(a)
Definition of marginal property
Until such time as the Secretary issues regulations under subsection (e) that prescribe a different definition, in this section, the term “marginal property” means an onshore unit, communitization agreement, or lease not within a unit or communitization agreement, that produces on average the combined equivalent of less than 15 barrels of oil per well per day or 90,000,000 British thermal units of gas per well per day calculated based on the average over the 3 most recent production months, including only wells that produce on more than half of the days during those 3 production months.
(e)
Regulations prescribing different relief
(1)
Discretionary regulations
The Secretary may by regulation prescribe different parameters, standards, and requirements for, and a different degree or extent of, royalty relief for marginal properties in lieu of those prescribed in subsections (a) through (d).
(2)
Mandatory regulations
Unless a determination is made under paragraph (3), not later than 18 months after August 8, 2005, the Secretary shall by regulation—
(A)
prescribe standards and requirements for, and the extent of royalty relief for, marginal properties for oil and gas leases on the outer Continental Shelf; and
(B)
define what constitutes a marginal property on the outer Continental Shelf for purposes of this section.
(3)
Report
To the extent the Secretary determines that it is not practicable to issue the regulations referred to in paragraph (2), the Secretary shall provide a report to Congress explaining such determination by not later than 18 months after August 8, 2005.
(4)
Considerations
In issuing regulations under this subsection, the Secretary may consider—
(A)
oil and gas prices and market trends;
(D)
Federal and State tax provisions and the effects of those provisions on production economics;
(E)
other royalty relief programs;
(F)
regional differences in average wellhead prices;
(G)
national energy security issues; and
(H)
other relevant matters, as determined by the Secretary.