PUBLIC LAW 96-223—APR. 2, 1980
94 STAT. 239
"(D) CONSTRUCTIVE OWNERSHIP.—For purposes of paragraph (2)(D), an interest owned by or for a corporation, partnership, trust, or estate shall be considered as owned directly by the entity and proportionately by its shareholders, partners, or beneficiaries, as the case may be. "(E)
MEMBERS OF MORE THAN i RELATED GROUP.—If a
person is a member of more than 1 related group during any quarter, the determination of such person's allocation under paragraph (1) shall be made by reference to the related group which results in the smallest allocation for such person. "SEC. 4993. INCREMENTAL TERTIARY OIL.
"(a) IN GENERAL.—For purposes of this chapter, the term 'incremental tertiary oil' means the excess of— "(1) the amount of crude oil which is removed from a property during any month and which is produced on or after the project beginning date and during the period for which a qualified tertiary recovery project is in effect on the property, over "(2) the base level for such property for such month. "(b) DETERMINATION OF AMOUNT.—For purposes of this section— "(1) BASE LEVEL.—The base level for any property for any month is the average monthly amount (determined under rules similar to rules used in determining the base production control level under the June 1979 energy regulations) of crude oil removed from such property during the 6-month period ending March 31, 1979, reduced (but not below zero) by the sum of— "(A) 1 percent of such amount for each month which begins after 1978 and before the first month beginning after the project beginning date, and "(B) 2y2 percent of such amount for each month which begins after the project beginning date (or after 1978 if the project beginning date is before 1979) and before the month for which the base level is being determined. "(2) MINIMUM AMOUNT IN CASE OF PROJECTS CERTIFIED BY DOE.—
In the case of a project described in subsection (c)(1)(A), for the period during which the project is in effect, the amount of the incremental tertiary oil shall not be less than the incremental production determined under the June 1979 energy regulations. "(3) ALLOCATION RULES.—The determination of which barrels of crude oil removed during any month are incremental tertiary oil shall be made— "(A) first by allocating the amount of incremental tertiary oil between— "(i) oil which (but for this subsection) would be tier 1 oil, and "(ii) oil which (but for this subsection) would be tier 2 oil, in proportion to the respective amounts of each such oil removed from the property during such month, and "(B) then by taking into account barrels of crude oil so removed in the order of their respective removal prices, beginning with the highest of such prices. "(c) QUALIFIED TERTIARY RECOVERY PROJECT.—For purposes of this section— "(1) IN GENERAL.—The term 'qualified tertiary recovery project' means—
79-194
O—81—pt. 1
19: QL3
26 USC 4993.
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