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SECTION 4. APPLICATION
Internal Revenue Bulletin 1997-51 · 2026-10-03 edition · updated 2026-10-04 · United States
The Internal Revenue Service generally will issue an advance ruling that a right to mineral is a production payment if the following conditions are met:
.01 The right is an economic interest in mineral in place as defined in § 1.611– 1(b), without regard to the application of § 636;
.02 The right is limited by a specified dollar amount, a specified quantum of mineral, or a specified period of time;
.03 It is reasonably expected, at the time the right is created, that it will terminate upon the production of not more than 90 percent of the reserves then known to exist; and
1997–51 I.R.B. 23 December 22, 1997
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