```

[House Report 115-921]
[From the U.S. Government Publishing Office]

115th Congress    }                                 {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                 {         115-921

======================================================================

 
     STREAMLINING PERMITTING EFFICIENCIES IN ENERGY DEVELOPMENT ACT

                                _______
                                

 September 6, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Bishop of Utah, from the Committee on Natural Resources, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 6088]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 6088) to amend the Mineral Leasing Act to 
authorize notifications of permit to drill, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Streamlining Permitting Efficiencies 
in Energy Development Act'' or the ``SPEED Act''.

SEC. 2. NOTIFICATIONS OF PERMIT TO DRILL.

  The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by--
          (1) redesignating section 44 as section 45; and
          (2) inserting after section 43 the following:

``SEC. 44. NOTIFICATIONS OF PERMIT TO DRILL.

  ``(a) In General.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall establish procedures by 
which an operator may conduct drilling and production activities on 
available Federal land and non-Federal land after sending to the 
Secretary a notification of permit to drill under this section in lieu 
of obtaining an APD.
  ``(b) Content of Notification.--To be considered a complete 
notification of permit to drill under this section, an operator shall 
include in the notification of permit to drill submitted under this 
section--
          ``(1) a notification of permit to drill form;
          ``(2) a surface use plan of operations;
          ``(3) a drilling plan;
          ``(4) a well plat certified by a registered surveyor;
          ``(5) an operator certification;
          ``(6) evidence of bond coverage; and
          ``(7) a notification of permit to drill fee in an amount to 
        be determined by the Secretary.
  ``(c) Justifications for Objection.--
          ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary may not object to a notification of 
        permit to drill under this section if the notification--
                  ``(A) demonstrates that the drilling operations 
                described in the notification of permit to drill will 
                be located in--
                          ``(i) a developed field, where there are 
                        existing oil and gas wells within a 5-mile 
                        radius and for which an approved land use plan 
                        or environmental review was prepared within the 
                        last 10 years under the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
                        that analyzed such drilling operations as a 
                        reasonably foreseeable activity;
                          ``(ii) a location or well pad site at which 
                        drilling has occurred within 10 years before 
                        the date of spudding the well and the proposed 
                        operations do not increase the surface 
                        disturbance on the location or well pad site;
                          ``(iii) an area consisting of individual 
                        surface disturbances of less than 10 acres and 
                        the total surface disturbance on the lease is 
                        not greater than 150 acres and for which an 
                        approved land use plan or environmental review 
                        was prepared within the last 10 years under the 
                        National Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.) that analyzed such 
                        drilling operations as a reasonably foreseeable 
                        activity;
                          ``(iv) an area consisting of Federal mineral 
                        interests that is located within the boundaries 
                        of a communitization agreement or unit 
                        agreement which contains minerals leased by a 
                        State or private mineral owner for which a 
                        drilling permit has been approved by a State 
                        regulatory agency; or
                          ``(v) an area in which a categorical 
                        exclusion under the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
                        applies for oil and gas drilling or re-entry 
                        activities; or
                  ``(B) includes--
                          ``(i) an environmental review that concludes 
                        that actions described in the notification of 
                        permit to drill pose no significant effects on 
                        the human environment or threatened or 
                        endangered species; and
                          ``(ii) an archeological review that concludes 
                        that actions described in the notification of 
                        permit to drill pose no significant effects on 
                        cultural or historic properties or resources.
          ``(2) Endangered species protection.--
                  ``(A) In general.--Notwithstanding paragraph (1), the 
                Secretary shall object to a notification of permit to 
                drill if the activity described in such notification of 
                permit to drill is likely to jeopardize the continued 
                existence of a species that is a threatened species or 
                endangered species under the Endangered Species Act of 
                1973 (16 U.S.C. 1531 et seq.) or result in the 
                destruction or adverse modification of critical habitat 
                of such species.
                  ``(B) Withdrawal of objection.--The Secretary may 
                withdraw an objection under subparagraph (A) if the 
                operator consults with the Secretary on such objection 
                and places conditions on the notification of permit to 
                drill sufficient to comply with the Endangered Species 
                Act of 1973 (16 U.S.C. 1531 et seq.).
