II 110th CONGRESS 2d Session S. 3135 IN THE SENATE OF THE UNITED STATES June 12, 2008 Mr. Nelson of Florida introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend the Outer Continental Shelf Lands Act to provide for the establishment of a production incentive fee for nonproducing leases.

1.

Short title

This Act may be cited as the Outer Continental Shelf Production Incentive Fee Act.

2.

Production Incentive Fee

Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding at the end the following: (q)

Production incentive fee

(1)

Establishment

Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish, by regulation, a fee for any nonproducing oil or gas leases on outer Continental Shelf land in the Gulf of Mexico that are in effect on the date of enactment of this subsection. (2)

Amount

The amount of the fee established under paragraph (1) shall be at a rate established by the Secretary by regulation, but shall be not less than $5 per acre per year. (3)

Assessment and collection

The Secretary shall assess and collect the fee established under paragraph (1) on an annual basis, in accordance with procedures established by the Secretary by regulation. (4)

Disposition

Notwithstanding section 9, any amounts collected under paragraph (3) shall be— (A)available to the Secretary of the Interior for use in accordance with the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–4 et seq.); and (B)treated as offsetting receipts. .