H. Rept. 115-1004 - ENDING DUPLICATIVE PERMITTING ACT115th Congress (2017-2018)
Committee Report
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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-1004
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ENDING DUPLICATIVE PERMITTING ACT
_______
November 2, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 6107]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 6107) to clarify that Bureau of Land Management
shall not require permits for oil and gas activities conducted
on non-Federal surface estate to access subsurface mineral
estate that is less than 50 percent Federally owned, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ending Duplicative Permitting Act''.
SEC. 2. ACCESS TO FEDERAL OIL AND GAS FROM NON-FEDERAL SURFACE ESTATE.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by
adding at the end the following:
``(q) No Federal Permit Required for Oil and Gas Activities on
Certain Land.--
``(1) In general.--The Secretary shall not require an
operator to obtain a Federal drilling permit for oil and gas
exploration and production activities conducted on non-Federal
surface estate, provided that--
``(A) the United States holds an ownership interest
of less than 50 percent of the subsurface mineral
estate to be accessed by the proposed action; and
``(B) the operator submits to the Secretary a State
permit to conduct oil and gas exploration and
production activities on the non-Federal surface
estate.
``(2) No federal action.--Oil and gas exploration and
production activities carried out under paragraph (1)--
``(A) shall require no additional Federal action;
``(B) may commence 30 days after submission of the
State permit to the Secretary;
``(C) are categorically excluded from any further
analysis and documentation under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.);
``(D) shall not require any analysis under section
106 of the National Historic Preservation Act of 1966,
as amended (54 U.S.C. 306108); and
``(E) shall not require any analysis, assessment, or
consultation under section 7 of the Endangered Species
Act of 1973 (16 U.S.C. 1536).
``(3) Royalties and production accountability.--(A) Nothing
in this subsection shall affect the amount of royalties due to
the United States under this Act from the production of oil and
gas, or alter the Secretary's authority to conduct audits and
collect civil penalties pursuant to the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1711 et seq.).
``(B) The Secretary may conduct on-site reviews and
inspections to ensure proper accountability, measurement, and
reporting of production of Federal oil and gas, and payment of
royalties.
``(4) Exceptions.--This subsection shall not apply to actions
on Indian lands or resources managed in trust for the benefit
of Indian tribes.''.
Purpose of the Bill
The purpose of H.R. 6107 is to clarify that the Bureau of
Land Management shall not require permits for oil and gas
activities conducted on non-Federal surface estate to access
subsurface mineral estate that is less than 50 percent
Federally owned.
Background and Need for Legislation
In recent years, the Bureau of Land Management (BLM) has
required oil and gas operators to obtain federal permits for
drilling and re-entry activities on State and privately-owned
lands if the federal government holds an ownership interest in
even a small portion of the subsurface mineral estate impacted
by such operations.
While the States are able to issue oil and gas drilling
permits for operations on State and private land in an average
of 30 days, BLM processed applications for permits to drill in
an average of 260 days in 2017.\1\ BLM's decision to require
both State and federal permits for operations on areas where
the federal government has no surface ownership has hindered
development of State and private lands by prolonging the
permitting process without providing additional environmental
or safety benefits. The resulting delays have discouraged
investment in oil and gas operations that would benefit the
States, local governments and private landowners.
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\1\Bureau of Land Management. Oil and Gas Statistics. Table 12.
Time to Complete an Application for Permit to Drill (APD) Federal and
Indian. https://www.blm.gov/sites/blm.gov/files/
Table12_Time_to_Complete_an_APD1.pdf.
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This legislation limits BLM's jurisdiction over drilling
activities conducted on non-federal land to promote the
efficient development of State and privately-owned minerals.
Specifically, this legislation amends the Mineral Leasing Act
(30 U.S.C. 181 et seq.) to clarify that a federal permit issued
by BLM shall not be required for oil and gas drilling
operations on State or private land if the federal government
owns less than 50 percent of the subsurface mineral estate
impacted by such activities and if the operator obtains and
submits a State permit for such activities to BLM.
Committee Action
H.R. 6107 was introduced on June 14, 2018, by Congressman
Stevan Pearce (R-NM). The bill was referred to the Committee on
Natural Resources. On June 27, 2018, the Natural Resources
Committee met to consider the bill. Congressman Pearce offered
an amendment designated #1; it was adopted by voice vote.
