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Code · BILL · 116th Congress · H.R. 4294 (Introduced in House) — To empower States to manage the development and production of oil and gas on available Federal land, to distribute re... · Sec. 101

Sec. 101. Cooperative federalism in oil and gas permitting on available Federal land

2,096 words·~10 min read·/bill/116/hr/4294/ih/section-101

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The Mineral Leasing Act ( 30 U.S.C. 181 et seq.) is amended— by redesignating section 44 as section 48; and by adding after section 43 the following new section: Upon receipt of an application under subsection (b), the Secretary may delegate to a State exclusive authority— to issue an Application for Permit to Drill on available Federal land; or to approve drilling plans on available Federal land. Any authorization under paragraph
(1)may, upon the request of the State, include authority to process sundry notices. Any authorization under paragraph
(1)may, upon the request of the State, include authorization to inspect and enforce an Application for Permit to Drill or drilling plan, as applicable. An authorization under paragraph (1)(A) shall not affect the ability of the Secretary to collect inspection fees under section 108(d) of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1718(d) ). A State may submit an application under subparagraph
(A)or
(B)of subsection (a)(1) to the Secretary at such time and in such manner as the Secretary may require. An application submitted under this subsection shall include— a description of the State program that the State proposes to administer under State law, including a State drilling plan; and a statement from the Governor or Attorney General of such State that the laws of such State provide adequate authority to carry out the State program. Not later than 180 days after the date of receipt of an application under this subsection, the Secretary shall approve or disapprove such application. The Secretary may approve an application received under this subsection only if the Secretary has— determined that the State applicant would be at least as effective as the Secretary in issuing Applications for Permit to Drill or in approving drilling plans, as applicable; determined that the State program of the State applicant— complies with this Act; and provides for the termination or modification of an issued Application for Permit to Drill or approved drilling plan, as applicable, for cause, including for— the violation of any condition of the issued Application for Permit to Drill or approved drilling plan; obtaining the issued Application for Permit to Drill or approved drilling plan by misrepresentation; or failure to fully disclose in the application all relevant facts; determined that the State applicant has sufficient administrative and technical personnel and sufficient funding to carry out the State program; provided notice to the public, solicited public comment, and held a public hearing within such State; determined that approval of the application would not result in decreased royalty payments owed to the United States under section 35(a), except as provided in subsection
(e)of that section; and in the case of a State applicant seeking authority under subsection (a)(3) to inspect and enforce Applications for Permit to Drill or drilling plans, as applicable, entered into a memorandum of understanding with such State applicant that delineates the Federal and State responsibilities with respect to such inspection and enforcement. If the Secretary disapproves an application submitted under this subsection, then the Secretary shall— notify, in writing, such State applicant of the reason for the disapproval and any revisions or modifications necessary to obtain approval; and provide any additional information, data, or analysis upon which the disapproval is based. A State may resubmit an application under this subsection at any time. Before a State submits an application under this subsection, the Secretary may, at the request of such State, enter into a memorandum of understanding with such State regarding the proposed State program— to delineate the Federal and State responsibilities for oil and gas regulations; to provide technical assistance; and to share best management practices. A State for which authority has been delegated under subsection (a)(1)(A) may collect a fee for each application for an Application for Permit to Drill that is submitted to the State. The Secretary may not collect a fee from the applicant or from the State for an application for an Application for Permit to Drill that is submitted to a State for which authority has been delegated under subsection (a)(1)(A). The fee collected under paragraph
(1)shall be less than or equal to the amount of the fee described in section 35(d)(2). A State shall use 100 percent of the fees collected under this subsection for the administration of the approved State program of the State. A State may voluntarily terminate any authority delegated to such State under subsection
(a)upon providing written notice to the Secretary 60 days in advance of the date of termination. Upon expiration of such 60-day period, the Secretary shall resume any activities for which authority was delegated to the State under subsection (a). If a State for which the Secretary has delegated authority under subsection (a)(1) denies an application for an Application for Permit to Drill or an application for approval of a drilling plan, the applicant may appeal such decision to the Department of the Interior Office of Hearings and Appeals. The Secretary may charge the applicant a fee for the appeal referred to in paragraph (1). If the Secretary has reason to believe that a State is not administering or enforcing an approved State program, the Secretary shall notify the relevant State regulatory authority of any possible deficiencies. Not later than 30 days after the date on which a State receives notification of a possible deficiency under paragraph (1), the State shall— take appropriate action to correct the possible deficiency; and notify the Secretary of the action in writing. On expiration of the 30-day period referred to in paragraph (2), if the Secretary determines that 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 State or that the State has not demonstrated its capability and intent to administer or enforce such a program, the Secretary shall issue public notice of such a determination. A State may appeal the determination of the Secretary under subparagraph
