```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1985 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 1985

 To improve the administration of oil and gas leases on Federal land, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 27, 1999

 Mrs. Cubin (for herself and Mr. Skeen) introduced the following bill; 
            which was referred to the Committee on Resources

_______________________________________________________________________

                                 A BILL

 
 To improve the administration of oil and gas leases on Federal land, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Oil and 
Gas Lease Management Improvement Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. No property right.
   TITLE I--STATE OPTION TO REGULATE OIL AND GAS LEASE OPERATIONS ON 
                              FEDERAL LAND

Sec. 101. Transfer of authority.
Sec. 102. Activity following transfer of authority.
          TITLE II--USE OF COST SAVINGS FROM STATE REGULATION

Sec. 201. Compensation for costs.
Sec. 202. Exclusion of costs of preparing planning documents and 
                            analyses.
Sec. 203. Receipt sharing.
               TITLE III--STREAMLINING AND COST REDUCTION

Sec. 301. Applications.
Sec. 302. Timely issuance of decisions.
Sec. 303. Elimination of unwarranted denials and stays.
Sec. 304. Reports.
Sec. 305. Scientific inventory of oil and gas reserves.
                  TITLE IV--FEDERAL ROYALTY CERTAINTY

Sec. 401. Definitions.
Sec. 402. Amendment of Outer Continental Shelf Lands Act.
Sec. 403. Amendment of Mineral Leasing Act.
Sec. 404. Indian land.
                TITLE V--ROYALTY REINVESTMENT IN AMERICA

Sec. 501. Royalty incentive program.
Sec. 502. Marginal well production incentives.
Sec. 503. Suspension of production on oil and gas operations.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) State governments have a long and successful history of 
        regulation of operations to explore for and produce oil and 
        gas; the special role of the States was recognized by Congress 
        in 1935 through its ratification under the Constitution of the 
        Interstate Compact to Conserve Oil and Gas;
            (2) under the guidance of the Interstate Oil and Gas 
        Compact Commission, States have established effective 
        regulation of the oil and natural gas industry and subject 
        their programs to periodic peer review through the Commission;
            (3) it is significantly less expensive for State 
        governments than for the Federal Government to regulate oil and 
        gas lease operations on Federal land;
            (4) significant cost savings could be achieved, with no 
        reduction in environmental protection or in the conservation of 
        oil and gas resources, by having the Federal Government defer 
        to State regulation of oil and gas lease operations on Federal 
        land;
            (5) State governments carry out regulatory oversight on 
        Federal, State, and private land; oil and gas companies 
        operating on Federal land are burdened with the additional cost 
        and time of duplicative oversight by both Federal and State 
        conservation authorities; additional cost savings could be 
        achieved within the private sector by having the Secretary 
        defer to State regulation;
            (6) the Federal Government is presently cast in opposing 
        roles as a mineral owner and regulator; State regulation of oil 
        and gas operations on Federal land would eliminate this 
        conflict of interest;
            (7) it remains the responsibility of the Secretary of the 
        Interior to carry out the Federal policy set forth in the 
        Mining and Minerals Policy Act of 1970 (30 U.S.C. 21a) to 
        foster and encourage private sector enterprise in the 
        development of economically sound and stable domestic mineral 
        industries, and the orderly and economic development of 
        domestic mineral resources and reserves, including oil and gas 
        resources; and
            (8) resource management analyses and surveys conducted 
        under the conservation laws of the United States benefit the 
        public at large and are an expense properly borne by the 
        Federal Government.
    (b) Purposes.--The purposes of this Act are--
            (1) to transfer from the Secretary to each State in which 
        Federal land is present authority to regulate oil and gas 
        operations on leased tracts and related operations as fully as 
        if the operations were occurring on privately owned land;
            (2) to share the costs saved through more efficient State 
        enforcement among State governments and the Federal treasury;
            (3) to prevent the imposition of unwarranted delays and 
        recoupments of Federal administrative costs on Federal oil and 
        gas lessees;
            (4) to effect no change in the administration of Indian 
        land; and
            (5) to ensure that funds deducted from the States' net 
        receipt share are directly tied to administrative costs related 
        to mineral leasing on Federal land.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Application for a permit to drill.--The term 
        ``application for a permit to drill'' means a drilling plan 
        including design, mechanical, and engineering aspects for 
        drilling a well.
