- 2 -2
related statutes, and FERC regulations, determinations
concerning tight formation gas were required for both
the field in which a well was situated and the
individual well. R determined that sec. 29, through
reference to NGPA sec. 503, required individual well-
category determinations to qualify for the tax credit.
P contends and R does not deny that but for the lack of
a certification under NGPA sec. 503, the well in
question would meet the qualifications for tight
formation gas. P contends that meeting the
qualification by definition (in substance) should
suffice and that actual certification is unnecessary.
Held: Sec. 29, I.R.C., when read in conjunction
with the provisions of NGPA sec. 503 and related
materials, requires an individual well tight formation
gas determination under the procedures of NGPA sec. 503
as prerequisite to tax credit eligibility.
Douglas A. Pluss and Ronald M. Morris, for petitioner.
Richard D. D'Estrada, for respondent.
GERBER, Judge: Respondent mailed to True Oil Co.
(petitioner), as tax matters partner, notices of final
partnership administrative adjustment with respect to Nielson-
True Partnership for the taxable years 1991 and 1992. The sole
adjustment and issue concerns respondent's disallowance of
section 291 credits in the amounts of $10,170 and $4,394 for 1991
and 1992, respectively.2
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the taxable years at issue,
and Rule references are to this Court's Rules of Practice and
Procedure.
2 These cases were consolidated for purposes of trial,
briefing, and opinion.
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