Page:United States Statutes at Large Volume 94 Part 1.djvu/286

 94 STAT. 236

PUBLIC LAW 96-223—APR. 2, 1980 "(B) any oil from an economic interest in a National Petroleum Reserve held by the United States. "(2) EXCLUSION OF CERTAIN OIL.—The term 'tier 2 oil* does not include tier 3 oil. "(e) TIER 3 OIL.—For purposes of this chapter— "(1) IN GENERAL.—The term 'tier 3 oil' means— "(A) newly discovered oil, "(B) heavy oil, and "(C) incremental tertiary oil. "(2) NEWLY DISCOVERED OIL.—The term 'newly discovered oil' has the meaning given to such term by the June 1979 energy regulations. "(3) HEAVY OIL.—The term 'heavy oil' means all crude oil which is produced from a property if crude oil produced and sold from such property during— "(A) the last month before July 1979 in which crude oil was produced and sold from such property, or "(B) the taxable period, had a weighted average gravity of 16 degrees API or less (corrected to 60 degrees Fahrenheit). "(4) INCREMENTAL TERTIARY OIL.— "For definition of incremental tertiary oil, see section 4993.

26 USC 4992.

26 USC 613A.

"SEC. 4992. INDEPENDENT PRODUCER OIL.

"(a) GENERAL RULE.—For purposes of this chapter, the term 'independent producer oil' means that portion of an independent producer's qualified production for the quarter which does not exceed such person's independent producer amount for such quarter. "(b) INDEPENDENT PRODUCER DEFINED.—For purposes of this section— "(1) IN GENERAL.—The term 'independent producer' means, with respect to any quarter, any person other than a person to whom subsection (c) of section 613A does not apply by reason of paragraph (2) (relating to certain retailers) or paragraph (4) (relating to certain refiners) of section 613A(d). "(2) RULES FOR APPLYING PARAGRAPHS (2) AND (4) OF SECTION

6i3A(d).—For purposes of paragraph (1), paragraphs (2) and (4) of section 613A(d) shall be applied— "(A) by substituting 'quarter* for 'taxable year' each place it appears in such paragraphs, and "(B) by substituting '$1,250,000' for '$5,000,000' in paragraph (2) of section 613A(d). "(c) INDEPENDENT PRODUCER AMOUNT.—For purposes of this section— "(1) IN GENERAL.—A person's independent producer amount for any quarter is the product of— "(A) 1,000 barrels, multiplied by "(B) the number of days in such quarter (31 in the case of the first quarter of 1980). "(2) PRODUCTION EXCEEDS AMOUNT.—If a person's qualified

production for any quarter exceeds such person's independent producer amount for such quarter, the independent producer amount shall be allocated— "(A) between tiers 1 and 2 in proportion to such person's production for such quarter of domestic crude oil in each such tier, and

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