S/V Drilling Partners, Snyder Armclar Gas Company, Tax Matters Partners - Page 15

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               FOLEY, J., dissenting:  The majority misconstrues the                  
          unambiguous language of section 29.  See generally United States            
          v. Merriam, 263 U.S. 179, 187 (1923) (stating that tax statutes             
          are not to be extended by implication beyond the clear import of            
          the language used).  Accordingly, I respectfully dissent.                   
          1.   Number of Barrel-of-Oil Equivalents                                    
               Section 29(a) allows taxpayers a credit equal to $3                    
          multiplied by “the barrel-of-oil equivalent [BOE] of qualified              
          fuels” sold.  Citing the legislative history, the majority, in              
          essence, contends that a section 29 credit is based on the energy           
          content of the gas produced and sold.  Although the legislative             
          history states that the “credit is $3 for the production of each            
          unit of 5.8 million Btus of energy," H. Conf. Rept. 96-817, at              
          140 (1980), 1980-3 C.B. 245, 300 (emphasis added), Congress                 
          enacted a different computation (i.e., the credit is $3                     
          multiplied by the BOE of qualified fuels), and the legislative              
          history does not take precedence over the statute.                          
               The issue is: What was the BOE of the qualified fuels sold?            
          During 1993 and 1994, S/V sold approximately 179,000 mcf (i.e.,             
          thousand cubic feet) of gas.  The energy produced by this amount            
          of gas is equal to that produced by 32,410 barrels of oil (i.e.,            
          32,410 BOE).  Section 29, however, does not simply provide a                
          credit of $3 per BOE of energy.  The credit is calculated by                
          multiplying $3 by “the barrel-of-oil equivalent of qualified                
          fuels” sold.  Sec. 29(a) (emphasis added).  Pursuant to section             

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