TIGHT GAS SAND TAX CREDIT YIELDS OPPORTUNITIES

Frank W. Lewis Petroleum Management Systems Del City, Okla. Ann S. Osburn Certified public accountant Norman, Okla. The U.S. Internal Revenue Service on Apr. 1, 1991, released the inflation adjustments used in the calculations of Non-Conventional Fuel Tax Credits for 1990.1 The inflation adjustment, 1.6730, when applied to the base price of $3/bbl of oil equivalent, adjusts the tax credit to $5.019/bbl for oil and 86.53/MMBTU for gas. The conversion factor for equivalent fuels is 5.8 MMBTU/bbl.

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