[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2592 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2592

   To promote energy production and security, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 10, 2014

 Mr. Hoeven (for himself, Mr. McCain, Ms. Murkowski, and Mr. Barrasso) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To promote energy production and security, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``North Atlantic 
Energy Security Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
               TITLE I--NATURAL GAS GATHERING ENHANCEMENT

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Authority to approve natural gas pipelines.
Sec. 104. Certain natural gas gathering lines located on Federal land 
                            and Indian land.
Sec. 105. Deadlines for permitting natural gas gathering lines under 
                            the Mineral Leasing Act.
Sec. 106. Deadlines for permitting natural gas gathering lines under 
                            the Federal Land Policy and Management Act 
                            of 1976.
Sec. 107. LNG regulatory certainty.
Sec. 108. Expedited approval of exportation of natural gas to Ukraine 
                            and North Atlantic Treaty Organization 
                            member countries and Japan.
           TITLE II--ONSHORE OIL AND GAS PERMIT STREAMLINING

                  Subtitle A--Streamlining Permitting

Sec. 201. Short title.
Sec. 202. Permit to drill application timeline.
Sec. 203. Making pilot offices permanent to improve energy permitting 
                            on Federal land.
Sec. 204. Administration.
Sec. 205. Judicial review.
                 Subtitle B--BLM Live Internet Auctions

Sec. 211. Short title.
Sec. 212. Internet-based onshore oil and gas lease sales.

               TITLE I--NATURAL GAS GATHERING ENHANCEMENT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Natural Gas Gathering Enhancement 
Act''.

SEC. 102. FINDINGS.

    Congress finds that--
            (1) record volumes of natural gas production in the United 
        States as of the date of enactment of this Act are providing 
        enormous benefits to the United States, including by--
                    (A) reducing the need for imports of natural gas, 
                thereby directly reducing the trade deficit;
                    (B) strengthening trade ties among the United 
                States, Canada, and Mexico;
                    (C) providing the opportunity for the United States 
                to join the emerging global gas trade through the 
                export of liquefied natural gas;
                    (D) creating and supporting millions of new jobs 
                across the United States;
                    (E) adding billions of dollars to the gross 
                domestic product of the United States every year;
                    (F) generating additional Federal, State, and local 
                government tax revenues; and
                    (G) revitalizing the manufacturing sector by 
                providing abundant and affordable feedstock;
            (2) large quantities of natural gas are lost due to venting 
        and flaring, primarily in areas where natural gas 
        infrastructure has not been developed quickly enough, such as 
        States with large quantities of Federal land and Indian land;
            (3) permitting processes can hinder the development of 
        natural gas infrastructure, such as pipeline lines and 
        gathering lines on Federal land and Indian land; and
            (4) additional authority for the Secretary of the Interior 
        to approve natural gas pipelines and gathering lines on Federal 
        land and Indian land would--
                    (A) assist in bringing gas to market that would 
                otherwise be vented or flared; and
                    (B) significantly increase royalties collected by 
                the Secretary of the Interior and disbursed to Federal, 
                State, and tribal governments and individual Indians.

SEC. 103. AUTHORITY TO APPROVE NATURAL GAS PIPELINES.

    Section 1 of the Act of February 15, 1901 (31 Stat. 790, chapter 
372; 16 U.S.C. 79), is amended by inserting ``, for natural gas 
pipelines'' after ``distribution of electrical power''.

SEC. 104. CERTAIN NATURAL GAS GATHERING LINES LOCATED ON FEDERAL LAND 
              AND INDIAN LAND.

    (a) In General.--Subtitle B of title III of the Energy Policy Act 
of 2005 (Public Law 109-58; 119 Stat. 685) is amended by adding at the 
end the following:

``SEC. 319. CERTAIN NATURAL GAS GATHERING LINES LOCATED ON FEDERAL LAND 
              AND INDIAN LAND.