Congressman Alan S. Lowenthal (D-CA) offered an amendment
designated 001; it was not adopted by a roll call vote of 12
yeas and 19 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
No further amendments were offered and the bill, as
amended, was ordered favorably reported to the House of
Representatives by a roll call vote of 18 yeas and 13 nays, as
follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and Congressional Budget Act
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 23, 2018.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6107, the Ending
Duplicative Permitting Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jeff LaFave.
Sincerely,
Mark P. Hadley
(For Keith Hall, Director).
Enclosure.
H.R. 6107--Ending Duplicative Permitting Act
H.R. 6107 would prohibit the Bureau of Land Management
(BLM) from requiring businesses to obtain an approved
application for a permit to drill (APD) for operations on lands
where the surface estate is owned by a nonfederal entity and
the federal interest in the mineral estate is less than 50
percent. In 2017, the Department of the Interior collected a
total of $31 million in fees from APDs. (Those fees are
recorded as reductions in direct spending.) The agency is
authorized to spend, without further appropriation, 85 percent
of those amounts to administer the APD program through 2019.
After 2019, the agency can spend all proceeds from APD fees.
CBO expects that gross fee collections will total between $31
million and $37 million in 2019 and that net collections after
spending will total $5 million in that year. The affected lands
account for between 10 percent and 30 percent of all APDs
issued, and CBO estimates that enacting this provision would
reduce net receipts by a similar percentage. Thus, CBO
estimates that enacting this provision would cost $1 million in
2019.
Because enacting the bill would affect direct spending,
pay-as-you-go procedures apply. Enacting H.R. 6107 would not
affect revenues.
CBO estimates that enacting H.R. 6107 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 6107 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to clarify that the Bureau of Land
Management shall not require permits for oil and gas activities
conducted on non-Federal surface estate to access subsurface
mineral estate that is less than 50 percent Federally owned.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Compliance With H. Res. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
MINERAL LEASING ACT
* * * * * * *
Sec. 17. (a) All lands subject to disposition under this Act
which are known or believed to contain oil or gas deposits may
be leased by the Secretary.
(b)(1)(A) All lands to be leased which are not subject to
leasing under paragraphs (2) and (3) of this subsection shall
be leased as provided in this paragraph to the highest
responsible qualified bidder by competitive bidding under
general regulations 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. Lease
sales shall be conducted by oral bidding, except as provided in
subparagraph (C). Lease sales shall be held for each State
where eligible lands are available at least quarterly and more
frequently if the Secretary of the Interior determines such
sales are necessary. A lease shall be conditioned upon the
payment of a royalty at a rate of not less than 12.5 percent in
amount or value of the production removed or sold from the
lease. The Secretary shall accept the highest bid from a
responsible qualified bidder which is equal to or greater than
the national minimum acceptable bid, without evaluation of the
value of the lands proposed for lease. Leases shall be issued
within 60 days following payment by the successful bidder of
the remainder of the bonus bid, if any, and the annual rental
for the first lease year. All bids for less than the national
minimum acceptable bid shall be rejected. Lands for which no
bids are received or for which the highest bid is less than the
national minimum acceptable bid shall be offered promptly
within 30 days for leasing under subsection (c) of this section
and shall remain available for leasing for a period of 2 years
after the competitive lease sale.
(B) The national minimum acceptable bid shall be $2 per acre
for a period of 2 years from the date of enactment of the
Federal Onshore Oil and Gas Leasing Reform Act of 1987.
Thereafter, the Secretary, subject to paragraph (2)(B), may
establish by regulation a higher national minimum acceptable
bid for all leases based upon a finding that such action is
necessary: (i) to enhance financial returns to the United
States; and (ii) to promote more efficient management of oil
and gas resources on Federal lands. Ninety days before the
Secretary makes any change in the national minimum acceptable
bid, the Secretary shall notify the Committee on Natural
Resources of the United States House of Representatives and the
Committee on Energy and Natural Resources of the United States
Senate. The proposal or promulgation of any regulation to
establish a national minimum acceptable bid shall not be
considered a major Federal action subject to the requirements
of section 102(2)(C) of the National Environmental Policy Act
of 1969.
