Tax consequences of certain payments:

  • Tax consequences of a lease:
    • Lease bonus;
    • Delay rental;
    • Installment bonus payments;
    • Advanced royalties; and
    • Advanced minimum royalties;
  • Tax consequences of production payments:
    • Carved out production payments;
    • Production payments pledged for development;
    • Production payment retained in a sale transaction; and
    • Production payment retained in a leasing transaction; and
  • Leasehold costs.