    ``(a) Definitions.--In this section:
            ``(1) Gas gathering line and associated field compression 
        unit.--
                    ``(A) In general.--The term `gas gathering line and 
                associated field compression unit' means--
                            ``(i) a pipeline that is installed to 
                        transport natural gas production associated 
                        with 1 or more wells drilled and completed to 
                        produce crude oil; and
                            ``(ii) if necessary, a compressor to raise 
                        the pressure of that transported natural gas to 
                        higher pressures suitable to enable the gas to 
                        flow into pipelines and other facilities.
                    ``(B) Exclusions.--The term `gas gathering line and 
                associated field compression unit' does not include a 
                pipeline or compression unit that is installed to 
                transport natural gas from a processing plant to a 
                common carrier pipeline or facility.
            ``(2) Federal land.--
                    ``(A) In general.--The term `Federal land' means 
                land the title to which is held by the United States.
                    ``(B) Exclusions.--The term `Federal land' does not 
                include--
                            ``(i) a unit of the National Park System;
                            ``(ii) a unit of the National Wildlife 
                        Refuge System; or
                            ``(iii) a component of the National 
                        Wilderness Preservation System.
            ``(3) Indian land.--The term `Indian land' means land the 
        title to which is held by--
                    ``(A) the United States in trust for an Indian 
                tribe or an individual Indian; or
                    ``(B) an Indian tribe or an individual Indian 
                subject to a restriction by the United States against 
                alienation.
    ``(b) Certain Natural Gas Gathering Lines.--
            ``(1) In general.--Subject to paragraph (2), the issuance 
        of a sundry notice or right-of-way for a gas gathering line and 
        associated field compression unit that is located on Federal 
        land or Indian land and that services any oil well shall be 
        considered to be an action that is categorically excluded (as 
        defined in section 1508.4 of title 40, Code of Federal 
        Regulations (as in effect on the date of enactment of this 
        Act)) for purposes of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) if the gas gathering line and 
        associated field compression unit are--
                    ``(A) within a field or unit for which an approved 
                land use plan or an environmental document prepared 
                pursuant to the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.) analyzed transportation 
                of natural gas produced from 1 or more oil wells in 
                that field or unit as a reasonably foreseeable 
                activity; and
                    ``(B) located adjacent to an existing disturbed 
                area for the construction of a road or pad.
            ``(2) Applicability.--
                    ``(A) Federal land.--Paragraph (1) shall not apply 
                to Federal land, or a portion of Federal land, for 
                which the Governor of the State in which the Federal 
                land is located submits to the Secretary of the 
                Interior or the Secretary of Agriculture, as 
                applicable, a written request that paragraph (1) not 
                apply to that Federal land (or portion of Federal 
                land).
                    ``(B) Indian land.--Paragraph (1) shall apply to 
                Indian land, or a portion of Indian land, for which the 
                Indian tribe with jurisdiction over the Indian land 
                submits to the Secretary of the Interior a written 
                request that paragraph (1) apply to that Indian land 
                (or portion of Indian land).
    ``(c) Effect on Other Law.--Nothing in this section affects or 
alters any requirement--
            ``(1) relating to prior consent under--
                    ``(A) section 2 of the Act of February 5, 1948 (25 
                U.S.C. 324); or
                    ``(B) section 16(e) of the Act of June 18, 1934 (25 
                U.S.C. 476(e)) (commonly known as the `Indian 
                Reorganization Act'); or
            ``(2) under any other Federal law (including regulations) 
        relating to tribal consent for rights-of-way across Indian 
        land.''.
    (b) Assessments.--Title XVIII of the Energy Policy Act of 2005 
(Public Law 109-58; 119 Stat. 1122) is amended by adding at the end the 
following:

``SEC. 1841. NATURAL GAS GATHERING SYSTEM ASSESSMENTS.

