,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #fja  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,febru>y #h1 #bjac    
,mr4 ,m>key 7= himself & ,mr4 ,blum5au]7
 introduc$ ! foll[+ bill2 :i* 0 ref]r$  
to ! ,committee on ,natural ,res\rces1 &
 9 addition to ! ,committee on ,ways &  
,means1 = a p]iod to be subsequ5tly     
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to direct ! ,secret>y ( !     
,int]ior to e/abli% an annual production
 inc5tive fee ) respect to ,f$]al on%ore
 & (f%ore l&s t are subject to a lease =
 production ( oil or natural gas "u :i* 
production is n occurr+1 & = o!r        
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,p]man5t ,repeal ( ,oil    
,subsidies ,act4  #b4 ,table ( cont5ts  
,! table ( cont5ts = ?is ,act is z      
foll[s3  ,sec4 #a4 ,%ort title4 ,sec4   
#b4 ,table ( cont5ts4 ,title ,i--,,use  
,,x ,act ,sec4 #aja4 ,%ort title4 ,sec4 
#ajb4 ,production inc5tive fee4 ,title  

,,ii--,deficit ,r$uction ,?r\gh ,fair   
,oil ,royalties ,sec4 #bja4 ,%ort title4
 ,sec4 #bjb4 ,eligibility = new leases &
 ! transf] ( leases4 ,sec4 #bjc4 ,price 
?re%olds = royalty susp5sion provisions4
 ,sec4 #bjd4 ,repeal ( royalty relief   
provisions4 ,title ,,iii--,,ocs         
,facility ,inspections ,sec4 #cja4 ,%ort
 title4 ,sec4 #cjb4 ,,ocs facility      
inspection fees4 ,title ,,iv--,repeal ( 
,fossil ,fuel ,subsidies ,= ,l>ge ,oil  
,companies ,sec4 #dja4 ,%ort title4     
,sec4 #djb4 ,amortization ( geological &
 geophysical exp5ditures4 ,sec4 #djc4   
,produc+ oil & gas f m>g9al wells4 ,sec4
 #djd4 ,enhanc$ oil recov]y cr$it4 ,sec4
 #dje4 ,intangible drill+ & developm5t  
co/s 9 ! case ( oil & gas wells4 ,sec4  
#djf4 ,p]c5tage depletion4 ,sec4 #djg4  
,t]ti>y injectants4 ,sec4 #djh4 ,passive
 activity losses & cr$its limit$4 ,sec4 
#dji4 ,income attributable to dome/ic   
production activities4 ,sec4 #daj4      
,prohibition on us+ la/-91 fir/-out     
acc\nt+ = major integrat$ oil companies4

 ,sec4 #daa4 ,modifications ( =eign tax 
cr$it rules applicable to dual capacity 
taxpay]s4  ,i ,,use ,,x ,act  #aja4     
,%ort title ,?is title may be cit$ z !  
,unit$ ,/ates ,exploration on ,idle     
,tracts ,act or ! ,,use ,,x ,act4  #ajb4
 ,production inc5tive fee  7a7          
,e/abli%m5t ,! ,secret>y ( ! ,int]ior   
%all1 )9 #ahj days aft] ! date (        
enactm5t ( ?is ,act1 issue regulations  
to e/abli% an annual production inc5tive
 fee ) respect to ,f$]al on%ore & (f%ore
 l&s t are subject to a lease =         
production ( oil or natural gas "u :i*  
production is n occurr+4 ,su* fee %all  
apply ) respect to l&s t are subject to 
su* a lease t is 9 effect on ! date f9al
 regulations are promulgat$ "u ?is      
subsection or t is issu$ !reaft]4  7b7  
,am\nt ,! am\nt ( ! fee %all be1 = ea*  
acre ( l& f :i* oil or natural gas is   
produc$ = less ?an #ij days 9 a cal5d>  
ye>--  7#a7 9 ! case ( on%ore l&--  7,a7
 = ea* ( ! fir/ #c ye>s ( ! lease1 #d p]
 acre 9 #bjaa doll>s2  7,b7 = ! f\r? ye>