(C) In order to diversify and expand the Nation's onshore
leasing program 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. Each individual Internet-based lease
sale shall conclude within 7 days.
(2)(A)(i) If the lands to be leased are within a special tar
sand area, they shall be leased to the highest responsible
qualified bidder by competitive bidding under general
regulations in units of not more than 5,760 acres, which shall
be as nearly compact as possible, upon the payment by the
lessee of such bonus as may be accepted by the Secretary.
(ii) Royalty shall be 12\1/2\ per centum in amount of value
of production removed or sold from the lease subject to section
17(k)(1)(c).
(iii) The Secretary may lease such additional lands in
special tar sand areas as may be required in support of any
operations necessary for the recovery of tar sands.
(iv) No lease issued under this paragraph shall be
included in any chargeability limitation associated
with oil and gas leases.
(B) For any area that contains any combination of tar sand
and oil or gas (or both), the Secretary may issue under this
Act, separately--
(i) a lease for exploration for and extraction of tar
sand; and
(ii) a lease for exploration for and development of
oil and gas.
(C) A lease issued for tar sand shall be issued using the
same bidding process, annual rental, and posting period as a
lease issued for oil and gas, except that the minimum
acceptable bid required for a lease issued for tar sand shall
be $2 per acre.
(D) The Secretary may waive, suspend, or alter any
requirement under section 26 that a permittee under a permit
authorizing prospecting for tar sand must exercise due
diligence, to promote any resource covered by a combined
hydrocarbon lease.
(3)(A) If the United States held a vested future interest in
a mineral estate that, immediately prior to becoming a vested
present interest, was subject to a lease under which oil or gas
was being produced, or had a well capable of producing, in
paying quantities at an annual average production volume per
well per day of either not more than 15 barrels per day of oil
or condensate, or not more than 60,000 cubic feet of gas, the
holder of the lease may elect to continue the lease as a
noncompetitive lease under subsection (c)(1).
(B) An election under this paragraph is effective--
(i) in the case of an interest which vested after
January 1, 1990, and on or before the date of enactment
of this paragraph, if the election is made before the
date that is 1 year after the date of enactment of this
paragraph;
(ii) in the case of an interest which vests within 1
year after the date of enactment of this paragraph, if
the election is made before the date that is 2 years
after the date of enactment of this paragraph; and
(iii) in any case other than those described in
clause (i) or (ii), if the election is made prior to
the interest becoming a vested present interest.
(C) Notwithstanding the consent requirement referenced in
section 3 of the Mineral Leasing Act for Acquired Lands (30
U.S.C. 352), the Secretary shall issue a noncompetitive lease
under subsection (c)(1) to a holder who makes an election under
subparagraph (A) and who is qualified to hold a lease under
this Act. Such lease shall be subject to all terms and
conditions under this Act that are applicable to leases issued
under subsection (c)(1).
(D) A lease issued pursuant to this paragraph shall continue
so long as oil or gas continues to be produced in paying
quantities.
(E) This paragraph shall apply only to those lands under the
administration of the Secretary of Agriculture where the United
States acquired an interest in such lands pursuant to the Act
of March 1, 1911 (36 Stat. 961 and following).
(c)(1) If the lands to be leased are not leased under
subsection (b)(1) of this section or are not subject to
competitive leasing under subsection (b)(2) of this section,
the person first making application for the lease who is
qualified to hold a lease under this Act shall be entitled to a
lease of such lands without competitive bidding, upon payment
of a non-refundable application fee of at least $75. A lease
under this subsection shall be conditioned upon the payment of
a royalty at a rate of 12.5 percent in amount or value of the
production removed or sold from the lease. Leases shall be
issued within 60 days of the date on which the Secretary
identifies the first responsible qualified applicant.
(2)(A) Lands (i) which were posted for sale under subsection
(b)(1) of this section but for which no bids were received or
for which the highest bid was less than the national minimum
acceptable bid and (ii) for which, at the end of the period
referred to in subsection (b)(1) of this section no lease has
been issued and no lease application is pending under paragraph
(1) of this subsection, shall again be available for leasing
only in accordance with subsection (b)(1) of this section.
(B) The land in any lease which is issued under paragraph (1)
of this subsection or under subsection (b)(1) of this section
which lease terminates, expires, is cancelled or is
relinquished shall again be available for leasing only in
accordance with subsection (b)(1) of this section.