          ``(3) National historic preservation.--
                  ``(A) In general.--Notwithstanding paragraph (1), the 
                Secretary shall object to a notification of permit to 
                drill if the activity described in such notification of 
                permit to drill is likely to affect properties listed, 
                or eligible for listing, in the National Register of 
                Historic Places under section 306108 of title 54, 
                United States Code (commonly known as the National 
                Historic Preservation Act of 1966).
                  ``(B) Withdrawal of objection.--The Secretary may 
                withdraw an objection under subparagraph (A) if the 
                operator consults with the Secretary on such objection 
                and places conditions on the notification of permit to 
                drill sufficient to comply with section 306108 of title 
                54, United States Code (commonly known as the National 
                Historic Preservation Act of 1966).
  ``(d) Objection or No Action.--
          ``(1) Notification of incomplete notification.--Not later 
        than 15 days after receipt of a notification of permit to 
        drill, or a revised notification of permit to drill, from an 
        operator under this section, the Secretary shall notify the 
        operator in writing if the notification of permit to drill is 
        not complete.
          ``(2) Notification of objections.--Not later than 45 days 
        after receipt of a complete notification of permit to drill 
        from an operator under this section, the Secretary shall review 
        the notification of permit to drill and--
                  ``(A) notify the operator in writing of any 
                objections to the notification of permit to drill; or
                  ``(B) take no action.
          ``(3) No action required.--If the Secretary has not notified 
        an operator under either paragraph (1) or paragraph (2) within 
        45 days after receipt of a notification of permit to drill from 
        the operator under this section, the operator may, without 
        further action from the Secretary, conduct the drilling and 
        production activities for which the notification of permit to 
        drill was submitted.
          ``(4) Opportunity to resubmit notification.--If the Secretary 
        notifies an operator under paragraph (1) of an incomplete 
        notification or paragraph (2) of an objection, the Secretary 
        shall allow the operator to address such incomplete 
        notification or objection and revise and resubmit the 
        notification of permit to drill.
          ``(5) Opportunity to resubmit notification as apd.--If the 
        Secretary notifies an operator under paragraph (2) of an 
        objection, the Secretary shall allow the operator to resubmit 
        such information in the form of an APD.
  ``(e) Notification Fee.--The Secretary may not charge an operator 
under this section a fee for submitting a notification of permit to 
drill greater than the fee the Secretary charges an applicant for an 
APD.
  ``(f) Environmental Review.--
          ``(1) In general.--An environmental review or archeological 
        review described in subsection (c)(1)(B) may be completed by a 
        third-party contractor approved by the Secretary or pursuant to 
        a memorandum of understanding between the operator and the 
        Secretary.
          ``(2) Field work authorization.--The Secretary shall issue a 
        field work authorization to a third-party contractor for the 
        purposes of paragraph (1) within a reasonable time.
          ``(3) Request for concurrence.--The Secretary shall allow a 
        third-party contractor to submit a request to the State 
        Historic Preservation Office on behalf of the Secretary.
  ``(g) Additional Surface Use Permits.--The Secretary may not require 
an operator that has submitted a notification of permit to drill for 
which the Secretary did not object to obtain a surface use permit for 
an action included in the notification of permit to drill.
  ``(h) Site Inspection.--The Secretary may not require an operator 
that has submitted a notification of permit to drill for which the 
Secretary did not object to submit to a site inspection before 
commencement of the activities described in the notification of permit 
to drill.
  ``(i) Federal Enforcement.--The Secretary may conduct inspections of 
and evaluate activities described in a notification of permit to drill 
for purposes of bringing an enforcement action. The Secretary may 
suspend enforcement proceedings if the operator modifies its activities 
to comply with the notification of permit to drill or obtains an APD 
for such activities.
  ``(j) Application of NEPA.--
          ``(1) No action by secretary.--The decision by the Secretary 
        to take no action under subsection (c)(1)(B)(2) shall not 
        constitute a major Federal action under section 102(2)(C) of 
        the National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)).
          ``(2) Development of regulations.--The development of any 
        regulation pursuant to this section shall constitute a major 
        Federal action under section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
  ``(k) Definitions.--In this section:
          ``(1) APD.--The term `APD' means an application to drill or 
        re-enter a well.
          ``(2) Available federal land.--The term `available Federal 
        land' means 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;
                  ``(C) is not a unit of the National Park System;
                  ``(D) is not a unit of the National Wildlife Refuge 
                System;
                  ``(E) is not a Congressionally-approved wilderness 
                area under the Wilderness Act (16 U.S.C. 1131 et seq.); 
                and
                  ``(F) is managed by the Director of the Bureau of 
                Land Management or the Chief of the U.S. Forest 
                Service.
