,,ii  #aaith ,,congress  #b;d ,session  
,s4 #dfjd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bj1      
#bjbf,mr4 ,marshall 7for himself1 ,mr4  
,cassidy1 and ,mr4 ,moran7 introduced   
the following bill2 which was read twice
 and referred to the ,committee on      
,finance  ,a ,,bill  ,to amend the      
,internal ,revenue ,code of #aihf to    
modify certain percentage depletion     
rules with respect to oil and gas wells4
  #a4 ,short title ,this ,act may be    
cited as the ,protecting ,america's     
,small ,oil and ,gas ,producers and     
,rural ,jobs ,act4  #b4 ,modification of
 certain percentage depletion rules with
 respect to oil and gas wells  7a7      
,percentage depletion rate calculation  
modified with respect to marginal       
properties ,section #fac;,a7c77#f77;,c7 
of the ,internal ,revenue ,code of #aihf
 is amended to read as follows3  7,c7   
,applicable percentage  7i7 ,in general 
,for purposes of subparagraph 7,a71 the 
term applicable percentage means the    

percentage 7not greater than #be        
percent7 equal to the sum of-- 7,i7 #ae 
percent1 plus  7,,ii7 #a percentage     
point for each whole dollar by which #gj
 exceeds the reference price for crude  
oil for the calendar year preceding the 
calendar year in which the taxable year 
begins4  ,for purposes of this          
paragraph1 the term reference price     
means1 with respect to any calendar     
year1 the reference price determined for
 such calendar year under section       
#de,k7d77#b77;,c74  7ii7 ,,ppi          
adjustment  7,i7 ,in general ,in the    
case of any taxable year beginning in a 
calendar year after #bjbg1 the #gj      
amount in clause 7i77,,ii7 shall be     
increased by an amount equal to-- 7aa7  
such dollar amount1 multiplied by  7bb7 
the ,,ppi adjustment factor for such    
calendar year4  7,,ii7 ,,ppi adjustment 
factor ,for purposes of subclause 7,i71 
the ,,ppi adjustment factor for any     
calendar year is the percentage 7if any7
 by which-- 7aa7 the ,,ppi for the      

preceding calendar year1 exceeds  7bb7  
the ,,ppi for calendar year #bjbf4      
7,,iii7 ,,ppi for any calendar year ,for
 purposes of subclause 7,,ii71 the ,,ppi
 for any calendar year is the average of
 the ,producer ,price ,index for        
,drilling ,oil and ,gas ,wells1 as      
published by the ,bureau of ,labor      
,statistics of the ,department of       
,labor1 as of the close of the #ab-month
 period ending on ,august #ca of such   
calendar year4  4  7b7 ,nonapplication  
of taxable income limitation with       
respect to marginal properties ,section 
#fac;,a7c77#f7 of such ,code is amended 
by adding at the end the following new  
subparagraph3  7,h7 ,nonapplication of  
taxable income limitation ,with respect 
to so much of the allowance for         
depletion as is determined under        
subparagraph 7,a7-- 7i7 subsection      
7d77#a7 shall not apply1 and  7ii7 the  
second sentence of subsection 7a7 of    
section #fac shall not apply4  4  7c7   
,depletable oil quantity calculation    

modified ,section #fac;,a7c77#c77;,b7 of
 such ,code is amended by striking      
#a1jjj barrels and inserting #b1jjj     
barrels4  7d7 ,effective date ,the      
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjbf4