II 

117TH CONGRESS 

1ST SESSION S. 2962 

To amend the Mineral Leasing Act to ensure market competition in onshore 

oil and gas leasing, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 7, 2021 

Mr. HICKENLOOPER (for himself, Mr. HEINRICH, and Ms. ROSEN) introduced 

the following bill; which was read twice and referred to the Committee 

on Energy and Natural Resources 

A BILL 

To amend the Mineral Leasing Act to ensure market competition in onshore oil and gas leasing, and for other 

purposes. 

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 ‘‘Competitive Onshore 

5 Mineral Policy via Eliminating Taxpayer-Enabled Specu6 lation Act’’ or the ‘‘COMPETES Act’’. 


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1 SEC. 2. STATEMENT OF POLICY. 

2 It is the policy of the United States that the Sec3 retary of the Interior shall not issue onshore oil and gas 

4 leases except through a competitive bidding process. 

5 SEC. 3. ELIMINATION OF NONCOMPETITIVE LEASING 

6 UNDER THE MINERAL LEASING ACT. 

7 (a) OIL AND GAS LEASING.—Section 17 of the Min8 eral Leasing Act (30 U.S.C. 226) is amended— 

9 (1) by striking subsection (a) and inserting the 

10 following: 

11 ‘‘(a) LEASING AUTHORITY.— 

12 ‘‘(1) IN GENERAL.—All land subject to disposi13 tion under this Act that is known or believed to con14 tain oil or gas deposits may be leased by the Sec15 retary. 

16 ‘‘(2) RECEIPT OF FAIR MARKET VALUE.—In 

17 conducting leasing activities under this Act, the Sec18 retary shall ensure the receipt by the United States 

19 of fair market value for— 

20 ‘‘(A) any land or resources leased by the 

21 United States; and 

22 ‘‘(B) any rights conveyed by the United 

23 States.’’; 

24 (2) in subsection (b)— 

25 (A) in paragraph (1)(A)— 


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1 (i) in the first sentence, by striking 

2 ‘‘paragraphs (2) and (3) of this sub3 section’’ and inserting ‘‘paragraph (2)’’; 

4 and 

5 (ii) by striking the last sentence; and 

6 (B) by striking paragraph (3); 

7 (3) by striking subsection (c) and inserting the 

8 following: 

9 ‘‘(c) ADDITIONAL ROUNDS OF COMPETITIVE BID10 DING.—Land made available for leasing under subsection 

11 (b)(1) for which no bid is accepted or received, or the land 

12 for which a lease terminates, expires, is cancelled, or is 

13 relinquished, may be made available by the Secretary of 

14 the Interior for a new round of competitive bidding under 

15 that subsection.’’; and 

16 (4) by striking subsection (e) and inserting the 

17 following: 

18 ‘‘(e) TERM OF LEASE.— 

19 ‘‘(1) IN GENERAL.—Any lease issued under this 

20 section, including a lease for tar sand areas, shall be 

21 for a primary term of 10 years. 

22 ‘‘(2) CONTINUATION OF LEASE.—A lease de23 scribed in paragraph (1) shall continue after the pri24 mary term of the lease for any period during which 

25 oil or gas is produced in paying quantities. 


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1 ‘‘(3) ADDITIONAL EXTENSIONS.—Any lease 

2 issued under this section for land on which, or for 

3 which under an approved cooperative or unit plan of 

4 development or operation, actual drilling operations 

5 were commenced prior to the end of the primary 

6 term of the lease and are being diligently prosecuted 

7 at the time the primary term of the lease ends shall 

8 be extended for 2 years and for any period there9 after during which oil or gas is produced in paying 

10 quantities.’’. 

11 (b) CONFORMING AMENDMENTS.—Section 31 of the 

12 Mineral Leasing Act (30 U.S.C. 188) is amended— 

13 (1) in subsection (d)(1), in the first sentence, 

14 by striking ‘‘or section 17(c) of this Act’’; 

15 (2) in subsection (e)— 

16 (A) in paragraph (2)— 

17 (i) by striking ‘‘either’’; and 

18 (ii) by striking ‘‘or the inclusion’’ and 

19 all that follows through ‘‘, all’’; and 

20 (B) in paragraph (3)— 

21 (i) in subparagraph (A), by adding 

22 ‘‘and’’ after the semicolon; 

23 (ii) by striking subparagraph (B); and 

24 (iii) by striking ‘‘(3)(A) payment’’ and 

25 inserting the following: 


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1 ‘‘(3) payment’’; 

2 (3) in subsection (g)— 

3 (A) in paragraph (1), by striking ‘‘as a 

4 competitive’’ and all that follows through ‘‘of 

5 this Act’’ and inserting ‘‘in the same manner as 

6 the original lease issued pursuant to section 

7 17’’; 

8 (B) by striking paragraph (2); 

9 (C) by redesignating paragraphs (3) and 

10 (4) as paragraphs (2) and (3), respectively; and 

11 (D) in paragraph (2) (as so redesignated), 

12 by striking ‘‘applicable to leases issued under 

13 subsection 17(c) of this Act (30 U.S.C. 226(c)) 

14 except,’’ and inserting ‘‘except’’; 

15 (4) in subsection (h), by striking ‘‘subsections 

16 (d) and (f) of this section’’ and inserting ‘‘subsection 

17 (d)’’; 

18 (5) in subsection (i), by striking ‘‘(i)(1) In act19 ing’’ and all that follows through ‘‘of this section’’ 

20 in paragraph (2) and inserting the following: 

21 ‘‘(i) ROYALTY REDUCTION IN REINSTATED

22 LEASES.—In acting on a petition for reinstatement pursu23 ant to subsection (d)’’; 

24 (6) by striking subsection (f); and 


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1 (7) by redesignating subsections (g) through (j) 

2 as subsections (f) through (i), respectively. 

Æ 


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