(d) All leases issued under this section, as amended by the
Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall
be conditioned upon payment by the lessee of a rental of not
less than $1.50 per acre per year for the first through fifth
years of the lease and not less than $2 per acre per year for
each year thereafter. A minimum royalty in lieu of rental of
not less than the rental which otherwise would be required for
that lease year shall be payable at the expiration of each
lease year beginning on or after a discovery of oil or gas in
paying quantities on the lands leased.
(e) Competitive and noncompetitive leases issued under this
section shall be for a primary term of 10 years: Provided,
however, That competitive leases issued in special tar sand
areas shall also be for a primary term of ten years. Each such
lease shall continue so long after its primary term as oil or
gas is produced in paying quantities. Any lease issued under
this section for land on which, or for which under an approved
cooperative or unit plan of development or operation, actual
drilling operations were commenced prior to the end of its
primary term and are being diligently prosecuted at that time
shall be extended for two years and so long thereafter as oil
or gas is produced in paying quantities.
(f) 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 or substantially modifying the terms of any lease issued
under this section, the Secretary shall provide notice of the
proposed action. Such notice shall be posted in the appropriate
local office of the leasing and land management agencies. Such
notice shall include the terms or modified lease terms and maps
or a narrative description of the affected lands. Where the
inclusion of maps in such notice is not practicable, maps of
the affected lands shall be made available to the public for
review. Such maps shall show the location of all tracts to be
leased, and of all leases already issued in the general area.
The requirements of this subsection are in addition to any
public notice required by other law.
(g) The Secretary of the Interior, or for National Forest
lands, the Secretary of Agriculture, shall regulate all
surface-disturbing activities conducted pursuant to any lease
issued under this Act, and shall determine reclamation and
other actions as required in the interest of conservation of
surface resources. No permit to drill on an oil and gas lease
issued under this Act may be granted without the analysis and
approval by the Secretary concerned of a plan of operations
covering proposed surface-disturbing activities within the
lease area. The Secretary concerned shall, by rule or
regulation, establish such standards as may be necessary to
ensure that an adequate bond, surety, or other financial
arrangement will be established prior to the commencement of
surface-disturbing activities on any lease, to ensure the
complete and timely reclamation of the lease tract, and the
restoration of any lands or surface waters adversely affected
by lease operations after the abandonment or cessation of oil
and gas operations on the lease. The Secretary shall not issue
a lease or leases or approve the assignment of any lease or
leases under the terms of this section to any person,
association, corporation, or any subsidiary, affiliate, or
person controlled by or under common control with such person,
association, or corporation, during any period in which, as
determined by the Secretary of the Interior or Secretary of
Agriculture, such entity has failed or refused to comply in any
material respect with the reclamation requirements and other
standards established under this section for any prior lease to
which such requirements and standards applied. Prior to making
such determination with respect to any such entity the
concerned Secretary shall provide such entity with adequate
notification and an opportunity to comply with such reclamation
requirements and other standards and shall consider whether any
administrative or judicial appeal is pending. Once the entity
has complied with the reclamation requirement or other standard
concerned an oil or gas lease may be issued to such entity
under this Act.
(h) The Secretary of the Interior may not issue any lease on
National Forest System Lands reserved from the public domain
over the objection of the Secretary of Agriculture.
(i) No lease issued under this section which is subject to
termination because of cessation of production shall be
terminated for this cause so long as reworking or drilling
operations which were commenced on the land prior to or within
sixty days after cessation of production are conducted thereon
with reasonable diligence, or so long as oil or gas is produced
in paying quantities as a result of such operations. No lease
issued under this section shall expire because operations or
production is suspended under any order, or with the consent,
of the Secretary. No lease issued under this section covering
lands on which there is a well capable of producing oil or gas
in paying quantities shall expire because the lessee fails to
produce the same unless the lessee is allowed a reasonable
time, which shall be not less than sixty days after notice by
registered or certified mail, within which to place such well
in producing status or unless, after such status is
established, production is discontinued on the leased premises
without permission granted by the Secretary under the
provisions of this Act.
