[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3225 Reported in House (RH)]
<DOC>
Union Calendar No. 572
116th CONGRESS
2d Session
H. R. 3225
[Report No. 116-689, Part I]
To amend the Mineral Leasing Act to make certain adjustments in leasing
on Federal lands for oil and gas drilling, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 12, 2019
Mr. Levin of California (for himself, Mr. Grijalva, and Mr. Lowenthal)
introduced the following bill; which was referred to the Committee on
Natural Resources, and in addition to the Committee on Agriculture, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
December 24, 2020
Additional sponsors: Ms. DeGette, Mr. Cartwright, Mr. Soto, Ms. Norton,
Mr. Ryan, Ms. Barragan, Mr. Panetta, Ms. Roybal-Allard, Mr. Quigley,
Mr. Huffman, Mr. Van Drew, Mr. Kennedy, Mr. Nadler, Mr. Kildee, Mrs.
Kirkpatrick, Ms. Blunt Rochester, Ms. Haaland, Mrs. Napolitano, Mr.
Blumenauer, and Ms. Porter
December 24, 2020
Reported from the Committee on Natural Resources with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
December 24, 2020
Committee on Agriculture discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on June
12, 2019]
_______________________________________________________________________
A BILL
To amend the Mineral Leasing Act to make certain adjustments in leasing
on Federal lands for oil and gas drilling, and for other purposes.
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 ``Restoring Community Input and Public
Protections in Oil and Gas Leasing Act of 2020''.
SEC. 2. LEASING PROCESS.
(a) Onshore Oil and Gas Leasing.--Section 17(a) of the Mineral
Leasing Act (30 U.S.C. 226(a)) is amended to read as follows:
``(a) Leasing Authority.--
``(1) In general.--All lands subject to disposition under
this Act that are known or believed to contain oil or gas
deposits may be leased by the Secretary.
``(2) Receipt of fair market value.--Leasing activities
under this Act shall be conducted to assure receipt of fair
market value for the lands and resources leased and the rights
conveyed by the United States.''.
(b) Competitive Bidding.--Section 17(b)(1)(A) of the Mineral
Leasing Act (30 U.S.C. 226(b)(1)(A)) is amended to read as follows:
``(A) Competitive bidding.--
``(i) In general.--All lands to be leased
under this section shall be leased as provided
in this paragraph to the highest responsible
qualified bidder by competitive bidding by
sealed bid.
``(ii) Geographic limitation.--The
Secretary shall lease lands under this
paragraph in units of not more than 2,560
acres, except in Alaska, where units shall be
not more than 5,760 acres. Such units shall be
as nearly compact as possible.
``(iii) Frequency.--Lease sales under this
section shall be held for each State in which
there are lands eligible for leasing no more
than 3 times each year and on a rotating basis
such that the lands under the responsibility of
any Bureau of Land Management field office are
available for leasing no more than one time
each year.
``(iv) Royalty.--A lease under this section
shall be conditioned upon the payment of a
royalty at a rate of not less than 18.5 percent
in amount or value of the production removed or
sold from the lease, except as otherwise
provided in this Act.
``(v) Issuance of lease.--The Secretary may
issue a lease under this section to the
responsible qualified bidder with the highest
bid that is equal to or greater than the
national minimum acceptable bid. The Secretary
shall decide whether to accept a bid and issue
a lease within 90 days following payment by the
successful bidder of the remainder of the bonus
bid, if any, and annual rental for the first
lease year.
``(vi) Rejection of bid.--The Secretary may
reject a bid above the national minimum
acceptable bid if, after evaluation of the
value of the lands proposed for lease, the
Secretary determines that the bid amount does
not ensure that fair market value is obtained
for the lease.''.
(c) National Minimum Acceptable Bid.--Subparagraph (B) of section
17(b)(1) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)), is amended
to read as follows:
``(B) National minimum acceptable bid.--
``(i) In general.--The national minimum
acceptable bid shall be $5 per acre. All bids
under this section for less than the national
minimum acceptable bid shall be rejected.
