- 12 - 3. Respondent’s Argument Respondent contends that S/V is entitled to a credit under section 29 equal to the larger of (a) $3 times 32,410 or (b) $3 (indexed) times 16,927. Respondent points out that section 101(b)(5) of the NGPA of 1978 provided that if any natural gas qualified under more than one provision of the NGPA, the provision which allowed the highest price applied. S/V would be entitled to a larger credit if the credit were based on 16,927 times $3 (indexed) than if it were based on 32,410 times $3 (unindexed). Thus, respondent contends that allowing a credit based only on S/V’s gas production from Devonian shale is consistent with the NGPA. Respondent offers no explanation for the fact that under that theory S/V would, in effect, be entitled to a credit for only 16,927 BOE’s of gas. We disagree with respondent and conclude that S/V is entitled to a credit for all of the qualified fuel that petitioner produced and sold; i.e., 32,410 BOE’s of gas. 4. Whether the $3 Credit for the 16,927 BOE’s of Natural Gas S/V Produced From a Tight Formation and Devonian Shale Is Indexed Under Section 29(b)(2) Section 29(b)(2) indexes the $3 credit for gas produced from Devonian shale, but it does not index the credit for gas produced from a tight formation. Since S/V produced 16,927 BOE’s of gas from both a tight formation and Devonian shale, question mayPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011