INTANGIBLE DRILLING COSTS - IDC
Expenses incurred in developing an oil or gas well for the factors that are not included in the final operating well. This encompasses all costs created by an operator incidental to and needed in drilling and preparing wells for producing oil and gas such as survey work, drainage, employee wages, ground clearing, repairs, and supplies, among others. Generally speaking, costs are categorized as IDC if they have no salvage value. IDCs include all true and actual expenses, excluding costs for the drilling equipment.
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