Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

Exercise 13

How does the tax depletion of leasehold costs differ from successful efforts or full cost
depletion? Include in your answer a discussion of the reserves used (proved reserves or
proved developed reserves), which costs are amortized, and the cost center used (i.e.,
are property costs amortized separately or by some type of grouping?). Assume for full
cost all possible costs are amortized.