,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #ebf  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #af1 #bjbe,mr4
 ,ogles 7= himself1 ,mr4 ,pflug]1 ,mr4  
,web] ( ,texas1 ,mr4 ,bre*e51 ,ms4      
,hageman1 ,ms4 ,maloy1 & ,mr4 ,williams 
( ,texas7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,natural     
,res\rces  ,a ,,bill  ,to am5d ! ,m9]al 
,leas+ ,act to make c]ta9 adju/m5ts to !
 royalty rates = leases = oil & gas     
extraction on ,f$]al l&1 & = o!r        
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,decl>ation ( ,en]gy       
,indep5d5ce ,act4  #b4 ,am5dm5ts to     
,m9]al ,leas+ ,act  7a7 ,on%ore oil &   
gas royalty rates  7#a7 ,lease ( oil &  
gas l& ,section #ag ( ! ,m9]al ,leas+   
,act 7#cj ,u4,s4,c4 #bbf7 is am5d$--    
7,a7 by /rik+ #afb_/c p]c5t ea* place x 
appe>s & ins]t+ #aba_/b p]c5t2 &  7,b7 9
 subsection 7b77#a77;,a71 by /rik+ or1 9
 ! case ( & all t foll[s ?r\gh remov$ or
 sold f ! lease4 ,! & ins]t+ 4 ,! 4     
7#b7 ,conditions = re9/atem5t ,section  

#ca7;e77#c7 ( ! ,m9]al ,leas+ ,act 7#cj 
,u4,s4,c4 #ahh7;e77#c77 is am5d$ by     
/rik+ #bj ea* place x appe>s & ins]t+   
#afb_/c4  7b7 ,oil & gas m9imum bid     
,section #ag7;b7 ( ! ,m9]al ,leas+ ,act 
7#cj ,u4,s4,c4 #bbf7;b77 is am5d$-- 7#a7
 9 p>agraph 7#a77;,b71 by /rik+ #aj p]  
acre dur+ ! #aj-ye> p]iod beg9n+ on !   
date ( enactm5t ( ! ,act titl$ ,an ,act 
to provide = reconciliation pursuant to 
title ,,ii ( ,s4 ,con4 ,res4 #ad &      
ins]t+ #b p] acre = a p]iod ( #b ye>s f 
! date ( enactm5t ( ! ,f$]al ,on%ore    
,oil & ,gas ,leas+ ,re=m ,act ( #aihg2 &
  7#b7 9 p>agraph 7#b77;,c71 by /rik+   
#aj p] acre & ins]t+ #b p] acre4  7c7   
,fossil fuel r5tal rates  7#a7 ,annual  
r5tals ,section #ag7;d7 ( ! ,m9]al      
,leas+ ,act 7#cj ,u4,s4,c4 #bbf7;d77 is 
am5d$ by /rik+ ?an #c p] acre p] ye> &  
all t foll[s ?r\gh & #ae p] acre p] ye> 
!reaft] & ins]t+ ?an #a4ej p] acre p]   
ye> = ! fir/ ?r\gh fif? ye>s ( ! lease &
 n less ?an #b p] acre p] ye> = ea* ye> 
!reaft]4  7#b7 ,r5tals 9 re9/at$ leases 

,section #ca7;e77#b7 ( ! ,m9]al ,leas+  
,act 7#cj ,u4,s4,c4 #ahh7;e77#b77 is    
am5d$ by /rik+ #bj & ins]t+ #aj4  7d7   
,elim9ation ( fee = expression ( int]e/ 
,section #ag ( ! ,m9]al ,leas+ ,act 7#cj
 ,u4,s4,c4 #bbf7 is am5d$ by /rik+      
subsection 7q74  7e7 ,noncompetitive    
,leas+ ,section #ag ( ! ,m9]al ,leas+   
,act 7#cj ,u4,s4,c4 #bbf7 is am5d$--    
7#a7 9 subsection 7b7-- 7,a7 9 p>agraph 
7#a77;,a7-- 7i7 by /rik+ p>agraph 7#b7 &
 ins]t+ p>agraphs 7#b7 & 7#c7 ( ?is     
subsection2 &  7ii7 by ins]t+ ,l&s = :i*
 no bids are receiv$ or = :i* ! highe/  
bid is less ?an ! national m9imum       
acceptable bid %all be (f]$ promptly )9 
#cj days = leas+ "u subsection 7c7 ( ?is
 section & %all rema9 available = leas+ 
= a p]iod ( #b ye>s aft] ! competitive  
lease sale4 aft] ! p]iod at ! end2 &    
7,b7 by add+ at ! end ! foll[+3         
7#c77;,a7 ,if ! ,unit$ ,/ates held a    
ve/$ future int]e/ 9 a m9]al e/ate t1   
imm$iately prior to becom+ a ve/$ pres5t
 int]e/1 0 subject to a lease "u :i* oil

