,,ii  #aai? ,,congress  #b;d ,session   
,s4 #edeh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bb1         
#bjbf,mr4 ,cotton introduc$ ! foll[+    
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,en]gy & ,natural         
,res\rces  ,a ,,bill  ,to r$uce en]gy   
supply %ortages & consum] fuel co/s by  
l[]+ production co/ b>ri]s = dome/ic    
up/ream oil & natural gas produc]s1     
provid+ tempor>y royalty & tax relief   
dur+ p]iods ( supply /ress1 /reaml9+    
p]mitt+ = additional production1        
enc\rag+ ,/ate sev]ance tax relief1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,supply ,relief &      
,dome/ic ,production ,co/ ,r$uction     
,act4  #b4 ,purposes ,! purposes ( ?is  
,act are-- 7#a7 to increase !           
availability ( dome/ic crude oil1       
natural gas1 cond5sate1 & natural gas   
liquids dur+ p]iods ( supply %ortage or 
elevat$ consum] fuel co/s2  7#b7 to     
r$uce m>g9al production co/s = up/ream  
produc]s capable ( br++ additional      

supply to m>ket2  7#c7 to l[] ,f$]al    
fiscal1 regulatory1 & p]mitt+ b>ri]s t  
disc\rage dome/ic exploration1 drill+1  
completion1 recompletion1 workov]1 &    
production activities2  7#d7 to ensure t
 relief provid$ "u ?is ,act is ti$ to   
dome/ic production1 supply availability1
 & consum] co/ r$uction2 &  7#e7 to     
pres]ve environm5tal1 safety1 &         
reclamation obligations :ile ensur+ t   
su* obligations are implem5t$ 9 a       
timely1 pr$ictable1 & non-duplicative   
mann]4  #c4 ,def9itions ,9 ?is ,act3    
7#a7 ,cov]$ en]gy commodity ,! t]m cov]$
 en]gy commodity means crude oil1       
natural gas1 cond5sate1 natural gas     
liquids1 or any o!r hydroc>bon produc$ f
 an oil or gas well 9 ! ,unit$ ,/ates4  
7#b7 ,cov]$ produc] ,! t]m cov]$ produc]
 means a p]son t-- 7,a7 holds a work+   
int]e/1 op]at+ int]e/1 record title     
int]e/1 op]at+ "r1 leasehold int]e/1 or 
o!r "r to explore =1 develop1 drill1    
complete1 recomplete1 "w ov]1 produce1  
or sell a cov]$ en]gy commodity2 &  7,b7

 conducts1 or proposes to conduct1 cov]$
 up/ream production activity 9 ! ,unit$ 
,/ates4  7#c7 ,cov]$ up/ream production 
activity ,! t]m cov]$ up/ream production
 activity means-- 7,a7 geologic1        
geophysical1 eng9e]+1 survey+1 /ak+1    
site prep>ation1 exploration1 drill+1   
completion1 recompletion1 workov]1      
plugg+ back1 /imulation1 artificial     
lift1 produc$ wat] h&l+1 ga!r+1         
sep>ation1 compression1 met]+1 /orage1  
or transportation activity c>ri$ out    
up/ream ( ! po9t ( sale or cu/ody       
transf] ( a cov]$ en]gy commodity2  7,b7
 con/ruction1 ma9t5ance1 replacem5t1    
mod]nization1 or op]ation ( equipm5t1   
roads1 pads1 tank batt]ies1 fl[l9es1    
ga!r+ l9es1 compressor units1 sep>ators1
 dehydrators1 met]s1 produc$ wat]       
sy/ems1 p[] supply1 & o!r appurt5ant    
facilities necess>y = ! production ( a  
cov]$ en]gy commodity2 &  7,c7 any      
activity t ! ,secret>y det]m9es is      
reasonably necess>y to increase1 ma9ta91
 re/ore1 or avoid ! curtailm5t ( dome/ic