(j) Whenever it appears to the Secretary that lands owned by
the United States are being drained of oil or gas by wells
drilled on adjacent lands, he may negotiate agreements whereby
the United States, or the United States and its lessees, shall
be compensated for such drainage. Such agreements shall be made
with the consent of the lessees, if any, affected thereby. If
such agreement is entered into, the primary term of any lease
for which compensatory royalty is being paid, or any extension
of such primary term, shall be extended for the period during
which such compensatory royalty is paid and for a period of one
year from discontinuance of such payment and so long thereafter
as oil or gas is produced in paying quantities.
(k) If, during the primary term or any extended term of any
lease issued under this section, a verified statement is filed
by any mining claimant pursuant to subsection (c) of section 7
of the Multiple Mineral Development Act of August 13, 1954 (68
Stat. 708), as amended (30 U.S.C. 527), whether such filing
occur prior to enactment of the Mineral Leasing Act Revision of
1960 or thereafter, asserting the existence of a conflicting
unpatented mining claim or claims upon which diligent work is
being prosecuted as to any lands covered by the lease, the
running of time under such lease shall be suspended as to the
lands involved from the first day of the month following the
filing of such verified statement until a final decision is
rendered in the matter.
(l) The Secretary of the Interior shall, upon timely
application therefor, issue a new lease in exchange for any
lease issued for a term of twenty years, or any renewal
thereof, or any lease issued prior to August 8, 1946, in
exchange for a twenty-year lease, such new lease to be for a
primary term of five years and so long thereafter as oil or gas
is produced in paying quantities and at a royalty rate of not
less than 12\1/2\ per centum in amount of value of the
production removed or sold from such leases, except that the
royalty rate shall be 12\1/2\ per centum in amount or value of
the production removed or sold from said leases as to (1) such
leases, or such parts of the lands subject thereto and the
deposits underlying the same, as are not believed to be within
the productive limits of any producing oil or gas deposit, as
such productive limits are found by the Secretary to have
existed on August 8, 1946; and (2) any production on a lease
from an oil or gas deposit which was discovered after May 27,
1941, by a well or wells drilled within the boundaries of the
lease, and which is determined by the Secretary to be a new
deposit; and (3) any production on or allocated to a lease
pursuant to an approved cooperative or unit plan of development
or operation from an oil or gas deposit which was discovered
after May 27, 1941, on land committed to such plan, and which
is determined by the Secretary to be a new deposit, where such
lease, or a lease for which it is exchanged, was included in
such plan at the time of discovery or was included in a duly
executed and filed application for the approval of such plan at
the time of discovery.
(m) For the purpose of more properly conserving the natural
resources of any oil or gas pool, field, or like area, or any
part thereof (whether or not any part of said oil or gas pool,
field, or like area, is then subject to any cooperative or unit
plan of development or operation), lessees thereof and their
representatives may unite with each other, or jointly or
separately with others, in collective adopting and operating
under a cooperative or unit plan of development or operation of
such pool, field, or like area, or any part thereof, whenever
determined and certified by the Secretary of the Interior to be
necessary or advisable in the public interest. The Secretary is
thereunto authorized, in his discretion, with the consent of
the holders of leases involved, to establish, alter, change, or
revoke drilling, producing, rental, minimum royalty, and
royalty requirements of such leases and to make such
regulations with reference to such leases, with like consent on
the part of the lessees, in connection with the institution and
operation of any such cooperative or unit plan as he may deem
necessary or proper to secure the proper protection of the
public interest. The Secretary may provide that oil and gas
leases hereafter issued under this Act shall contain a
provision requiring the lessee to operate under such a
reasonable cooperative or unit plan, and he may prescribe such
a plan under which such lessee shall operate, which shall
adequately protect the rights of all parties in interest,
including the United States.
Any plan authorized by the preceding paragraph which includes
lands owned by the United States may, in the discretion of the
Secretary, contain a provision whereby authority is vested in
the Secretary of the Interior, or any such person, committee,
or State or Federal officer or agency as may be designated in
the plan, to alter or modify from time to time the rate of
prospecting and development and the quantity and rate of
production under such plan. All leases operated under any such
plan approved or prescribed by the Secretary shall be excepted
in determining holdings or control under the provisions of any
section of this Act.
