KSCPA Oil & Gas Taxation Workshop- Fundamentals- NEW (Co-sponsored by PASOK)


Tuesday, May 8, 2012
Registration Time: 8:00am
8:30am – 4:30pm

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KSU Alumni Center
1720 Alumni Ctr
Manhattan, KS 66506

Course Type


CPE Credit

8.00 hours CPE credit


John C Tripp

Level of Knowledge


Designed For

Tax professionals and attorneys involved in oil and gas industry.  Designed for 8 hours CPE.  Approved for 8 hours Kansas CLE.


Kansas Society of CPAs



Member Fee $280.00
Non-Member Fee $330.00
Late Fee
on or after May 7, 2012
Your Price $360.00

Registration for this course has passed.


Oil and Gas Taxation: Fundamentals
with John C. Tripp, Ph.D., CPA, Tax Professor, School of Accountancy and the Graduate Tax Program, University of Denver.  This event is co-sponsored by PASOK.  Member rate applies to members of COPAS, PASOK, and the KSCPA.


The conference is designed for 8 hours of CPE.  Approved for 8 hours of Kansas CLE.

Workshop Steering Committee:
Chet L. Buchman, CPA, 
Member, Swindoll Janzen Hawk & Loyd, LLC, McPherson
Kathy Mitchell, CPA, Operations Partner, Brungardt Hower Ward Elliott & Pfeifer, LC, Hays
Mitch Caddell, CPA, Manager, BKD, LLP, Wichita
Krista R. Burdick, CPA, Manager, Flint Hills Resources, Wichita
Michelle Schneider, CPA, Manager, Adams, Brown, Beran & Ball, Chtd.
Mary MacBain, CPA.CITP, CGMA President/CEO, KSCPA, Topeka

This course will cover the fundamental concepts of income taxation of the oil and gas industry with a primary emphasis on the oil and gas producer.  The tax treatment of costs incurred in the exploration, acquisition, development and production of oil and gas will be covered.  Two videos may be shown to provide an introduction to the industry and to illustrate the drilling of oil and gas wells.  This course can be taught as the first day of a two day program.

The materials for this program include a complete copy of the IRS MSSP on the Oil and Gas Industry.  The author's outlines are cross referenced to the MSSP as well as CCH's recently published treatise Oil and Gas - Federal Income Taxation (2011 Edition).   These reference materials will be used to highlight the IRS's position on various oil and gas tax questions, cases and revenue rulings.  Recently published oil and gas industry Coordinated Issue Papers will also be discussed.

The taxation of the exploration and development of natural resources is very specific to the industry and very different from regular tax accounting rules.  Concepts like the "pool of capital" doctrine, that allows certain tax free conveyances of oil and gas property interests, are not applicable to any other industry.  Other very specific rules regarding geological and geophysical expenses, the current deduction for IDCs, special depreciation recovery periods and cost and percentage depletion are unique to this industry.  If CPAs or their clients are involved in the oil and gas business the knowledge of these special industry tax rules is essential.  Any new industry rules promulgated during President Obama's administration will be covered in detail.

Who should attend?

Tax professionals involved in oil and gas industry's upstream operations and tax professionals whose clients own oil and gas mineral interests.  The people who will most benefit from this program are tax staff, tax supervisors and managers moving into the oil and gas industry.  This course will also serve as a great review for senior level managers and practitioners that have had prior experience in the industry and are seeking to reenter the field.

John C. Tripp, Ph.D., CPA is a Tax Professor with teaching responsibilities in the School of Accountancy and the Graduate Tax Program at the University of Denver (DU).  Dr. Tripp has been teaching income taxation at DU since 1979, specializing in the taxation of natural resources, property transactions and consolidated returns.  His public accounting experience includes a two year stint with KPMG prior to his teaching career, and while on a leave of absence from DU he worked in the National Tax Department of Ernst & Young as a Visiting Professor for two years.  He has also spent two sabbaticals gaining practical professional experience with the Denver offices of KPMG and Arthur Andersen & Co. 

He is an active member of the American Taxation Association and Co-chairman of the COPAS-Colorado Tax Committee.

John is a former Trustee of COPAS-Colorado and a past member of the Washington, D.C. S Corporation Study Group, as well as past Treasurer of the Denver Tax Group.  He has served on several tax committees of the Colorado Society of CPA's, and has been a member of the University of Denver's Tax Institute Planning Committee for many years. 

His articles have been published in many professional journals including: The Journal of Taxation, Taxes - The Tax Magazine, The Tax Advisor, The Journal of Partnership Taxation, Accounting Horizons, and The Oil and Gas Taxation Quarterly.  He is also a contributing author to Tax Management Inc.'s Tax Practice Series on S Corporations and Thomson's tax textbook series Federal Income Taxation and Individual Federal Taxation.

In addition to writing continuing professional education courses for MircoMash (including: Oil and Gas Taxation and Alternative Minimum Tax - Corporate), he has written and presented programs to numerous professional groups and tax institutes around the country.  Most recently he has made presentations to the 52nd Annual Texas CPA Tax Institute, Texas Society of CPAs; the Kansas Society of CPAs 2007 Annual Tax Institute; and the 2007, 2008, 2009 and 2010 AICPA-PDI National Oil and Gas Conferences.


Working definitions for oil and gas mineral interests and other industry terminology, including the unit of property and an economic interest

Geological and geophysical costs

Proper tax accounting for the leasing transaction, the subleasing transaction, including lease bonus, sublease bonus, and delay rental payments

Depreciation issues specific to oil and gas exploration and production companies

Proper tax treatment of IDCs, including what they are, the election to currently expense, and an election to capitalize IDCs under section 59(e)


Objective 1:  To gain an understanding of the upstream operations of the oil and gas industry and to understand the nomenclature used to describe oil and gas mineral interests and their economic characteristics.

Objective 2:  To understand the basic conveyancing transactions common in the oil and gas industry and to understand the tax implications arising from those conveyances.

Objective 3:  To identify and determine the proper tax treatment for geological and geophysical expenditures.

Objective 4:  To compute depreciation on lease and well equipment under MACRS rules or the units of production method.

Objective 5:  To identify intangible drilling and development costs (IDCs) and to understand the requirements that must be met in order to take a current deduction for IDCs.

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