[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3225 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3225

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

_______________________________________________________________________

                                 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 2019''.

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 2019, 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 by adding at the end the following:
            ``(7) 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.
            ``(8) 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:
            ``(9) 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 2019, 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.
                                 <all>