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In 1993 and 1994, S/V sold 32,410 BOE’s of natural gas
produced from the wells to public utilities. During these years,
15,483 BOE’s of natural gas sold by S/V were produced from a
tight formation that was not Devonian shale, and 16,927 BOE’s
were produced from a tight formation that was also Devonian
shale.
BOE’s of Natural Gas Produced by S/V From Nonconventional Sources
(rounded to the nearest BOE)
Produced from a Produced from a
tight formation but tight formation
Year Total not Devonian shale and Devonian shale
1993 15,137 7,343 7,794
1994 17,273 8,140 9,133
Total 32,410 15,483 16,927
B. S/V’s Tax Returns
On its 1993 and 1994 partnership returns, S/V claimed a
credit under section 29 for 15,483 BOE’s of natural gas it
produced from a tight formation that was not Devonian shale and a
double credit (one equal to $3 per BOE, and one equal to $3
(indexed) per BOE) for the 16,927 BOE’s produced from a tight
formation that was also Devonian shale. On its 1994 tax return,
S/V based its computation of the Devonian shale credit on the
1995 inflation adjustment factor.
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Last modified: May 25, 2011