,i #aafth ,,congress #ast ,session ,h4 ,r4 #cbbe ,,in ,,the ,,house ,,of ,,representatives ,june #ab1 #bjai ,mr4 ,levin of ,california 7for himself1 ,mr4 ,grijalva1 and ,mr4 ,lowenthal7 introduced the following bill2 which was referred to the ,committee on ,natural ,resources1 and in addition to the ,committee on ,agriculture1 for a period to be subsequently determined by the ,speaker1 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 drilling1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restoring ,community ,input and ,public ,protections in ,oil and ,gas ,leasing ,act of #bjai4 #b4 ,leasing process 7a7 ,onshore oil and gas leasing ,section #ag7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;a77 is amended to read as follows3 7a7 ,leasing authority 7#a7 ,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 ,secretary4 7#b7 ,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 ,states4 4 7b7 ,competitive bidding ,section #ag7;b77#a77;,a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;b77#a77;,a77 is amended to read as follows3 7,a7 ,competitive bidding 7i7 ,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 bid4 7ii7 ,geographic limitation ,the ,secretary shall lease lands under this paragraph in units of not more than #b1efj acres1 except in ,alaska1 where units shall be not more than #e1gfj acres4 ,such units shall be as nearly compact as possible4 7iii7 ,frequency ,lease sales under this section shall be held for each ,state in which there are lands eligible for leasing no more than #c 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 year4 7iv7 ,royalty ,a lease under this section shall be conditioned upon the payment of a royalty at a rate of not less than #ah4e percent in amount or value of the production removed or sold from the lease1 except as otherwise provided in this ,act4 7v7 ,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 bid4 ,the ,secretary shall decide whether to accept a bid and issue a lease within #ij days following payment by the successful bidder of the remainder of the bonus bid1 if any1 and annual rental for the first lease year4 7vi7 ,rejection of bid ,the ,secretary may reject a bid above the national minimum acceptable bid if1 after evaluation of the value of the lands proposed for lease1 the ,secretary determines that the bid amount does not ensure that fair market value is obtained for the lease4 4 7c7 ,national minimum acceptable bid ,subparagraph 7,b7 of section #ag7;b77#a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;b77#a771 is amended to read as follows3 7,b7 ,national minimum acceptable bid 7i7 ,in general ,the national minimum acceptable bid shall be #e per acre4 ,all bids under this section for less than the national minimum acceptable bid shall be rejected4 7ii7 ,raising the national minimum acceptable bid ,the ,secretary may establish a higher national minimum acceptable bid-- 7,i7 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 #bjai1 at least once every #d years1 to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics2 and 7,,ii7 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 lands4 7iii7 ,not a major ,federal action ,the proposal or issuance of any regulation to establish a higher national minimum acceptable bid under clause 7ii7 shall not be considered a major ,federal action that is subject to the requirements of section #ajb7b77;,c7 of the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dccb7b77;,c774 4 7d7 ,rentals ,section #ag7;d7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;d77 is amended to read as follows3 7d7 ,annual rentals ,all leases issued under this section shall be conditioned upon the payment by the lessee of a rental of-- 7#a7 not less than #c4jj per acre per year during the #b-year period beginning on the date the lease begins for new leases1 and after the end of such two year period not less than #e per acre per year2 or 7#b7 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 lands4 4 7e7 ,elimination of noncompetitive leasing ,the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 is amended-- 7#a7 in section #ag7;b7 7#cj ,u4,s4,c4 #bbf7;b771 by striking paragraph 7#c72 7#b7 by amending section #ag7;c7 7#cj ,u4,s4,c4 #bbf7;c77 to read as follows3 7c7 ,lands made available for leasing under subsection 7b77#a7 but for which no bid is accepted may be made available by the ,secretary for a new round of sealed bidding under such subsection4 2 7#c7 in section #ag7;e7 7#cj ,u4,s4,c4 #bbf7;e77-- 7,a7 by striking ,competitive and noncompetitive leases and inserting ,leases1 including leases for tar sand areas12 and 7,b7 by striking ,provided1 however and all that follows through ten years42 7#d7 in section #ca7;d77#a7 7#cj ,u4,s4,c4 #ahh7;d77#a77 by striking or section #ag7;c72 7#e7 in section #ca7;e7 7#cj ,u4,s4,c4 #ahh7;e77-- 7,a7 in paragraph 7#b7 by striking 1 or the inclusion and all that follows and inserting a semicolon2 and 7,b7 in paragraph 7#c7 by striking 7,a7 and by striking subparagraph 7,b72 7#f7 by striking section #ca7;f7 7#cj ,u4,s4,c4 #ahh7;f772 and 7#g7 in section #ca7;g7 7#cj ,u4,s4,c4 #ahh7;g77-- 7,a7 in paragraph 7#a7 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 #ag42 7,b7 by striking paragraph 7#b7 and redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#b7 and 7#c71 respectively2 and 7,c7 in paragraph 7#b71 as redesignated1 by striking 1 applicable to leases issued under subsection #ag7;c7 of this ,act 7#cj ,u4,s4,c4 #bbf7;c77 except1 and inserting 1 except4 7f7 ,lease term ,section #ag7;e7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;e77 is amended by striking #aj years3 and inserting #e years4 7g7 ,other leasing requirements ,section #ag7;g7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;g771 as amended by section #h of this ,act1 is further amended by adding at the