Cooperative federalism in oil and gas permitting on available Federal land

(a)

In general

The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended—(1)by redesignating section 44 as section 47; and(2)by adding after section 43 the following:

44.

Cooperative federalism in oil and gas permitting on available Federal land

(a)

Definitions

In this section:(1)

APD

The term APD means a permit—(A)that grants authority to drill for oil and gas; and(B)for which an application has been received that includes—(i)a drilling plan;(ii)a surface use plan of operations described in section 3162.3–1(f) of title 43, Code of Federal Regulations (or a successor regulation); and(iii)evidence of bond coverage.(2)

Available Federal land

The term available Federal land means any Federal land that—(A)is located within the boundaries of a State;(B)is not held by the United States in trust for the benefit of a federally recognized Indian Tribe or a member of a federally recognized Indian Tribe;(C)is not a unit of the National Park System;(D)is not a unit of the National Wildlife Refuge System, other than a unit of the National Wildlife Refuge System for which oil and gas drilling is allowed under law;(E)is not a congressionally approved wilderness area under the Wilderness Act (16 U.S.C. 1131 et seq.); and(F)has been identified as land available for lease, or has been leased, for the exploration, development, and production of oil and gas—(i)by the Bureau of Land Management under—(I)a resource management plan under the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.); or(II)an integrated activity plan with respect to the National Petroleum Reserve–Alaska; or(ii)by the Forest Service under a National Forest management plan under the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.).(3)

Drilling plan

The term drilling plan means a plan described in section 3162.3–1(e) of title 43, Code of Federal Regulations (or a successor regulation).(4)

Secretary

The term Secretary means the Secretary of the Interior.(5)

State applicant

The term State applicant means a State that submits an application under subsection (c).(6)

State program

The term State program means a program in a State under which the State may—(A)issue APDs, approve drilling plans, approve sundry notices, approve suspensions of operations or production, or grant rights-of-way on available Federal land; and (B)impose sanctions for violations of State laws, regulations, or any condition of an issued APD or approved drilling plan, as applicable.(7)

Sundry notice

The term sundry notice means a written request—(A)to perform work not covered under an APD or drilling plan; or(B)for a change to operations covered under an APD or drilling plan.(8)

Suspension of operations or production

The term suspension of operations or production means a suspension of operations or production described in section 3103.4–4 of title 43, Code of Federal Regulations (or successor regulations).(b)

Authorizations

(1)

In general

On receipt of an application under subsection (c), the Secretary may delegate to a State exclusive authority—(A)to issue an APD on available Federal land; (B)to approve drilling plans on available Federal land;(C)to approve sundry notices relating to work performed on available Federal land; (D)to approve suspensions of operations or production; and (E)to grant rights-of-way in accordance with paragraph (3).(2)

Inspection and enforcement

On request of a State for which authority is delegated under paragraph (1), the authority delegated may include the authority to inspect and enforce an APD, drilling plan, or right-of-way, as applicable.(3)

Rights-of-way

The authority to grant a right-of-way delegated to a State under paragraph (1)(E) shall be the authority of the Secretary of the Interior or the Secretary of Agriculture, as applicable, under section 501 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761), to grant, issue, or renew rights-of-way over, upon, under, or through available Federal land for the purpose of mineral development. (4)

Effect of Federal environmental reviews

A State for which authority is delegated under paragraph (1) shall continue processing applications for an APD, applications for approval of a drilling plan, applications for approval of a sundry notice, and applications to grant a right-of-way, regardless of whether the Federal Government is carrying out any review related to the APD, drilling plan, sundry notice, or right-of-way 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.).(c)

State application process

(1)

Submission of application

A State seeking a delegation of authority under subparagraph (A), (B), (C), (D), or (E) of subsection (b)(1) shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including—(A)a description of the State program that the State proposes to administer under State law; and(B)a statement from the Governor or attorney general of the State that demonstrates that the laws of the State provide adequate authority to carry out the State program.(2)

Deadline for approval or disapproval

Not later than 180 days after the date on which an application under paragraph (1) is received, the Secretary shall approve or disapprove the application.(3)

Requirements for approval

(A)

In general

The Secretary may approve an application received under paragraph (1) only if the Secretary determines that—(i)the State applicant would be at least as effective as the Secretary in issuing APDs, approving drilling plans, approving sundry notices, approving suspensions of operations or production, or granting rights-of-way, as applicable;(ii)the State program of the State applicant—(I)complies with this Act; and(II)provides for the termination or modification of an issued APD, approved drilling plan, approved sundry notice, approved suspension of operations or production, or granted right-of-way, as applicable, for cause, including for—(aa)the violation of any condition of the issued APD, approved drilling plan, approved sundry notice, approved suspension of operations or production, or granted right-of-way;(bb)obtaining the issued APD, approved drilling plan, approved sundry notice, approved suspension of operations or production, or granted right-of-way by misrepresentation; or(cc)failure to fully disclose in the application all relevant facts; (iii)the State applicant has sufficient administrative and technical personnel and sufficient funding to carry out the State program; and(iv)approval of the application would not result in decreased royalty payments owed to the United States under subsection (a) of section 35, except as provided in subsection (e) of that section.(B)