 ( ! lease1 #f p] acre 9 #bjaa doll>s2 &
  7,c7 = ! fif? ye> ( ! lease & ea* ye> 
!reaft] = :i* ! lease is o!rwise 9      
effect1 #h p] acre 9 #bjaa doll>s2 &    
7#b7 9 ! case ( (f%ore l&--  7,a7 = ea* 
( ! ?ird1 f\r?1 & fif? ye>s ( ! lease1  
#d p] acre 9 #bjaa doll>s2  7,b7 = !    
six? ye> ( ! lease1 #f p] acre 9 #bjaa  
doll>s2 &  7,c7 = ! sev5? ye> ( ! lease 
& ea* ye> !reaft] = :i* ! lease is      
o!rwise 9 effect1 #h p] acre 9 #bjaa    
doll>s4  7c7 ,assessm5t & collection ,! 
,secret>y %all assess & collect ! fee   
e/abli%$ "u ?is section4  7d7 ,deposit  
,am\nts receiv$ by ! ,unit$ ,/ates z !  
fee "u ?is section %all be deposit$ 9 ! 
g5]al fund ( ! ,treasury4  7e7          
,regulations ,! ,secret>y ( ! ,int]ior  
may issue regulations to prev5t evasion 
( ! fee "u ?is section4  ,,ii ,deficit  
,r$uction ,?r\gh ,fair ,oil ,royalties  
#bja4 ,%ort title ,?is title may be cit$
 z ! ,deficit ,r$uction ,?r\gh ,fair    
,oil ,royalties ,act4  #bjb4            
,eligibility = new leases & ! transf] ( 

leases  7a7 ,issuance ( ,new ,leases    
7#a7 ,9 g5]al ,! ,secret>y %all n issue 
any new lease t au?orizes ! production (
 oil or natural gas "u ! ,out]          
,cont95tal ,%elf ,l&s ,act 7#dc         
,u4,s4,c4 #acca et seq47 to a p]son     
describ$ 9 p>agraph 7#b7 unless ! p]son 
has r5egotiat$ ea* cov]$ lease ) respect
 to :i* ! p]son is a lessee1 to modify !
 paym5t responsibilities ( ! p]son to   
require ! paym5t ( royalties if ! price 
( oil & natural gas is great] ?an or    
equal to ! price ?re%olds describ$ 9    
clauses 7v7 ?r\gh 7vii7 ( section       
#h7;a77#c77;,c7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,c774  7#b7 ,p]sons      
describ$ ,a p]son ref]r$ to 9 p>agraph  
7#a7 is a p]son t--  7,a7 is a lessee   
t--  7i7 holds a cov]$ lease on ! date  
on :i* ! ,secret>y consid]s ! issuance (
 ! new lease2 or  7ii7 0 issu$ a cov]$  
lease be=e ! date ( enactm5t ( ?is ,act1
 b transf]r$ ! cov]$ lease to ano!r     
p]son or entity 7includ+ a subsidi>y or 

affiliate ( ! lessee7 aft] ! date (     
enactm5t ( ?is ,act2 or  7,b7 any o!r   
p]son t has any direct or indirect      
int]e/ 91 or t d]ives any b5efit f1 a   
cov]$ lease4  7#c7 ,multiple lessees    
7,a7 ,9 g5]al ,= purposes ( p>agraph    
7#a71 if !re are multiple lessees t own 
a %>e ( a cov]$ lease1 ! ,secret>y may  
implem5t sep>ate agreem5ts ) any lessee 
) a %>e ( ! cov]$ lease t modifies !    
paym5t responsibilities ) respect to !  
%>e ( ! lessee to include price ?re%olds
 t are equal to or less ?an ! price     
?re%olds describ$ 9 clauses 7v7 ?r\gh   
7vii7 ( section #h7;a77#c77;,c7 ( !     
,out] ,cont95tal ,%elf ,l&s ,act 7#dc   
,u4,s4,c4 #accg7;a77#c77;,c774  7,b7    
,treatm5t ( %>e z cov]$ lease ,beg9n+ on
 ! effective date ( an agreem5t "u      
subp>agraph 7,a71 any %>e subject to !  
agreem5t %all n con/itute a cov]$ lease 
) respect to any lessees t ent]$ into ! 
agreem5t4  7b7 ,transf]s ,a lessee or   
any o!r p]son :o has any direct or      
indirect int]e/ 91 or :o d]ives a b5efit

