Bill Details
S.722 - 119th Congress
Status
Latest action
2025-02-25 - Read twice and referred to the Committee on Energy and Natural Resources.
Introduced Date
2025-02-25
Policy Area
Energy
Committees
View committees (1)
Sponsors
Cosponsors
6
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would make it easier to drill for oil and gas in certain areas where land and mineral rights are split between federal and non-federal owners. In some cases, it would remove the need for a federal drilling permit when most of the minerals are privately owned and the federal government does not own the surface land being directly affected. It also says that state permits can be used instead, as long as the company follows any state or tribal rules and gives notice to the federal government. The bill would not apply to Indian lands, would not change federal royalty payments, and would limit some federal control over non-federal land in these mixed-ownership drilling units.
- Federal drilling permits would not be required in certain drilling or spacing units if the federal government owns less than half of the minerals and does not own the surface land directly affected.
- The same rule would also apply when a well is drilled on non-federal land and the well path either reaches into federal minerals or passes through them without producing from them.
- Companies or state officials would have to tell the Interior Secretary when a state drilling permit or drilling plan is submitted and approved, and they would need to provide access agreements before drilling begins so federal inspections can happen if needed.
- The bill would also limit the Interior Secretary’s authority on certain non-federal lands by blocking requirements for bonds, entry without landowner consent, mitigation conditions, and approval of surface cleanup plans.
Official Summaries
Bureau of Land Management Mineral Spacing Act
This bill exempts certain exploration and production activities from federal oil and gas drilling permit requirements. Generally, the exemption applies to activities on land with (1) a surface estate that the federal government does not own, and (2) an underlying mineral estate only partially owned by the federal government. It does not apply to tribal lands.
Specifically, the bill bans the Department of the Interior from requiring a permit under the Mineral Leasing Act (MLA) when
- the federal government does not own or lease the surface estate, and it owns less than 50% of the mineral estate;
- a well is located on nonfederal land overlying a nonfederal mineral estate, but some portion of the wellbore (i.e., drilled hole) enters and produces oil and gas from the federal mineral estate subject to the lease; or
- a well is located on nonfederal land overlying a nonfederal mineral estate, but some portion of the wellbore traverses but does not produce oil or gas from the federal mineral estate subject to the lease.
The bill also specifies that, in the case of an oil and gas lease on such land, the MLA does not authorize Interior to require a bond to protect nonfederal land, impose mitigation requirements, require approval for surface reclamation, or enter nonfederal land without consent of the landowner. However, lessees of federal mineral estates must authorize Interior to enter nonfederal land for inspection and enforcement of the terms of the federal lease.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 722 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 722
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 25, 2025
Mr. Hoeven (for himself, Mr. Barrasso, Mr. Cramer, and Mr. Daines)
introduced the following bill; which was read twice and referred to the
Committee on Energy and Natural Resources
_______________________________________________________________________
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bureau of Land Management Mineral
Spacing Act''.
SEC. 2. COMPLIANCE WITH BLM PERMITTING.
(a) In General.--Notwithstanding the Mineral Leasing Act (30 U.S.C.
181 et seq.), the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.), or subpart 3162 of part 3160 of title 43,
Code of Federal Regulations (or successor regulations), but subject to
any applicable State or Tribal requirements and subsection (c), the
Secretary of the Interior shall not require a permit to drill for an
oil and gas lease under the Mineral Leasing Act (30 U.S.C. 181 et seq.)
for an action occurring within an oil and gas drilling or spacing unit
if--
(1) the Federal Government--
(A) owns less than 50 percent of the minerals
within the oil and gas drilling or spacing unit; and
(B) does not own or lease the surface estate within
the area directly impacted by the action;
(2) the well is located on non-Federal land overlying a
non-Federal mineral estate, but some portion of the wellbore
enters and produces from the Federal mineral estate subject to
the lease; or
(3) the well is located on non-Federal land overlying a
non-Federal mineral estate, but some portion of the wellbore
traverses but does not produce from the Federal mineral estate
subject to the lease.
(b) Notification.--For each State permit to drill or drilling plan
that would impact or extract oil and gas owned by the Federal
Government--
(1) each lessee of Federal minerals in the unit, or
designee of a lessee, shall--
(A) notify the Secretary of the Interior of the
submission of a State application for a permit to drill
or drilling plan on submission of the application; and
(B) provide a copy of the application described in
subparagraph (A) to the Secretary of the Interior not
later than 5 days after the date on which the permit or
plan is submitted;
(2) each lessee, designee of a lessee, or applicable State
shall notify the Secretary of the Interior of the approved
State permit to drill or drilling plan not later than 45 days
after the date on which the permit or plan is approved; and
(3) each lessee or designee of a lessee shall provide,
prior to commencing drilling operations, agreements authorizing
the Secretary of the Interior to enter non-Federal land, as
necessary, for inspection and enforcement of the terms of the
Federal lease.
(c) Nonapplicability to Indian Lands.--Subsection (a) shall not
apply to Indian lands (as defined in section 3 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1702)).
(d) Effect.--Nothing in this section affects--
(1) other authorities of the Secretary of the Interior
under the Federal Oil and Gas Royalty Management Act of 1982
(30 U.S.C. 1701 et seq.); or
(2) the amount of royalties due to the Federal Government
from the production of the Federal minerals within the oil and
gas drilling or spacing unit.
(e) Authority on Non-Federal Land.--Section 17(g) of the Mineral
Leasing Act (30 U.S.C. 226(g)) is amended--
(1) by striking the subsection designation and all that
follows through ``Secretary of the Interior, or'' in the first
sentence and inserting the following:
``(g)(1) The Secretary of the Interior, or''; and
(2) by adding at the end the following:
``(2)(A) In the case of an oil and gas lease under this Act on land
described in subparagraph (B) located within an oil and gas drilling or
spacing unit, nothing in this Act authorizes the Secretary of the
Interior--
``(i) to require a bond to protect non-Federal land;
``(ii) to enter non-Federal land without the consent of the
applicable landowner;
``(iii) to impose mitigation requirements; or
``(iv) to require approval for surface reclamation.
``(B) Land referred to in subparagraph (A) is land where--
``(i) the Federal Government--
``(I) owns less than 50 percent of the minerals
within the oil and gas drilling or spacing unit; and
``(II) does not own or lease the surface estate
within the area directly impacted by the action;
``(ii) the well is located on non-Federal land overlying a
non-Federal mineral estate, but some portion of the wellbore
enters and produces from the Federal mineral estate subject to
the lease; or
``(iii) the well is located on non-Federal land overlying a
non-Federal mineral estate, but some portion of the wellbore
traverses but does not produce from the Federal mineral estate
subject to the lease.''.
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