
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC638]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                     Subchapter I--Natural Resources
 
                     PART V--CONTINENTAL SHELF AREAS
 
Sec. 638. Continental shelf areas

    For purposes of applying the provisions of this chapter (including 
sections 861(a)(3) and 862(a)(3) in the case of the performance of 
personal services) with respect to mines, oil and gas wells, and other 
natural deposits--
        (1) the term ``United States'' when used in a geographical sense 
    includes the seabed and subsoil of those submarine areas which are 
    adjacent to the territorial waters of the United States and over 
    which the United States has exclusive rights, in accordance with 
    international law, with respect to the exploration and exploitation 
    of natural resources; and
        (2) the terms ``foreign country'' and ``possession of the United 
    States'' when used in a geographical sense include the seabed and 
    subsoil of those submarine areas which are adjacent to the 
    territorial waters of the foreign country or such possession and 
    over which the foreign country (or the United States in case of such 
    possession) has exclusive rights, in accordance with international 
    law, with respect to the exploration and exploitation of natural 
    resources, but this paragraph shall apply in the case of a foreign 
    country only if it exercises, directly or indirectly, taxing 
    jurisdiction with respect to such exploration or exploitation.

No foreign country shall, by reason of the application of this section, 
be treated as a country contiguous to the United States.

(Added Pub. L. 91-172, title V, Sec. 505(a), Dec. 30, 1969, 83 Stat. 
634.)

                  Section Referred to in Other Sections

    This section is referred to in sections 29, 43, 45, 863, 1441, 4121, 
4612 of this title.
