I 
110TH CONGRESS 
1ST SESSION H. R. 1133 
To provide for the energy independence of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 16, 2007 
Ms. BERKLEY introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Nat-
ural Resources, Energy and Commerce, and Science and Technology, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To provide for the energy independence of the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Freedom through Re-
newable Energy Expansion (FREE) Act’’. 
SEC. 2. REPEAL OF NUCLEAR SUBSIDIES. 
(a) 
NEXT
GENERATION
NUCLEAR
PLANT 
PROJECT.—Subtitle C of title VI of the Energy Policy Act 
of 2005 (42 U.S.C. 16021 et seq.) and the items relating 
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thereto in the table of contents in section 1(b) of that Act 
are repealed. 
(b) STANDBY SUPPORT
FOR CERTAIN NUCLEAR 
PLANT DELAYS.—Section 638 of the Energy Policy Act 
of 2005 (42 U.S.C. 16014) and the item relating thereto 
in the table of contents in section 1(b) of that Act are 
repealed. 
(c) REPEAL OF CREDIT FOR PRODUCTION FROM AD-
VANCED NUCLEAR POWER FACILITIES.— 
(1) IN GENERAL.—Subparagraph (B) of section 
45J(d)(1) of the Internal Revenue Code of 1986 (re-
lating to advanced nuclear power facility) is amend-
ed by striking ‘‘January 1, 2021’’ and inserting ‘‘the 
date of the enactment of the Freedom through Re-
newable Energy Expansion (FREE) Act’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
SEC. 3. REPEAL OF CERTAIN TAX SUBSIDIES FOR THE OIL 
AND GAS INDUSTRY. 
(a) REPEAL OF ELECTION TO EXPENSE CERTAIN 
REFINERIES.— 
(1) IN GENERAL.—Subparagraph (B) of section 
179C(c)(1) of the Internal Revenue Code of 1986 
(relating to qualified refinery property) is amended 
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by striking ‘‘January 1, 2012’’ and inserting ‘‘the 
date of the enactment of the Freedom through Re-
newable Energy Expansion (FREE) Act’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
(b) REPEAL OF TREATMENT OF NATURAL GAS DIS-
TRIBUTION LINES AS 15-YEAR PROPERTY.— 
(1) IN
GENERAL.—Clause (viii) of section 
168(e)(3)(E) of such Code (relating to 15-year prop-
erty) is amended by striking ‘‘January 1, 2011’’ and 
inserting ‘‘the Freedom through Renewable Energy 
Expansion (FREE) Act’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
(c) REPEAL
OF TREATMENT
OF NATURAL GAS 
GATHERING LINES AS 7-YEAR PROPERTY.— 
(1) IN
GENERAL.—Clause (iv) of section 
168(e)(3)(C) of such Code (relating to 7-year prop-
erty) is amended by inserting ‘‘and which is placed 
in service before the date of the enactment of the 
Freedom through Renewable Energy Expansion 
(FREE) Act’’ after ‘‘April 11, 2005,’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to property placed in 
service after the date of the enactment of this Act. 
(d) REPEAL
OF NEW RULE
FOR DETERMINING 
SMALL REFINER EXCEPTION TO OIL DEPLETION DEDUC-
TION.— 
(1) IN
GENERAL.—Paragraph (4) of section 
613A(d) of such Code (relating to certain refiners 
excluded) is amended to read as follows: 
‘‘(4) CERTAIN
REFINERS
EXCLUDED.—If the 
taxpayer or a related person engages in the refining 
of crude oil, subsection (c) shall not apply to such 
taxpayer if on any day during the taxable year the 
refinery runs of the taxpayer and such person exceed 
50,000 barrels.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(e) REPEAL OF AMORTIZATION OF GEOLOGICAL AND 
GEOPHYSICAL EXPENDITURES.— 
(1) IN GENERAL.—Section 167 of such Code 
(relating to depreciation) is amended by striking 
subsection (h) and redesignating subsection (i) as 
subsection (h). 
