecfr.gov/current/title-26/section-1.469-2T

Notes 49 and 50 have no number in the book; other notes in this list cite them.

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Chapter 32 Decoding a pitch deck

64 notes

  1. Vanna Production III, LP, Form D, Items 6 and 13 (offering and sales amounts). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  2. SEC Form D and instructions; 17 C.F.R. § 230.503. https://www.sec.gov/about/forms/formd.pdf
  3. 17 C.F.R. § 230.502(b)(1). https://www.ecfr.gov/current/title-17/section-230.502
  4. 17 C.F.R. § 230.501(a)(6). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.501
  5. 17 C.F.R. § 230.501(a)(5). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.501
  6. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  7. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  8. Ring Energy, Inc. Form 10-K FY2025, Glossary of Terms. https://www.sec.gov/Archives/edgar/data/1384195/000138419526000050/rei-20251231.htm
  9. 17 C.F.R. § 230.506(b)(2)(i), as amended at 86 FR 3598 (Jan. 14, 2021). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  10. 17 C.F.R. § 230.506(c). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  11. SEC Press Release 2016-130, “SEC Charges ‘Frack Master’ With Running an $80 Million Oil and Gas Fraud.” https://www.sec.gov/news/press-release/2016-130
  12. SEC Litigation Release No. 22891, Arcturus Corporation, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-22891
  13. United States v. Alfaro, No. 20-51054 (5th Cir. Apr. 7, 2022). https://www.ca5.uscourts.gov/Opinions/pub/20/20-51054-CR0.pdf
  14. Texas State Securities Board Emergency Cease-and-Desist Order, In the Matter of U.S. Energy Assets, LLC, et al. https://ssb.texas.gov/sites/default/files/2021-05/US_Energy_Assets_ENF-CDO-20-1792.pdf
  15. FINRA, Rule 2111 (Suitability) FAQ, Q1.1. https://www.finra.org/rules-guidance/key-topics/suitability/faq
  16. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.6 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  17. FINRA, “About BrokerCheck.” https://www.finra.org/investors/investing/working-with-investment-professional/about-brokercheck
  18. PRMS, section 2.1.3.7.2, p. 11. https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  19. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  20. SEC Form D (SEC1972, rev. 5/17), “Item-by-Item Instructions,” Item 11. https://www.sec.gov/files/formd.pdf
  21. Vanna Production III, LP, Form D, Item 8 (sales commissions and finders’ fees, marked as estimates) and Item 12 (recipients of sales compensation). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  22. Vanna Production III, LP, Form D, Item 15 (use-of-proceeds clarification). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  23. Vanna Production III, LP, Form D, primary_doc.xml (sales-compensation recipients and states of solicitation). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  24. 15 U.S.C. § 78c(a)(4)(A) (definition); 15 U.S.C. § 78o(a)(1) (registration requirement). https://www.law.cornell.edu/uscode/text/15/78c
  25. SEC EDGAR Full Text Search FAQ. https://www.sec.gov/edgar/search/efts-faq.html
  26. SEC Litigation Release No. 24057, SEC v. AmeraTex Energy, Inc., et al. https://www.sec.gov/litigation/litreleases/2018/lr24057.htm
  27. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  28. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  29. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  30. PDC 2004–2006 Drilling Program, Form 424B3. https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  31. PDC 2004–2006 Drilling Program, Form 424B3 (Limited Partnership Agreement, Appendix A). https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  32. SEC Litigation Release No. 21808 (2011). https://www.sec.gov/litigation/litreleases/2011/lr21808.htm
  33. Society of Petroleum Engineers, Petroleum Resources Management System (PRMS), 2018 (SPE Board approved June 2018), sec. 2.2.2.2; SPE Petroleum Reserves Definitions page. https://www.spe.org/en/industry/reserves/
  34. 17 C.F.R. § 210.4-10(a)(22). https://www.ecfr.gov/current/title-17/part-210/subpart-210.1/section-210.4-10
  35. 17 C.F.R. § 210.4-10(a)(24). https://www.law.cornell.edu/cfr/text/17/210.4-10
  36. Petroleum Resources Management System (PRMS), Table 3 “Reserves Category Definitions and Guidelines,” p. 35. https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  37. 17 C.F.R. § 210.4-10(a)(18). https://www.ecfr.gov/current/title-17/part-210/subpart-210.1/section-210.4-10
  38. 17 C.F.R. § 210.4-10(a)(17). https://www.ecfr.gov/current/title-17/part-210/subpart-210.1/section-210.4-10
  39. PRMS, Table 3, p. 36. https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  40. 17 C.F.R. § 229.1202(a)(2), Instruction 2. https://www.ecfr.gov/current/title-17/chapter-II/part-229/subpart-229.1200/section-229.1202
  41. 17 C.F.R. § 229.10(e)(1)(i). https://www.ecfr.gov/current/title-17/chapter-II/part-229/subpart-229.100/section-229.10
  42. Ring Energy, Inc. Form 10-K FY2025, Item 2 Properties. https://www.sec.gov/Archives/edgar/data/1384195/000138419526000050/rei-20251231.htm
  43. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 1 (Business) and Note 1 to Financial Statements. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  44. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 2 (Third Party Review of Reserves Estimate). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  45. SEC Securities Act Release No. 10987, In the Matter of Resolute Capital Partners LTD, LLC, et al., Admin. Proc. File No. 3-20597. https://www.sec.gov/files/litigation/admin/2021/33-10987.pdf
  46. SEC, Securities Act Release No. 10987, In the Matter of Resolute Capital Partners LTD, LLC, et al., Admin. Proc. File No. 3-20597 (Sept. 24, 2021), Section II. https://www.sec.gov/files/litigation/admin/2021/33-10987.pdf
  47. IRC § 263(c); IRS Oil and Gas Audit Technique Guide, Pub. 5652. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  48. SEC Press Release 2018-243, “SEC Announces $25 Million Settlement With Self-Proclaimed ‘Frack Master,’” Oct. 23, 2018 (updated after the court approved the settlement). https://www.sec.gov/newsroom/press-releases/2018-243
  49. SEC Litigation Release No. 23582, SEC v. Chris Faulkner, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23582
  50. U.S. Attorney’s Office, Northern District of Texas, “So-Called ‘Frack Master’ Sentenced to 15 Years in Federal Prison” (Sept. 29, 2021). https://www.justice.gov/usao-ndtx/pr/so-called-frack-master-sentenced-15-years-federal-prison
  51. United States v. Faulkner, No. 3:18-cr-00500-B (N.D. Tex.), Dkt. 126 (Factual Resume, Nov. 2, 2020) and Dkt. 131 (Dec. 1, 2020 rearraignment minute entry); DOJ N.D. Tex. press release (Sept. 29, 2021). https://www.courtlistener.com/docket/8283433/united-states-v-christopher-aundre-faulkner/
  52. Receiver’s Motion for Leave to Disallow Claims of Certain Claimants That Cannot Be Located, ECF No. 692, SEC v. Faulkner, No. 3:16-CV-1735-D (N.D. Tex. filed Jan. 20, 2023), at 7. https://storage.courtlistener.com/recap/gov.uscourts.txnd.275474/gov.uscourts.txnd.275474.692.0.pdf
  53. SEC v. Arcturus Corp., 928 F.3d 400 (5th Cir. 2019). https://www.ca5.uscourts.gov/opinions/pub/17/17-10503-CV1.pdf
  54. SEC Litigation Release No. 26269, Leon Ali Parvizian a/k/a Alex Parvizian, Arcturus Corporation, and Aschere Energy, LLC. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26269
  55. Final Judgment, ECF No. 302, SEC v. Arcturus Corp., No. 3:13-cv-04861-K (N.D. Tex. Jan. 28, 2025), at 5 and 7. https://www.sec.gov/files/litigation/litreleases/2025/judg26269.pdf
  56. United States v. Alfaro, No. 20-51054 (5th Cir. Apr. 7, 2022); Indictment, United States v. Alfaro, No. 5:18-cr-00879-FB (W.D. Tex. Nov. 28, 2018), paras. 6–8. https://ssb.texas.gov/sites/default/files/Brian%20Keith%20Alfaro_IND_WDistTX_112818.pdf
  57. Texas State Securities Board, news release on the conviction of Brian Keith Alfaro. https://ssb.texas.gov/news-publications/brian-keith-alfaro-convicted
  58. U.S. Attorney’s Office, Western District of Texas, press release on the sentencing of Brian Alfaro. https://www.justice.gov/usao-wdtx/pr/san-antonio-businessman-brian-alfaro-sentenced-ten-years-federal-prison-mail-fraud
  59. Alfaro v. United States, No. SA-23-CV-1425-FB (W.D. Tex. May 14, 2024) (Memorandum Opinion and Order), ECF No. 268 in United States v. Alfaro, No. 5:18-cr-00879-FB, at 3 and 6. https://www.govinfo.gov/content/pkg/USCOURTS-txwd-5_18-cr-00879/pdf/USCOURTS-txwd-5_18-cr-00879-0.pdf
  60. Texas State Securities Board, Recent Texas State Securities Board Administrative Orders. https://www.ssb.texas.gov/news-publications/recent-texas-state-securities-board-administrative-orders
  61. Texas State Securities Board, Agreed Cease & Desist Order, In the Matter of U.S. Energy Assets, LLC, et al., Order No. ENF-22-CDO-1866 (signed Oct. 26, 2022), Order paras. 1–3, p. 11. https://www.ssb.texas.gov/sites/default/files/2022-10/ENF_22_CDO_1866.pdf
  62. Incoming no-action request letter, Latham & Watkins LLP to SEC Division of Corporation Finance, Mar. 6, 2025. https://www.sec.gov/files/corpfin/no-action/latham-watkins506c-031225-incoming.pdf
  63. SEC Division of Corporation Finance response to Latham & Watkins LLP, Mar. 12, 2025. https://www.sec.gov/rules-regulations/no-action-interpretive-exemptive-letters/division-corporation-finance-no-action/latham-watkins-503c-031225
  64. NASAA (published via Arizona Corporation Commission), Investor Alert: Oil and Gas Investment Fraud. https://azcc.gov/docs/default-source/az-investor-files/investment-scams/oil-and-gas-investor-alert-nasaa.pdf

