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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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