Sec. 3141. Production incentive fee
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/bill/114/s/2089/pcs/section-3141·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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. 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— in effect on the date on which final regulations are issued pursuant to this subsection; or executed after that date. 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— in the case of onshore land— for each of the first 3 years of the lease, $4 per acre (in 2015 dollars); for the fourth year of the lease, $6 per acre (in 2015 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 2015 dollars); and in the case of offshore land— for each of the third, fourth, and fifth years of the lease, $4 per acre (in 2015 dollars); for the sixth year of the lease, $6 per acre (in 2015 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 2015 dollars). The Secretary shall assess and collect the fee established under this section. 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. The Secretary may issue regulations to prevent evasion of the fee under this section.