Page:United States Statutes at Large Volume 94 Part 1.djvu/284

 94 STAT. 234

PUBLIC LAW 96-223—APR. 2, 1980 "(i) $15,20 a barrel for purposes of determining base prices for tier 2 oil, and "(ii) $16.55 a barrel for purposes of determining base prices for tier 3 oil. "(2) INTERIM RULE.—For months beginning before October 1980 (or such earlier date as may be provided in regulations taking effect before such earlier date), the base prices for tier 2 oil and tier 3 oil, respectively, shall be the product of— "(A)(i) the highest posted price for December 31, 1979, for uncontrolled crude oil of the same grade, quality, and field, or "(ii) if there is no posted price described in clause (i), the highest posted price for such date for uncontrolled crude oil at the nearest domestic field for which prices for oil of the same grade and quality were posted for such date, multiplied by "(B) a fraction the denominator of which is $35, and the numerator of which is— "(i) $15.20 for purposes of determining base prices for tier 2 oil, and "(ii) $16.55 for purposes of determining base prices for tier 3 oil. For purposes of the preceding sentence, no price which was posted after January 14, 1980, shall be taken into account. "(3) MINIMUM INTERIM BASE PRICE.—The base price determined under paragraph (2) for tier 2 oil or tier 3 oil shall not be less than the sum of^ "(A) the ceiling price which would have applied to such oil under the March 1979 energy regulations if it had been produced and sold in May 1979 as upper tier oil, plus "(B)(i) $1 in the case of tier 2 oil, or "(ii) $2 in the case of tier 3 oil.

26 USC 4990.

"SEC. 4990. PHASEOUT OF TAX.

"(a) PHASEOUT.—Notwithstanding any other provision of this chapter, the tax imposed by this chapter with respect to any crude oil removed from the premises during any month during the phaseout period shall not exceed— "(1) the amount of tax which would have been imposed by this chapter with respect to such crude oil but for this subsection, multiplied by "(2) the phaseout percentage for such month. "(b) TERMINATION OF TAX.—Notwithstanding any other provision of this chapter, no tax shall be imposed by this chapter with respect to any crude oil removed from the premises after the phaseout period. "(c) DEFINITIONS.—For purposes of this section— "(1) PHASEOUT PERIOD.—The term 'phaseout period' means the 33-month period beginning with the month following the target month. "(2) PHASEOUT PERCENTAGE.—The phaseout percentage for any month is 100 percent reduced by 3 percentage points for each month after the target month and before the month following the month for which the phaseout percentage is being determined. "(3) TARGET MONTH.—The term 'target month' means the later of— "(A) December 1987, or "(B) the first month for which the Secretary publishes an estimate under subsection (d)(2).

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