          ``(3) Drilling operations.--The term `drilling operations' 
        means the drilling or re-entry of a well.
          ``(4) Drilling plan.--The term `drilling plan' means a plan 
        containing--
                  ``(A) a description of the drilling program;
                  ``(B) the surface and projected completion zone 
                location;
                  ``(C) pertinent geologic data;
                  ``(D) expected hazards;
                  ``(E) proposed mitigation measures to address such 
                hazards;
                  ``(F) any other information specified in applicable 
                notices or orders; and
                  ``(G) any other pertinent data as the Secretary may 
                require.
          ``(5) Surface use plan of operation.--The term `surface use 
        plan of operation' means a plan containing--
                  ``(A) the road and drill pad location;
                  ``(B) details of pad construction;
                  ``(C) methods for containment and disposal of waste 
                material;
                  ``(D) plans for reclamation of the surface;
                  ``(E) any other information specified in applicable 
                orders or notices; and
                  ``(F) any other pertinent data as the Secretary may 
                require.''.

                          Purpose of the Bill

    The purpose of H.R. 6088 is to amend the Mineral Leasing 
Act to authorize notifications of permit to drill.

                  Background and Need for Legislation

    Under the Mineral Leasing Act (30 U.S.C. 181 et seq.), oil 
and gas operators are required to submit an application for 
permit to drill (APD) for drilling activities on federal 
lands.\1\ Due to extensive regulatory requirements and lengthy 
environmental reviews under the National Environmental Policy 
Act of 1969 (NEPA, 42 U.S.C. 4321 et seq.), the Bureau of Land 
Management (BLM) has accumulated a significant backlog of APDs, 
some of which have been pending for a year or more.\2\ In fact, 
in 2017, BLM processed APDs in an average of 260 days.\3\ By 
comparison, States with oil and gas regulatory programs process 
drilling permits for activities on State and private land in an 
average of 30 days.\4\
---------------------------------------------------------------------------
    \1\30 U.S.C. 181.
    \2\Letter from Brian Steed, Deputy Director of Policy and Programs, 
Department of the Interior, to Senator Mike Enzi, February 26, 2018.
    \3\Bureau of Land Management. Oil and Gas Statistics. https://
www.blm.gov/programs/energy-and-minerals/oil-and-gas/oil-and-gas-
statistics.
    \4\Western Energy Alliance. Knowledge Center. Onshore Development. 
https://www.westernenergyalliance.org/knowledge-center/land/onshore-
development/permitting.
---------------------------------------------------------------------------
    Under the Mineral Leasing Act, the Department of the 
Interior must evaluate the surface impacts of drilling 
activities proposed in APDs before approval.\5\ BLM must 
analyze the surface use plan and drilling plan submitted in 
each application and determine the potential impacts of 
proposed drilling activities on endangered or threatened 
species, cultural artifacts, historic sites and the human 
environment. While certain drilling activities have greater 
environmental impacts than others, each application is subject 
to review by BLM under NEPA. Some drilling activities may have 
a very insignificant impact on the environment, yet 
applications for their approval must wait in line behind other 
applications that require extensive environmental review and 
analysis.
---------------------------------------------------------------------------
    \5\30 U.S.C. 181.
---------------------------------------------------------------------------
    This legislation would authorize a permitting program 
tailored to the approval of drilling operations that would have 
little or no environmental impact. Under this program, an oil 
and gas operator could submit a notification of permit to drill 
(NPD) in lieu of an APD if the proposed drilling activities 
meet certain criteria and do not pose environmental risk. This 
bill establishes criteria that each NPD must meet. If an NPD 
meets all the statutory and regulatory requirements, BLM does 
not need to take further action to approve the permit once 
submitted, as approval is granted by meeting the requirements 
set forth in statute. BLM will not be required to conduct any 
site inspections or environmental review under NEPA for 
individual NPDs submitted by operators.
    This legislation will streamline the federal oil and gas 
permitting process by allowing BLM to expedite the approval of 
drilling activities that pose little or no environmental harm. 
The authorization of an NPD program will reduce the time and 
personnel needed to approve such drilling operations, allowing 
BLM to prioritize its limited resources on reviewing activities 
that have a larger environmental footprint.
