[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.613A-6]

[Page 460-461]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.613A-6  Recordkeeping requirements.

    (a) Principal value of property demonstrated. In the case of a 
transfer (as defined in Sec. 1.613A-7(n)) after December 31, 1974, of 
an interest in an oil or gas property (as defined in Sec. 1.613A-7(p)), 
the transferee (as defined in section 1.613A-7(o)) shall keep records 
showing the terms of the transfer, any geological and geophysical data 
in the possession of the transferee or other exploratory data with 
respect to the property transferred, and any other information which 
bears upon the question of whether at the time of the transfer the 
principal value of the property transferred had been demonstrated by 
prospecting, exploration, and discovery work.
    (b) Production from secondary or tertiary processes. Every taxpayer 
who claims depletion with respect to oil or gas produced by secondary or 
tertiary processes (as defined in Sec. 1.613A-7(k)) shall keep records 
of the secondary and tertiary processes applied and maintain records of 
the amount of production so resulting.
    (c) Retention of records. The records required by this section shall 
be kept at all times available for inspection by authorized Internal 
Revenue officers or employees, and shall be retained so

[[Page 461]]

long as the contents may become material in the administration of any 
Internal Revenue law.

[T.D. 7487, 42 FR 24264, May 13, 1977]