Join our newsletter and get a free copy of "Maximizing Your Minerals"

Discover how you can:

  • Negotiate the best lease for your minerals
  • Understand how the oil companies work
  • Prevent costly mistakes

*Your information will not be shared with others.

Depletion Allowance | definition

The tax deduction allowed by the IRS for royalty and mineral owners to offset the decrease in value of a capital investment caused by the production (depletion) of minerals.

Return to the Glossary of D Terms or the Index of Oil & Gas Terms to search the oilfield glossary