    Specifically, H.R. 6088 amends the Mineral Leasing Act to 
authorize an NPD program. Operators or lessees may submit an 
NPD for drilling and production activities on exploratory, 
development and service wells on federal oil and gas leases in 
lieu of an APD, if applicable. An applicant must include 
similar information required by the APD process, as well as any 
other information required by order, notice or regulation 
issued by the Secretary of the Interior. To be considered for 
the NPD process, an applicant must either demonstrate that the 
proposed drilling operations are located in a developed field 
for which an approved land use plan or recent NEPA analysis 
exists; operations do not increase the surface disturbance at 
the proposed site; the proposed operations will impact less 
than ten acres so long as the total surface disturbance of a 
lease is less than 150 acres and for which an approved land use 
plan or NEPA analysis exists; the proposed activity is within 
the boundaries of a communitization or unit agreement 
containing minerals leased by a State or private mineral owner 
for which a State regulatory body has approved a permit; or a 
NEPA categorical exclusion applies. Alternatively, the NPD can 
include an environmental review concluding the actions 
authorized under the NPD pose no significant effects under NEPA 
to threatened or endangered species or cultural or historic 
properties or resources. Such environmental and archaeological 
reviews may be completed by third-party contractors pre-
approved by BLM.
    Upon receipt of an NPD, the Secretary of the Interior has 
15 days to inform the applicant if the NPD is incomplete. If 
the Secretary finds that a completed NPD does not sufficiently 
meet the criteria listed above, the Secretary may issue 
objections to an NPD and the operator may respond to resolve 
any objections.
    After receiving a completed NPD, the Secretary has 45 days 
to issue any written objections to the NPD. If no objections 
are issued, drilling and production activities described in the 
NPD can commence without further approval from the Secretary. 
Upon receipt of any written objections, the applicant may 
resubmit the NPD or resubmit such information as an APD.
    The Secretary may object to an NPD if it is likely that the 
proposed actions therein will jeopardize the continued 
existence of a threatened or endangered species listed under 
the Endangered Species Act of 1973 (ESA, 16 U.S.C. 1531 et 
seq.) or cause harm to cultural artifacts or sites protected 
under the National Historic Preservation Act (NHPA, 54 U.S.C. 
300101 et seq.). The Secretary may require consultations under 
ESA or NHPA and attach conditions to an NPD based on those 
consultations.
    Unlike the approval process for APDs, the Secretary may not 
require site inspections for NPDs. However, the Secretary may 
conduct inspections of and evaluate activities authorized by 
any NPD for enforcement action.
    The Secretary may not require any additional surface use 
permits for actions authorized under an NPD.
    Individual NPDs will not be subject to further analysis 
under NEPA, but the development of any regulations pursuant to 
this legislation shall be considered a major federal action 
under NEPA.

                            Committee Action

    H.R. 6088 was introduced on June 13, 2018, by Congressman 
John R. Curtis (R-UT). The bill was referred to the Committee 
on Natural Resources. The Subcommittee on Energy and Mineral 
Resources held a hearing on a draft version of this bill on 
June 6, 2018. On June 20, 2018, the Natural Resources Committee 
met to consider the bill. Congressman Curtis offered an 
amendment designated #1; it was adopted by voice vote. 
Congressman Raul M. Grijalva (D-AZ) offered an amendment 
designated 001; it was not adopted by a roll call vote of 18 
ayes and 21 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    The Committee adjourned before completing action on the 
bill. On June 27, 2018, the Committee met to again consider the 
bill. Congressman Rob Bishop (R-UT) offered an amendment 
designated #1; it was adopted by voice vote. Congressman Raul 
M. Grijalva (D-AZ) offered another amendment designated 001; it 
was not adopted by a roll call vote of 11 ayes and 17 nays, as 
follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Congressman A. Donald McEachin (D-VA) offered an amendment 
designated 003; it was not adopted by a roll call vote of 12 
ayes and 18 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Congressman Jared Huffman (R-CA) offered an amendment 
designated 154; it was not adopted by a roll call vote of 12 
ayes and 18 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    No additional amendments were offered, and the bill, as 
amended, was ordered favorably reported to the House of 
Representatives by a roll call vote of 18 ayes and 12 nays, as 
follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 30, 2018.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6088, the SPEED 
Act.
