Section DZ 4 — Income Tax Act 2007: Expenditure on abandoned exploratory well before 16 December 1991

DZ 4 Expenditure on abandoned exploratory well before 16 December 1991 Deduction (1) A petroleum miner is allowed a deduction for expenditure that they incur before 16 December 1991 in drilling, testing, completing, and abandoning an exploratory well if— (a) the miner seals and abandons the well before commercial production from the well starts; and (b) the expenditure has not been deducted in any earlier income year. Sealing and abandoning well (2) To seal and abandon an exploratory well, a petroleum miner must make a declaration under the Oaths and Declarations Act 1957 that they do not intend— (a) to use the exploratory well in petroleum mining operations; or (b) to apply for an existing privilege over the area containing the exploratory well. Timing of deduction (3) The deduction is allocated to the income year in which the well is sealed and abandoned. Link with subpart DA (4) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: capital limitation , commercial production , deduction , existing privilege , exploratory well , general limitation , general permission , income year , petroleum miner , petroleum mining operations , seal and abandonment , Compare: 2004 No 35 s DZ 4