            (2) Federal land.--
                    (A) In general.--The term ``Federal land'' means 
                all land and interests in land owned by the United 
                States that are subject to the mineral leasing laws, 
                including mineral resources or mineral estates reserved 
                to the United States in the conveyance of a surface or 
                nonmineral estate.
                    (B) Exclusion.--The term ``Federal land'' does not 
                include--
                            (i) Indian land (as defined in section 3 of 
                        the Federal Oil and Gas Royalty Management Act 
                        of 1982 (30 U.S.C. 1702)); or
                            (ii) submerged land on the outer 
                        Continental Shelf (as defined in section 2 of 
                        the Outer Continental Shelf Lands Act (43 
                        U.S.C. 1331)).
            (3) Oil and gas conservation authority.--The term ``oil and 
        gas conservation authority'' means the agency or agencies in 
        each State responsible for regulating for conservation purposes 
        operations to explore for and produce oil and natural gas.
            (4) Project.--The term ``project'' means an activity by a 
        lessee, an operator, or an operating rights owner to explore 
        for, develop, produce, or transport oil or gas resources.
            (5) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of the Interior, with respect to 
                land under the administrative jurisdiction of the 
                Department of the Interior; and
                    (B) the Secretary of Agriculture, with respect to 
                land under the administrative jurisdiction of the 
                Department of Agriculture.
            (6) Surface use plan of operations.--The term ``surface use 
        plan of operations'' means a plan for surface use, disturbance, 
        and reclamation.

SEC. 4. NO PROPERTY RIGHT.

    Nothing in this Act gives a State a property right or interest in 
any Federal lease or land.

   TITLE I--STATE OPTION TO REGULATE OIL AND GAS LEASE OPERATIONS ON 
                              FEDERAL LAND

SEC. 101. TRANSFER OF AUTHORITY.

    (a) Notification.--Not before the date that is 180 days after the 
date of enactment of this Act, a State may notify the Secretary of its 
intent to accept authority for regulation of operations, as described 
in subparagraphs (A) through (K) of subsection (b)(2), under oil and 
gas leases on Federal land within the State.
    (b) Transfer of Authority.--
            (1) In general.--Effective 180 days after the Secretary 
        receives the State's notice, authority for the regulation of 
        oil and gas leasing operations is transferred from the 
        Secretary to the State.
            (2) Authority included.--The authority transferred under 
        paragraph (1) includes--
                    (A) processing and approving applications for 
                permits to drill, subject to surface use agreements and 
                other terms and conditions determined by the Secretary;
                    (B) production operations;
                    (C) well testing;
                    (D) well completion;
                    (E) well spacing;
                    (F) communization;
                    (G) conversion of a producing well to a water well;
                    (H) well abandonment procedures;
                    (I) inspections;
                    (J) enforcement activities; and
                    (K) site security.
    (c) Retained Authority.--The Secretary shall--
            (1) retain authority over the issuance of leases and the 
        approval of surface use plans of operations and project-level 
        environmental analyses; and
            (2) spend appropriated funds to ensure that timely 
        decisions are made respecting oil and gas leasing, taking into 
        consideration multiple uses of Federal land, socioeconomic and 
        environmental impacts, and the results of consultations with 
        State and local government officials.

SEC. 102. ACTIVITY FOLLOWING TRANSFER OF AUTHORITY.

    (a) Federal Agencies.--Following the transfer of authority, no 
Federal agency shall exercise the authority formerly held by the 
Secretary as to oil and gas lease operations and related operations on 
Federal land.
    (b) State Authority.--
            (1) In general.--Following the transfer of authority, each 
        State shall enforce its own oil and gas conservation laws and 
        requirements pertaining to transferred oil and gas lease 
        operations and related operations with due regard to the 
        national interest in the expedited, environmentally sound 
        development of oil and gas resources in a manner consistent 
        with oil and gas conservation principles.
            (2) Appeals.--Following a transfer of authority under 
        section 101, an appeal of any decision made by a State oil and 
        gas conservation authority shall be made in accordance with 
        State administrative procedures.