    If you wish further details on this estimate, we will be 
pleased to provide them, The CBO staff contact is Jeff LaFave.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 6088--SPEED Act

    Summary: H.R. 6088 would require the Bureau of Land 
Management (BLM) to allow oil and gas producers to perform 
certain drilling activities on federal lands by obtaining a 
notification for permit to drill (NPD) in lieu of an 
application for permit to drill (APD). BLM could approve NPDs 
without completing the site inspections or environmental 
reviews that are required for APDs. When submitting an NPD, oil 
and gas producers would pay a fee that CBO expects would be the 
same as the fee for an APD. However, unlike with APDs, the 
agency would not have the same authority to spend those fees.
    CBO estimates that enacting H.R. 6088 would reduce direct 
spending by $125 million over the 2020-2026 period; therefore, 
pay-as-you-go procedures apply. In addition, CBO estimates that 
implementing the bill would cost $125 million over the 2020-
2026 period, subject to appropriation of the necessary amounts. 
Enacting the bill would not affect revenues.
    CBO estimates that enacting H.R. 6088 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 6088 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 6088 is shown in the following table. 
The costs of the legislation fall within budget function 300 
(natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, in millions of dollars--
                                               ---------------------------------------------------------------------------------------------------------
                                                 2018   2019   2020    2021    2022    2023    2024    2025    2026    2027   2028  2019-2023  2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               DECREASES INDIRECT SPENDING
 
Estimated Budget Authority....................      0      0     -16     -17     -17     -18     -18     -19     -20      0      0       -68       -125
Estimated Outlays.............................      0      0     -16     -17     -17     -18     -18     -19     -20      0      0       -68       -125
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level.................      0      0      16      17      17      18      18      19      20      0      0        68        125
Estimated Outlays.............................      0      0      16      17      17      18      18      19      20      0      0        68        125
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted late in 2018 and that the necessary 
amounts will be appropriated for each fiscal year.

Direct spending

    CBO estimates that enacting H.R. 6088 would reduce direct 
spending by $125 million over the 2020-2026 period.
    Spending of Permit Fees. Under current law, BLM charges oil 
and gas producers a fee to submit an APD, and, over the 2020-
2026 period, the agency will have the authority to spend all 
proceeds from those fees, without further appropriation, to 
administer oil and gas permitting. In 2017, the agency received 
APD fees totaling $31 million. CBO expects that, over the 2020-
2026 period, those fees will range from $33 million to $39 
million and that BLM will spend those amounts annually. The 
agency's authority to charge APD fees expires after 2026.
    Under H.R. 6088, BLM would be required to authorize, within 
one year of enactment, drilling on federal lands by issuing 
NPDs in lieu of APDs for activities that meet certain criteria. 
Using information provided by BLM, CBO expects that about half 
of all permit applicants could operate with NPDs. Because CBO 
expects that the fee to obtain an NPD would be the same as the 
APD fee, total receipts from permits authorizing drilling on 
federal lands would not change. However, because BLM would not 
have the authority to spend NPD fees, CBO estimates that 
enacting the bill would reduce direct spending by an average of 
about $18 million a year over the 2020-2026 period.
    Royalties from Oil and Gas Production. Under the bill, oil 
and gas producers that submitted NPDs would not be required to 
undergo the site inspections or complete the environmental 
analyses that are required for APDs. CBO expects that 
eliminating those requirement could expedite permitting for 
some NPDs. However, using information from BLM, CBO estimates 
that companies that obtained NPDs would be authorized to begin 
drilling operations only a few days sooner than if they had 
obtained APDs for the same activities. In addition, BLM could 
object to certain NPDs, which could lengthen the time required 
to obtain those NPDs beyond that required to obtain APDs for 
the same activities. On net, CBO estimates, enacting the bill 
would have no significant effect on the timing or quantity of 
oil and gas produced on federal lands and would not 
significantly affect royalty payments received by the federal 
government over the 2020-2028 period.

Spending subject to appropriation

    Under current law, over the 2020-2026 period, BLM can 
retain and spend, without further appropriation, all fees paid 
by oil and gas producers for APDs. The agency uses those funds 
to carry out a range of activities that support the processing 
of permits for oil and gas drilling. Because H.R. 6088 would 
reduce the amounts available for those purposes by $125 million 
over the 2020-2026 period, CBO estimates that BLM would need 
that amount to continue to process permits at the same rate as 
under current law. Such spending would be subject to the 
availability of appropriated funds.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

  CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 6088, THE SPEED ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON JUNE 27, 2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, in millions of dollars--
                                               ---------------------------------------------------------------------------------------------------------
                                                 2018   2019   2020    2021    2022    2023    2024    2025    2026    2027   2028  2018-2023  2018-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET DECREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Effect................      0      0     -16     -17     -17     -18     -18     -19     -20      0      0       -68       -125
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 6088 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2029.
