Ensuring the Taxpayer a Fair Return for Federal Onshore Oil and Gas Resources Act of 2015

To amend the Mineral Leasing Act to ensure fair returns for Federal onshore oil and gas resources. 1. Short Title This Act may be cited as the Ensuring the Taxpayer a Fair Return for Federal Onshore Oil and Gas Resources Act of 2015 2. Adjustment of minimum bids and annual rentals for oil and gas and tar sands leases to reflect inflation (a) In general Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 (1) in subsection (b)(1)(B), by striking $2 per acre $4 per acre (2) in subsection (b)(2)(C), by striking $2 per acre $5 per acre (3) in subsection (d)— (A) by striking $1.50 per acre $3 per acre (B) by striking $2 per acre $4 per acre (4) by adding at the end the following: (q) Inflation adjustment (1) In general The Secretary shall— (A) by regulation, at least once every 4 years, adjust each of the dollar amounts that applies under subsections (b)(1)(B), (b)(2)(C), and (d) by the cost-of-living adjustment; and (B) publish each such regulation in the Federal Register. (2) Definitions In this subsection: (A) Cost-of-living adjustment The term cost-of-living adjustment (i) the Consumer Price Index for the month of June of the calendar year preceding the adjustment, exceeds (ii) the Consumer Price Index for the month of June of the calendar year in which the dollar amount was last set or adjusted pursuant to law. (B) Consumer Price Index The term Consumer Price Index . (b) Conforming amendment Section 17(b)(1)(B) of the Mineral Leasing Act ( 30 U.S.C. 226(b)(1)(B) for a period Thereafter, the . The 3. Amendment of Royalty Rates (a) Royalty Rates Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 (1) by striking 12.5 18.75 (2) by striking 12 1/2 18.75 (b) Application The amendments made by subsection (a) shall apply only to new leases issued on or after the date of enactment of this Act. 4. On-shore Federal oil and gas royalty sharing (a) In general Section 35 of the Mineral Leasing Act ( 30 U.S.C. 191 (1) by striking S 35 50 per centum thereof 35. On-shore oil and gas royalty sharing (a) Royalty sharing (1) In general Of the amounts received by the United States from sales, bonuses, and royalties, including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982, and from rentals of the public lands in Alaska under the provisions of this Act and the Geothermal Steam Act of 1970— (A) 33.33 percent shall be used as described in paragraph (2); and (B) the remainder shall be used as described in paragraph (3). (2) Distribution of 33.33 percent (A) In general Of the amount referred to in paragraph (1)(A)— (i) 30 percent, but not to exceed $50,000,000 per fiscal year, shall be transferred by the Secretary of the Treasury to the Bureau of Land Management for use for oil and gas inspection and enforcement; (ii) 15 percent, but not to exceed $25,000,000 per fiscal year, shall be available to the Secretary of the Interior to remediate, reclaim, and properly plug and abandon orphan oil and gas wells on Federal lands; (iii) 45 percent shall be paid by the Secretary of the Treasury to the State within the boundaries of which the leased land is located or the deposits were derived, for use by such State in accordance with paragraph (3); and (iv) the remainder shall be deposited into the Treasury as miscellaneous receipts. (B) Administration Amounts to be paid or available under clauses (i), (ii), and (iii) of subparagraph (A) shall— (i) be available without further appropriation; and (ii) remain available until expended. (3) Distribution of remainder Of the amount referred to in paragraph (1)(B), and subject to subsection (b), 50 per centum thereof ; and (2) in subsection (a), by striking All moneys received (4) General provisions All moneys received . (b) Conforming amendment Section 35(c)(1) of the Mineral Leasing Act ( 30 U.S.C. 191(c)(1) the first sentence of (c) Limitations on application The amendments made by subsection (a)— (1) shall apply only to amounts received by the United States under new leases issued on or after the date of enactment of this Act; and (2) shall not affect the application of section 35(a) of the Mineral Leasing Act ( 30 U.S.C. 191(a)

Summary: Ensuring the Taxpayer a Fair Return for Federal Onshore Oil and Gas Resources Act of 2015 This bill amends the Mineral Leasing Act to increase the minimum acceptable bids and rentals for leases of oil, natural gas, and tar sand on federal land. Minimum acceptable bids and rentals shall receive inflation adjustments once every four years. One-third of any amounts received by the United States from sales, bonuses, and royalties, including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982, and from rentals of the public lands in Alaska under the Mineral Leasing Act and the Geothermal Steam Act of 1970, shall be made available in specified percentages: for use for oil and gas inspection and enforcement; to remediate, reclaim, and properly plug and abandon orphan oil and gas wells on federal lands; and to the state within whose boundaries the leased land is located, or the deposits were derived, for state use in accordance with specified requirements.