I 112th CONGRESS 1st Session H. R. 3229 IN THE HOUSE OF REPRESENTATIVES October 14, 2011 Mr. Markey (for himself and Mr. Holt) introduced the following bill; which was referred to the Committee on Natural Resources A BILL To amend the Outer Continental Shelf Lands Act and the Mineral Leasing Act to require the Secretary of the Interior to issue regulations to prevent or minimize the venting and flaring of gas in oil and gas production operations in the United States, and for other purposes.

1.

Short title

This Act may be cited as the Fuel Loss Abatement and Royalty Enhancement Act or the FLARE Act.

2.

Regulations to prevent or minimize the venting and flaring of gas

(a)

Outer Continental Shelf Lands Act

The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended by inserting after section 9 the following:

10.

Regulations to prevent or minimize the venting and flaring of gas

(a)

In general

The Secretary shall issue regulations under this Act to prevent or minimize the venting and flaring of gas in oil and gas production operations in the United States and to promote the capture and beneficial use or reinjection of gas in such operations. (b)

Royalties

Regulations issued under this section shall include provisions that treat gas that is flared or vented in operations under a lease under this Act as production for which royalty is required to be paid to the United States.

. (b)

Mineral Leasing Act

The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by redesignating section 44 as section 45, and by inserting after section 43 the following:

44.

Regulations to prevent or minimize the venting and flaring of gas

(a)

In general

The Secretary shall issue regulations under this Act to prevent or minimize the venting and flaring of gas in oil and gas production operations in the United States and to promote the capture and beneficial use or reinjection of gas in such operations. (b)

Royalties

Regulations issued under this section shall include provisions that treat gas that is flared or vented in operations under a lease under this Act as production for which royalty is required to be paid to the United States.

. (c)

Limitation on application to existing leases

Regulations issued under section 10(b) of the Outer Continental Shelf Lands Act, as amended by this Act, and regulations issued under section 43(b) of the Mineral Leasing Act, as amended by this Act, shall not apply with respect to production under a lease in effect on the date of enactment of this Act to the extent such application would constitute a breach of the terms of the lease by the United States.

3.

Assessment of venting and flaring of gas in production operations in the United States

Not later than 18 months after the date of enactment of this Act, the Secretary of the Interior shall assess and report to the Congress on the venting and flaring of gas in oil and gas production operations in the United States. The report shall include an estimate of the volume of gas that is vented or flared in such operations each year.

4.

Environmental review of venting and flaring of gas in production operations in the United States

Any finding or permit issued by a Federal agency that will authorize flaring or venting of gas in oil and gas production operations in the United States is a major Federal action significantly affecting the quality of the human environment for purposes of section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332).

5.

Regulations

The Secretary of the Interior shall issue regulations that define the terms vent, venting, flare, and flaring for purposes of this Act and the amendments made by this Act.