Nielson-True Partnership, True Oil Company, Tax Matters Partner - Page 14

                                                    - 14 -14                                                      
             "determination" has been generally defined to mean the act of                                        
             settling a dispute, suit, or other question by an authoritative                                      
             decision, or the ascertainment or establishment of the extent,                                       
             quality, position, or character of something.  Webster's II New                                      
             Riverside University Dictionary 369 (1984).  In the legal sense,                                     
             a "determination" is a "decision of a court or administrative                                        
             agency" and, also, a "judgment and decision after weighing [all]                                     
             the [relevant] facts."  Black’s Law Dictionary 450 (6th ed.                                          
             1990).  Consequently, we do not find the term "determination"                                        
             made in accordance with NGPA section 503 to be ambiguous.                                            
             Section 29(c)(2) cannot be literally interpreted in a manner                                         
             other than that it requires a determination under the procedures                                     
             of NGPA section 503.                                                                                 
                    Petitioner's contention that a well-category determination                                    
             is not a prerequisite for eligibility for the tax credit is not a                                    
             plausible literal interpretation of section 29.  That is                                             
             especially so when NGPA section 503 is considered in tandem with                                     
             section 29, wherein it is referenced.  Certainly, section 29 does                                    
             not mean that respondent possessed the expertise or statutory                                        
             authority to make determinations of whether gas was from a tight                                     
             formation for tax credit purposes.10  Petitioner's approach does                                     

                    10 Congress considered granting but did not grant authority                                   
             to the U.S. Department of the Treasury to make determinations                                        
             under NGPA sec. 503 in the Tax Simplification Act of 1993.  See                                      
             infra note 12.  These determinations by the U.S. Department of                                       
             the Treasury were to be made consistent with NGPA sec. 503.                                          

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011