 f1 a lease %all n be eligible to obta9 
by sale or o!r transf] 7includ+ ?r\gh a 
swap1 sp9(f1 s]vic+1 or o!r agreem5t7   
any cov]$ lease1 ! economic b5efit ( any
 cov]$ lease1 or any o!r lease = !      
production ( oil or natural gas 9 !     
,gulf ( ,mexico "u ! ,out] ,cont95tal   
,%elf ,l&s ,act 7#dc ,u4,s4,c4 #acca et 
seq471 unless ! lessee or o!r p]son     
has--  7#a7 r5egotiat$ ea* cov]$ lease )
 respect to :i* ! lessee or p]son is a  
lessee1 to modify ! paym5t              
responsibilities ( ! lessee or p]son to 
include price ?re%olds t are equal to or
 less ?an ! price ?re%olds describ$ 9   
clauses 7v7 ?r\gh 7vii7 ( section       
#h7;a77#c77;,c7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,c772 or  7#b7 ent]$ into
 an agreem5t ) ! ,secret>y to modify !  
t]ms ( all cov]$ leases ( ! lessee or   
o!r p]son to include limitations on     
royalty relief bas$ on m>ket prices t   
are equal to or less ?an ! price        
?re%olds describ$ 9 clauses 7v7 ?r\gh   

7vii7 ( section #h7;a77#c77;,c7 ( !     
,out] ,cont95tal ,%elf ,l&s ,act 7#dc   
,u4,s4,c4 #accg7;a77#c77;,c774  7c7 ,use
 ( am\nts = deficit r$uction ,not)/&+   
any o!r provision ( law1 any am\nts     
receiv$ by ! ,unit$ ,/ates z r5tals or  
royalties "u cov]$ leases %all be       
deposit$ 9 ! ,treasury & us$ = ,f$]al   
budget deficit r$uction or1 if !re is no
 ,f$]al budget deficit1 = r$uc+ ! ,f$]al
 debt 9 su* mann] z ! ,secret>y ( !     
,treasury consid]s appropriate4  7d7    
,def9itions ,9 ?is section--  7#a7      
,cov]$ lease ,! t]m cov]$ lease means a 
lease = oil or gas production 9 ! ,gulf 
( ,mexico t is--  7,a7 9 exi/5ce on !   
date ( enactm5t ( ?is ,act2  7,b7 issu$ 
by ! ,dep>tm5t ( ! ,int]ior "u section  
#cjd ( ! ,out] ,cont95tal ,%elf ,deep   
,wat] ,royalty ,relief ,act 7#dc        
,u4,s4,c4 #accg note2 ,public ,law      
#ajd-eh72 &  7,c7 n subject to          
limitations on royalty relief bas$ on   
m>ket price t are equal to or less ?an !
 price ?re%olds describ$ 9 clauses 7v7  

?r\gh 7vii7 ( section #h7;a77#c77;,c7 ( 
! ,out] ,cont95tal ,%elf ,l&s ,act 7#dc 
,u4,s4,c4 #accg7;a77#c77;,c774  7#b7    
,lessee ,! t]m lessee includes any p]son
 or o!r entity t controls1 is controll$ 
by1 or is 9 or "u common control )1 a   
lessee4  7#c7 ,secret>y ,! t]m ,secret>y
 means ! ,secret>y ( ! ,int]ior4  #bjc4 
,price ?re%olds = royalty susp5sion     
provisions ,! ,secret>y ( ! ,int]ior    
%all agree to a reque/ by any lessee to 
am5d any lease issu$ = any ,c5tral &    
,we/]n ,gulf ( ,mexico tract 9 ! p]iod (
 ,janu>y #a1 #aiif1 ?r\gh ,novemb] #bh1 
#bjjj1 to incorporate price ?re%olds    
applicable to royalty susp5sion         
provisions1 t are equal to or less ?an !
 price ?re%olds describ$ 9 clauses 7v7  
?r\gh 7vii7 ( section #h7;a77#c77;,c7 ( 
! ,out] ,cont95tal ,%elf ,l&s ,act 7#dc 
,u4,s4,c4 #accg7;a77#c77;,c774 ,any     
am5d$ lease %all impose ! new or revis$ 
price ?re%olds effective ,octob] #a1    
#bjac4 ,exi/+ lease provisions %all     
prevail ?r\gh ,septemb] #cj1 #bjac4     

