The objective of the Tax, Legal and Regulatory Analysis section of the study was to evaluate the basic tax, legal and regulatory premises upon which the Project and other parts of the study are based. The major part of these analyses concern federal income tax principles affecting the construction of a large-scale alternative energy project, particularly the application of the investment and energy tax credits, the recovery of costs through depreciation, treatment of pre-construction expenditures, capitalization of real property construction period interest, and leasing and project organization principles. Portions of the tax analysis were revised after their completion because of the passage in late August of the Tax Equity and Fiscal Responsibility Act of 1982 (the 1982 Tax Act), which makes important changes in the law. North Dakota state principles are also discussed. The balance of the legal report deals with non-income tax and tariff matters, permit requirements, federal coal leasing principles, prehistory and cultural resources, legal title to the project site, Federal Clean Air Act considerations, and other regulatory matters.