Nielson-True Partnership, True Oil Company, Tax Matters Partner - Page 9

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          contain a definition of tight formation gas for purposes of the             
          nonconventional fuels tax credit.  Section 29 simply provides               
          that the "determination" of "whether any gas is produced from               
          * * * a tight formation shall be made in accordance with [NGPA]             
          section 503".  By way of contrast, another part of section 29               
          references NGPA section 2(18), 92 Stat. 3354, 15 U.S.C. sec. 3301           
          (1988), as providing the definition of the phrase "committed or             
          dedicated to interstate commerce".  See sec. 29(c)(2)(B)(i).                
               NGPA section 5037 contains procedures by which particular              
          types of natural gas may qualify for certain price incentives               


               6(...continued)                                                        
                              (i)  geopressured brine, Devonian shale,                
                         coal seams, or a tight formation, or                         
                              (ii)  biomass, and                                      
                         (C) liquid, gaseous, or solid synthetic fuels                
                         produced from coal (including lignite), including            
                         such fuels when used as feedstocks.                          
                    (2)  Gas from geopressured brine, etc.--                          
                         (A)  In general.--Except as provided in                      
                    subparagraph (B), the determination of whether any                
                    gas is produced from geopressured brine, Devonian                 
                    shale, coal seams, or a tight formation shall be                  
                    made in accordance with section 503 of the Natural                
                    Gas Policy Act of 1978.   [Emphasis added.]                       

               7 We note that the Natural Gas Wellhead Decontrol Act of               
          1989 (Decontrol Act), Pub. L. 101-60, sec. 3(b)(5), 103 Stat.               
          157, 159, eliminated wellhead and nonprice controls on the first            
          sale of natural gas.  Sec. (3)(b)(5) of the Decontrol Act                   
          repealed the Natural Gas Policy Act of 1978 (NGPA), Pub. L. 95-             
          621, sec. 503, 92 Stat. 3350, 3397, 15 U.S.C. sec. 3413 (1988),             
          effective Jan. 1, 1993.                                                     




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