Opportunities for the Nation and States to Harness Onshore Resources for Energy Act or the ONSHORE Act
This bill makes various changes to expand and otherwise addresses onshore oil and gas resources on federal land and non-federal surface estates.
Specifically, the bill requires, subject to some limits, the Department of the Interior and the Forest Service to lease certain public lands and Forest System land with known or potential oil or gas deposits. (Current law authorizes but does not require leasing.)
Other changes in the bill include (1) allowing Interior to delegate authority over certain federal permitting and other regulatory responsibilities for oil and gas leases to states; (2) exempting some oil and gas activities conducted on non-federal surface estates from certain permitting and environmental review requirements; and (3) requiring deference to state regulations, guidance, and permit requirements for all activities regarding hydraulic fracturing (a type of process used to extract underground energy resources) on federal land.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4229 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4229
To empower States to manage the development and production of oil and
gas on available Federal land, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2022
Mr. Barrasso (for himself, Ms. Lummis, Mr. Risch, Mr. Marshall, Mr.
Hoeven, and Mr. Cruz) introduced the following bill; which was read
twice and referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To empower States to manage the development and production of oil and
gas on available Federal land, 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 ``Opportunities for the Nation and
States to Harness Onshore Resources for Energy Act'' or the ``ONSHORE
Act''.
SEC. 2. CLARIFICATION OF AUTHORITY.
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)) is
amended by striking ``may be leased by the Secretary.'' and inserting
the following: ``shall be leased by the Secretary of the Interior, or
for National Forest System land, the Secretary of Agriculture, unless--
``(1) otherwise excluded under this Act; or
``(2) the Secretary of the Interior or the Secretary of
Agriculture, as applicable, shows good cause for why such land should
not be leased.''.
SEC. 3. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON AVAILABLE
FEDERAL LAND.
(a) In General.--The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended--
(1) by redesignating section 44 as section 47; and
(2) by adding after section 43 the following:
``SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON
AVAILABLE FEDERAL LAND.
``(a) Definitions.--In this section:
``(1) APD.--The term `APD' means a permit--
``(A) that grants authority to drill for oil and
gas; and
``(B) for which an application has been received
that includes--
``(i) a drilling plan;
``(ii) a surface use plan of operations
described in section 3162.3-1(f) of title 43,
Code of Federal Regulations (or a successor
regulation); and
``(iii) evidence of bond coverage.
``(2) Available federal land.--The term `available Federal
land' means any Federal land that--
``(A) is located within the boundaries of a State;
``(B) 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;
``(C) is not a unit of the National Park System;
``(D) 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;
``(E) is not a congressionally approved wilderness
area under the Wilderness Act (16 U.S.C. 1131 et seq.);
and
``(F) has been identified as land available for
lease, or has been leased, for the exploration,
development, and production of oil and gas--
``(i) by the Bureau of Land Management
under--
``(I) a resource management plan
under the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701
et seq.); or
``(II) an integrated activity plan
with respect to the National Petroleum
Reserve-Alaska; or
``(ii) 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.).
``(3) Drilling plan.--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).
``(4) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(5) State applicant.--The term `State applicant' means a
State that submits an application under subsection (c).
``(6) State program.--The term `State program' means a
program in a State under which the State may--
``(A) issue APDs, approve drilling plans, approve
sundry notices, approve suspensions of operations or
production, or grant rights-of-way on available Federal
land; and
``(B) impose sanctions for violations of State
laws, regulations, or any condition of an issued APD or
approved drilling plan, as applicable.
``(7) Sundry notice.--The term `sundry notice' means a
written request--
``(A) to perform work not covered under an APD or
drilling plan; or
``(B) for a change to operations covered under an
APD or drilling plan.
``(8) Suspension of operations or production.--The term
`suspension of operations or production' means a suspension of
operations or production described in section 3103.4-4 of title
43, Code of Federal Regulations (or successor regulations).
``(b) Authorizations.--
``(1) In general.--On receipt of an application under
subsection (c), the Secretary may delegate to a State exclusive
authority--
``(A) to issue an APD on available Federal land;
``(B) to approve drilling plans on available
Federal land;
``(C) to approve sundry notices relating to work
performed on available Federal land;
``(D) to approve suspensions of operations or
production; and
``(E) to grant rights-of-way in accordance with
paragraph (3).
``(2) Inspection and enforcement.--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, drilling plan, or right-of-way, as applicable.