#bjd4 ,repeal ( royalty relief          
provisions  7a7 ,repeal ( provisions (  
,en]gy ,policy ,act ( #bjje ,! foll[+   
provisions ( ! ,en]gy ,policy ,act (    
#bjje 7,public ,law #aji-eh7 are        
repeal$3  7#a7 ,section #cdd 7#db       
,u4,s4,c4 #aeijd2 relat+ to inc5tives = 
natural gas production f deep wells 9   
%all[ wat]s ( ! ,gulf ( ,mexico74  7#b7 
,section #cde 7#db ,u4,s4,c4 #aeije2    
relat+ to royalty relief = deep wat]    
production 9 ! ,gulf ( ,mexico74  7b7   
,repeal ( provisions relat+ to ,plann+  
,areas (f%ore ,alaska ,section          
#h7;a77#c77;,b7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,b77 is am5d$ by /rik+ & 
9 ! ,plann+ ,areas (f%ore ,alaska4      
,,iii ,,ocs ,facility ,inspections      
#cja4 ,%ort title ,?is title may be cit$
 z ! ,no ,free ,inspections = ,oil      
,companies ,act4  #cjb4 ,,ocs facility  
inspection fees ,section #bb ( ! ,out]  
,cont95tal ,%elf ,l&s ,act 7#dc         
,u4,s4,c4 #acdh7 is am5d$ by add+ at !  

end ( ! section ! foll[+3  7g7          
,inspection ,fees  7#a7 ,e/abli%m5t ,!  
,secret>y ( ! ,int]ior %all e/abli%1 by 
rule1 & collect f ! op]ators (          
facilities subject to inspection "u     
subsection 7c7 nonrefundable fees = su* 
inspections--  7,a7 at an aggregate     
level equal to ! am\nt necess>y to (fset
 ! annual exp5ses ( inspections ( out]  
,cont95tal ,%elf facilities 7includ+    
mobile (f%ore drill+ units7 by !        
,dep>tm5t ( ! ,int]ior2 &  7,b7 us+ a   
s*$ule t reflects ! diff]5ces 9         
complexity among ! classes ( facilities 
to be inspect$4  7#b7 ,ocean en]gy      
en=cem5t fund ,!re is e/abli%$ 9 !      
,treasury a fund1 to be kn[n z ! ,ocean 
,en]gy ,en=cem5t ,fund 7ref]r$ to 9 ?is 
subsection z ! ,fund71 into :i* %all be 
deposit$ am\nts collect$ z fees "u      
p>agraph 7#a7 & :i* %all be available z 
provid$ "u p>agraph 7#c74  7#c7         
,availability ( fees ,not)/&+ section   
#ccjb ( title #ca1 ,unit$ ,/ates ,code1 
all am\nts collect$ by ! ,secret>y "u   

?is section--  7,a7 %all be cr$it$ z    
(fsett+ collections2  7,b7 %all be      
available = exp5diture only = purposes (
 c>ry+ out inspections ( out] ,cont95tal
 ,%elf facilities 7includ+ mobile (f%ore
 drill+ units7 & ! adm9i/ration ( !     
inspection program "u ?is section2  7,c7
 %all be available only to ! ext5t      
provid$ = 9 advance 9 an appropriations 
,act2 &  7,d7 %all rema9 available until
 exp5d$4  7#d7 ,annual reports  7,a7 ,9 
g5]al ,n lat] ?an #fj days aft] ! end ( 
ea* fiscal ye> beg9n+ ) fiscal ye>      
#bjac1 ! ,secret>y %all submit to !     
,committee on ,en]gy & ,natural         
,res\rces ( ! ,s5ate & ! ,committee on  
,natural ,res\rces ( ! ,h\se (          
,repres5tatives a report on ! op]ation (
 ! ,fund dur+ ! fiscal ye>4  7,b7       
,cont5ts ,ea* report %all include1 = !  
fiscal ye> cov]$ by ! report1 ! foll[+3 
7i7 ,a /atem5t ( ! am\nts deposit$ into 
! ,fund4  7ii7 ,a description ( !       
exp5ditures made f ! ,fund = ! fiscal   
ye>1 includ+ ! purpose ( ! exp5ditures4 