    Mandates: H.R. 6088 contains no intergovernmental or 
private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Jeff LaFave, Mandates: 
Jon Sperl.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimating Unit; H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to amend the Mineral Leasing Act to 
authorize notifications of permit to drill.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                       Compliance With H. Res. 5

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                          MINERAL LEASING ACT

           *       *       *       *       *       *       *
SEC. 44. NOTIFICATIONS OF PERMIT TO DRILL.

  (a) In General.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall establish 
procedures by which an operator may conduct drilling and 
production activities on available Federal land and non-Federal 
land after sending to the Secretary a notification of permit to 
drill under this section in lieu of obtaining an APD.
  (b) Content of Notification.--To be considered a complete 
notification of permit to drill under this section, an operator 
shall include in the notification of permit to drill submitted 
under this section--
          (1) a notification of permit to drill form;
          (2) a surface use plan of operations;
          (3) a drilling plan;
          (4) a well plat certified by a registered surveyor;
          (5) an operator certification;
          (6) evidence of bond coverage; and
          (7) a notification of permit to drill fee in an 
        amount to be determined by the Secretary.
  (c) Justifications for Objection.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the Secretary may not object to a 
        notification of permit to drill under this section if 
        the notification--
                  (A) demonstrates that the drilling operations 
                described in the notification of permit to 
                drill will be located in--
                          (i) a developed field, where there 
                        are existing oil and gas wells within a 
                        5-mile radius and for which an approved 
                        land use plan or environmental review 
                        was prepared within the last 10 years 
                        under the National Environmental Policy 
                        Act of 1969 (42 U.S.C. 4321 et seq.) 
                        that analyzed such drilling operations 
                        as a reasonably foreseeable activity;
                          (ii) a location or well pad site at 
                        which drilling has occurred within 10 
                        years before the date of spudding the 
                        well and the proposed operations do not 
                        increase the surface disturbance on the 
                        location or well pad site;
                          (iii) an area consisting of 
                        individual surface disturbances of less 
                        than 10 acres and the total surface 
                        disturbance on the lease is not greater 
                        than 150 acres and for which an 
                        approved land use plan or environmental 
                        review was prepared within the last 10 
                        years under the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4321 et 
                        seq.) that analyzed such drilling 
                        operations as a reasonably foreseeable 
                        activity;
                          (iv) an area consisting of Federal 
                        mineral interests that is located 
                        within the boundaries of a 
                        communitization agreement or unit 
                        agreement which contains minerals 
                        leased by a State or private mineral 
                        owner for which a drilling permit has 
                        been approved by a State regulatory 
                        agency; or
                          (v) an area in which a categorical 
                        exclusion under the National 
                        Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.) applies for oil 
                        and gas drilling or re-entry 
                        activities; or
                  (B) includes--
                          (i) an environmental review that 
                        concludes that actions described in the 
                        notification of permit to drill pose no 
                        significant effects on the human 
                        environment or threatened or endangered 
                        species; and
                          (ii) an archeological review that 
                        concludes that actions described in the 
                        notification of permit to drill pose no 
                        significant effects on cultural or 
                        historic properties or resources.
          (2) Endangered species protection.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the Secretary shall object to a 
                notification of permit to drill if the activity 
                described in such notification of permit to 
                drill is likely to jeopardize the continued 
                existence of a species that is a threatened 
                species or endangered species under the 
                Endangered Species Act of 1973 (16 U.S.C. 1531 
                et seq.) or result in the destruction or 
                adverse modification of critical habitat of 
                such species.
                  (B) Withdrawal of objection.--The Secretary 
                may withdraw an objection under subparagraph 
                (A) if the operator consults with the Secretary 
                on such objection and places conditions on the 
                notification of permit to drill sufficient to 
                comply with the Endangered Species Act of 1973 
                (16 U.S.C. 1531 et seq.).
          (3) National historic preservation.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the Secretary shall object to a 
                notification of permit to drill if the activity 
                described in such notification of permit to 
                drill is likely to affect properties listed, or 
                eligible for listing, in the National Register 
                of Historic Places under section 306108 of 
                title 54, United States Code (commonly known as 
                the National Historic Preservation Act of 
                1966).
