[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 593 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 593

To amend the Internal Revenue Code of 1986 to clarify that natural gas 
   gathering lines are 7-year property for purposes of depreciation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2001

  Mr. Nickles introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to clarify that natural gas 
   gathering lines are 7-year property for purposes of depreciation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY.

    (a) In General.--Subparagraph (C) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (relating to classification of certain 
property) is amended by redesignating clause (ii) as clause (iii) and 
by inserting after clause (i) the following new clause:
                            ``(ii) any natural gas gathering line, 
                        and''.
    (b) Natural Gas Gathering Line.--Subsection (i) of section 168 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(15) Natural gas gathering line.--The term `natural gas 
        gathering line' means--
                    ``(A) the pipe, equipment, and appurtenances 
                determined to be a gathering line by the Federal Energy 
                Regulatory Commission, or
                    ``(B) the pipe, equipment, and appurtenances used 
                to deliver natural gas from the wellhead to the point 
                at which such gas first reaches--
                            ``(i) a gas processing plant,
                            ``(ii) an interconnection with a 
                        transmission pipeline certified by the Federal 
                        Energy Regulatory Commission as an interstate 
                        transmission pipeline,
                            ``(iii) an interconnection with an 
                        intrastate transmission pipeline, or
                            ``(iv) a direct interconnection with a 
                        local distribution company, a gas storage 
                        facility, or an industrial consumer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service before, on, or after the date of 
the enactment of this Act.
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