§15909 Gas hydrate production incentive

Summary

Give companies discounts on royalties to encourage them to produce natural gas from gas hydrate resources on the outer Continental Shelf and on Federal lands in Alaska. The Secretary may allow reduced royalties for eligible leases if the lease was issued under the Outer Continental Shelf Lands Act or was an onshore Federal Alaska lease, if it was issued before January 1, 2016, and if gas production from gas hydrates starts before January 1, 2018. The relief is a suspension volume of up to 30 billion cubic feet per lease, can be added to other non‑hydrate royalty relief, may be limited by market price, and applies to production on or after the date the advanced notice of proposed rulemaking is published. The Secretary must publish that advanced notice within 180 days after August 8, 2005, finish the rulemaking within 365 days after August 8, 2005, and define “gas hydrate resources” to cover gas in hydrates inside the hydrate stability zone and free gas trapped by or beneath that zone. Within 365 days after August 8, 2005, the Secretary, with the Secretary of Energy, must review and report to Congress on other ways to boost hydrate gas production, including other incentives or technical and financial help.