Sec. 102. Production incentive fee
292 words·~1 min read·
/bill/113/hr/601/ih/section-102A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.
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— in the case of onshore land— for each of the first 3 years of the lease, $4 per acre in 2011 dollars; for the fourth year of the lease, $6 per acre in 2011 dollars; and 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 in the case of offshore land— for each of the third, fourth, and fifth years of the lease, $4 per acre in 2011 dollars; for the sixth year of the lease, $6 per acre in 2011 dollars; and 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.
The Secretary shall assess and collect the fee established under this section. Amounts received by the United States as the fee under this section shall be deposited in the general fund of the Treasury. The Secretary of the Interior may issue regulations to prevent evasion of the fee under this section.