I 

114TH CONGRESS 

2D SESSION H. R. 4389 

To amend the Mineral Leasing Act to ensure fair returns for Federal onshore 

oil and gas resources. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2016 

Mr. LOWENTHAL (for himself and Mr. GRIJALVA) introduced the following 

bill; which was referred to the Committee on Natural Resources 

A BILL 

To amend the Mineral Leasing Act to ensure fair returns 

for Federal onshore oil and gas resources. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Ensuring the Taxpayer 

5 a Fair Return for Federal Onshore Oil and Gas Resources 

6 Act of 2015’’. 


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1 SEC. 2. ADJUSTMENT OF MINIMUM BIDS AND ANNUAL 

2 RENTALS FOR OIL AND GAS AND TAR SANDS 

3 LEASES TO REFLECT INFLATION. 

4 (a) IN GENERAL.—Section 17 of the Mineral Leasing 

5 Act (30 U.S.C. 226) is amended— 

6 (1) in subsection (b)(1)(B), by striking ‘‘$2 per 

7 acre’’ and inserting ‘‘$4 per acre’’; 

8 (2) in subsection (b)(2)(C), by striking ‘‘$2 per 

9 acre’’ and inserting ‘‘$5 per acre’’; 

10 (3) in subsection (d)— 

11 (A) by striking ‘‘$1.50 per acre’’ and in12 serting ‘‘$3 per acre’’; and 

13 (B) by striking ‘‘$2 per acre’’ and insert14 ing ‘‘$4 per acre’’; and 

15 (4) by adding at the end the following: 

16 ‘‘(q) INFLATION ADJUSTMENT.— 

17 ‘‘(1) IN GENERAL.—The Secretary shall— 

18 ‘‘(A) by regulation, at least once every 4 

19 years, adjust each of the dollar amounts that 

20 applies under subsections (b)(1)(B), (b)(2)(C), 

21 and (d) by the cost-of-living adjustment; and 

22 ‘‘(B) publish each such regulation in the 

23 Federal Register. 

24 ‘‘(2) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) COST-OF-LIVING ADJUSTMENT.—The 

2 term ‘cost-of-living adjustment’ means the per3 centage (if any) for a dollar amount by which— 

4 ‘‘(i) the Consumer Price Index for the 

5 month of June of the calendar year pre6 ceding the adjustment, exceeds 

7 ‘‘(ii) the Consumer Price Index for 

8 the month of June of the calendar year in 

9 which the dollar amount was last set or ad10 justed pursuant to law. 

11 ‘‘(B) CONSUMER PRICE INDEX.—The term 

12 ‘Consumer Price Index’ means the Consumer 

13 Price Index for all urban consumers published 

14 by the Department of Labor.’’. 

15 (b) CONFORMING AMENDMENT.—Section 

16 17(b)(1)(B) of the Mineral Leasing Act (30 U.S.C. 

17 226(b)(1)(B)) is amended beginning in the first sentence 

18 by striking ‘‘for a period’’ and all that follows through 

19 ‘‘Thereafter, the’’ and inserting ‘‘. The’’. 

20 SEC. 3. AMENDMENT OF ROYALTY RATES. 

21 (a) ROYALTY RATES.—Section 17 of the Mineral 

22 Leasing Act (30 U.S.C. 226) is amended— 

23 (1) by striking ‘‘12.5’’ each place such term ap24 pears and inserting ‘‘18.75’’; and 


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(2) by striking ‘‘121 1 ⁄2’’ each place such term 

2 appears and inserting ‘‘18.75’’. 

3 (b) APPLICATION.—The amendments made by sub4 section (a) shall apply only to new leases issued on or after 

5 the date of enactment of this Act. 

6 SEC. 4. ON-SHORE FEDERAL OIL AND GAS ROYALTY SHAR7 ING. 

8 (a) IN GENERAL.—Section 35 of the Mineral Leasing 

9 Act (30 U.S.C. 191) is amended— 

10 (1) by striking ‘‘SEC. 35. (a)’’ and all that fol11 lows through ‘‘50 per centum thereof’’ and inserting 

12 the following: 

13 ‘‘SEC. 35. ON-SHORE OIL AND GAS ROYALTY SHARING. 

14 ‘‘(a) ROYALTY SHARING.— 

15 ‘‘(1) IN GENERAL.—Of the amounts received by 

16 the United States from sales, bonuses, and royalties, 

17 including interest charges collected under the Fed18 eral Oil and Gas Royalty Management Act of 1982, 

19 and from rentals of the public lands in Alaska under 

20 the provisions of this Act and the Geothermal Steam 

21 Act of 1970— 

22 ‘‘(A) 33.33 percent shall be used as de23 scribed in paragraph (2); and 

24 ‘‘(B) the remainder shall be used as de25 scribed in paragraph (3). 


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1 ‘‘(2) DISTRIBUTION OF 33.33 PERCENT.— 

2 ‘‘(A) IN GENERAL.—Of the amount re3 ferred to in paragraph (1)(A)— 

4 ‘‘(i) 30 percent, but not to exceed 

5 $50,000,000 per fiscal year, shall be trans6 ferred by the Secretary of the Treasury to 

7 the Bureau of Land Management for use 

8 for oil and gas inspection and enforcement; 

9 ‘‘(ii) 15 percent, but not to exceed 

10 $25,000,000 per fiscal year, shall be avail11 able to the Secretary of the Interior to re12 mediate, reclaim, and properly plug and 

13 abandon orphan oil and gas wells on Fed14 eral lands; 

15 ‘‘(iii) 45 percent shall be paid by the 

16 Secretary of the Treasury to the State 

17 within the boundaries of which the leased 

18 land is located or the deposits were de19 rived, for use by such State in accordance 

20 with paragraph (3); and 

21 ‘‘(iv) the remainder shall be deposited 

22 into the Treasury as miscellaneous re23 ceipts. 


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1 ‘‘(B) ADMINISTRATION.—Amounts to be 

2 paid or available under clauses (i), (ii), and (iii) 

3 of subparagraph (A) shall— 

4 ‘‘(i) be available without further ap5 propriation; and 

6 ‘‘(ii) remain available until expended. 

7 ‘‘(3) DISTRIBUTION OF REMAINDER.—Of the 

8 amount referred to in paragraph (1)(B), and subject 

9 to subsection (b), 50 per centum thereof’’; and 

10 (2) in subsection (a), by striking ‘‘All moneys 

11 received’’ and inserting the following: 

12 ‘‘(4) GENERAL PROVISIONS.—All moneys re13 ceived’’. 

14 (b) CONFORMING AMENDMENT.—Section 35(c)(1) of 

15 the Mineral Leasing Act (30 U.S.C. 191(c)(1)) is amended 

16 by striking ‘‘the first sentence of’’. 

17 (c) LIMITATIONS ON APPLICATION.—The amend18 ments made by subsection (a)— 

19 (1) shall apply only to amounts received by the 

20 United States under new leases issued on or after 

21 the date of enactment of this Act; and 

22 (2) shall not affect the application of section 

23 35(a) of the Mineral Leasing Act (30 U.S.C. 191(a)) 

24 to amounts received by the United States before the 


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1 first fiscal year beginning after the date of the en2 actment of this Act. 

Æ 


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