Sec. 1326. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY

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## SEC. 1326 NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY ###

(a)In General Subparagraph

(C)of section 168(e)(3) (relating to classification of certain property) is amended by striking “ and ” at the end of clause (iii), by redesignating clause

(iv)as clause (v), and by inserting after clause

(iii)the following new clause: > > ###### “(iv) > > any natural gas gathering line the original use of which commences with the taxpayer after April 11, 2005, and” > . ###

(b)Natural Gas Gathering Line Subsection

(i)of section 168 is amended by inserting after paragraph

(16)the following new paragraph: > > #### “(17) Natural gas gathering line > > The term ‘**natural gas gathering line**’ means— > > > ##### “(A) > > the pipe, equipment, and appurtenances determined to be a gathering line by the Federal Energy Regulatory Commission, and > > > ##### “(B) > > the pipe, equipment, and appurtenances used to deliver natural gas from the wellhead or a commonpoint to the point at which such gas first reaches— > > > ###### “(i) > > a gas processing plant, > > > ###### “(ii) > > an interconnection with a transmission pipeline for which a certificate as an interstate transmission pipeline has been issued by the Federal Energy Regulatory Commission, > > > ###### “(iii) > > an interconnection with an intrastate transmission pipeline, or > > > ###### “(iv) > > a direct interconnection with a local distribution company, a gas storage facility, or an industrial consumer.” > . ###

(c)Alternative System The table contained in section 168(g)(3)(B) (relating to special rule for certain property assigned to classes), as amended by this Act, is amended by inserting after the item relating to subparagraph (C)(iii) the following new item: ``(C)(iv)14''. ###

(d)Alternative Minimum Tax Exception Subparagraph

(B)of section 56(a)(1) is amended by inserting before the period the following: “, or in section 168(e)(3)(C)(iv)”. ###

(e)Effective Date ####

(1)In general The amendments made by this section shall apply to property placed in service after April 11, 2005. ####

(2)Exception The amendments made by this section shall not apply to any property with respect to which the taxpayer or a related party has entered into a binding contract for the construction thereof on or before April 11, 2005, or, in the case of self-constructed property, has started construction on or before such date.