When separate tracts cannot be independently developed and
operated in conformity with an established well-spacing or
development program, any lease, or a portion thereof, may be
pooled with other lands, whether or not owned by the United
States, under a communitization or drilling agreement providing
for an apportionment of production or royalties among the
separate tracts of land comprising the drilling or spacing unit
when determined by the Secretary of the Interior to be in the
public interest, and operations or production pursuant to such
an agreement shall be deemed to be operations or production as
to each such lease committed thereto.
Any lease issued for a term of twenty years, or any renewal
thereof, or any portion of such lease that has become the
subject of a cooperative or unit plan of development or
operation of a pool, field, or like area, which plan has the
approval of the Secretary of the Interior, shall continue in
force until the termination of such plan. Any other lease
issued under any section of this Act which has heretofore or
may hereafter be committed to any such plan that contains a
general provision for allocation of oil or gas shall continue
in force and effect as to the land committed so long as the
lease remains subject to the plan: Provided, That production is
had in paying quantities under the plan prior to the expiration
date of the term of such lease. Any lease heretofore or
hereafter committed to any such plan embracing lands that are
in part within and in part outside of the area covered by any
such plan shall be segregated into separate leases as to the
lands committed and the lands not committed as of the effective
date of unitization: Provided, however, That any such lease as
to the nonunitized portion shall continue in force and effect
for the term thereof but for not less than two years from the
date of such segregation and so long thereafter as oil or gas
is produced in paying quantities. The minimum royalty or
discovery rental under any lease that has become subject to any
cooperative or unit plan of development or operation, or other
plan that contains a general provision for allocation of oil or
gas, shall be payable only with respect to the lands subject to
such lease to which oil or gas shall be allocated under such
plan. Any lease which shall be eliminated from any such
approved or prescribed plan, or from any communitization or
drilling agreement authorized by this section, and any lease
which shall be in effect at the termination of any such
approved or prescribed plan, or at the termination of any such
communitization or drilling agreement, unless relinquished,
shall continue in effect for the original term thereof, but for
not less than two years, and so long thereafter as oil or gas
is produced in paying quantities.
The Secretary of the Interior is hereby authorized, on such
conditions as he may prescribe, to approve operating, drilling,
or development contracts made by one or more lessees of oil or
gas leases, with one or more persons, associations, or
corporations whenever, in his discretion, the conservation of
natural products or the public convenience or necessity may
require it or the interests of the United States may be best
subserved thereby. All leases operated under such approved
operating, drilling, or development contracts, and interests
thereunder, shall be excepted in determining holdings or
control under the provisions of this Act.
The Secretary of the Interior, to avoid waste or to promote
conservation of natural resources, may authorize the subsurface
storage of oil or gas, whether or not produced from federally
owned lands, in lands leased or subject to lease under this
Act. Such authorization may provide for the payment of a
storage fee or rental on such stored oil or gas or, in lieu of
such fee or rental, for a royalty other than that prescribed in
the lease when such stored oil or gas is produced in
conjunction with oil or gas not previously produced. Any lease
on which storage is so authorized shall be extended at least
for the period of storage and so long thereafter as oil or gas
not previously produced is produced in paying quantities.
(n)(1)(A) The owner of (1) an oil and gas lease issued prior
to the date of enactment of the Combined Hydrocarbon Leasing
Act of 1981 or (2) a valid claim to any hydrocarbon resources
leasable under this section based on a mineral location made
prior to January 21, 1926, and located within a special tar
sand area shall be entitled to convert such lease or claim to a
combined hydrocarbon lease for a primary term of ten years upon
the filing of an application within two years from the date of
enactment of that Act containing an acceptable plan of
operations which assures reasonable protection of the
environment and diligent development of those resources
requiring enhanced recovery methods of development or mining.
For purposes of conversion, no claim shall be deemed invalid
solely because it was located as a placer location rather than
a lode location or vice versa, notwithstanding any previous
adjudication on that issue.
(B) The Secretary shall issue final regulations to implement
this section within six months of the effective date of this
Act. If any oil and gas lease eligible for conversion under
this section would otherwise expire after the date of this Act
and before six months following the issuance of implementing
regulations, the lessee may preserve his conversion right under
such lease for a period ending six months after the issuance of
implementing regulations by filing with the Secretary, before
the expiration of the lease, a notice of intent to file an
application for conversion. Upon submission of a complete plan
of operations in substantial compliance with the regulations
promulgated by the Secretary for the filing of such plans, the
Secretary shall suspend the running of the term of any oil and
gas lease proposed for conversion until the plan is finally
approved or disapproved. The Secretary shall act upon a
proposed plan of operations within fifteen months of its
submittal.