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Chapter 33 The paperwork

75 notes

  1. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  2. 17 C.F.R. § 230.501(a). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.501
  3. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  4. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  5. Vanna Production III, LP, Form D, Item 8 (sales commissions and finders’ fees, marked as estimates) and Item 12 (recipients of sales compensation). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  6. SEC Form D (SEC1972, rev. 5/17), “Item-by-Item Instructions,” Item 11. https://www.sec.gov/files/formd.pdf
  7. 17 C.F.R. § 230.502(b)(1). https://www.ecfr.gov/current/title-17/section-230.502
  8. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. X.B.2. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  9. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  10. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  11. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  12. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  13. COPAS, Overhead Adjustment Factors / Economic Factors page. https://copas.org/resources/economic-factors/
  14. Tex. Nat. Res. Code § 91.401(3)–(4). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  15. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  16. Author’s illustration of working-interest and net-revenue-interest math.
  17. IRS Publication 5652, Oil and Gas Audit Technique Guide, Glossary. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  18. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  19. Energytec, Inc., Form 10-K for the fiscal year ended Dec. 31, 2006 (filed Apr. 17, 2007), glossary. https://www.sec.gov/Archives/edgar/data/1202963/000119312507082987/d10k.htm
  20. COPAS Accounting Procedure Joint Operations (MF-8, 2022 rev.), Section I.2, Statements and Billings. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  21. SEC EDGAR Full Text Search FAQ. https://www.sec.gov/edgar/search/efts-faq.html
  22. Vanna Production III, LP, Form D, Item 6 (federalExemptionsExclusions: 06b, 3C, 3C.9). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  23. GrayStreet Drilling Fund III LLC, Form D. https://www.sec.gov/Archives/edgar/data/2112327/000211232726000001/primary_doc.xml
  24. Prudent Resources Fund LP, Form D. https://www.sec.gov/Archives/edgar/data/1933000/000193300026000003/primary_doc.xml
  25. DW Oklahoma 50 LP, Form D. https://www.sec.gov/Archives/edgar/data/2116884/000211688426000001/primary_doc.xml
  26. 17 C.F.R. § 230.506(b)(2)(i), as amended at 86 FR 3598 (Jan. 14, 2021). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  27. 17 C.F.R. § 230.506(c). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  28. 17 C.F.R. § 230.501(a)(5). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.501
  29. 17 C.F.R. § 230.501(a)(6). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.501
  30. SEC Division of Corporation Finance response to Latham & Watkins LLP, Mar. 12, 2025. https://www.sec.gov/rules-regulations/no-action-interpretive-exemptive-letters/division-corporation-finance-no-action/latham-watkins-503c-031225
  31. Incoming no-action request letter, Latham & Watkins LLP to SEC Division of Corporation Finance, Mar. 6, 2025. https://www.sec.gov/files/corpfin/no-action/latham-watkins506c-031225-incoming.pdf
  32. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” p. 25. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  33. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” Table 1 & accompanying text, p. 24. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  34. SEC Division of Corporation Finance, 2023 Report on the Review of the Definition of “Accredited Investor,” Table 2, p. 25. https://www.sec.gov/files/review-definition-accredited-investor-2023.pdf
  35. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  36. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.4 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  37. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.6 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  38. FINRA, Rule 2111 (Suitability) FAQ, Q1.1. https://www.finra.org/rules-guidance/key-topics/suitability/faq
  39. 17 C.F.R. § 230.506(d)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  40. 17 C.F.R. § 230.506(d)(1)(i). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  41. Texas State Securities Board, “Texas Order: Oil and Gas Promoter Offers Repayment to Investors.” https://ssb.texas.gov/news-publications/texas-order-oil-and-gas-promoter-offers-repayment-investors
  42. Texas State Securities Board, Emergency Cease and Desist Order, In the Matter of Travco Oil and Gas, LLC, et al., Order No. ENF-CDO-20-1795 (Nov. 22, 2019), paras. 12, 39–41; settlement announced in TSSB release of June 12, 2020. https://ssb.texas.gov/sites/default/files/Travco_ENF-CDO-20-1795.pdf
  43. Texas State Securities Board, “Securities Commissioner Announces Settlement of Claims Against Oil and Gas Exploration Company.” https://ssb.texas.gov/news-publications/securities-commissioner-announces-settlement-claims-against-oil-and-gas
  44. Texas State Securities Board, “Enforcement Report for 2019: $2.6 Million Paid to Investors, $575,000 in Fines to State.” https://ssb.state.tx.us/news-publications/enforcement-report-2019-26-million-paid-investors-575000-fines-state
  45. Texas State Securities Board, “Oil Company Pays $20,000 Fine, Will Make $1.5 Million Refund Offer to Investors,” Feb. 21, 2020 (with the July 10, 2019 Emergency Cease and Desist Order re: Woodland Resources/Patman). https://www.ssb.texas.gov/news-publications/oil-company-pays-20000-fine-will-make-15-million-refund-offer-investors
  46. 17 C.F.R. § 230.503(a)(3)(i)–(iii). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  47. 15 U.S.C. § 80a-3(c)(9). https://www.law.cornell.edu/uscode/text/15/80a-3
  48. Vanna Production III, LP, Form D, Item 15 (use-of-proceeds clarification). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  49. Vanna Production III, LP, Form D, primary_doc.xml (sales-compensation recipients and states of solicitation). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  50. 15 U.S.C. § 78c(a)(4)(A) (definition); 15 U.S.C. § 78o(a)(1) (registration requirement). https://www.law.cornell.edu/uscode/text/15/78c
  51. FINRA, “About BrokerCheck.” https://www.finra.org/investors/investing/working-with-investment-professional/about-brokercheck
  52. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  53. 15 U.S.C. § 77r(b)(4)(F). https://www.law.cornell.edu/uscode/text/15/77r
  54. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 1 (Business) and Note 1 to Financial Statements. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  55. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 2 (Third Party Review of Reserves Estimate). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  56. PDC 2004–2006 Drilling Program, Form 424B3 (Limited Partnership Agreement, Appendix A). https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  57. SEC Litigation Release No. 21808 (2011). https://www.sec.gov/litigation/litreleases/2011/lr21808.htm
  58. IRC § 263(c); IRS Oil and Gas Audit Technique Guide, Pub. 5652. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  59. Texas State Securities Board, “Gusher of Debt: Texas Oilman Concealing Bankruptcies, Fraud, Sanctions,” press release. https://ssb.texas.gov/news-publications/gusher-debt-texas-oilman-concealing-bankruptcies-fraud-sanctions
  60. Texas State Securities Board, Investor Alert: Private Oil and Gas Offerings. https://www.ssb.texas.gov/news-publications/investor-alert-private-oil-and-gas-offerings
  61. Texas State Securities Board, Investor Alert: Private Oil and Gas Offerings, discussing Woodland Resources. https://www.ssb.texas.gov/news-publications/investor-alert-private-oil-and-gas-offerings
  62. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  63. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  64. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. VI.B.2(b)(i), as filed as Exhibit 10.46 to Beta Oil & Gas, Inc.’s Form 10-Q. https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  65. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  66. Synthesis of Art. VI.B.2(b)(i) figures in the same six filed JOAs listed in note 65, low end Rhino Resource Partners/Gulfport JOA (2012 10-Q Ex. 10.2), high end Mewbourne Energy Partners 09-A JOA (2010). https://www.sec.gov/Archives/edgar/data/1490630/000110465912076553/a12-20059_1ex10d2.htm
  67. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.A. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  68. Northern Oil and Gas, Inc., Form 10-K for FY2025, filed Feb. 26, 2026. https://www.sec.gov/Archives/edgar/data/1104485/000110448526000008/nog-20251231.htm
  69. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.7. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  70. SEC v. Shields, 744 F.3d 633 (10th Cir. 2014). https://www.ca10.uscourts.gov/sites/ca10/files/opinions/01019206686.pdf
  71. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Note 8. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  72. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  73. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  74. Tex. Nat. Res. Code § 91.402(a)(1)–(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  75. Tex. Nat. Res. Code § 91.402(b). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402

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Chapter 34 The real risks

71 notes

  1. EIA, “U.S. Crude Oil, Natural Gas, and Dry Exploratory and Developmental Wells Drilled” and “U.S. Dry Exploratory and Developmental Wells Drilled” (Petroleum & Natural Gas Data Navigator). https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=e_ertw0_xwc0_nus_c&f=a
  2. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  3. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  4. Atlas Resources Series 28-2010, L.P., Form 10-K (FY2011), Item 1. https://www.sec.gov/Archives/edgar/data/1487561/000119312512142633/d323187d10k.htm
  5. Atlas Resources Series 28-2010 L.P., Form 10-K for FY2015, Item 2 (Properties). https://www.sec.gov/Archives/edgar/data/1487561/000156459016016249/ser28-10k_20151231.htm
  6. 17 C.F.R. § 210.4-10(a)(22). https://www.law.cornell.edu/cfr/text/17/210.4-10
  7. 17 C.F.R. § 210.4-10(a)(24). https://www.law.cornell.edu/cfr/text/17/210.4-10
  8. Petroleum Resources Management System (PRMS), Table 3 “Reserves Category Definitions and Guidelines,” p. 35. https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  9. PRMS, Table 3, p. 36. https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  10. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  11. Reef Oil & Gas Income & Development Fund III, L.P., Form 10-K for FY2010, filed April 18, 2011 (SEC CIK 0001411643, accession 0001104659-11-020439). https://www.sec.gov/Archives/edgar/data/0001411643/000110465911020439/a11-9141_110k.htm
  12. EIA Glossary, “Exploratory well.” https://www.eia.gov/tools/glossary/index.php?id=E
  13. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  14. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 7 (MD&A) and financial statements. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  15. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Statements of Operations. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  16. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2015, Item 5/statements of changes in partners’ capital. https://www.sec.gov/Archives/edgar/data/1491262/000138713116004786/mep10-10k_123115.htm
  17. Federal Reserve Bank of Dallas, Southwest Economy, First Quarter 2015, “Texas Facing Economic Headwinds in 2015.” https://www.dallasfed.org/~/media/documents/research/swe/2015/swe1501.pdf
  18. Haynes and Boone, LLP, Oil Patch Bankruptcy Monitor (December 14, 2016). https://www.haynesboone.com/getcontentasset/588047ed-0b66-4c80-85ab-555932d9270c/141d77fc-2e06-49eb-b14c-2ff58f5ce730/oil_patch_bankruptcy_20160106.pdf?language=en-US
  19. Dallas Fed Energy Survey, Q1 2026 (2601). https://www.dallasfed.org/research/surveys/des/2026/2601
  20. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  21. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  22. Railroad Commission of Texas, Final Order, Oil and Gas Docket No. 04-0256342. https://www.rrc.texas.gov/media/5zljct0k/04-0256342_fo.pdf
  23. Atlas Resource Partners, L.P., Disclosure Statement (Exhibit 99.1 to Form 8-K), filed July 25, 2016 (SEC CIK 0001532750, accession 0001193125-16-656046). https://www.sec.gov/Archives/edgar/data/0001532750/000119312516656046/d126536dex991.htm
  24. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do
  25. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  26. Apache Corp. v. Castex Offshore, Inc., No. 14-19-00605-CV (Tex. App.—Houston [14th Dist.] May 11, 2021), Part II.A-B. https://caselaw.findlaw.com/court/tx-court-of-appeals/2126405.html
  27. Apache Corp. v. Castex Offshore, Inc., No. 14-19-00605-CV (Tex. App.—Houston [14th Dist.] May 11, 2021), Part II.A. https://caselaw.findlaw.com/court/tx-court-of-appeals/2126405.html
  28. Apache Corp. v. Castex Offshore, Inc., No. 14-19-00605-CV (Tex. App.—Houston [14th Dist.] May 11, 2021), Part II.C-D. https://caselaw.findlaw.com/court/tx-court-of-appeals/2126405.html
  29. Apache Corp. v. Castex Offshore, Inc., No. 14-19-00605-CV (Tex. App.—Houston [14th Dist.] May 11, 2021), Part III.A-C. https://caselaw.findlaw.com/court/tx-court-of-appeals/2126405.html
  30. Apache Corp. v. Castex Offshore, Inc., No. 14-19-00605-CV (Tex. App.—Houston [14th Dist.] May 11, 2021), Part V (Conclusion). https://caselaw.findlaw.com/court/tx-court-of-appeals/2126405.html
  31. Unit 2010 Employee Oil and Gas Limited Partnership Agreement, filed as Exhibit 10.2.32 to Unit Corporation Form 10-K for FY2009 (filed Feb. 23, 2010). https://www.sec.gov/Archives/edgar/data/798949/000119312510037350/dex10232.htm
  32. IRS Publication 5652, Oil and Gas Audit Technique Guide, Glossary. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  33. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  34. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  35. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  36. Synthesis of Art. VI.B.2(b)(i) figures in the same six filed JOAs listed in note 35, low end Rhino Resource Partners/Gulfport JOA (2012 10-Q Ex. 10.2), high end Mewbourne Energy Partners 09-A JOA (2010). https://www.sec.gov/Archives/edgar/data/1490630/000110465912076553/a12-20059_1ex10d2.htm
  37. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  38. Schedule TO-T, Exhibit (a)(1) Offer to Purchase, Reef Global Energy VI, L.P. (filed Aug. 21, 2008). https://www.sec.gov/Archives/edgar/data/1332474/000110294608000128/mpfreefviexa1.htm
  39. Schedule TO-T, Exhibit (a)(1) Offer to Purchase, Reef Global Energy VII, L.P. (filed Aug. 21, 2008). https://www.sec.gov/Archives/edgar/data/1344530/000110294608000130/mpfreefviiexa1.htm
  40. Schedule TO-T, Exhibit (a)(1) Offer to Purchase, Atlas America Public #9 Ltd. (filed June 3, 2008). https://www.sec.gov/Archives/edgar/data/1121745/000110294608000046/mpfatlasamerica9exa1.htm
  41. Schedule TO-T, Exhibit (a)(1) Offer to Purchase, Apache Offshore Investment Partnership (filed June 6, 2008). https://www.sec.gov/Archives/edgar/data/727538/000110294608000056/mpfapacheexa1.htm
  42. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  43. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2012, filed April 1, 2013 (SEC CIK 0001491262, accession 0001387131-13-001086). https://www.sec.gov/Archives/edgar/data/0001491262/000138713113001086/mep10-10k_123112.htm
  44. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2020, filed March 31, 2021 (accession 0001387131-21-004065). https://www.sec.gov/Archives/edgar/data/1491262/000138713121004065/mep10-10k_123120.htm
  45. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  46. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  47. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  48. Tex. Prop. Code §§ 56.002–56.003. https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  49. Tex. Prop. Code § 56.003. https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  50. Tex. Prop. Code § 56.021(a). https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  51. Okla. Stat. tit. 42, 144. https://oksenate.gov/sites/default/files/2022-05/os42.pdf
  52. Tex. Prop. Code § 56.043. https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  53. Bandera Drilling Co. v. Lavino, 824 S.W.2d 782 (Tex. App.—Eastland Feb. 6, 1992) (No. 11-91-001-CV). https://static.case.law/sw2d/824/html/0782-01.html
  54. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  55. Treas. Reg. § 1.469-1T(e)(4)(v)(A). https://www.ecfr.gov/current/title-26/section-1.469-1T
  56. IRC § 465(a)(1). https://www.law.cornell.edu/uscode/text/26/465
  57. IRC § 465(c)(1)(D). https://www.law.cornell.edu/uscode/text/26/465
  58. IRC § 465(b)(4). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section465&num=0&edition=prelim
  59. Bernuth v. Commissioner, 57 T.C. 225 (1971), aff’d, 470 F.2d 710 (2d Cir. 1972). https://static.case.law/tc/57/html/0225-01.html
  60. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.A. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  61. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section J (Penalty Considerations). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  62. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.C. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  63. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  64. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  65. IRC § 611(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A611+edition%3Aprelim%29
  66. LinnCo, LLC, Form 8-K filed under Rule 425 (news release re: settlement agreement and exchange offer), April 5, 2016. https://www.sec.gov/Archives/edgar/data/1326428/000119312516531120/d176733d425.htm
  67. LinnCo, LLC, Form S-4 Registration Statement, filed March 22, 2016, Summary section. https://www.sec.gov/Archives/edgar/data/1549756/000119312516513588/d152436ds4.htm
  68. Linn Energy, Inc., Form S-1 Registration Statement, filed May 12, 2017. https://www.sec.gov/Archives/edgar/data/1326428/000119312517148591/d386160ds1.htm
  69. SEC Litigation Release No. 22891, Arcturus Corporation, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-22891
  70. U.S. Attorney’s Office, Northern District of Texas, “So-Called ‘Frack Master’ Sentenced to 15 Years in Federal Prison” (Sept. 29, 2021). https://www.justice.gov/usao-ndtx/pr/so-called-frack-master-sentenced-15-years-federal-prison
  71. PDC 2004–2006 Drilling Program, Form 424B3 (Limited Partnership Agreement, Appendix A). https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm

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Chapter 35 Red flags, scams and bad deals

61 notes

  1. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013), discussing SEC v. Petroleum Unlimited, LLC. https://www.sec.gov/files/ia_oilgas.pdf
  2. PDC 2004–2006 Drilling Program, Form 424B3. https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  3. PDC 2004–2006 Drilling Program, Form 424B3 (Limited Partnership Agreement, Appendix A). https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  4. SEC Litigation Release No. 25284, “The Heartland Group Ventures, LLC, et al.” https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25284
  5. SEC, In the Matter of Resolute Capital Partners LTD, LLC, et al., Order, Securities Act Release No. 10987; SEC distributions-to-harmed-investors page, Admin. Proc. File No. 3-20597. https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/matter-resolute-capital-partners-ltd-llc-et-al-admin-proc-file-no-3-20597
  6. SEC, In the Matter of Resolute Capital Partners LTD, LLC, et al., Order, Securities Act Release No. 10987. https://www.sec.gov/files/litigation/admin/2021/33-10987.pdf
  7. In the Matter of Nodding Donkey Oil & Gas Investments, LLC, Okla. Dep’t of Securities, ODS File No. 26-284, Order Voiding Stop Order. https://securities.ok.gov/Enforcement/Orders/PDF/OVSO_NoddingDonkeyOil&GasInvestmentsLLC_26-284.pdf
  8. Texas State Securities Board, “Oil Company Pays $20,000 Fine, Will Make $1.5 Million Refund Offer to Investors,” Feb. 21, 2020 (with the July 10, 2019 Emergency Cease and Desist Order re: Woodland Resources/Patman). https://www.ssb.texas.gov/news-publications/oil-company-pays-20000-fine-will-make-15-million-refund-offer-investors
  9. United States v. Faulkner, No. 3:18-cr-00500-B (N.D. Tex.), Dkt. 126 (Factual Resume, Nov. 2, 2020) and Dkt. 131 (Dec. 1, 2020 rearraignment minute entry); DOJ N.D. Tex. press release (Sept. 29, 2021). https://www.courtlistener.com/docket/8283433/united-states-v-christopher-aundre-faulkner/
  10. DOJ, Northern District of Texas, “So-Called ‘Frack Master’ Sentenced to 15 Years in Federal Prison.” https://www.justice.gov/usao-ndtx/pr/so-called-frack-master-sentenced-15-years-federal-prison
  11. Texas State Securities Board, “Texas Order: Oil and Gas Promoter Offers Repayment to Investors.” https://ssb.texas.gov/news-publications/texas-order-oil-and-gas-promoter-offers-repayment-investors
  12. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  13. NASAA (published via Arizona Corporation Commission), Investor Alert: Oil and Gas Investment Fraud. https://azcc.gov/docs/default-source/az-investor-files/investment-scams/oil-and-gas-investor-alert-nasaa.pdf
  14. Texas State Securities Board, Investor Alert: Private Oil and Gas Offerings. https://www.ssb.texas.gov/news-publications/investor-alert-private-oil-and-gas-offerings
  15. Texas State Securities Board, “Texas, Kentucky Enter Orders to Stop Unregistered Oil and Gas Offerings.” https://ssb.texas.gov/news-publications/texas-kentucky-enter-orders-stop-unregistered-oil-and-gas-offerings
  16. Texas State Securities Board Emergency Cease-and-Desist Order, In the Matter of U.S. Energy Assets, LLC, et al. https://ssb.texas.gov/sites/default/files/2021-05/US_Energy_Assets_ENF-CDO-20-1792.pdf
  17. Texas State Securities Board, “Gusher of Debt: Texas Oilman Concealing Bankruptcies, Fraud, Sanctions,” press release. https://ssb.texas.gov/news-publications/gusher-debt-texas-oilman-concealing-bankruptcies-fraud-sanctions
  18. Texas State Securities Board, Investor Alert: Private Oil and Gas Offerings, discussing Woodland Resources. https://www.ssb.texas.gov/news-publications/investor-alert-private-oil-and-gas-offerings
  19. SEC Securities Act Release No. 11335, In the Matter of Marc J. Toomey. https://www.sec.gov/files/litigation/admin/2024/33-11335.pdf
  20. Oklahoma Corporation Commission, OCC Well Data Finder User Guide (linked from the OCC Well Data Finder page, last modified Aug. 19, 2026). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/ogcd_automated/esri-occ-well-data-finder-manual.pdf
  21. Railroad Commission of Texas, Production Data Query (Oil & Gas Data Query), page as retrieved Oct. 1, 2026. https://webapps2.rrc.texas.gov/EWA/ewaPdqMain.do
  22. Railroad Commission of Texas, Wellbore Query Criteria (Oil & Gas Data Query), page as retrieved Oct. 1, 2026. https://webapps2.rrc.texas.gov/EWA/wellboreQueryAction.do
  23. Oklahoma Corporation Commission, Oil and Gas Data Files, page as retrieved Oct. 1, 2026. https://oklahoma.gov/occ/divisions/oil-gas/oil-gas-data.html
  24. Oklahoma Tax Commission, Gross Production, Obtaining Historical Data, page as retrieved Oct. 1, 2026. https://oklahoma.gov/tax/businesses/gross-production.html
  25. NASAA, Statement of Policy: Registration of Oil and Gas Programs (adopted Sept. 22, 1976, as amended through May 6, 2012); see also Iowa Admin. Code r. 191-50.66. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  26. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.A.1. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  27. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.A.2. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  28. 17 C.F.R. § 230.501(a)(5)–(6). https://www.law.cornell.edu/cfr/text/17/230.501
  29. Mewbourne Energy Partners 09-A, L.P., Form 10-K for the fiscal year ended Dec. 31, 2014 (filed Mar. 31, 2015), Item 7, program cost and revenue allocation table and note (1). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  30. SEC Litigation Release No. 23582, SEC v. Chris Faulkner, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23582
  31. SEC Press Release 2016-130, “SEC Charges ‘Frack Master’ With Running an $80 Million Oil and Gas Fraud.” https://www.sec.gov/news/press-release/2016-130
  32. Receiver’s Motion for Leave to Disallow Claims of Certain Claimants That Cannot Be Located, ECF No. 692, SEC v. Faulkner, No. 3:16-CV-1735-D (N.D. Tex. filed Jan. 20, 2023), at 7. https://storage.courtlistener.com/recap/gov.uscourts.txnd.275474/gov.uscourts.txnd.275474.692.0.pdf
  33. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.7. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  34. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. V.B.8(a). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  35. SEC Litigation Release No. 25712, SEC v. Roy W. Hill, et al. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25712
  36. SEC press release 2013-256, “SEC Halts Texas-Based Oil and Gas Investment Scheme.” https://www.sec.gov/newsroom/press-releases/2013-256
  37. Texas State Securities Board, “Judge Orders $29M in Restitution in Oil and Gas Fraud Case.” https://ssb.texas.gov/news-publications/judge-orders-29m-restitution-oil-and-gas-fraud-case
  38. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. VIII.B. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  39. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013), discussing SEC v. Sunray Oil Co. https://www.sec.gov/files/ia_oilgas.pdf
  40. SEC Press Release 2018-33, “SEC Charges Company and Executives in Oil-and-Gas Offering Fraud.” https://www.sec.gov/news/press-release/2018-33
  41. In the Matter of Pangean Energy, LLC and Pangean Energy Bakken Shale #1H, LLC, Okla. Dep’t of Securities, ODS File 14-025, Agreed Order to Cease and Desist. https://securities.ok.gov/Enforcement/Orders/PDF/Agmt-AgreedOrder_PangeanEnergy_14-025.pdf
  42. Securities Exchange Act of 1934 § 15(a)(1), 15 U.S.C. § 78o(a)(1). https://www.law.cornell.edu/uscode/text/15/78o
  43. Securities Exchange Act of 1934 § 3(a)(4)(A), 15 U.S.C. § 78c(a)(4)(A). https://www.law.cornell.edu/uscode/text/15/78c
  44. FINRA, “About BrokerCheck.” https://www.finra.org/investors/investing/working-with-investment-professional/about-brokercheck
  45. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  46. SEC EDGAR Full Text Search FAQ. https://www.sec.gov/edgar/search/efts-faq.html
  47. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.A. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  48. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section V.C. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  49. IRS Publication 5652, Oil and Gas Audit Technique Guide, Section J (Penalty Considerations). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  50. Complaint for Permanent Injunction ¶6, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  51. Complaint for Permanent Injunction ¶12, United States v. Weddington, No. 2:07-cv-01221-JLG-TPK (S.D. Ohio filed Nov. 29, 2007). https://www.justice.gov/archive/tax/Weddington_FiledComplaint.pdf
  52. Texas State Securities Board, “Enforcement Report for 2019: $2.6 Million Paid to Investors, $575,000 in Fines to State.” https://ssb.state.tx.us/news-publications/enforcement-report-2019-26-million-paid-investors-575000-fines-state
  53. NASAA, 2025 Enforcement Report (covering 2024 enforcement activity). https://www.nasaa.org/wp-content/uploads/2025/10/2025-NASAA-Enforcement-Report_FINAL.pdf
  54. Energy 11, L.P., Form 10-Q (Q1 2026). https://www.sec.gov/Archives/edgar/data/0001581552/000143774926016285/eele20260331_10q.htm
  55. Energy 11, L.P., Partner Letter/Exhibit (2025). https://www.sec.gov/Archives/edgar/data/1581552/000143774925035026/ex_860525.htm
  56. Parker & Parsley 88-B, L.P., Form 10-K for the fiscal year ended Dec. 31, 1999. https://www.sec.gov/Archives/edgar/data/828191/000082819100000002/0000828191-00-000002.txt
  57. Parker & Parsley 88-B, L.P., Form 10-K405 for the fiscal year ended Dec. 31, 2000 (filed Mar. 29, 2001), cover page. https://www.sec.gov/Archives/edgar/data/828191/0000828191-01-000002.txt
  58. Pioneer Natural Resources Co., SEC Form 425. https://www.sec.gov/Archives/edgar/data/1038357/000095013401500528/d86293se425.txt
  59. Pioneer Natural Resources Co., Form S-4/A (Amendment No. 4), Reg. No. 333-59094 (filed Oct. 10, 2001), Background of the Merger. https://www.sec.gov/Archives/edgar/data/1038357/000095013401507152/d85998a4s-4a.txt
  60. Pioneer Natural Resources Co., Form 8-K filed Jan. 10, 2002, Ex. 99.1 (news release dated Jan. 9, 2002); Pioneer Natural Resources Co., Form 10-K405 for FY2001 (filed Mar. 7, 2002), Note E. https://www.sec.gov/Archives/edgar/data/1038357/0001038357-02-000002.txt
  61. Parker & Parsley 88-B, L.P., Form 8-K (event date Dec. 20, 2001; filed Dec. 21, 2001), Item 2. https://www.sec.gov/Archives/edgar/data/828191/000082819101500010/d8k88b.txt