``(3) Rights-of-way.--The authority to grant a right-of-way
delegated to a State under paragraph (1)(E) shall be the
authority of the Secretary of the Interior or the Secretary of
Agriculture, as applicable, under section 501 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1761), to
grant, issue, or renew rights-of-way over, upon, under, or
through available Federal land for the purpose of mineral
development.
``(4) Effect of federal environmental reviews.--A State for
which authority is delegated under paragraph (1) shall continue
processing applications for an APD, applications for approval
of a drilling plan, applications for approval of a sundry
notice, and applications to grant a right-of-way, regardless of
whether the Federal Government is carrying out any review
related to the APD, drilling plan, sundry notice, or right-of-
way under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) or the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.).
``(c) State Application Process.--
``(1) Submission of application.--A State seeking a
delegation of authority under subparagraph (A), (B), (C), (D),
or (E) 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) a description of the State program that the
State proposes to administer under State law; and
``(B) 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.
``(2) Deadline for approval or disapproval.--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.
``(3) Requirements for approval.--
``(A) In general.--The Secretary may approve an
application received under paragraph (1) only if the
Secretary determines that--
``(i) the State applicant would be at least
as effective as the Secretary in issuing APDs,
approving drilling plans, approving sundry
notices, approving suspensions of operations or
production, or granting rights-of-way, as
applicable;
``(ii) the State program of the State
applicant--
``(I) complies with this Act; and
``(II) provides for the termination
or modification of an issued APD,
approved drilling plan, approved sundry
notice, approved suspension of
operations or production, or granted
right-of-way, as applicable, for cause,
including for--
``(aa) the violation of any
condition of the issued APD,
approved drilling plan,
approved sundry notice,
approved suspension of
operations or production, or
granted right-of-way;
``(bb) obtaining the issued
APD, approved drilling plan,
approved sundry notice,
approved suspension of
operations or production, or
granted right-of-way by
misrepresentation; or
``(cc) failure to fully
disclose in the application all
relevant facts;
``(iii) the State applicant has sufficient
administrative and technical personnel and
sufficient funding to carry out the State
program; and
``(iv) approval of the application would
not result in decreased royalty payments owed
to the United States under subsection (a) of
section 35, except as provided in subsection
(e) of that section.
``(B) Memoranda of understanding.--With respect to
a State applicant seeking authority under subsection
(b)(2)(A) to inspect and enforce APDs, drilling plans,
or rights-of-way, 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.
``(C) Public notice.--Before approving an
application received under paragraph (1), the Secretary
shall--
``(i) provide public notice of the
application;
``(ii) solicit public comment for the
application; and
``(iii) hold a public hearing for the
application in the State.
``(4) Disapproval.--If the Secretary disapproves an
application submitted under paragraph (1), the Secretary shall
provide to the State applicant written notification of--
``(A) the reasons for the disapproval, including
any information, data, or analysis on which the
disapproval is based; and
``(B) any revisions or modifications necessary to
obtain approval.
``(5) Resubmittal of application.--A State may resubmit an
application under paragraph (1) at any time.
``(6) State memoranda of understanding.--Before a State
submits an application under paragraph (1), the Secretary, on
request of the State, may enter into a memorandum of
understanding with the State regarding the proposed State
program--
``(A) to describe the Federal and State
responsibilities for oil and gas regulations;
``(B) to provide technical assistance; and
``(C) to share best management practices.
``(d) Administrative Fees for APDs.--
``(1) In general.--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.
``(2) No collection of fee by secretary.--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).
``(3) Use.--A State shall use 100 percent of the fees
collected under this subsection for the administration of the
approved State program of the State.
``(e) Voluntary Termination of Authority.--
``(1) In general.--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.
``(2) Resumption by secretary.--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).
``(f) Appeal of Denial of Application.--If a State for which the
Secretary has delegated authority under subsection (b)(1) denies an
application submitted under subsection (c)(1), the applicant may appeal
the decision to the Office of Hearings and Appeals of the Department of
the Interior.
``(g) Federal Administration of State Program.--
``(1) Notification.--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.
``(2) State response.--Not later than 30 days after the
date on which a State receives notification of a possible
deficiency under paragraph (1), the State shall--
``(A) take appropriate action to correct the
possible deficiency; and
``(B) notify the Secretary of the action in
writing.
``(3) Determination.--
``(A) In general.--On expiration of the 30-day
period described in paragraph (2), the Secretary shall
issue public notice of any determination of the
Secretary that--
``(i) 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
``(ii) the State has not demonstrated the
capability and intent of the State to
administer or enforce the State program of the
State.