(C) When an existing oil and gas lease is converted to a
combined hydrocarbon lease, the royalty shall be that provided
for in the original oil and gas lease and for a converted
mining claim, 12\1/2\ per centum in amount or value of
production removed or sold from the lease.
(2) Except as provided in this section, nothing in the
Combined Hydrocarbon Leasing Act of 1981 shall be construed to
diminish or increase the rights of any lessee under any oil and
gas lease issued prior to the enactment of such Act.
(o) Certain Outstanding Oil and Gas.--(1) Prior to the
commencement of surface-disturbing activities relating to the
development of oil and gas deposits on lands described under
paragraph (5), the Secretary of Agriculture shall require,
pursuant to regulations promulgated by the Secretary, that such
activities be subject to terms and conditions as provided under
paragraph (2).
(2) The terms and conditions referred to in paragraph (1)
shall require that reasonable advance notice be furnished to
the Secretary of Agriculture at least 60 days prior to the
commencement of surface disturbing activities.
(3) Advance notice under paragraph (2) shall include each of
the following items of information:
(A) A designated field representative.
(B) A map showing the location and dimensions of all
improvements, including but not limited to, well sites
and road and pipeline accesses.
(C) A plan of operations, of an interim character if
necessary, setting forth a schedule for construction
and drilling.
(D) A plan of erosion and sedimentation control.
(E) Proof of ownership of mineral title.
Nothing in this subsection shall be construed to affect any
authority of the State in which the lands concerned are located
to impose any requirements with respect to such oil and gas
operations.
(4) The person proposing to develop oil and gas deposits on
lands described under paragraph (5) shall either--
(A) permit the Secretary to market merchantable
timber owned by the United States on lands subject to
such activities; or
(B) arrange to purchase merchantable timber on lands
subject to such surface disturbing activities from the
Secretary of Agriculture, or otherwise arrange for the
disposition of such merchantable timber, upon such
terms and upon such advance notice of the items
referred to in subparagraphs (A) through (E) of
paragraph (3) as the Secretary may accept.
(5)(A) The lands referred to in this subsection are those
lands referenced in subparagraph (B) which are under the
administration of the Secretary of Agriculture where the United
States acquired an interest in such lands pursuant to the Act
of March 1, 1911 (36 Stat. 961 and following), but does not
have an interest in oil and gas deposits that may be present
under such lands. This subsection does not apply to any such
lands where, under the provisions of its acquisition of an
interest in the lands, the United States is to acquire any oil
and gas deposits that may be present under such lands in the
future but such interest has not yet vested with the United
States.
(B) This subsection shall only apply in the Allegheny
National Forest.
(p) Deadlines for Consideration of Applications for
Permits.--
(1) In general.--Not later than 10 days after the
date on which the Secretary receives an application for
any permit to drill, the Secretary shall--
(A) notify the applicant that the application
is complete; or
(B) notify the applicant that information is
missing and specify any information that is
required to be submitted for the application to
be complete.
(2) Issuance or deferral.--Not later than 30 days
after the applicant for a permit has submitted a
complete application, the Secretary shall--
(A) issue the permit, if the requirements
under the National Environmental Policy Act of
1969 and other applicable law have been
completed within such timeframe; or
(B) defer the decision on the permit and
provide to the applicant a notice--
(i) that specifies any steps that the
applicant could take for the permit to
be issued; and
(ii) a list of actions that need to
be taken by the agency to complete
compliance with applicable law together
with timelines and deadlines for
completing such actions.
(3) Requirements for deferred applications.--
(A) In general.--If the Secretary provides
notice under paragraph (2)(B), the applicant
shall have a period of 2 years from the date of
receipt of the notice in which to complete all
requirements specified by the Secretary,
including providing information needed for
compliance with the National Environmental
Policy Act of 1969.
(B) Issuance of decision on permit.--If the
applicant completes the requirements within the
period specified in subparagraph (A), the
Secretary shall issue a decision on the permit
not later than 10 days after the date of
completion of the requirements described in
subparagraph (A), unless compliance with the
National Environmental Policy Act of 1969 and
other applicable law has not been completed
within such timeframe.
