I 
114TH CONGRESS 
2D SESSION 
H. R. 4389 
To amend the Mineral Leasing Act to ensure fair returns for Federal onshore 
oil and gas resources. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2016 
Mr. LOWENTHAL (for himself and Mr. GRIJALVA) introduced the following 
bill; which was referred to the Committee on Natural Resources 
A BILL 
To amend the Mineral Leasing Act to ensure fair returns 
for Federal onshore oil and gas resources. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 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’’. 
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‘‘(A) COST-OF-LIVING ADJUSTMENT.—The 
term ‘cost-of-living adjustment’ means the per-
centage (if any) for a dollar amount by which— 
‘‘(i) the Consumer Price Index for the 
month of June of the calendar year pre-
ceding 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 ad-
justed pursuant to law. 
‘‘(B) CONSUMER PRICE INDEX.—The term 
‘Consumer Price Index’ means the Consumer 
Price Index for all urban consumers published 
by the Department of Labor.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
17(b)(1)(B) of the Mineral Leasing Act (30 U.S.C. 
226(b)(1)(B)) is amended beginning in the first sentence 
by striking ‘‘for a period’’ and all that follows through 
‘‘Thereafter, the’’ and inserting ‘‘. The’’. 
SEC. 3. AMENDMENT OF ROYALTY RATES. 
(a) ROYALTY RATES.—Section 17 of the Mineral 
Leasing Act (30 U.S.C. 226) is amended— 
(1) by striking ‘‘12.5’’ each place such term ap-
pears and inserting ‘‘18.75’’; and 
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(2) by striking ‘‘121⁄2’’ each place such term 
appears and inserting ‘‘18.75’’. 
(b) APPLICATION.—The amendments made by sub-
section (a) shall apply only to new leases issued on or after 
the date of enactment of this Act. 
SEC. 4. ON-SHORE FEDERAL OIL AND GAS ROYALTY SHAR-
ING. 
(a) IN GENERAL.—Section 35 of the Mineral Leasing 
Act (30 U.S.C. 191) is amended— 
(1) by striking ‘‘SEC. 35. (a)’’ and all that fol-
lows through ‘‘50 per centum thereof’’ and inserting 
the following: 
‘‘SEC. 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 Fed-
eral 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 de-
scribed in paragraph (2); and 
‘‘(B) the remainder shall be used as de-
scribed in paragraph (3). 
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‘‘(2) DISTRIBUTION OF 33.33 PERCENT.— 
‘‘(A) IN
GENERAL.—Of the amount re-
ferred to in paragraph (1)(A)— 
‘‘(i) 30 percent, but not to exceed 
$50,000,000 per fiscal year, shall be trans-
ferred 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 avail-
able to the Secretary of the Interior to re-
mediate, reclaim, and properly plug and 
abandon orphan oil and gas wells on Fed-
eral 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 de-
rived, for use by such State in accordance 
with paragraph (3); and 
‘‘(iv) the remainder shall be deposited 
into the Treasury as miscellaneous re-
ceipts. 
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‘‘(B) ADMINISTRATION.—Amounts to be 
paid or available under clauses (i), (ii), and (iii) 
of subparagraph (A) shall— 
‘‘(i) be available without further ap-
propriation; 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’’ and inserting the following: 
‘‘(4) GENERAL
PROVISIONS.—All moneys re-
ceived’’. 
(b) CONFORMING AMENDMENT.—Section 35(c)(1) of 
the Mineral Leasing Act (30 U.S.C. 191(c)(1)) is amended 
by striking ‘‘the first sentence of’’. 
(c) LIMITATIONS
ON APPLICATION.—The amend-
ments 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)) 
to amounts received by the United States before the 
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first fiscal year beginning after the date of the en-
actment of this Act. 
Æ 
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