``(ii) Raising the national minimum
acceptable bid.--The Secretary may establish a
higher national minimum acceptable bid--
``(I) beginning at the end of the
four year period that begins on the
date of enactment of the Restoring
Community Input and Public Protection
in Oil and Gas Leasing Act of 2020, at
least once every 4 years, to reflect
the change in the Consumer Price Index
for All Urban Consumers published by
the Bureau of Labor Statistics; and
``(II) at any time if the Secretary
finds that such a higher amount is
necessary to enhance financial returns
to the United States or to promote more
efficient management of oil and gas
resources on Federal lands.
``(iii) Not a major federal action.--The
proposal or issuance of any regulation to
establish a higher national minimum acceptable
bid under clause (ii) shall not be considered a
major Federal action that is subject to the
requirements of section 102(2)(C) of the
National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)).''.
(d) Rentals.--Section 17(d) of the Mineral Leasing Act (30 U.S.C.
226(d)) is amended to read as follows:
``(d) Annual Rentals.--All leases issued under this section shall
be conditioned upon the payment by the lessee of a rental of--
``(1) not less than $3.00 per acre per year during the 2-
year period beginning on the date the lease begins for new
leases, and after the end of such two year period not less than
$5 per acre per year; or
``(2) such higher rental rate as the Secretary may
establish if the Secretary finds that such action is necessary
to enhance financial returns to the United States and promote
more efficient management of oil and gas and alternative energy
resources on Federal lands.''.
(e) Elimination of Noncompetitive Leasing.--The Mineral Leasing Act
(30 U.S.C. 181 et seq.) is amended--
(1) in section 17(b) (30 U.S.C. 226(b)), by striking
paragraph (3);
(2) by amending section 17(c) (30 U.S.C. 226(c)) to read as
follows:
``(c) Lands made available for leasing under subsection (b)(1) but
for which no bid is accepted may be made available by the Secretary for
a new round of sealed bidding under such subsection.'';
(3) in section 17(e) (30 U.S.C. 226(e))--
(A) by striking ``Competitive and noncompetitive
leases'' and inserting ``Leases, including leases for
tar sand areas,''; and
(B) by striking ``Provided, however'' and all that
follows through ``ten years.'';
(4) in section 31(d)(1) (30 U.S.C. 188(d)(1)) by striking
``or section 17(c)'';
(5) in section 31(e) (30 U.S.C. 188(e))--
(A) in paragraph (2) by striking ``, or the
inclusion'' and all that follows and inserting a
semicolon; and
(B) in paragraph (3) by striking ``(A)'' and by
striking subparagraph (B);
(6) by striking section 31(f) (30 U.S.C. 188(f)); and
(7) in section 31(g) (30 U.S.C. 188(g))--
(A) in paragraph (1) by striking ``as a
competitive'' and all that follows through the period
and inserting ``in the same manner as the original
lease issued pursuant to section 17.'';
(B) by striking paragraph (2) and redesignating
paragraphs (3) and (4) as paragraphs (2) and (3),
respectively; and
(C) in paragraph (2), as redesignated, by striking
``, applicable to leases issued under subsection 17(c)
of this Act (30 U.S.C. 226(c)) except,'' and inserting
``, except''.
(f) Lease Term.--Section 17(e) of the Mineral Leasing Act (30
U.S.C. 226(e)) is amended by striking ``10 years:'' and inserting ``5
years.''.
(g) Other Leasing Requirements.--Section 17(g) of the Mineral
Leasing Act (30 U.S.C. 226(g)), as amended by section 8 of this Act, is
further amended--
(1) by striking ``The Secretary'' at the beginning and
inserting ``(1) In general.--The Secretary''; and
(2) by adding at the end the following:
``(2) Limitation.--The Secretary shall not issue a lease or
approve the assignment of any lease to any person, or to any
subsidiary or affiliate of such person or any other person
controlled by or under common control with such person, unless
such person has the demonstrated capability to explore and
produce oil and gas under the lease.