Memoranda of understanding

With respect to a State applicant seeking authority under subsection (b)(2)(A) to inspect and enforce APDs, drilling plans, or rights-of-way, as applicable, before approving the application of the State applicant, the Secretary shall enter into a memorandum of understanding with the State applicant under paragraph (6) that describes the Federal and State responsibilities with respect to the inspection and enforcement.(C)

Public notice

Before approving an application received under paragraph (1), the Secretary shall—(i)provide public notice of the application;(ii)solicit public comment for the application; and(iii)hold a public hearing for the application in the State.(4)

Disapproval

If the Secretary disapproves an application submitted under paragraph (1), the Secretary shall provide to the State applicant written notification of—(A)the reasons for the disapproval, including any information, data, or analysis on which the disapproval is based; and(B)any revisions or modifications necessary to obtain approval.(5)

Resubmittal of application

A State may resubmit an application under paragraph (1) at any time.(6)

State memoranda of understanding

Before a State submits an application under paragraph (1), the Secretary, on request of the State, may enter into a memorandum of understanding with the State regarding the proposed State program—(A)to describe the Federal and State responsibilities for oil and gas regulations;(B)to provide technical assistance; and(C)to share best management practices.(d)

Administrative fees for APDs

(1)

In general

A State for which authority has been delegated under subsection (b)(1)(A) may collect a fee for each application for an APD that is submitted to the State.(2)

No collection of fee by Secretary

The Secretary may not collect a fee from the applicant or from the State for an application for an APD that is submitted to a State for which authority has been delegated under subsection (b)(1)(A).(3)

Use

A State shall use 100 percent of the fees collected under this subsection for the administration of the approved State program of the State.(e)

Voluntary termination of authority

(1)

In general

After providing written notice to the Secretary, a State may voluntarily terminate any authority delegated to the State under subsection (b)(1) on expiration of the 60-day period beginning on the date on which the Secretary receives the written notice.(2)

Resumption by Secretary

On termination of the authority delegated to a State under paragraph (1), the Secretary shall resume any activities for which authority was delegated to the State under subsection (b)(1).(f)

Appeal of denial of application

If a State for which the Secretary has delegated authority under subsection (b)(1) denies an application submitted under subsection (c)(1), the applicant may appeal the decision to the Office of Hearings and Appeals of the Department of the Interior.(g)

Federal administration of State program

(1)

Notification

If the Secretary has reason to believe that a State is not administering or enforcing an approved State program, the Secretary shall notify the relevant State regulatory authority of any possible deficiencies.(2)

State response

Not later than 30 days after the date on which a State receives notification of a possible deficiency under paragraph (1), the State shall—(A)take appropriate action to correct the possible deficiency; and(B)notify the Secretary of the action in writing.(3)

Determination

(A)

In general

On expiration of the 30-day period described in paragraph (2), the Secretary shall issue public notice of any determination of the Secretary that—(i)a violation of all or any part of an approved State program has resulted from a failure of the State to administer or enforce the approved State program of the State; or(ii)the State has not demonstrated the capability and intent of the State to administer or enforce the State program of the State.(B)

Appeal

A State may appeal the determination of the Secretary under subparagraph (A) in the applicable United States District Court.(C)

Resumption by Secretary pending appeal

The Secretary may not resume activities under paragraph (4) if an appeal under subparagraph (B) is pending.(4)

Resumption by Secretary

Except as provided in paragraph (3)(C), if the Secretary has made a determination under paragraph (3)(A), the Secretary shall resume any activities for which authority was delegated to the State during the period—(A)beginning on the date on which the Secretary issues the public notice under paragraph (3)(A); and(B)ending on the date on which the Secretary determines that the State may administer or enforce, as applicable, the approved State program of the State.(5)

Standing

A State with an approved regulatory program shall have standing to sue the Secretary for any action taken under this subsection.

(b)

Existing authorities

Section 390(a) of the Energy Policy Act of 2005 (42 U.S.C. 15942(a)) is amended—(1)by striking Action by the Secretary and inserting The Secretary;(2)by striking with respect to any of the activities described in subsection (b) shall be subject to a rebuttable presumption that the use of and inserting shall apply; and(3)by striking would apply if the activity and inserting for each action described in subsection (b) if the action.