Natural Gas Environmental and Economic Security Act

Summary: Natural Gas Environmental and Economic Security Act This bill amends the Federal Oil and Gas Royalty Management Act of 1982 to direct the Department of the Interior to establish specified requirements for:  reducing and preventing the waste of natural gas, including by venting, flaring, and fugitive releases, from all oil and gas operations subject to mineral leasing law or the Federal Land Policy and Management Act of 1976; and  measuring and reporting the production and disposition of all gas subject to the mineral leasing laws to allow for more accurate accounting of gas consumed or lost by venting and flaring, and of fugitive releases of such gas.  All such requirements shall include consistent enforcement mechanisms for any operations not in compliance with them.  Royalties otherwise authorized or required to be paid for natural gas shall be assessed on all gas produced under the mineral leasing laws, including:  gas used or consumed within the area of a tract for the benefit of the lease (commonly referred to as &quot;beneficial use gas&quot;); and all gas consumed or lost by venting, flaring, or fugitive releases through any equipment during upstream operations.  Exempted from assessment of these royalties is any natural gas:   vented or flared in an acute emergency situation posing danger to human health that occurs for no more than 48 hours, or injected into the ground on a lease tract. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Gas Environmental and 
Economic Security Act''.

SEC. 2. GAS WASTE REDUCTION AND ENHANCEMENT OF GAS MEASURING AND 
              REPORTING.

    (a) In General.--Title I of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1711 et seq.) is amended by adding at 
the end the following:

``SEC. 118. GAS WASTE REDUCTION AND ENHANCEMENT OF GAS MEASURING AND 
              REPORTING.