                  (B) Withdrawal of objection.--The Secretary 
                may withdraw an objection under subparagraph 
                (A) if the operator consults with the Secretary 
                on such objection and places conditions on the 
                notification of permit to drill sufficient to 
                comply with section 306108 of title 54, United 
                States Code (commonly known as the National 
                Historic Preservation Act of 1966).
  (d) Objection or No Action.--
          (1) Notification of incomplete notification.--Not 
        later than 15 days after receipt of a notification of 
        permit to drill, or a revised notification of permit to 
        drill, from an operator under this section, the 
        Secretary shall notify the operator in writing if the 
        notification of permit to drill is not complete.
          (2) Notification of objections.--Not later than 45 
        days after receipt of a complete notification of permit 
        to drill from an operator under this section, the 
        Secretary shall review the notification of permit to 
        drill and--
                  (A) notify the operator in writing of any 
                objections to the notification of permit to 
                drill; or
                  (B) take no action.
          (3) No action required.--If the Secretary has not 
        notified an operator under either paragraph (1) or 
        paragraph (2) within 45 days after receipt of a 
        notification of permit to drill from the operator under 
        this section, the operator may, without further action 
        from the Secretary, conduct the drilling and production 
        activities for which the notification of permit to 
        drill was submitted.
          (4) Opportunity to resubmit notification.--If the 
        Secretary notifies an operator under paragraph (1) of 
        an incomplete notification or paragraph (2) of an 
        objection, the Secretary shall allow the operator to 
        address such incomplete notification or objection and 
        revise and resubmit the notification of permit to 
        drill.
          (5) Opportunity to resubmit notification as apd.--If 
        the Secretary notifies an operator under paragraph (2) 
        of an objection, the Secretary shall allow the operator 
        to resubmit such information in the form of an APD.
  (e) Notification Fee.--The Secretary may not charge an 
operator under this section a fee for submitting a notification 
of permit to drill greater than the fee the Secretary charges 
an applicant for an APD.
  (f) Environmental Review.--
          (1) In general.--An environmental review or 
        archeological review described in subsection (c)(1)(B) 
        may be completed by a third-party contractor approved 
        by the Secretary or pursuant to a memorandum of 
        understanding between the operator and the Secretary.
          (2) Field work authorization.--The Secretary shall 
        issue a field work authorization to a third-party 
        contractor for the purposes of paragraph (1) within a 
        reasonable time.
          (3) Request for concurrence.--The Secretary shall 
        allow a third-party contractor to submit a request to 
        the State Historic Preservation Office on behalf of the 
        Secretary.
  (g) Additional Surface Use Permits.--The Secretary may not 
require an operator that has submitted a notification of permit 
to drill for which the Secretary did not object to obtain a 
surface use permit for an action included in the notification 
of permit to drill.
  (h) Site Inspection.--The Secretary may not require an 
operator that has submitted a notification of permit to drill 
for which the Secretary did not object to submit to a site 
inspection before commencement of the activities described in 
the notification of permit to drill.
  (i) Federal Enforcement.--The Secretary may conduct 
inspections of and evaluate activities described in a 
notification of permit to drill for purposes of bringing an 
enforcement action. The Secretary may suspend enforcement 
proceedings if the operator modifies its activities to comply 
with the notification of permit to drill or obtains an APD for 
such activities.
  (j) Application of NEPA.--
          (1) No action by secretary.--The decision by the 
        Secretary to take no action under subsection 
        (c)(1)(B)(2) shall not constitute a major Federal 
        action under section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)).
          (2) Development of regulations.--The development of 
        any regulation pursuant to this section shall 
        constitute a major Federal action under section 
        102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C)).
  (k) Definitions.--In this section:
          (1) APD.--The term ``APD'' means an application to 
        drill or re-enter a well.
          (2) Available federal land.--The term ``available 
        Federal land'' means 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;
                  (C) is not a unit of the National Park 
                System;
                  (D) is not a unit of the National Wildlife 
                Refuge System;
                  (E) is not a Congressionally-approved 
                wilderness area under the Wilderness Act (16 
                U.S.C. 1131 et seq.); and
                  (F) is managed by the Director of the Bureau 
                of Land Management or the Chief of the U.S. 
                Forest Service.
