Mich. Admin. Code R. 451.2.4 - Intra-industry exemption for persons engaged in oil, gas, and mineral business
Rule 2.4
(1)
Pursuant to section 203 of the act, MCL 451.2203, sales of certificates of
interest; participation in oil, gas, or mining titles or leases; payments out
of production under such titles or leases; or of other securities relating to
oil, gas, or mining ventures are exempt from registration requirements of
section 301 of the act, MCL 451.2301, when the offers or sales are made to any
of the following:
(a) Persons who are engaged
on a full-time basis in the business of exploring for, or the producing,
transporting, or refining of, oil, gas, or other minerals; buying, selling, and
trading of oil, gas, or mining titles or leases; payments out of production
under such titles or leases; or in any combination of the foregoing businesses
and who have at least 3 years of experience in any such business or combination
thereof.
(b) Corporations or any
subsidiaries of such corporations, any of the stock of which is listed on the
New York stock exchange or the American stock exchange, that are engaged in any
business specified in subdivision (a) of this subrule, or combination thereof,
as a principal line of business.
(2) As used in this rule, "engaged on a
full-time basis," when applied in relation to the business of exploring for, or
the producing, transporting, or refining of, oil, gas, or other minerals;
buying, selling, and trading oil, gas, or mining titles or leases; payments out
of production under such titles or leases; or any combination of the foregoing
businesses means that the person is engaged in such business as his or her
principal business activity and, in the case of an individual, that the person
is engaged in any such business in a management capacity and either maintains
an office for the conduct of such business or is employed by a person
maintaining such office.
(3) For the
purpose of this rule, a person is deemed to have had 3 years of experience in
the business of exploring for, or the producing, transporting, or refining of,
oil, gas, or other minerals; buying, selling, and trading oil, gas, or mining
titles or leases; or payments out of production under such titles or leases, if
such person was engaged in any such business, or combination thereof, on a
full-time basis during the period in question. However, a corporation,
partnership, association, or other business entity that was engaged in any such
business on a fulltime basis during the period in question is nonetheless
deemed to have had 3 years of experience in any such business or combination
thereof, if such entity had at least 1 officer or partner, or person of similar
status, who was engaged in any such business, or combination thereof, on a
full-time basis during the period in question.
Notes
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