An Owner's Manual For Exhibit C (Tax Matters) to the Model Form Mining Venture Agreement

In the three years following the publication of the Rocky Mountain Mineral Law Foundation's Model Form Mining Venture Agreement (the Model Agreement), Congress has passed two major tax acts and the Internal Revenue Service has issued extensive final regulations relating to partnership allocations, all of which necessitate some revisions to Exhibit C (Tax Matters) to the Model Agreement. Responding to that need, this paper proposes an updated form of Exhibit C. It also discusses the provisions (both old and new) of the revised [13-2] exhibit so that those who use it will have some sense of its function and purpose. This discussion is not intended for the tax specialist. Rather, it is designed only to be an informal owner's manual which will give the non-tax specialist a basic working knowledge of what Exhibit C does, how it works, what can be changed in it and what cannot.