Federal Taxation of Oil and Gas Transactions

William Byrnes’ authoritative Lexis treatise is the go-to analysis of the major issues for the upstream (extraction), midstream (transportation) and downstream (production refinement and distribution) aspects of the oil & gas supply chain.  Professor Byrnes collaboratively brings together the know-how of America’s top oil and gas industry advisors.

• Depletion (cost depletion and percentage depletion)
• Property unit in oil and gas operating and non-operating sites
• Joint operations, including limited liability companies
• Unit operations
• Sale versus Lease costs and tax impact
• Drilling and development
• Economic interests issues in mineral taxation
• Sharing arrangements
• Partnerships
• Depreciation
• Foreign oil and gas activities
• Foreign tax credits
• Tax returns, audits and selected audit issues in the oil and gas industry
• Federal excise taxes on oil and gas
• Selected tax issues and provisions (e.g., alternative minimum tax, at-risk rules, passive activity limits, capitalization rules, and tax treatment of environmental cleanup costs)
• State tax and substantive law issues, compared
• Pipeline taxation

Chapters

Chapter 1: Depletion–Concepts and History
Chapter 2: Cost Depletion
Chapter 3: Percentage Depletion
Chapter 4: The Property Unit
Chapter 5: Joint Operations
Chapter 6: Unit Operations
Chapter 7: Lease Costs
Chapter 8: Intangible Drilling and Development Costs: Current Expense vs. Capitalized Cost
Chapter 9: Economic Interests
Chapter 10: Sharing Arrangements
Chapter 11: Partnerships
Chapter 12: Sales and Other Dispositions
Chapter 13: Depreciation
Chapter 14: Foreign Oil and Gas Activities and the Foreign Tax Credit
Chapter 15: Selected Tax Issues and Provisions
Chapter 16: Windfall Profit Tax (Repealed)
Chapter 17: The Tax Return, Audits and Selected Audit Issues in the Oil and Gas Industry
Chapter 18: Federal Excise Taxes on Oil and Gas
Chapter 19: State Issues
Chapter 20: Master Limited Partnerships
Chapter 21: Selling versus Leasing Oil & Gas Interests
Chapter 22: Taxation of Pipelines

WILLIAM H. BYRNES

Professor William H. Byrnes (Texas A&M) is one of the leading tax and financial compliance authors with 30 books and treatises that have sold in excess of 150,000 copies in print and online with over two thousand database subscribers. His eight Lexis treatises include: Foreign Tax and Trade Briefs; Tax Havens of the World; LexisNexis Guide to FATCA Compliance; Practical Guide to U.S. Transfer Pricing; Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide; Taxation of Intellectual Property and Technology; Taxation of Oil & Gas Transactions; and International Withholding Tax Treaty Guide.  William Byrnes held a senior position of international tax for a big 6 firm and has been commissioned by a number of governments on tax and education policy. In 1994 William Byrnes pioneered online learning and in 1998 created the first online LL.M. acquiesced by the ABA.  He is developing a tax and legal risk management curriculum at Texas A&M University, including transfer pricing and country-by-country reporting risks.

LEXIS’ OIL & GAS INDUSTRY EXPERTS

The Lexis assembled team of the nation’s recognized experts of the Taxation of Oil & Gas Transactions.

Chuck Campbell, Esq. is special counsel in the Tax Department of Baker Botts L.L.P.  Chuck’s practice focuses on a wide range of federal income tax matters, with an emphasis on transactions involving clients in the energy industry, including master limited partnerships (MLPs), royalty trusts, private equity vehicles and other privately held joint ventures and partnerships.  Chuck joined Baker Botts L.L.P. in 1992 and works in the firm’s Houston office.  He is a graduate of the University of Houston Law Center (J.D.) and the University of Texas (B.B.A.).  He may be contacted at chuck.campbell@bakerbotts.com.  Contributions include Chapter 10: Sharing Agreements and Chapter 11: Partnerships.

Scott Dillow, CPA, is a Tax Partner in PwC’s National Master Limited Partnership (“MLP”) practice in Dallas, where he focuses exclusively on issues facing publicly traded partnerships (“PTPs”). Scott has significant experience in capital transactions, including asset acquisitions and public offerings. Scott works with partnerships seeking access to public capital markets to identify issues and structure transactions appropriately. In this capacity, Scott provides clients with insight into the economic and tax costs of public transactions and planning for future compliance obligations.  Prior to joining the MLP Practice, Scott was a Director in the Mergers & Acquisitions group of PwC’s Washington National Tax Services (“WNTS”) office.  Scott is a Certified Public Accountant licensed in Texas and the District of Columbia, and a member of the AICPA.  He may be contacted at scott.r.dillow@pwc.com.  His contribution includes Chapter 20: Master Limited Partnerships.

Christopher Lagrone, CPA, is a Tax Director in the Mergers & Acquisitions group of PwC’s Washington National Tax Services (“WNTS”) office.  Prior to joining that practice, Chris was a Director with PwC’s National Master Limited Partnership (“MLP”) practice in Dallas where he focused exclusively on issues facing publicly traded partnerships (“PTPs”).  Chris’ experience with partnerships includes mergers and acquisitions, IPOs, secondary offerings and various other equity transactions, partnership structuring, and qualifying income analysis.  Chris also works closely with clients on interpretation and implementation of various partnership agreements’ 704(b) and tax allocation provisions as well as compliance matters.  Chris is a Certified Public Accountant licensed in Texas and the District of Columbia, and a member of the AICPA.  He may be contacted at christopher.s.lagrone@pwc.com.  His contribution includes Chapter 20: Master Limited Partnerships.

