[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 926 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 926

 To amend the Internal Revenue Code of 1986 to provide that the credit 
  for producing fuel from a nonconventional source shall apply to gas 
     produced onshore from a formation more than 15,000 feet deep.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2005

   Mr. Inhofe (for himself, Mr. Vitter, and Mr. Enzi) 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 provide that the credit 
  for producing fuel from a nonconventional source shall apply to gas 
     produced onshore from a formation more than 15,000 feet deep.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Gas Production Act of 
2005''.

SEC. 2. CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCE TO APPLY 
              TO GAS PRODUCED ONSHORE FROM FORMATIONS MORE THAN 15,000 
              FEET DEEP.

    (a) In General.--Subparagraph (B) of section 29(c)(1) of the 
Internal Revenue Code of 1986 (defining qualified fuels) is amended by 
striking ``or'' at the end of clause (i), by striking ``and'' at the 
end of clause (ii) and inserting ``or'', and by inserting after clause 
(ii) the following new clause:
                            ``(iii) an onshore well from a formation 
                        more than 15,000 feet deep, and''.
    (b) Eligible Wells.--Section 29 of such Code is amended by adding 
at the end the following new subsection:
    ``(h) Eligible Deep Gas Wells.--In the case of a well producing 
qualified fuel described in subsection (B)(iii)--
            ``(1) for purposes of subsection (f)(1)(A), such well shall 
        be treated as drilled before January 1, 1993, if such well is 
        drilled after the date of the enactment of this subsection, and
            ``(2) subsection (f)(2) shall not apply.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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