    ``(a) Definition of Gas Gathering Line and Associated Field 
Compression Unit.--In this section, the term `gas gathering line and 
associated field compression unit' has the meaning given the term in 
section 319.
    ``(b) Study.--Not later than 1 year after the date of enactment of 
the North Atlantic Energy Security Act of 2014, the Secretary of the 
Interior, in consultation with other appropriate Federal agencies, 
States, and Indian tribes, shall conduct a study to identify--
            ``(1) any actions that may be taken, under Federal law 
        (including regulations), to expedite permitting for gas 
        gathering lines and associated field compression units that are 
        located on Federal land or Indian land, for the purpose of 
        transporting natural gas associated with crude oil production 
        on any land to a processing plant or a common carrier pipeline 
        for delivery to markets; and
            ``(2) any proposed changes to Federal law (including 
        regulations) to expedite permitting for gas gathering lines and 
        associated field compression units that are located on Federal 
        land or Indian land, for the purpose of transporting natural 
        gas associated with crude oil production on any land to a 
        processing plant or a common carrier pipeline for delivery to 
        markets.
    ``(c) Report.--Not later than 180 days after the date of enactment 
of the North Atlantic Energy Security Act of 2014, and every 180 days 
thereafter, the Secretary of the Interior, in consultation with other 
appropriate Federal agencies, States, and Indian tribes, shall submit 
to Congress a report that describes--
            ``(1) the progress made in expediting permits for gas 
        gathering lines and associated field compression units that are 
        located on Federal land or Indian land, for the purpose of 
        transporting natural gas associated with crude oil production 
        on any land to a processing plant or a common carrier pipeline 
        for delivery to markets; and
            ``(2) any issues impeding that progress.''.
    (c) Technical Amendments.--
            (1) Section 1(b) of the Energy Policy Act of 2005 (Public 
        Law 109-58; 119 Stat. 594) is amended by adding at the end of 
        subtitle B of title III the following:

``Sec. 319. Certain natural gas gathering lines located on Federal land 
                            and Indian land.''.
            (2) Section 1(b) of the Energy Policy Act of 2005 (Public 
        Law 109-58; 119 Stat. 594) is amended by adding at the end of 
        title XXVIII the following:

``Sec. 1841. Natural gas gathering system assessments.''.

SEC. 105. DEADLINES FOR PERMITTING NATURAL GAS GATHERING LINES UNDER 
              THE MINERAL LEASING ACT.

    Section 28 of the Mineral Leasing Act (30 U.S.C. 185) is amended by 
adding at the end the following:
    ``(z) Natural Gas Gathering Lines.--The Secretary of the Interior 
or other appropriate agency head shall issue a sundry notice or right-
of-way for a gas gathering line and associated field compression unit 
(as defined in section 319(a) of the Energy Policy Act of 2005) that is 
located on Federal lands--
            ``(1) for a gas gathering line and associated field 
        compression unit described in section 319(b) of the Energy 
        Policy Act of 2005, not later than 30 days after the date on 
        which the applicable agency head receives the request for 
        issuance; and
            ``(2) for all other gas gathering lines and associated 
        field compression units, not later than 60 days after the date 
        on which the applicable agency head receives the request for 
        issuance.''.

SEC. 106. DEADLINES FOR PERMITTING NATURAL GAS GATHERING LINES UNDER 
              THE FEDERAL LAND POLICY AND MANAGEMENT ACT OF 1976.

    Section 504 of the Federal Land Policy and Management Act of 1976 
(43 U.S.C. 1764) is amended by adding at the end the following:
    ``(k) Natural Gas Gathering Lines.--The Secretary concerned shall 
issue a sundry notice or right-of-way for a gas gathering line and 
associated field compression unit (as defined in section 319(a) of the 
Energy Policy Act of 2005) that is located on public lands--
            ``(1) for a gas gathering line and associated field 
        compression unit described in section 319(b) of the Energy 
        Policy Act of 2005, not later than 30 days after the date on 
        which the applicable agency head receives the request for 
        issuance; and
            ``(2) for all other gas gathering lines and associated 
        field compression units, not later than 60 days after the date 
        on which the applicable agency head receives the request for 
        issuance.''.

SEC. 107. LNG REGULATORY CERTAINTY.

    Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by 
adding at the end the following:
    ``(g) Deadline for Certain Applications for Exportation of Natural 
Gas.--
            ``(1) In general.--The Commission shall make a public 
        interest determination and issue an order under subsection (a) 
        for an application for the exportation of natural gas to a 
        foreign country through a particular LNG terminal not later 
        than 45 days after receipt of an application under subsection 
        (e) for--
                    ``(A) the conversion of that LNG terminal into an 
                LNG import or export facility; or
                    ``(B) the construction of that LNG terminal.
            ``(2) Application.--This subsection shall not apply with 
        respect to an application under subsection (a) for the 
        exportation of natural gas--
                    ``(A) to a foreign country--
                            ``(i) to which the exportation of natural 
                        gas is otherwise prohibited by law; or
                            ``(ii) described in subsection (c); or
                    ``(B) if the Commission has made a contingent 
                determination with respect to the application.
            ``(3) Effect.--Except as specifically provided in this 
        subsection, nothing in this subsection affects the authority of 
        the Commission to review, process, and make a determination 
        with respect to an application for the exportation of natural 
        gas.''.

