,,ii #aafth ,,congress #ast ,session ,s4 #bah ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bd1 #bjai,mr4 ,barrasso 7for himself1 ,mr4 ,enzi1 ,mr4 ,cramer1 and ,mr4 ,hoeven7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to empower ,states to manage the development and production of oil and gas on available ,federal land1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,opportunities for the ,nation and ,states to ,harness ,onshore ,resources for ,energy ,act or the ,,onshore ,act4 #b4 ,cooperative federalism in oil and gas permitting on available ,federal land 7a7 ,in general ,the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 is amended-- 7#a7 by redesignating section #dd as section #dg2 and 7#b7 by adding after section #dc the following3 #dd4 ,cooperative federalism in oil and gas permitting on available ,federal land 7a7 ,definitions ,in this section3 7#a7 ,,apd ,the term ,,apd means a permit-- 7,a7 that grants authority to drill for oil and gas2 and 7,b7 for which an application has been received that includes-- 7i7 a drilling plan2 7ii7 a surface use plan of operations described in section #cafb4c-a7;f7 of title #dc1 ,code of ,federal ,regulations 7or a successor regulation72 7iii7 evidence of bond coverage2 and 7iv7 such other information as may be required by applicable orders and notices4 7#b7 ,available ,federal land ,the term available ,federal land means any ,federal land that-- 7,a7 is located within the boundaries of a ,state2 7,b7 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 ,tribe2 7,c7 is not a unit of the ,national ,park ,system2 7,d7 is not a unit of the ,national ,wildlife ,refuge ,system1 other than a unit of the ,national ,wildlife ,refuge ,system for which oil and gas drilling is allowed under law2 7,e7 is not a congressionally approved wilderness area under the ,wilderness ,act 7#af ,u4,s4,c4 #aaca et seq472 and 7,f7 has been identified as land available for lease1 or has been leased1 for the exploration1 development1 and production of oil and gas-- 7i7 by the ,bureau of ,land ,management under-- 7,i7 a resource management plan under the ,federal ,land ,policy and ,management ,act of #aigf 7#dc ,u4,s4,c4 #agja et seq472 or 7,,ii7 an integrated activity plan with respect to the ,national ,petroleum ,reserve-,alaska2 or 7ii7 by the ,forest ,service under a ,national ,forest management plan under the ,forest and ,rangeland ,renewable ,resources ,planning ,act of #aigd 7#af ,u4,s4,c4 #afjj et seq474 7#c7 ,drilling plan ,the term drilling plan means a plan described in section #cafb4c-a7;e7 of title #dc1 ,code of ,federal ,regulations 7or a successor regulation74 7#d7 ,secretary ,the term ,secretary means the ,secretary of the ,interior4 7#e7 ,state applicant ,the term ,state applicant means a ,state that submits an application under subsection 7c74 7#f7 ,state program ,the term ,state program means a program in a ,state under which the ,state may-- 7,a7 issue ,a,p,ds or approve drilling plans1 as applicable1 on available ,federal land2 and 7,b7 impose sanctions for violations of ,state laws1 regulations1 or any condition of an issued ,,apd or approved drilling plan1 as applicable4 7#g7 ,sundry notice ,the term sundry notice means a written request-- 7,a7 to perform work not covered under an ,,apd or drilling plan2 or 7,b7 for a change to operations covered under an ,,apd or drilling plan4 7b7 ,authorizations 7#a7 ,in general ,on receipt of an application under subsection 7c71 the ,secretary may delegate to a ,state exclusive authority-- 7,a7 to issue an ,,apd on available ,federal land2 or 7,b7 to approve drilling plans on available ,federal land4 7#b7 ,sundry notices ,on request of a ,state for which authority is delegated under paragraph 7#a71 the authority delegated may include the authority to approve sundry notices4 7#c7 ,inspection and enforcement 7,a7 ,in general ,on request of a ,state for which authority is delegated under paragraph 7#a71 the authority delegated may include the authority to inspect and enforce an ,,apd or drilling plan1 as applicable4 7,b7 ,effect ,a delegation of authority under paragraph 7#a77;,a7 shall not affect the ability of the ,secretary to collect inspection fees under subsection 7d7 of section #ajh of the ,federal ,oil and ,gas ,royalty ,management ,act of #aihb 7#cj ,u4,s4,c4 #agah74 7c7 ,state application process 7#a7 ,submission of application ,a ,state seeking a delegation of authority under subparagraph 7,a7 or 7,b7 of subsection 7b77#a7 shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require1 including-- 7,a7 a description of the ,state program that the ,state proposes to administer under ,state law2 and 7,b7 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 program4 7#b7 ,deadline for approval or disapproval ,not later than #ahj days after the date on which an application under paragraph 7#a7 is received1 the ,secretary shall approve or disapprove the application4 7#c7 ,requirements for approval 7,a7 ,in general ,the ,secretary may approve an application received under paragraph 7#a7 only if the ,secretary determines that-- 7i7 the ,state applicant would be at least as effective as the ,secretary in issuing ,a,p,ds or in approving drilling plans1 as applicable2 7ii7 the ,state program of the ,state applicant-- 7,i7 complies with this ,act2 and 7,,ii7 provides for the termination or modification of an issued ,,apd or approved drilling plan1 as applicable1 for cause1 including for-- 7aa7 the violation of any condition of the issued ,,apd or approved drilling plan2 7bb7 obtaining the issued ,,apd or approved drilling plan by misrepresentation2 or 7cc7 failure to fully disclose in the application all relevant facts2 7iii7 the ,state applicant has sufficient administrative and technical personnel and sufficient funding to carry out the ,state program2 and 7iv7 approval of the application would not result in decreased royalty payments owed to the ,united ,states under section #ce7;a71 except as provided in subsection 7e7 of that section4 7,b7 ,memoranda of understanding ,with respect to a ,state applicant seeking authority under subsection 7b77#c77;,a7 to inspect and enforce ,a,p,ds or drilling plans1 as applicable1 before approving the application of the ,state applicant1 the ,secretary shall enter into a memorandum of understanding with the ,state applicant under paragraph 7#f7 that describes the ,federal and ,state responsibilities with respect to the inspection and enforcement4 7,c7 ,public notice ,before approving an application received under paragraph 7#a71 the ,secretary shall-- 7i7 provide public notice of the application2 7ii7 solicit public comment for the application2 and 7iii7 hold a public hearing for the application in the ,state4 7#d7 ,disapproval ,if the ,secretary disapproves an application submitted under paragraph 7#a71 the ,secretary shall provide to the ,state applicant written notification of-- 7,a7 the reasons for the disapproval1 including any information1 data1 or analysis on which the disapproval is based2 and 7,b7 any revisions or modifications necessary to obtain approval4 7#e7 ,resubmittal of application ,a ,state may resubmit an application under paragraph 7#a7 at any time4 7#f7 ,state memoranda of understanding ,before a ,state submits an application under paragraph 7#a71 the ,secretary1 on request of a ,state1 may enter into a memorandum of understanding with the ,state regarding the proposed ,state program-- 7,a7 to describe the ,federal and ,state responsibilities for oil and gas regulations2 7,b7 to provide technical assistance2 and 7,c7 to share best management practices4 7d7 ,administrative fees for ,a,p,ds 7#a7 ,in general ,a ,state for which authority has been delegated under subsection 7b77#a77;,a7 may collect a fee for each application for an ,,apd that is submitted to the ,state4 7#b7 ,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 7b77#a77;,a74 7#c7 ,fee amount ,the fee collected under paragraph 7#a7 shall be less than or equal to the amount of the fee collected by the ,secretary under section #ce7;d77#b7 from ,states for which authority has not been delegated under subsection 7b77#a77;,a74 7#d7 ,use ,a ,state shall use #ajj percent of the fees collected under this subsection for the administration of the approved ,state program of the ,state4 7e7 ,voluntary termination of authority 7#a7 ,in general ,after providing written notice to the ,secretary1 a ,state may voluntarily terminate any authority delegated to the ,state under subsection 7b77#a7 on expiration of the #fj-;day period beginning on the date on which the ,secretary receives the written notice4 7#b7 ,resumption by ,secretary ,on termination of the authority delegated to a ,state under paragraph 7#a71 the ,secretary shall resume any activities for which authority was delegated to the ,state under subsection 7b77#a74 7f7 ,appeal of denial of application for ,,apd or application for approval of drilling plan 7#a7 ,in general ,if a ,state for which the ,secretary has delegated authority under subsection 7b77#a7 denies an application for an ,,apd or an application for approval of a drilling plan1 the applicant may appeal the decision to the ,office of ,hearings and ,appeals of the ,department of the ,interior4 7#b7 ,fee allowed ,the ,secretary may charge an applicant a fee for an appeal under paragraph 7#a74 7g7 ,federal administration of ,state program 7#a7 ,notification ,if the ,secretary has reason to believe that a ,state is not administering or enforcing an approved ,state program1 the ,secretary shall notify the relevant ,state regulatory authority of any possible deficiencies4 7#b7 ,state response ,not later than #cj days after the date on which a ,state receives notification of a possible deficiency under paragraph 7#a71 the ,state shall-- 7,a7 take appropriate action to correct the possible deficiency2 and 7,b7 notify the ,secretary of the action in writing4 7#c7 ,determination 7,a7 ,in general ,on expiration of the #cj-;day period described in paragraph 7#b71 the ,secretary shall issue public notice of any determination of the ,secretary that-- 7i7 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 ,state2 or 7ii7 the ,state has not demonstrated the capability and intent of the ,state to administer or enforce the ,state program of the ,state4 7,b7 ,appeal ,a ,state may appeal the determination of the ,secretary under subparagraph 7,a7 in the applicable ,united ,states ,district ,court4 7,c7 ,resumption by ,secretary pending appeal ,the ,secretary may not resume activities under paragraph 7#d7 if an appeal under subparagraph 7,b7 is pending4 7#d7 ,resumption by ,secretary ,except as provided in paragraph 7#c77;,c71 if the ,secretary has made a determination under paragraph 7#c77;,a71 the ,secretary shall resume any activities for which authority was delegated to the ,state during the period-- 7,a7 beginning on the date on which the ,secretary issues the public notice under paragraph 7#c77;,a72 and 7,b7 ending on the date on which the ,secretary determines that the ,state may administer or enforce1 as applicable1 the approved ,state program of the ,state4 7#e7 ,standing ,a ,state with an approved regulatory program shall have standing to sue the ,secretary for any action taken under this subsection4 4 7b7 ,inspection fees ,section #ajh of the ,federal ,oil and ,gas ,royalty ,management ,act of #aihb 7#cj ,u4,s4,c4 #agah7 is amended by adding at the end the following3 7d7 ,inspection fees for certain ,states 7#a7 ,collection of fees 7,a7 ,in general ,the ,secretary shall collect annual nonrefundable inspection fees in the amount specified in subparagraph 7,b71 from each designated operator under each lease on ,federal or ,indian lands that is-- 7i7 subject to inspection under subsection 7b72 and 7ii7 located in a ,state for which the ,secretary has delegated authority under section #dd7;b77#a77;,a7 of the ,mineral ,leasing ,act4 7,b7 ,amount ,the amount of the fees collected under subparagraph 7,a7 shall be-- 7i7 #gjj for each lease or unit or communitization agreement with no active or inactive wells1 but with surface use1 disturbance or reclamation2 7ii7 #a1bbe for each lease or unit or communitization agreement with #a to #aj wells1 with any combination of active or inactive wells2 7iii7 #d1ijj for each lease or unit or communitization agreement with #aa to #ej wells1 with any combination of active or inactive wells2 and 7iv7 #i1hjj for each lease or unit or communitization agreement with more than #ej wells1 with any combination of active or inactive wells4 7#b7 ,onshore energy safety fund 7,a7 ,in general ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,onshore ,energy ,safety ,fund 7referred to in this subsection as the ,fund74 7,b7 ,deposits ,an amount equal to the amounts collected as fees under paragraph 7#a7 shall be deposited in the ,fund4 7,c7 ,availability ,amounts in the ,fund shall-- 7i7 only be available to the extent and in the amount provided in advance in appropriations ,acts2 7ii7 be used only for purposes described in subparagraph 7,d72 7iii7 remain available until expended2 and 7iv7 be credited as offsetting collections4 7,d7 ,use of funds ,notwithstanding section #ccjb of title #ca1 ,united ,states ,code1 amounts deposited in the ,fund shall only be available for expenditure for purposes of carrying out inspections under subsection 7b7 in those ,states for which the ,secretary has delegated authority under section #dd7;b77#a77;,a7 of the ,mineral ,leasing ,act4 7#c7 ,payment due date ,the ,secretary shall require payment of any fee assessed under paragraph 7#a7 not later than #cj days after the date on which the ,secretary provides notice of the assessment of the fee after the completion of an inspection4 7#d7 ,penalty ,if a designated operator assessed a fee under paragraph 7#a7 fails to pay the full amount of the fee required under this subsection1 the ,secretary may1 in addition to using any other applicable enforcement authority1 assess civil penalties against the operator under section #aji in the same manner as if this section were a mineral leasing law4 7#e7 ,notification to ,state of noncompliance ,if1 on the basis of any inspection under subsection 7b71 the ,secretary determines that an operator is failing to comply with the requirements of mineral leasing laws or this ,act1 the ,secretary shall notify the ,state of the failure to comply immediately4 4 7c7 ,existing authorities ,section #cij7;a7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeidb7;a77 is amended-- 7#a7 by striking ,action by the ,secretary and inserting ,the ,secretary2 7#b7 by striking with respect to any of the activities described in subsection 7b7 shall be subject to a rebuttable presumption that the use of and inserting shall apply2 and 7#c7 by striking would apply if the activity and inserting for each action described in subsection 7b7 if the action4 #c4 ,conveyance to certain ,states of property interest in ,state share of royalties and other payments 7a7 ,in general ,section #ce of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aia7 is amended-- 7#a7 in subsection 7a71 in the first sentence1 by striking shall be paid into the ,treasury and inserting shall1 except as provided in subsection 7e71 be paid into the ,treasury2 7#b7 in subsection 7c77#a71 by inserting and except as provided in subsection 7e7 before 1 any rentals2 and 7#c7 by adding at the end the following3 7e7 ,conveyance to certain ,states of property interest in ,state share 7#a7 ,in general ,notwithstanding any other provision of law1 on request of a ,state and in lieu of any payments to the ,state under subsection 7a71 the ,secretary of the ,interior shall convey to the ,state all right1 title1 and interest in and to the percentage specified in that subsection for that ,state that would otherwise be required to be paid into the ,treasury under that subsection4 7#b7 ,amount ,notwithstanding any other provision of law1 after a conveyance to a ,state under paragraph 7#a71 any person shall pay directly to the ,state any amount owed by the person for which the right1 title1 and interest has been conveyed to the ,state under this subsection4 7#c7 ,notice ,the ,secretary of the ,interior shall promptly provide to each holder of a lease of public land to which subsection 7a7 applies that is located in a ,state to which right1 title1 and interest is conveyed under this subsection notice that-- 7,a7 the ,secretary of the ,interior has conveyed to the ,state all right1 title1 and interest in and to the amounts referred to in paragraph 7#a72 and 7,b7 the leaseholder is required to pay the amounts directly to the ,state4 7#d7 ,report ,a ,state that has received a conveyance under this subsection shall report monthly to the ,office of ,natural ,resources ,revenue of the ,department of the ,interior the amount paid to the ,state pursuant to this subsection4 7#e7 ,application ,with respect to the interest conveyed to a ,state under this subsection from sales1 bonuses1 royalties 7including interest charges71 and rentals collected under the ,federal ,oil and ,gas ,royalty ,management ,act of #aihb 7#cj ,u4,s4,c4 #agja et seq471 this subsection shall only apply with respect to ,states for which the ,secretary has delegated any authority under section #dd7;b77#a74 4 7b7 ,administrative costs ,section #ce7;b7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aia7;b77 is amended by striking ,in determining and inserting ,except with respect to ,states for which the ,secretary has delegated any authority under section #dd7;b77#a71 in determining4 7c7 ,conforming amendment ,section #bje7;f7 of the ,federal ,oil and ,gas ,royalty ,management ,act of #aihb 7#cj ,u4,s4,c4 #agce7;f77 is amended in the seventh sentence by striking ,all and inserting ,subject to subsection 7e7 of section #ce of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aia71 all4 #d4 ,permitting on non-,federal surface estate ,the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 