Sec. 401. Leasing process
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Section 17(a) of the Mineral Leasing Act ( 30 U.S.C. 226(a) ) is amended to read as follows: All lands subject to disposition under this Act that are known or believed to contain oil or gas deposits may be leased by the Secretary. 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 Federal Government. . Section 17(b)(1)(A) of the Mineral Leasing Act ( 30 U.S.C. 226(b)(1)(A) ), as amended by this Act, is further amended by— striking so much as precedes A lease shall be conditioned and inserting All lands to be leased shall be leased as provided in this paragraph to the highest responsible qualified bidder by competitive bidding under general regulations in units of not more than 2,560 acres, except in Alaska, where units shall be not more than 5,760 acres.
Such units shall be as nearly compact as possible. Lease sales shall be conducted by sealed bid. Lease sales shall be held for each State in which there are lands eligible for leasing no more than 3 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 year. ; striking The Secretary shall accept and all that follows through for the first lease year. and inserting The Secretary may issue a lease to the responsible qualified bidder with the highest bid that is equal to or greater than the national minimum acceptable bid.
The Secretary shall decide whether to accept a bid and issue a lease within 90 days following payment by the successful bidder of the remainder of the bonus bid, if any, and the annual rental for the first lease year. ; and striking the last sentence. Subparagraph
(B)of section 17(b)(1) of the Mineral Leasing Act ( 30 U.S.C. 226(b)(1) ), as amended by this Act, is further amended by striking Thereafter and all that follows through the end of the subparagraph and inserting The Secretary may establish a higher minimum acceptable bid if the Secretary finds that such a higher amount is necessary
(i)to enhance financial returns to the United States; and
(ii)to promote more efficient management of oil and gas resources on Federal lands. The Secretary may reject a bid above the national minimum acceptable bid if, after evaluation of the value of the lands proposed for lease, the Secretary determines that the bid amount does not ensure that fair market value is obtained for the lease. The proposal or promulgation of any regulation to establish a higher minimum acceptable bid shall not be considered a major Federal action that is subject to the requirements of section 102(2)(C) of the National Environmental Policy Act of 1969 ( . 42 U.S.C. 4332(2)(C) ). Section 17(d) of the Mineral Leasing Act ( 30 U.S.C. 226(d) ), as amended by this Act, is further amended by— striking so much as precedes shall be conditioned and inserting the following: During the 2-year period beginning on the date of the enactment of the Sustainable Energy Development Reform Act, all leases issued under this section ; and inserting before A minimum royalty the following: After the end of such 2-year period, the Secretary may establish higher rental rates for all subsequent years, 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 lands. . The Mineral Leasing Act, as amended by this Act, is further amended— in section 17(b) ( 30 U.S.C. 226(b) ), by striking paragraph (3); by amending section 17(c) ( 30 U.S.C. 226(c) ) to read as follows: Lands made available for leasing under subsection (b)(1) but for which no bids are received, or for which the highest bid was less than the national minimum acceptable bid, or for which the highest bid was determined to be below fair market value, may thereafter be made available for leasing only in accordance with subsection (b)(1). ; in section 17(e) ( 30 U.S.C. 226(e) )— by striking Competitive and noncompetitive leases and inserting Leases ; and by striking competitive ; in section 31(d)(1) ( 30 U.S.C. 188(d)(1) ) by striking or section 17(c) ; in section 31(e) ( 30 U.S.C. 188(e) )— in paragraph
(2)by striking , or the inclusion and all that follows and inserting a semicolon; and in paragraph
(3)by striking
(A)and by striking subparagraph (B); by striking section 31(f) ( 30 U.S.C. 188(f) ); and in section 31(g) ( 30 U.S.C. 188(g) )— in paragraph
(1)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 17. ; by striking paragraph
(2)and redesignating paragraphs
(3)and
(4)as paragraphs
(2)and (3), respectively; and in paragraph (2), as so redesignated, by striking , applicable to leases issued under subsection 17(c) of this Act ( and inserting 30 U.S.C. 226(c) ) except, , except . Section 17(e) of the Mineral Leasing Act ( 30 U.S.C. 226(e) ) is amended— by striking 10 years and inserting 5 years ; and by striking ten years and inserting 5 years . Section 17(g) of the Mineral Leasing Act ( 30 U.S.C. 226(g) ), as amended by section 104 of this Act, is further amended by adding at the end the following: The Secretary shall not issue a lease or approve the assignment of any lease to any person, or to any subsidiary or affiliate of such person or any other person controlled by or under common control with such person, unless such person has the demonstrated capability to explore and produce oil and gas under the lease. Each lease under this section shall include such terms as are necessary to preserve the Federal Government’s 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 gas. .
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