Nielson-True Partnership, True Oil Company, Tax Matters Partner - Page 20

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                    We are persuaded that Congress intended to couple the                                         
             eligibility for the section 29 credit with the obtaining of well-                                    
             category determinations under NGPA section 503.  In particular,                                      
             the legislative history of the Decontrol Act indicates that the                                      
             repeal of FERC's determination review providing for incentive                                        
             pricing in NGPA section 503 was not intended to affect the                                           
             availability of the nonconventional fuels tax credit.  S. Rept.                                      
             101-39, supra at 9.12                                                                                
                    Equally significant, the aforementioned congressional action                                  
             illustrates an understanding that section 29 was linked with a                                       
             procedural determination under NGPA section 503.  Petitioner's                                       
             perspective is that the FERC determination process was left in                                       
             place to continue the process of defining tight formation gas.                                       
             Even if that was the basic reason for extension, the section 29                                      
             statutory language plainly requires a "determination" under NGPA                                     
             section 503.                                                                                         





                    12 See also Staff of Joint Comm. on Taxation, Technical                                       
             Explanation of the Tax Simplification Act of 1993, at 204 (J.                                        
             Comm. Print 1993). (The Tax Simplification Act of 1993 was not                                       
             enacted.)  That report contains the statement that                                                   
                    In order to ensure that qualifying gas production                                             
                    from such wells in fact will receive the credit, it is                                        
                    believed necessary to continue the well and formation                                         
                    determination process for periods after * * * [the                                            
                    Commission] discontinues its role in this process. [Id.                                       
                    at 205; emphasis added.]                                                                      




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