S. 3395Senate110th Congress (2007-2009)In Committee

Marginal Well Production Preservation and Enhancement Act

Introduced July 31, 2008

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

July 31, 2008

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SenateIntro Referral

Introduced in Senate

July 31, 2008

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S7952)

July 31, 2008

SenateIntro Referral

Read twice and referred to the Committee on Finance.

July 31, 2008

Floor Debate

24 members

What members said about S. 3395 on the floor

7 Republicans16 Democrats1 Independent
Tom Harkin
Sen. Tom HarkinD-IA · Jul 31, 2008

Mr. President, I am proud to join my colleagues in introducing the Medical Device Safety Act. This legislation reverses the Supreme Court's erroneous decision in Riegel v. Medtronic. There, the Court…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 31, 2008

Mr. President, today I rise to introduce the FDA Food Safety Modernization Act. Yesterday, the Food and Drug Administration, which is responsible for ensuring the safety of about 80 percent of our…

Harry Reid
Sen. Harry ReidD-NV · Jul 31, 2008

Mr. President, today I rise with my good friend Senator Ensign to introduce the Carson City Vital Community Act of 2008. The origins of this legislation can be found in Carson City's collaborative…

Bernard Sanders
Sen. Bernard SandersI-VT · Jul 31, 2008

Mr. President, today there is some good news and some bad news. The bad news is that oil is at $123 a barrel and working people are paying $4 for a gallon of gas, and this coming winter residents of…

Kent Conrad
Sen. Kent ConradD-ND · Jul 31, 2008

Mr. President, today I join my good friend and colleague, Senator Baucus, in introducing the Comparative Effectiveness Research Act of 2008. This proposal is the product of months of careful…

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Susan M. Collins
Sen. Susan M. CollinsR-ME · Jul 31, 2008

Mr. President, I rise to join my friend Senator Wyden in introducing a bill that will ban the sale of certain novelty lighters that children can mistake for toys, often with tragic consequences for…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Jul 31, 2008

Mr. President, I rise today to introduce the National Pain Care Policy Act of 2008. I am pleased to have worked with my colleague, Senator Christopher Dodd, on this legislation which will help to…

Gordon H. Smith
Sen. Gordon H. SmithR-OR · Jul 31, 2008

Mr. President, I rise today with my colleague Senator Ron Wyden to introduce a bill that will help improve the lives of our veterans who are suffering from a mental illness. The Healing Our Nation's…

Max Baucus
Sen. Max BaucusD-MT · Jul 31, 2008

Mr. President, in 2006, America spent more than $2 trillion on health care. By any standard, $2 trillion is an enormous figure. Health care accounts for 16 percent of our Nation's economy. That means…

Ron Wyden
Sen. Ron WydenD-OR · Jul 31, 2008

Mr. President, over the past 7 years, hundreds of thousands of members of our armed forces have gone to war and returned home alive, but suffering. Advances in protective equipment and improvements…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jul 31, 2008

Mr. President, today I am proud to introduce The Harriet Tubman National Historical Park and The Harriet Tubman Underground Railroad National Historical Park Act. I am joined by Mrs. Clinton, Ms.…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Jul 31, 2008

Mr. President, today I rise to introduce legislation to offer a drastically simplified alternative for home-based businesses to benefit from the home office tax deduction. The U.S. Small Business…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Jul 31, 2008

Mr. President, today, the junior Senator from Rhode Island, Senator Whitehouse, and I will introduce the Executive Order Integrity Act of 2008. The bill prevents secret changes to published Executive…

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Chuck Grassley
Sen. Chuck GrassleyR-IA · Jul 31, 2008

Mr. President, as Ranking Member of the Senate Finance Committee, I view my role as working to ensure the safety and well- being of the more than 80 million Americans who are beneficiaries of the…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Jul 31, 2008

President, as a member of the Banking Committee, I have worked to improve the financial literacy of our country. My interest in financial literacy dates back to when my fourth grade teacher required…

Thomas R. Carper
Sen. Thomas R. CarperD-DE · Jul 31, 2008

Mr President, I rise today with my colleagues on the Homeland Security and Governmental Affairs Committee to introduce the Information Technology Oversight Enhancement and Waste Prevention Act of…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jul 31, 2008

