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(4) LIMITATION.—The Secretary may place lim-
itations on the suspension of royalty relief granted
based on market price.
(c) APPLICATION.—This section shall apply to any el-
igible lease issued before, on, or after the date of enact-
ment of this Act.
(d) RULEMAKINGS.—The Secretary shall complete
any rulemakings implementing this section within 1 year
after the date of enactment of this Act.
(e) GAS HYDRATE RESOURCES DEFINED.—In this
section, the term ‘‘gas hydrate resources’’ includes both
the natural gas content of gas hydrates within the hydrate
stability zone and free natural gas trapped by and beneath
the hydrate stability zone.
SEC. 2016. ONSHORE DEEP GAS PRODUCTION INCENTIVE.
(a) PURPOSE.—The purpose of this section is to pro-
mote natural gas production from the abundant onshore
deep gas resources on Federal lands by providing royalty
incentives.
(b) SUSPENSION OF ROYALTIES.—
(1) IN GENERAL.—The Secretary shall grant
royalty relief in accordance with this section for nat-
ural gas produced from deep wells spudded after the
date of enactment of this Act under any onshore
Federal oil and gas lease.
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(2) AMOUNT OF RELIEF.—The Secretary shall
grant royalty relief under this section as a suspen-
sion volume determined by the Secretary in an
amount necessary to maximize production of natural
gas volumes. The maximum suspension volume shall
be 50 billion cubic feet of natural gas per lease.
Such royalty suspension volume shall be applied be-
ginning with the first dollar of royalty obligation for
production on or after the date of enactment of this
Act.
(3) LIMITATION.—The Secretary may place lim-
itations on the suspension of royalty relief granted
based on market price.
(c) APPLICATION.—This section shall apply to any
onshore Federal oil and gas lease issued before, on, or
after the date of enactment of this Act.
(d) RULEMAKINGS.—
(1) REQUIREMENT.—The Secretary shall com-
plete any rulemakings implementing this section
within 1 year after the date of enactment of this
Act.
(2) DEFINITION OF DEEP WELL.—Such regula-
tions shall include a definition of the term ‘‘deep
well’’ for purposes of this section.
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SEC. 2017. ENHANCED OIL AND NATURAL GAS PRODUCTION
INCENTIVE.
(a) FINDINGS.—Congress finds the following:
(1) Approximately two-thirds of the original oil
in place in the United States remains unproduced.
(2) Enhanced oil and natural gas production
from the sequestering of carbon dioxide and other
appropriate gases has the potential to increase oil
and natural gas production in the United States by
2 million barrels of oil equivalent per day, or more.
(3) Collection of carbon dioxide and other ap-
propriate gases from industrial facilities could pro-
vide a significant source of these gases that could be
permanently sequestered into oil and natural gas
fields.
(4) Such collection could be made economic by
providing production incentives to oil and natural
gas lessees.
(5) Providing production incentives for en-
hanced oil and natural gas production would pro-
mote significant advances in emissions control and
capture technology.
(6) Capturing and productively using industrial
emissions of carbon dioxide would help reduce the
carbon intensity of the economy.