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Canadian Operations by United States Citizens—Net Income After Taxes From Oil and Gas or Mining

R. C. Bennett, Proceedings of 12th Annual Rocky Mountain Mineral Law Institute (1967)

With the glowing health of the Canadian economy, activity is increasing in all areas of Canadian business, and particularly in oil and gas operations. Recent discoveries of substantial reserves in reef formations in the Rainbow Field will no doubt contribute much to attract new capital to the oil and gas business in Canada and prospects are for a continuing and rapid growth of this industry. Similarly, the publicity given to discoveries of substantial ore deposits of various kinds has served to continue an interest in mining activities. Since the oil and gas industry and the mining industry are not booming in the United States, the rapid growth of these industries in Canada has aroused the increasing interest of United States oil men and miners in Canadian operations. This type of interest usually leads to action and many businessmen are leaving the familiar climate of the United States business world to start oil and gas or mining operations in Canada.

But before taking such a big step as getting involved in international operations, even in such a friendly country as Canada, these businessmen must obtain the answers to many questions, primarily those involving the economic evaluation of proposed operations. Certainly, no businessman should make such a move without the expectation of earning a reasonable return on his investment, a return commensurate with the risk in