``(3) Protection of leased lands for other uses.--Each
lease under this section shall include such terms as are
necessary to preserve the United States flexibility to control
or prohibit activities that pose serious and unacceptable
impacts to the value of the leased lands for uses other than
production of oil and gas.''.
SEC. 3. TRANSPARENCY AND LANDOWNER PROTECTIONS.
(a) Disclosure of Identities Filing Disclosures of Interest and
Bids.--Section 17(b) of the Mineral Leasing Act (30 U.S.C. 226(b)), as
amended by this Act, is further amended by adding at the end the
following:
``(3) Bidder identity.--The Secretary--
``(A) shall require that each expression of
interest to bid for a lease under this section and each
bid for a lease under this section shall include the
name of the person for whom such expression of interest
or bid is submitted; and
``(B) shall promptly publish each such name.''.
(b) Notice Requirements.--Section 17(f) of the Mineral Leasing Act
(30 U.S.C. 226(f)) is amended by striking ``At least'' and all that
follows through ``agencies.'' and inserting the following:
``(1) Required notice.--At least 45 days before offering
lands for lease under this section, and at least 30 days before
approving applications for permits to drill under the
provisions of a lease, modifying the terms of any lease issued
under this section, or granting a waiver, exception, or
modification of any stipulation of a lease issued under this
section, the Secretary shall provide notice of the proposed
action to--
``(A) the general public by posting such notice in
the appropriate local office and on the electronic
website of the leasing and land management agencies
offering the lands for lease;
``(B) all surface land owners in the area of the
lands being offered for lease; and
``(C) the holders of special recreation permits for
commercial use, competitive events, and other organized
activities on the lands being offered for lease.
``(2) Required information.--''.
(c) Surface Owner Protection.--
(1) Post-lease surface use agreement.--
(A) In general.--Except as provided in paragraph
(2), the Secretary may not authorize any operator to
conduct exploration and drilling operations on lands
with respect to which title to oil and gas resources is
held by the United States but title to the surface
estate is not held by the United States, until the
operator has filed with the Secretary a document,
signed by the operator and the surface owner or owners,
showing that the operator has secured a written surface
use agreement between the operator and the surface
owner or owners that meets the requirements of
subparagraph (B).
(B) Contents.--The surface use agreement shall
provide for--
(i) the use of only such portion of the
surface estate as is reasonably necessary for
exploration and drilling operations based on
site-specific conditions;
(ii) the accommodation of the surface
estate owner to the maximum extent practicable,
including the location, use, timing, and type
of exploration and drilling operations,
consistent with the operator's right to develop
the oil and gas estate;
(iii) the reclamation of the site to a
condition capable of supporting the uses which
such lands were capable of supporting prior to
exploration and drilling operations; and
(iv) compensation for damages as a result
of exploration and drilling operations,
including--
(I) loss of income and increased
costs incurred;
(II) damage to or destruction of
personal property, including crops,
forage, and livestock; and
(III) failure to reclaim the site
in accordance with clause (iii).
(C) Procedure.--
(i) Notice of intent to conclude
agreement.--An operator shall notify the
surface estate owner or owners of the
operator's desire to conclude an agreement
under this section. If the surface estate owner
and the operator do not reach an agreement
within 90 days after the operator has provided
such notice, the operator may submit the matter
to third-party arbitration for resolution
within a period of 90 days. The cost of such
arbitration shall be the responsibility of the
operator.
(ii) List of arbitrators.--The Secretary
shall identify persons with experience in
conducting arbitrations and shall make this
information available to operators.
(iii) Referral.--Referral of a matter for
arbitration by an operator to an arbitrator
identified by the Secretary pursuant to clause
(ii) shall be sufficient to constitute
compliance with clause (i).
(D) Attorneys fees.--If action is taken to enforce
or interpret any of the terms and conditions contained
in a surface use agreement, the prevailing party shall
be reimbursed by the other party for reasonable
attorneys fees and actual costs incurred, in addition
to any other relief which a court or arbitration panel
may grant.
