There are a number of limitations on the percentage of depletion deduction, but there is a limited exception for independent producers and royalty owners. This deduction, however,

is not

available for a taxpayer that is a retailer or refiner. But $613$A$($d$)(4)$ indicates that a percentage depletion deduction $$shall

not apply

to the taxpayer for a taxable year if the average daily refinery runs of the taxpayer and such persons for the taxable year exceed fill in the blank $3$

barrels.$$