Use it or Lose it Act of 2022
Bill: S.5217 | Sponsor: Sen. Menendez, Robert (D-NJ)
Policy area: Energy

Summary:
Use it or Lose it Act of 2022
This bill requires holders of certain offshore and onshore oil and gas leases to diligently develop their leases. The Department of the Interior may assess an annual fee against a leaseholder who fails to appropriately develop a lease.

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

    This Act may be cited as the ``Use it or Lose it Act of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered lease.--The term ``covered lease'' means a 
        lease that authorizes the exploration for, or production of, 
        oil or natural gas under--
                    (A) section 17 of the Mineral Leasing Act (30 
                U.S.C. 226); or
                    (B) the Outer Continental Shelf Lands Act (43 
                U.S.C. 1331 et seq.).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. DILIGENT DEVELOPMENT OF FEDERAL OIL AND GAS LEASES.

    (a) Clarification of Existing Law.--Each covered lease shall be 
diligently developed by the person holding the covered lease to ensure 
timely production from the covered lease.
    (b) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall promulgate regulations with 
respect to covered leases that--
            (1) establish requirements and benchmarks for oil and gas 
        development that will ensure that leaseholders--
                    (A) diligently develop each covered lease; and
                    (B) to the maximum extent practicable, produce oil 
                and gas from each covered lease during the primary term 
                of the covered lease;
            (2) require each leaseholder to submit to the Secretary a 
        diligent development plan describing how the lessee will meet 
        the benchmarks established under paragraph (1); and
            (3) in establishing requirements under paragraphs (1) and 
        (2), take into account the differences in development 
        conditions and circumstances in the areas to be developed.

SEC. 4. NONPRODUCING LEASE FEE.

    (a) Definition of Nonproducing Lease.--In this section, the term 
``nonproducing lease'' means a covered lease under which no oil or 
natural gas has been extracted during the applicable year, as 
determined by the Secretary.
    (b) Authorization of Nonproducing Lease Fee.--The Secretary shall 
charge to each person who holds a nonproducing lease an annual, 
nonrefundable fee, in an amount determined by the Secretary under 
subsection (c), for each nonproducing lease held by the person.
    (c) Amount.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish the fee 
        authorized under subsection (b) in an amount determined by the 
        Secretary to be sufficient to adequately incentivize the use of 
        covered leases, but not less than $10 per acre per year for 
        each nonproducing lease.
            (2) Increase.--The Secretary shall by regulation, at least 
        once every 5 years, adjust the amount of the fee established 
        under paragraph (1) to reflect any increase in inflation.
    (d) Deposit.--Amounts collected as fees authorized under subsection 
(b) shall be deposited in the general fund of the Treasury.
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