Nielson-True Partnership, True Oil Company, Tax Matters Partner - Page 17

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                    definition as that determined by the FERC under the                                           
                    NGPA * * *   [Id. at 139-140, 1980-3 C.B. at 299-300.]                                        
             Finally, the staff of the Joint Committee's General Explanation                                      
             of COWPTA contains the statement that                                                                
                          For purposes of the credit, the definition of                                           
                    natural gas from geopressured brine, Devonian shale,                                          
                    coal seams, or a tight formation is that determined by                                        
                    the Federal Energy Regulatory Commission in accordance                                        
                    with section 503 of the Natural Gas Policy Act of 1978                                        
                    (NGPA).  * * *                                                                                
             Staff of Joint Comm. on Taxation, General Explanation of the                                         
             Crude Oil Windfall Profit Tax Act of 1980, at 81 (J. Comm. Print                                     
             1981).                                                                                               
                    Accordingly, portions of the legislative history contain the                                  
             expectation that FERC would create a definition of tight                                             
             formation gas to be utilized for purposes of obtaining the tax                                       
             credit.  Petitioner contends that, by use of the term                                                
             "determination", Congress intended to incorporate the definition                                     
             to be promulgated by FERC, rather than to require a well-category                                    
             determination for each specific well under NGPA section 503.  We                                     
             could agree that Congress expected that FERC would ultimately                                        
             define "tight formation" gas.  But Congress' choice of the term                                      
             "determination", rather than "definition", in section 29 leaves                                      
             petitioner's contentions without statutory support or substance.                                     
                    Petitioner also argues that Congress retained the                                             
             "determined in accordance with section 503" language of section                                      
             29(c)(2)(A) even though the statutory authority under the NGPA to                                    
             make determinations under section 503 for most new tight                                             




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