[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 526 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 526
To amend the Mineral Leasing Act to make certain adjustments to the
royalty rates for leases for oil and gas extraction on Federal land,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2025
Mr. Ogles (for himself, Mr. Pfluger, Mr. Weber of Texas, Mr. Brecheen,
Ms. Hageman, Ms. Maloy, and Mr. Williams of Texas) introduced the
following bill; which was referred to the Committee on Natural
Resources
_______________________________________________________________________
A BILL
To amend the Mineral Leasing Act to make certain adjustments to the
royalty rates for leases for oil and gas extraction on Federal land,
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 ``Declaration of Energy Independence
Act''.
SEC. 2. AMENDMENTS TO MINERAL LEASING ACT.
(a) Onshore Oil and Gas Royalty Rates.--
(1) Lease of oil and gas land.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended--
(A) by striking ``16\2/3\ percent'' each place it
appears and inserting ``12\1/2\ percent''; and
(B) in subsection (b)(1)(A), by striking ``or, in
the case of'' and all that follows through ``removed or
sold from the lease. The'' and inserting ``. The''.
(2) Conditions for reinstatement.--Section 31(e)(3) of the
Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by
striking ``20'' each place it appears and inserting ``16\2/
3\''.
(b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral Leasing
Act (30 U.S.C. 226(b)) is amended--
(1) in paragraph (1)(B), by striking ``$10 per acre during
the 10-year period beginning on the date of enactment of the
Act titled `An Act to provide for reconciliation pursuant to
title II of S. Con. Res. 14''' and inserting ``$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''; and
(2) in paragraph (2)(C), by striking ``$10 per acre'' and
inserting ``$2 per acre''.
(c) Fossil Fuel Rental Rates.--
(1) Annual rentals.--Section 17(d) of the Mineral Leasing
Act (30 U.S.C. 226(d)) is amended by striking ``than $3 per
acre per year'' and all that follows through ``and $15 per acre
per year thereafter'' and inserting ``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''.
(2) Rentals in reinstated leases.--Section 31(e)(2) of the
Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by
striking ``$20'' and inserting ``$10''.
(d) Elimination of Fee for Expression of Interest.--Section 17 of
the Mineral Leasing Act (30 U.S.C. 226) is amended by striking
subsection (q).
(e) Noncompetitive Leasing.--Section 17 of the Mineral Leasing Act
(30 U.S.C. 226) is amended--
(1) in subsection (b)--
(A) in paragraph (1)(A)--
(i) by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3) of this
subsection''; and
(ii) by inserting ``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.'' after the period at the end; and
(B) by adding at the end the following:
``(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).'';
(2) by striking subsection (c) and inserting the 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.''; and
(3) by striking subsection (e) and inserting the following:
``(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) Conforming Amendments.--Section 31 of the Mineral Leasing Act
(30 U.S.C. 188) is amended--
(1) in subsection (d)(1), by inserting ``or section 17(c)
of this Act'' after ``pursuant to section 17(b)'';
(2) in subsection (e)--
(A) in paragraph (2)--
(i) by inserting ``either'' after ``rentals
and''; and
(ii) by inserting ``or the inclusion in a
reinstated lease issued pursuant to the
provisions of section 17(c) of this Act of a
requirement that future rentals shall be at a
rate not less than $5 per acre per year, all''
after ``per acre per year,''; and
(B) in paragraph (3)--
(i) by striking ``(3) payment'' and
inserting the following:
``(3)(A) payment''; and
(ii) by adding at the end the following:
``(B) payment of back royalties and inclusion in a
reinstated lease issued pursuant to the provisions of section
17(c) of this Act of a requirement for future royalties at a
rate not less than 16\2/3\ percent: Provided, That royalty on
such reinstated lease shall be paid on all production removed
or sold from such lease subsequent to the cancellation or
termination of the original lease; and'';
(3) by redesignating subsections (f) through (i) as
subsections (g) through (j), respectively;
(4) by inserting after subsection (e) the following:
``(f) Where an unpatented oil placer mining claim validly located
prior to February 24, 1920, which has been or is currently producing or
is capable of producing oil or gas, has been or is hereafter deemed
conclusively abandoned for failure to file timely the required
instruments or copies of instruments required by section 314 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744), and it
