COMPETES Act

To amend the Mineral Leasing Act to ensure market competition in onshore oil and gas leasing, and for other purposes. 1. Short title This Act may be cited as the Competitive Onshore Mineral Policy via Eliminating Taxpayer-Enabled Speculation Act COMPETES Act 2. Statement of policy It is the policy of the United States that the Secretary of the Interior shall not issue onshore oil and gas leases except through a competitive bidding process. 3. Elimination of noncompetitive leasing under the Mineral Leasing Act (a) Oil and gas leasing Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 (1) by striking subsection (a) and inserting the following: (a) Leasing authority (1) In general All land subject to disposition under this Act that is known or believed to contain oil or gas deposits may be leased by the Secretary. (2) Receipt of fair market value In conducting leasing activities under this Act, the Secretary shall ensure the receipt by the United States of fair market value for— (A) any land or resources leased by the United States; and (B) any rights conveyed by the United States. ; (2) in subsection (b)— (A) in paragraph (1)(A)— (i) in the first sentence, by striking paragraphs (2) and (3) of this subsection paragraph (2) (ii) by striking the last sentence; and (B) by striking paragraph (3); (3) by striking subsection (c) and inserting the following: (c) Additional rounds of competitive bidding Land made available for leasing under subsection (b)(1) for which no bid is accepted or received, or the land for which a lease terminates, expires, is cancelled, or is relinquished, may be made available by the Secretary of the Interior for a new round of competitive bidding under that subsection. ; and (4) by striking subsection (e) and inserting the following: (e) Term of lease (1) In general Any lease issued under this section, including a lease for tar sand areas, shall be for a primary term of 10 years. (2) Continuation of lease A lease described in paragraph (1) shall continue after the primary term of the lease for any period during which oil or gas is produced in paying quantities. (3) Additional extensions Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of the primary term of the lease and are being diligently prosecuted at the time the primary term of the lease ends shall be extended for 2 years and for any period thereafter during which oil or gas is produced in paying quantities. . (b) Conforming amendments Section 31 of the Mineral Leasing Act ( 30 U.S.C. 188 (1) in subsection (d)(1), in the first sentence, by striking or section 17(c) of this Act (2) in subsection (e)— (A) in paragraph (2)— (i) by striking either (ii) by striking or the inclusion , all (B) in paragraph (3)— (i) in subparagraph (A), by adding and (ii) by striking subparagraph (B); and (iii) by striking (3)(A) payment (3) payment ; (3) in subsection (g)— (A) in paragraph (1), by striking as a competitive of this Act in the same manner as the original lease issued pursuant to section 17 (B) by striking paragraph (2); (C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and (D) in paragraph (2) (as so redesignated), by striking applicable to leases issued under subsection 17(c) of this Act ( 30 U.S.C. 226(c) except (4) in subsection (h), by striking subsections (d) and (f) of this section subsection (d) (5) in subsection (i), by striking (i)(1) In acting of this section (i) Royalty reduction in reinstated leases In acting on a petition for reinstatement pursuant to subsection (d) ; (6) by striking subsection (f); and (7) by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.

Summary: Competitive Onshore Mineral Policy via Eliminating Taxpayer-Enabled Speculation Act or the COMPETES Act This bill revises the process of leasing public land for oil and gas development. For example, it requires the Bureau of Land Management (BLM) to issue all onshore oil and gas leasing through a competitive bidding process. Further, the BLM must ensure the receipt by the United States of fair market value for any land or resources leased and any rights covered by the United States.