Retsal Drilling Co. v. Commissioner

HUTCHESON, Circuit Judge.

This is another of that growing body of cases in which the taxpayer makes claim that moneys expended for drilling and equipping oil wells, are deductible under the intangible drilling and development costs option.1 Expenditures on eighteen wells are involved. Seven of the eighteen were drilled under contracts which provided that the owner would “furnish fuel, water, storage tanks, connections and all other material necessary and incident to the drilling and completing of the wells other than that which the contractor has obligated himself to furnish.” The contractor…