Canada v. Resman Holdings Ltd., 2000 DTC 6350 (FCA) -- summary under Paragraph (d)

Sharlow J.A. found that expenditures incurred on two wells that were dry holes but where, in one case, the drilling rig contract for the wells was assumed by another operator with lease rights to a shallower location and, in the other case, where the respondent used the well as a water disposal well, the evidence fell short of establishing that the wells were abandoned in fact. Sharlow, J.A. also noted (at p. 6356) that "nothing in the Income Tax Act suggests that the question of abandonment of a well depends upon a compliance with provincial regulations".