 or gas 0 be+ produc$1 or _h a well     
capable ( produc+1 9 pay+ quantities at 
an annual av]age production volume p]   
well p] day ( ei!r n m ?an #ae b>rels p]
 day ( oil or cond5sate1 or n m ?an     
#fj1jjj cubic feet ( gas1 ! hold] ( !   
lease may elect to cont9ue ! lease z a  
noncompetitive lease "u subsection      
7c77#a74 7,b7 ,an election "u ?is       
p>agraph is effective-- 7i7 9 ! case (  
an int]e/ :i* ve/$ aft] ,janu>y #a1     
#aiij1 & on or be=e ! date ( enactm5t ( 
?is p>agraph1 if ! election is made be=e
 ! date t is #a ye> aft] ! date (       
enactm5t ( ?is p>agraph2  7ii7 9 ! case 
( an int]e/ :i* ve/s )9 #a ye> aft] !   
date ( enactm5t ( ?is p>agraph1 if !    
election is made be=e ! date t is #b    
ye>s aft] ! date ( enactm5t ( ?is       
p>agraph2 &  7iii7 9 any case o!r ?an ^?
 describ$ 9 clause 7i7 or 7ii71 if !    
election is made prior to ! int]e/      
becom+ a ve/$ pres5t int]e/4  7,c7      
,not)/&+ ! cons5t requirem5t ref]5c$ 9  
section #c ( ! ,m9]al ,leas+ ,act =     

,acquir$ ,l&s 7#cj ,u4,s4,c4 #ceb71 !   
,secret>y %all issue a noncompetitive   
lease "u subsection 7c77#a7 to a hold]  
:o makes an election "u subp>agraph 7,a7
 & :o is qualifi$ to hold a lease "u ?is
 ,act4 ,su* lease %all be subject to all
 t]ms & conditions "u ?is ,act t are    
applicable to leases issu$ "u subsection
 7c77#a74  7,d7 ,a lease issu$ pursuant 
to ?is p>agraph %all cont9ue s long z   
oil or gas cont9ues to be produc$ 9 pay+
 quantities4  7,e7 ,?is p>agraph %all   
apply only to ^? l&s "u ! adm9i/ration (
 ! ,secret>y ( ,agriculture :]e ! ,unit$
 ,/ates acquir$ an int]e/ 9 su* l&s     
pursuant to ! ,act ( ,m>* #a1 #aiaa 7#cf
 ,/at4 #ifa74  2  7#b7 by /rik+         
subsection 7c7 & ins]t+ ! foll[+3       
7c77#a7 ,if ! l&s to be leas$ are n     
leas$ "u subsection 7b77#a7 ( ?is       
section or are n subject to competitive 
leas+ "u subsection 7b77#b7 ( ?is       
section1 ! p]son fir/ mak+ application =
 ! lease :o is qualifi$ to hold a lease 
"u ?is ,act %all be entitl$ to a lease (

 su* l&s )\t competitive bidd+1 ^u      
paym5t ( a non-refundable application   
fee ( at lea/ #ge4 ,a lease "u ?is      
subsection %all be condition$ ^u !      
paym5t ( a royalty at a rate ( #ab4e    
p]c5t 9 am\nt or value ( ! production   
remov$ or sold f ! lease4 ,leases %all  
be issu$ )9 #fj days ( ! date on :i* !  
,secret>y id5tifies ! fir/ responsible  
qualifi$ applicant4 7#b77;,a7 ,l&s 7i7  
:i* 7 po/$ = sale "u subsection 7b77#a7 
( ?is section b = :i* no bids 7 receiv$ 
or = :i* ! highe/ bid 0 less ?an !      
national m9imum acceptable bid & 7ii7 = 
:i*1 at ! end ( ! p]iod ref]r$ to 9     
subsection 7b77#a7 ( ?is section no     
lease has be5 issu$ & no lease          
application is p5d+ "u p>agraph 7#a7 (  
?is subsection1 %all aga9 be available =
 leas+ only 9 accordance ) subsection   
7b77#a7 ( ?is section4  7,b7 ,! l& 9 any
 lease :i* is issu$ "u p>agraph 7#a7 (  
?is subsection or "u subsection 7b77#a7 
( ?is section :i* lease t]m9ates1       
expires1 is cancell$ or is rel9qui%$    