SEC. 108. EXPEDITED APPROVAL OF EXPORTATION OF NATURAL GAS TO UKRAINE 
              AND NORTH ATLANTIC TREATY ORGANIZATION MEMBER COUNTRIES 
              AND JAPAN.

    (a) In General.--In accordance with clause 3 of section 8 of 
article I of the Constitution of the United States (delegating to 
Congress the power to regulate commerce with foreign nations), Congress 
finds that exports of natural gas produced in the United States to 
Ukraine, member countries of the North Atlantic Treaty Organization, 
and Japan is--
            (1) necessary for the protection of the essential security 
        interests of the United States; and
            (2) in the public interest pursuant to section 3 of the 
        Natural Gas Act (15 U.S.C. 717b).
    (b) Expedited Approval.--Section 3(c) of the Natural Gas Act (15 
U.S.C. 717b(c)) is amended by inserting ``, to Ukraine, to a member 
country of the North Atlantic Treaty Organization, or to Japan'' after 
``trade in natural gas''.
    (c) Effective Date.--The amendment made by subsection (b) shall 
apply to applications for the authorization to export natural gas under 
section 3 of the Natural Gas Act (15 U.S.C. 717b) that are pending on, 
or filed on or after, the date of the enactment of this Act.

           TITLE II--ONSHORE OIL AND GAS PERMIT STREAMLINING

                  Subtitle A--Streamlining Permitting

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Streamlining Permitting of 
American Energy Act of 2014''.

SEC. 202. PERMIT TO DRILL APPLICATION TIMELINE.

    Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) is 
amended by striking paragraph (2) and inserting the following:
            ``(2) Applications for permits to drill reform and 
        process.--
                    ``(A) Timeline.--
                            ``(i) In general.--Not later than 30 days 
                        after the date on which the Secretary receives 
                        an application for a permit to drill, the 
                        Secretary shall decide whether to issue or deny 
                        the permit.
                            ``(ii) Extension.--On giving written notice 
                        of a delay to the applicant, the Secretary may 
                        extend the period described in clause (i) for 
                        not more than 2 additional periods of 15 days 
                        each.
                            ``(iii) Form of notice.--The notice 
                        referred to in clause (ii) shall--
                                    ``(I) be in the form of a letter 
                                from the Secretary or a designee of the 
                                Secretary; and
                                    ``(II) shall include the names and 
                                titles of the persons processing the 
                                application, the specific reasons for 
                                the delay, and a specific date a final 
                                decision on the application is 
                                expected.
                    ``(B) Application considered approved.--If the 
                Secretary has not made a decision on the application by 
                the end of the 60-day period beginning on the date the 
                application is received by the Secretary, the 
                application shall be considered to be approved, except 
                in a case in which an existing review under the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) or the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.) is incomplete.
                    ``(C) Denial of permit.--If the Secretary decides 
                not to issue a permit to drill in accordance with 
                subparagraph (A), the Secretary shall--
                            ``(i) provide to the applicant a 
                        description of the reasons for the denial of 
                        the permit;
                            ``(ii) allow the applicant to resubmit an 
                        application for a permit to drill during the 
                        10-day period beginning on the date the 
                        applicant receives the description of the 
                        denial from the Secretary; and
                            ``(iii) issue or deny any resubmitted 
                        application not later than 10 days after the 
                        date on which the application is submitted to 
                        the Secretary.
                    ``(D) Fee.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, the Secretary shall 
                        collect a single $6,500 permit processing fee 
                        per application from each applicant at the time 
                        the final decision is made whether to issue a 
                        permit under subparagraph (A).
                            ``(ii) Limitation.--The fee described in 
                        clause (i) shall not apply to any resubmitted 
                        application.
                            ``(iii) Treatment of permit processing 
                        fee.--Of all amounts collected as fees under 
                        this paragraph, 50 percent shall be--
                                    ``(I) transferred to the field 
                                office where the fee is collected; and
                                    ``(II) used to process leases and 
                                permits under this Act, subject to 
                                appropriation.''.

