organization made up of a general partner, who manages a project, and limited partners, who invest money but have limited liability, are not involved in day-to-day management, and usually cannot lose more than their capital contribution. Usually limited partners receive income, capital gains, and tax benefits; the general partner collects fees and a percentage of capital gains and income. Typical limited partnerships are in real estate, oil and gas, and equipment leasing, but they also finance movies, research and development, and other projects. Typically, public limited partnerships are sold through brokerage firms, for minimum investments of $5,000, whereas private limited partnerships are put together with fewer than 35 limited partners who invest more than $20,000 each.

exploring for oil or gas in an unproven area. A wildcat oil and gas limited partnership is structured so that investors take high risks but can reap substantial rewards if oil or gas is found in commercial quantities.

real estate, oil and gas, or equipment leasing limited partnership whose aim is high income, much of which may be taxable. Such a partnership may be designed for tax-sheltered accounts like Individual Retirement Accounts, Keogh plan accounts, or pension plans.

search for an undiscovered reservoir of oil or gas-a very risky undertaking. Exploratory wells are called wildcat (in an unproven area); controlled wildcat (in an area outside the proven limits of an existing field); or deep test (within a proven field but to unproven depths). Exploratory drilling programs are usually syndicated, and units are sold to limited partners.

tax-deductible cost. Such costs are incurred in drilling, testing, completing, and reworking oil and gas wells- labor, core analysis, fracturing, drill stem testing, engineering, fuel, geologists' expenses; also abandonment losses, management fees, delay rentals, and similar expenses.