A method of calculating the depreciation of a wasting asset based on the rate at which it is being used. For example, a coal mine could be depreciated on the basis of the rate at which coal is extracted from it.
A drilled well that provides little or no oil or gas, which must be kept properly plugged in most states.
The extractive industry involves the extraction of raw materials, such as minerals and metals, from the earth. This includes various forms of mining to obtain resources such as copper, coal, oil, natural gas, and other valuable minerals.
Mineral rights are the privileges granted to an individual or entity to extract and profit from the sale of natural resources such as oil, gas, and other minerals located on or beneath the surface of a piece of land. These rights can be sold or leased separately from the ownership of the land itself.
Detailed explanation of subsurface rights, their importance in real estate and mineral extraction, and how they differ from surface rights.
