Page:United States Statutes at Large Volume 94 Part 1.djvu/298

 94 STAT. 248 26 USC 638.

PUBLIC LAW 96-223—APR. 2, 1980 "(4) UNITED STATES.—The term 'United States' has the meaning given to such term by paragraph (1) of section 638 (relating to Continental Shelf areas). "(5) POSSESSION OP THE UNITED STATES.—The term 'possession of the United States' has the meaning given to such term by paragraph (2) of section 638. "(6) INDIAN TRIBE.—The term 'Indian tribe' has the meaning given to such term by section 106(b)(2)(C)(ii) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3316(b)(2)(C)(ii)). "(7) TAXABLE PERIOD.—The term 'taxable period' means— "(A) March 1980, and "(B) each calendar quarter beginning after March 1980. "(8) ENERGY REGULATIONS.—

"(A) IN GENERAL.—The term 'energy regulations' means regulations prescribed under section 4(a) of the Emergency Petroleum Allocation Act of 1973 (15 U.S.C. 753(a)). "(B) MARCH 1979 ENERGY REGULATIONS.—The March 1979 energy regulations shall be the terms of the energy regulations as such terms existed on March 1, 1979. "(C) JUNE 1979 ENERGY REGULATIONS.—The June 1979 energy regulations— "(i) shall be the terms of the energy regulations as such terms existed on June 1, 1979, and "(ii) shall be treated as including final action taken pursuant thereto before June 1, 1979, and as including action taken before, on, or after such date with respect to incremental production from qualified tertiary enhanced recovery projects. "(D) CONTINUED APPLICATION OP REGULATIONS AFTER DE-

CONTROL.—Energy regulations shall be treated as continuing in effect without regaJd to decontrol of oil prices or any other termination of the application of such regulations. "(c) SEVERANCE TAX ADJUSTMENT.—For purposes of this chapter— "(1) IN GENERAL.—The severance tax adjustment with respect to any barrel of crude oil shall be the amount by which— "(A) any severance tax imposed with respect to such barrel, exceeds "(B) the severance tax which would have been imposed if the barrel had been valued at its adjusted base price. "(2) SEVERANCE TAX DEFINED.—For purposes of this subsection, the term 'severance tax' means a tax— "(A) imposed by a State with respect to the extraction of oil, and "(B) determined on the basis of the gross value of the extracted oil. "(3) LIMITATIONS.—

"(A) 15 PERCENT LIMITATION.—A severance tax shall not be taken into account to the extent that the rate thereof exceeds 15 percent. "(B)

INCREASES AFTER MARCH 3I,

1979,

MUST APPLY

EQUALLY.—The amount of the severance tax taken into account under paragraph (1) shall not exceed the amount which would have been imposed under a State severance tax in effect on March 31, 1979, unless such excess is attributable to an increase in the rate of the severance tax (or to the imposition of a severance tax) which applies equally to all portions of the gross value of each barrel of oil subject to such tax.

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