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Chapter 36 Due diligence checklist

78 notes

  1. A.A.P.L. Form 610-1989 Model Form Operating Agreement, Art. I.A, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. Form 10-12G (filed April 30, 2010). https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  2. A.A.P.L. Form 610-1989, Art. VII.C, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  3. A.A.P.L. Form 610-1989, Art. VII.D, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  4. A.A.P.L. Form 610-1989, Art. VII.B, as filed as Exhibit 10.2 to Mewbourne Energy Partners 09-A, L.P. https://www.sec.gov/Archives/edgar/data/1462103/000119312510100866/dex102.htm
  5. NASAA, Statement of Policy: Registration of Oil and Gas Programs, sec. X.B.2. https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  6. FINRA, Rule 2111 (Suitability) FAQ, Q1.1. https://www.finra.org/rules-guidance/key-topics/suitability/faq
  7. Texas State Securities Board, Investor Alert: Private Oil and Gas Offerings. https://www.ssb.texas.gov/news-publications/investor-alert-private-oil-and-gas-offerings
  8. IRC § 461(l)(3)(A) (flush language). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  9. Author’s calculation from note 8. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  10. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.3 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  11. NASAA, Statement of Policy Regarding Real Estate Investment Trusts (REIT Guidelines), § III.D.4 (as amended Sept. 7, 2025, eff. Jan. 1, 2026). https://www.nasaa.org/wp-content/uploads/2025/09/NASAA-REIT-Guidelines-SOP-As-Amended-9-7-2025.pdf
  12. FINRA, “About BrokerCheck.” https://www.finra.org/investors/investing/working-with-investment-professional/about-brokercheck
  13. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013). https://www.sec.gov/files/ia_oilgas.pdf
  14. Securities Exchange Act of 1934 § 15(a)(1), 15 U.S.C. § 78o(a)(1). https://www.law.cornell.edu/uscode/text/15/78o
  15. Securities Exchange Act of 1934 § 3(a)(4)(A), 15 U.S.C. § 78c(a)(4)(A). https://www.law.cornell.edu/uscode/text/15/78c
  16. 15 U.S.C. § 78c(a)(4)(A) (definition); 15 U.S.C. § 78o(a)(1) (registration requirement). https://www.law.cornell.edu/uscode/text/15/78c
  17. SEC EDGAR Full Text Search FAQ. https://www.sec.gov/edgar/search/efts-faq.html
  18. 17 C.F.R. § 230.506(d)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  19. 17 C.F.R. § 230.506(d)(1)(i). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.506
  20. 17 C.F.R. § 230.503(a)(1). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  21. SEC Form D (SEC1972, rev. 5/17), “Item-by-Item Instructions,” Item 11. https://www.sec.gov/files/formd.pdf
  22. Vanna Production III, LP, Form D, Item 8 (sales commissions and finders’ fees, marked as estimates) and Item 12 (recipients of sales compensation). https://www.sec.gov/Archives/edgar/data/2131254/000213125426000001/primary_doc.xml
  23. Railroad Commission of Texas, “Oil & Gas Directory Operator Contact Information” (see also Summary of Requirements: “Any organization performing operations within the jurisdiction of the Railroad Commission of Texas (Commission) is required to maintain a current Form P-5, Organization Report”). https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/operator-information/oil-gas-directory-operator-contact/
  24. RRC Organization (P-5) Query. https://webapps2.rrc.texas.gov/EWA/organizationQueryAction.do
  25. Oklahoma Corporation Commission, OCC Well Data Finder User Guide (linked from the OCC Well Data Finder page, last modified Aug. 19, 2026). https://oklahoma.gov/content/dam/ok/en/occ/documents/og/ogcd_automated/esri-occ-well-data-finder-manual.pdf
  26. NASAA (published via Arizona Corporation Commission), Investor Alert: Oil and Gas Investment Fraud. https://azcc.gov/docs/default-source/az-investor-files/investment-scams/oil-and-gas-investor-alert-nasaa.pdf
  27. Colorado Energy and Carbon Management Commission, COGIS Facility Search (Facility Inquiry), page as retrieved Oct. 1, 2026. https://ecmc.state.co.us/cogisdb/Facility/FacilitySearch
  28. Pennsylvania Department of Environmental Protection, Oil and Gas Reports, page as retrieved Oct. 1, 2026. https://www.pa.gov/agencies/dep/data-and-tools/reports/oil-and-gas-reports
  29. 17 C.F.R. § 230.502(b)(1). https://www.ecfr.gov/current/title-17/section-230.502
  30. PDC 2004–2006 Drilling Program, Form 424B3 (Limited Partnership Agreement, Appendix A). https://www.sec.gov/Archives/edgar/data/0001270425/000127042505000005/pdc424b3july1820051.htm
  31. SEC Office of Investor Education and Advocacy, Investor Alert, “Private Oil and Gas Offerings,” SEC Pub. No. 142 (Apr. 2013), discussing SEC v. Petroleum Unlimited, LLC. https://www.sec.gov/files/ia_oilgas.pdf
  32. IRS Publication 5652, Oil and Gas Audit Technique Guide, Glossary. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  33. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank, copyright American Association of Professional Landmen), Art. VI.B.2(b)(i), filed as Exhibit 4.3 in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  34. A.A.P.L. Form 610-1989 Model Form Operating Agreement (unexecuted/blank), Art. VI.B.2(b)(ii) and VI.B.2(c), filed as Exhibit 4.3 (Sample Joint Operating Agreement) in South Dakota Public Utilities Commission Docket EL15-036. https://puc.sd.gov/commission/dockets/electric/2015/el15-036/exhibit4.3.pdf
  35. Synthesis of Art. VI.B.2(b)(ii) figures in: Vanguard Natural Resources/Vinland Energy JOA (2007 S-1/A Ex. 10.16, 200%); Haas Petroleum JOA (EnerJex Resources 8-K Ex. 10.1 filed Feb. 2, 2011, 300%); Rhino Resource Partners/Gulfport JOA (10-Q Ex. 10.2 filed Nov. 9, 2012, 400%); Alamo Energy/Boardman JOA (2010 8-K Ex. 10.1, 400%); Mewbourne Energy Partners 09-A JOA (2010 Form 10 Ex. 10.2, 400%); Beta Oil & Gas JOA (2003 10-Q Ex. 10.46, 500%). https://www.sec.gov/Archives/edgar/data/1059324/000110465903026618/a03-4929_1ex10d46.htm
  36. Topaz Resources, Inc., Subscription Agreement for Browning #2 Well/Unit, Exhibit 10.03 to Form 8-K. https://www.sec.gov/Archives/edgar/data/1459764/000116552711000360/ex10-03.txt
  37. 17 C.F.R. § 210.4-10(a)(24). https://www.law.cornell.edu/cfr/text/17/210.4-10
  38. Petroleum Resources Management System (PRMS), Table 3 “Reserves Category Definitions and Guidelines,” p. 35. https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  39. Texas State Securities Board, “Gusher of Debt: Texas Oilman Concealing Bankruptcies, Fraud, Sanctions,” press release. https://ssb.texas.gov/news-publications/gusher-debt-texas-oilman-concealing-bankruptcies-fraud-sanctions
  40. Texas State Securities Board, Investor Alert: Private Oil and Gas Offerings, discussing Woodland Resources. https://www.ssb.texas.gov/news-publications/investor-alert-private-oil-and-gas-offerings
  41. Texas State Securities Board, “Oil Company Pays $20,000 Fine, Will Make $1.5 Million Refund Offer to Investors,” Feb. 21, 2020 (with the July 10, 2019 Emergency Cease and Desist Order re: Woodland Resources/Patman). https://www.ssb.texas.gov/news-publications/oil-company-pays-20000-fine-will-make-15-million-refund-offer-investors
  42. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2018, filed April 1, 2019 (accession 0001387131-19-002346). https://www.sec.gov/Archives/edgar/data/1353722/000138713119002346/mep06-10k_123118.htm
  43. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  44. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  45. IRC § 469(c)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim
  46. NASAA, Statement of Policy Regarding Registration of Oil and Gas Programs, § IV.C.2(d)(7). https://www.nasaa.org/wp-content/uploads/2011/07/Registration-of-Oil-Gas-Programs-Amended-May-6-2012.pdf
  47. Tex. Prop. Code § 56.021(a). https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  48. Okla. Stat. tit. 42, 146. https://oksenate.gov/sites/default/files/2022-05/os42.pdf
  49. Tex. Prop. Code §§ 56.002–56.003. https://tcss.legis.texas.gov/resources/PR/pdf/PR.56.pdf
  50. Tex. Prop. Code § 56.003. https://statutes.capitol.texas.gov/Docs/PR/htm/PR.56.htm
  51. Joint Operating Agreement (Haas Petroleum, LLC), Exhibit 10.1, Art. VII.C. https://www.sec.gov/Archives/edgar/data/8504/000119312511021939/dex101.htm
  52. 17 C.F.R. § 230.503(a)(3)(i)–(iii). https://www.ecfr.gov/current/title-17/chapter-II/part-230/subject-group-ECFR6e651a4c86c0174/section-230.503
  53. SEC, Securities Act Release No. 11336, In the Matter of David C. Underwood (Dec. 9, 2024), paras. 2 and 12. https://www.sec.gov/files/litigation/admin/2024/33-11336.pdf
  54. SEC, Securities Act Release No. 11336, In the Matter of David C. Underwood (Dec. 9, 2024), para. 16. https://www.sec.gov/files/litigation/admin/2024/33-11336.pdf
  55. SEC, Securities Act Release No. 11336, In the Matter of David C. Underwood (Dec. 9, 2024), paras. 3 and 13. https://www.sec.gov/files/litigation/admin/2024/33-11336.pdf
  56. SEC, Securities Act Release No. 11336, In the Matter of David C. Underwood (Dec. 9, 2024), Section II and Order IV.D, para. 23. https://www.sec.gov/files/litigation/admin/2024/33-11336.pdf
  57. SEC, Securities Act Release No. 11336, In the Matter of David C. Underwood (Dec. 9, 2024), paras. 1 and 8. https://www.sec.gov/files/litigation/admin/2024/33-11336.pdf
  58. SEC, Securities Act Release No. 11336, In the Matter of David C. Underwood (Dec. 9, 2024), para. 8. https://www.sec.gov/files/litigation/admin/2024/33-11336.pdf
  59. Tex. Nat. Res. Code § 91.401(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  60. Tex. Nat. Res. Code § 91.401(3)–(4). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.401
  61. Tex. Nat. Res. Code § 91.502. https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.502
  62. Tex. Nat. Res. Code § 91.402(a). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  63. Tex. Nat. Res. Code § 91.402(a)(1)–(2). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  64. Tex. Nat. Res. Code § 91.402(b). https://statutes.capitol.texas.gov/Docs/NR/htm/NR.91.htm#91.402
  65. COPAS Accounting Procedure (MF-8, 2022 rev.), sec. II.7. https://copas.org/wp-content/uploads/MF-8-2022-Accounting-Procedure.pdf
  66. COPAS, Overhead Adjustment Factors / Economic Factors page. https://copas.org/resources/economic-factors/
  67. Railroad Commission of Texas, Production Data Query (Oil & Gas Data Query), page as retrieved Oct. 1, 2026. https://webapps2.rrc.texas.gov/EWA/ewaPdqMain.do
  68. Oklahoma Tax Commission, Gross Production, Obtaining Historical Data, page as retrieved Oct. 1, 2026. https://oklahoma.gov/tax/businesses/gross-production.html
  69. SEC press release 2013-256, “SEC Halts Texas-Based Oil and Gas Investment Scheme.” https://www.sec.gov/newsroom/press-releases/2013-256
  70. Tex. Prop. Code § 72.101(a). https://statutes.capitol.texas.gov/Docs/PR/htm/PR.72.htm#72.101
  71. IRC § 1254(a); Treas. Reg. § 1.1254-1. https://www.law.cornell.edu/cfr/text/26/1.1254-1
  72. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  73. Society of Petroleum Engineers, Petroleum Resources Management System (PRMS), 2018 (SPE Board approved June 2018), sec. 2.2.2.2; SPE Petroleum Reserves Definitions page. https://www.spe.org/en/industry/reserves/
  74. PRMS glossary, “Qualified Reserves Auditor.” https://www.spe.org/media/filer_public/0c/83/0c835db9-501f-4ce7-97f1-a1d6bb4e3331/prmgmtsystem_v103.pdf
  75. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 1 (Business) and Note 1 to Financial Statements. https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  76. Mewbourne Energy Partners 09-A, L.P., Form 10-K for FY2014, Item 2 (Third Party Review of Reserves Estimate). https://www.sec.gov/Archives/edgar/data/1462103/000138713115001107/mep09-10k_123114.htm
  77. Tex. Prop. Code § 13.002. https://statutes.capitol.texas.gov/Docs/PR/htm/PR.13.htm
  78. Oklahoma Corporation Commission, Oil and Gas Data Files, page as retrieved Oct. 1, 2026. https://oklahoma.gov/occ/divisions/oil-gas/oil-gas-data.html

