[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6860 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6860

 To exempt exploration, development, and production of oil and natural 
    gas under leases on Federal lands from State environmental and 
            pollution control laws, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 10, 2008

Mrs. Blackburn introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To exempt exploration, development, and production of oil and natural 
    gas under leases on Federal lands from State environmental and 
            pollution control laws, 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 ``Oil and Gas Lease Reform Act of 
2008''.

SEC. 2. ENVIRONMENTAL REVIEW PROCESS.

    (a) Preemption of State Law.--No State environmental or pollution 
control law regulating the emission of pollutants or protecting human 
health or the environment shall apply to any activity under a lease for 
the exploration, development, or production of oil or natural gas on 
Federal lands (including submerged lands), including any such State law 
that is expressly applicable to such activity under any other provision 
of Federal law.
    (b) Conforming Amendments.--
            (1) Section 25 of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1351) is amended--
                    (A) by striking subsection (d); and
                    (B) in subsection (h)--
                            (i) in paragraph (1) by striking ``Any 
                        modification required by the Secretary'' and 
                        all that follows through the end of the 
                        sentence;
                            (ii) in paragraph (1) by striking 
                        subparagraph (B);
                            (iii) in paragraph (2)(A) by striking 
                        clause (ii); and
                            (iv) in paragraph (2)(B) by striking clause 
                        (ii).
            (2) Section 202(c) of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1712(c)) is amended--
                    (A) in paragraph (8), by striking ``State and''; 
                and
                    (B) in paragraph (9)--
                            (i) by striking ``and of the States'' and 
                        all that follows through ``897), as amended,'' 
                        ;
                            (ii) by striking ``of approved State and'';
                            (iii) by striking ``State, local, and'';
                            (iv) by striking ``non-Federal 
                        Governmental''; and
                            (v) by striking the last sentence.

SEC. 3. PREVENTION OF UNNECESSARY OR UNDUE DEGRADATION OF PUBLIC LANDS.

    Section 302(b) of the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1732(b)) is amended by inserting ``(1)'' before the 
first sentence, and by adding at the end the following:
    ``(2) For purposes of application of this subsection with respect 
to a lease for the exploration, development, or production of oil or 
natural gas, the term `unnecessary or undue degradation' means (A) 
surface or submerged disturbance greater than what would normally 
result when an activity is being accomplished by a prudent operator in 
usual, customary, and proficient operations of similar character and 
taking into considerations the effect of operations on other resources 
and land uses, including those resources and uses outside the area of 
operations; (B) failure to initiate and complete reasonable mitigation 
measures, including the attainment of a level of protection or 
reclamation required by specific Federal law in areas such as the 
California Desert Conservation Area, Wild and Scenic Rivers, Bureau of 
Land Management-administered portions of the National Wilderness 
System, and Bureau of Land Management-administered National Monuments 
and National Conservation Areas; (C) failure to comply with applicable 
Federal environmental statutes and regulations thereunder; or (D) 
failure to abide by the terms and conditions of an approved plan of 
operations and operations described in a complete notice.''.

SEC. 4. CONDITION FOR SUSPENSION OF LEASE.