Mr. President, today I am introducing a private relief bill on behalf of Guy Privat Tape and his wife Lou Nazie Raymonde Toto. Mr. Tape and Ms. Toto are citizens of the Ivory Coast, but have been…

Norm Coleman
Sen. Norm ColemanR-MN · Jul 31, 2008

Mr. President, Minnesota is the land of over 10,000 lakes and nearly as many fishing guides. We even have a Fishing Hall of Fame in Baxter where many of our legendary guides are enshrined--names like…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Jul 31, 2008

Mr. President, today Senator Domenici and I are introducing a bill that I am pleased to say, will help end contentious disputes over water rights claims in two long-standing general stream…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Jul 31, 2008

Mr. President, I rise today to join my colleague from Utah, Senator Orrin Hatch, in introducing the National Pain Care Policy Act of 2008. This important legislation would make significant strides in…

Herb Kohl
Sen. Herb KohlD-WI · Jul 31, 2008

Mr. President, I rise today to introduce the Independent Drug Education and Outreach Act. Over the past year, the Committee on Aging has been taking a close look at the relationship between the…

Patty Murray
Sen. Patty MurrayD-WA · Jul 31, 2008

Mr. President, I rise today to introduce the Northwest Straits Marine Conservation Initiative Act. This bill will reauthorize the Northwest Straits Marine Conservation Initiative, which promotes the…

Richard Burr
Sen. Richard BurrR-NC · Jul 31, 2008

Mr. President, in the years since the War on Terror began, we have seen the creation of new Wounded Warrior Battalions and Warrior Transition Battalions in the Marines and the Army. These units were…

Blanche L. Lincoln
Sen. Blanche L. LincolnD-AR · Jul 31, 2008

Mr. President, I am very pleased to rise today to introduce the Timber Revitalization and Economic Enhancement Act II of 2008 with my good friend, Senator Smith of Oregon. I also want to say a…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued July 31, 2008

II

110th CONGRESS

2d Session

S. 3395

IN THE SENATE OF THE UNITED STATES

July 31, 2008

Mr. Inhofe introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To provide for marginal well production preservation and enhancement.

1.

Short title

This Act may be cited as the Marginal Well Production Preservation and Enhancement Act.

2.

Tax treatment for prolonged marginal production

(a)

Increase in percentage depletion for oil and natural gas produced from marginal properties

(1)

In general

Paragraph (6) of section 613A(c) of the Internal Revenue Code of 1986 (relating to oil and natural gas produced from marginal properties), as amended by this Act, is amended to read as follows:

(6)

Oil and natural gas produced from marginal properties

(A)

In general

Except as provided in subsection (d)—

(i)

the allowance for depletion under section 611 shall be computed in accordance with section 613 with respect to the taxpayer's marginal production of domestic crude oil and domestic natural gas, and

(ii)

27.5 percent shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section.

(B)

Coordination with other production of domestic oil and natural gas

For purposes of this subsection—

(i)

no allowance for depletion shall be allowed by reason of paragraph (1) with respect to the taxpayer's marginal production of domestic crude oil and domestic natural gas, and

(ii)

such production shall not be taken into account—

(I)

in determining under paragraph (1) how much of the taxpayer's depletable oil quantity or depletable natural gas quantity has been used, or

(II)

for purposes of applying subparagraph (A), (B), or (C) of paragraph (7).

(C)

Marginal production

The term marginal production means domestic crude oil or domestic natural gas which is produced during any taxable year from a property which—

(i)

is a stripper well property for the calendar year in which the taxable year begins, or

(ii)

is a property substantially all of the production of which during such calendar year is heavy oil.

(D)

Stripper well property

For purposes of this paragraph, the term stripper well property means, with respect to any calendar year, any property with respect to which the amount determined by dividing—

(i)

the average daily production of domestic crude oil and domestic natural gas from producing wells on such property for such calendar year, by

(ii)

the number of such wells,

is 15 barrel equivalents or less.
(E)

Heavy oil

For purposes of this paragraph, the term heavy oil means domestic crude oil produced from any property if such crude oil had a weighted average gravity of 20 degrees API or less (corrected to 60 degrees Fahrenheit).

