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those sources qualifies under section 29(c)(1), S/V is entitled
to claim a credit based on that 16,927 BOE’s of natural gas.
A taxpayer may claim a section 29 credit only for
nonconventional fuel sold to an unrelated person during the
taxable year. See sec. 29(a)(2)(A). This requirement suggests
double credits are not allowed because a producer would not sell
the same fuel twice. Similarly, section 29(d)(5) defines BOE as
an amount of fuel that contains 5.8 million Btu’s. This
definition implies that double credits are not allowed for a BOE
of fuel because the effect would be to give a credit for each 2.9
million Btu’s. Petitioner contends that the holding of True Oil
Co. v. Commissioner, 170 F.3d 1294 (10th Cir. 1999), affg.
Nielson-True Partnership v. Commissioner, 109 T.C. 112 (1997), is
contrary to our conclusion. We disagree. True Oil Co. did not
involve whether the taxpayer was entitled to a double credit.
Section 29(c)(2)(A) provides that FERC, under NGPA,
determines gas production classifications. We held in True Oil
Co. v. Commissioner, supra, that FERC (not the taxpayer) must
determine gas production classifications. Petitioner contends
that our result is inconsistent with the NGPA and True Oil Co. v.
Commissioner, supra. We disagree. We do not dispute that FERC
determines gas production classification.
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