I 111th CONGRESS 2d Session H. R. 5102 IN THE HOUSE OF REPRESENTATIVES April 21, 2010 Mr. Markey of Massachusetts (for himself, Mr. Frank of Massachusetts, Mrs. Capps, Mr. Grijalva, Mr. Hinchey, Mr. Hodes, Mr. Yarmuth, Mr. Welch, and Ms. Sutton) introduced the following bill; which was referred to the Committee on Natural Resources A BILL To direct the Secretary of the Interior to establish an annual production incentive fee with respect to Federal onshore and offshore lands that are subject to a lease for production of oil or natural gas under which production is not occurring, and for other purposes.

1.

Short title

This Act may be cited as the United States Exploration on Idle Tracts Act or the USE IT Act.

2.

Production incentive fee

(a)

Establishment

The Secretary of the Interior shall, within 180 days after the date of enactment of this Act, issue regulations to establish an annual production incentive fee with respect to Federal onshore and offshore lands that are subject to a lease for production of oil or natural gas under which production is not occurring. Such fee shall apply with respect to lands that are subject to such a lease that is in effect on the date final regulations are promulgated under this subsection or that is issued thereafter. (b)

Amount

The amount of the fee shall be, for each acre of land from which oil or natural gas is produced for less than 90 days in a calendar year— (1)for each of the first 3 years of the lease, $4 per acre in 2010 dollars; (2)for the fourth year of the lease, $6 per acre in 2010 dollars; and (3)for the fifth year of the lease and each year thereafter for which the lease is otherwise in effect, $8 per acre in 2010 dollars. (c)

Assessment and collection

The Secretary shall assess and collect the fee established under this section. (d)

Deposit

Amounts received by the United States as the fee under this section shall be deposited in the general fund of the Treasury. (e)

Regulations

The Secretary of the Interior may issue regulations to prevent evasion of the fee under this section.