    (c) Pending Enforcement Actions.--The Secretary may continue to 
enforce any pending actions respecting acts committed before the date 
on which authority is transferred to a State under section 101 until 
those proceedings are concluded.
    (d) Pending Applications.--
            (1) Transfer to state.--All applications respecting oil and 
        gas lease operations and related operations on Federal land 
        pending before the Secretary on the date on which authority is 
        transferred under section 101 shall be immediately 
transferred to the oil and gas conservation authority of the State in 
which the lease is located.
            (2) Action by the state.--The oil and gas conservation 
        authority shall act on the application in accordance with State 
        laws (including regulations) and requirements.

          TITLE II--USE OF COST SAVINGS FROM STATE REGULATION

SEC. 201. COMPENSATION FOR COSTS.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary shall compensate any State for costs incurred to carry out 
the authorities transferred under section 101.
    (b) Payment Schedule.--Payments shall be made not less frequently 
than every quarter.
    (c) Cost Breakdown Report.--Each State seeking compensation shall 
report to the Secretary a cost breakdown for the authorities 
transferred.
    (d) Limitation on Amount.--
            (1) In general.--Compensation to a State may not exceed 50 
        percent of the Secretary's allocated cost for oil and gas 
        leasing activities under section 35(b) of the Act of February 
        25, 1920 (commonly known as the ``Mineral Leasing Act'') (30 
        U.S.C. 191(b)) for the State for fiscal year 1997.
            (2) Adjustment.--The Secretary shall adjust the maximum 
        level of cost compensation at least once every 2 years to 
        reflect any increases in the Consumer Price Index (all items, 
        United States city average) as prepared by the Department of 
        Labor, using 1997 as the baseline year.

SEC. 202. EXCLUSION OF COSTS OF PREPARING PLANNING DOCUMENTS AND 
              ANALYSES.

    Section 35 of the Act of February 25, 1920 (30 U.S.C. 191(b)) is 
amended by adding at the end the following:
            ``(6) The Secretary shall not include, for the purpose of 
        calculating the deduction under paragraph (1), costs of 
        preparing resource management planning documents and analyses 
        for areas in which mineral leasing is excluded or areas in 
        which the primary activity under review is not mineral leasing 
        and development.''.

SEC. 203. RECEIPT SHARING.

    Section 35(b) of the Act of February 25, 1920 (30 U.S.C. 191(b)) is 
amended by striking ``paid to States'' and inserting ``paid to States 
(other than States that accept a transfer of authority under section 
101 of the Federal Oil and Gas Lease Management Act of 1999)''.

               TITLE III--STREAMLINING AND COST REDUCTION

SEC. 301. APPLICATIONS.

    (a) Limitation on Cost Recovery.--Notwithstanding sections 304 and 
504 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1734, 1764) and section 9701 of title 31, United States Code, the 
Secretary shall not recover the Secretary's costs with respect to 
applications and other documents relating to oil and gas leases.
    (b) Completion of Planning Documents and Analyses.--
            (1) In general.--The Secretary shall complete any resource 
        management planning documents and analyses not later than 90 
        days after receiving any offer, application, or request for 
        which a planning document or analysis is required to be 
        prepared.
            (2) Preparation by applicant or lessee.--If the Secretary 
        is unable to complete the document or analysis within the time 
        prescribed by paragraph (1), the Secretary shall notify the 
        applicant or lessee of the opportunity to prepare the required 
        document or analysis for the agency's review and use in 
        decisionmaking.
    (c) Reimbursement for Costs of NEPA Analyses, Documentation, and 
Studies.--If--
            (1) adequate funding to enable the Secretary to timely 
        prepare a project-level analysis required under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with 
        respect to an oil or gas lease is not appropriated; and
            (2) the lessee, operator, or operating rights owner 
        voluntarily pays for the cost of the required analysis, 
        documentation, or related study;
the Secretary shall reimburse the lessee, operator, or operating rights 
owner for its costs through royalty credits attributable to the lease, 
unit agreement, or project area.

SEC. 302. TIMELY ISSUANCE OF DECISIONS.

    (a) In General.--The Secretary shall ensure the timely issuance of 
Federal agency decisions respecting oil and gas leasing and operations 
on Federal land.
    (b) Offer To Lease.--
            (1) Deadline.--The Secretary shall accept or reject an 
        offer to lease not later than 90 days after the filing of the 
        offer.
            (2) Failure to meet deadline.--If an offer is not acted 
        upon within that time, the offer shall be deemed to have been 
        accepted.
    (c) Application for Permit To Drill.--
            (1) Deadline.--The Secretary and a State that has accepted 
        a transfer of authority under section 101 shall approve or 
        disapprove an application for permit to drill not later than 30 
        days after receiving a complete application.
            (2) Failure to meet deadline.--If the application is not 
        acted on within the time prescribed by paragraph (1), the 
        application shall be deemed to have been approved.
    (d) Surface Use Plan of Operations.--The Secretary shall approve or 
disapprove a surface use plan of operations not later than 30 days 
after receipt of a complete plan.
    (e) Administrative Appeals.--
            (1) Deadline.--From the time that a Federal oil and gas 
        lessee or operator files a notice of administrative appeal of a 
        decision or order of an officer or employee of the Department 
        of the Interior or the Forest Service respecting a Federal oil 
        and gas Federal lease, the Secretary shall have 2 years in 
        which to issue a final decision in the appeal.
            (2) Failure to meet deadline.--If no final decision has 
        been issued within the time prescribed by paragraph (1), the 
        appeal shall be deemed to have been granted.

SEC. 303. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.

    (a) In General.--The Secretary shall ensure that unwarranted 
denials and stays of lease issuance and unwarranted restrictions on 
lease operations are eliminated from the administration of oil and gas 
leasing on Federal land.
    (b) Land Designated for Multiple Use.--
            (1) In general.--Land designated as available for multiple 
        use under Bureau of Land Management resource management plans 
        and Forest Service leasing analyses shall be available for oil 
        and gas leasing without lease stipulations more stringent than 
        restrictions on surface use and operations imposed under the 
        laws (including regulations) of the State oil and gas 
        conservation authority unless the Secretary includes in the 
        decision approving the management plan or leasing analysis a 
        written explanation why more stringent stipulations are 
        warranted.
            (2) Appeal.--Any decision to require a more stringent 
        stipulation shall be administratively appealable and, following 
        a final agency decision, shall be subject to judicial review.
    (c) Rejection of Offer To Lease.--
            (1) In general.--If the Secretary rejects an offer to lease 
        on the ground that the land is unavailable for leasing, the 
        Secretary shall provide a written, detailed explanation of the 
        reasons the land is unavailable for leasing.
            (2) Previous resource management decision.--If the 
        determination of unavailability is based on a previous resource 
        management decision, the explanation shall include a careful 
        assessment of whether the reasons underlying the previous 
        decision are still persuasive.
            (3) Segregation of available land from unavailable land.--
        The Secretary may not reject an offer to lease land available 
        for leasing on the ground that the offer includes land 
        unavailable for leasing, and the Secretary shall segregate 
        available land from unavailable land, on the offeror's request 
        following notice by the Secretary, before acting on the offer 
        to lease.
    (d) Disapproval or Required Modification of Surface Use Plans of 
Operations and Application for Permit To Drill.--The Secretary shall 
provide a written, detailed explanation of the reasons for disapproving 
or requiring modifications of any surface use plan of operations or 
application for permit to drill.
    (e) Effectiveness of Decision.--A decision of the Secretary 
respecting an oil and gas lease shall be effective pending 
administrative appeal to the appropriate office within the Department 
of the Interior or the Department of Agriculture unless that office 
grants a stay in response to a petition satisfying the criteria for a 
stay established by section 4.21(b) of title 43, Code of Federal 
Regulations (or any successor regulation).

SEC. 304. REPORTS.

    (a) In General.--Not later than March 31, 2000, the Secretaries 
shall jointly submit to the President of the Senate and the Speaker of 
the House of Representatives a report explaining the most efficient 
means of eliminating overlapping jurisdiction, duplication of effort, 
and inconsistent policymaking and policy implementation as between the 
Bureau of Land Management and the Forest Service.
    (b) Recommendations.--The report shall include recommendations on 
statutory changes needed to implement the report's conclusions.

SEC. 305. SCIENTIFIC INVENTORY OF OIL AND GAS RESERVES.

    (a) In General.--Not later than March 31, 2000, the Secretary of 
the Interior, in consultation with the Director of the United States 
Geological Survey, shall publish, through notice in the Federal 
Register, a science-based national inventory of the oil and gas 
reserves and potential resources underlying Federal land and the outer 
Continental Shelf.
    (b) Contents.--The inventory shall--
            (1) indicate what percentage of the oil and gas reserves 
        and resources is currently available for leasing and 
        development; and
            (2) specify the percentages of the reserves and resources 
        that are on--
                    (A) land that is open for leasing as of the date of 
                enactment of this Act that has never been leased;
                    (B) land that is open for leasing or development 
                subject to no surface occupancy stipulations; and
                    (C) land that is open for leasing or development 
                subject to other lease stipulations that have 
                significantly impeded or prevented, or are likely to 
                significantly impede or prevent, development; and
            (3) indicate the percentage of oil and gas resources that 
        are not available for leasing or are withdrawn from leasing.
    (c) Public Comment.--
            (1) In general.--The Secretary of the Interior shall invite 
        public comment on the inventory to be filed not later than 
        September 30, 2000.
            (2) Resource management decisions.--Specifically, the 
        Secretary of the Interior shall invite public comment on the 
        effect of Federal resource management decisions on past and 
        future oil and gas development.
    (d) Report.--
            (1) In general.--Not later than March 31, 2001, the 
        Secretary of the Interior shall submit to the President of the 
        Senate and the Speaker of the House of Representatives a report 
        comprised of the revised inventory and responses to the public 
        comments.
            (2) Contents.--The report shall specifically indicate what 
        steps the Secretaries believe are necessary to increase the 
        percentage of land open for development of oil and gas 
        resources.

                  TITLE IV--FEDERAL ROYALTY CERTAINTY

SEC. 401. DEFINITIONS.

    In this title:
            (1) Marketable condition.--The term ``marketable 
        condition'' means lease production that is sufficiently free 
from impurities and otherwise in a condition that the production will 
be accepted by a purchaser under a sales contract typical for the field 
or area.
            (2) Reasonable commercial rate.--
                    (A) In general.--The term ``reasonable commercial 
                rate'' means--
                            (i) in the case of an arm's-length 
                        contract, the actual cost incurred by the 
                        lessee; or
                            (ii) in the case of a non-arm's-length 
                        contract--
                                    (I) the rate charged in a contract 
                                for similar services in the same area 
                                between parties with opposing economic 
                                interests; or
                                    (II) if there are no arm's-length 
                                contracts for similar services in the 
                                same area, the just and reasonable rate 
                                for the transportation service rendered 
                                by the lessee or lessee's affiliate.
                    (B) Disputes.--Disputes between the Secretary and a 
                lessee over what constitutes a just and reasonable rate 
                for such service shall be resolved by the Federal 
                Energy Regulatory Commission.

SEC. 402. AMENDMENT OF OUTER CONTINENTAL SHELF LANDS ACT.

    Section 8(b)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(b)(3)) is amended by striking the semicolon at the end and adding 
the following:
    ``Provided: That if the payment is in value or amount, the royalty 
due in value shall be based on the value of oil or gas production at 
the lease in marketable condition, and the royalty due in amount shall 
be based on the royalty share of production at the lease; if the 
payment in value or amount is calculated from a point away from the 
lease, the payment shall be adjusted for quality and location 
differentials, and the lessee shall be allowed reimbursements at a 
reasonable commercial rate for transportation (including transportation 
to the point where the production is put in marketable condition), 
marketing, processing, and other services beyond the lease through the 
point of sale, other disposition, or delivery;''.

SEC. 403. AMENDMENT OF MINERAL LEASING ACT.