    (a) Federal Land Policy and Management Act of 1976.--Section 302(c) 
of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1732(c)) is amended by inserting ``(1)'' before the first sentence, and 
by adding at the end the following:
    ``(2)(A) The Secretary may not suspend any lease for the 
exploration, development, or production of oil or natural gas, unless--
            ``(i) the Secretary determines, based on clear proof, that 
        operations under the lease will present an imminent threat or 
        harm to public safety or will significantly damage the public 
        lands outside lease stipulations; or
            ``(ii) the suspension is requested by the lessee.
    ``(B) The Secretary shall review any suspension of a lease under 
subparagraph (A)(i) at least once every 30 days, and may renew such a 
suspension only after such a review.
    ``(C) Any suspension by the Secretary of a lease under subparagraph 
(A)(i) for more than a total of 90 days in any 6-month period is deemed 
to be a breach of a contractual obligation of the United States, if--
            ``(i) the lessee is taking action to mitigate the condition 
        that was the reason for the suspension; and
            ``(ii) such action is preventing the imminent threat, harm, 
        or significant damage.
    ``(D) In the case of a breach under of contractual obligation, 
under subparagraph (C)--
            ``(i) the lessee shall be awarded contract damages; and
            ``(ii) the lessee may--
                    ``(I) retain the lease, and reapply upon submission 
                to the Secretary of an application that includes 
                procedures to address the reasons for the suspensions; 
                or
                    ``(II) surrender the lease and be refunded the 
                amounts paid by the lessee to the United States as a 
                bonus bid for the lease.
    ``(E) The term of a lease shall be extended by the period of each 
suspension of the lease under subparagraph (A).
    ``(F) The maximum period of time a lease may be suspended by 
request under subparagraph (A)(ii) is 2 years for each 5-year period of 
the original term of the lease.
    ``(G) In this paragraph the term `significantly damage' means 
destroy 5 percent of more of wildlife and flora in the area that is 
subject to a the lease, or destroy historical structures in excess of 
the terms under permits and plans approved by the Secretary pursuant to 
the lease.''.
    (b) Mineral Leasing Act.--Section 17 of the Mineral Leasing Act (30 
U.S.C. 226) is amended by adding at the end the following:
    ``(q)(1) The Secretary may not suspend any lease under this Act for 
the exploration, development, or production of oil or natural gas, 
unless--
            ``(A) the Secretary determines, based on clear proof, that 
        operations under the lease will present an imminent threat or 
        harm to public safety or will significantly damage the public 
        lands; or
            ``(B) the suspension is requested by the lessee.
    ``(2) The Secretary shall review any suspension of a lease under 
paragraph (1)(A) at least once every 30 days, and may renew such a 
suspension only after such a review.
    ``(3) Any suspension by the Secretary of a lease under paragraph 
(1)(A) for more than a total of 90 days in any 6-month period is deemed 
to be a breach of a contractual obligation of the United States, if--
            ``(A) the lessee is taking action to mitigate the condition 
        that was the reason for the suspension; and
            ``(B) such action is preventing the imminent threat, harm, 
        or significant damage.
    ``(4) In the case of a breach under of contractual obligation, 
under paragraph (3)--
            ``(A) the lessee shall be awarded contract damages; and
            ``(B) the lessee may--
                    ``(i) retain the lease, and reapply upon submission 
                to the Secretary of an application that includes 
                procedures to address the reasons for the suspension; 
                or
                    ``(ii) surrender the lease and be refunded the 
                amounts paid by the lessee to the United States as a 
                bonus bid for the lease.
    ``(5) The term of a lease shall be extended by the period of each 
suspension of the lease under paragraph (1).
    ``(6) The maximum period of time a lease may be suspended by 
request under paragraph (1)(B) is 2 years for each 5-year period of the 
original term of the lease.
    ``(7) In this subsection the term `significantly damage' means 
destroy 5 percent of more of wildlife and flora in the area that is 
subject to a the lease, or destroy historical structures in excess of 
the terms under permits and plans approved by the Secretary pursuant to 
the lease.''.
    (c) Outer Continental Shelf Lands Act.--Section 5 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1334) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by striking ``(A) at the 
                request'' and all that follows through the end of the 
                paragraph and inserting ``in accordance with subsection 
                (k)''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) with respect to cancellation of any lease or permit, 
        that comply with subsection (k);''; and
            (2) by adding at the end the following:
    ``(k)(1) The Secretary may not suspend any lease under this Act for 
the exploration, development, or production of oil or natural gas, 
unless--
            ``(A) the Secretary determines, based on clear proof, that 
        operations under the lease will present an imminent threat or 
        harm to public safety or will significantly damage the public 
        lands; or
            ``(B) the suspension is requested by the lessee.
    ``(2) The Secretary shall review any suspension of a lease under 
paragraph (1)(A) at least once every 30 days, and may renew such a 
suspension only after such a review.
    ``(3) Any suspension by the Secretary of a lease under paragraph 
(1)(A) for more than a total of 90 days in any 6-month period is deemed 
to be a breach of a contractual obligation of the United States, if--
            ``(A) the lessee is taking action to mitigate the condition 
        that was the reason for the suspension; and
            ``(B) such action is preventing the imminent threat, harm, 
        or significant damage.
    ``(4) In the case of a breach under of contractual obligation, 
under paragraph (3)--
            ``(A) the lessee shall be awarded contract damages; and
            ``(B) the lessee may--
                    ``(i) retain the lease, and reapply upon submission 
                to the Secretary of an application that includes 
                procedures to address the reasons for the suspension; 
                or
                    ``(ii) surrender the lease and receive such 
                compensation as the lessee shows necessary to the 
                Secretary as being greater of--
                            ``(I) the fair value of the canceled rights 
                        as of the date of cancellation, taking account 
                        of both anticipated revenues from the lease and 
                        anticipated costs, including costs of 
                        compliance with all applicable regulations and 
                        operating orders, liability for cleanup costs 
                        or damages, or both, in the case of an oil 
                        spill, and all other costs reasonably 
                        anticipated on the lease, or
                            ``(II) the excess, if any, over the 
                        lessee's revenues, from the lease (plus 
                        interest thereon from the date of receipt to 
                        date of reimbursement) of all consideration 
                        paid for the lease and all direct expenditures 
                        made by the lessee after the date of issuance 
                        of such lease and in connection with 
                        exploration or development, or both, pursuant 
                        to the lease (plus interest on such 
                        consideration and such expenditures from date 
                        of payment to date of reimbursement),
                except that with respect to leases issued before 
                September 18, 1978, such compensation shall be equal to 
                the amount specified in subclause (I) of this clause, 
                and that in the case of joint leases which are canceled 
                due to the failure of one or more partners to exercise 
                due diligence, the innocent parties shall have the 
                right to seek damages for such loss from the 
                responsible party or parties and the right to acquire 
                the interests of the negligent party or parties and be 
                issued the lease in question.
    ``(5) The term of a lease shall be extended by the period of each 
suspension of the lease under paragraph (1).
    ``(6) The maximum period of time a lease may be suspended by 
request under paragraph (1)(B) is 2 years for each 5-year period of the 
original term of the lease.
    ``(7) In this subsection the term `significantly damage' means--
            ``(A) destroy 5 percent or more of fish and other aquatic 
        life in the area that is subject to the lease;
            ``(B) destroy 5 percent or more of the marine environment 
        within one mile of the area that is subject to the lease, 
        including the area within the lease; or
            ``(C) destroy 5 percent or more of the coastal environment 
        that is nearest to the area that is subject to the lease.''.

