II 

112TH CONGRESS 

1ST SESSION S. 600 

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

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 16, 2011 

Mr. MENENDEZ (for himself, Mr. SCHUMER, Mr. NELSON of Florida, Mr. 

WHITEHOUSE, Mr. DURBIN, Mr. FRANKEN, and Mr. MERKLEY) 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 2011’’. 

6 SEC. 2. DILIGENT DEVELOPMENT OF FEDERAL OIL AND 

7 GAS LEASES. 

8 (a) CLARIFICATION OF EXISTING LAW.—Each lease 

9 that authorizes the exploration for or production of oil or 


rfrederick on DSKD9S0YB1PROD with BILLS
2 

•S 600 IS

1 natural gas under a provision of law described in sub2 section (b) shall be diligently developed by the person hold3 ing the lease in order to ensure timely production from 

4 the lease. 

5 (b) COVERED PROVISIONS.—Subsection (a) shall 

6 apply to— 

7 (1) section 17 of the Mineral Leasing Act (30 

8 U.S.C. 226); and 

9 (2) the Outer Continental Shelf Lands Act (43 

10 U.S.C. 1331 et seq.). 

11 SEC. 3. NONPRODUCING LEASE FEE. 

12 (a) ONSHORE OIL AND GAS LEASES.—Section 17 of 

13 the Mineral Leasing Act (30 U.S.C. 226) is amended by 

14 adding at the end the following: 

15 ‘‘(q) NONPRODUCING LEASE FEE.—In the case of 

16 any lease for oil or gas issued on or after the date of enact17 ment of this subsection, as a condition of the lease, the 

18 Secretary shall require the lessee to pay an annual fee of 

19 $4 per acre on the acres covered by the lease if production 

20 is not occurring.’’. 

21 (b) OUTER CONTINENTAL SHELF OIL AND GAS

22 LEASES.—Section 8 of the Outer Continental Shelf Lands 

23 Act (43 U.S.C. 1337(d)) is amended— 

24 (1) by striking ‘‘(d) No bid’’ and inserting the 

25 following: 


rfrederick on DSKD9S0YB1PROD with BILLS
3 

•S 600 IS

1 ‘‘(d) DUE DILIGENCE.— 

2 ‘‘(1) IN GENERAL.—No bid’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(2) NONPRODUCING LEASE FEE.—In the case 

5 of any lease for oil or gas issued on or after the date 

6 of enactment of this paragraph, as a condition of the 

7 lease, the Secretary shall require the lessee to pay 

8 an annual fee of $4 per acre on the acres covered 

9 by the lease if production is not occurring.’’. 

10 SEC. 4. REGULATIONS. 

11 In the case of leases covered by this Act and the 

12 amendments made by this Act, not later than 180 days 

13 after the date of enactment of this Act, the Secretary of 

14 the Interior shall issue regulations that— 

15 (1) set forth requirements and benchmarks for 

16 oil and gas development that will ensure that lease17 holders— 

18 (A) diligently develop each lease; and 

19 (B) to the maximum extent practicable, 

20 produce oil and gas from each lease during the 

21 primary term of the lease; 

22 (2) require each leaseholder to submit to the 

23 Secretary a diligent development plan describing how 

24 the lessee will meet the benchmarks; 


rfrederick on DSKD9S0YB1PROD with BILLS
4 

•S 600 IS

1 (3) in establishing requirements under para2 graphs (1) and (2), take into account the differences 

3 in development conditions and circumstances in the 

4 areas to be developed; and 

5 (4) implement the fee requirements established 

6 by the amendments made by section 3. 

Æ 


rfrederick on DSKD9S0YB1PROD with BILLS