Sec. 70804. Fossil fuel resources

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Section 20001 of Public Law 115–97 is repealed and any leases issued pursuant to section 20001 of Public Law 115–97 are hereby cancelled and all payments related to the leases shall be returned to the lessee(s) within 30 days of enactment of this Act. Section 8 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337 ) is amended by adding at the end the following: The Secretary of the Interior may not issue a lease or any other authorization for the exploration, development, or production of oil or natural gas in the areas of the Outer Continental Shelf designated by section 104(a) of the Gulf of Mexico Energy Security Act of 2006 or in any area within the Atlantic Region planning areas or the Pacific Region planning areas (as such planning areas are described in the document entitled 2017 – 2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program dated November 2016, or a subsequent oil and gas leasing program developed under section 18 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1344 ). .

The Mineral Leasing Act ( 30 U.S.C. 207 ) is amended— in section 7(a), by striking 12½ and inserting 20 ; in section 17, by— striking 12.5 each place such term appears and inserting 20 ; and striking 12 ½ each place such term appears and inserting 20 ; and in section 31(e), by striking 16 both places such term appears and inserting 2⁄3 25 . Section 8 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337 ) is amended by striking— 12 ½ each place such term appears and inserting 20 ; and 12 and ½ each place such term appears and inserting 20 .

Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 ) is amended— in subsection (b)(1)(B)— by striking $2 per acre and inserting $10 per acre, except as otherwise provided by this paragraph ; and by striking Federal Onshore Oil and Gas Leasing Reform Act of 1987 and inserting subtitle H of the Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 of the 117th Congress ; in subsection (b)(2)(C), by striking $2 per acre and inserting $10 per acre ; and by adding at the end the following:

The Secretary shall— by regulation, at least once every 4 years, adjust each of the dollar amounts that apply under subsections (b)(1)(B), (b)(2)(C), and

(d)to reflect the change in inflation; and publish each such regulation in the Federal Register. . Section 2(a) of the Mineral Leasing Act ( 30 U.S.C. 201(a) ) is amended— in paragraph (1), by striking the second and third sentences; and by striking paragraphs

(4)and (5). Section 7(a) of the Mineral Leasing Act ( 30 U.S.C. 207 ) is amended in the third sentence by inserting at a rental rate of not less than $100 per acre (as reviewed and, if appropriate, adjusted by the Secretary every 4 years) before the period. Section 17(d) of the Mineral Leasing Act ( 30 U.S.C. 226(d) ) is amended in the first sentence by striking $1.50 per acre per year for the first through fifth years of the lease and not less than $2 per acre per year for each year thereafter and inserting $3 per acre per year during the 2-year period beginning on the date the lease begins for new leases, and after the end of such two-year period not less than $5 per acre per year . Section 31(e) of the Mineral Leasing Act ( 30 U.S.C. 188(e) ) is amended by striking $10 and inserting $20 . Section 7 of the Mineral Leasing Act ( 30 U.S.C. 207 ) is amended— in subsection (a)— in the first sentence, by striking twenty and inserting 10 ; in the second sentence, by striking ten and inserting 5 ; and in the sixth sentence— by striking twenty and inserting 10 ; and by striking ten and inserting 5 ; and in subsection (b)(5), by striking 20 and inserting 10 . Section 17(e) of the Mineral Leasing Act ( 30 U.S.C. 226(e) ) is amended by striking 10 years: and inserting 5 years. . Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 ), as amended by this subtitle is amended by adding at the end the following: The Secretary shall charge any person who submits, in accordance with procedures established by the Secretary to carry out this subsection, an expression of interest in leasing land available for disposition under this section for exploration for, and development of, oil or gas a fee in an amount determined by the Secretary under paragraph (2). The fee authorized under paragraph