SEC. 5. LIMITATION ON REQUIREMENT TO CONDUCT ENVIRONMENTAL REVIEWS FOR 
              A LEASE.

    (a) In General.--No statement is required under section 102(2)(C) 
of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) 
for a lease for the exploration, development, or production of oil or 
natural gas on Federal lands (including any lease under the Outer 
Continental Shelf Lands Act, the Mineral Leasing Act, the Mineral 
Leasing Act for Acquired Lands, or any other Federal law), except for--
            (1) sale of the lease by the lessee; and
            (2) as provided in subsection (b).
    (b) Permits for Exploration, Development, Production and 
Infrastructure.--
            (1) In general.--The Secretary of the Interior shall 
        prepare a single statement under such section, and conduct a 
        single review for that purpose, with respect to all plans and 
        permits required for exploration, development, production, and 
        construction of infrastructure to be carried out under the 
        lease, upon submission by the lessee of a request under this 
        subsection.
            (2) Contents of request.--The lessee shall include in the 
        request a comprehensive plan that includes all plans and 
        applications for all permits referred to in paragraph (1).
            (3) Limitation on other reviews.--Upon submission of a 
        request under this subsection, no Federal agency or official, 
        other than the Secretary, may conduct any review or issue any 
        other statement under 102(2)(C) of the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4332(2)(C)) for activities under 
        the lease.
            (4) Submission of comment.--The head of any Federal agency 
        with authority to administer any Federal law that applies to 
        activities under such a lease may submit comments to the 
        Secretary regarding such request.
            (5) Requirement to issue permits.--If the Secretary 
        determines, after reviewing all comments submitted under 
        paragraph (4), that the comprehensive plan complies with the 
        requirements of such section--
                    (A) each Federal official responsible for 
                administering any law under which a such a permit is 
                required shall issue such permit within the 60-day 
                period beginning on the date the Secretary issues the 
                determination, unless such official files an appeal of 
                the determination in the District of Columbia Court of 
                Appeals filed before the end of that period; and
                    (B) operations under the lease and such permits may 
                commence immediately upon the issuance of a final 
                decision in all such appeals, except as otherwise 
                provided in such a decision.
            (6) Period to begin production.--For purposes of any 
        requirement under Federal law that production of oil or gas 
        under such a lease begin within a specified period, such period 
        shall begin upon the later of--
                    (A) the expiration of the period referred to in 
                paragraph (5)(A); and
                    (B) this issuance of a final decision in all 
                appeals filed in accordance with that paragraph.
            (7) Regulations.--The Secretary shall issue such 
        regulations as are necessary to issue this subsection.

