,,ii  #aah? ,,congress  #b;d ,session   
,s4 #eaih  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #be1 #bjbd   
,mr4 ,m>%all 7= himself & ,mr4 ,lank=d7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide = oil &
 natural gas well rem$iation &          
re/oration acc\nts1 & = o!r purposes4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,small ,en]gy ,produc]s ,p]=mance     
,enhancem5t ,act4  #b4 ,oil & natural   
gas well rem$iation & re/oration acc\nts
  7a7 ,9 g5]al ,"p ,,vi ( sub*apt] ,b ( 
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #aii;,b4 ,oil & natural  
gas rem$iation & re/oration acc\nts  7a7
 ,9 g5]al ,9 ! case ( an eligible small 
produc]1 !re %all be all[$ z a d$uction 
= ! taxable ye> an am\nt equal to !     
aggregate am\nt paid 9 ca% dur+ su*     
taxable ye> to an oil & natural gas     
rem$iation & re/oration acc\nt = :i* !  

eligible small produc] is ! acc\nt      
b5efici>y4  7b7 ,limitation  7#a7 ,9    
g5]al ,! am\nt all[able z a d$uction "u 
subsection 7a7 to any taxpay] %all n    
exce$ #ce1jjj4  7#b7 ,inflation adju/m5t
  7,a7 ,9 g5]al ,9 ! case ( a taxable   
ye> beg9n+ aft] #bjbe1 ! #ce1jjj am\nt 9
 p>agraph 7#a7 %all be increas$ by an   
am\nt equal to-- 7i7 su* doll> am\nt1   
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjbd = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7,b7 ,r\nd+ ,any increase det]m9$
 "u subp>agraph 7,a7 :i* is n a multiple
 ( #a1jjj %all be r\nd$ to ! ne>e/      
multiple ( #a1jjj4  7c7 ,eligible small 
produc] ,= purposes ( ?is section-- 7#a7
 ,9 g5]al ,! t]m eligible small produc] 
means1 ) respect to any taxable ye>1 any
 taxpay]--  7,a7 :i* _h no m ?an #ejj   
full-"t equival5t employees 7z def9$ 9  
section #de,r7d77 = ! prec$+ taxable    
ye>1 &  7,b7 :i*--  7i7 is all[$ a      

d$uction "u section #faa ) respect any  
oil or gas well1 &  7ii7 computes all   
su* d$uctions 9 accordance ) section    
#fac by reason ( ! application (        
subsections 7b7 or 7c7 ( section        
#fac;,a4  7#b7 ,aggregation ,all p]sons 
treat$ z a s+le employ] "u subsection   
7a7 or 7b7 ( section #eb or subsection  
7m7 or 7o7 ( section #dad %all be treat$
 z "o p]son = purposes ( p>agraph 7#a74 
7d7 ,oil & natural gas rem$iation &     
re/oration acc\nt ,= purposes ( ?is     
section--  7#a7 ,9 g5]al ,! t]m oil &   
natural gas rem$iation & re/oration     
acc\nt means a tru/ creat$ or organiz$ 9
 ! ,unit$ ,/ates z an oil & natural gas 
rem$iation & re/oration acc\nt          
exclusively = ! purpose ( pay+ !        
qualifi$ well capp+1 clos+1 & rem$iation
 co/s ( ! acc\nt b5efici>y1 b only if ! 
writt5 gov]n+ in/rum5t creat+ ! tru/    
meets ! foll[+ requirem5ts3 7,a7 ,except
 9 ! case ( a rollov] contribution      
describ$ 9 subsection 7f77#e71 no       
contribution w be accept$--  7i7 unless 

