“The Longer We Delay, the More Americans Will Pay”
WASHINGTON, D.C. – Today, U.S. Senator John Barrasso (R-Wyo.) released the following statement regarding Senate Democrats’ “Use it or Lose it” bill:
“Our nation is dependent on foreign oil because our leaders are dependent on the same old excuses. While ‘use it or lose it’ makes for a nice sound bite, it’s completely devoid of reality and not a solution for pain at the pump.
“In fact, the Secretary of the Interior already requires federal lease holders to develop oil and natural gas within five to ten years. If they don’t, the Secretary can cancel their leases. Clearly, it is in the lease holders interest to complete projects as quickly as possible. It is in America’s interest to make it easier for lease holders to produce energy as clean as we can, as fast as we can. The President should issue timely permits, streamline red tape, and rein in unelected bureaucrats.
“The longer we delay, the more Americans will pay. Gas prices will continue to soar until the Obama Administration and Congress decide to support an all of the above American energy plan.”
Senator Barrasso is a member of both the Senate Environment and Public Works Committee and the Energy and Natural Resources Committee.
BACKGROUND
The United States already has several laws that require federal lease holders to use it or lose it:
• Current law for offshore oil and gas leases (United States Code Title 43, Section 1337(b))
“An oil and gas lease issued pursuant to this section shall (2) be for an initial period of (A) five years; or (B) not to exceed ten years where the Secretary finds that such longer period is necessary to encourage exploration and development in areas because of unusually deep water or other unusually adverse conditions, and as long after such initial period as oil or gas is produced from the area in paying quantities, or drilling or well reworking operations as approved by the Secretary are conducted thereon.”
• Authority for Interior Secretary to cancel offshore leases when the lessee doesn’t follow the rules (Code of Federal Regulations: Title 43, Section 3108.3 (a) and (b))
“Whenever the lessee fails to comply with any of the provisions of the law, the regulations issued thereunder, or the lease, the lease may be canceled by the Secretary, if the leasehold does not contain a well capable of production of oil or gas in paying quantities …. Whenever the lessee fails to comply with any of the provisions of the law, the regulations issued thereunder, or the lease, and if the leasehold contains a well capable of production of oil or gas in paying quantities … the lease may be canceled only by judicial proceedings in the manner provided by section 31(a) of the Act.”
• Current law for onshore oil and gas leases (United States Code: Title 30, Subsection 226(e))
“Competitive and noncompetitive leases issued under this section shall be for a primary term of 10 years…Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for two years and so long thereafter as oil or gas is produced in paying quantities.”
• Authority for Interior Secretary to cancel onshore leases when the lessee doesn’t follow the rules (United States Code: Title 30, Subsection 188(a) and (b))
“Any lease … may be forfeited and canceled … whenever the lessee fails to comply with any provisions of this chapter, of the lease, or of the general regulations … Any lease … shall be subject to cancellation by the Secretary of the Interior after 30 days notice upon failure of the lessee to comply with any of the provisions of the lease….”
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