end the following3 7#g7 ,limitation ,the ,secretary shall not issue a lease or approve the assignment of any lease to any person1 or to any subsidiary or affiliate of such person or any other person controlled by or under common control with such person1 unless such person has the demonstrated capability to explore and produce oil and gas under the lease4 7#h7 ,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 gas4 4 #c4 ,transparency and landowner protections 7a7 ,disclosure of identities filing disclosures of interest and bids ,section #ag7;b7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;b771 as amended by this ,act1 is further amended by adding at the end the following3 7#c7 ,bidder identity ,the ,secretary-- 7,a7 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 submitted2 and 7,b7 shall promptly publish each such name4 4 7b7 ,notice requirements ,section #ag7;f7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;f77 is amended by striking ,at least and all that follows through agencies4 and inserting the following3 7#a7 ,required notice ,at least #de days before offering lands for lease under this section1 and at least #cj days before approving applications for permits to drill under the provisions of a lease1 modifying the terms of any lease issued under this section1 or granting a waiver1 exception1 or modification of any stipulation of a lease issued under this section1 the ,secretary shall provide notice of the proposed action to-- 7,a7 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 lease2 7,b7 all surface land owners in the area of the lands being offered for lease2 and 7,c7 the holders of special recreation permits for commercial use1 competitive events1 and other organized activities on the lands being offered for lease4 7#b7 ,required information 4 7c7 ,surface owner protection 7#a7 ,post-lease surface use agreement 7,a7 ,in general ,except as provided in paragraph 7#b71 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 ,states1 until the operator has filed with the ,secretary a document1 signed by the operator and the surface owner or owners1 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 7,b74 7,b7 ,contents ,the surface use agreement shall provide for-- 7i7 the use of only such portion of the surface estate as is reasonably necessary for exploration and drilling operations based on site-specific conditions2 7ii7 the accommodation of the surface estate owner to the maximum extent practicable1 including the location1 use1 timing1 and type of exploration and drilling operations1 consistent with the operator's right to develop the oil and gas estate2 7iii7 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 operations2 and 7iv7 compensation for damages as a result of exploration and drilling operations1 including-- 7,i7 loss of income and increased costs incurred2 7,,ii7 damage to or destruction of personal property1 including crops1 forage1 and livestock2 and 7,,iii7 failure to reclaim the site in accordance with clause 7iii74 7,c7 ,procedure 7i7 ,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 section4 ,if the surface estate owner and the operator do not reach an agreement within #ij days after the operator has provided such notice1 the operator may submit the matter to third-party arbitration for resolution within a period of #ij days4 ,the cost of such arbitration shall be the responsibility of the operator4 7ii7 ,list of arbitrators ,the ,secretary shall identify persons with experience in conducting arbitrations and shall make this information available to operators4 7iii7 ,referral ,referral of a matter for arbitration by an operator to an arbitrator identified by the ,secretary pursuant to clause 7ii7 shall be sufficient to constitute compliance with clause 7i74 7,d7 ,attorneys fees ,if action is taken to enforce or interpret any of the terms and conditions contained in a surface use agreement1 the prevailing party shall be reimbursed by the other party for reasonable attorneys fees and actual costs incurred1 in addition to any other relief which a court or arbitration panel may grant4 7#b7 ,authorized exploration and drilling operations 7,a7 ,authorization without surface use agreement ,the ,secretary may authorize an operator to conduct exploration and drilling operations on lands covered by paragraph 7#a7 in the absence of an agreement with the surface estate owner or owners1 if-- 7i7 the ,secretary makes a determination in writing that the operator made a good faith attempt to conclude such an agreement1 including referral of the matter to arbitration pursuant to paragraph 7#a77;,c71 but that no agreement was concluded within #ij days after the referral to arbitration2 7ii7 the operator submits a plan of operations that provides for the matters specified in paragraph 7#a77;,b7 and for compliance with all other applicable requirements of ,federal and ,state law2 and 7iii7 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 site1 in the form of a surety bond1 trust fund1 letter of credit1 government security1 certificate of deposit1 cash1 or equivalent4 7,b7 ,surface owner participation ,the ,secretary shall provide surface estate owners with an opportunity to-- 7i7 comment on plans of operations in advance of a determination of compliance with this ,act2 7ii7 participate in bond level determinations and bond release proceedings under this section2 7iii7 attend an on-site inspection during such determinations and proceedings2 7iv7 file written objections to a proposed bond release2 and 7v7 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 operations4 7,c7 ,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 operations4 ,pursuant to such a petition1 the ,secretary may use such bond or other guarantee to provide compensation to the surface estate owner for such damages4 7,d7 ,bond