Earned depletion and the mining industry

"Originally intended to be implemented in 1977, but actually introduced effective May 6, 1974, the earned depletion regulations have been substantially refined and modified since their appearance on the Canadian tax scene, so that this important legislation now consists of a highly complicated set of rules which even the most astute follower of tax law has considerable difficulty sorting out!This month, Tax Notes attempts to cut through this bewildering array oj regulations, in reviewing the main features of the earned depletion allowance applicable to mining operations. Despite the phase-out of earned depletion allowances for most oil and gas operations as part of the federal government's new National Energy Program, earned depletion provisions are still alive and well for the mining sector, although they might well be slowly strangling to death in their own entanglement of complexity!"