42 U.S.C. § 15909 — Gas hydrate production incentive

(a) Purpose: This section exists to encourage natural gas production from gas hydrate resources on the outer Continental Shelf and on federal land in Alaska, by offering royalty incentives.

(b) Suspension of royalties: (1) The Secretary^* may grant royalty relief for gas produced from hydrate resources under a qualifying, or "eligible," lease. (2) A lease qualifies if (A) it was issued under the Outer Continental Shelf Lands Act or as an onshore Alaska federal oil and gas lease, (B) it was issued before January 1, 2016, and (C) hydrate gas production on it started before January 1, 2018. (3) After a rulemaking, the Secretary could grant relief as a "suspension volume" — gas that owes no royalty — up to 30 billion cubic feet per lease, if doing so would encourage hydrate gas production. This relief comes on top of any other royalty relief that is not specifically for gas hydrates, and it applies to production starting on or after the date the proposed rule was first published. (4) The Secretary may still limit this relief based on market prices.

(c) Application: This section applies to any eligible lease issued before, on, or after August 8, 2005.

(d) Rulemakings: (1) The Secretary had to publish a proposed rule within 180 days of August 8, 2005, and finish the rulemaking within 365 days. (2) Those regulations must define "gas hydrate resources" to include both the natural gas inside hydrate ice formations and any free natural gas trapped just beneath them.

(e) Review: Within 365 days of August 8, 2005, the Secretary, working with the Secretary of Energy, had to review and report to Congress on other ways — beyond this section — to encourage more natural gas production from gas hydrates on the outer Continental Shelf and in Alaska, whether through other incentives or through technical or financial help.