Page:United States Statutes at Large Volume 119.djvu/734

 119 STAT. 716

PUBLIC LAW 109–58—AUG. 8, 2005 (4) AMOUNT OF RELIEF.—The rulemaking shall provide for a suspension volume, which shall not exceed 5,000,000 barrels of oil equivalent for each eligible lease. Such suspension volume shall be applied to any production from an eligible lease occurring on or after the date of publication of any advanced notice of proposed rulemaking under this subsection. (5) LIMITATION.—The Secretary may place limitations on the royalty reduction granted under this section based on market price. (6) APPLICATION.—This section shall apply to any eligible lease issued before, on, or after the date of enactment of this Act. (c) DEMONSTRATION PROGRAM.— (1) ESTABLISHMENT.— (A) IN GENERAL.—The Secretary of Energy shall establish a competitive grant program to provide grants to producers of oil and gas to carry out projects to inject carbon dioxide for the purpose of enhancing recovery of oil or natural gas while increasing the sequestration of carbon dioxide. (B) PROJECTS.—The demonstration program shall provide for— (i) not more than 10 projects in the Willistin Basin in North Dakota and Montana; and (ii) 1 project in the Cook Inlet Basin in Alaska. (2) REQUIREMENTS.— (A) IN GENERAL.—The Secretary of Energy shall issue requirements relating to applications for grants under paragraph (1). (B) RULEMAKING.—The issuance of requirements under subparagraph (A) shall not require a rulemaking. (C) MINIMUM REQUIREMENTS.—At a minimum, the Secretary shall require under subparagraph (A) that an application for a grant include— (i) a description of the project proposed in the application; (ii) an estimate of the production increase and the duration of the production increase from the project, as compared to conventional recovery techniques, including water flooding; (iii) an estimate of the carbon dioxide sequestered by project, over the life of the project; (iv) a plan to collect and disseminate data relating to each project to be funded by the grant; (v) a description of the means by which the project will be sustainable without Federal assistance after the completion of the term of the grant; (vi) a complete description of the costs of the project, including acquisition, construction, operation, and maintenance costs over the expected life of the project; (vii) a description of which costs of the project will be supported by Federal assistance under this section; and (viii) a description of any secondary or tertiary recovery efforts in the field and the efficacy of water flood recovery techniques used.

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