release ,upon request and after inspection and opportunity for surface estate owner review1 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 compensated4 7#c7 ,surface owner notification ,the ,secretary shall notify surface estate owners in writing-- 7,a7 not less than #de days before lease sales2 7,b7 of the identity of the lessee1 not more than #aj business days after a lease is issued2 7,c7 concerning any subsequent request or decision regarding a lease not more than #e business days after such request or decision1 including regarding modification of a lease1 waiver of a stipulation1 or approval of a right of way2 and 7,d7 not more than #e business days after issuance of a drilling permit under a lease4 #d4 ,lease stipulations 7a7 ,energy policy ,act of #bjje ,section #cfc7;b77#c77;,c7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeibb7;b77#c77;,c77 is amended to read as follows3 7,c7 adequately protective of the resource for which the stipulations are applied2 4 7b7 ,revision of existing memorandum ,not later than #ahj 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 #cfc7;b77#c77;,c7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeibb7 in accordance with the amendment made by subsection 7a74 #e4 ,master leasing plans ,section #ag7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;a771 as amended by section #b1 is further amended by adding at the end the following3 7#c7 ,master leasing plans 7,a7 ,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 lands1 in accordance with ,bureau of ,land ,management ,instruction ,memorandum ,no4 #bjaj-aag1 dated ,may #ag1 #bjaj1 as in effect on ,april #bd1 #bjag4 7,b7 ,factors and considerations ,in deciding whether to adopt and implement a master leasing plan1 the ,secretary-- 7i7 shall consider the criteria set forth in ,bureau of ,land ,management ,instruction ,memorandum ,no4 #bjaj-aag1 dated ,may #ag1 #bjaj1 as in effect on ,april #bd1 #bjag2 and 7ii7 shall consider the benefits of avoiding conflicts between mineral leasing and other land uses1 including conservation1 recreation1 and protection of cultural and historic resources4 7,c7 ,state request ,the ,secretary shall adopt and implement a master leasing plan under subparagraph 7,a7 applicable to leases for ,federal lands in a ,state or county of a ,state1 if requested by the government of such ,state or county1 respectively4 7,d7 ,request by an individual 7i7 ,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 7,a7 applicable to the issuance of leases for ,federal lands in such ,state or county1 respectively4 7ii7 ,consideration ,if the ,secretary receives such a petition1 the ,secretary shall1 not later than #fj days after receiving such petition1 issue a determination of whether or not the adoption and implementation of such a master leasing plan is appropriate4 4 #f4 ,parcel review ,section #ag7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;a771 as amended by sections #b and #e of this ,act1 is further amended by adding at the end the following3 7#d7 ,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 ,no4 #bjaj-aag1 dated ,may #ag1 #bjaj1 as in effect on ,april #bd1 #bjag4 4 #g4 ,acreage limitations ,section #bg7;d77#a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #ahd7;d77#a77 is amended by striking 1 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 7including compensatory royalty or royalty in-kind7 was paid in the preceding calendar year14 #h4 ,land management ,section #ag7;g7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;g771 as amended by section #b7;g7 of this ,act1 is further amended by adding at the end the following3 7#i7 ,multiple-use management ,the ,secretary1 and for ,national ,forest lands1 the ,secretary of ,agriculture1 shall manage lands that are subject to an oil and gas lease under this ,act in accordance with the principles1 policies1 and requirements relating to multiple use under the ,federal ,land ,policy and ,management ,act of #aigf 7#dc ,u4,s4,c4 #agja et seq471 until the beginning of operations on such lease4 4 #i4 ,oil shale ,section #ba7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bda7;a77 is amended-- 7#a7 in paragraph 7#a71 by striking ,the ,secretary of the ,interior and inserting ,subject to paragraph 7#f71 the ,secretary of the ,interior2 and 7#b7 by adding at the end the following3 7#f7 ,beginning on the date of enactment of the ,restoring ,community ,input and ,public ,protections in ,oil and ,gas ,leasing ,act of #bjai1 ,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 #cfi of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeibg74 4 #aj4 ,transparency in management of leases ,section #ag7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;a771 as amended by sections #b1 #e1 and #f of this ,act1 is further amended by adding at the end the following3 7#e7 ,transparency in management of leases ,for each lease under this section1 the ,secretary shall make available on a public website-- 7,a7 the identity of-- 7i7 each person who is or has been a lessee under the lease2 and 7ii7 each person who is or has been an operator under the lease2 7,b7 notice of each transfer of the lease2 and 7,c7 notice of each suspension of operations1 each suspension of production1 and each suspension of operations and production4 4 #aa4 ,lease cancellation for improper issuance ,section #ca7;b7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #ahh7;b77 is amended by inserting if the lease was improperly issued or after #cj days notice4 #ab4 ,fees for ,expressions of ,interest ,the ,secretary of the ,interior shall charge any person who submits an expression of interest1 as that term is defined by the ,secretary1 a fee1 in an amount determined by the ,secretary to be appropriate in aggregate to cover the aggregate cost of processing expressions of interest4