S. 1280

USE IT Act

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II

114th CONGRESS

1st Session

S. 1280

IN THE SENATE OF THE UNITED STATES

May 11, 2015

Mr. Markey introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

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

1.

Short title

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

2.

Production incentive fee

(a)

Establishment

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary of the Interior (referred to in this section as the Secretary) shall issue regulations to establish an annual production incentive fee with respect to Federal onshore and offshore land that is subject to a lease for production of oil or natural gas under which production is not occurring.

(2)

Application

The annual production incentive fee described in paragraph (1) shall apply with respect to land that is subject to a lease described in paragraph (1) that is—

(A)

in effect on the date on which final regulations are issued pursuant to this subsection; or

(B)

executed after that date.

(b)

Amount

For each acre of land from which oil or natural gas is produced for less than 90 days in a calendar year, the amount of the fee shall be—

(1)

in the case of onshore land—

(A)

for each of the first 3 years of the lease, $4 per acre (in 2015 dollars);

(B)

for the fourth year of the lease, $6 per acre (in 2015 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 2015 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 2015 dollars);

(B)

for the sixth year of the lease, $6 per acre (in 2015 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 2015 dollars).

(c)

Assessment and collection

The Secretary shall assess and collect the fee established under this section.

(d)

Deposit

Amounts received by the Secretary for the fee under this section shall be reserved for the Secretary for expenditures on inspection, enforcement, and permitting relating to oil and gas.

(e)

Regulations

The Secretary may issue regulations to prevent evasion of the fee under this section.