 production ( a cov]$ en]gy commodity4  
7#d7 ,oil & gas lease ,! t]m oil & gas  
lease means a lease ( ,f$]al l& = oil & 
gas production issu$ pursuant to !      
,m9]al ,leas+ ,act 7#cj ,u4,s4,c4 #aha  
et seq474  7#e7 ,out] ,cont95tal ,%elf  
,! t]m out] ,cont95tal ,%elf has ! mean+
 giv5 ! t]m 9 section #b ( ! ,out]      
,cont95tal ,%elf ,l&s ,act 7#dc         
,u4,s4,c4 #acca74  7#f7 ,secret>y ,! t]m
 ,secret>y means ! ,secret>y ( !        
,int]ior4  7#g7 ,supply %ortage p]iod ,!
 t]m supply %ortage p]iod means a p]iod 
c]tifi$ "u section #aja4  7#h7 ,unit$   
,/ates ,! t]m ,unit$ ,/ates means-- 7,a7
 ! ,/ates2  7,b7 ! ,di/rict ( ,columbia2
  7,c7 ! ,commonweal? ( ,pu]to ,rico2   
7,d7 ,guam2  7,e7 ,am]ican ,samoa2  7,f7
 ! ,commonweal? ( ! ,nor!rn ,m>iana     
,isl&s2  7,g7 ! ,unit$ ,/ates ,virg9    
,isl&s2 &  7,h7 any o!r t]ritory or     
possession ( ! ,unit$ ,/ates1 includ+ ! 
out] ,cont95tal ,%elf4  ,i ,supply      
%ortage det]m9ation  #aja4 ,c]tification
 ( supply %ortage p]iod  7a7 ,9 g5]al ,!

 ,secret>y ( ,en]gy %all c]tify a supply
 %ortage p]iod = purposes ( ?is ,act if 
! ,secret>y ( ,en]gy det]m9es t #a or m 
( ! foll[+ conditions exi/s3 7#a7 ,!    
av]age retail price ( gasol9e1 diesel   
fuel1 home heat+ oil1 or natural gas =  
resid5tial1 comm]cial1 indu/rial1       
agricultural1 or electric g5]ation use  
exce$s ! #e-ye> av]age price = su* fuel 
by m ?an #ae p]c5t = a p]iod ( n few]   
?an #cj consecutive days4  7#b7 ,dome/ic
 inv5tories ( crude oil1 petroleum      
products1 or natural gas are bel[ !     
#e-ye> seasonal av]age = a p]iod ( n    
few] ?an #cj consecutive days4  7#c7    
,dome/ic production ( crude oil1 natural
 gas1 cond5sate1 or natural gas liquids 
is con/ra9$ by insuffici5t p]mitt+1     
leas+1 transportation1 ga!r+1 process+1 
or field-s]vice capacity4  7#d7 ,!      
,presid5t has decl>$ an en]gy em]g5cy1  
fuel supply em]g5cy1 national em]g5cy   
affect+ en]gy m>kets1 or o!r em]g5cy t  
mat]ially affects ! availability or co/ 
( cov]$ en]gy commodities4  7#e7 ,!     

,secret>y ( ,en]gy det]m9es t additional
 dome/ic production ( cov]$ en]gy       
commodities w\ld mat]ially r$uce ! risk 
( %ortage1 price escalation1 or regional
 supply disruption4  7b7 ,duration ,a   
c]tification by ! ,secret>y ( ,en]gy "u 
subsection 7a7 %all rema9 9 effect =    
#ahj days unless t]m9at$ e>li] "u       
subsection 7d74  7c7 ,ext5sion ,!       
,secret>y ( ,en]gy may ext5d a          
c]tification "u subsection 7a7 =        
additional p]iods ( n m ?an #ahj days if
 ! ,secret>y ( ,en]gy det]m9es t !      
conditions describ$ 9 t subsection      
cont9ue to exi/4  7d7 ,t]m9ation ,!     
,secret>y ( ,en]gy may t]m9ate a supply 
%ortage p]iod if ! ,secret>y ( ,en]gy   
det]m9es t ! conditions describ$ 9      
subsection 7a7 no long] exi/4  7e7      
,publication ,a c]tification1 ext5sion1 
or t]m9ation "u ?is section %all be     
publi%$ 9 ! ,f$]al ,regi/]4  7f7 ,sav+s 
clause ,a c]tification "u ?is section   
does n au?orize any activity t is       
o!rwise prohibit$ by ,f$]al law1 except 

