Nielson-True Partnership, True Oil Company, Tax Matters Partner - Page 5

                                        - 5 -5                                        
          on the grounds that no submission for a determination was made              
          for the Hanson well.                                                        
                                       OPINION                                        
               This is a case of first impression stemming from                       
          respondent's disallowance of a section 29 nonconventional fuels             
          tax credit (credit).  The issue we consider is whether the Hanson           
          well qualifies for the credit even though it was not certified              
          under the procedures contained in NGPA sec. 503.  The parties               
          approach the solution to this issue from different perspectives.            
          Respondent contends that the statutes involved expressly and                
          unambiguously require that a well-category determination must be            
          obtained from the specified authorities for entitlement to the              
          credit.  Petitioner, contending that the statute is ambiguous,              
          construes the statute, when read in conjunction with the                    
          legislative history and other indicators of congressional intent,           
          as permitting the credit without a formal procedural                        
          determination if the well otherwise meets the definitional                  
          requirements under the referenced statutory framework.                      
               Section 29, formerly section 44D,5 was enacted by the Crude            
          Oil Windfall Profit Tax Act of 1980 (COWPTA), Pub. L. 96-223,               
          sec. 231, 94 Stat. 229, 268.  This section was entitled "Credit             


               5 Congress enacted sec. 44D in 1980.  See Crude Oil Windfall           
          Profit Tax Act of 1980, Pub. L. 96-223, sec. 231(a), 94 Stat.               
          268.  In the Deficit Reduction Act of 1984, Pub. L. 98-369, sec.            
          471(c)(1), 98 Stat. 826, Congress redesignated sec. 44D as sec.             
          29.                                                                         




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