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(2) 
CONFORMING
AMENDMENT.—Section 
263A(c)(3) of such Code is amended by striking 
‘‘167(h),’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after the date of the enactment of this Act. 
SEC. 4. REPEAL OF CERTAIN PROVISIONS OF THE ENERGY 
POLICY ACT OF 2005 AND OTHER LAWS PRO-
VIDING INCENTIVES FOR OIL AND GAS PRO-
DUCTION FROM FEDERAL LANDS. 
(a) REPEALS.—The following provisions of the En-
ergy Policy Act of 2005, and the items relating thereto 
in the table of contents in section 1(b) of that Act, are 
repealed: 
(1) Section 343 (relating to marginal property 
production incentives). 
(2) Section 344 (relating to incentives for nat-
ural gas production from deep wells in the shallow 
waters of the Gulf of Mexico). 
(3) Section 345 (relating to royalty relief for 
deep water production). 
(4) Section 357 (relating to comprehensive in-
ventory of OCS oil and natural gas resources). 
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(5) Section 362 (relating to management of 
Federal oil and gas leasing programs, including ex-
pediting leases and permit applications). 
(6) Section 965 (relating to oil and gas re-
search programs). 
(7) Section 966 (relating to low-volume oil and 
gas reservoir research program). 
(8) Subtitle J of title IX (relating to ultra-deep-
water and unconventional natural gas and other pe-
troleum resources). 
(b) REPEAL OF ALASKA OFFSHORE ROYALTY SUS-
PENSION.—Section 8(a)(3)(B) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended 
by striking ‘‘and in the Planning Areas offshore Alaska’’. 
(c) REPEAL OF ROYALTY SUSPENSION WITH RE-
SPECT TO NATIONAL PETROLEUM RESERVE IN ALAS-
KA.—Section 107 of the Naval Petroleum Reserves Pro-
duction Act of 1976 (as amended by section 347(b)(11) 
of the Energy Policy Act of 2005 (119 Stat. 706)) is 
amended by repealing subsection (k). 
(d) CONFORMING AMENDMENT.—Section 961(c) of 
the Energy Policy Act of 2005 (42 U.S.C. 16291(c)) is 
amended by striking paragraph (3) and redesignating 
paragraph (4) as paragraph (3). 
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SEC. 5. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 
PROVISIONS. 
The Secretary of the Interior shall agree to a request 
by any lessee to amend any lease issued for any Central 
and Western Gulf of Mexico tract during the period of 
January 1, 1998, through December 31, 1999, to incor-
porate price thresholds applicable to royalty suspension 
provisions, that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(C)). Any amended lease shall impose 
the new or revised price thresholds effective October 1, 
2006. Existing lease provisions shall prevail through Sep-
tember 30, 2006. 
SEC. 6. CLARIFICATION OF AUTHORITY TO IMPOSE PRICE 
THRESHOLDS FOR CERTAIN LEASE SALES. 
Congress reaffirms the authority of the Secretary of 
the Interior under section 8(a)(1)(H) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)) to 
vary, based on the price of production from a lease, the 
suspension of royalties under any lease subject to section 
304 of the Outer Continental Shelf Deep Water Royalty 
Relief Act (Public Law 104–58; 43 U.S.C. 1337 note). 
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SEC. 7. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER 
OF LEASES; CONSERVATION OF RESOURCES 
FEES. 
(a) ISSUANCE OF NEW LEASES.— 
(1) IN
GENERAL.—The Secretary shall not 
issue any new lease that authorizes the production 
of oil or natural gas in the Gulf of Mexico under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) to a person described in paragraph (2) un-
less— 
(A) the person has renegotiated each cov-
ered lease with respect to which the person is 
a lessee, to modify the payment responsibilities 
of the person to include price thresholds that 
are equal to or less than the price thresholds 
described in clauses (v) through (vii) of section 
8(a)(3)(C) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)(C)); or 
(B) the person has— 
(i) paid all fees established by the 
Secretary under subsection (b) that are 
due with respect to each covered lease for 
which the person is a lessee; or 
(ii) entered into an agreement with 
the Secretary under which the person is 
obligated to pay such fees. 