is amended by inserting after section #dd 7as added by section #b7;a77#b77 the following3 #de4 ,permitting on non-,federal surface estate 7a7 ,permits not required for certain activities on non-,federal surface estate ,the following activities conducted on non-,federal surface estate shall not require a permit from the ,bureau of ,land ,management and shall not be considered a major ,federal action under the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq473 7#a7 ,oil and gas operations for the exploration for1 or development or production of1 oil and gas in a lease or unit or communitization agreement in which the ,united ,states holds a mineral ownership interest of #ej percent or less4 7#b7 ,oil and gas operations that may have potential drainage impacts1 as determined by the ,bureau of ,land ,management1 on oil and gas in which the ,united ,states holds a mineral ownership interest4 7b7 ,,doi notification ,the ,secretary of the ,interior shall provide to each ,state a map or list indicating ,federal mineral ownership within that ,state4 7c7 ,state notification ,each ,state with an approved permit to drill or drilling plan that would impact or extract oil and gas owned by the ,federal ,government shall notify the ,secretary of the ,interior of the approved permit to drill or drilling plan4 7d7 ,royalties ,nothing in this section affects the amount of royalties due to the ,united ,states under this ,act from the production of oil and gas4 4 #e4 ,state and ,tribal authority for hydraulic fracturing regulation ,the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 is amended by inserting after section #de 7as added by section #d7 the following3 #df4 ,state and ,tribal authority for hydraulic fracturing regulation 7a7 ,in general ,in this section3 7#a7 ,hydraulic fracturing defined ,the term hydraulic fracturing means the process of creating small cracks or fractures in underground geological formations for well stimulation purposes of bringing hydrocarbons into the wellbore and to the surface for capture4 7#b7 ,secretary ,the term ,secretary means the ,secretary of the ,interior4 7b7 ,enforcement of ,federal regulations ,the ,secretary shall not enforce any ,federal regulation1 guidance1 or permit requirement regarding hydraulic fracturing relating to oil1 gas1 or geothermal production activities on or under any land in any ,state that has regulations1 guidance1 or permit requirements for that activity4 7c7 ,state authority ,the ,secretary shall defer to ,state regulations1 guidance1 and permit requirements for all activities regarding hydraulic fracturing relating to oil1 gas1 or geothermal production activities on ,federal land4 7d7 ,transparency of ,state regulations 7#a7 ,in general ,each ,state shall submit to the ,bureau of ,land ,management a copy of the regulations of the ,state that apply to hydraulic fracturing operations on ,federal land1 including the regulations that require disclosure of chemicals used in hydraulic fracturing operations4 7#b7 ,availability ,the ,secretary shall make available to the public on the website of the ,secretary the regulations submitted under paragraph 7#a74 7e7 ,tribal authority on trust land ,the ,secretary shall not enforce any ,federal regulation1 guidance1 or permit requirement with respect to hydraulic fracturing on any land held in trust or restricted status for the benefit of a federally recognized ,indian ,tribe or a member of a federally recognized ,indian ,tribe1 except with the express consent of the beneficiary on whose behalf the land is held in trust or restricted status4 4 #f4 ,review of ,integrated ,activity ,plan for the ,national ,petroleum ,reserve-,alaska ,the ,secretary of the ,interior shall-- 7#a7 conduct a review of the ,national ,petroleum ,reserve-,alaska ,final ,integrated ,activity ,plan_/,environmental ,impact ,statement1 for which notice of availability was published in the ,federal ,register on ,december #bh1 #bjab 7#gg ,fed4 ,reg4 #gfeae71 to determine which land within the ,national ,petroleum ,reserve-,alaska should be made available for oil and gas leasing2 and 7#b7 make available the land described in paragraph 7#a7 for oil and gas leasing4 #g4 ,protested lease sales ,section #ag7;b77#a77;,a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;b77#a77;,a77 is amended by inserting after the seventh sentence the following3 ,the ,secretary shall resolve any protest to a lease sale within #fj days following such payment44