Tight gas sand tax credit yields opportunities

Journal Article · Mon Jun 24 04:00:00 EDT 1991 · Oil and Gas Journal; (United States)

OSTI ID:6091136

Lewis, F W ^[1]; Osburn, A S

---

1. Petroleum Management Systems, Del City, OK (US)

The U.S. Internal Revenue Service on Apr. 1, 1991, released the inflation adjustments used in the calculations of Non-Conventional Fuel Tax Credits for 1990. The inflation adjustment, 1.6730, when applied to the base price of $3/bbl of oil equivalent, adjusts the tax credit to $5.019/bbl for oil and 86.53{cents}/MMBTU for gas. The conversion factor for equivalent fuels is 5.8 MMBTU/bbl. Unfortunately, the tax credit for tight formation gas continues to be unadjusted for inflation and remains 52{cents}/MMBTU. As many producers are aware, the Omnibus Budget Reconciliation Act of 1990 expanded the dates of eligibility and the usage for-Non-Conventional Fuel Tax Credits. Among other provisions, eligible wells may be placed in service until Jan. 1, 1992, and once in place may utilize the credit for production through Dec. 31, 2002. Both dates are 2 year extensions from previous regulations.

• OSTI ID: 6091136
• Journal Information: Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 89:25; ISSN OIGJA; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
ECONOMIC DEVELOPMENT
ECONOMICS
GEOLOGIC DEPOSITS
INDUSTRY
MINERAL RESOURCES
NATURAL GAS DEPOSITS
NATURAL GAS INDUSTRY
PRODUCTION
RESOURCES
ROCKS
SANDSTONES
SEDIMENTARY ROCKS
TAX CREDITS