[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1503 Reported in House (RH)]
<DOC>
Union Calendar No. 452
117th CONGRESS
2d Session
H. R. 1503
[Report No. 117-628, 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
March 2, 2021
Mr. Levin of California (for himself, Mr. Grijalva, Mr. Lowenthal, Mr.
Nadler, Ms. Norton, Ms. Bonamici, Mr. Garcia of Illinois, Ms. Lee of
California, Ms. Porter, and Ms. Brownley) 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 14, 2022
Additional sponsors: Mr. Blumenauer, Mr. Welch, Mr. Cleaver, Ms.
DeGette, Ms. McCollum, Mr. Cohen, and Mr. Soto
December 14, 2022
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 14, 2022
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 March
2, 2021]
_______________________________________________________________________
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 2021''.
SEC. 2. LEASING PROCESS.
(a) Onshore Oil and Gas Leasing.--Section 17 of the Mineral Leasing
Act (30 U.S.C. 226(a)) is amended by striking the matter preceding
``(a) All lands'' and all that follows through the end of subsection
(a) and inserting the following:
``SEC. 17. LEASING OF LAND CONTAINING OIL OR GAS DEPOSITS.
``(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) of the Mineral Leasing
Act (30 U.S.C. 226(b)(1)(A)) is amended by striking all that precedes
``(A) All lands'' and all that follows through the end of subparagraph
(A) and inserting the following:
``(b) Bidding.--
``(1) In general.--
``(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 18.75
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.--Except as provided in
clause (ii), for purposes of subparagraph (A),
the national minimum acceptable bid shall be
$10 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
4-year period that begins on the date
of enactment of the Restoring Community
Input and Public Protection in Oil and
Gas Leasing Act of 2021, and once every
4 years thereafter, 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 5-
year period beginning on the date the lease begins for new
leases, and after the end of such 5 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 for Which No Bid Is Accepted.--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 ``(g) The Secretary of the Interior'' and
inserting the following:
``(g) Other Leasing Requirements.--
``(1) In general.--The Secretary of the Interior''; 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 ``(f) At least'' and all that
follows through ``agencies.'' and inserting the following:
``(f) Requirements Prior to Offering Lands for Lease.--
``(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.--Section 17 of the Mineral Leasing
Act (30 U.S.C. 226), is amended by adding at the end the following:
``(r) Post-Lease Surface Use Agreement.--
``(1) 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).
``(2) Contents.--The surface use agreement shall provide
for--
``(A) the use of only such portion of the surface
estate as is reasonably necessary for exploration and
drilling operations based on site-specific conditions;
``(B) 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;
``(C) 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
``(D) 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).
``(3) 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.
``(4) 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. PARCEL REVIEW.
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)), as
amended by section 2 of this Act, is further amended by adding at the
end the following:
``(3) 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. 6. 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. 7. 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. 8. TRANSPARENCY IN MANAGEMENT OF LEASES.
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) 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. 9. 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. 10. FEES FOR EXPRESSIONS OF INTEREST.
(a) In General.--The Secretary 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 under paragraph (2).
(b) Amount.--The fee authorized under paragraph (1) shall be
established by the Secretary in an amount that is determined by the
Secretary to be appropriate to cover the aggregate cost of processing
an expression of interest under this section, but not less than $15 per
acre of the area covered by the applicable expression of interest.
(c) Adjustment of Fees.--The Secretary shall, by regulation at
least every 4 years, establish a higher expression of interest fee--
(1) to reflect the change in the Consumer Price Index for
All Urban Consumers published by the Bureau of Labor
Statistics; and
(2) as the Secretary determines to be necessary to enhance
financial returns to the United States or to promote more
efficient management of oil and gas resources on Federal land.
SEC. 11. PROTECTION OF WATER RESOURCES.
(a) Mineral Leasing Act Requirements.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended--
(1) in subsection (g) by striking ``lands or surface waters
adversely'' and inserting ``surface or ground waters or lands
adversely'';
(2) by redesignating subsection (p) as subsection (q); and
(3) by inserting after subsection (o) the following:
``(p) Water Requirements.--
``(1) An operator producing oil or gas (including coalbed
methane) under a lease issued under this Act shall--
``(A) replace the water supply of a water user who
obtains all or part of such user's supply of water from
an underground or surface source that has been affected
by contamination, diminution, or interruption
proximately resulting from drilling, fracking, or
production operations for such production;
``(B) ensure that if a surface or ground water
source is affected by contamination, diminution, or
interruption proximately resulting from such
production, best management practices and appropriately
available technologies are used to prevent, to the
maximum extent possible, the long-term or permanent
degradation of the surface or ground water source; and
``(C) comply with all applicable requirements of
Federal and State law with respect to--
``(i) discharge of any water produced under
the lease; and
``(ii) activities that would divert or
otherwise alter a surface or ground water
source or lead to a discharge not covered by
clause (i).
``(2) An application for a permit to drill under a lease
under this Act shall be accompanied by a proposed water
management plan including provisions to--
``(A) protect the quantity and quality of surface
and ground water systems, both on-site and off-site,
from adverse effects of the exploration, development,
and reclamation processes or to provide alternative
sources of water if such protection cannot be assured;
``(B) protect the rights of present users of water
that would be affected by operations under the lease,
including the discharge of any water produced in
connection with such operations that is not reinjected;
and
``(C) identify any agreements with other parties
for the beneficial use of produced waters and the steps
that will be taken to comply with State and Federal
laws related to such use.
``(3) The Secretary may not approve an application if the
Secretary determines that the applicant did not submit a water
management plan that meets the requirements described in
paragraph (2).''.
(b) Relation to State Law.--Nothing in this section or any
amendment made by this section shall be construed as--
(1) impairing or in any manner affecting any right or
jurisdiction of any State with respect to the waters of such
State; or
(2) limiting, altering, modifying, or amending any of the
interstate compacts or equitable apportionment decrees that
apportion water among and between States.
SEC. 12. FRACKING REGULATION ON FEDERAL LANDS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Secretary of the Interior, acting through the Bureau
of Land Management, shall issue regulations governing the use of
hydraulic fracturing under oil and gas leases for Federal lands.
(b) Included Provisions.--The regulations under this section shall
require--
(1) baseline water testing, the results of which shall be
posted on an appropriate internet website; and
(2) public disclosure of each chemical used for hydraulic
fracturing on an appropriate internet website.
(c) Interim Application of Prior Rule.--The final rule entitled
``Oil and Gas; Hydraulic Fracturing on Federal and Indian Lands'', as
published in the Federal Register March 26, 2015 (80 Fed. Reg. 16128),
and corrected by the rule published on March 30, 2015 (80 Fed. Reg.
16577), shall apply until the effective date of a final rule under
subsection (a).
SEC. 13. ENVIRONMENTAL ANALYSIS.
Any environmental analysis pursuant to the National Environmental
Policy Act (42 U.S.C. 4321 et seq.) required under this Act shall
include the estimated total cost of preparing the environmental
analysis, including full-time equivalent personnel hours, contractor
costs, and other direct costs.
SEC. 14. TAXPAYER FUNDING STEWARDSHIP.
In an effort to be good stewards of taxpayer dollars and
conscientious of the demands placed upon public servants, no provisions
contained within this Act shall require a duplication of analysis by
any government agency, individual, or contractor, at any level
including federal, state, local, or tribal and, if so determined, such
provision shall be considered non-binding.
Union Calendar No. 452
117th CONGRESS
2d Session
H. R. 1503
[Report No. 117-628, 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 14, 2022
Reported from the Committee on Natural Resources with an amendment
December 14, 2022
Committee on Agriculture discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed