Page:United States Statutes at Large Volume 119.djvu/718

 119 STAT. 700

PUBLIC LAW 109–58—AUG. 8, 2005 (g) CONSULTATION WITH STATES.—The Secretary— (1) shall consult with a State before conducting a royalty in-kind program under this subtitle within the State; (2) may delegate management of any portion of the Federal royalty in-kind program to the State except as otherwise prohibited by Federal law; and (3) shall consult annually with any State from which Federal oil or gas royalty is being taken in-kind to ensure, to the maximum extent practicable, that the royalty in-kind program provides revenues to the State greater than or equal to the revenues likely to have been received had royalties been taken in-value. (h) SMALL REFINERIES.— (1) PREFERENCE.—If the Secretary finds that sufficient supplies of crude oil are not available in the open market to refineries that do not have their own source of supply for crude oil, the Secretary may grant preference to those refineries in the sale of any royalty oil accruing or reserved to the United States under Federal oil and gas leases issued under any mineral leasing law, for processing or use in those refineries at private sale at not less than the market price. (2) PRORATION AMONG REFINERIES IN PRODUCTION AREA.— In disposing of oil under this subsection, the Secretary may, at the discretion of the Secretary, prorate the oil among refineries described in paragraph (1) in the area in which the oil is produced. (i) DISPOSITION TO FEDERAL AGENCIES.— (1) ONSHORE ROYALTY.—Any royalty oil or gas taken by the Secretary in-kind from onshore oil and gas leases may be sold at not less than the market price to any Federal agency. (2) OFFSHORE ROYALTY.—Any royalty oil or gas taken inkind from a Federal oil or gas lease on the outer Continental Shelf may be disposed of only under section 27 of the Outer Continental Shelf Lands Act (43 U.S.C. 1353). (j) FEDERAL LOW-INCOME ENERGY ASSISTANCE PROGRAMS.— (1) PREFERENCE.—In disposing of royalty oil or gas taken in-kind under this section, the Secretary may grant a preference to any person, including any Federal or State agency, for the purpose of providing additional resources to any Federal lowincome energy assistance program. (2) REPORT.—Not later than 3 years after the date of enactment of this Act, the Secretary shall submit a report to Congress— (A) assessing the effectiveness of granting preferences specified in paragraph (1); and (B) providing a specific recommendation on the continuation of authority to grant preferences.

42 USC 15903.

SEC. 343. MARGINAL PROPERTY PRODUCTION INCENTIVES.

(a) DEFINITION OF MARGINAL PROPERTY.—Until such time as the Secretary issues regulations under subsection (e) that prescribe a different definition, in this section, the term ‘‘marginal property’’ means an onshore unit, communitization agreement, or lease not within a unit or communitization agreement, that produces on average the combined equivalent of less than 15 barrels of oil per well per day or 90,000,000 British thermal units of gas per

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