(2) Authorized exploration and drilling operations.--
(A) Authorization without surface use agreement.--
The Secretary may authorize an operator to conduct
exploration and drilling operations on lands covered by
paragraph (1) in the absence of an agreement with the
surface estate owner or owners, if--
(i) the Secretary makes a determination in
writing that the operator made a good faith
attempt to conclude such an agreement,
including referral of the matter to arbitration
pursuant to paragraph (1)(C), but that no
agreement was concluded within 90 days after
the referral to arbitration;
(ii) the operator submits a plan of
operations that provides for the matters
specified in paragraph (1)(B) and for
compliance with all other applicable
requirements of Federal and State law; and
(iii) the operator posts a bond or other
financial assurance in an amount the Secretary
determines to be adequate to ensure
compensation to the surface estate owner for
any damages to the site, in the form of a
surety bond, trust fund, letter of credit,
government security, certificate of deposit,
cash, or equivalent.
(B) Surface owner participation.--The Secretary
shall provide surface estate owners with an opportunity
to--
(i) comment on plans of operations in
advance of a determination of compliance with
this Act;
(ii) participate in bond level
determinations and bond release proceedings
under this section;
(iii) attend an on-site inspection during
such determinations and proceedings;
(iv) file written objections to a proposed
bond release; and
(v) request and participate in an on-site
inspection when they have reason to believe
there is a violation of the terms and
conditions of a plan of operations.
(C) Payment of financial guarantee.--A surface
estate owner with respect to any land subject to a
lease may petition the Secretary for payment of all or
any portion of a bond or other financial assurance
required under this section as compensation for any
damages as a result of exploration and drilling
operations. Pursuant to such a petition, the Secretary
may use such bond or other guarantee to provide
compensation to the surface estate owner for such
damages.
(D) Bond release.--Upon request and after
inspection and opportunity for surface estate owner
review, the Secretary may release the financial
assurance required under this section if the Secretary
determines that exploration and drilling operations are
ended and all damages have been fully compensated.
(3) Surface owner notification.--The Secretary shall notify
surface estate owners in writing--
(A) not less than 45 days before lease sales;
(B) of the identity of the lessee, not more than 10
business days after a lease is issued;
(C) concerning any subsequent request or decision
regarding a lease not more than 5 business days after
such request or decision, including regarding
modification of a lease, waiver of a stipulation, or
approval of a right of way; and
(D) not more than 5 business days after issuance of
a drilling permit under a lease.
SEC. 4. LEASE STIPULATIONS.
(a) Energy Policy Act of 2005.--Section 363(b)(3)(C) of the Energy
Policy Act of 2005 (42 U.S.C. 15922(b)(3)(C)) is amended to read as
follows:
``(C) adequately protective of the resource for
which the stipulations are applied;''.
(b) Revision of Existing Memorandum.--Not later than 180 days after
the date of the enactment of this Act the Secretary of the Interior and
the Secretary of Agriculture shall revise the memorandum of
understanding under section 363(b)(3)(C) of the Energy Policy Act of
2005 (42 U.S.C. 15922) in accordance with the amendment made by
subsection (a).
SEC. 5. MASTER LEASING PLANS.
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)), as
amended by section 2, is further amended by adding at the end the
following:
``(3) Master leasing plans.--
``(A) In general.--The Secretary may adopt and
implement a master leasing plan to govern the issuance
of oil and gas leases under this Act for any Federal
lands, in accordance with Bureau of Land Management
Instruction Memorandum No. 2010-117, dated May 17,
2010, as in effect on April 24, 2017.
``(B) Factors and considerations.--In deciding
whether to adopt and implement a master leasing plan,
the Secretary--
``(i) shall consider the criteria set forth
in Bureau of Land Management Instruction
Memorandum No. 2010-117, dated May 17, 2010, as
in effect on April 24, 2017; and
``(ii) shall consider the benefits of
avoiding conflicts between mineral leasing and
other land uses, including conservation,
recreation, and protection of cultural and
historic resources.
``(C) State request.--The Secretary shall adopt and
implement a master leasing plan under subparagraph (A)
applicable to leases for Federal lands in a State or
county of a State, if requested by the government of
such State or county, respectively.