SEC. 6. APPEALS PROCESS.

    Notwithstanding section 554(f) of title 5, United States Code, any 
appeal of a decision of an officer of the Department of the Interior or 
an administrative law judge regarding any lease for the exploration, 
development, or production of oil or natural gas on Federal lands 
(including submerged lands) or an matter under or with respect to such 
a lease shall be in accordance with the following:
            (1) Within 60 days after the issuance of the decision, the 
        appellant shall file a notice of appeal with the appellee and 
        the Secretary of the Interior that includes a statement of 
        reasons, arguments, briefs, and a request for a hearing.
            (2) Within 30 days after receipt of such notice of appeal, 
        the Secretary shall decide whether to hold an administrative 
        hearing pursuant to the request. If the Secretary decides not 
        to hold such a hearing, the decision of the officer or judge is 
        a final agency action.
            (3) Within 60 days after the Secretary holds such a 
        hearing, the Secretary shall issue a final decision on the 
        appeal. If the Secretary fails to issue a final decision in 
        that period, the Secretary is deemed to have found in favor of 
        the appellee. Such final decision or finding is deemed to be a 
        final agency action.
            (4) Any judicial appeal by the appellant of such a final 
        agency action may only be filed--
                    (A) in the District of Columbia Court of Appeals; 
                and
                    (B) within 60 days after the end of the period 
                referred to in paragraph (3).
            (5) If a final decision by the District of Columbia Court 
        of Appeals in such judicial appeal is not issued within 1 year 
        after the date the judicial appeal is filed--
                    (A) the court is deemed to have decided the appeal 
                in favor of the appellee; and
                    (B) no court has jurisdiction over the appeal 
                except the Supreme Court.
            (6) Any administrative or judicial appeal of a decision by 
        the Department of the Interior regarding a statement under 
        section 102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C)) or any similar environmental 
        analysis must be countered by a similar assessment conducted by 
        the appellant that shows that the Department--
                    (A) did not follow accepted scientific methods in 
                reaching its decision; and
                    (B) is arbitrary and capricious.
            (7) If the suit is determined by the court to have no basis 
        in fact or law, the appellant shall be liable to the appellee 
        for attorney and witness fees and court costs, except in the 
        case of an indigent party. If one or more 3rd parties 
        contributed assistance to the indigent party to bring suit or 
        reasonable incident actions related to suit, then 3rd parties 
        shall be liable for such fees and costs. If any of such 
        assistance was directly paid to the indigent party, the 
        indigent party may be held liable for fees and costs to the 
        extent of the amount received.

SEC. 7. CITIZEN SUITS, ENFORCEMENT ACTIONS, AND APPEALS UNDER THE OUTER 
              CONTINENTAL SHELF LANDS ACT.