    Section 17(c) of the Act of February 25, 1920 (30 U.S.C. 226(c)) 
(commonly known as the ``Mineral Leasing Act''), is amended by adding 
at the end the following:
            ``(3) Royalty due in value.--
                    ``(A) In general.--Royalty due in value shall be 
                based on the value of oil or gas production at the 
                lease in marketable condition, and the royalty due in 
                amount shall be based on the royalty share of 
                production at the lease.
                    ``(B) Calculation of value or amount from a point 
                away from a lease.--If the payment in value or amount 
                is calculated from a point away from the lease--
                            ``(i) the payment shall be adjusted for 
                        quality and location differentials; and
                            ``(ii) the lessee shall be allowed 
                        reimbursements at a reasonable commercial rate 
                        for transportation (including transportation to 
                        the point where the production is put in 
                        marketable condition), marketing, processing, 
                        and other services beyond the lease through the 
                        point of sale, other disposition, or 
                        delivery;''.

SEC. 404. INDIAN LAND.

    This title shall not apply with respect to Indian land.

                TITLE V--ROYALTY REINVESTMENT IN AMERICA

SEC. 501. ROYALTY INCENTIVE PROGRAM.

    (a) In General.--To encourage exploration and development 
expenditures on Federal land and the Outer Continental Shelf for the 
development of oil and gas resources when the cash price of West Texas 
Intermediate crude oil, as posted on the Dow Jones Commodities Index 
chart is less than $18 per barrel for 90 consecutive pricing days or 
when natural gas prices as delivered at Henry Hub, Louisiana, are less 
than $2.30 per million British thermal units for 90 consecutive days, 
the Secretary shall allow a credit against the payment of royalties on 
Federal oil production and gas production, respectively, in an amount 
equal to 20 percent of the capital expenditures made on exploration and 
development activities on Federal oil and gas leases.
    (b) No Crediting Against Onshore Federal Royalty Obligations.--In 
no case shall such capital expenditures made on Outer Continental Shelf 
leases be credited against onshore Federal royalty obligations.

SEC. 502. MARGINAL WELL PRODUCTION INCENTIVES.

    To enhance the economics of marginal oil and gas production by 
increasing the ultimate recovery from marginal wells when the cash 
price of West Texas Intermediate crude oil, as posted on the Dow Jones 
Commodities Index chart is less than $18 per barrel for 90 consecutive 
pricing days or when natural gas prices are delivered at Henry Hub, 
Louisiana, are less than $2.30 per million British thermal units for 90 
consecutive days, the Secretary shall reduce the royalty rate as 
production declines for--
            (1) onshore oil wells producing less than 30 barrels per 
        day;
            (2) onshore gas wells producing less than 120 million 
        British thermal units per day;
            (3) offshore oil well producing less than 300 barrels of 
        oil per day; and
            (4) offshore gas wells producing less than 1,200 million 
        British thermal units per day.

SEC. 503. SUSPENSION OF PRODUCTION ON OIL AND GAS OPERATIONS.

    (a) In General.--Any person operating an oil well under a lease 
issued under the Act of February 25, 1920 (commonly known as the 
``Mineral Leasing Act'') (30 U.S.C. 181 et seq.) or the Mineral Leasing 
Act for Acquired Lands (30 U.S.C. 351 et seq.) may submit a notice to 
the Secretary of the Interior of suspension of operation and production 
at the well.
    (b) Production Quantities Not a Factor.--A notice under subsection 
(a) may be submitted without regard to per day production quantities at 
the well and without regard to the requirements of subsection (a) of 
section 3103.4-4 of title 43 of the Code of Federal Regulations (or any 
successor regulation) respecting the granting of such relief, except 
that the notice shall be submitted to an office in the Department of 
the Interior designated by the Secretary of the Interior.
    (c) Period of Relief.--On submission of a notice under subsection 
(a) for an oil well, the operator of the well may suspend operation and 
production at the well for a period beginning on the date of submission 
of the notice and ending on the later of--
            (1) the date that is 2 years after the date on which the 
        suspension of operation and production commences; or
            (2) the date on which the cash price of West Texas 
        Intermediate crude oil, as posted on the Dow Jones Commodities 
        Index chart is greater than $15 per barrel for 90 consecutive 
        pricing days.
                                 <all>
```