H.R. 927 (112th): United States Exploration on Idle Tracts Act

112^th Congress, 2011–2013. Text as of Mar 03, 2011 (Introduced).

HR 927 IH

112th CONGRESS

1st Session

H. R. 927

To direct the Secretary of the Interior to establish an annual production incentive fee with respect to Federal onshore and offshore lands that are subject to a lease for production of oil or natural gas under which production is not occurring, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 3, 2011

Mr. MARKEY (for himself and Mr. HOLT) introduced the following bill; which was referred to the Committee on Natural Resources

A BILL

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘United States Exploration on Idle Tracts Act’ or the ‘USE IT Act’.

SEC. 2. PRODUCTION INCENTIVE FEE.

(a) Establishment- The Secretary of the Interior shall, within 180 days after the date of enactment of this Act, issue regulations to establish an annual production incentive fee with respect to Federal onshore and offshore lands that are subject to a lease for production of oil or natural gas under which production is not occurring. Such fee shall apply with respect to lands that are subject to such a lease that is in effect on the date final regulations are promulgated under this subsection or that is issued thereafter.

(b) Amount- The amount of the fee shall be, for each acre of land from which oil or natural gas is produced for less than 90 days in a calendar year--

(1) in the case of onshore land--

(A) for each of the first 3 years of the lease, $4 per acre in 2011 dollars;

(B) for the fourth year of the lease, $6 per acre in 2011 dollars; and

(C) for the fifth year of the lease and each year thereafter for which the lease is otherwise in effect, $8 per acre in 2011 dollars; and

(2) in the case of offshore land--

(A) for each of the third, fourth, and fifth years of the lease, $4 per acre in 2011 dollars;

(B) for the sixth year of the lease, $6 per acre in 2011 dollars; and

(C) for the seventh year of the lease and each year thereafter for which the lease is otherwise in effect, $8 per acre in 2011 dollars.

(d) Deposit- Amounts received by the United States as the fee under this section shall be deposited in the general fund of the Treasury.

(e) Regulations- The Secretary of the Interior may issue regulations to prevent evasion of the fee under this section.