``(B) Appeal.--A State may appeal the determination
of the Secretary under subparagraph (A) in the
applicable United States District Court.
``(C) Resumption by secretary pending appeal.--The
Secretary may not resume activities under paragraph (4)
if an appeal under subparagraph (B) is pending.
``(4) Resumption by secretary.--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--
``(A) beginning on the date on which the Secretary
issues the public notice under paragraph (3)(A); and
``(B) 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.
``(5) Standing.--A State with an approved regulatory
program shall have standing to sue the Secretary for any action
taken under this subsection.''.
(b) Existing Authorities.--Section 390(a) of the Energy Policy Act
of 2005 (42 U.S.C. 15942(a)) is amended--
(1) by striking ``Action by the Secretary'' and inserting
``The Secretary'';
(2) 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
(3) by striking ``would apply if the activity'' and
inserting ``for each action described in subsection (b) if the
action''.
SEC. 4. PERMITTING ON A NON-FEDERAL SURFACE ESTATE.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
inserting after section 44 (as added by section 3(a)(2)) the following:
``SEC. 45. PERMITTING ON A NON-FEDERAL SURFACE ESTATE.
``(a) Definitions.--In this section:
``(1) Drainage.--The term `drainage', with respect to a
non-Federal surface estate, means the migration of any
hydrocarbon under the subsurface of the non-Federal surface
estate.
``(2) Unit.--The term `unit' means a State-regulated
drilling and spacing unit.
``(b) Permits Not Required for Certain Activities on a Non-Federal
Surface Estate.--The following activities conducted on a non-Federal
surface estate shall not require a permit from the Bureau of Land
Management and shall not be considered a major Federal action under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.):
``(1) Oil and gas operations for the exploration for, or
development or production of, oil and gas in a lease or unit or
communitization agreement in which the United States holds a
mineral ownership interest of 50 percent or less.
``(2) Oil and gas operations that may have potential
drainage impacts, as determined by the Bureau of Land
Management, on oil and gas in which the United States holds a
mineral ownership interest.
``(c) DOI Notification.--The Secretary of the Interior shall
provide to each State a map or list indicating Federal mineral
ownership within that State.
``(d) State Notification.--Each State with an approved permit to
drill or drilling plan that would impact or extract oil and gas owned
by the Federal Government shall notify the Secretary of the Interior of
the approved permit to drill or drilling plan.
``(e) Royalties.--Nothing in this section affects the amount of
royalties due to the United States under this Act from the production
of oil and gas.''.
SEC. 5. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING REGULATION.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by
inserting after section 45 (as added by section 4) the following:
``SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING
REGULATION.
``(a) Definitions.--In this section:
``(1) Hydraulic fracturing.--The term `hydraulic
fracturing' means the process of creating small cracks or
fractures in underground geological formations for well
stimulation purposes of bringing hydrocarbons into the wellbore
and to the surface for capture.
``(2) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(b) Enforcement of Federal Regulations.--The Secretary shall not
enforce any Federal regulation, guidance, or permit requirement
regarding hydraulic fracturing relating to oil, gas, or geothermal
production activities on or under any land in any State that has
regulations, guidance, or permit requirements for that activity.
``(c) State Authority.--The Secretary shall defer to State
regulations, guidance, and permit requirements for all activities
regarding hydraulic fracturing relating to oil, gas, or geothermal
production activities on Federal land.
``(d) Transparency of State Regulations.--
``(1) In general.--Each State shall submit to the Bureau of
Land Management a copy of the regulations of the State that
apply to hydraulic fracturing operations on Federal land,
including the regulations that require disclosure of chemicals
used in hydraulic fracturing operations.
``(2) Availability.--The Secretary shall make available to
the public on the website of the Secretary the regulations
submitted under paragraph (1).
``(e) Tribal Authority on Trust Land.--The Secretary shall not
enforce any Federal regulation, guidance, or permit requirement with
respect to hydraulic fracturing on any land held in trust or restricted
status for the benefit of a federally recognized Indian Tribe or a
member of a federally recognized Indian Tribe, except with the express
consent of the beneficiary on whose behalf the land is held in trust or
restricted status.''.
SEC. 6. PROTESTED LEASE SALES.
Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C.
226(b)(1)(A)) is amended by inserting after the seventh sentence the
following: ``The Secretary shall resolve any protest to a lease sale
within 60 days following such payment.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
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