%all aga9 be available = leas+ only 9   
accordance ) subsection 7b77#a7 ( ?is   
section4  2 &  7#c7 by /rik+ subsection 
7e7 & ins]t+ ! foll[+3  7e7 ,competitive
 & noncompetitive leases issu$ "u ?is   
section %all be = a prim>y t]m ( #aj    
ye>s3 ,provid$1 h[ev]1 ,t competitive   
leases issu$ 9 special t> s& areas %all 
also be = a prim>y t]m ( t5 ye>s4 ,ea*  
su* lease %all cont9ue s long aft] its  
prim>y t]m z oil or gas is produc$ 9    
pay+ quantities4 ,any lease issu$ "u ?is
 section = l& on :i*1 or = :i* "u an    
approv$ coop]ative or unit plan (       
developm5t or op]ation1 actual drill+   
op]ations 7 comm5c$ prior to ! end ( its
 prim>y t]m & are be+ dilig5tly         
prosecut$ at t "t %all be ext5d$ = two  
ye>s & s long !reaft] z oil or gas is   
produc$ 9 pay+ quantities4  4  7f7      
,con=m+ am5dm5ts ,section #ca ( ! ,m9]al
 ,leas+ ,act 7#cj ,u4,s4,c4 #ahh7 is    
am5d$-- 7#a7 9 subsection 7d77#a71 by   
ins]t+ or section #ag7;c7 ( ?is ,act    
aft] pursuant to section #ag7;b72  7#b7 

9 subsection 7e7-- 7,a7 9 p>agraph      
7#b7-- 7i7 by ins]t+ ei!r aft] r5tals &2
 &  7ii7 by ins]t+ or ! inclusion 9 a   
re9/at$ lease issu$ pursuant to !       
provisions ( section #ag7;c7 ( ?is ,act 
( a requirem5t t future r5tals %all be  
at a rate n less ?an #e p] acre p] ye>1 
all aft] p] acre p] ye>12 &  7,b7 9     
p>agraph 7#c7-- 7i7 by /rik+ 7#c7 paym5t
 & ins]t+ ! foll[+3  7#c77;,a7 paym5t  2
 &  7ii7 by add+ at ! end ! foll[+3     
7,b7 paym5t ( back royalties & inclusion
 9 a re9/at$ lease issu$ pursuant to !  
provisions ( section #ag7;c7 ( ?is ,act 
( a requirem5t = future royalties at a  
rate n less ?an #af p]c5t3 ,provid$1 ,t 
royalty on su* re9/at$ lease %all be    
paid on all production remov$ or sold f 
su* lease subsequ5t to ! cancellation or
 t]m9ation ( ! orig9al lease2 &  2  7#c7
 by r$esignat+ subsections 7f7 ?r\gh 7i7
 z subsections 7g7 ?r\gh 7j71           
respectively2  7#d7 by ins]t+ aft]      
subsection 7e7 ! foll[+3  7f7 ,:]e an   
unpat5t$ oil plac] m9+ claim validly    

locat$ prior to ,febru>y #bd1 #aibj1 :i*
 has be5 or is curr5tly produc+ or is   
capable ( produc+ oil or gas1 has be5 or
 is h]eaft] deem$ conclusively ab&on$ = 
failure to file timely ! requir$        
in/rum5ts or copies ( in/rum5ts requir$ 
by section #cad ( ! ,f$]al ,l& ,policy &
 ,managem5t ,act ( #aigf 7#dc ,u4,s4,c4 
#agdd71 & x is %[n to ! satisfaction ( !
 ,secret>y t su* failure 0 inadv]t5t1   
ju/ifiable1 or n due to lack (          
reasonable dilig5ce on ! "p ( ! own]1 ! 
,secret>y may issue1 = ! l&s cov]$ by ! 
ab&on$ unpat5t$ oil plac] m9+ claim1 a  
noncompetitive oil & gas lease1 consi/5t
 ) ! provisions ( section #ag7;e7 ( ?is 
,act1 to be effective f ! /atutory date 
! claim 0 deem$ conclusively ab&on$4    
,issuance ( su* a lease %all be         
condition$ ^u-- 7#a7 a petition =       
issuance ( a noncompetitive oil & gas   
lease1 toge!r ) ! requir$ r5tal &       
royalty1 includ+ back r5tal & royalty   
accru+ f ! /atutory date ( ab&onm5t ( ! 
oil plac] m9+ claim1 be+ fil$ ) !       