(1)shall be established by the Secretary in an amount that is determined by the Secretary to be appropriate to cover the aggregate cost of processing an expression of interest under this subsection, but not less than $15 per acre of the area covered by the applicable expression of interest. The Secretary shall, by regulation at least every 4 years, establish a higher expression of interest fee— to reflect the change in inflation; and as the Secretary determines to be necessary to enhance financial returns to the United States. . The Mineral Leasing Act is 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 bid is accepted may be made available by the Secretary for a new round of sealed bidding under such subsection. ; in section 17(e) ( 30 U.S.C. 226(e) )— by striking Competitive and noncompetitive leases and inserting Leases, including leases for tar sand areas, ; and by striking and all that follows through Provided , however ten years. ; in section 31(d)(1) ( 30 U.S.C. 188(d)(1) ) by striking or

(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 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(g) of the Mineral Leasing Act ( 30 U.S.C. 226(g) ) is amended— by inserting Each such bond, surety, or other financial arrangement shall be considered inadequate if such bond, surety, or other financial arrangement is for less than $150,000 in the case of an arrangement for an individual surface-disturbing activity of each entity on an individual oil or gas lease in a State, or $500,000 in the case of an arrangement for all surface-disturbing activities of each entity on all oil and gas leases in a State. after on the lease. ; by redesignating existing subsection

(g)as paragraph (1); and by adding at the end the following new paragraph: Not later than 180 days after the date of enactment of subtitle H of the Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 of the 117th Congress the Secretary concerned shall initiate a rulemaking to require that an adequate bond, surety, or other financial arrangement be provided by the lessee prior to the commencement of surface-disturbing activities on any lease issued under this Act to ensure the complete and timely remediation and reclamation of any land, water, or other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) adversely affected by lease activities and operations after the abandonment or cessation of oil and gas operations on the lease. The Secretary concerned shall find that a bond, surety or other financial arrangement required by regulation under subparagraph

(A)is inadequate if it is for less than— the complete and timely reclamation of the lease tract; the restoration of any lands or surface waters adversely affected by lease operations after the abandonment or cessation of oil and gas operations on the lease; and in the case of an idled well, the total plugging and reclamation costs for each idled well controlled by the same operator. The Secretary concerned shall review the adequacy of each such bond, surety, or other financial arrangement at least once every 5 years and anytime a lease issued under this Act is transferred. . The Secretary of Interior shall charge onshore and offshore oil and gas leaseholders the following annual, non-refundable fees: There is established a Conservation of Resources Fee of $4 per acre per year on new producing Federal onshore and offshore oil and gas leases. There is established a Speculative Leasing Fee of $6 per acre per year on new nonproducing Federal onshore and offshore oil and gas leases. All funds collected pursuant to paragraph

(1)shall be deposited into the United States Treasury General Fund. The Secretary of the Interior shall, by regulation at least once every four years, adjust each fee created by paragraph

(1)to reflect any increase in inflation. 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 designated operator under each oil and gas lease on Federal or Indian lands, or each unit and communitization agreement that includes one or more such Federal or Indian leases, that is subject to inspection under subsection

(b)and that is in force at the start of the fiscal year 2021, shall pay a nonrefundable annual inspection fee in an amount that, except as provided in paragraph (2), is established by the Secretary by regulation and is sufficient to recover the full costs incurred by the United States for inspection and enforcement with respect to such leases. Until the effective date of regulations under paragraph (1), the amount of the fee shall be— $800 for each lease or unit or communitization agreement with no active or inactive wells, but with surface use, disturbance or reclamation; $1,400 for each lease or unit or communitization agreement with 1 to 10 wells, with any combination of active or inactive wells; $5,600 for each lease or unit or communitization agreement with 11 to 50 wells, with any combination of active or inactive wells; and $11,300 for each lease or unit or communitization agreement with more than 50 wells, with any combination of active or inactive wells. Payment of the fee under this section shall be due, annually, not later than 30 days after the Secretary provides notice of the assessment of the fee. If the designated operator fails to pay the full amount of the fee as prescribed in this section, 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. An operator that is a Tribe or is controlled by a Tribe is not subject to paragraph

(1)with respect to a lease, unit, or communitization agreement that is located entirely on the lands of such Tribe. . The Secretary of the Interior shall assess the fee under the amendment made by paragraph