7iii7 ,recomm5dations = additional      
au?orities to fulfill ! purpose ( !     
,fund4  7iv7 ,a /atem5t ( ! balance     
rema9+ 9 ! ,fund at ! end ( ! fiscal    
ye>4  4  ,,iv ,repeal ( ,fossil ,fuel   
,subsidies ,= ,l>ge ,oil ,companies     
#dja4 ,%ort title ,?is ,act may be cit$ 
z ! ,end ,big ,oil ,tax ,subsidies ,act 
( #bjac4  #djb4 ,amortization (         
geological & geophysical exp5ditures    
7a7 ,9 g5]al ,subp>agraph 7,a7 ( section
 #afg7;h77#e7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ major        
integrat$ oil company & ins]t+ cov]$    
l>ge oil company4  7b7 ,cov]$ l>ge oil  
company ,p>agraph 7#e7 ( section        
#afg7;h7 ( su* ,act is am5d$ by         
r$esignat+ subp>agraph 7,b7 z           
subp>agraph 7,c7 & by ins]t+ aft]       
subp>agraph 7,a7 ! foll[+ new           
subp>agraph3  7,b7 ,cov]$ l>ge oil      
company ,= purposes ( ?is p>agraph1 !   
t]m cov]$ l>ge oil company means a      
taxpay] :i*--  7i7 is a major integrat$ 
oil company1 or  7ii7 has gross receipts

 9 excess ( #ej1jjj1jjj = ! taxable ye>4
  ,= purposes ( clause 7ii71 all p]sons 
treat$ z a s+le employ] "u subsections  
7a7 & 7b7 ( section #eb %all be treat$ z
 #a p]son4  4  7c7 ,con=m+ am5dm5t ,!   
head+ = p>agraph 7#e7 ( section #afg7;h7
 ( su* ,code is am5d$ by ins]t+ & o!r   
l>ge taxpay]s4  7d7 ,effective date ,!  
am5dm5ts made by ?is section %all apply 
to am\nts paid or incurr$ 9 taxable ye>s
 beg9n+ aft] ,decemb] #ca1 #bjab4  #djc4
 ,produc+ oil & gas f m>g9al wells  7a7 
,9 g5]al ,section #de;,i ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7e7  
,exception = taxpay] ) gross receipts 9 
excess ( #ej1jjj1jjj  7#a7 ,9 g5]al     
,subsection 7a7 %all n apply to any     
taxpay] ^: aggregate gross receipts = ! 
taxable ye> are 9 excess ( #ej1jjj1jjj4 
7#b7 ,aggregation rule ,= purposes (    
p>agraph 7#a71 all p]sons treat$ z a    
s+le employ] "u subsections 7a7 & 7b7 ( 
section #eb %all be treat$ z #a p]son4  
4  7b7 ,effective date ,! am5dm5t made  

by subsection 7a7 %all apply to cr$its  
det]m9$ = taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjab4  #djd4 ,enhanc$ oil
 recov]y cr$it  7a7 ,9 g5]al ,section   
#dc ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by add+ at ! end ! foll[+ new  
subsection3  7f7 ,exception = taxpay] ) 
gross receipts 9 excess ( #ej1jjj1jjj   
7#a7 ,9 g5]al ,subsection 7a7 %all n    
apply to any taxpay] ^: aggregate gross 
receipts = ! taxable ye> are 9 excess ( 
#ej1jjj1jjj4  7#b7 ,aggregation rule ,= 
purposes ( p>agraph 7#a71 all p]sons    
treat$ z a s+le employ] "u subsections  
7a7 & 7b7 ( section #eb %all be treat$ z
 #a p]son4  4  7b7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to am\nts paid or incurr$ 9 taxable ye>s
 beg9n+ aft] ,decemb] #ca1 #bjab4  #dje4
 ,intangible drill+ & developm5t co/s 9 
! case ( oil & gas wells  7a7 ,9 g5]al  
,subsection 7c7 ( section #bfc ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new s5t5ce3   
,?is subsection %all n apply to am\nts  

