[Congressional Record Volume 154, Number 97 (Thursday, June 12, 2008)]
[Senate]
[Page S5632]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Florida:
  S. 3135. A bill to amend the Outer Continental Shelf Lands Act to 
provide for the establishment of a production incentive fee for 
nonproducing leases; to the Committee on Energy and Natural Resources.
  Mr. NELSON of Florida. Mr. President, today I have introduced 
legislation which will impose a fee of no less than $5 per acre per 
year for Federal lands leased in the Outer Continental Shelf, 
specifically within the Gulf of Mexico.
  It is my hope this legislation will improve the management of the 
nation's oil and gas leasing program, a program that has greatly 
expanded in recent years. Since the 1990s, the federal government has 
consistently encouraged the development of its oil and gas resources 
and drilling on federal lands has steadily increased during this time. 
The number of drilling permits issued for lands on and offshore has 
exploded in recent years, going from 3,802 five years ago to 7,561 in 
2007.
  Let me also share some statistics prepared by the House Resources 
Committee regarding offshore energy resources. On the Outer Continental 
Shelf, 82 percent of federal natural gas and 79 percent of Federal oil 
is located in areas that are currently open for leasing. Offshore, only 
10.5 million of the 44 million leased acres are currently producing oil 
or gas.
  It is simply, unfair, dishonest, and disingenuous to try to persuade 
the American people that all we need to do is drill. In fact, I have 
concerns the oil companies are hoarding a resource that belongs to the 
United States of America and sitting upon it until the price is right 
for them to drill. Before we open up more areas for leasing, we must 
first use what we have. That makes sense to me.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3135

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 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.''.
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