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Chapter 37 The machines need power

43 notes

  1. Short-Term Energy Outlook, October 2026. https://www.eia.gov/outlooks/steo/pdf/steo_full.pdf
  2. United States Data Center Energy Usage Report: 2025 Update (LBNL-2001758, DOI 10.71468/P1RP4F). https://www.energy.gov/documents/united-states-data-center-energy-usage-report-2025-update
  3. Energy and AI. https://iea.blob.core.windows.net/assets/de9dea13-b07d-42c5-a398-d1b3ae17d866/EnergyandAI.pdf
  4. U.S. Natural Gas Deliveries to Electric Power Consumers (Monthly). https://www.eia.gov/dnav/ng/hist/n3045us2m.htm
  5. Entergy Louisiana receives LPSC approval for major infrastructure investments to support Meta’s data center and improve reliability. https://www.entergy.com/news/entergy-louisiana-receives-lpsc-approval-for-major-infrastructure-investments-to-support-metas-data-center-and-improve-reliability
  6. Entergy Corp. Form 10-Q for quarter ended June 30, 2026. https://www.sec.gov/Archives/edgar/data/0000065984/000006598426000283/etr-20260630.htm
  7. Georgia PSC approves plan to deliver savings for electric customers, meet energy demands of a growing state. https://www.georgiapower.com/news-hub/press-releases/psc-approves-savings-for-customers-and-energy-demands.html
  8. Key Questions on Energy and AI. https://iea.blob.core.windows.net/assets/3179f7f8-01f6-4dd6-bffa-c9f7b73f1dc9/KeyQuestionsonEnergyandAI.pdf
  9. Meta Announces Nuclear Energy Projects, Unlocking Up to 6.6 GW (about.fb.com); Talen 8-K press release June 11, 2025; Constellation release Nov. 18, 2025. https://www.world-nuclear-news.org/articles/ferc-waiver-clears-way-for-crane-clean-nuclear-interconnection
  10. New U.S. electric generating capacity expected to reach a record high in 2026 (Today in Energy). https://www.eia.gov/todayinenergy/detail.php?id=67205
  11. AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity (IMF Blog). https://www.imf.org/en/Blogs/Articles/2024/01/14/ai-will-transform-the-global-economy-lets-make-sure-it-benefits-humanity
  12. Goldman Sachs Says AI Will Eliminate 15 Million US Jobs (PYMNTS). https://www.pymnts.com/economy/2026/goldman-sachs-says-ai-will-eliminate-15-million-us-jobs/
  13. Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence. https://digitaleconomy.stanford.edu/publication/canaries-in-the-coal-mine-six-facts-about-the-recent-employment-effects-of-artificial-intelligence/
  14. Evaluating the Impact of AI on the Labor Market: Current State of Affairs. https://budgetlab.yale.edu/research/evaluating-impact-ai-labor-market-current-state-affairs
  15. The Potentially Large Effects of Artificial Intelligence on Economic Growth (Goldman Sachs). https://www.key4biz.it/wp-content/uploads/2023/03/Global-Economics-Analyst_-The-Potentially-Large-Effects-of-Artificial-Intelligence-on-Economic-Growth-Briggs_Kodnani.pdf
  16. H.R. 5830, Guaranteed Income Pilot Program Act of 2025 (introduced text, GovInfo). https://www.govinfo.gov/content/pkg/BILLS-119hr5830ih/html/BILLS-119hr5830ih.htm
  17. American AI Sovereign Wealth Fund Act, bill text (Sen. Bernie Sanders, introduced June 18, 2026). https://www.sanders.senate.gov/wp-content/uploads/AmericanAIWealthFundTextv618.pdf
  18. The Employment Effects of a Guaranteed Income: Experimental Evidence from Two U.S. States (NBER Working Paper 32719). https://www.nber.org/papers/w32719
  19. Universal Basic Income in the US and Advanced Countries (NBER Working Paper 25538; Annual Review of Economics 2019). https://www.nber.org/papers/w25538
  20. History (Alaska Permanent Fund Corporation), quoting Alaska Constitution Art. IX, sec. 15. https://apfc.org/about/history/
  21. History (Alaska Permanent Fund Corporation). https://apfc.org/about/history/
  22. Alaska PFD Division home page; Alaska Beacon (James Brooks) via States Newsroom. https://pfd.alaska.gov/
  23. FY26 Audit and Budget Proposal (Alaska Permanent Fund Corporation). https://apfc.org/fund-news/fy26-audit-and-budget-proposal/
  24. University Lands home page; Santa Rita #1 restoration news item (University Lands, UT System). https://universitylands.utsystem.edu/News/2021/6/SantaRitaWell1Restoration
  25. UTIMCO Investment Reports, Summary of Capital Flows, Permanent University Fund (UT System). https://utsystem.edu/sites/default/files/documents/report-state/2026/periodic-investment-report-fy-2026/202605-investment-summaries.pdf
  26. Alaska Supreme Court upholds PFD veto (Juneau Empire). https://juneauempire.com/news/alaska-supreme-court-upholds-pfd-veto
  27. Capturing Rents from Natural Resource Abundance: Private Royalties from U.S. Onshore Oil & Gas Production (Federal Reserve Bank of Kansas City RWP 15-04; Resource and Energy Economics 46, 2016). https://www.kansascityfed.org/documents/7728/rwp15-04.pdf
  28. Consumer Price Index News Release – June 2022. https://www.bls.gov/news.release/archives/cpi_07132022.htm
  29. The Only Constant Is Change (First Trust Market Commentary, citing Bloomberg). https://ftportfolios.com/Commentary/MarketCommentary/2023/1/3/the-only-constant-is-change
  30. S&P 500 Sector Performance (annual returns quilt). https://novelinvestor.com/sector-performance/
  31. Spot Henry Hub natural gas prices hit a historic low in 2024 (Today in Energy). https://www.eia.gov/todayinenergy/detail.php?id=64184
  32. Dorchester Minerals, L.P. Form 10-K for 2022 and 2025 (statements of changes in partners’ capital). https://www.sec.gov/Archives/edgar/data/1172358/000143774923004361/dmlp20221231_10k.htm
  33. Black Stone Minerals, L.P. Form 10-K for 2022 and 2025. https://www.sec.gov/Archives/edgar/data/1621434/000162828023004630/bsm-20221231.htm
  34. Dorchester Minerals, L.P. Forms 10-K (FY2009, FY2016, FY2019, FY2022, FY2025). https://www.sec.gov/Archives/edgar/data/1172358/000119312510040507/d10k.htm
  35. Black Stone Minerals, L.P. Form 10-K for 2020. https://www.sec.gov/Archives/edgar/data/1621434/000162828021002859/bsm-20201231.htm
  36. Dallas Fed Energy Survey – Breakeven oil prices (breakeven.xlsx, “Existing Wells” sheet). https://www.dallasfed.org/-/media/documents/research/surveys/des/documents/breakeven.xlsx
  37. Dallas Fed Energy Survey – Breakeven oil prices (data file breakeven.xlsx, “New Wells” sheet). https://www.dallasfed.org/research/surveys/des/data/breakeven
  38. S&P 500 Sector Weights (ChartRow). https://chartrow.com/sp500/sector-weights
  39. Unemployment rate rises to record high 14.7 percent in April 2020 (The Economics Daily). https://www.bls.gov/opub/ted/2020/unemployment-rate-rises-to-record-high-14-point-7-percent-in-april-2020.htm
  40. World Energy Outlook 2025. https://iea.blob.core.windows.net/assets/0a7a40a4-5dcb-4d6e-a7ad-76a1c90ec8eb/WorldEnergyOutlook2025.pdf
  41. Global EV Outlook 2026: Growing sales amid an energy crisis. https://www.cleanenergyministerial.org/content/uploads/2026/05/globalevoutlook2026.pdf
  42. World Energy Outlook 2025, Section 1.5.3 “AI for energy.” https://iea.blob.core.windows.net/assets/0a7a40a4-5dcb-4d6e-a7ad-76a1c90ec8eb/WorldEnergyOutlook2025.pdf
  43. The Only Constant Is Change (First Trust Market Commentary). https://www.ftportfolios.com/Commentary/MarketCommentary/2026/7/9/the-only-constant-is-change

