The Federal Energy Regulation Commission (FERC) issued a Final Rule (Order
No. 616) on July 14, 2000, in Docket No. RM00-6-000 reinstating wellhead determination
procedures under the Natural Gas Policy Act (NGPA) of 1978. The rule reinstates
the procedures for Section 107 gas that qualifies for a tax credit under Section
29 of the Internal Revenue Code. A copy of the rule is available on the FERC
The regulations, which became effective on September 25, 2000, reinstate the determination procedures for coal seam gas, Devonian shale gas, and tight formation gas produced through recompletions commenced after 1992 in wells drilled after 1980 and before 1993, or through wells commenced after 1980 and before 1993. In addition, the regulations provide that jurisdictional agencies may designate new tight formation areas.
To receive a determination, the producer must file with the
jurisdictional agency, and the jurisdictional agency must submit the determination
to the Federal Energy Regulatory Commission (FERC). The Railroad Commission,
the jurisdictional agency for Texas, is currently accepting applications and
making recommendations to the FERC for determinations.
For questions regarding the FERC requirements or rule, please contact:
Marilyn Rand ¾ Office of Markets, Tariffs, and Rates, FERC