paid or incurr$ by a taxpay] 9 any      
taxable ye> 9 :i* su* taxpay] has       
aggregate gross receipts = ! taxable ye>
 9 excess ( #ej1jjj1jjj1 det]m9$ by     
deem+ all p]sons treat$ z a s+le employ]
 "u subsections 7a7 & 7b7 ( section #eb 
z #a p]son44  7b7 ,effective date ,!    
am5dm5t made by ?is section %all apply  
to am\nts paid or incurr$ 9 taxable ye>s
 beg9n+ aft] ,decemb] #ca1 #bjab4  #djf4
 ,p]c5tage depletion  7a7 ,9 g5]al      
,section #fac;,a ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7f7 ,exception
 = taxpay] ) gross receipts 9 excess (  
#ej1jjj1jjj  7#a7 ,9 g5]al ,?is section 
& section #faa %all n apply to any      
taxpay] :i* has aggregate gross receipts
 = ! taxable ye> 9 excess ( #ej1jjj1jjj4
  7#b7 ,aggregation rule ,= purposes (  
p>agraph 7#a71 all p]sons treat$ z a    
s+le employ] "u subsections 7a7 & 7b7 ( 
section #eb %all be treat$ z #a p]son4  
4  7b7 ,con=m+ am5dm5t ,section         
#fac;,a7c77#a7 ( su* ,code is am5d$ by  

/rik+ subsection 7d7 & ins]t+           
subsections 7d7 & 7f74  7c7 ,effective  
date ,! am5dm5t made by ?is section %all
 apply to taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjab4  #djg4 ,t]ti>y     
injectants  7a7 ,9 g5]al ,section #aic (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7d7 ,exception = taxpay] ) 
gross receipts 9 excess ( #ej1jjj1jjj   
7#a7 ,9 g5]al ,subsection 7a7 %all n    
apply to any taxpay] :i* has aggregate  
gross receipts = ! taxable ye> 9 excess 
( #ej1jjj1jjj4  7#b7 ,aggregation rule  
,= purposes ( p>agraph 7#a71 all p]sons 
treat$ z a s+le employ] "u subsections  
7a7 & 7b7 ( section #eb %all be treat$ z
 #a p]son4  4  7b7 ,effective date ,!   
am5dm5t made by ?is section %all apply  
to exp5ses incurr$ aft] ,decemb] #ca1   
#bjab4  #djh4 ,passive activity losses &
 cr$its limit$  7a7 ,rules relat+ to    
work+ int]e/s 9 oil & gas prop]ty       
,p>agraph 7#c7 ( section #dfi7;c7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

by add+ at ! end ! foll[+3  7,c7        
,exception = taxpay] ) gross receipts 9 
excess ( #ej1jjj1jjj  7i7 ,9 g5]al      
,subp>agraph 7,a7 %all n apply to any   
taxpay] :i* has aggregate gross receipts
 = ! taxable ye> 9 excess ( #ej1jjj1jjj4
  7ii7 ,aggregation rule ,= purposes (  
clause 7i71 all p]sons treat$ z a s+le  
employ] "u subsections 7a7 & 7b7 (      
section #eb %all be treat$ z #a p]son4  
4  7b7 ,effective date ,! am5dm5t made  
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjab4   
#dji4 ,income attributable to dome/ic   
production activities  7a7 ,d5ial (     
d$uction ,p>agraph 7#d7 ( section       
#aii7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,e7 ,special rule = 
c]ta9 oil & gas income ,9 ! case ( any  
taxpay] :o is a major integrat$ oil     
company 7z def9$ 9 section #afg7;h77 = !
 taxable ye>1 ! t]m dome/ic production  
gross receipts %all n include gross     
receipts f ! production1 transportation1

 or di/ribution ( oil1 natural gas1 or  
any prim>y product 7)9 ! mean+ (        
subsection 7d77#i77 !re(4  4  7b7       
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjab4  #daj4 
,prohibition on us+ la/-91 fir/-out     
acc\nt+ = major integrat$ oil companies 
7a7 ,9 g5]al ,section #dgb ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7h7  
,major integrat$ oil companies ,not)/&+ 
any o!r provision ( ?is section1 a major
 integrat$ oil company 7z def9$ 9       
section #afg7;h77 may n use ! me?od     
provid$ 9 subsection 7b7 9 inv5tory+ (  
any goods4  4  7b7 ,effective date &    
special rule  7#a7 ,9 g5]al ,! am5dm5t  
made by subsection 7a7 %all apply to    
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjab4  7#b7 ,*ange 9 me?od ( acc\nt+ ,9
 ! case ( any taxpay] requir$ by !      
am5dm5t made by ?is section to *ange its
 me?od ( acc\nt+ = its fir/ taxable ye> 
beg9n+ aft] ! date ( ! enactm5t ( ?is   

