- 18 -18
formation gas was revoked by the Natural Gas Wellhead Decontrol
Act of 1989 (Decontrol Act), Pub. L. 101-60, sec. 3(b)(5), 103
Stat. 157, 159, effective January 1, 1993. In other words,
petitioner argues that FERC and the relevant local regulatory
agencies did not have the authority to issue well-category
determinations after that date. Petitioner also argues that, as
a general matter, the Omnibus Budget Reconciliation Act of 1990,
Pub. L. 101-508, sec. 11501, 104 Stat. 1388-479, extended and
liberalized the availability of the tax credit for tight
formation gas for wells drilled before January 1, 1993. In that
regard, the section 29 credit for tight formation gas is
allowable beyond January 1, 1993.
Conversely, respondent points out that FERC announced that
it would continue processing well-category determinations until
January 1, 1993, in order for producers to qualify for
nonconventional fuels tax credits. FERC Order No. 523, 55 Fed.
Reg. 17425 (Apr. 25, 1990). Respondent also relies on
legislative history in connection with the repeal of the
incentive-pricing provisions of the NGPA containing the statement
that the repeal was not intended to affect the availability of
the nonconventional fuels tax credit. See S. Rept. 101-39, at 9
(1989). Finally, respondent points out that Congress considered
making the nonconventional fuels tax credit permanent but
extended for only 2 years the time within which a well had to be
drilled to qualify. This extension was intended to coincide with
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011