Use it or Lose It Act

To amend the Mineral Leasing Act to provide for certain reforms to the process relating to applications for permits to drill and the eligibility requirements for prospective bidders in lease sales, and for other purposes. 1. Short title This Act may be cited as the Use it or Lose It Act 2. Eligibility to participate in lease sales Section 17(h) of the Mineral Leasing Act ( 30 U.S.C. 226(h) The Secretary (h) Limitations (1) Required certification A prospective lessee shall not be eligible to participate in a lease sale or otherwise acquire a new lease under this section until the date on which the prospective lessee, in accordance with procedures developed by the Secretary of the Interior, certifies to the Secretary of the Interior that the prospective lessee— (A) has diligently developed all other leases issued to the prospective bidder under this section by not later than the expiration of the applicable primary lease term, as determined by the Secretary of the Interior; (B) has relinquished any other leases issued to the prospective bidder under this section that have not been diligently developed by the prospective bidder by not later than the expiration of the applicable primary lease term, as determined by the Secretary; and (C) has complied with any other certifications that the Secretary of the Interior may reasonably require. (2) National forest system land The Secretary . 3. Applications for permits to drill Section 17(p) of the Mineral Leasing Act ( 30 U.S.C. 226(p) (4) Priority for issuing applications for permits to drill For purposes of considering applications for permits to drill submitted to the Secretary of the Interior under this subsection, the Secretary of the Interior shall give priority to any applicant that has— (A) demonstrated, to the satisfaction of the Secretary of the Interior, an ability and willingness to commit to climate mitigation and other forms of environmental mitigation with respect to the proposed activities, including— (i) binding commitments to plug and reclaim inactive wells; and (ii) a willingness to relinquish leases in sensitive areas, particularly areas that were subsequently closed to, or withdrawn from, leasing; (B) provided production estimates for the proposed drilling activities; or (C) demonstrated previous success with respect to completing wells. (5) Expiration of unused applications for permits to drill; extensions (A) In general Subject to subparagraph (B), an application for a permit to drill that is approved under this subsection after the date of enactment of this paragraph that is considered to be unused, as determined by the Secretary of the Interior, shall expire on the date that is 1 year after the date of the approval of the application for a permit to drill. (B) Extensions The Secretary of the Interior— (i) may extend, not more than 1 time, the expiration date of an unused approved application for a permit to drill that would otherwise expire under subparagraph (A) for a period of not more than 180 days; and (ii) may not extend the expiration date of an approved application for a permit to drill that was approved before the date of enactment of this paragraph that is considered to be unused, as determined by the Secretary of the Interior. (C) Disqualification of certain applicants Beginning on the date of enactment of this paragraph, an applicant for a permit to drill that has a higher than average number of unused approved applications for permits to drill under this subsection, as determined by the Secretary of the Interior, shall not be eligible for a new application for a permit to drill under this subsection unless the Secretary of the Interior determines that— (i) the applicant has relinquished a sufficient number of unused approved applications for permits to drill; or (ii) the applicant has converted a sufficient number of unused approved applications for permits to drill of the applicant to in use .

Summary: Use it or Lose It Act This bill modifies requirements for certain oil and gas leases and related drilling permits. For example, it requires prospective leaseholders to, as a condition of participating in certain oil and gas lease sales, certify that they have diligently developed any prior leases and relinquished any undeveloped leases.