    (a) Restriction on Actions by Noncitizens and Federal Agencies.--
Section 23(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1349(a)(1)) is amended by adding at the end the following: ``No such 
civil action may be commenced by a person that is not a United States 
citizen, a State, or a United States incorporated or unincorporated 
company or corporation established under the laws of a State. No such 
civil action may be commenced by a Federal officer or agency, except 
the Secretary of the Interior.''.
    (b) Limitation on Actions and Intervention in Case of Suits by 
Attorney General.--Section 23(a)(2)(B) of such Act (43 U.S.C. 
1349(a)(2)(B)) is amended--
            (1) by inserting ``or criminal'' after ``civil''; and
            (2) by striking ``, but in any such action'' and all that 
        follows and inserting a period.
    (c) Recovery for Frivolous Actions.--
            (1) Citizen suits.--Section 23 of such Act (43 U.S.C. 1349) 
        is amended by adding at the end the following:
    ``(d) If an action under this section is determined by the court to 
have no basis in fact or law, the plaintiff shall be liable to the 
defendant for attorney and witness fees and court costs, except in the 
case of an indigent party. If one or more 3rd parties contributed 
assistance to the indigent party to bring suit or reasonable incident 
actions related to suit, then the 3rd parties shall be liable for such 
fees and costs. If any of such assistance was directly paid to the 
indigent party, the indigent party may be held liable for fees and 
costs to the extent of the amount received.''.
            (2) Civil enforcement actions.--Section 24 of such Act (43 
        U.S.C. 1350) is amended by adding at the end the following:
    ``(f) If an action under this section is determined by the court to 
have no basis in fact or law, the plaintiff shall be liable to the 
defendant for attorney and witness fees and court costs.''.
    (d) Appellate Jurisdiction.--
            (1) Citizen suits.--Section 23(b)(1) of such Act (43 U.S.C. 
        1349(b)(1)) is amended by adding at the end the following: 
        ``Any appeal of a decision in such a proceeding brought against 
        a Federal agency or a lessee under this Act shall be brought in 
        the District of Columbia Court of Appeals.''.
            (2) Actions by secretary on exploration or development and 
        production plan.--Section 23(c)(2) of such Act (43 U.S.C. 
        1349(c)(2)) is amended by striking ``shall be subject'' and all 
        that follows and inserting ``shall be subject to judicial 
        review only in the District of Columbia Court of Appeals.''.
    (e) Actions for Damages.--Section 23(b)(2) of such Act (43 U.S.C. 
1349(b)(2)) is amended by striking ``resident of the United States who 
is injured'' and inserting ``citizen of the United States or United 
States incorporated or unincorporated company or corporation that is 
injured, or State that is injured,''.

SEC. 8. REVIEW OF RESTRICTING OF DRILLING DURING CERTAIN PERIODS OF THE 
              YEAR.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of the Interior, acting through the Bureau of Land 
Management, shall review and report to the Congress regarding 
restricting drilling under oil and gas leases on Federal lands in the 
Intermountain West during certain periods of the year. The Secretary 
shall include in the report a determination of whether it would be 
better to limit such restrictions to allow drilling an area quickly, 
rather than causing extended disturbance by drilling over several 
years.

SEC. 9. RELIANCE ON ENVIRONMENTAL INFORMATION.

    (a) In General.--Reliance by a Federal agency on environmental 
information included in the statement or other documents required under 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)) with respect to the leasing of Federal lands 
(including submerged lands) for exploration, development, or production 
of oil or natural gas, in taking any action to address a matter that 
arose after purchase of a lease by a lessee with respect to 
exploration, development, production, or transportation under the lease 
shall not invalidate such a lease, and shall not result in suspension 
of activities under the lease unless it presents an imminent threat to 
public safety.
    (b) Review.--The Secretary of the Interior may review any such 
action to determine what modifications should be made by lessee in 
activities under the a lease to resolve the matter.
    (c) Judicial Review.--The District of Columbia Court of Appeals has 
exclusive jurisdiction over any action seeking review of any action by 
a Federal agency taken in reliance on information referred to in 
subsection (a). In any such action, the appellant has the burden to 
prove that the agency's actions were not reasonable and clearly did not 
meet accepted standards for mitigation.

SEC. 10. USE OF ADJOINING LEASE TRACT.

    In any case in which logical exploration for or development of oil 
or natural gas under a lease of Federal lands (including submerged 
lands) for that purpose cannot proceed without acquisition or 
participation of adjoining land that is not available, the Secretary of 
the Interior may allow temporary use of such land by the lessee for 
such exploration and development unless it is owned by or under lease 
to another person. No lease or statement under 102(2)(C) of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) shall 
be required for such use if the use is minimal and will have minimal 
environmental effect on such adjoining Federal land.
                                 <all>