II 

114TH CONGRESS 

1ST SESSION S. 1280 

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. 

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 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 ‘‘United States Explo5 ration on Idle Tracts Act’’ or the ‘‘USE IT Act’’. 

6 SEC. 2. PRODUCTION INCENTIVE FEE. 

7 (a) ESTABLISHMENT.— 


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•S 1280 IS

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

2 after the date of enactment of this Act, the Sec3 retary of the Interior (referred to in this section as 

4 the ‘‘Secretary’’) shall issue regulations to establish 

5 an annual production incentive fee with respect to 

6 Federal onshore and offshore land that is subject to 

7 a lease for production of oil or natural gas under 

8 which production is not occurring. 

9 (2) APPLICATION.—The annual production in10 centive fee described in paragraph (1) shall apply 

11 with respect to land that is subject to a lease de12 scribed in paragraph (1) that is— 

13 (A) in effect on the date on which final 

14 regulations are issued pursuant to this sub15 section; or 

16 (B) executed after that date. 

17 (b) AMOUNT.—For each acre of land from which oil 

18 or natural gas is produced for less than 90 days in a cal19 endar year, the amount of the fee shall be— 

20 (1) in the case of onshore land— 

21 (A) for each of the first 3 years of the 

22 lease, $4 per acre (in 2015 dollars); 

23 (B) for the fourth year of the lease, $6 per 

24 acre (in 2015 dollars); and 


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•S 1280 IS

1 (C) for the fifth year of the lease and each 

2 year thereafter for which the lease is otherwise 

3 in effect, $8 per acre (in 2015 dollars); and 

4 (2) in the case of offshore land— 

5 (A) for each of the third, fourth, and fifth 

6 years of the lease, $4 per acre (in 2015 dol7 lars); 

8 (B) for the sixth year of the lease, $6 per 

9 acre (in 2015 dollars); and 

10 (C) for the seventh year of the lease and 

11 each year thereafter for which the lease is oth12 erwise in effect, $8 per acre (in 2015 dollars). 

13 (c) ASSESSMENT AND COLLECTION.—The Secretary 

14 shall assess and collect the fee established under this sec15 tion. 

16 (d) DEPOSIT.—Amounts received by the Secretary 

17 for the fee under this section shall be reserved for the Sec18 retary for expenditures on inspection, enforcement, and 

19 permitting relating to oil and gas. 

20 (e) REGULATIONS.—The Secretary may issue regula21 tions to prevent evasion of the fee under this section. 

Æ 


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