Page:United States Statutes at Large Volume 89.djvu/109

 PUBLIC LAW 94-12—MAR. 29, 1975

89 STAT, 4 9

" (i) the tentative quantity determined under the table contained in subparagraph (B), reduced (but not below zero) by " (ii) the taxpayer's average daily secondary or tertiary production for the taxable year. "(B)

P H A S E - O U T TABLE.—For purposes of

(A)"In the case of production during the calendar year: 1975 1976 1977 1978 1979 1980 and thereafter

subparagraph

The tentative quantity in barrels is: 2, 000 1, 800 1, 600 1, 400 1, 200 1, 000

" (4) D A I L Y DEPLETABLE NATURAL GAS Q U A N T I T Y. — For purposes

of paragraph (1), the depletable natural gas quantity of any taxpayer for any taxable year shall be equal to 6,000 cubic feet multiplied by the number of barrels of the taxpayer's depletable oil quantity to which the taxpayer elects to have this paragraph apply. The taxpayer's depletable oil quantity for any taxable year shall be reduced by the number of barrels with respect to which an election under this paragraph applies. Such election shall be made at such time and in such manner as the Secretary or his delegate shall by regulations prescribe. " (5) APPLICABLE PERCENTAGE.—For

(1)"In the case of production during the calendar year: 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 and thereafter

purposes

of

paragraph

The applicable percentage is: 22 22 22 22 22 22 20 18 16 15

" (6) O I L AND NATURAL GAS RESULTING FROM SECONDARY OR TERTIARY PROCESSES.—

" (A) IN GENERAL.—Except as provided in subsection (d), the allowance for depletion under section 611 shall be com- 26 USC 611. puted in accordance with section 613 with respect to— ^6 USC 613. " (i) so much of the taxpayer's average daily secondary or tertiary production of domestic crude oil as does not exceed the taxpayer's depletable oil quantity (determined with regard to paragraph (3)(A) ( i i)); and " ( i i) so much of the taxpayer's average daily secondary or tertiary production of domestic natural gas as does not exceed the taxpayer's depletable natural gas quantity (determined without regard to paragraph (3)(A) ( i i)); and 22 percent shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section. " (B) AVERAGE DAILY SECONDARY OR TERTIARY PRODUCTION.—

For purposes of this subsection— " (i) the taxpayer's average daily secondary or tertiary production of domestic crude oil or natural gas for any taxable year shall be determined by dividing his aggregate production of domestic crude oil or natural gas, as

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