(1)for fiscal year 2022, and provide notice of such assessment to each designated operator who is liable for such fee, by not later than 60 days after the date of enactment of this Act. Section 22 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1348 ) is amended by adding at the end the following: The Secretary shall collect from the operators of facilities subject to inspection under subsection

(c)nonrefundable fees for such inspections— at an aggregate level to offset the annual expenses of such inspections; using a schedule that reflect the differences in complexity among the classes of facilities to be inspected; and in accordance with subparagraph (C). For each fiscal year beginning after fiscal year 2022, the Secretary shall adjust the amount of the fees collected under this paragraph for inflation. For fiscal year 2022, the Secretary shall collect annual fees from the operator of facilities that are above the waterline, excluding drilling rigs, and are in place at the start of the fiscal year in the following amounts: $11,725 for facilities with no wells, but with processing equipment or gathering lines. $18,984 for facilities with 1 to 10 wells, with any combination of active or inactive wells. $35,176 for facilities with more than 10 wells, with any combination of active or inactive wells. For fiscal year 2022, the Secretary shall collect fees for each inspection from the operators of drilling rigs in the following amounts: $34,059 per inspection for rigs operating in water depths of 500 feet or more. $18,649 per inspection for rigs operating in water depths of less than 500 feet. For fiscal year 2022, the Secretary shall collect fees for each inspection from the operators of well operations conducted via non-rig units as outlined in subparts D, E, F, and Q of part 250 of title 30, Code of Federal Regulations (or any successor regulation), in the following amounts: $13,260 per inspection for non-rig units operating in water depths of 2,500 feet or more. $11,530 per inspection for non-rig units operating in water depths between 500 and 2,499 feet. $4,470 per inspection for non-rig units operating in water depths of less than 500 feet. Amounts collected as fees under paragraph

(1)shall be deposited into the general fund of the Treasury. The Secretary shall bill designated operators under paragraph (1)(C)(i) annually, with payment required not later than 30 days after such billing. The Secretary shall bill designated operators under paragraph (1)(C)(ii) not later than 30 days after the end of the month in which the inspection occurred, with payment required not later than 30 days after such billing. The Secretary shall annually make available to the public the following information about each fee deposited into the Fund: The facility that was inspected. The name of the operator of such facility. The amount of the payment. . The Secretary of Interior shall collect annual, non-refundable fees on fossil fuels produced from new leases on Federal lands and the Outer Continental Shelf and deposit the funds into the United States Treasury General Fund. Such fees shall be— not less than $0.50 per barrel of oil equivalent on oil and natural gas produced from Federal lands and the Outer Continental Shelf; and not less than $2 per metric ton of coal produced from Federal lands. The Secretary shall, not later than 180 days after the date of enactment of this section, issue regulations to require each operator of an idled well on Federal land and the Outer Continental Shelf to pay an annual, nonrefundable fee for each such idled well in accordance with this subsection. Except as provided in paragraph (5), the amount of the fee shall be as follows: $500 for each well that has been considered an idled well for at least 1 year, but not more than 5 years. $1,500 for each well that has been considered an idled well for at least 5 years, but not more than 10 years. $3,500 for each well that has been considered an idled well for at least 10 years, but not more than 15 years. $7,500 for each well that has been considered an idled well for at least 15 years. An owner of an idled well that is required to pay a fee under this subsection shall submit to the Secretary such fee by not later than October 1 of each year. If the operator of a idled well fails to pay the full amount of a fee under this subsection, the Secretary may assess a civil penalty against the operator under section 109 of the Federal Oil and Gas Royalty Management Act of 1982 ( 30 U.S.C. 1719 ) as if such failure to pay were a violation under such section. The Secretary shall, by regulation not less than once every 4 years, adjust each fee under this subsection to account for inflation. All funds collected pursuant to paragraph

