Sec. 2. Cooperative federalism in oil and gas permitting on available Federal land
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The Mineral Leasing Act ( 30 U.S.C. 181 et seq.) is amended— by redesignating section 44 as section 47; and by adding after section 43 the following: In this section: The term APD means a permit— that grants authority to drill for oil and gas; and for which an application has been received that includes— a drilling plan; a surface use plan of operations described in section 3162.3–1(f) of title 43, Code of Federal Regulations (or a successor regulation); evidence of bond coverage; and such other information as may be required by applicable orders and notices.
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 a federally recognized Indian Tribe; is not a unit of the National Park System; is not a unit of the National Wildlife Refuge System, other than a unit of the National Wildlife Refuge System 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 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–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 in section 3162.3–1(e) of title 43, Code of Federal Regulations (or a successor regulation). The term Secretary means the Secretary of the Interior. The term State applicant means a State that submits an application under subsection (c). The term State program means a program in a State under which the State may— issue APDs 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 APD or approved drilling plan, as applicable.
The term sundry notice means a written request— to perform work not covered under an APD or drilling plan; or for a change to operations covered under an APD or drilling plan. On receipt of an application under subsection (c), the Secretary may delegate to a State exclusive authority— to issue an APD on available Federal land; or to approve drilling plans on available Federal land. On request of a State for which authority is delegated under paragraph (1), the authority delegated may include the authority to approve sundry notices.
On request of a State for which authority is delegated under paragraph (1), the authority delegated may include the authority to inspect and enforce an APD or drilling plan, as applicable. A delegation of authority under paragraph (1)(A) shall not affect the ability of the Secretary to collect inspection fees under subsection
(d)of section 108 of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1718 ). A State seeking a delegation of authority under subparagraph
(A)or
(B)of subsection (b)(1) shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including— a description of the State program that the State proposes to administer under State law; and a statement from the Governor or attorney general of the State that demonstrates that the laws of the State provide adequate authority to carry out the State program. Not later than 180 days after the date on which an application under paragraph
(1)is received, the Secretary shall approve or disapprove the application. The Secretary may approve an application received under paragraph
(1)only if the Secretary determines that— the State applicant would be at least as effective as the Secretary in issuing APDs or in approving drilling plans, as applicable; the State program of the State applicant— complies with this Act; and provides for the termination or modification of an issued APD or approved drilling plan, as applicable, for cause, including for— the violation of any condition of the issued APD or approved drilling plan; obtaining the issued APD or approved drilling plan by misrepresentation; or failure to fully disclose in the application all relevant facts; the State applicant has sufficient administrative and technical personnel and sufficient funding to carry out the State program; and 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. With respect to a State applicant seeking authority under subsection (b)(3)(A) to inspect and enforce APDs or drilling plans, as applicable, before approving the application of the State applicant, the Secretary shall enter into a memorandum of understanding with the State applicant under paragraph
(6)that describes the Federal and State responsibilities with respect to the inspection and enforcement. Before approving an application received under paragraph (1), the Secretary shall— provide public notice of the application; solicit public comment for the application; and hold a public hearing for the application in the State. If the Secretary disapproves an application submitted under paragraph (1), the Secretary shall provide to the State applicant written notification of— the reasons for the disapproval, including any information, data, or analysis on which the disapproval is based; and any revisions or modifications necessary to obtain approval. A State may resubmit an application under paragraph
(1)at any time. Before a State submits an application under paragraph (1), the Secretary, on request of a State, may enter into a memorandum of understanding with the State regarding the proposed State program— to describe 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 (b)(1)(A) may collect a fee for each application for an APD 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 APD that is submitted to a State for which authority has been delegated under subsection (b)(1)(A). The fee collected under paragraph
(1)shall be less than or equal to the amount of the fee collected by the Secretary under section 35(d)(2) from States for which authority has not been delegated under subsection (b)(1)(A). A State shall use 100 percent of the fees collected under this subsection for the administration of the approved State program of the State. After providing written notice to the Secretary, a State may voluntarily terminate any authority delegated to the State under subsection (b)(1) on expiration of the 60-day period beginning on the date on which the Secretary receives the written notice. On termination of the authority delegated to a State under paragraph (1), the Secretary shall resume any activities for which authority was delegated to the State under subsection (b)(1). If a State for which the Secretary has delegated authority under subsection (b)(1) denies an application for an APD or an application for approval of a drilling plan, the applicant may appeal the decision to the Office of Hearings and Appeals of the Department of the Interior. The Secretary may charge an applicant a fee for an appeal under 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 described in paragraph (2), the Secretary shall issue public notice of any determination of the Secretary 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 the State has not demonstrated the capability and intent of the State to administer or enforce the State program of the State. 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)if an appeal under subparagraph
(B)is pending. Except as provided in paragraph (3)(C), if the Secretary has made a determination under paragraph (3)(A), the Secretary shall resume any activities for which authority was delegated to the State during the period— beginning on 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 may administer or enforce, as applicable, the approved State program of the State. A State with an approved regulatory program shall have standing to sue the Secretary for any action taken under this subsection. . 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 collect annual nonrefundable inspection fees in the amount specified in subparagraph (B), from each designated operator under each lease on Federal or Indian lands that is— subject to inspection under subsection (b); and located in a State for which the Secretary has delegated authority under section 44(b)(1)(A) of the Mineral Leasing Act. The amount of the fees collected under subparagraph
(A)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 of the United States a fund to be known as the Onshore Energy Safety Fund (referred to in this subsection as the Fund ). An amount equal to the amounts collected as fees under paragraph
(1)shall be deposited in the Fund. Amounts in the Fund shall— only be available to the extent and in the amount provided in advance in appropriations Acts; be used only for purposes described in subparagraph (D); remain available until expended; and be credited as offsetting collections. Notwithstanding section 3302 of title 31, United States Code, amounts deposited in the Fund shall only be available for expenditure for purposes of carrying out inspections under subsection
(b)in those States for which the Secretary has delegated authority under section 44(b)(1)(A) of the Mineral Leasing Act. The Secretary shall require payment of any fee assessed under paragraph
(1)not later than 30 days after the date on which the Secretary provides notice of the assessment of the fee after the completion of an inspection. If a designated operator assessed a fee under paragraph
(1)fails to pay the full amount of the fee required under this subsection, the Secretary may, in addition to using 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 failing to comply with the requirements of mineral leasing laws or this Act, the Secretary shall notify the State of the failure to comply 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 and inserting The Secretary ; 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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Sec. 2
Cooperative federalism in oil and gas permitting on available Federal land
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