Page:United States Statutes at Large Volume 92 Part 3.djvu/735

 PUBLIC LAW 95-621—NOV. 9, 1978

92 STAT. 3367

(d) PROVISIONS FOR H I G H - C O S T NATURAL G A S TO B E E L E C T IV E. — I f

any credit, exemption, deduction, or comparable adjustment applicable to the computation of any Federal tax is specifically allowable with respect to any high-cost n a t u r a l gas (or category thereof) under any provision of law enacted after the date of the enactment of this Act, the provisions of subsections (a) and (b) of this section and the provisions of subtitle B shall not apply to such n a t u r a l gas produced from any well unless an election to have such provisions apply (in lieu of such credit, exemption, deduction, or adjustment) with respect to such n a t u r a l gas produced from such well is filed with the Commission on or before the later of— (A) the 30th day after the date of the enactment of the Act under which such credit, exemption, deduction, or adjustment is provided; or (B) the date the surface drilling of such well began. ,f ,;,; SEC. 108. CEILING PRICE FOR STRIPPER WELL NATURAL GAS. (a) GENERAL RULE. — I n the case of any first sale of stripper well 15 USC 3318. natural gas the maximum lawful price under this section for such natural gas delivered during any month shall be— (1) $2.09 p e r million Btu's, in the case of May 1978; and (2) in the case of any month thereafter, the maximum lawful price, p e r million Btu's, prescribed under this subsection for the preceding month multiplied by the monthly equivalent of a factor equal to the sum of— ^? (A) the annual inflation adjustment factor applicable for such month; plus (B)(i).035, in the case of any month beginning before April 20, 1981; or (ii).04, in the case of any month beginning after April 20, 1981. (b) DEFINITION OF STRIPPER W E L L NATURAL G A S. — (1) GENERAL RULE.—Except as provided in paragraph (2), the

term "stripper well n a t u r a l g a s " means natural gas determined in accordajice vsdth section 503 to be nonassociated n a t u r a l gas Post, p. 3397. produced during any month from a well if— (A) during the preceding 90-day production period, such well produced nonassociated n a t u r a l gas a t a rate which did not exceed an average of 60 Mcf p e r production d a y during sudh period; and (B) during such period such well produced at its maximum efficient rate of flow, determined in accordance with recognized conservation practices designed to maximize the ultimate recovery of n a t u r a l gas. (2) PRODUCTION I N EXCESS OF 60 M C F. — The Commission shall,

by rule, provide that, if nonassociated n a t u r a l gas produced from a well which previously qualified as a stripper well under paragraph (1) exceeds a n average of 60 Mcf per production day during any 90-day production period, such natural gas may continue to qualify as stripper well n a t u r a l gas if the increase i n nonassociated n a t u r a l gas produced from such well was the result of the application of recognized enhanced recovery techniques. (3) DEFINITIONS. — For purposes of this subsection— (A)

PRODUCTION

DAY.—The

term

"production

day"

means— (i) any d a y during which n a t u r a l gas is produced; and

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