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Notices to Industry, Publications and Statewide Rules

NGPA FEDERAL SECTION 29 TAX CREDITS MAY BE AVAILABLE TO YOU!

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 website at:
http://cips.ferc.fed.us/Q/CIPS/RULES/RM/RM00-6.00D.TXT

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
Phone: 202-208-0444
marilyn.rand@ferc.fed.us