Page:United States Statutes at Large Volume 119.djvu/720

 119 STAT. 702

(e) REGULATIONS PRESCRIBING DIFFERENT RELIEF.— (1) DISCRETIONARY REGULATIONS.—The Secretary may by regulation prescribe different parameters, standards, and requirements for, and a different degree or extent of, royalty relief for marginal properties in lieu of those prescribed in subsections (a) through (d). (2) MANDATORY REGULATIONS.—Unless a determination is made under paragraph (3), not later than 18 months after the date of enactment of this Act, the Secretary shall by regulation— (A) prescribe standards and requirements for, and the extent of royalty relief for, marginal properties for oil and gas leases on the outer Continental Shelf; and (B) define what constitutes a marginal property on the outer Continental Shelf for purposes of this section. (3) REPORT.—To the extent the Secretary determines that it is not practicable to issue the regulations referred to in paragraph (2), the Secretary shall provide a report to Congress explaining such determination by not later than 18 months after the date of enactment of this Act. (4) CONSIDERATIONS.—In issuing regulations under this subsection, the Secretary may consider— (A) oil and gas prices and market trends; (B) production costs; (C) abandonment costs; (D) Federal and State tax provisions and the effects of those provisions on production economics; (E) other royalty relief programs; (F) regional differences in average wellhead prices; (G) national energy security issues; and (H) other relevant matters, as determined by the Secretary. (f) SAVINGS PROVISION.—Nothing in this section prevents a lessee from receiving royalty relief or a royalty reduction pursuant to any other law (including a regulation) that provides more relief than the amounts provided by this section.

Deadline.

42 USC 15904.

Deadline.

Effective date. Notices. Federal Register, publication.

VerDate 14-DEC-2004

08:19 Oct 26, 2006

PUBLIC LAW 109–58—AUG. 8, 2005

SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE SHALLOW WATERS OF THE GULF OF MEXICO.

(a) ROYALTY INCENTIVE REGULATIONS FOR ULTRA DEEP GAS WELLS.— (1) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, in addition to any other regulations that may provide royalty incentives for natural gas produced from deep wells on oil and gas leases issued pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall issue regulations granting royalty relief suspension volumes of not less than 35 billion cubic feet with respect to the production of natural gas from ultra deep wells on leases issued in shallow waters less than 400 meters deep located in the Gulf of Mexico wholly west of 87 degrees, 30 minutes west longitude. Regulations issued under this subsection shall be retroactive to the date that the notice of proposed rulemaking is published in the Federal Register.

Jkt 039194

PO 00001

Frm 00700

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.119

APPS06

PsN: PUBL001

