96 STAT. 2390
Regulations.
PUBLIC LAW 97-448—JAN. 12, 1983
ble to any overriding royalty interest, production payment, net profits interest, or similar interest of the person which— "(A) is created after June 9, 1981, out of an operating mineral interest in property which is proven oil or gas property (within the meaning of section 613A(c)(9)(A)) on the date such interest is created, and "(B) is not created pursuant to a binding contract entered into before June 10, 1981. "(3) PRODUCER.—The term 'producer' has the meaning given to such term by section 4996(a)(1). "(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section." (B) ALLOCATION OF LIMITATION BETWEEN EXEMPT ROYALTY
26 USC 4994.
OIL AND ALLOCABLE TRUST PRODUCTION.—Paragraph (2) of section 4994(f) (relating to royalty limit) is amended— (i) by striking out "A qualified" in subparagraph (A) and inserting in lieu thereof "Except as provided in subparagraph (C), a qualified", and (ii) by adding at the end thereof the following new subparagraph: "(C) ELECTION TO INCREASE SECTION 6430 ROYALTY CREDIT BY REDUCING EXEMPTION UNDER THIS SUBSECTION.—Any
26 USC 6654.
qualified royalty owner who is a qualified beneficiary (within the meaning of section 6430(d)(1)) for any quarter may elect (at such time and in such manner as the Secretary may prescribe by regulations) to reduce by any amount the qualified royalty owner's royalty limit determined under subparagraph (A) for such quarter (after the application of paragraph (3)(B))." (C) TECHNICAL AMENDMENT.—Subparagraph (B) of section 6654(g)(3) (relating to estimated tax computed after application of credits against tax) is amended by inserting "or 6430" after "section 6429". (D) CONFORMING AMENDMENT.—The table of sections for subchapter B of chapter 65 is amended by adding at the end thereof the following new item: "Sec. 6430. Credit or refund of windfall profit taxes to certain trust beneficiaries."
26 USC 6430
note.
(E) EFFECTIVE DATE.—
(i) IN GENERAL.—Except as provided in clause (ii), the amendments made by this paragraph shall apply with respect to calendar years beginning after December 31, 1981. (ii) ESTIMATED TAX.—The amendment made by subparagraph (C) shall take effect on January 1, 1982. (b) AMENDMENT RELATED TO SECTION 603.—Paragraph (2) of section 4994(g) (relating to limitations for certain transferred properties) is amended by striking out "owned by a person other than an independent producer (within the meaning of section 4992(b)(l))." and inserting in lieu thereof "owned by any person (other than the producer) who during the period of ownership after such date was not an independent producer (within the meaning of section 4992(b)(l)). The preceding sentence shall not apply to property so owned by any person if, at the time of transfer of such property by such person, such property was not a proven property (within the meaning of section 613A(c)(9)(A))."
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