In 1987, the government of the United States of America enacted a bill under statute 26-F. The congress was determined to support local companies involved in oil drilling. For the companies to enjoy a tax free investment program, it is subjected to meet the requirement according to the law. Ninety percent of the revenue generated by the companies from the production of the oil, processing, the storage, and transportation will be done within the US. They are also required to pay profitable freedom checks to the shareholders. With the introduction of freedom checks, it is an incentive to boost local companies that are competing with multibillions companies.Mart Badiali on his duty that required him to travel to other countries realized some companies that were legitimate to issues about freedom checks.
He noticed that the natural resource companies were mainly operating in the drilling of crude oil and refining. The companies were also exploring new wells in the US.Matt noted that the companies paid monthly and quarterly masters limited partnership. MLPs is what he refers to us freedom checks. The cash paid is treated as capital rather than income exempting the investors from paying tax. The acquisition on Masters limited Partnership shares is easy, either through a brokerage account or a mail. He also realized that the investors were making a lump sum profit between $10,000 to $50,000.The masters’ limited partnership is selling its share up to $10, thus, giving a lucrative investment opportunity to the low-income earners the ability to purchase them.
Matt also noted that MLPs is beneficial compared to the government social securities. It is easy to join since has no age limit or the amount of money to invest. Badiali listed a number of companies one can invest such as San Juan Basin Royal Trust (SJT), SunCoke Energy Partner (SXCP)s, CatchMark Timber Trust (CTT)and Sabine Royalty Trust (SRT). The companies are controlling more than billion dollars of the natural resource in the investment market. The investors are receiving payout divided ranging from five percent to ten percent depending on the best investment way of an individual. It is either given on quarterly bases or yearly depending on the policy of the company.