to ! ext5t expressly provid$ 9 ?is ,act4
  #ajb4 ,cov]$ relief p]iod ,= purposes 
( ?is ,act & ! am5dm5ts made by ?is     
,act1 relief available dur+ a supply    
%ortage p]iod %all apply to-- 7#a7 any  
cov]$ up/ream production activity       
initiat$1 p]mitt$1 approv$1 modifi$1    
ext5d$1 r5ew$1 drill$1 complet$1        
recomplet$1 or plac$ into production    
dur+ ! supply %ortage p]iod2 &  7#b7 any
 co/1 paym5t1 royalty1 fee1 or          
exp5diture incurr$ dur+ ! supply %ortage
 p]iod 9 connection ) a cov]$ up/ream   
production activity4  ,,ii ,f$]al       
royalty & lease paym5t relief  #bja4    
,tempor>y r$uction 9 ,f$]al oil & gas   
royalty rates dur+ supply %ortage p]iods
  7a7 ,on%ore ,f$]al l&s ,not)/&+ !     
,m9]al ,leas+ ,act 7#cj ,u4,s4,c4 #aha  
et seq471 includ+ section #ag ( t ,act  
7#cj ,u4,s4,c4 #bbf71 or any regulation 
issu$ pursuant to t ,act1 dur+ a supply 
%ortage p]iod1 ! royalty rate = an oil  
or gas lease %all be ! less] (-- 7#a7 ! 
royalty rate specifi$ 9 ! applicable    

lease2 &  7#b7 #h p]c5t4  7b7 ,out]     
,cont95tal ,%elf ,not)/&+ ! ,out]       
,cont95tal ,%elf ,l&s ,act 7#dc         
,u4,s4,c4 #acca et seq471 any regulation
 issu$ pursuant to t ,act1 or any lease 
t]m to ! contr>y1 dur+ a supply %ortage 
p]iod1 ! ,secret>y %all (f] royalty     
relief1 includ+ royalty susp5sion       
volumes1 r$uc$ royalty rates1 or o!r    
equival5t royalty relief1 = production f
 any lease on ! out] ,cont95tal ,%elf if
 ! ,secret>y det]m9es t royalty relief  
is likely-- 7#a7 to increase dome/ic    
production2  7#b7 to accel]ate ! tim+ ( 
production2  7#c7 to ext5d production f 
an exi/+ field2  7#d7 to avoid %ut-9    
production2 or  7#e7 to r$uce consum]   
en]gy co/s4  7c7 ,m>g9al wells  7#a7    
,def9ition ( m>g9al well ,9 ?is         
subsection1 ! t]m m>g9al well means a   
well t produces n m ?an-- 7,a7 #ae      
b>rels ( oil p] day2 or  7,b7 #ij1jjj   
cubic feet ( natural gas p] day4  7#b7  
,royalty rate ,dur+ a supply %ortage    
p]iod1 ! royalty rate = production f a  

m>g9al well on ,f$]al l& %all be #j     
p]c5t = ! #bd-mon? p]iod beg9n+ on !    
date t ! initial supply %ortage p]iod1 z
 applicable1 0 c]tifi$ "u section       
#aja7;a74  7d7 ,new production f exi/+  
leases  7#a7 ,def9ition ( increm5tal new
 production ,9 ?is subsection1 ! t]m    
increm5tal new production means         
production f-- 7,a7 a new well drill$ on
 an exi/+ lease2  7,b7 a recomplet$     
well2  7,c7 a workov] op]ation2  7,d7 a 
re/imulation op]ation2  7,e7 a second>y 
or t]ti>y recov]y activity2 or  7,f7 any
 o!r activity t increases production    
above ! av]age daily production f !     
lease dur+ ! #ab-mon? p]iod prec$+ !    
supply %ortage p]iod4  7#b7 ,royalty    
rate ,dur+ a supply %ortage p]iod1 !    
royalty rate = increm5tal new production
 f an exi/+ oil or gas lease %all be    
r$uc$ by #ej p]c5t = ! fir/ #cf mon?s ( 
su* increm5tal production1 z applicable1
 0 c]tifi$ "u section #aja7;a74  7e7 ,no
 effect on exi/+ environm5tal or        
reclamation obligations ,royalty relief 