,secret>y-- 7,a7 ) respect to any claim 
deem$ conclusively ab&on$ on or be=e !  
date ( enactm5t ( ! ,f$]al ,oil & ,gas  
,royalty ,managem5t ,act ( #aihb1 on or 
be=e ! "o hundr$ & tw5tie? day aft] su* 
date ( enactm5t1 or  7,b7 ) respect to  
any claim deem$ conclusively ab&on$ aft]
 su* date ( enactm5t1 on or be=e ! "o   
hundr$ & tw5tie? day aft] f9al          
notification by ! ,secret>y or a c\rt ( 
compet5t jurisdiction ( ! det]m9ation ( 
! ab&onm5t ( ! oil plac] m9+ claim2     
7#b7 a valid lease n hav+ be5 issu$     
affect+ any ( ! l&s cov]$ by ! ab&on$   
oil plac] m9+ claim prior to ! fil+ (   
su* petition3 ,provid$1 h[ev]1 ,t aft] !
 fil+ ( a petition = issuance ( a lease 
"u ?is subsection1 ! ,secret>y %all n   
issue any new lease affect+ any ( ! l&s 
cov]$ by su* ab&on$ oil plac] m9+ claim 
= a reasonable p]iod1 z det]m9$ 9       
accordance ) regulations issu$ by him2  
7#c7 a requirem5t 9 ! lease = paym5t (  
r5tal1 includ+ back r5tals accru+ f !   
/atutory date ( ab&onm5t ( ! oil plac]  

m9+ claim1 ( n less ?an #e p] acre p]   
ye>2  7#d7 a requirem5t 9 ! lease =     
paym5t ( royalty on production remov$ or
 sold f ! oil plac] m9+ claim1 includ+  
all royalty on production made subsequ5t
 to ! /atutory date ! claim 0 deem$     
conclusively ab&on$1 ( n less ?an       
#aba_/b p]c5t2 &  7#e7 compliance ) !   
notice & reimbursem5t ( co/s provisions 
( p>agraph 7#d7 ( subsection 7e7 b      
address$ to ! petition cov]+ ! conv]sion
 ( an ab&on$ unpat5t$ oil plac] m9+     
claim to a noncompetitive oil & gas     
lease4  2  7#e7 9 subsection 7g7 7z s   
r$esignat$7-- 7,a7 9 p>agraph 7#a71 by  
/rik+ 9 ! same mann] z ! orig9al lease  
issu$ pursuant to section #ag & ins]t+ z
 a competitive or a noncompetitive oil &
 gas lease 9 ! same mann] z ! orig9al   
lease issu$ pursuant to section #ag7;b7 
or #ag7;c7 ( ?is ,act2  7,b7 by         
r$esignat+ p>agraphs 7#b7 & 7#c7 z      
p>agraphs 7#c7 & 7#d71 respectively2    
7,c7 by ins]t+ aft] p>agraph 7#a7 !     
foll[+3  7#b7 ,except z o!rwise provid$ 

9 ?is section1 ! issuance ( a lease 9   
lieu ( an ab&on$ pat5t$ oil plac] m9+   
claim %all be treat$ z a noncompetitive 
oil & gas lease issu$ pursuant to       
section #ag7;c7 ( ?is ,act4  2 &  7,d7 9
 p>agraph 7#c7 7z s r$esignat$71 by     
ins]t+ applicable to leases issu$ "u    
subsection #ag7;c7 ( ?is ,act 7#cj      
,u4,s4,c4 #bbf7;c77 aft] ?is section12  
7#f7 9 subsection 7h7 7z s r$esignat$71 
by /rik+ subsection 7d7 & ins]t+        
subsections 7d7 & 7f7 ( ?is section2 &  
7#g7 by /rik+ subsection 7i7 7z s       
r$esignat$7 & ins]t+ ! foll[+3  7i77#a7 
,9 act+ on a petition to issue a        
noncompetitive oil & gas lease1 "u      
subsection 7f7 ( ?is section or 9       
response to a reque/ fil$ aft] issuance 
( su* a lease1 or bo?1 ! ,secret>y is   
au?oriz$ to r$uce ! royalty on su* lease
 if 9 8 judgm5t x is equitable to d s or
 ! circum/ances w>rant su* relief due to
 uneconomic or o!r circum/ances :i* c\ld
 cause undue h>d%ip or premature        
t]m9ation ( production4 7#b7 ,9 act+ on 

a petition = re9/atem5t pursuant to     
subsection 7d7 ( ?is section or 9       
response to a reque/ fil$ aft]          
re9/atem5t1 or bo?1 ! ,secret>y is      
au?oriz$ to r$uce ! royalty 9 t re9/at$ 
lease on ! entire leasehold or any tract
 or portion !re( segregat$ = royalty    
purposes if1 9 8 judgm5t1 !re are       
uneconomic or o!r circum/ances :i* c\ld 
cause undue h>d%ip or premature         
t]m9ation ( production2 or because ( any
 writt5 action ( ! ,unit$ ,/ates1 its   
ag5ts or employees1 :i* prec$$1 & 0 a   
major consid]ation 91 ! lessee's        
exp5diture ( funds to develop ! prop]ty 
"u ! lease aft] ! r5t _h become due & _h
 n be5 paid2 or if 9 ! judgm5t ( !      
,secret>y x is equitable to d s = any   
reason4  4