II 

117TH CONGRESS 

2D SESSION S. 5217 

To promote the diligent development of Federal oil and gas leases, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 8, 2022 

Mr. MENENDEZ (for himself and Mr. REED) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To promote the diligent development of Federal oil and gas 

leases, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Use it or Lose it Act 

5 of 2022’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) COVERED LEASE.—The term ‘‘covered 

9 lease’’ means a lease that authorizes the exploration 

10 for, or production of, oil or natural gas under— 


pbinns on DSKJLVW7X2PROD with $$_JOB
2 

•S 5217 IS

1 (A) section 17 of the Mineral Leasing Act 

2 (30 U.S.C. 226); or 

3 (B) the Outer Continental Shelf Lands Act 

4 (43 U.S.C. 1331 et seq.). 

5 (2) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of the Interior. 

7 SEC. 3. DILIGENT DEVELOPMENT OF FEDERAL OIL AND 

8 GAS LEASES. 

9 (a) CLARIFICATION OF EXISTING LAW.—Each cov10 ered lease shall be diligently developed by the person hold11 ing the covered lease to ensure timely production from the 

12 covered lease. 

13 (b) REGULATIONS.—Not later than 180 days after 

14 the date of enactment of this Act, the Secretary shall pro15 mulgate regulations with respect to covered leases that— 

16 (1) establish requirements and benchmarks for 

17 oil and gas development that will ensure that lease18 holders— 

19 (A) diligently develop each covered lease; 

20 and 

21 (B) to the maximum extent practicable, 

22 produce oil and gas from each covered lease 

23 during the primary term of the covered lease; 

24 (2) require each leaseholder to submit to the 

25 Secretary a diligent development plan describing how 


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•S 5217 IS

1 the lessee will meet the benchmarks established 

2 under paragraph (1); and 

3 (3) in establishing requirements under para4 graphs (1) and (2), take into account the differences 

5 in development conditions and circumstances in the 

6 areas to be developed. 

7 SEC. 4. NONPRODUCING LEASE FEE. 

8 (a) DEFINITION OF NONPRODUCING LEASE.—In this 

9 section, the term ‘‘nonproducing lease’’ means a covered 

10 lease under which no oil or natural gas has been extracted 

11 during the applicable year, as determined by the Sec12 retary. 

13 (b) AUTHORIZATION OF NONPRODUCING LEASE

14 FEE.—The Secretary shall charge to each person who 

15 holds a nonproducing lease an annual, nonrefundable fee, 

16 in an amount determined by the Secretary under sub17 section (c), for each nonproducing lease held by the per18 son. 

19 (c) AMOUNT.— 

20 (1) IN GENERAL.—Not later than 180 days 

21 after the date of enactment of this Act, the Sec22 retary shall establish the fee authorized under sub23 section (b) in an amount determined by the Sec24 retary to be sufficient to adequately incentivize the 


pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•S 5217 IS

1 use of covered leases, but not less than $10 per acre 

2 per year for each nonproducing lease. 

3 (2) INCREASE.—The Secretary shall by regula4 tion, at least once every 5 years, adjust the amount 

5 of the fee established under paragraph (1) to reflect 

6 any increase in inflation. 

7 (d) DEPOSIT.—Amounts collected as fees authorized 

8 under subsection (b) shall be deposited in the general fund 

9 of the Treasury. 

Æ 


pbinns on DSKJLVW7X2PROD with $$_JOB