Page:United States Statutes at Large Volume 119.djvu/733

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 715

implementing this section within 365 days after the date of enactment of this Act. (2) GAS HYDRATE RESOURCES DEFINED.—Such regulations shall define the term ‘‘gas hydrate resources’’ to include both the natural gas content of gas hydrates within the hydrate stability zone and free natural gas trapped by and beneath the hydrate stability zone. (e) REVIEW.—Not later than 365 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Energy, shall carry out a review of, and submit to Congress a report on, further opportunities to enhance production of natural gas from gas hydrate resources on the outer Continental Shelf and on Federal lands in Alaska through the provision of other production incentives or through technical or financial assistance. SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH CARBON DIOXIDE INJECTION.

(a) PRODUCTION INCENTIVE.— (1) FINDINGS.—Congress finds the following: (A) Approximately two-thirds of the original oil in place in the United States remains unproduced. (B) Enhanced oil and natural gas production from the sequestering of carbon dioxide and other appropriate gases has the potential to increase oil and natural gas production. (C) Capturing and productively using carbon dioxide would help reduce the carbon intensity of the economy. (2) PURPOSE.—The purpose of this section is— (A) to promote the capturing, transportation, and injection of produced carbon dioxide, natural carbon dioxide, and other appropriate gases or other matter for sequestration into oil and gas fields; and (B) to promote oil and natural gas production from the outer Continental Shelf and onshore Federal lands under lease by providing royalty incentives to use enhanced recovery techniques using injection of the substances referred to in subparagraph (A). (b) SUSPENSION OF ROYALTIES.— (1) IN GENERAL.—If the Secretary determines that reduction of the royalty under a Federal oil and gas lease that is an eligible lease is in the public interest and promotes the purposes of this section, the Secretary shall undertake a rulemaking to provide for such reduction for an eligible lease. (2) RULEMAKINGS.—The Secretary shall publish the advanced notice of proposed rulemaking within 180 days after the date of enactment of this Act and complete the rulemaking implementing this section within 365 days after the date of enactment of this Act. (3) ELIGIBLE LEASES.—A lease shall be an eligible lease for purposes of this section if— (A) it is a lease for production of oil and gas from the outer Continental Shelf or Federal onshore lands; (B) the injection of the substances referred to in subsection (a)(2)(A) will be used as an enhanced recovery technique on such lease; and (C) the Secretary determines that the lease contains oil or gas that would not likely be produced without the royalty reduction provided under this section.

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