    ``(a) Rules for Preventing and Reducing Waste of Gas Via Venting, 
Flaring, and Fugitive Releases.--
            ``(1) Requirement to issue rules.--The Secretary shall 
        issue rules that establish requirements for reducing and 
        preventing the waste of gas, including by venting, flaring, and 
        fugitive releases, from covered operations.
            ``(2) Content of rules.--The rules shall--
                    ``(A) require that 99 percent of all gas produced 
                that is subject to a mineral leasing law be captured 
                annually within 5 years of enactment of the Natural Gas 
                Environmental and Economic Security Act;
                    ``(B) require flaring of gas, rather than venting, 
                in all instances in which gas capture is not viable;
                    ``(C) require that every application for a permit 
                to drill a production well--
                            ``(i) demonstrate sufficient infrastructure 
                        is in place to capture produced gas; and
                            ``(ii) be subject to public comments for a 
                        period of 30 days;
                    ``(D) prohibit all new wells from flaring, within 2 
                years after the date of the enactment of the Natural 
                Gas Environmental and Economic Security Act;
                    ``(E) require the operator of any covered operation 
                that routinely flares gas before the effective date of 
                the prohibition under subparagraph (D) to submit a gas 
                capture plan to the Secretary no later than 6 months 
                after such effective date that ensures the requirement 
                in subparagraph (A) will be met;
                    ``(F) require the operator of any covered operation 
                that routinely flares gas before the effective date of 
                the prohibition under subparagraph (D) to demonstrate a 
                yearly decrease in the amount of gas flared, as a 
                fraction of gas produced, to meet the requirement under 
                subparagraph (A);
                    ``(G) set performance standards based on modern 
                equipment, to be updated every 5 years, that minimize 
                gas loss from--
                            ``(i) storage tanks;
                            ``(ii) dehydrators;
                            ``(iii) compressors;
                            ``(iv) open-ended valves or lines;
                            ``(v) pumps; and
                            ``(vi) other equipment for which the 
                        Secretary considers such standards are 
                        necessary;
                    ``(H) require the replacement of all high-bleed 
                gas-actuated pneumatic devices with low-bleed or no-
                bleed devices;
                    ``(I) set performance standards based on modern 
                procedures and equipment, to be updated every 5 years, 
                that minimize gas loss from--
                            ``(i) downhole maintenance;
                            ``(ii) liquids unloading;
                            ``(iii) well completion; and
                            ``(iv) other procedures for which the 
                        Secretary considers such standards are 
                        necessary;
                    ``(J) require all operators to have regularly 
                scheduled leak detection programs that assess the 
                entire covered operation using an infrared camera or 
                other equipment with equivalent sensitivity and the 
                ability to survey similarly large areas;
                    ``(K) require any leaks found during leak detection 
                programs required under subparagraph (J), or otherwise, 
                to be repaired within 2 weeks; and
                    ``(L) require recordkeeping for--
                            ``(i) equipment maintenance;
                            ``(ii) leak detection and repair;
                            ``(iii) venting events;
                            ``(iv) flaring events; and
                            ``(v) other operations for which the 
                        Secretary considers such requirements are 
                        necessary.
    ``(b) Gas Measuring, Reporting, and Transparency Requirements.--
            ``(1) In general.--The Secretary shall, in accordance with 
        this subsection, establish new requirements for measuring and 
        reporting the production and disposition of all gas subject to 
        the mineral leasing laws to allow for more accurate accounting 
        of all such gas that is consumed or lost by venting and 
        flaring, and of fugitive releases of such gas.
            ``(2) Measuring and reporting requirements.--To account for 
        all gas referred to in paragraph (1), the Secretary shall issue 
        rules requiring oil or gas operators to--
                    ``(A) measure all production and disposition of gas 
                with such accuracy that fugitive gas releases can be 
                calculated;
                    ``(B) install metering devices to measure all 
                vented and flared gas; and
                    ``(C) report to the Secretary the volumes of gas 
                measured under the requirements under subparagraph (A), 
                including--
                            ``(i) all new measured values for 
                        production and disposition, including vented 
                        and flared volumes; and
                            ``(ii) fugitive releases based on 
                        guidelines for their calculation established by 
                        the Secretary in the rule.
            ``(3) Transparency.--The Secretary shall make all new data 
        produced under the requirements established by the Secretary 
        under this subsection, including calculated fugitive releases 
        and volumes of gas lost to venting and flaring, publicly 
        available through the Internet--
                    ``(A) without a fee or other access charge;
                    ``(B) in a searchable, sortable, and downloadable 
                manner, to the extent technically possible; and
                    ``(C) as soon as technically practicable after the 
                report by the operator is filed.
    ``(c) Application.--Except as otherwise specified in this section, 
the requirements established by the Secretary under this section shall 
apply to--
            ``(1) the construction and operation of any covered 
        operation initiated after the date of the issuance of rules 
        under this section; and
            ``(2) after the end of the 1-year period beginning on the 
        date of the issuance of such rules, any covered operation 
        initiated before the date of the issuance of such rules.
    ``(d) Enforcement Mechanisms.--
            ``(1) In general.--The Secretary shall include in the rules 
        issued under this section consistent enforcement mechanisms for 
        covered operations that are not in compliance with the 
        requirements established by the rules.
            ``(2) Requirements.--The enforcement mechanisms under 
        paragraph (1) shall include--
                    ``(A) civil penalties for unauthorized venting and 
                flaring, which shall--
                            ``(i) apply in lieu of the penalties under 
                        section 109; and
                            ``(ii) include production restrictions and 
                        civil monetary penalties equivalent to 3 times 
                        the market value of the vented or flared gas; 
                        and
                    ``(B) civil penalties that apply to noncompliance 
                with other new or existing procedures, which shall--
                            ``(i) apply in addition to or in lieu of 
                        the penalties under section 109;
                            ``(ii) include production restrictions or 
                        monetary penalties, or both; and
                            ``(iii) in the case of monetary penalties, 
                        be proportional to market conditions.
    ``(e) Definitions.--In this section:
            ``(1) Covered operations.--The term `covered operations' 
        means all oil and gas operations that are subject to mineral 
        leasing law or title V of the Federal Land Policy and 
        Management Act of 1976 (30 U.S.C. 1761 et seq.), regardless of 
        size, including production, storage, gathering, processing, and 
        handling operations.
            ``(2) Flare and flaring.--The term `flaring' means the 
        intentional and controlled burning of gas that occurs in the 
        course of oil and gas operations to limit release of gas to the 
        atmosphere.
            ``(3) Fugitive release.--The term `fugitive release' means 
        the unintentional and uncontrolled release of gas into the 
        atmosphere in the course of oil and gas operations.
            ``(4) Gas capture plan.--The term `gas capture plan' means 
        a plan that includes specific goals, including equipment and 
        timelines, for capturing, gathering, and processing gas 
        produced under an oil or gas lease.
            ``(5) Gas release.--The term `gas release' includes all gas 
        that is discharged to the atmosphere via venting or fugitive 
        release.
            ``(6) Vent and venting.--The term `venting' means the 
        intentional and controlled release of gas into the atmosphere 
        in the course of oil and gas operations.''.
    (b) Clerical Amendment.--The table of contents in section 1 of that 
Act is amended by adding at the end of the items relating to title I 
the following:

