Fair Returns for Public Lands Act of 2021

To amend the Mineral Leasing Act to increase certain royalty rates, minimum bid amounts, and rental rates, and for other purposes. 1. Short title This Act may be cited as the Fair Returns for Public Lands Act of 2021 2. Increased onshore oil and gas 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 percent 3. Increased minimum bid amount Section 17(b) of the Mineral Leasing Act ( 30 U.S.C. 226(b) (1) in paragraph (1)(B)— (A) by striking the subparagraph designation and all that follows through the period at the end of the first sentence and inserting the following: (B) National minimum acceptable bid (i) In general Except as provided in clauses (ii) and (v), the national minimum acceptable bid shall be $10 per acre. ; (B) in the second sentence— (i) by striking Thereafter, the Secretary (ii) Adjustment The Secretary ; (ii) by striking is necessary: (i) to enhance is necessary— (I) to enhance ; and (iii) by striking (ii) to promote (II) to promote ; (C) in the third sentence, by striking Ninety days (iii) Notification 90 days ; (D) in the fourth sentence, by striking The proposal (iv) NEPA The proposal ; and (E) by adding at the end the following: (v) Exception To ensure a return of fair market value, as determined by the Secretary, the Secretary may establish in a notice of competitive lease sale a minimum acceptable bid applicable to the lease sale or 1 or more parcels within the lease sale that is higher than the national minimum bid under clause (i). ; and (2) in subsection (b)(2)(C), by striking $2 per acre 4. Increased onshore oil and gas rental rates Section 17(d) of the Mineral Leasing Act ( 30 U.S.C. 226(d) (1) by striking $1.50 per acre $3 per acre (2) by striking $2 per acre $5 per acre 5. Fee for expression of interest Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 (q) Fee for expression of interest (1) In general The Secretary shall charge any person who submits, in accordance with procedures established by the Secretary to carry out this subsection, an expression of interest in leasing land available for disposition under this section for exploration for, and development of, oil or gas a fee, in an amount determined by the Secretary under paragraph (2). (2) Amount The fee authorized under paragraph (1) shall be established by the Secretary in an amount that is determined by the Secretary to be appropriate to cover the aggregate cost of processing an expression of interest under this subsection, but not less than $15 per acre of the area covered by the applicable expression of interest. . 6. Adjustment Section 17 of the Mineral Leasing Act ( 30 U.S.C. 226 (r) Adjustment to certain fees The Secretary shall— (1) not later than 4 years after the date of enactment of the Fair Returns for Public Lands Act of 2021 (2) as the Secretary determines to be necessary to enhance financial returns to the United States or to promote more efficient management of oil and gas resources on Federal land, promulgate regulations adjusting any of the applicable per-acre dollar amounts of fees imposed under subsection (b), (d), or (q) or subsection (e) or (f) of section 31, as applicable. . 7. Reinstatement of competitive leases Section 31 of the Mineral Leasing Act ( 30 U.S.C. 188 (1) in subsection (e)— (A) by striking paragraph (2) and inserting the following: (2) payment of back rentals and the inclusion in a reinstated lease of a requirement for future rentals at a rate of not less than $20 per acre per year; ; (B) in paragraph (3)— (i) in subparagraph (A)— (I) by striking the subparagraph designation; (II) by striking issued pursuant to the provisions of section 17(b) of this Act (III) by striking 16 2/3 25 (IV) by inserting and (ii) by striking subparagraph (B); and (C) in the second sentence of the undesignated matter following paragraph (4), by striking , but not to exceed $500 (2) in subsection (f)— (A) in paragraph (3), by striking $5 $10 (B) in paragraph (4), by striking 12 1/2 25 8. Fiscal reform study and report (a) In general The Comptroller General of the United States shall offer to enter into an arrangement with the National Academy of Sciences under which the National Academy of Sciences, in cooperation with the Comptroller General of the United States, shall conduct a study evaluating the efficiency and effectiveness of the implementation of this Act and the amendments made by this Act. (b) Considerations The study conducted under subsection (a) shall include consideration of— (1) the systems of the Department of the Interior for collecting and auditing payments under this Act and the amendments made by this Act; (2) the performance of the stewardship of the Department of the Interior and the disposition of receipts by the Department of the Interior in carrying out this Act and the amendments made by this Act; and (3) the performance of the valuation approach carried out under this Act and the amendments made by this Act, including a review of whether other approaches could more fully capture foregone revenue of leasing in low-market conditions in light of other possible economic uses at different points in the future. (c) Report If the Comptroller General of the United States enters into an arrangement with the National Academy of Sciences under subsection (a), not earlier than 3, but not later than 5, years after the date of enactment of this Act, the Comptroller General shall submit to Congress a report that describes the results of the study conducted under that subsection.

Summary: Fair Returns for Public Lands Act of 2021 This bill revises the royalty system applicable to leases of public lands for oil and gas production. Specifically, it increases royalty rates, rental rates, and minimum bidding standards for onshore oil and gas leasing. In addition, it establishes a new fee that must be paid by any person who nominates public lands for such leasing. Finally, the bill requires the Department of the Interior to adjust these rates and fees for inflation at least every four years.