,,ii #aafth ,,congress #b;d ,session ,s4 #dbbc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bj1 #bjbj,mr4 ,tester introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend the ,mineral ,leasing ,act to ensure market competition in onshore oil and gas leasing1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,leasing ,market ,efficiency ,act4 #b4 ,findings ,congress finds that-- 7#a7 pursuant to the ,federal ,land ,policy and ,management ,act of #aigf 7#dc ,u4,s4,c4 #agja et seq47 and the ,forest and ,rangeland ,renewable ,resources ,planning ,act of #aigd 7#af ,u4,s4,c4 #afjj et seq471 public land and ,national ,forest ,system land are to be managed for multiple uses1 including recreation1 range1 timber1 minerals1 watershed1 wildlife and fish1 and natural scenic1 scientific1 and historical values2 7#b7 existing oil and gas leases1 even if undeveloped1 can and do prevent the ,bureau of ,land ,management from managing tracts of land for other multiple uses2 7#c7 oil and gas lease parcels that do not receive bids at competitive auction have been tested by the competitive market and found to have minimal or no present value for oil and gas development2 7#d7 noncompetitive leasing does not provide a fair return to taxpayers since noncompetitive leasing allows companies and individuals to pay less than the minimum #b bid for the use of public land2 7#e7 noncompetitively issued leases are usually not developed and account for only a small fraction of royalty-generating production2 7#f7 companies and individuals frequently purchase oil and gas leases noncompetitively1 despite lacking the intent or capability to develop them1 as a form of speculation2 7#g7 relative to leases issued competitively1 leases issued noncompetitively are significantly more likely to be terminated for failure to pay rent2 7#h7 the noncompetitive leasing program drains administrative resources from the ,bureau of ,land ,management1 in the form of personnel time and effort to issue1 monitor1 and frequently terminate and reinstate noncompetitive leases2 7#i7 noncompetitive leasing has increased in recent years1 with the number of leases issued noncompetitively in calendar year #bjah marking a #aj-year high2 7#aj7 several ,states1 including ,colorado and portions of ,new ,mexico1 do not regularly issue leases noncompetitively1 and yet maintain a robust and profitable oil and gas program2 and 7#aa7 the ,federal onshore oil and gas leasing program is best served by-- 7,a7 issuing oil and gas leases only through a competitive process2 and 7,b7 leaving land that does not receive bids at competitive auction to be managed for other uses4 #c4 ,policy of the ,united ,states2 sense of ,congress 7a7 ,policy of the ,united ,states ,it is the policy of the ,united ,states that the ,secretary of the ,interior shall not issue onshore oil and gas leases except through a competitive bidding process4 7b7 ,sense of ,congress ,it is the sense of ,congress that the policy of the ,united ,states described in subsection 7a7-- 7#a7 will discourage speculation in the ,federal onshore oil and gas leasing program2 7#b7 will conserve limited ,federal resources that can be better applied elsewhere2 7#c7 will avoid opportunity costs that impact the management of other resources1 such as wildlife habitat management2 7#d7 will benefit taxpayers from the receipt by the ,secretary of the ,interior of at least the minimum bid value for onshore oil and gas leases issued by the ,secretary of the ,interior2 7#e7 is in keeping with the goals of multiple use land management2 and 7#f7 is not to the detriment of the fiscal interests or energy security of the ,united ,states4 #d4 ,elimination of noncompetitive leasing 7a7 ,oil and gas leasing ,section #ag of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7 is amended-- 7#a7 by striking subsection 7a7 and inserting the following3 7a7 ,leasing authority 7#a7 ,in general ,all land subject to disposition under this ,act that is known or believed to contain oil or gas deposits may be leased by the ,secretary4 7#b7 ,receipt of fair market value ,in conducting leasing activities under this ,act1 the ,secretary shall ensure the receipt by the ,united ,states of fair market value for-- 7,a7 any land or resources leased by the ,united ,states2 and 7,b7 any rights conveyed by the ,united ,states4 2 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#a77;,a7-- 7i7 in the first sentence1 by striking paragraphs 7#b7 and 7#c7 of this subsection and inserting paragraph 7#b72 and 7ii7 by striking the last sentence2 and 7,b7 by striking paragraph 7#c72 7#c7 by striking subsection 7c7 and inserting the following3 7c7 ,additional rounds of competitive bidding ,land made available for leasing under subsection 7b77#a7 for which no bid is accepted or received may be made available by the ,secretary for a new round of competitive bidding under that subsection4 2 and 7#d7 in subsection 7e7-- 7,a7 in the third sentence1 by striking ,any lease and inserting the following3 7#c7 ,additional extensions ,any lease 2 7,b7 in the second sentence1 by striking ,each such lease and inserting the following3 7#b7 ,extension of lease after primary term ,a lease described in paragraph 7#a7 2 and 7,c7 by striking the subsection designation and all that follows through the period at the end of the first sentence and inserting the following3 7e7 ,term of lease 7#a7 ,in general ,any lease issued under this section1 including a lease for tar sand areas1 shall be for a primary term of #aj years4 4 7b7 ,failure ,to comply with provisions of lease ,section #ca of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #ahh7 is amended-- 7#a7 in subsection 7d77#a71 in the first sentence1 by striking or section #ag7;c7 of this ,act2 7#b7 in subsection 7e7-- 7,a7 in paragraph 7#b7-- 7i7 by striking either2 and 7ii7 by striking or the inclusion and all that follows through 1 all2 and 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,a71 by adding and after the semicolon2 7ii7 by striking subparagraph 7,b72 and 7iii7 by striking 7#c77;,a7 payment and inserting the following3 7#c7 payment 2 7#c7 in subsection 7g7-- 7,a7 in paragraph 7#a71 by striking as a competitive and all that follows through of this ,act and inserting in the same manner as the original lease issued pursuant to section #ag2 7,b7 by striking paragraph 7#b72 7,c7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#b7 and 7#c71 respectively2 and 7,d7 in paragraph 7#b7 7as so redesignated71 by striking applicable to leases issued under subsection #ag7;c7 of this ,act 7#cj ,u4,s4,c4 #bbf7;c77 except1 and inserting except2 7#d7 in subsection 7h71 by striking subsections 7d7 and 7f7 of this section and inserting subsection 7d72 7#e7 in subsection 7i71 by striking 7i77#a7 ,in acting and all that follows through of this section in paragraph 7#b7 and inserting the following3 7i7 ,royalty reduction in reinstated leases ,in acting on a petition for reinstatement pursuant to subsection 7d7 2 7#f7 by striking subsection 7f72 and 7#g7 by redesignating subsections 7g7 through 7j7 as subsections 7f7 through 7i71 respectively4