provid$ "u ?is section %all n affect any
 obligation relat+ to well control1     
safety1 spill prev5tion1 reclamation1   
bond+1 plugg+1 ab&onm5t1 or environm5tal
 compliance4  #bjb4 ,tempor>y r$uction (
 ,f$]al lease r5tals1 m9imum bids1 &    
relat$ paym5ts  7a7 ,r5tal paym5ts ,dur+
 a supply %ortage p]iod1 ! ,secret>y    
%all r$uce by #ej p]c5t any r5tal paym5t
 o!rwise due "u applicable law ) respect
 to an oil or gas lease if ! lessee     
c]tifies to ! ,secret>y t ! sav+s       
result+ f ! #ej p]c5t r$uction w be us$ 
to support cov]$ up/ream production     
activity4  7b7 ,m9imum bid ,dur+ a      
supply %ortage p]iod1 ! m9imum          
acceptable bid = an oil or gas lease    
%all be #b p] acre4  7c7 ,adm9i/rative  
fees ,dur+ a supply %ortage p]iod1 !    
,secret>y %all waive1 r$uce1 or def]    
noness5tial adm9i/rative fees associat$ 
) applications = p]mits to drill1 sundry
 notices1 rights-(-way1 communitization 
agreem5ts1 unitization agreem5ts1 lease 
re9/atem5ts1 lease ext5sions1 & relat$  

approvals = cov]$ up/ream production    
activity4  7d7 ,c]tification ,a lessee  
receiv+ relief "u ?is section %all      
c]tify to ! ,secret>y t ! relief w be   
us$ to support-- 7#a7 additional drill+1
 completion1 recompletion1 workov]1 or  
production activity2  7#b7 ma9t5ance or 
re/oration ( production2  7#c7 avoidance
 ( %ut-9 production2  7#d7 r$uction (   
deliv]$ en]gy co/s2 or  7#e7 employm5t1 
equipm5t1 or field-s]vice activity      
directly relat$ to dome/ic production4  
#bjc4 ,exp$it$ royalty relief =         
supply-con/ra9$ bas9s  7a7 ,def9ition ( 
supply-,con/ra9$ bas9 ,9 ?is section1 ! 
t]m supply-con/ra9$ bas9 means a bas9 = 
:i* ! ,secret>y ( ,en]gy1 9 consultation
 ) ! ,secret>y1 has made a det]m9ation  
t-- 7#a7 additional production f t bas9 
w\ld mat]ially increase dome/ic supply2 
7#b7 production f t bas9 is con/ra9$ by 
production co/s1 transportation         
con/ra9ts1 lease economics1 p]mitt+     
delays1 or field-s]vice limitations2 or 
7#c7 production f t bas9 w\ld mat]ially 

r$uce regional or national fuel prices4 
7b7 ,exp$it$ process  7#a7 ,e/abli%m5t  
,dur+ a supply %ortage p]iod1 !         
,secret>y %all e/abli% an exp$it$       
process = applicants to submit an       
application = royalty relief = ,f$]al   
leases locat$ 9 a supply-con/ra9$ bas94 
7#b7 ,application ,an application       
submitt$ "u p>agraph 7#a7 %all be 9 su* 
=m & conta9 su* in=mation z ! ,secret>y 
may require4  7#c7 ,deadl9e  7,a7 ,9    
g5]al ,n lat] ?an #cj days aft] ! date  
on :i* a complete application is        
submitt$ by an applicant "u p>agraph    
7#a71 ! ,secret>y %all-- 7i7 approve or 
d5y ! application = relief2 &  7ii7     
notify ! applicant ( ! det]m9ation made 
"u clause 7i74  7,b7 ,miss$ deadl9e     
approval ,if ! ,secret>y fails to       
approve or d5y an application by !      
deadl9e "u subp>agraph 7,a71 !          
application %all be consid]$ approv$ = a
 p]iod ( #bd mon?s4  ,,iii ,f$]al lease 
t]ms  #cja4 ,lease t]m ext5sions  7a7 ,9
 g5]al ,dur+ a supply %ortage p]iod1 !  

