Emergency Energy Act of 1987

Emergency Energy Act of 1987 - Title I: Amendments of Internal Revenue Code of 1954 - Amends the Internal Revenue Code to allow a credit against the income tax for crude oil producers equal to the excess of an oil well's operating costs allocable to a barrel of oil over the sales price of the barrel (but in no event for more than $5.00 per barrel). Provides for a carryback of unused excess credits for any year.

Allows a credit for 15 percent of the costs of exploring for oil or natural gas in the United States. Provides for a carryback of unused excess exploration cost credits.

Revises the minimum tax rules to allow a taxpayer to elect to carry over any portion of a percentage depletion deduction to the succeeding taxable year.

Revises the definition of intangible drilling and development costs eligible for annual deduction as business expenses when paid or incurred to include geological, geophysical, and surface casing costs paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any domestic deposit of oil or gas.

Repeals the tax preference cutback which currently requires integrated oil and gas producers to reduce (and thereby capitalize) the amount of intangible drilling and development costs eligible for a tax deduction by 30 percent.

Repeals the rule that limits percentage depletion for oil or gas properties to 50 percent of a taxpayer's net income from the property.

Revises the rule regarding an election to treat operating mineral interests as separate properties to allow such an election without regard to whether one or more of the operating mineral interests participated, under a voluntary or compulsory unitization or pooling agreement, in a single cooperative or unit plan of operation.

Repeals specified rules which currently disqualify certain properties from: (1) the percentage depletion allowance deduction; and (2) the stripper well oil exemption from the windfall profit tax.

Revises the special rules for the windfall profit tax to declare that a return shall not be treated as required if the amount of windfall profit tax withheld from the purchase payment to an oil producer equals or exceeds the amount required to be withheld as shown on the first purchaser's return. (The statute of limitations on assessments for windfall profit tax liability will thus begin to run concurrently with the statute of limitations on the taxpayer's income tax return.) Limits such rule revision to returns filed after February 29, 1980.

Repeals the windfall profit tax.

Title II: Removal of Wellhead Price Controls and Repeal of Natural Gas Act Jurisdiction Over Certain First Sales of Natural Gas - Amends the Natural Gas Policy Act of 1978 to: (1) remove wellhead price controls over natural gas prices; (2) repeal the jurisdiction of the Federal Energy Regulatory Commission (FERC) over natural gas exempt from wellhead price controls; (3) repeal the President's standby price control authority; and (4) repeal congressional review of natural gas price controls.

Title III: Repeal of Certain Restrictions on the Use of Natural Gas and Petroleum - Amends the Powerplant and Industrial Fuel Use Act of 1978 to: (1) repeal the prohibitions against the use by electric powerplants and major fuel-burning installations of petroleum and natural gas as primary energy sources: (2) remove the restrictions placed upon Federal major fuel-burning installations against the use of natural gas and petroleum as primary energy sources; (3) repeal the guidelines for the emergency use of natural gas or petroleum as a primary energy source by any person operating a peakload powerplant or a major fuel-burning installation.

Revokes the authority of the Secretary of Energy to require any major fuel-burning installation to furnish certain information regarding the use of primary energy sources of fuel.

Title IV: Repeal of Incremental Pricing Requirements- Amends the Natural Gas Policy Act of 1978 to repeal the natural gas incremental pricing provisions. States that incremental pricing rules promulgated by FERC shall continue in effect only with respect to the flow-through of costs incurred before enactment of this section, including any surcharges based on such costs.

Title V: Strategic Petroleum Reserve - Amends the Energy Policy and Conservation Act to direct the Secretary of Energy to fill the Strategic Petroleum Reserve only with crude oil produced in the United States.

Title VI: Separability - Sets forth separability provisions.