SEC. 203. MAKING PILOT OFFICES PERMANENT TO IMPROVE ENERGY PERMITTING 
              ON FEDERAL LAND.

    (a) Definitions.--In this section:
            (1) Energy projects.--The term ``energy projects'' includes 
        oil, natural gas, and other energy projects, as defined by the 
        Secretary.
            (2) Project.--The term ``Project'' means the Federal Permit 
        Streamlining Project established under subsection (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (b) Establishment.--The Secretary shall establish a Federal Permit 
Streamlining Project in every Bureau of Land Management field office 
with responsibility for permitting energy projects on Federal land.
    (c) Memorandum of Understanding.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall enter into a 
        memorandum of understanding for purposes of this section with--
                    (A) the Secretary of Agriculture;
                    (B) the Administrator of the Environmental 
                Protection Agency; and
                    (C) the Chief of Engineers.
            (2) State participation.--The Secretary may request that 
        the Governor of any State in which energy projects on Federal 
        land are located be a signatory to the memorandum of 
        understanding.
    (d) Designation of Qualified Staff.--
            (1) In general.--Not later than 30 days after the date of 
        the signing of the memorandum of understanding under subsection 
        (c), all Federal signatory parties shall, if appropriate, 
        assign to each of the Bureau of Land Management field offices 
        an employee who has expertise in the regulatory issues relating 
        to the office in which the employee is employed, including, as 
        applicable, particular expertise in--
                    (A) the consultations and the preparation of 
                biological opinions under section 7 of the Endangered 
                Species Act of 1973 (16 U.S.C. 1536);
                    (B) permits under section 404 of Federal Water 
                Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air Act (42 
                U.S.C. 7401 et seq.);
                    (D) planning under the National Forest Management 
                Act of 1976 (16 U.S.C. 472a et seq.); and
                    (E) the preparation of analyses under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
            (2) Duties.--Each employee assigned under paragraph (1) 
        shall--
                    (A) not later than 90 days after the date of 
                assignment, report to the Bureau of Land Management 
                Field Managers in the office to which the employee is 
                assigned;
                    (B) be responsible for all issues relating to the 
                energy projects that arise under the authorities of the 
                agency of the employee; and
                    (C) participate as part of the team of personnel 
                working on proposed energy projects, planning, and 
                environmental analyses on Federal land.
    (e) Additional Personnel.--The Secretary shall assign to each 
Bureau of Land Management field office identified in subsection (b) any 
additional personnel that are necessary to ensure the effective 
approval and implementation of energy projects administered by the 
Bureau of Land Management field offices, including inspection and 
enforcement relating to energy development on Federal land, in 
accordance with the multiple use mandate of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1701 et seq.).
    (f) Funding.--Salaries for the additional personnel shall be funded 
from the collection of fees described in section 17(p)(2)(D) of the 
Mineral Leasing Act (30 U.S.C. 226(p)(2)(D)) (as amended by section 
202).
    (g) Savings Provision.--Nothing in this section affects--
            (1) the operation of any Federal or State law; or
            (2) any delegation of authority made by the head of a 
        Federal agency whose employees are participating in the 
        Project.

SEC. 204. ADMINISTRATION.

    Notwithstanding any other law, the Secretary of the Interior shall 
not require a finding of extraordinary circumstances in administering 
section 390 of the Energy Policy Act of 2005 (42 U.S.C. 15942).

SEC. 205. JUDICIAL REVIEW.

