Insight and Information on the Oil, Gas, Pipeline, & Mining Industries
Minerals Make Life – an initiative created by the National Mining Association – has recently developed an infographic detailing the importance of the super element molybdenum. Few elements have a higher melting point than molybdenum, making it an extremely tough metal.
A small amount of molybdenum in a product can make a significant contribution to…
Rare earth elements are found in nearly every aspect of our lives. Televisions, smartphones, tablets, computers, stereos, and cars all contain rare earth elements. Our national security also relies on rare earths in precision-guided missiles, radar, night-vision goggles, lasers, satellites, fighter jets, and submarines. Virtually every aspect of modern society relies in part on…
On Tuesday, May 5, 2015, the Internal Revenue Service (“IRS”) released proposed regulations defining qualifying income for Master Limited Partnerships (“MLPs”). MLPs are publicly traded partnerships that are taxed as a partnership rather than a corporation.
Being taxed as a MLP has many advantages. While shareholders in a corporation face double taxation ̶ paying taxes first at the corporate level, and then at the personal level when those earnings are received as dividends ̶ owners of a partnership are taxed only once, when they receive distributions. The absence of taxes at the company level gives MLPs a lower cost of capital than is typically available to corporations, allowing the MLPs to pursue projects that might not be feasible for corporations.
To qualify as a MLP, at least 90% of the entity’s gross income must be “qualifying income.” Previously, there had been no detailed list of what constitutes qualifying income.
These proposed regulations use the term “qualifying activities” to describe activities relating to minerals or natural resources that generate qualifying income. The IRS has now provided an exclusive list of operations that constitute qualifying activities. The activities addressed include exploration, development, mining or production, processing, refining, transportation, and marketing of any natural resource.
Continue Reading New Rules on MLPs & Qualifying Income: What Oil Services and Exploration Companies Need to Know
Minerals Make Life – an initiative created by the National Mining Association – has recently developed an informative infographic on the important role silver plays in our society. Out of all metals, silver is unique in that it has the highest electrical and thermal conductively. These characteristics make silver an important ingredient in products we…
The Nevada Supreme Court recently decided that the rule against perpetuities does not apply to area-of-interest provisions in commercial mining agreements. While you should not expect this case to become a summer blockbuster starring George Clooney, it nonetheless provides certainty for area-of-interest provisions in older mining agreements in Nevada (and lends insights into how…
Dear Mineral Law Blog Readers. Sharing analysis and insight about key oil, gas, pipeline and mining law developments has been our mission since launching our Blog in late 2010. While our commitment to keep you informed hasn’t changed, technology certainly has. Back when we first started posting, it was still largely a desktop- and RSS-dominated…
Minerals Make Life – an initiative created by the National Mining Association – has recently developed an infographic explaining the importance of the mineral zinc. Many consumers do not know it, but minerals are present in products we all use on a regular basis. That includes the mineral zinc, which is used in sunscreen, swimming…
On Wednesday, July 23, 2014, the U.S. House of Representatives Subcommittee on Energy and Mineral Resources held an oversight hearing, titled “American Metals and Mineral Security: An examination of the domestic critical minerals supply and demand chain.” During the hearing, a panel of witnesses spoke on the benefits of securing a supply of minerals through domestic mining. This panel included representatives from GE Global Research and the National Defense Industrial Association, among others.
The hearing demonstrated support for H.R. 761, the National Strategic and Critical Minerals Production Act. H.R. 761 passed the House (246-178) on September 18, 2013, and is awaiting Senate approval. The purpose is to “more efficiently develop domestic sources of the minerals and mineral materials of strategic and critical importance to United States.” Key sections of H.R. 761 introduce mandates for streamlining the permitting process for mineral development and limits the permitting review period to 30 months. Continue Reading U.S. House Hearing Supports Legislation for Development of Domestic Minerals (H.R. 761)
On April 29th, the California Geological Survey (CGS) released production data from 2012 indicating that the production of construction aggregate (sand, gravel and crushed stone) increased for the first time since 2007 in California. Construction aggregate production increased by 7.3 percent to 121.3 million tons (valued at $1.162 billion). Portland cement production also increased by…
A new short video found at the website for Minerals Make Life – a National Mining Association initiative – illuminates the close ties between the widespread resurgence of manufacturing in the United States and the need for stable access to mineral resources. As manufacturing experiences a resurgence in the United States, an expected 2 to…