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Back of the book Who Got Paid, and How

29 notes

  1. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2011, filed March 30, 2012 (SEC CIK 0001353722, accession 0001193125-12-143635). https://www.sec.gov/Archives/edgar/data/1353722/000119312512143635/d281779d10k.htm
  2. Mewbourne Energy Partners 06-A, L.P., Form 10-K for FY2018, filed April 1, 2019 (accession 0001387131-19-002346). https://www.sec.gov/Archives/edgar/data/1353722/000138713119002346/mep06-10k_123118.htm
  3. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2012, filed April 1, 2013 (SEC CIK 0001491262, accession 0001387131-13-001086). https://www.sec.gov/Archives/edgar/data/0001491262/000138713113001086/mep10-10k_123112.htm
  4. Mewbourne Energy Partners 10-A, L.P., Form 10-K for FY2022, filed March 31, 2023 (accession 0001387131-23-004231). https://www.sec.gov/Archives/edgar/data/1491262/000138713123004231/mep10-10k_123122.htm
  5. Reef Oil & Gas Drilling & Income Fund, L.P., Prospectus (Form 424B3), filed Sept. 17, 2013. https://www.sec.gov/Archives/edgar/data/1514993/000104746913009122/a2216573z424b3.htm
  6. Kinder Morgan, Inc., Form 10-K for fiscal year 2014. https://www.sec.gov/Archives/edgar/data/0001506307/000150630715000014/kmi-2014x10k.htm
  7. Kinder Morgan, Inc., Form 10-K for fiscal year 2016, CO2 segment results of operations. https://www.sec.gov/Archives/edgar/data/1506307/000150630717000008/kmi-2016x10k.htm
  8. Kinder Morgan, Inc., Form 10-K for fiscal year 2025, CO2 segment results (volumetric data). https://www.sec.gov/Archives/edgar/data/1506307/000150630726000011/kmi-20251231.htm
  9. Legacy Reserves Inc., Form 10-K for fiscal year 2019. https://www.sec.gov/Archives/edgar/data/1735828/000173582820000006/lgcy-20191231.htm
  10. Matador Resources Company, Prospectus (Form 424B4), Feb. 2, 2012, Prospectus Summary. https://www.sec.gov/Archives/edgar/data/1520006/000119312512037044/d217064d424b4.htm
  11. Cano Petroleum, Inc., Form 8-K filed July 20, 2012 (Item 1.03, confirmation of plan of reorganization); Form 8-K filed March 13, 2012. https://www.sec.gov/Archives/edgar/data/1253710/000110465912050194/a12-16776_18k.htm
  12. Aris Water Solutions, Inc., Form 10-K for fiscal year 2021, Glossary of Defined Terms. https://www.sec.gov/Archives/edgar/data/1865187/000155837022002585/aris-20211231x10k.htm
  13. Aris Water Solutions, Inc., Form 425 (joint press release with Western Midstream Partners, LP). https://www.sec.gov/Archives/edgar/data/1865187/000119312525174578/d209131d425.htm
  14. Western Midstream Partners, LP, investor press release. https://investors.westernmidstream.com/2025-10-15-WESTERN-MIDSTREAM-COMPLETES-ACQUISITION-OF-ARIS-WATER-SOLUTIONS
  15. Oklahoma Corporation Commission, Oil & Gas Conservation Division, media advisory. https://oklahoma.gov/content/dam/ok/en/occ/documents/ajls/news/2016/03-07-16advisory-aoi-volume-reduction.pdf
  16. Liberty Oilfield Services Inc., Prospectus (Form 424B4), Management (filed with SEC Jan. 16, 2018). https://www.sec.gov/Archives/edgar/data/1694028/000119312518010251/d313047d424b4.htm
  17. Cactus, Inc., Registration Statement (Form S-1), Management (filed with SEC Jan. 12, 2018). https://www.sec.gov/Archives/edgar/data/1699136/000104746918000178/a2234259zs-1.htm
  18. Cactus, Inc., Prospectus (Form 424B4), cover page (filed with SEC Feb. 9, 2018); Cactus, Inc., Amendment No. 2 to Registration Statement (Form S-1/A), cover page (filed with SEC Jan. 29, 2018). https://www.sec.gov/Archives/edgar/data/1699136/000104746918000465/a2234305zs-1a.htm
  19. Superior Energy Services, Inc., Form 8-K, Item 1.01 (Agreement and Plan of Merger), Item 1.02 and Item 3.02 (filed with SEC Feb. 3, 2021). https://www.sec.gov/Archives/edgar/data/886835/000119312521026071/d27671d8k.htm
  20. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Part I, Item 1 (Business). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  21. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Selected Financial Data. https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  22. SandRidge Mississippian Trust II, 10-K FY2019, Item 7. https://www.sec.gov/Archives/edgar/data/1538267/000153826720000012/a201910ksdr.htm
  23. SandRidge Mississippian Trust I, 10-K FY2020, Item 7 / Form 8-K, April 26, 2021. https://www.sec.gov/Archives/edgar/data/1509228/000162828021005478/a202010ksdt.htm
  24. SandRidge Permian Trust, Form 8-K, June 24, 2021, Item 1.01. https://www.sec.gov/Archives/edgar/data/1521168/000110465921085112/tm2120573d1_8k.htm
  25. CalPERS, Private Equity Program (PEP) Fund Performance Review, fund performance table. https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance?FWAction=printfunds
  26. CalPERS, Private Equity Program (PEP) Fund Performance Review. https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance
  27. Pioneer Natural Resources Co., Form S-4/A (Amendment No. 4), Reg. No. 333-59094 (filed Oct. 10, 2001), Summary Table – Merger Value and Amount of Initial Limited Partner Investment Repaid. https://www.sec.gov/Archives/edgar/data/1038357/000095013401507152/d85998a4s-4a.txt
  28. Energy 11, L.P., Form 10-Q (Q1 2026). https://www.sec.gov/Archives/edgar/data/0001581552/000143774926016285/eele20260331_10q.htm
  29. Energy 11, L.P., Partner Letter/Exhibit (2025). https://www.sec.gov/Archives/edgar/data/1581552/000143774925035026/ex_860525.htm

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Back of the book 2026 Key Numbers, with 2027 Updates