x is 9 ca%1 or  7ii7 to ! ext5t x exce$s
 ! doll> am\nt 9 effect "u subsection   
7b74  7,b7 ,! tru/ee is a bank 7z def9$ 
9 section #djh7n77 or su* o!r p]son :o  
demon/rates to ! satisfaction ( !       
,secret>y t ! mann] 9 :i* su* o!r p]son 
w adm9i/] ! tru/ w be consi/5t ) !      
requirem5ts ( ?is section4  7,c7 ,!     
assets ( ! tru/ w n be comm+l$ ) o!r    
prop]ty except 9 a common tru/ fund or  
common inve/m5t fund4  7,d7 ,! int]e/ ( 
an acc\nt b5efici>y 9 ! balance 9 !     
acc\nt is non=feitable4  7#b7 ,qualifi$ 
well capp+1 clos+1 & rem$iation co/s ,! 
t]m qualifi$ well capp+1 clos+1 &       
rem$iation co/s means am\nts paid or    
incurr$ by an acc\nt b5efici>y :i* are  
relat$ to ! capp+1 clos+1 & rem$iation (
 oil produc+1 injection1 & natural gas  
wells1 includ+--  7,a7 co/s associat$ ) 
meet+ ,f$]al1 /ate1 or tribal regulatory
 & p]mitt+ requirem5ts associat$ )      
capp+1 clos+1 & rem$iat+ an oil produc+1
 injection1 or natural gas well1  7,b7  
labor co/s associat$ ) remov+ oil       

produc+1 injection1 & natural gas well  
infra/ructure1  7,c7 ! co/ ( mat]ials   
us$ to cap1 close1 & rem$iate an oil    
produc+1 injection1 or natural gas well1
 &  7,d7 labor co/s associat$ ) !       
application ( mat]ials & ! use (        
equipm5t to prep>e1 cap1 close1 &       
rem$iate an oil produc+1 injection1 or  
natural gas well4  7e7 ,tax treatm5t (  
acc\nts  7#a7 ,9 g5]al ,an oil & natural
 gas rem$iation & re/oration acc\nt is  
exempt f taxation "u ?is subtitle4      
,not)/&+ ! prec$+ s5t5ce1 any su* acc\nt
 is subject to ! taxes impos$ by section
 #eaa 7relat+ to imposition ( tax on    
unrelat$ bus9ess income ( *>itable1 etc4
 organizations74  7#b7 ,acc\nt          
t]m9ations ,rules simil> to ! rules (   
p>agraphs 7#b7 & 7#d7 ( section #djh7;e7
 %all apply to oil & natural gas        
rem$iation & re/oration acc\nts1 & any  
am\nt treat$ z di/ribut$ "u su* rules   
%all be treat$ z n us$ to pay qualifi$  
well capp+1 clos+1 & rem$iation co/s4   
7f7 ,treatm5t ( di/ributions  7#a7      

,am\nts us$ = qualifi$ well capp+1      
clos+1 & rem$iation co/s ,any am\nt paid
 or di/ribut$ out ( an oil & natural gas
 rem$iation & re/oration acc\nt :i* is  
us$ exclusively to pay qualifi$ well    
capp+1 clos+1 & rem$iation co/s ( any   
acc\nt b5efici>y %all n be includible 9 
gross income4  7#b7 ,inclusion ( am\nts 
n us$ = qualifi$ well capp+1 clos+ &    
rem$iation co/s ,any am\nt paid or      
di/ribut$ out ( an oil & natural gas    
rem$iation & re/oration acc\nt :i* is n 
us$ exclusively to pay ! qualifi$ well  
capp+1 clos+1 & rem$iation co/s ( !     
acc\nt b5efici>y %all be includ$ 9 !    
gross income ( su* b5efici>y4  7#c7     
,treatm5t ( excess contributions return$
 be=e due date ( return ,rules simil> to
 ! rules ( section #bbc7;f77#c7 %all    
apply = purposes ( ?is section4  7#d7   
,additional tax on di/ributions n us$ = 
qualifi$ well capp+1 clos+1 & rem$iation
 co/s ,! tax impos$ by ?is *apt] on !   
acc\nt b5efici>y = any taxable ye> 9 :i*
 !re is a paym5t or di/ribution f an oil

