Page:United States Statutes at Large Volume 119.djvu/724

 119 STAT. 706

PUBLIC LAW 109–58—AUG. 8, 2005 ‘‘(1) IN GENERAL.—For the purpose of conservation of the natural resources of all or part of any oil or gas pool, field, reservoir, or like area, lessees (including representatives) of the pool, field, reservoir, or like area may unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit agreement for all or part of the pool, field, reservoir, or like area (whether or not any other part of the oil or gas pool, field, reservoir, or like area is already subject to any cooperative or unit plan of development or operation), if the Secretary determines the action to be necessary or advisable in the public interest. In determining the public interest, the Secretary should consider, among other things, the extent to which the unit agreement will minimize the impact to surface resources of the leases and will facilitate consolidation of facilities. ‘‘(2) CONSULTATION.—In making a determination under paragraph (1), the Secretary shall consult with and provide opportunities for participation by the State of Alaska or a Regional Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)) with respect to the creation or expansion of units that include acreage in which the State of Alaska or the Regional Corporation has an interest in the mineral estate. ‘‘(3) PRODUCTION ALLOCATION METHODOLOGY.—(A) The Secretary may use a production allocation methodology for each participating area within a unit that includes solely Federal land in the Reserve. ‘‘(B) The Secretary shall use a production allocation methodology for each participating area within a unit that includes Federal land in the Reserve and non-Federal land based on the characteristics of each specific oil or gas pool, field, reservoir, or like area to take into account reservoir heterogeneity and area variation in reservoir producibility across diverse leasehold interests. The implementation of the foregoing production allocation methodology shall be controlled by agreement among the affected lessors and lessees. ‘‘(4) BENEFIT OF OPERATIONS.—Drilling, production,’’; (9) by striking ‘‘When separate’’ and inserting the following: ‘‘(5) POOLING.—If separate’’; (10) by inserting ‘‘(in consultation with the owners of the other land)’’ after ‘‘determined by the Secretary of the Interior’’; (11) by striking ‘‘thereto; (10) to’’ and all that follows through ‘‘the terms provided therein’’ and inserting ‘‘to the agreement. ‘‘(k) EXPLORATION INCENTIVES.— ‘‘(1) IN GENERAL.— ‘‘(A) WAIVER, SUSPENSION, OR REDUCTION.—To encourage the greatest ultimate recovery of oil or gas or in the interest of conservation, the Secretary may waive, suspend, or reduce the rental fees or minimum royalty, or reduce the royalty on an entire leasehold (including on any lease operated pursuant to a unit agreement), whenever (after consultation with the State of Alaska and the North Slope Borough of Alaska and the concurrence of any Regional Corporation for leases that include land that was made available for acquisition by the Regional Corporation under the provisions of section 1431(o) of the Alaska National

VerDate 14-DEC-2004

08:19 Oct 26, 2006

Jkt 039194

PO 00001

Frm 00704

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.119

APPS06

PsN: PUBL001

