Additionally, with the IRS’ proclamation that the proposed regulations are an “exclusive list” of qualifying income, a handful of commenters believe there is uncertainty around the inclusion of some items such as royalties and compression, resulting in the seeking of clarification by Black Stone Minerals (BSM) and Exterran Partners (EXLP), respectively.
In a recent Vinson & Elkins webinar that covered this topic, the panel of presenting attorneys shared their belief that to see anything finalized within a year is unlikely. There are internal factors at the IRS, such as personnel changes, that give reason for this outlook. In other words, Dan Bailey kicked it to the one-yard line and there’s a long way to go, folks. Grab a snack and stay tuned.