is shown to the satisfaction of the Secretary that such failure was
inadvertent, justifiable, or not due to lack of reasonable diligence on
the part of the owner, the Secretary may issue, for the lands covered
by the abandoned unpatented oil placer mining claim, a noncompetitive
oil and gas lease, consistent with the provisions of section 17(e) of
this Act, to be effective from the statutory date the claim was deemed
conclusively abandoned. Issuance of such a lease shall be conditioned
upon--
``(1) a petition for issuance of a noncompetitive oil and
gas lease, together with the required rental and royalty,
including back rental and royalty accruing from the statutory
date of abandonment of the oil placer mining claim, being filed
with the Secretary--
``(A) with respect to any claim deemed conclusively
abandoned on or before the date of enactment of the
Federal Oil and Gas Royalty Management Act of 1982, on
or before the one hundred and twentieth day after such
date of enactment, or
``(B) with respect to any claim deemed conclusively
abandoned after such date of enactment, on or before
the one hundred and twentieth day after final
notification by the Secretary or a court of competent
jurisdiction of the determination of the abandonment of
the oil placer mining claim;
``(2) a valid lease not having been issued affecting any of
the lands covered by the abandoned oil placer mining claim
prior to the filing of such petition: Provided, however, That
after the filing of a petition for issuance of a lease under
this subsection, the Secretary shall not issue any new lease
affecting any of the lands covered by such abandoned oil placer
mining claim for a reasonable period, as determined in
accordance with regulations issued by him;
``(3) a requirement in the lease for payment of rental,
including back rentals accruing from the statutory date of
abandonment of the oil placer mining claim, of not less than $5
per acre per year;
``(4) a requirement in the lease for payment of royalty on
production removed or sold from the oil placer mining claim,
including all royalty on production made subsequent to the
statutory date the claim was deemed conclusively abandoned, of
not less than 12\1/2\ percent; and
``(5) compliance with the notice and reimbursement of costs
provisions of paragraph (4) of subsection (e) but addressed to
the petition covering the conversion of an abandoned unpatented
oil placer mining claim to a noncompetitive oil and gas
lease.'';
(5) in subsection (g) (as so redesignated)--
(A) in paragraph (1), by striking ``in the same
manner as the original lease issued pursuant to section
17'' and inserting ``as a competitive or a
noncompetitive oil and gas lease in the same manner as
the original lease issued pursuant to section 17(b) or
17(c) of this Act'';
(B) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively;
(C) by inserting after paragraph (1) the following:
``(2) Except as otherwise provided in this section, the issuance of
a lease in lieu of an abandoned patented oil placer mining claim shall
be treated as a noncompetitive oil and gas lease issued pursuant to
section 17(c) of this Act.''; and
(D) in paragraph (3) (as so redesignated), by
inserting ``applicable to leases issued under
subsection 17(c) of this Act (30 U.S.C. 226(c))'' after
``this section,'';
(6) in subsection (h) (as so redesignated), by striking
``subsection (d)'' and inserting ``subsections (d) and (f) of
this section''; and
(7) by striking subsection (i) (as so redesignated) and
inserting the following:
``(i)(1) In acting on a petition to issue a noncompetitive oil and
gas lease, under subsection (f) of this section or in response to a
request filed after issuance of such a lease, or both, the Secretary is
authorized to reduce the royalty on such lease if in his judgment it is
equitable to do so or the circumstances warrant such relief due to
uneconomic or other circumstances which could cause undue hardship or
premature termination of production.
``(2) In acting on a petition for reinstatement pursuant to
subsection (d) of this section or in response to a request filed after
reinstatement, or both, the Secretary is authorized to reduce the
royalty in that reinstated lease on the entire leasehold or any tract
or portion thereof segregated for royalty purposes if, in his judgment,
there are uneconomic or other circumstances which could cause undue
hardship or premature termination of production; or because of any
written action of the United States, its agents or employees, which
preceded, and was a major consideration in, the lessee's expenditure of
funds to develop the property under the lease after the rent had become
due and had not been paid; or if in the judgment of the Secretary it is
equitable to do so for any reason.''.
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