To amend the Internal Revenue Code of 1986 to extend and modify the credit for producing fuel from a nonconventional source.

October 15, 2001

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

To amend the Internal Revenue Code of 1986 to extend and modify the credit for producing fuel from a nonconventional source.

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 `Nonconventional Natural Gas Reliability Act'.

SEC. 2. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A NONCONVENTIONAL SOURCE.

(a) IN GENERAL- Section 29 of the Internal Revenue Code of 1986 (relating to credit for producing fuel from a nonconventional source) is amended by adding at the end the following new subsection:

`(h) EXTENSION FOR OTHER FACILITIES-

`(1) EXTENSION FOR OIL AND CERTAIN GAS- In the case of a well for producing qualified fuels described in subparagraph (A) or (B)(i) of subsection (c)(1)--

`(A) APPLICATION OF CREDIT FOR NEW WELLS- Notwithstanding subsection (f), this section shall apply with respect to such fuels--

`(i) which are produced from a well drilled after the date of the enactment of this subsection and before January 1, 2007, and

`(ii) which are sold not later than the close of the 4-year period beginning on the date that such well is drilled, or, if earlier, December 31, 2009.

`(B) EXTENSION OF CREDIT FOR OLD WELLS- Subsection (f)(2) shall be applied by substituting `2007' for `2003' with respect to wells described in subsection (f)(1)(A) with respect to such fuels.

`(2) EXTENSION PERIOD TO COMMENCE WITH UNADJUSTED CREDIT AMOUNT- In determining the amount of credit allowable under this section solely by reason of this subsection--

`(A) in the case of fuels sold during 2001 and 2002, the dollar amount applicable under subsection (a)(1) shall be $3 (without regard to subsection (b)(2)), and

`(B) in the case of fuels sold after 2002, subparagraph (B) of subsection (d)(2) shall be applied by substituting `2002' for `1979'.'.

(b) EFFECTIVE DATE- The amendment made by this section shall apply to fuel sold after the date of the enactment of this Act.

END