NEW YORK, April 7 SandRidge Energy Inc's
letter asking the IRS whether its water disposal business
qualifies as tax-free for inclusion in a possible master limited
partnership (MLP) has been caught up in an agency's pause of
"That process has started and there was the pause," Duane
Grubert, SandRidge's head of investor relations told investors
at the OGIS energy conference in New York on Monday.
Grubert estimated the delay could last for months. SandRidge
is exploring ways, including forming an MLP, to unlock the value
of its fracking water disposal business it estimates has a value
around $1 billion.
The law firm Vinson & Elkins told its clients in recent days
that the Internal Revenue Service is reviewing the scope of
assets that can qualify as tax-free for MLPs and 'pausing' the
issuance of private letter rulings that companies normally ask
for when setting up the structures.
The IRS did not comment.
(Reporting by Anna Driver in New York, Edited by Eileen