    (a) Definitions.--In this section:
            (1) Covered civil action.--The term ``covered civil 
        action'' means a civil action containing a claim under section 
        702 of title 5, United States Code, regarding agency action (as 
        defined for the purposes of that section) affecting a covered 
        energy project on Federal land.
            (2) Covered energy project.--
                    (A) In general.--The term ``covered energy 
                project'' means the leasing of Federal land for the 
                exploration, development, production, processing, or 
                transmission of oil, natural gas, or any other source 
                of energy, and any action carried out pursuant to that 
                lease.
                    (B) Exclusion.--The term ``covered energy project'' 
                does not include any disputes between the parties to a 
                lease regarding the obligations under the lease, 
                including regarding any alleged breach of the lease.
    (b) Exclusive Venue for Certain Civil Actions Relating to Covered 
Energy Projects.--Venue for any covered civil action shall lie in the 
district court where the project or leases exist or are proposed.
    (c) Timely Filing.--To ensure timely redress by the courts, a 
covered civil action shall be filed not later than the last day of the 
90-day period beginning on the date of the final Federal agency action 
to which the covered civil action relates.
    (d) Expedition in Hearing and Determining the Action.--The court 
shall endeavor to hear and determine any covered civil action as 
expeditiously as possible.
    (e) Standard of Review.--In any judicial review of a covered civil 
action, administrative findings and conclusions relating to the 
challenged Federal action or decision shall be presumed to be correct, 
and the presumption may be rebutted only by the preponderance of the 
evidence contained in the administrative record.
    (f) Limitation on Injunction and Prospective Relief.--
            (1) In general.--In a covered civil action, the court shall 
        not grant or approve any prospective relief unless the court 
        finds that the relief is narrowly drawn, extends no further 
        than necessary to correct the violation of a legal requirement, 
        and is the least intrusive means necessary to correct that 
        violation.
            (2) Duration of preliminary injunctions.--A court shall 
        limit the duration of a preliminary injunction to halt a 
        covered energy project to a period of not more than 60 days, 
        unless the court finds clear reasons to extend the injunction.
            (3) Duration of extension.--An extension under paragraph 
        (2) shall--
                    (A) only be for a period of not more than 30 days; 
                and
                    (B) require action by the court to renew the 
                injunction.
    (g) Limitation on Attorneys' Fees.--Sections 504 of title 5 and 
2412 of title 28, United States Code (commonly known as the ``Equal 
Access to Justice Act'') shall not apply to a covered civil action, nor 
shall any party in the covered civil action receive payment from the 
Federal Government for attorneys' fees, expenses, or other court costs.
    (h) Legal Standing.--A person filing an appeal with the Department 
of the Interior Board of Land Appeals shall meet the same standing 
requirements as a person before a United States district court.

                 Subtitle B--BLM Live Internet Auctions

SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``BLM Live Internet Auctions 
Act''.

SEC. 212. INTERNET-BASED ONSHORE OIL AND GAS LEASE SALES.

    (a) Authorization.--Section 17(b)(1) of the Mineral Leasing Act (30 
U.S.C. 226(b)(1)) is amended--
            (1) in subparagraph (A), in the third sentence, by 
        inserting ``, except as provided in subparagraph (C)'' after 
        ``by oral bidding''; and
            (2) by adding at the end the following:
                    ``(C) Internet-based bidding.--
                            ``(i) In general.--In order to diversify 
                        and expand the onshore leasing program in the 
                        United States to ensure the best return to the 
                        Federal taxpayer, reduce fraud, and secure the 
                        leasing process, the Secretary may conduct 
                        onshore lease sales through Internet-based 
                        bidding methods.
                            ``(ii) Conclusion of sale.--Each individual 
                        Internet-based lease sale shall conclude not 
                        later than 7 days after the date of initiation 
                        of the sale.''.
    (b) Report.--Not later than 90 days after the tenth Internet-based 
lease sale conducted pursuant to subparagraph (C) of section 17(b)(1) 
of the Mineral Leasing Act (30 U.S.C. 226(b)(1)) (as added by 
subsection (a)), the Secretary of the Interior shall conduct, and 
submit to Congress a report describing the results of, an analysis of 
the first 10 such lease sales, including--
            (1) estimates of increases or decreases in the lease sales, 
        compared to sales conducted by oral bidding, in--
                    (A) the number of bidders;
                    (B) the average amount of the bids;
                    (C) the highest amount of the bids; and
                    (D) the lowest amount of the bids;
            (2) an estimate on the total cost or savings to the 
        Department of the Interior as a result of the sales, as 
        compared to sales conducted by oral bidding; and
            (3) an evaluation of the demonstrated or expected 
        effectiveness of different structures for lease sales, which 
        may--
                    (A) provide an opportunity to better maximize 
                bidder participation;
                    (B) ensure the highest return to the Federal 
                taxpayers;
                    (C) minimize opportunities for fraud or collusion; 
                and
                    (D) ensure the security and integrity of the 
                leasing process.
                                 <all>