``(D) Request by an individual.--
``(i) In general.--Any individual who is a
resident of a State or county of a State may
submit a petition to the Secretary requesting
that the Secretary adopt and implement a master
leasing plan under subparagraph (A) applicable
to the issuance of leases for Federal lands in
such State or county, respectively.
``(ii) Consideration.--If the Secretary
receives such a petition, the Secretary shall,
not later than 60 days after receiving such
petition, issue a determination of whether or
not the adoption and implementation of such a
master leasing plan is appropriate.''.
SEC. 6. PARCEL REVIEW.
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)), as
amended by sections 2 and 5 of this Act, is further amended by adding
at the end the following:
``(4) Parcel review.--The Secretary shall issue oil and gas
leases under this Act only in accordance with subsections C
through I of section III of Bureau of Land Management
Instruction Memorandum No. 2010-117, dated May 17, 2010, as in
effect on April 24, 2017.''.
SEC. 7. ACREAGE LIMITATIONS.
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1))
is amended by striking ``, and acreage under any lease any portion of
which has been committed to a federally approved unit or cooperative
plan or communitization agreement or for which royalty (including
compensatory royalty or royalty in-kind) was paid in the preceding
calendar year,''.
SEC. 8. LAND MANAGEMENT.
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)), as
amended by section 2(g) of this Act, is further amended by adding at
the end the following:
``(4) Multiple-use management.--The Secretary, and for
National Forest lands, the Secretary of Agriculture, shall
manage lands that are subject to an oil and gas lease under
this Act in accordance with the principles, policies, and
requirements relating to multiple use under the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.),
until the beginning of operations on such lease.''.
SEC. 9. OIL SHALE.
Section 21(a) of the Mineral Leasing Act (30 U.S.C. 241(a)) is
amended--
(1) in paragraph (1), by striking ``The Secretary of the
Interior'' and inserting ``Subject to paragraph (6), the
Secretary of the Interior''; and
(2) by adding at the end the following:
``(6) Beginning on the date of enactment of the Restoring
Community Input and Public Protections in Oil and Gas Leasing
Act of 2020, The Secretary may not issue any lease for oil
shale under this Act before the date the Secretary issues a
finding that the technical and economic feasibility of
development of and production from such deposit has been
demonstrated under section 369 of the Energy Policy Act of 2005
(42 U.S.C. 15927).''.
SEC. 10. TRANSPARENCY IN MANAGEMENT OF LEASES.
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)), as
amended by sections 2, 5, and 6 of this Act, is further amended by
adding at the end the following:
``(5) Transparency in management of leases.--For each lease
under this section, the Secretary shall make available on a
public website--
``(A) the identity of--
``(i) each person who is or has been a
lessee under the lease; and
``(ii) each person who is or has been an
operator under the lease;
``(B) notice of each transfer of the lease; and
``(C) notice of each suspension of operations, each
suspension of production, and each suspension of
operations and production.''.
SEC. 11. LEASE CANCELLATION FOR IMPROPER ISSUANCE.
Section 31(b) of the Mineral Leasing Act (30 U.S.C. 188(b)) is
amended by inserting ``if the lease was improperly issued or'' after
``30 days notice''.
SEC. 12. FEES FOR EXPRESSIONS OF INTEREST.
The Secretary of the Interior shall charge any person who submits
an expression of interest, as that term is defined by the Secretary, a
fee, in an amount determined by the Secretary to be appropriate in
aggregate to cover the aggregate cost of processing expressions of
interest.
Union Calendar No. 572
116th CONGRESS
2d Session
H. R. 3225
[Report No. 116-689, Part I]
_______________________________________________________________________
A BILL
To amend the Mineral Leasing Act to make certain adjustments in leasing
on Federal lands for oil and gas drilling, and for other purposes.
_______________________________________________________________________
December 24, 2020
Reported from the Committee on Natural Resources with an amendment
December 24, 2020
Committee on Agriculture discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed