A bill to repeal the percentage depletion allowance for oil and gas.

Repeals the percentage depletion allowance under the Internal Revenue Code for oil and gas wells except for specified gas wells. States that such gas wells include: (1) wells producing regulated natural gas; (2) wells producing natural gas sold under a fixed contract; and (3) any geothermal deposit determined to be a gas well as defined in the Internal Revenue Code.

Defines "natural gas sold under a fixed contract" as domestic natural gas sold by the producer under a contract, in effect on February 1, 1975, and all times after before such sale, under which the price for such gas cannot be adjusted to reflect to any extent the increase in liabilities of the seller for tax under this Act because of the repeal of the percentage depletion.

States that "regulated natural gas" means domestic natural gas produced and sold by the producer, prior to July 1, 1976, the price for which has not been adjusted to reflect to any extent the increase in liability of the seller for tax by reason of the repeal of the percentage depletion.