What This Bill Does
This bill changes the rules for getting permission to drill for oil and gas on certain land units (pieces of property that contain both federal and non-federal minerals). The bill is called the "Bureau of Land Management Mineral Spacing Act." It also requires companies to notify the Secretary of the Interior when they submit drilling plans to their state.
Who It Affects
Oil and gas companies that lease or operate drilling rights on mixed-ownership land units. State governments that approve drilling permits. The Secretary of the Interior (a federal official). Native American tribes and their lands.
Key Provisions
• When less than 50 percent of minerals in a drilling unit belong to the federal government AND the federal government does not own or lease the surface land being directly impacted, the Secretary of the Interior cannot require a federal permit to drill (Sec. 2(a)).
• Companies must tell the Secretary of the Interior when they submit a state drilling application, and provide a copy of that application within 5 days (Sec. 2(b)(1)).
• Companies or the state must notify the Secretary of the Interior within 45 days after a state approves a drilling permit or plan (Sec. 2(b)(2)).
• This rule does not apply to Native American lands (Sec. 2(c)).
• The bill does not change the federal government's right to collect royalties (payment percentages) from oil and gas produced from federally owned minerals (Sec. 2(d)).
What Changes
If this bill becomes law, oil and gas companies will no longer need federal drilling permits for certain mixed-ownership land units, but they must notify federal officials about state permits.
Important Definitions
Oil and gas drilling or spacing unit: A unit of land containing minerals, some owned by the federal government and some owned privately or by states.
II
Calendar No. 125
118TH CONGRESS
1ST SESSION
S. 535
[Report No. 118–53]
To streamline the oil and gas permitting process and to recognize fee owner-
ship for certain oil and gas drilling or spacing units, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 27, 2023
Mr. HOEVEN (for himself, Mr. BARRASSO, Mr. CRAMER, and Mr. DAINES) in-
troduced the following bill; which was read twice and referred to the Com-
mittee on Energy and Natural Resources
JULY 11, 2023
Reported by Mr. MANCHIN, without amendment
A BILL
To streamline the oil and gas permitting process and to
recognize fee ownership for certain oil and gas drilling
or spacing units, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Bureau of Land Man-
4
agement Mineral Spacing Act’’.
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•S 535 RS
SEC. 2. COMPLIANCE WITH BLM PERMITTING.
1
(a) IN
GENERAL.—Notwithstanding the Mineral
2
Leasing Act (30 U.S.C. 181 et seq.), the Federal Oil and
3
Gas Royalty Management Act of 1982 (30 U.S.C. 1701
4
et seq.), or subpart 3162 of title 43, Code of Federal Reg-
5
ulations (or successor regulations), but subject to any
6
State or Tribal requirements and subsection (c), the Sec-
7
retary of the Interior shall not require a permit to drill
8
for an oil and gas lease under the Mineral Leasing Act
9
(30 U.S.C. 181 et seq.) for an action occurring within an
10
oil and gas drilling or spacing unit if—
11
(1) less than 50 percent of the minerals within
12
the oil and gas drilling or spacing unit are minerals
13
owned by the Federal Government; and
14
(2) the Federal Government does not own or
15
lease the surface estate within the area directly im-
16
pacted by the action.
17
(b) NOTIFICATION.—For each State permit to drill
18
or drilling plan that would impact or extract oil and gas
19
owned by the Federal Government—
20
(1) each lessee, or designee of a lessee, shall—
21
(A) notify the Secretary of the Interior of
22
the submission of a State application for a per-
23
mit to drill or drilling plan on submission of the
24
application; and
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•S 535 RS
(B) provide a copy of the application de-
1
scribed in subparagraph (A) to the Secretary of
2
the Interior not later than 5 days after the date
3
on which the permit or plan is submitted; and
4
(2) each lessee, designee of a lessee, or applica-
5
ble State shall notify the Secretary of the Interior of
6
the approved State permit to drill or drilling plan
7
not later than 45 days after the date on which the
8
permit or plan is approved.
9
(c) NONAPPLICABILITY
TO INDIAN LANDS.—Sub-
10
section (a) shall not apply to Indian lands (as defined in
11
section 3 of the Federal Oil and Gas Royalty Management
12
Act of 1982 (30 U.S.C. 1702)).
13
(d) EFFECT.—Nothing in this section affects—
14
(1) other authorities of the Secretary of the In-
15
terior under the Federal Oil and Gas Royalty Man-
16
agement Act of 1982 (30 U.S.C. 1701 et seq.); or
17
(2) the amount of royalties due to the Federal
18
Government from the production of the Federal min-
19
erals within the oil and gas drilling or spacing unit.
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Calendar No. 125
118TH CONGRESS
1ST SESSION
S. 535
[Report No. 118–53]
A BILL
To streamline the oil and gas permitting process
and to recognize fee ownership for certain oil and
gas drilling or spacing units, and for other pur-
poses.
JULY 11, 2023
Reported without amendment
VerDate Sep 11 2014
00:52 Jul 12, 2023
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PO 00000
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Fmt 6651
Sfmt 6651
E:\BILLS\S535.RS
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