          (3) Drilling operations.--The term ``drilling 
        operations'' means the drilling or re-entry of a well.
          (4) Drilling plan.--The term ``drilling plan'' means 
        a plan containing--
                  (A) a description of the drilling program;
                  (B) the surface and projected completion zone 
                location;
                  (C) pertinent geologic data;
                  (D) expected hazards;
                  (E) proposed mitigation measures to address 
                such hazards;
                  (F) any other information specified in 
                applicable notices or orders; and
                  (G) any other pertinent data as the Secretary 
                may require.
          (5) Surface use plan of operation.--The term 
        ``surface use plan of operation'' means a plan 
        containing--
                  (A) the road and drill pad location;
                  (B) details of pad construction;
                  (C) methods for containment and disposal of 
                waste material;
                  (D) plans for reclamation of the surface;
                  (E) any other information specified in 
                applicable orders or notices; and
                  (F) any other pertinent data as the Secretary 
                may require.

SEC. [44.]  45. SHORT TITLE.

  This Act may be cited as the ``Mineral Leasing Act''.

                            DISSENTING VIEWS

    H.R. 6088 is another in a series of Republican bills 
designed to make drilling for oil and gas on public land easier 
and cheaper for large corporations by weakening protections for 
our air, water, and land, and keeping the public in the dark.
    Despite the repeated inaccurate claims from the Majority, 
oil and gas companies have had no problems receiving drilling 
permits from the Bureau of Land Management (BLM). Companies 
hold over 7,200 approved permits that they have not used, the 
number of permits waiting to be reviewed is lower than at any 
point in the previous twelve years, and BLM's new permit 
processing system has brought the review time for drilling 
permits to under 60 days. For the Majority, it seems, this is 
not fast enough.
    This bill would attempt to speed permit processing by 
eliminating the need for BLM to process most permits at all, 
replacing that review with a vague notification system that 
would allow companies to avoid public and environmental 
scrutiny of their drilling plans. While the Secretary has the 
authority to object to these new ``Notifications for Permits to 
Drill'' (NPD) within 45 days, the bill is designed to tie the 
Secretary of the Interior's hands and forbid such objections in 
nearly all cases.
    First, the bill lays out five very broad drilling 
situations in which objections would be forbidden, including up 
to 150 acres of new well pads in entirely undeveloped regions 
as long as oil and gas drilling was considered to be a 
reasonably foreseeable activity in a land use plan approved in 
the last 10 years. Land use plans cover huge areas, typically 
millions of acres, and reasonably foreseeable development 
scenarios look at potential region-wide impacts, not specific 
impacts where wells will actually be drilled or roads will 
actually be built. The fact that NPDs would be allowed for new 
well pads of up to 10 acres provides incentives for companies 
to use multiple smaller pads instead of one potentially larger 
pad, greatly increasing the potential impacts on the surface.
    Second, even if the NPD does not fall under one of those 
five situations, the Secretary would be unable to object if the 
operator submits an ``environmental review'' and an 
``archeological review,'' but there are no standards in the 
bill for what those reviews must include.
    In all of these cases, there is no requirement that the 
public be informed about the drilling plans, nor any way for 
the public to comment on them. There is also no way for the BLM 
to meet its obligation to manage the land for multiple uses, 
meaning that hiking, fishing, camping, grazing, recreation, 
conservation, and other uses of public land will all be at the 
mercy of oil and gas companies seeking to drill.
    The only amendment adopted at markup, offered by Chairman 
Bishop, made the bill worse by removing the ability for the 
Secretary to require additional information from drilling 
companies. Democratic amendments to require additional 
information on the impact of the bill, tariffs, and oil exports 
on gas prices, as well as potential conflicts of interest 
between companies and the Secretary, were defeated by the 
Majority.
    H.R. 6088 will do nothing to help American consumers, but 
will allow oil and gas companies operating on public land to 
avoid public scrutiny and environmental protection 
requirements. This legislation seems to be based on the adage 
that it is easier to seek forgiveness than to ask permission. 
Unfortunately, the permanent alteration of pristine landscapes, 
or the lasting damage from spills and blowouts in fragile 
areas, cannot be forgiven. For those reasons and more, we 
strongly oppose this legislation.

                                   Raul M. Grijalva,
                                           Ranking Member, Committee on 
                                               Natural Resources.
                                   Nydia M. Velazquez.
                                   A. Donald McEachin.

                                  [all]
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