``Sec. 118. Gas waste reduction and enhancement of gas measuring and 
                            reporting.''.
    (c) Deadline.--The Secretary of the Interior shall issue rules 
required by the amendments made by this section by not later than 1 
year after the date of the enactment of this Act.
    (d) Assessment of Venting, Flaring, and Fugitive Releases.--Not 
later than 6 months after the end of the 1-year period beginning on the 
date the Secretary of the Interior first receives data submitted under 
the requirements established under subsection (b) of section 118 of the 
Federal Oil and Gas Royalty Management Act of 1982, as amended by this 
section, the Secretary shall--
            (1) submit a report to Congress describing--
                    (A) the volume of fugitive releases, and gas 
                consumed or lost by venting and flaring, from covered 
                operations (as those terms are used in such section);
                    (B) additional rules the Secretary considers 
                necessary to further curtail venting, flaring, and 
                fugitive releases, or the rational basis for not 
                issuing new rules if the Secretary considers new rules 
                are not necessary; and
                    (C) recommendations for new statutory authority 
                necessary to limit venting, flaring, or fugitive 
                releases; and
            (2) issue rules described in the report under paragraph 
        (1)(B) within 1 year after the date of the submission of the 
        report.

SEC. 3. ROYALTY COLLECTION FOR ALL GAS PRODUCED ON FEDERAL LANDS.

    (a) Assessment on All Production.--
            (1) In general.--Except as provided in paragraph (2), 
        royalties otherwise authorized or required under the mineral 
        leasing laws (as that term is defined in the Federal Oil and 
        Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.)) to 
        be paid for gas shall be assessed on all gas produced under the 
        mineral leasing laws, including--
                    (A) gas used or consumed within the area of the 
                lease tract for the benefit of the lease (commonly 
                referred to as ``beneficial use gas''); and
                    (B) all gas that is consumed or lost by venting, 
                flaring, or fugitive releases through any equipment 
                during upstream operations.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to--
                    (A) gas vented or flared in an acute emergency 
                situation that poses danger to human health that occurs 
                for no longer than 48 hours; and
                    (B) gas injected into the ground on a lease tract 
                in order to enhance production of an oil or gas well or 
                for some other purpose.
    (b) Conforming Amendments.--
            (1) Mineral leasing act.--The Mineral Leasing Act is 
        amended--
                    (A) in section 14 (30 U.S.C. 223), by adding at the 
                end the following: ``Notwithstanding any other 
                provision of this Act (including this section), royalty 
                shall be assessed with respect to oil and gas, other 
                than gas described in section 3(a)(2) of the Natural 
                Gas Environmental and Economic Security Act, without 
                regard to whether oil or gas is removed or sold from 
                the leased land.'';
                    (B) in section 17 (30 U.S.C. 226), by striking 
                ``removed or sold'' each place it appears;
                    (C) in section 18 (30 U.S.C. 226), by striking 
                ``except oil or gas used for production purposes on the 
                claim, or unavoidably lost'' each place it appears;
                    (D) in section 19 (30 U.S.C. 226), by striking 
                ``except oil or gas used for production purposes on the 
                claim, or unavoidably lost'' each place it appears;
                    (E) in section 22 (30 U.S.C. 251), by striking 
                ``sold or removed''; and
                    (F) in section 31 (30 U.S.C. 188), by striking 
                ``removed or sold'' each place it appears.
            (2) Outer continental shelf lands act.--The Outer 
        Continental Shelf Lands Act is amended--
                    (A) in section 6(a)(8) (43 U.S.C. 1335(a)(8)), by 
                striking ``saved, removed, or sold'' each place it 
                appears; and
                    (B) in section 8(a) (43 U.S.C. 1337(a))--
                            (i) in paragraph (1), by striking ``saved, 
                        removed, or sold'' each place it appears; and
                            (ii) by adding at the end the following:
            ``(9) Notwithstanding any other provision of this Act 
        (including this section), royalty under this Act shall be 
        assessed with respect to oil and gas, other than gas described 
        in section 3(a)(2) of the Natural Gas Environmental and 
        Economic Security Act, without regard to whether oil or gas is 
        removed or sold from the leased land.''.
    (c) Application.--The amendments made by this section shall apply 
only with respect to leases issued on or after the date of the 
enactment of this Act.