Page:United States Statutes at Large Volume 94 Part 1.djvu/293

 PUBLIC LAW 96-223—APR. 2, 1980

94 STAT. 243

respect to any producer shall not exceed the aggregate tax imposed by section 4986 with respect to front-end oil of that producer removed after February 1980 and before October 1981. "(C) TERTIARY INCENTIVE REVENUE.—For purposes of this paragraph, the term 'tertiary incentive revenue' has the meaning given such term by the front-end tertiary provisions of the energy regulations. "(3) DEFINITION OF ALLOWED EXPENSES; PREPAID EXPENSES NOT

TAKEN INTO ACCOUNT.—For purposes of this subsection (including the application of the front-end tertiary provisions for purposes of this subsection)— "(A) ALLOWED EXPENSES.—Except as provided in subpara-

graph (B), allowed expenses shall be determined under the front-end tertiary provisions of the energy regulations. "(B) PREPAID EXPENSES NOT TAKEN INTO ACCOUNT.—The

term 'allowed expenses' shall not include any amount attributable to periods after September 30, 1981. "(C) PERIOD TO WHICH ITEM IS ATTRIBUTABLE.—For purposes of subparagraph (B)— "(i) any injectant and any fuel shall be treated as attributable to periods before October 1, 1981, if the injectant is injected, or the fuel is used, before October 1, 1981, and "(ii) any other item shall be treated as attributable to periods before October 1, 1981, only to the extent that under chapter 1 deductions for such item (including depreciation in respect of such item) are properly allocable to periods before October 1, 1981. For purposes of the preceding sentence, an act shall be treated as taken before a date if it would have been taken before such date but for an act of God, a severe mechanical breakdown, or an injunction. "(4) DEFINITIONS AND SPECIAL RULES.—For purposes of this subsection— "(A) FRONT-END TERTIARY PROVISIONS.—The term 'frontend tertiary provisions' means— "(i) the provisions of section 212.78 of the energy 10 CFR 212.78. regulations which exempt crude oil from ceiling price limitations to provide financing for tertiary projects (as such provisions took effect on October 1, 1979), and "(ii) any modification of such provisions, but only to the extent that such modification is for purposes of coordinating such provisions with the tax imposed by this chapter. "(B) FRONT-END OIL.—The term 'front-end oil' means any domestic crude oil which is not subject to a first sale ceiling price under the energy regulations solely by reason of the front-end tertiary provisions of such regulations. "(C) QUALIFIED PROPERTY.—The term 'qualified property' means any property if, on January 1, 1980, 50 percent or more of the operating mineral interest in such property is held by persons who were independent producers (within the meaning of section 4992(b)) for the last quarter of 1979. "(D) FRONT-END TERTIARY PROJECT.—The term ^ront-end tertiary project' means any project which qualifies under the front-end tertiary provisions of the energy regulations.

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