109 notes

  1. Rev. Proc. 2025-32 sec. 3.01, Table 1 (Married Individuals Filing Joint Returns and Surviving Spouses). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  2. Rev. Proc. 2025-32 sec. 3.31. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  3. Rev. Proc. 2025-32 sec. 3.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  4. Rev. Proc. 2025-32 sec. 4.42(1). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  5. IRC § 1411(a)(1), (b). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1411&num=0&edition=prelim
  6. IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  7. SSA, 2026 COLA Fact Sheet / wage base announcement (Oct. 24, 2025). https://www.ssa.gov/oact/cola/cbb.html
  8. Tex. Tax Code § 202.052(a). https://texas.public.law/statutes/tex._tax_code_section_202.052
  9. Pub. L. 119-21, § 70601(b). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  10. Rev. Proc. 2024-40 sec. 3.32 (2025: $313,000, $626,000 joint); Rev. Proc. 2025-32 sec. 3.31 (2026); Pub. L. 119-21, § 70601(b) (new base year). https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
  11. IRC § 1401(b)(2)(A). https://www.law.cornell.edu/uscode/text/26/1401
  12. IRS Notice 2026-11, sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  13. Pub. L. 119-21, § 70105(b)(1), rewriting IRC § 199A(i); U.S. Code editorial note (“Amendments 2025”) under IRC § 199A. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section199A&num=0&edition=prelim
  14. Pub. L. 119-21, § 70106(a)(3), (b), striking IRC § 2010(c)(3)(C); U.S. Code editorial note (“Amendments 2025”) under IRC § 2010. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section2010&num=0&edition=prelim
  15. Rev. Proc. 2025-32 (Oct. 9, 2025); IRS newsroom, checked Oct. 6, 2026. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  16. Social Security Administration, press release, Oct. 24, 2025; Social Security Act sec. 230. https://www.ssa.gov/news/en/press/releases/2025-10-24.html
  17. Rev. Proc. 2025-32 sec. 3.01, Tables 3 and 4. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  18. Rev. Proc. 2025-32 sec. 3.01, Table 2 (Heads of Households). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  19. Rev. Proc. 2025-32 sec. 3.03 (IRC § 1(h), 1(j)(5)). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  20. Treas. Reg. § 1.1254-1(a), (b)(1)(i) and (b)(1)(iii). https://www.law.cornell.edu/cfr/text/26/1.1254-1
  21. Rev. Proc. 2025-32 (absence of any § 1411 adjustment, contrasted with IRC § 1411(b) fixed dollar figures). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  22. IRC § 1411(b)(2). https://www.law.cornell.edu/uscode/text/26/1411
  23. IRC § 3101(b)(2). https://www.law.cornell.edu/uscode/text/26/3101
  24. Treas. Reg. § 1.1411-4(a)(1)(i). https://www.ecfr.gov/current/title-26/section-1.1411-4
  25. IRC § 1402(a)(12) (92.35% net-earnings adjustment); IRC § 1401(b)(1)–(2); IRC § 1402(a)(13); IRC § 164(f). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1402&num=0&edition=prelim
  26. Rev. Proc. 2025-32 sec. 3.10. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  27. IRC § 55(b)(1)(A); Rev. Proc. 2025-32 sec. 3.10. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section55&num=0&edition=prelim
  28. IRC § 461(l)(3)(A). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  29. IRC § 461(l)(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  30. IRC § 172(a)(2). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section172&num=0&edition=prelim
  31. IRC § 461(l)(1)(B); Pub. L. 119-21, § 70601(a), (c)(1) (2025 amendment notes). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section461&num=0&edition=prelim
  32. Pub. L. 119-21, § 70601(a), (c)(1). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  33. Pub. L. 119-21, § 70107(c)–(d). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.htm
  34. Treas. Reg. § 1.612-4(d). https://www.law.cornell.edu/cfr/text/26/1.612-4
  35. IRC § 613A(c)(1). https://www.law.cornell.edu/uscode/text/26/613A
  36. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  37. Treas. Reg. § 1.612-4(e). https://www.law.cornell.edu/cfr/text/26/1.612-4
  38. IRC § 167(h)(1)–(2). https://www.law.cornell.edu/uscode/text/26/167
  39. Pub. L. 119-21, § 70301; IRS Notice 2026-11 sec. .02(1). https://www.irs.gov/pub/irs-drop/n-26-11.pdf
  40. Author’s calculation from note 3. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  41. IRC § 613A(c)(3)(B); Treas. Reg. § 1.613A-3. https://www.law.cornell.edu/uscode/text/26/613A
  42. IRC § 613A(c)(3). https://www.law.cornell.edu/uscode/text/26/613A
  43. IRC § 613(a). https://uscode.house.gov/view.xhtml?req=%28title%3A26+section%3A613+edition%3Aprelim%29
  44. IRC § 613A(d)(1). https://www.law.cornell.edu/uscode/text/26/613A
  45. IRS Notice 2026-35, 2026-25 I.R.B. 1580 (2026 marginal-production percentage; 2025 reference price). https://www.irs.gov/irb/2026-25_irb
  46. IRC § 613A(c)(6)(E). https://www.law.cornell.edu/uscode/text/26/613A
  47. IRC § 613A(c)(6)(C). https://www.law.cornell.edu/uscode/text/26/613A
  48. IRC § 45I(b)(2)(A)–(C); IRS Notice 2026-46, 2026-35 I.R.B. 182 (2025 reference price $63.40); IRS Notice 2026-42, 2026-29 I.R.B. 41 (2026 inflation adjustment factor 1.6295). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section45I&num=0&edition=prelim
  49. IRC § 43(b)(1) and § 43(b)(3)(A), as restated in IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  50. IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  51. IRC § 45I(c)(3)(A), as described in IRS Notice 2026-42, 2026-29 I.R.B. 41. https://www.irs.gov/pub/irs-irbs/irb26-29.pdf
  52. IRC § 43(a), as described in IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  53. IRC § 45Q(b)(1)(A) and § 45Q(h)(1), as amended by Pub. L. 119-21, § 70522(b), (d)(2) (139 Stat. 279–280). https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section45Q&num=0&edition=prelim
  54. IRS Notice 2026-46 Table 2, 2026-35 I.R.B. 184. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  55. Rev. Proc. 2025-32 sec. 3.14 (implementing Pub. L. 119-21, § 70106, amending IRC § 2010(c)(3)). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  56. Rev. Proc. 2025-32 sec. 4.42(2). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  57. Rev. Proc. 2025-32 sec. 4.41. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  58. Pub. L. 119-21, § 70105(a)(1)–(2), amending IRC § 199A(b)(3)(B) and 199A(d)(3). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  59. Pub. L. 119-21, § 70105(b)(1), adding IRC § 199A(i)(1)–(3). https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
  60. 68 O.S. § 1001(B)(1)–(2). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  61. Tex. Tax Code § 201.052(a). https://texas.public.law/statutes/tex._tax_code_section_201.052
  62. Tex. Tax Code § 202.052(b); qualification under sec. 202.054. https://texas.public.law/statutes/tex._tax_code_section_202.054
  63. Tex. Tax Code § 201.057(c). https://texas.public.law/statutes/tex._tax_code_section_201.057
  64. Tex. Tax Code § 202.056. https://texas.public.law/statutes/tex._tax_code_section_202.056
  65. 68 O.S. § 1001(B)(3). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  66. 68 O.S. § 1001(B)(3)–(4); Oklahoma Secretary of State, State Question No. 795 initiative petition filing (Dec. 20, 2017). https://www.sos.ok.gov/documents/questions/795.pdf
  67. 68 O.S. § 1001(D)(1)–(3). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  68. Tex. Tax Code § 23.175(a)–(b) (appraisal of oil or gas interest); Tex. Tax Code § 202.052(a) (severance tax). https://statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm#23.175
  69. 68 O.S. § 1001(K) (see also sec. 1001(L) for equipment limits). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  70. Texas Comptroller, Franchise Tax. https://comptroller.texas.gov/taxes/franchise/
  71. Tex. Tax Code § 171.0003. https://texas.public.law/statutes/tex._tax_code_section_171.0003
  72. 68 O.S. § 2385.26(A). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  73. Okla. Tax Comm’n, 2025 Oklahoma Nonresident/Part-Year Income Tax Forms and Instructions (Form 511-NR Packet), p. 5, “What Is Oklahoma Source Income?” https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-NR-Pkt.pdf
  74. Tex. Const. art. VIII, sec. 24-a. https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24-a.htm
  75. Tex. Const. art. VIII, secs. 24-b and 26 (adopted Nov. 4, 2025). https://tlc.texas.gov/docs/legref/TxConst.pdf
  76. 68 O.S. § 2355(C)–(D), as amended by 2025 Okla. Sess. Laws, H.B. 2764 sec. 2. https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF
  77. 68 O.S. § 2355(D)(1), as amended by H.B. 2764. https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF
  78. 68 O.S. § 2355(D)(2), as amended by H.B. 2764. https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/hB/HB2764%20ENR.PDF
  79. 68 O.S. § 2385.26(C). https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf
  80. 68 O.S. § 2353(10) (Oklahoma depletion option); Oklahoma Tax Commission 2025 Form 511 Packet, Schedule 511-A “Oklahoma Depletion” and Schedule 511-B “Add Back of Excess Federal Depletion” instructions. https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-Pkt.pdf
  81. Cal. Franchise Tax Board, 2025 California Tax Rate Schedules (2025 Personal Income Tax Booklet). https://www.ftb.ca.gov/forms/2025/2025-540-tax-rate-schedules.pdf
  82. FTB 2025 Form 540 Booklet, line 62 instructions. https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf
  83. California Franchise Tax Board, Tax News, October 2026, “2026 Indexing.” https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/index.html
  84. Cal. Rev. & Tax Code § 17260; FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  85. Cal. Rev. & Tax Code § 17681; FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  86. FTB Pub. 1001 (2025). https://www.ftb.ca.gov/forms/2025/2025-1001-publication.pdf
  87. N.Y. Tax Law § 601(a)(1)(B)(vii), as amended by 2025 N.Y. Laws ch. 59 (S.3009-C/A.3009-C), Part B, § 1. https://legislation.nysenate.gov/pdf/bills/2025/s3009c
  88. N.Y. Tax Law § 601(c)(1)(B)(vii), as amended by 2025 N.Y. Laws ch. 59 (S.3009-C/A.3009-C), Part B, § 5. https://legislation.nysenate.gov/pdf/bills/2025/s3009c
  89. NY DTF Form IT-201-I (2025), New York State tax computation. https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
  90. NY DTF Form IT-225-I (2025) instructions. https://www.tax.ny.gov/pdf/current_forms/it/it225i.pdf
  91. NY DTF Form IT-201-I (2025), p. 40, “How to calculate your 2025 New York City tax” – NYC tax rate schedule. https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
  92. Pub. L. No. 119-21, sec. 70106 (2025), amending IRC § 2010(c)(3); Rev. Proc. 2025-32, sec. 2.14; IRC § 2631(c). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  93. Pub. L. No. 119-21, sec. 70107(b) (2025), amending IRC § 55(d)(4); Rev. Proc. 2025-32, sec. 2.07. https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  94. IRC § 199A(i), added by Pub. L. No. 119-21, sec. 70105(b) (2025); Rev. Proc. 2025-32, sec. 2.12. https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  95. Pub. L. No. 119-21, sec. 70522(b) (2025), amending IRC § 45Q(b)(1)(A). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
  96. IRC § 1202(b), (d), as amended by Pub. L. No. 119-21, sec. 70431 (2025). https://www.law.cornell.edu/uscode/text/26/1202
  97. IRC § 164(b)(6)–(7), as amended by Pub. L. No. 119-21, sec. 70120 (2025). https://www.law.cornell.edu/uscode/text/26/164
  98. California Franchise Tax Board, Net Operating Loss (Suspension of NOL deduction for 2024 through 2026). https://www.ftb.ca.gov/file/business/deductions/net-operating-loss.html
  99. Oklahoma Tax Commission, 2026 Tax Legislation Summary (HB 3986). https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/publications/legislation/2026LegislativeUpdate.pdf
  100. EPA, Oil and Natural Gas Sector Climate Review: Extension of Deadlines, final rule, 90 Fed. Reg. 55671 (Dec. 3, 2025). https://www.federalregister.gov/documents/2025/12/03/2025-21788/oil-and-natural-gas-sector-climate-review-extension-of-deadlines-in-standards-of-performance-for-new
  101. 43 C.F.R. § 3104.1 (current), as amended at 90 Fed. Reg. 59069 (Dec. 18, 2025). https://www.ecfr.gov/current/title-43/subtitle-B/chapter-II/subchapter-C/part-3100/subpart-3104/section-3104.1
  102. Bureau of Land Management, Oil and Gas Leasing, proposed rule, 91 Fed. Reg. 38084 (June 24, 2026). https://www.federalregister.gov/documents/2026/06/24/2026-12734/oil-and-gas-leasing
  103. Treasury Department and IRS, 2026–2027 Priority Guidance Plan (Sept. 29, 2026), appendix. https://www.irs.gov/pub/irs-counsel/2026-2027-initial-pgp.pdf
  104. H.R. 383, 119th Cong. (introduced Jan. 14, 2025). https://www.govinfo.gov/content/pkg/BILLS-119hr383ih/html/BILLS-119hr383ih.htm
  105. S. 2444, 119th Cong. (introduced July 24, 2025); H.R. 4714, 119th Cong. (introduced July 23, 2025). https://www.govinfo.gov/content/pkg/BILLS-119s2444is/html/BILLS-119s2444is.htm
  106. S. 4222, 119th Cong. (introduced Mar. 26, 2026). https://www.govinfo.gov/content/pkg/BILLS-119s4222is/html/BILLS-119s4222is.htm
  107. H.R. 8034, 119th Cong. (introduced Mar. 20, 2026); S. 4604, 119th Cong. https://www.govinfo.gov/content/pkg/BILLS-119hr8034ih/html/BILLS-119hr8034ih.htm
  108. SEC press release 2026-96 (Sept. 30, 2026); SEC Release No. 33-11449. https://www.sec.gov/newsroom/press-releases/2026-96-sec-proposes-amendments-expand-responsible-retailization-private-markets
  109. H.R. 3383, 119th Cong. (referred in Senate, Dec. 15, 2025). https://www.govinfo.gov/content/pkg/BILLS-119hr3383rfs/html/BILLS-119hr3383rfs.htm

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Back of the book The Comparison Chart

75 notes

  1. IRC § 613A(c)(1). https://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title26-section613A&num=0&edition=prelim
  2. IRC § 613A(c)(6)(C). https://www.law.cornell.edu/uscode/text/26/613A
  3. IRC § 469(e)(1); Treas. Reg. § 1.469-2T(c)(3)(i). https://www.law.cornell.edu/cfr/text/26/1.469-2T
  4. Sentry Mineral Holdings III, LP, SEC Form D, filed Sept. 30, 2025. https://www.sec.gov/Archives/edgar/data/2088118/000208811825000002/primary_doc.xml
  5. Treas. Reg. § 1.611-1(a); IRC § 613(a), 613A(c) & (d)(1). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  6. Treas. Reg. § 1.611-1(a)(1), (b)(1); IRC § 613(a), 613A(c); IRC § 1221/1231. https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR1d8cb30f9f8e91c/section-1.611-1
  7. Klondike Royalties, LP, SEC Form D, filed May 30, 2024. https://www.sec.gov/Archives/edgar/data/2003542/000200354224000001/primary_doc.xml
  8. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.C.8 (Top Leasing). https://www.irs.gov/pub/irs-pdf/p5652.pdf
  9. Treas. Reg. § 1.612-3(c)(2). https://www.law.cornell.edu/cfr/text/26/1.612-3
  10. CSR Leasehold III, LP, SEC Form D, filed June 4, 2026. https://www.sec.gov/Archives/edgar/data/2136363/000213636326000001/primary_doc.xml
  11. Landbank III, LP, SEC Form D, filed May 4, 2026. https://www.sec.gov/Archives/edgar/data/2131987/000213198726000001/primary_doc.xml
  12. Rev. Rul. 77-176, 1977-1 C.B. 77. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  13. IRS Oil and Gas Industry Audit Technique Guide (Pub. 5652), Section II.D.1. https://www.irs.gov/pub/irs-pdf/p5652.pdf
  14. IRC § 469(c)(3)(A). https://www.law.cornell.edu/uscode/text/26/469
  15. Treas. Reg. § 1.612-4(a). https://www.law.cornell.edu/cfr/text/26/1.612-4
  16. USEIG Rocking Chair Joint Venture, SEC Form D, filed May 31, 2024. https://www.sec.gov/Archives/edgar/data/2025240/000202524024000001/primary_doc.xml
  17. MCAP S-Federal 1A Joint Venture, SEC Form D, filed July 31, 2023. https://www.sec.gov/Archives/edgar/data/1987498/000198749823000001/primary_doc.xml
  18. Mewbourne Energy Partners 10-A, L.P., Form 10-K (FY2016), Item 1 (Business). https://www.sec.gov/Archives/edgar/data/0001491262/000138713117001766/mep10-10k_123116.htm
  19. MCAP-Madison 2 Joint Venture, SEC Form D/A, filed July 31, 2023. https://www.sec.gov/Archives/edgar/data/1958750/000198749823000003/primary_doc.xml
  20. Invito DrillCo 2025, LP, SEC Form D, filed Aug. 20, 2025. https://www.sec.gov/Archives/edgar/data/2082623/000208262325000001/primary_doc.xml
  21. Panex Acquisition Fund #1, LLC, SEC Form D, filed Oct. 28, 2024. https://www.sec.gov/Archives/edgar/data/2042675/000204267524000002/primary_doc.xml
  22. FINRA, “Concentrate on Concentration Risk,” Investor Insights. https://www.finra.org/investors/insights/concentration-risk
  23. Rev. Proc. 2025-32 sec. 4.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  24. Tex. Tax Code § 202.056. https://texas.public.law/statutes/tex._tax_code_section_202.056
  25. GO ROG LLC, SEC Form D, filed Nov. 13, 2025. https://www.sec.gov/Archives/edgar/data/2093722/000209372225000004/primary_doc.xml
  26. IRS Notice 2026-46, 2026-35 I.R.B. 182. https://www.irs.gov/pub/irs-irbs/irb26-35.pdf
  27. Pub. L. 119-21, § 70522(b)(2)(A), amending IRC § 45Q(b)(1). https://www.govinfo.gov/content/pkg/PLAW-119publ21/pdf/PLAW-119publ21.pdf
  28. Tex. Tax Code § 202.052(a)–(b). https://texas.public.law/statutes/tex._tax_code_section_202.052
  29. EMH Resources, LLC, SEC Form D, filed May 15, 2015. https://www.sec.gov/Archives/edgar/data/1484525/000148452515000001/primary_doc.xml
  30. TEXSTAR-SHANKLIN TITANIUM DEVELOPMENT LP, SEC Form D, filed July 3, 2014. https://www.sec.gov/Archives/edgar/data/1612678/000161267814000001/primary_doc.xml
  31. Reef Oil & Gas Income and Development Fund III, L.P., Form 10-K for fiscal year ended December 31, 2009, filed April 2, 2010, Item 1 (“Use of Proceeds”; “Property Acquisition and Development”). https://www.sec.gov/Archives/edgar/data/1411643/000114420410018346/v179474_10k.htm
  32. Tex. Nat. Res. Code § 91.114(a)(1)–(2). https://texas.public.law/statutes/tex._nat._resources_code_section_91.114
  33. RRC Oil & Gas Fees and Surcharges schedule. https://www.rrc.texas.gov/oil-and-gas/applications-and-permits/oil-gas-fees-surcharges/
  34. 16 Tex. Admin. Code § 3.78(g)(1)(B). https://law.cornell.edu/regulations/texas/16-Tex-Admin-Code-SS-3-78
  35. Okla. Admin. Code 165:10-1-10. https://www.law.cornell.edu/regulations/oklahoma/OAC-165-10-1-10
  36. Nebari Natural Resources Credit Fund II, LP, SEC Form D/A, filed Jan. 30, 2025. https://www.sec.gov/Archives/edgar/data/1952745/000089706925000136/primary_doc.xml
  37. Pub. L. 119-21, § 70301(b)(1)(A) (amending IRC § 168(k)(1)(A)). https://uscode.house.gov/view.xhtml?req=(title:26%20section:168%20edition:prelim)
  38. Rev. Proc. 2025-32, sec. 3.24 (IRC § 179(b)(1)). https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  39. IRC § 469(c)(2). https://www.law.cornell.edu/uscode/text/26/469
  40. Global Key Energy Equipment Fund I, LP, SEC Form D, filed April 3, 2018. https://www.sec.gov/Archives/edgar/data/1736015/000173601518000001/primary_doc.xml
  41. Rise Equipment Partners, LLC, SEC Form D, filed Oct. 22, 2025. https://www.sec.gov/Archives/edgar/data/2088349/000156611425000083/primary_doc.xml
  42. Rev. Proc. 2025-32, sec. 3.24. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
  43. Flatrock Compression Holdings LLC, SEC Form D, filed April 16, 2024. https://www.sec.gov/Archives/edgar/data/2019953/000201995324000001/primary_doc.xml
  44. Natural Gas Services Group, Inc., Form 8-K filed June 15, 2026, Exhibit 99.1 press release dated June 15, 2026; see also Item 1.01 of the same Form 8-K (ngs-20260612.htm). https://www.sec.gov/Archives/edgar/data/1084991/000108499126000054/exhibit991pressrelease.htm
  45. Hew-Tex/Mentone #3 SWD LLC, SEC Form D/A, filed April 28, 2023. https://www.sec.gov/Archives/edgar/data/1972523/000197252323000002/primary_doc.xml
  46. Hew-Tex/Haynesville SWD LLC, SEC Form D, filed Feb. 9, 2026. https://www.sec.gov/Archives/edgar/data/2110121/000211012126000001/primary_doc.xml
  47. IRC § 168(e)(3)(C)(iv). https://www.law.cornell.edu/uscode/text/26/168
  48. Roaring Fork Midstream II, LP, SEC Form D, filed March 5, 2026. https://www.sec.gov/Archives/edgar/data/2116139/000211613926000001/primary_doc.xml
  49. Eckard Midstream, LLC, SEC Form D, filed Dec. 21, 2023. https://www.sec.gov/Archives/edgar/data/2004863/000200486323000001/primary_doc.xml
  50. Rev. Proc. 87-56, as reflected in IRS Pub. 946 (2025), Table B-1, Asset Class 00.3. https://www.irs.gov/pub/irs-pdf/p946.pdf
  51. IRC § 179(d)(1). https://www.law.cornell.edu/uscode/text/26/179
  52. Cuero Oilfield Housing, LLC, SEC Form D, filed March 10, 2014. https://www.sec.gov/Archives/edgar/data/1602071/000160207114000001/primary_doc.xml
  53. IRC § 197(a). https://www.law.cornell.edu/uscode/text/26/197
  54. IRC § 168(k)(2)(A)(ii) and (k)(2)(E)(i). https://www.law.cornell.edu/uscode/text/26/168
  55. IRC § 1245(a)(1)–(2). https://www.law.cornell.edu/uscode/text/26/1245
  56. IRC § 1202(e)(3)(A)–(E). https://www.law.cornell.edu/uscode/text/26/1202
  57. Emco Oilfield Services LLC, SEC Form D, filed Aug. 30, 2021. https://www.sec.gov/Archives/edgar/data/1762437/000176243721000001/primary_doc.xml
  58. Sunbridge Energy Services Holdings, LLC, SEC Form D, filed Jan. 6, 2022. https://www.sec.gov/Archives/edgar/data/1899777/000189977722000001/primary_doc.xml
  59. ZENRG Services, Inc, SEC Form D/A, filed Sept. 10, 2025. https://www.sec.gov/Archives/edgar/data/2039091/000203909125000003/primary_doc.xml
  60. IRC § 1061(a). https://www.law.cornell.edu/uscode/text/26/1061
  61. SCF-VII(A), L.P., SEC Form D, filed April 14, 2016. https://www.sec.gov/Archives/edgar/data/1672213/000167221316000001/primary_doc.xml
  62. United States Oil Fund, LP Form 10-K FY2025, Item 1. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  63. ALPS ETF Trust Form 485BPOS (Alerian MLP ETF prospectus). https://www.sec.gov/Archives/edgar/data/1414040/000119312514121500/d700524d485bpos.htm
  64. Select Sector SPDR Trust, State Street Energy Select Sector SPDR ETF (XLE), Form 497K Summary Prospectus dated January 31, 2026, “Purchase and Sale Information.” https://www.sec.gov/Archives/edgar/data/1064641/000119312526031727/d46801d497k.htm
  65. United States Oil Fund, LP, Form 10-K for fiscal year 2025, filed Feb. 27, 2026, Statements of Financial Condition at December 31, 2025 and 2024. https://www.sec.gov/Archives/edgar/data/1327068/000110465926021501/uso-20251231x10k.htm
  66. IRC § 469(k)(2) (definition of a publicly traded partnership). https://www.law.cornell.edu/uscode/text/26/469
  67. Synthesis of IRC § 751(c) (note 70) and standard MLP return-of-capital distribution mechanics. https://www.law.cornell.edu/uscode/text/26/751
  68. Pub. L. 119-21, § 70105(b)(1), rewriting IRC § 199A(i); U.S. Code editorial note (“Amendments 2025”) under IRC § 199A. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section199A&num=0&edition=prelim
  69. IRC § 469(k)(1). https://www.law.cornell.edu/uscode/text/26/469
  70. IRC § 751(c). https://www.law.cornell.edu/uscode/text/26/751
  71. Permian Basin Royalty Trust Form 10-K FY2025. https://www.sec.gov/Archives/edgar/data/319654/000119312526128561/pbt_10-k_2025-12-31.htm
  72. Dorchester Minerals, L.P., Form 10-K for fiscal year ended December 31, 2025, filed Feb. 24, 2026, cover page. https://www.sec.gov/Archives/edgar/data/1172358/000143774926005376/dmlp20251231_10k.htm
  73. Permian Basin Royalty Trust, Form 10-K/Annual Report for FY2024, Item 5 (quarterly sales price table). https://pbt-permian.com/wp-content/uploads/2025/04/PermianBasin24AR.pdf
  74. Citizen Energy Partners Opportunities Fund II, L.P. – KC Capital Access Fund, SEC Form D, filed May 30, 2024. https://www.sec.gov/Archives/edgar/data/2024902/000202490224000001/primary_doc.xml
  75. White River Energy Partners I LP, SEC Form D/A, filed Nov. 30, 2023. https://www.sec.gov/Archives/edgar/data/1956736/000187978523000059/primary_doc.xml

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Back of the book About the Author

1 note

  1. Inc. magazine, Inc. 5000 company profile “Camrock,” inc.com/profile/camrock-oil-supply, Internet Archive capture of June 29, 2022. https://web.archive.org/web/20220629231555/https://www.inc.com/profile/camrock-oil-supply

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