Nielson-True Partnership, True Oil Company, Tax Matters Partner - Page 7

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          tight formation gas.  Respondent's position relies solely on the            
          absence of a well-category determination under NGPA section 503             
          for the Hanson well.                                                        
               Petitioner proposes several arguments, the main thrust of              
          which is that the use of the term "determination" in the statute            
          does not result in the requirement of a well-category                       
          determination from FERC or under NGPA section 503.  Petitioner              
          contends that the NGPA section 503 reference in section 29                  
          provides a means to a substantive definition for tight formation            
          gas and was not intended to require an actual certification under           
          the NGPA.  We agree with respondent.                                        
               Section 29 does not literally support the result petitioner            
          seeks.  The use of the term "determination" and the reference in            
          section 29(c)(2) to NGPA section 503 would require a reading of             
          both sections to fully understand the requirements and meaning of           
          section 29.  In construing a statute, courts seek the plain and             
          literal meaning of the language.  United States v. Locke, 471               
          U.S. 84, 95-96 (1985); United States v. American Trucking                   
          Associations, Inc., 310 U.S. 534, 543 (1940).  In that regard,              
          words in revenue acts are generally interpreted in their                    
          "ordinary, everyday senses".  Commissioner v. Soliman, 506 U.S.             
          168, 174 (1993) (quoting Malat v. Riddell, 383 U.S. 569, 571                
          (1966) (quoting Crane v. Commissioner, 331 U.S. 1, 6 (1947))).              
               On the other hand, words with a recognized legal or                    
          judicially settled meaning are generally presumed to have been so           

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