I’m not sure what you’re saying there. Lease costs should be depreciated completely over their lifetime just like any other capital investment. There’s nothing usual about that. The depletion allowance is a separate tax break, as far as I know.
.....................Lease costs should be depreciated completely over their lifetime just like any other capital investment........................
My understanding is that the successful lease purchase is capitalized, and the write off is not normal depreciation, but a depletion allowance, that is amortized in relation to the amount pumped to the total estimated reserves leased.
A series of dry wells enable tax deductible writeoff of the entire lease cost.