Eagle Drilling Venture 2019 Limited Partners will invest in the Intangible Drilling Costs (IDC). Under current tax code, this is 100% tax deductible for federal income tax purposes. (IDC cost will account for 80% of Total well expenditure). To maximize the tax incentives for the investor, Eagle Resources will functionally allocate the tangible drilling costs to ERC (20% of Total well cost). Only Royalties will be 3rd party royalties, ERC will not take a Royalty Interest.