2014 US Code
Title 42 - The Public Health and Welfare (Sections 1 - 18445)
Chapter 149 - National Energy Policy and Programs (Sections 15801 - 16538)
Subchapter III - Oil and Gas (Sections 15901 - 15952)
Part A - Production Incentives (Sections 15901 - 15912)
Sec. 15909 - Gas hydrate production incentive
Publication Title | United States Code, 2012 Edition, Supplement 2, Title 42 - THE PUBLIC HEALTH AND WELFARE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 149 - NATIONAL ENERGY POLICY AND PROGRAMS SUBCHAPTER III - OIL AND GAS Part A - Production Incentives Sec. 15909 - Gas hydrate production incentive |
Contains | section 15909 |
Date | 2014 |
Laws In Effect As Of Date | January 5, 2015 |
Positive Law | No |
Disposition | standard |
Source Credit | Pub. L. 109-58, title III, §353, Aug. 8, 2005, 119 Stat. 714. |
Statutes at Large References | 67 Stat. 462 119 Stat. 714 |
Public and Private Laws | Public Law 109-58 |
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The purpose of this section is to promote natural gas production from the natural gas hydrate resources on the outer Continental Shelf and Federal lands in Alaska by providing royalty incentives.
(b) Suspension of royalties(1) In generalThe Secretary may grant royalty relief in accordance with this section for natural gas produced from gas hydrate resources under an eligible lease.
(2) Eligible leasesA lease shall be an eligible lease for purposes of this section if—
(A) it is issued under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), or is an oil and gas lease issued for onshore Federal lands in Alaska;
(B) it is issued prior to January 1, 2016; and
(C) production under the lease of natural gas from gas hydrate resources commences prior to January 1, 2018.
(3) Amount of reliefThe Secretary shall conduct a rulemaking and grant royalty relief under this section as a suspension volume if the Secretary determines that such royalty relief would encourage production of natural gas from gas hydrate resources from an eligible lease. The maximum suspension volume shall be 30 billion cubic feet of natural gas per lease. Such relief shall be in addition to any other royalty relief under any other provision applicable to the lease that does not specifically grant a gas hydrate production incentive. Such royalty suspension volume shall be applied to any eligible production occurring on or after the date of publication of the advanced notice of proposed rulemaking.
(4) LimitationThe Secretary may place limitations on royalty relief granted under this section based on market price.
(c) ApplicationThis section shall apply to any eligible lease issued before, on, or after August 8, 2005.
(d) Rulemakings(1) RequirementThe Secretary shall publish the advanced notice of proposed rulemaking within 180 days after August 8, 2005, and complete the rulemaking implementing this section within 365 days after August 8, 2005.
(2) Gas hydrate resources definedSuch regulations shall define the term "gas hydrate resources" to include both the natural gas content of gas hydrates within the hydrate stability zone and free natural gas trapped by and beneath the hydrate stability zone.
(e) ReviewNot later than 365 days after August 8, 2005, the Secretary, in consultation with the Secretary of Energy, shall carry out a review of, and submit to Congress a report on, further opportunities to enhance production of natural gas from gas hydrate resources on the outer Continental Shelf and on Federal lands in Alaska through the provision of other production incentives or through technical or financial assistance.
(Pub. L. 109–58, title III, §353, Aug. 8, 2005, 119 Stat. 714.)
REFERENCES IN TEXTThe Outer Continental Shelf Lands Act, referred to in subsec. (b)(2)(A), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which is classified generally to subchapter III (§1331 et seq.) of chapter 29 of Title 43, Public Lands. For complete classification of this Act to the Code, see Short Title note set out under section 1301 of Title 43 and Tables.
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