(F)

Nonapplication of taxable income limit with respect to marginal production

The second sentence of subsection (a) of section 613 shall not apply to so much of the allowance for depletion as is determined under subparagraph (A).

.

(2)

Conforming amendments

(A)

Section 613A(c)(3) of the Internal Revenue Code of 1986 (defining depletable oil quantity) is amended to read as follows:

(3)

Depletable oil quantity

For purposes of paragraph (1), the taxpayer's depletable oil quantity shall be 1,000 barrels.

.

(B)

Subparagraphs (A) and (B) of section 613A(c)(7) of such Code are each amended by striking or (6), as the case may be.

(3)

Effective date

The amendment made by this subsection shall apply to taxable years beginning after December 31, 2008.

(b)

1-year extension of suspension of taxable income limit

Section 613A(c)(6)(H) of the Internal Revenue Code of 1986 (relating to temporary suspension of taxable income limit with respect to marginal production) is amended by striking 2008 and inserting 2009.

3.

Oil and gas wells and pipeline facilities technical amendment

Section 112(n)(4)(A) of the Clean Air Act (42 U.S.C. 7412(n)(4)(A)) is amended by striking this section and inserting this Act.

4.

National response system

Section 311(j) of the Federal Water Pollution Control Act (33 U.S.C. 1321(j)) is amended by striking paragraph (1) and inserting the following:

(1)

System

(A)

Definition of wastewater treatment facility

In this paragraph, the term wastewater treatment facility includes produced water from an oil production facility.

(B)

Regulations

Consistent with the National Contingency Plan required under subsection (d), as soon as practicable after the effective date of this section, and from time to time thereafter, the President shall promulgate regulations consistent with maritime safety and marine and navigation laws—

(i)

establishing methods and procedures for removal of discharged oil and hazardous substances;

(ii)

establishing criteria for the development and implementation of local and regional oil and hazardous substance removal contingency plans;

(iii)

establishing procedures, methods, and requirements and other requirements for equipment to prevent discharges of oil and hazardous substances from vessels and from onshore facilities and offshore facilities (other than wastewater treatment facilities), and to contain those discharges; and

(iv)

governing the inspection of vessels carrying cargoes of oil and hazardous substances and the inspection of those cargoes in order to reduce the likelihood of discharges of oil from vessels in violation of this section.

(C)

Small facilities

In carrying out clause (iii) of subparagraph (B), not later than 1 year after the date of enactment of that clause, the Administrator shall establish procedures, methods, and equipment requirements and other requirements for, and consider the cost-effectiveness of those requirements on, small facilities (including agricultural and oil production facilities) to prevent discharges from facilities and offshore facilities, and to contain those discharges, by developing regulations based on storage volume and capacity that, with respect to those small facilities—

(i)

apply to any facility the total oil storage capacity of which is at least 1,320 gallons but less than 50,000 gallons, and at which no single tank exceeds a nominal capacity of 21,000 gallons; and

(ii)

establish minimal requirements and plans by eliminating engineer certification, flow lines, loading and unloading areas, integrity testing, and other requirements, as determined by the Administrator, that do not take into consideration and meet cost-effectiveness standards.

.

5.

Recovery period for depreciation of property used to inject qualified tertiary injectants

(a)

In general

Section 168(e)((3)(A) of the Internal Revenue Code of 1986 (defining 3-year property) is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and, and by adding at the end the following new clause:

(iv)

any qualified tertiary injectant property.

.

(b)

Qualified tertiary injectant property

Section 168(e) of the Internal Revenue Code of 1986 (relating to classification of property) is amended by adding at the end the following new paragraph:

(8)

Qualified tertiary injectant property

The term qualified tertiary injectant property means—

(A)

any property—

(i)

the principal use of which is to inject any tertiary injectant as a part of a tertiary recovery method (as defined in section 193(b)(3)), or

(ii)

which is a pipeline used to carry any tertiary injectant in connection with such tertiary recovery method, and

(B)

which has a class life of more than 4 years.

.

(c)

Alternative system

The table contained in section 168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subparagraph (A)(iii) the following new item:

(A)(iv)7

.

(d)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.