Last week Rep. Bill Cassedy (R-LA) introduced HR 1712 to the US House of Representatives. The bill ‘s intention is to exempt the sale of natural gas for use in natural gas vehicles (NGVs) for purposes of the retail sales limitations that define independent producers of petroleum products. If enacted, independent oil and natural gas companies would be able to engage in retail sales of natural gas to NGV users without jeopardizing their status as independent producers. H.R. 1712 has 49 cosponsors.
Specifically the bill amends Internal Revenue Code:Sec. 613A. Limitations on percentage depletion in case of oil and gas wells, by adding at the end the following new sentence: `Sales of natural gas, or any product derived from natural gas, for use in motor vehicles shall not be taken into account for purposes of this paragraph.’
The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.’