Ted McElroy, CPA, is a director of Deloitte’s US Oil & Gas Tax practice, Deloitte Tax LLP.  His more than 30 years in the oil and gas industry has included serving as the VP of Tax of Pogo, which was purchased for $3.6 billion, and with Arthur Anderson. He may be contacted at tedmcelroy@deloitte.com.  Contributions include Chapter 2: Cost Depletion, Chapter 3: Percentage Depletion, and Chapter 5: Joint Operations.

Katie McEvilly  is an associate in the Tax Department of Baker Botts L.L.P.  She focuses on U.S. federal income tax matters, with a particular emphasis on energy-related tax matters.  Katie joined Baker Botts L.L.P. in September 2013 and works in the firm’s Houston office.  Katie is a graduate of Duke University School of Law (J.D.) and Washington University in St. Louis (B.A.).  She may be contacted at kathryn.mcevilly@bakerbotts.com.   Contributions include Chapter 10: Sharing Agreements and Chapter 11: Partnerships.

Martha Nelson is an associate with PwC’s National Master Limited Partnership (“MLP”) practice in Dallas where she focuses exclusively on issues facing publicly traded partnerships (“PTPs”). She may be contacted at martha.a.nelson@pwc.com.  Her contribution includes Chapter 20: Master Limited Partnerships.

Dr. Knut Olsen is a Chartered Global Tax Practitioner, a Chartered Transfer Pricing Specialist and a partner in Dr. Knut Olsen Global Tax UK / Norway, a company that was voted as a world leading tax firm in 2015 by World Tax 2015.  Dr. Olsen has 35 years of experience in taxation and specializes in international taxation, transfer pricing, petroleum taxation and global tax risk management. He is also a Certificated Lead ISO Auditor and has developed a system for ISO certification for transfer pricing, tax, VAT & customs.  He may be contacted at knut.tax@gmail.com.

Zackary Pullin, Esq. is a tax partner in the Houston office of Kirkland & Ellis LLP.  Zack has extensive experience advising clients on a wide range of tax matters, including complex partnership transactions, debt and equity offerings, restructurings, investment fund formations, initial public offerings, and in tax litigation.  Zack also has extensive experience representing clients in the energy industry on a multitude of oil, gas and mineral engagements, including joint development arrangements, depletion issues, taxable sale or lease transactions and volumetric production payment transactions.  Zack has represented various prominent companies, partnerships, publicly traded partnerships (PTPs) and private equity funds. He may be contacted at Zackary.Pullin@Kirkland.com. Contributions include Chapter 8: Intangible Drilling and Development Costs and Chapter 9: Economic Interests.

Dwight Tom has recently earned his J.D. from Texas A&M University School of Law and serves as a law clerk for the National Labor Relations Board Region 19. Dwight served as Survey Editor of the Texas A&M Journal of Property Law wherein he managed the annual state oil and gas survey for the Texas State Bar. He has published the article Easement Come, Easement Go—The Cemetery Access Easement: The Exception to the Right to Exclude Whose Time Has Come to Facilitate the Preservation of Nineteenth-Century Texas Family Cemeteries, 39 Environs: Envtl. L. & Pol’y J. (forthcoming Spring 2016). He may be contacted at jdwighttom@gmail.com.  His contribution includes Chapter 19: Comparison of State Oil & Gas Law.

Fred Tuthill, Esq. is a shareholder in Winstead, PC’s Taxation, Employee Benefits & Private Business practices, as well as a CPA.  Fred Tuthill has received numerous national distinctions, including being selected the last seven years for the “The Best Lawyers in America” (Woodward/White), for the list of Texas Super Lawyers (Thomson Reuters),  and for the list of Houston’s Top Lawyers of H Texas. He is Board Certified in Tax Law by the Texas Board of Legal Specialization, a member of the State Bar of Texas and District of Columbia Bar.  He may be contacted at ftuthill@winstead.com.  His contributions include Chapter 5: Joint Operations, Chapter 7: Lease Costs, and Chapter 12: Sales and Other Dispositions.

Jeff Wright, Esq. is the leader of Deloitte’s US Oil & Gas Tax practice, Deloitte Tax LLP. He has more than 20 years of experience serving oil and gas clients and has been the firm’s industry leader since 2007. In addition to Jeff’s industry leadership role, he directly serves a variety of oil and gas clients. Jeff is a regular instructor and presenter at Deloitte conferences and training programs. He has a BBA in accounting from Texas A&M University and a J.D. from the University of Houston Law Center.  He may be contacted at jeffwright@deloitte.com.  Contributions include Chapter 2: Cost Depletion, Chapter 3: Percentage Depletion, and Chapter 4: The Property Unit.

EDITORIAL TEAM

Whitney Pilch has completed her Master of Business Administration from San Diego State University in combination with her J.D. from Thomas Jefferson School of Law.  She pursued a specialization in international taxation and served for three years as the managing editor of, and update contributor for, the LexisNexis Guide to FATCA Compliance, Practical Guide to U.S. Transfer Pricing, and Taxation of Oil & Gas Transactions, as well as an update contributor for Lexis’ Foreign Tax and Trade Briefs. She may be contacted at whit.pilch@gmail.com.

Macdonald A. Norman was recently featured in the Financial Times and in E&Y’s Tax Insights magazine as the “new generation” for Big 4 tax departments.  Macdonald holds his BBA (Accounting) from Texas A&M University Mays School of Business and just completed his JD with Texas A&M University School of Law.  Macdonald’s studies have focused on taxation of oil & gas and on indirect taxation, and included interning with General Motors Financial. He has served as the editorial assistant for Lexis’ Taxation of Oil & Gas Transactions, and held a positon on the editorial board of the Texas A&M Law Review.  He will complete his LL.M. tax with Georgetown.  He may be contacted at manorman@tamu.edu.