(1)shall be deposited into the United States Treasury General Fund. For the purposes of this section, the term idled well means a well that has been non-operational for at least two consecutive years and for which there is no anticipated beneficial future use. Not later than 180 days after the date of enactment of this Act, the Bureau of Safety and Environmental Enforcement shall issue regulations to assess an annual fee on owners of offshore oil and gas pipelines. Such fee shall not qualify as a transportation allowance or as a deductible cost in calculating royalties due to the United States and shall be no less than— $10,000 per mile for such pipelines in water with a depth of 500 feet or greater; and $1,000 per mile for pipelines in water depth of under 500 feet. Except as provided in subparagraph (B), royalties paid for gas produced from Federal lands and on the Outer Continental Shelf shall be assessed on all gas produced, including— gas used or consumed within the area of the lease tract for the benefit of the lease; and all gas that is consumed or lost by venting, flaring, or fugitive releases through any equipment during upstream operations. Subparagraph

(A)shall not apply with respect to— gas vented or flared for not longer than 48 hours in an acute emergency situation that poses a danger to human health; and gas used or consumed within the area of the lease tract for the benefit of the lease when the operator is a Tribe or is controlled by a Tribe that is located entirely on the lands of such Tribe. The Mineral Leasing Act is amended— in section 14 ( 30 U.S.C. 223 ), by adding at the end the following: Royalties shall be assessed with respect to oil and gas, other than gas vented or flared for not longer than 48 hours in an acute emergency situation that poses a danger to human health and gas used or gas consumed within the area of the lease tract for the benefit of the lease when the operator is a Tribe or is controlled by a Tribe that is located entirely on the lands of such Tribe, without regard to whether oil or gas is removed or sold from the leased land. ; in section 22 ( 30 U.S.C. 251 ), by striking sold or removed ; and in section 31 ( 30 U.S.C. 188 ), by striking removed or sold each place it appears. The Outer Continental Shelf Lands Act is amended— in section 6(a)(8) ( 43 U.S.C. 1335(a)(8) ), by striking saved, removed, or sold each place it appears; and in section 8(a) ( 43 U.S.C. 1337(a) )— in paragraph (1), by striking saved, removed, or sold each place it appears; and by adding at the end the following: Royalties under this Act shall be assessed with respect to oil and gas, other than gas vented or flared for not longer than 48 hours in an acute emergency situation that poses a danger to human health and gas used or gas consumed within the area of the lease tract for the benefit of the lease when the operator is a Tribe or is controlled by a Tribe that is located entirely on the lands of such Tribe, without regard to whether oil or gas is removed or sold from the leased land. . Section 8(a)(1)(H) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(a)(1)(H) ) is amended by striking , and with suspension of royalties for a period, volume, or value of production determined by the Secretary, which suspensions may vary based on the price of production from the lease . Section 8(a)(1)(H) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(a)(1)(H) ) is amended by striking , and with suspension of royalties for a period, volume, or value of production determined by the Secretary, which suspensions may vary based on the price of production from the lease . Section 8(a)(3) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(a)(3) ) is amended— by striking subparagraphs

(A)and (B); and by redesignating subparagraph

(C)as subparagraph (A). Section 344 of the Energy Policy Act of 2005 ( 42 U.S.C. 15904 ) is repealed. Section 345 of the Energy Policy Act of 2005 ( 42 U.S.C. 15905 ) is repealed. Royalty relief shall not be permitted under a lease issued under section 8 of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337 ). Section 107 of the Naval Petroleum Reserves Production Act of 1976 ( 42 U.S.C. 6506a ) is amended— in subsection (i), by striking paragraphs

(2)through (6); and by striking subsection (k). Section 39 of the Mineral Leasing Act ( 30 U.S.C. 209 ) is repealed. Section 8721(b) of title 10, United States Code, is amended by striking 202–209 and inserting 202–208 . Section 8735(a) of title 10, United States Code, is amended by striking 202–209 and inserting 202–208 . Section 31(h) of the Mineral Leasing Act ( 30 U.S.C. 188(h) ) is amended by striking and the provisions of section 39 of this Act .

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