 & natural gas rem$iation & re/oration  
acc\nt ( su* b5efici>y :i* is includible
 9 gross income "u p>agraph 7#b7 %all be
 increas$ by #be p]c5t ( ! am\nt :i* is 
s includible4  7#e7 ,rollov]            
contribution ,an am\nt is describ$ 9 ?is
 p>agraph z a rollov] contribution if x 
meets ! requirem5ts ( subp>agraphs 7,a7 
& 7,b74 7,a7 ,9 g5]al ,p>agraph 7#b7    
%all n apply to any am\nt paid or       
di/ribut$ f an oil & natural gas        
rem$iation & re/oration acc\nt to !     
acc\nt b5efici>y to ! ext5t ! am\nt     
receiv$ is paid into an oil & natural   
gas rem$iation & re/oration acc\nt = !  
b5efit ( su* b5efici>y n lat] ?an ! #fj?
 day aft] ! day on :i* ! b5efici>y      
receives ! paym5t or di/ribution4  7,b7 
,limitation ,?is p>agraph %all n apply  
to any am\nt describ$ 9 subp>agraph 7,a7
 receiv$ by an individual f an oil &    
natural gas rem$iation & re/oration     
acc\nt if1 at any "t dur+ ! #a-ye> p]iod
 end+ on ! day ( su* receipt1 su*       
individual receiv$ any o!r am\nt        

describ$ 9 subp>agraph 7,a7 f an oil &  
natural gas rem$iation & re/oration     
acc\nt :i* 0 n includible 9 !           
individual's gross income because ( !   
application ( ?is p>agraph4  7g7        
,natural gas ,= purposes ( ?is section1 
! t]m natural gas has ! mean+ giv5 su*  
t]m "u section #fac;,a7e77#b74  4  7b7  
,excess contributions  7#a7 ,9 g5]al    
,section #digc7;a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ or at ! 
end ( p>agraph 7#e71 by ins]t+ or at !  
end ( p>agraph 7#f71 & by ins]t+ aft]   
p>agraph 7#f7 ! foll[+ new p>agraph3    
7#g7 an oil & natural gas rem$iation &  
re/oration acc\nt 7)9 ! mean+ ( section 
#aii;,b71  4  7#b7 ,excess contributions
 ,section #digc ( su* ,code is am5d$ by 
add+ at ! end ! foll[+ new subsection3  
7i7 ,excess contributions to oil &      
natural gas rem$iation & re/oration     
acc\nts  7#a7 ,9 g5]al ,9 ! case ( an   
oil & natural gas rem$iation &          
re/oration acc\nt1 ! t]m excess         
contributions means ! am\nt by :i* !    

am\nt contribut$ = ! taxable ye> to su* 
acc\nt 7o!r ?an contributions "u section
 #aii;,b7f77#e77 exce$s ! contribution  
limitation det]m9$ "u section           
#aii;,b7d77#a77;,a77ii74  7#b7 ,special 
rule ,= purposes ( ?is subsection1 any  
contribution :i* is di/ribut$ out ( !   
acc\nt 9 a di/ribution to :i* section   
#aii;,b7f77#c7 applies %all be treat$ z 
an am\nt n contribut$4  4  7c7          
,application ( prohibit$ transaction    
rules  7#a7 ,9 g5]al ,section           
#dige7;e77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ or at ! end (
 subp>agraph 7,f71 by r$esignat+        
subp>agraph 7,g7 z subp>agraph 7,h71 &  
by ins]t+ aft] subp>agraph 7,f7 ! foll[+
 new subp>agraph3  7,g7 an oil & natural
 gas rem$iation & re/oration acc\nt     
describ$ 9 section #aii;,b1 or  4  7#b7 
,special rule ,section #dige7;c7 ( su*  
,code is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#h7 ,special rule = oil
 & natural gas rem$iation & re/oration  
acc\nts ,an individual = ^: b5efit an   

oil & natural gas rem$iation &          
re/oration acc\nt 7)9 ! mean+ ( section 
#aii;,b7 is e/abli%$ %all be exempt f ! 
tax impos$ by ?is section ) respect to  
any transaction conc]n+ su* acc\nt 7:i* 
w\ld o!rwise be taxable "u ?is section7 
if1 ) respect to su* transaction1 !     
acc\nt ceases to be an oil & natural gas
 rem$iation & re/oration acc\nt by      
reason ( ! application ( section        
#aii;,b7d77#b7 to su* acc\nt4  4  7d7   
,cl]ical am5dm5t ,! table ( sections =  
"p ,,vi ( sub*apt] ,b ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #aii;,b4 ,oil & natural gas       
rem$iation & re/oration acc\nts4  4  7e7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4