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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4515 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 4515

To promote natural gas production from the abundant natural gas hydrate 
resources on the outer Continental Shelf and Federal lands in Alaska by 
         providing royalty incentives, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2004

  Mr. Pombo introduced the following bill; which was referred to the 
                         Committee on Resources

_______________________________________________________________________

                                 A BILL

 
To promote natural gas production from the abundant natural gas hydrate 
resources on the outer Continental Shelf and Federal lands in Alaska by 
         providing royalty incentives, 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. GAS HYDRATE PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote natural gas 
production from the abundant natural gas hydrate resources on the outer 
Continental Shelf and Federal lands in Alaska by providing royalty 
incentives.
    (b) Suspension of Royalties.--
            (1) In general.--The Secretary of the Interior shall grant 
        royalty relief for natural gas produced from gas hydrate 
        resources under any lease issued under the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1331 et seq.), and under any oil and 
        gas lease issued for onshore Federal lands in Alaska, if the 
        lease (eligible lease) is issued prior to January 1, 2016, and 
        production of natural gas from the gas hydrate resources 
        commences prior to January 1, 2018.
            (2) Amount of relief.--The Secretary shall grant royalty 
        relief to an eligible lease as a suspension volume of at least 
        50 billion cubic feet of natural gas produced from gas hydrate 
        resources per nine square mile leased tract, in addition to any 
        other royalty relief provisions applicable to the eligible 
        lease not specifically granting a gas hydrate production 
        incentive. The minimum suspension volume for leased tracts that 
        are smaller or larger than nine square miles shall be adjusted 
        on a proportional basis. For purposes of this section, the term 
        ``gas hydrate resources'' includes both the natural gas content 
        of the gas hydrates within the hydrate stability zone and the 
        free natural gas trapped by and beneath the hydrate stability 
        zone.
    (c) Application to Existing Leases.--Any relief granted under the 
authority of this section shall fully apply to leases in existence on 
the date of the enactment of this Act.
    (d) Rulemakings.--The Secretary shall complete any rulemakings 
implementing this section within 365 days of the date of the enactment 
of this Act.
                                 <all>
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