,act--  7,a7 su* *ange %all be treat$ z 
initiat$ by ! taxpay]1  7,b7 su* *ange  
%all be treat$ z made ) ! cons5t ( !    
,secret>y ( ! ,treasury1 &  7,c7 ! net  
am\nt ( ! adju/m5ts requir$ to be tak5  
into acc\nt by ! taxpay] "u section #dha
 ( ! ,int]nal ,rev5ue ,code ( #aihf %all
 be tak5 into acc\nt ratably ov] a p]iod
 7n great] ?an #h taxable ye>s7 beg9n+ )
 su* fir/ taxable ye>4  #daa4           
,modifications ( =eign tax cr$it rules  
applicable to dual capacity taxpay]s    
7a7 ,9 g5]al ,section #ija ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ subsection 7n7 z subsection  
7o7 & by ins]t+ aft] subsection 7m7 !   
foll[+ new subsection3  7n7 ,special    
rules relat+ to major integrat$ oil     
companies :i* are dual capacity taxpay]s
  7#a7 ,g5]al rule ,not)/&+ any o!r     
provision ( ?is *apt]1 any am\nt paid or
 accru$ by a dual capacity taxpay] :i*  
is a major integrat$ oil company 7z     
def9$ 9 section #afg7;h77 to a =eign    
c\ntry or possession ( ! ,unit$ ,/ates =

 any p]iod %all n be consid]$ a tax--   
7,a7 if1 = su* p]iod1 ! =eign c\ntry or 
possession does n impose a g5]ally      
applicable income tax1 or  7,b7 to !    
ext5t su* am\nt exce$s ! am\nt 7det]m9$ 
9 accordance ) regulations7 :i*--  7i7  
is paid by su* dual capacity taxpay]    
pursuant to ! g5]ally applicable income 
tax impos$ by ! c\ntry or possession1 or
  7ii7 w\ld be paid if ! g5]ally        
applicable income tax impos$ by ! c\ntry
 or possession 7 applicable to su* dual 
capacity taxpay]4  ,no?+ 9 ?is p>agraph 
%all be con/ru$ to imply ! prop]        
treatm5t ( any su* am\nt n 9 excess ( ! 
am\nt det]m9$ "u subp>agraph 7,b74  7#b7
 ,dual capacity taxpay] ,= purposes (   
?is subsection1 ! t]m dual capacity     
taxpay] means1 ) respect to any =eign   
c\ntry or possession ( ! ,unit$ ,/ates1 
a p]son :o--  7,a7 is subject to a levy 
( su* c\ntry or possession1 &  7,b7     
receives 7or w receive7 directly or     
indirectly a specific economic b5efit 7z
 det]m9$ 9 accordance ) regulations7 f  

su* c\ntry or possession4  7#c7 ,g5]ally
 applicable income tax ,= purposes ( ?is
 subsection--  7,a7 ,9 g5]al ,! t]m     
g5]ally applicable income tax means an  
income tax 7or a s]ies ( income taxes7  
:i* is g5]ally impos$ "u ! laws ( a     
=eign c\ntry or possession on income    
d]iv$ f ! conduct ( a trade or bus9ess  
)9 su* c\ntry or possession4  7,b7      
,exceptions ,su* t]m %all n include a   
tax unless x has sub/antial application1
 by its t]ms & 9 practice1 to--  7i7    
p]sons :o are n dual capacity taxpay]s1 
&  7ii7 p]sons :o are citiz5s or        
resid5ts ( ! =eign c\ntry or possession4
  4  7b7 ,effective date  7#a7 ,9 g5]al 
,! am5dm5ts made by ?is section %all    
apply to taxes paid or accru$ 9 taxable 
ye>s beg9n+ aft] ,decemb] #ca1 #bjab4   
7#b7 ,contr>y treaty obligations upheld 
,! am5dm5ts made by ?is section %all n  
apply to ! ext5t contr>y to any treaty  
obligation ( ! ,unit$ ,/ates4