(A)in the applicable United States District Court. The Secretary may not resume activities under paragraph
(4)pending the resolution of the appeal. Subject to paragraph (3)(B), 30 days after the date on which the Secretary issues the public notice described in paragraph 3(A), the Secretary shall resume any activities for which authority was delegated to the State during the period— beginning on the date 30 days after the date on which the Secretary issues the public notice under paragraph (3)(A); and ending on the date on which the Secretary determines that the State will administer or enforce, as applicable, such State’s approved State program. States with approved regulatory programs shall have standing to sue the Secretary for any action taken under this subsection. In this section: The term available Federal land means any Federal land that— is located within the boundaries of a State; is not held by the United States in trust for the benefit of a federally recognized Indian Tribe or a member of such an Indian Tribe; is not a unit of the National Park System; is not a unit of the National Wildlife Refuge System, except for the portion of such unit for which oil and gas drilling is allowed under law; is not a congressionally approved wilderness area under the Wilderness Act ( 16 U.S.C. 1131 et seq.); and has been identified as land available for lease or has been leased for the exploration, development, and production of oil and gas— by the Bureau of Land Management under— a resource management plan under the process provided for in the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1701 et seq.); or an integrated activity plan with respect to the National Petroleum Reserve in Alaska; or by the Forest Service under a National Forest management plan under the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1600 et seq.). The term drilling plan means a plan described under section 3162.3–1(e) of title 43, Code of Federal Regulations (or successor regulation). The term Application for Permit to Drill or Applications for Permit to Drill means a permit— that grants authority to drill for oil and gas; and for which an application has been received that contains— a drilling plan; a surface use plan of operations described under section 3162.3–1(f) of title 43, Code of Federal Regulations (or successor regulation); evidence of bond coverage; and such other information as may be required by applicable orders and notices. The term Secretary means the Secretary of the Interior. The term State means each of the several States. The term State applicant means a State that has submitted an application under subsection (b). The term State program means a program that provides for a State to— issue Applications for Permit to Drill or approve drilling plans, as applicable, on available Federal land; and impose sanctions for violations of State laws, regulations, or any condition of an issued Application for Permit to Drill or approved drilling plan, as applicable. The term sundry notice means a written request— to perform work not covered under an Application for Permit to Drill or drilling plan; or for a change to operations covered under a an Application for Permit to Drill or drilling plan. . Section 108 of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1718 ) is amended by adding at the end the following: The Secretary shall conduct inspections of operations under each oil and gas lease. The Secretary shall collect annual nonrefundable inspection fees in the amount specified in paragraph (2), from each designated operator under each oil and gas lease on Federal that is subject to inspection under subsection
(b)and that is located in a State for which the Secretary has delegated authority under section 44(a)(1)(A) of the Mineral Leasing Act. The amount of the fees collected under paragraph
(1)shall be— $700 for each lease or unit or communitization agreement with no active or inactive wells, but with surface use, disturbance or reclamation; $1,225 for each lease or unit or communitization agreement with 1 to 10 wells, with any combination of active or inactive wells; $4,900 for each lease or unit or communitization agreement with 11 to 50 wells, with any combination of active or inactive wells; and $9,800 for each lease or unit or communitization agreement with more than 50 wells, with any combination of active or inactive wells. There is established in the Treasury a fund, to be known as the Onshore Energy Safety Fund (referred to in this subsection as the Fund ), into which shall be deposited all amounts collected as fees under paragraph
(1)and which shall be available as provided under paragraph (4). Notwithstanding section 3302 of title 31, United States Code, all amounts deposited in the Fund— shall be credited as offsetting collections; shall be available for expenditure for purposes of carrying out inspections of onshore oil and gas operations in those States for which the Secretary has delegated authority under section 44(a)(1)(A) of the Mineral Leasing Act; shall be available only to the extent provided for in advance in an appropriations Act; and shall remain available until expended. The Secretary shall require payment of any fee assessed under this subsection within 30 days after the Secretary provides notice of the assessment of the fee after the completion of an inspection. If a designated operator assessed a fee under this subsection fails to pay the full amount of the fee as prescribed in this subsection, the Secretary may, in addition to utilizing any other applicable enforcement authority, assess civil penalties against the operator under section 109 in the same manner as if this section were a mineral leasing law. If, on the basis of any inspection under subsection (b), the Secretary determines that an operator is in noncompliance with the requirements of mineral leasing laws and this chapter, the Secretary shall notify the State of such noncompliance immediately. . Section 390(a) of the Energy Policy Act of 2005 ( 42 U.S.C. 15942(a) ) is amended— by striking Action by the Secretary of the Interior and inserting The Secretary of the Interior, ; by inserting a comma after Agriculture ; by striking with respect to any of the activities described in subsection
(b)shall be subject to a rebuttable presumption that the use of and inserting shall apply ; and by striking would apply if the activity and inserting for each action described in subsection
(b)if the action .
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