,secret>y %all ext5d by #b ye>s ! prim>y
 t]m ( any oil or gas lease if          
production1 drill+1 completion1 or      
relat$ op]ations 7 delay$ by-- 7#a7     
,f$]al p]mitt+ delay2  7#b7 adm9i/rative
 prote/2  7#c7 litigation2  7#d7        
supply-*a9 disruption2  7#e7 lack (     
field-s]vice availability2  7#f7 delay 9
 obta9+ a ,f$]al "r-(-way or o!r ,f$]al 
au?orization2 or  7#g7 any o!r cause    
outside ! reasonable control ( ! lessee4
  7b7 ,no additional paym5t ,an ext5sion
 "u subsection 7a7 %all n require !     
paym5t ( any additional bonus1 r5tal1   
fee1 or o!r consid]ation n o!rwise      
requir$ "u ! lease4  ,,iv ,consum] co/ &
 supply acc\ntability  #dja4 ,produc]   
c]tification  7a7 ,9 g5]al ,a cov]$     
produc] receiv+ relief "u ?is ,act %all 
c]tify to ! applicable ,f$]al ag5cy t ! 
relief w be us$ to support #a or m ( !  
foll[+3 7#a7 ,increas$ dome/ic          
production4  7#b7 ,ma9t5ance or         
re/oration ( exi/+ production4  7#c7    
,avoidance ( %ut-9 production4  7#d7    

,r$uction 9 production co/s4  7#e7      
,expansion ( drill+1 completion1        
recompletion1 workov]1 or field-s]vice  
activity4  7#f7 ,r$uction ( deliv]$     
en]gy co/s to ref9]s1 utilities1        
indu/rial consum]s1 comm]cial consum]s1 
agricultural us]s1 or h\seholds4  7b7   
,=m ,! c]tification requir$ "u          
subsection 7a7 %all be 9 su* =m & conta9
 su* in=mation z ! ,secret>y ( ,en]gy   
may require4  7c7 ,false /atem5ts ,a    
c]tification "u subsection 7a7 %all be  
subject to section #ajja ( title #ah1   
,unit$ ,/ates ,code4  #djb4 ,report to  
,congress ,n lat] ?an #ahj days aft] !  
fir/ c]tification ( a supply %ortage    
p]iod "u section #aja7;a71 & annually   
!reaft]1 ! ,secret>y ( ,en]gy1 9        
consultation ) ! ,secret>y & ! ,secret>y
 ( ! ,treasury1 %all submit to ,congress
 & make publicly available a report     
describ+-- 7#a7 ! effect ( ?is ,act on--
 7,a7 dome/ic production ( cov]$ en]gy  
commodities2 &  7,b7 consum] fuel &     
en]gy co/s2  7#b7 ! numb] ( p]mits1     

leases1 rights-(-way1 sundry notices1 & 
relat$ approvals issu$ or det]m9$       
approv$ "u ?is ,act2 &  7#c7            
recomm5dations = additional legislative 
action to r$uce supply %ortages &       
consum] co/s4  #djc4 ,,gao review ,n    
lat] ?an #b ye>s aft] ! date ( enactm5t 
( ?is ,act1 ! ,comptroll] ,g5]al ( !    
,unit$ ,/ates %all submit to ,congress a
 report evaluat+-- 7#a7 :e!r relief     
provid$ "u ?is ,act-- 7,a7 increas$     
dome/ic supply2  7,b7 r$uc$ production  
co/s2 &  7,c7 r$uc$ consum] prices2     
7#b7 :e!r ,f$]al ag5cies compli$ )      
p]mitt+ deadl9es requir$ "u ?is ,act2 & 
7#c7 :e!r additional re=ms are necess>y 
to r$uce supply %ortages4