(C) Denial of permit.--If the applicant does
not complete the requirements within the period
specified in subparagraph (A) or if the
applicant does not comply with applicable law,
the Secretary shall deny the permit.
(q) No Federal Permit Required for Oil and Gas Activities on
Certain Land.--
(1) In general.--The Secretary shall not require an
operator to obtain a Federal drilling permit for oil
and gas exploration and production activities conducted
on non-Federal surface estate, provided that--
(A) the United States holds an ownership
interest of less than 50 percent of the
subsurface mineral estate to be accessed by the
proposed action; and
(B) the operator submits to the Secretary a
State permit to conduct oil and gas exploration
and production activities on the non-Federal
surface estate.
(2) No federal action.--Oil and gas exploration and
production activities carried out under paragraph (1)--
(A) shall require no additional Federal
action;
(B) may commence 30 days after submission of
the State permit to the Secretary;
(C) are categorically excluded from any
further analysis and documentation under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(D) shall not require any analysis under
section 106 of the National Historic
Preservation Act of 1966, as amended (54 U.S.C.
306108); and
(E) shall not require any analysis,
assessment, or consultation under section 7 of
the Endangered Species Act of 1973 (16 U.S.C.
1536).
(3) Royalties and production accountability.--(A)
Nothing in this subsection shall affect the amount of
royalties due to the United States under this Act from
the production of oil and gas, or alter the Secretary's
authority to conduct audits and collect civil penalties
pursuant to the Federal Oil and Gas Royalty Management
Act of 1982 (30 U.S.C. 1711 et seq.).
(B) The Secretary may conduct on-site reviews and
inspections to ensure proper accountability,
measurement, and reporting of production of Federal oil
and gas, and payment of royalties.
(4) Exceptions.--This subsection shall not apply to
actions on Indian lands or resources managed in trust
for the benefit of Indian tribes.
* * * * * * *
DISSENTING VIEWS
H.R. 6107 would waive all federal requirements for oil and
gas wells on state or private land that develop federal oil and
gas if the majority of resources produced by the well are under
non-federal ownership. The bill is an attempt to exempt oil and
gas companies that extract public resources from numerous
environmental and public protections, including the National
Environmental Policy Act (NEPA), the Endangered Species Act,
(ESA) and the National Historic Preservation Act (NHPA).
In certain areas, horizontal wells drilled from private or
state land may cross portions of underground federal resources.
Such wells are considered federal wells and companies are
required to have an Application for Permit to Drill (APD)
approved by the Bureau of Land Management (BLM) before drilling
can begin. Under H.R. 6107, no APD submission would be required
for wells where the federal government owns less than 50
percent of oil and gas resources. In addition to the waiver of
numerous bedrock environmental protections, the bill would
prevent BLM from being able to review the APD, which is
problematic. In addition to preventing BLM from being able to
verify that the resources produced by the well will be less
than 50 percent federal, BLM will be unable to carry out its
responsibilities to ensure that federal resources are developed
responsibly.
By exempting these wells from more protective federal
environmental and public notification standards, the bill would
incentivize companies to drill wells in a manner that ensured
less than fifty percent of the resources produced would be
federal. This could result in significantly more surface
impacts and fewer royalties for American taxpayers.
Congressman Alan Lowenthal offered an amendment that would
have required states to have stringent methane capture
regulations before companies could avoid submitting an APD to
BLM under this bill. Weak regulations on methane emissions cost
taxpayers millions of dollars each year in lost royalties, and
contribute to climate change and local air pollution. Even with
recent studies finding methane emissions from oil and gas
production are roughly 60 percent higher than Environmental
Protection Agency estimates, the Majority voted down the
amendment.\1\
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\1\R.A. Alvarez, et al., Assessment of methane emissions from the
U.S. oil and gas supply chain, Science 10.1126/science.aar7204 (2018).
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H.R. 6107 is another crude attempt to speed fossil fuel
development on public lands at the expense of the environment
and human health, and we oppose the legislation.
Raul M. Grijalva,
Ranking Member, Committee on
Natural Resources.
Jared Huffman.
Nydia M. Velazquez.
A. Donald McEachin.
[all]