Page:United States Statutes at Large Volume 119.djvu/723

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 705

(5) by striking ‘‘herein; (5) bidding’’ and inserting ‘‘under this section’’. ‘‘(f) BIDDING SYSTEMS.—Bidding’’; (6) by striking ‘‘629); (6) lease’’ and inserting ‘‘629)’’. ‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’; (7) by striking ‘‘structures; (7) the’’ and inserting ‘‘structures’’. ‘‘(h) SIZE OF LEASE TRACTS.—The’’; (8) by striking ‘‘Secretary; (8)’’ and all that follows through ‘‘Drilling, production,’’ and inserting ‘‘Secretary’’. ‘‘(i) TERMS.— ‘‘(1) IN GENERAL.—Each lease shall be issued for an initial period of not more than 10 years, and shall be extended for so long thereafter as oil or gas is produced from the lease in paying quantities, oil or gas is capable of being produced in paying quantities, or drilling or reworking operations, as approved by the Secretary, are conducted on the leased land. ‘‘(2) RENEWAL OF LEASES WITH DISCOVERIES.—At the end of the primary term of a lease the Secretary shall renew for an additional 10-year term a lease that does not meet the requirements of paragraph (1) if the lessee submits to the Secretary an application for renewal not later than 60 days before the expiration of the primary lease and the lessee certifies, and the Secretary agrees, that hydrocarbon resources were discovered on one or more wells drilled on the leased land in such quantities that a prudent operator would hold the lease for potential future development. ‘‘(3) RENEWAL OF LEASES WITHOUT DISCOVERIES.—At the end of the primary term of a lease the Secretary shall renew for an additional 10-year term a lease that does not meet the requirements of paragraph (1) if the lessee submits to the Secretary an application for renewal not later than 60 days before the expiration of the primary lease and pays the Secretary a renewal fee of $100 per acre of leased land, and— ‘‘(A) the lessee provides evidence, and the Secretary agrees that, the lessee has diligently pursued exploration that warrants continuation with the intent of continued exploration or future potential development of the leased land; or ‘‘(B) all or part of the lease— ‘‘(i) is part of a unit agreement covering a lease described in subparagraph (A); and ‘‘(ii) has not been previously contracted out of the unit. ‘‘(4) APPLICABILITY.—This subsection applies to a lease that is in effect on or after the date of enactment of the Energy Policy Act of 2005. ‘‘(5) EXPIRATION FOR FAILURE TO PRODUCE.—Notwithstanding any other provision of this Act, if no oil or gas is produced from a lease within 30 years after the date of the issuance of the lease the lease shall expire. ‘‘(6) TERMINATION.—No lease issued under this section covering lands capable of producing oil or gas in paying quantities shall expire because the lessee fails to produce the same due to circumstances beyond the control of the lessee. ‘‘(j) UNIT AGREEMENTS.—

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