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(2) PERSONS DESCRIBED.—A person referred 
to in paragraph (1) is a person that— 
(A) is a lessee that— 
(i) holds a covered lease on the date 
on which the Secretary considers the 
issuance of the new lease; or 
(ii) was issued a covered lease before 
the date of enactment of this Act, but 
transferred the covered lease to another 
person or entity (including a subsidiary or 
affiliate of the lessee) after the date of en-
actment of this Act; or 
(B) any other person or entity who has 
any direct or indirect interest in, or who derives 
any benefit from, a covered lease; 
(3) MULTIPLE LESSEES.— 
(A) IN GENERAL.—For purposes of para-
graph (1), if there are multiple lessees that own 
a share of a covered lease, the Secretary may 
implement separate agreements with any lessee 
with a share of the covered lease that modifies 
the payment responsibilities with respect to the 
share of the lessee to include price thresholds 
that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of 
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section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 
(B) TREATMENT OF SHARE AS COVERED 
LEASE.—Beginning on the effective date of an 
agreement under subparagraph (A), any share 
subject to the agreement shall not constitute a 
covered lease with respect to any lessees that 
entered into the agreement. 
(b) CONSERVATION OF RESOURCES FEES.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of 
the Interior by regulation shall establish— 
(A) a conservation of resources fee for pro-
ducing Federal oil and gas leases in the Gulf of 
Mexico; and 
(B) a conservation of resources fee for 
nonproducing Federal oil and gas leases in the 
Gulf of Mexico. 
(2) PRODUCING LEASE FEE TERMS.—The fee 
under paragraph (1)(A)— 
(A) subject to subparagraph (C), shall 
apply to covered leases that are producing 
leases; 
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(B) shall be set at $9 per barrel for oil and 
$1.25 per million Btu for gas, respectively, in 
2005 dollars; and 
(C) shall apply only to production of oil or 
gas occurring— 
(i) in any calendar year in which the 
arithmetic average of the daily closing 
prices for light sweet crude oil on the New 
York Mercantile Exchange (NYMEX) ex-
ceeds $34.73 per barrel for oil and $4.34 
per million Btu for gas in 2005 dollars; 
and 
(ii) on or after October 1, 2006. 
(3) NONPRODUCING LEASE FEE TERMS.—The 
fee under paragraph (1)(B)— 
(A) subject to subparagraph (C), shall 
apply to leases that are nonproducing leases; 
(B) shall be set at $3.75 per acre per year 
in 2005 dollars; and 
(C) shall apply on and after October 1, 
2006. 
(4) TREATMENT OF RECEIPTS.—Amounts re-
ceived by the United States as fees under this sub-
section shall be treated as offsetting receipts. 
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(c) TRANSFERS.—A lessee or any other person who 
has any direct or indirect interest in, or who derives a 
benefit from, a lease shall not be eligible to obtain by sale 
or other transfer (including through a swap, spinoff, serv-
icing, or other agreement) any covered lease, the economic 
benefit of any covered lease, or any other lease for the 
production of oil or natural gas in the Gulf of Mexico 
under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.), unless— 
(1) the lessee or other person has— 
(A) renegotiated all covered leases of the 
lessee or other person; and 
(B) entered into an agreement with the 
Secretary to modify the terms of all covered 
leases of the lessee or other person to include 
limitations on royalty relief based on market 
prices that are equal to or less than the price 
thresholds described in clauses (v) through (vii) 
of section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); or 
(2) the lessee or other person has— 
(A) paid all fees established by the Sec-
retary under subsection (b) that are due with 
respect to each covered lease for which the per-
son is a lessee; or 
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