I 
114TH CONGRESS 
1ST SESSION H. R. 3289 
To prevent the waste of gas produced under oil and gas leases on Federal 
land and to collect royalty on all gas production. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2015 
Mr. LOWENTHAL (for himself, Mr. GRIJALVA, Ms. NORTON, Mr. GALLEGO, 
Mr. BEYER, Mr. POCAN, Mr. POLIS, Mr. CARTWRIGHT, Mr. TONKO, Ms. 
CASTOR of Florida, Mr. HONDA, Mr. VAN HOLLEN, and Ms. MCCOLLUM) 
introduced the following bill; which was referred to the Committee on 
Natural Resources 
A BILL 
To prevent the waste of gas produced under oil and gas 
leases on Federal land and to collect royalty on all gas 
production. 
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 ‘‘Natural Gas Environ-
mental and Economic Security Act’’. 
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SEC. 2. GAS WASTE REDUCTION AND ENHANCEMENT OF 
GAS MEASURING AND REPORTING. 
(a) IN GENERAL.—Title I of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1711 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 118. GAS WASTE REDUCTION AND ENHANCEMENT OF 
GAS MEASURING AND REPORTING. 
‘‘(a) RULES
FOR
PREVENTING
AND
REDUCING 
WASTE OF GAS VIA VENTING, FLARING, AND FUGITIVE 
RELEASES.— 
‘‘(1) REQUIREMENT
TO
ISSUE
RULES.—The 
Secretary shall issue rules that establish require-
ments for reducing and preventing the waste of gas, 
including by venting, flaring, and fugitive releases, 
from covered operations. 
‘‘(2) CONTENT OF RULES.—The rules shall— 
‘‘(A) require that 99 percent of all gas pro-
duced that is subject to a mineral leasing law 
be captured annually within 5 years of enact-
ment of the Natural Gas Environmental and 
Economic Security Act; 
‘‘(B) require flaring of gas, rather than 
venting, in all instances in which gas capture is 
not viable; 
‘‘(C) require that every application for a 
permit to drill a production well— 
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‘‘(i) demonstrate sufficient infrastruc-
ture is in place to capture produced gas; 
and 
‘‘(ii) be subject to public comments 
for a period of 30 days; 
‘‘(D) prohibit all new wells from flaring, 
within 2 years after the date of the enactment 
of the Natural Gas Environmental and Eco-
nomic Security Act; 
‘‘(E) require the operator of any covered 
operation that routinely flares gas before the ef-
fective date of the prohibition under subpara-
graph (D) to submit a gas capture plan to the 
Secretary no later than 6 months after such ef-
fective date that ensures the requirement in 
subparagraph (A) will be met; 
‘‘(F) require the operator of any covered 
operation that routinely flares gas before the ef-
fective date of the prohibition under subpara-
graph (D) to demonstrate a yearly decrease in 
the amount of gas flared, as a fraction of gas 
produced, to meet the requirement under sub-
paragraph (A); 
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‘‘(G) set performance standards based on 
modern equipment, to be updated every 5 years, 
that minimize gas loss from— 
‘‘(i) storage tanks; 
‘‘(ii) dehydrators; 
‘‘(iii) compressors; 
‘‘(iv) open-ended valves or lines; 
‘‘(v) pumps; and 
‘‘(vi) other equipment for which the 
Secretary considers such standards are 
necessary; 
‘‘(H) require the replacement of all high- 
bleed gas-actuated pneumatic devices with low- 
bleed or no-bleed devices; 
‘‘(I) set performance standards based on 
modern procedures and equipment, to be up-
dated every 5 years, that minimize gas loss 
from— 
‘‘(i) downhole maintenance; 
‘‘(ii) liquids unloading; 
‘‘(iii) well completion; and 
‘‘(iv) other procedures for which the 
Secretary considers such standards are 
necessary; 
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‘‘(J) require all operators to have regularly 
scheduled leak detection programs that assess 
the entire covered operation using an infrared 
camera or other equipment with equivalent sen-
sitivity and the ability to survey similarly large 
areas; 
‘‘(K) require any leaks found during leak 
detection programs required under subpara-
graph (J), or otherwise, to be repaired within 2 
weeks; and 
‘‘(L) require recordkeeping for— 
‘‘(i) equipment maintenance; 
‘‘(ii) leak detection and repair; 
‘‘(iii) venting events; 
‘‘(iv) flaring events; and 
‘‘(v) other operations for which the 
Secretary considers such requirements are 
necessary. 
‘‘(b) GAS MEASURING, REPORTING, AND TRANS-
PARENCY REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall, in ac-
cordance with this subsection, establish new require-
ments for measuring and reporting the production 
and disposition of all gas subject to the mineral leas-
ing laws to allow for more accurate accounting of all 
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such gas that is consumed or lost by venting and 
flaring, and of fugitive releases of such gas. 
‘‘(2) MEASURING
AND
REPORTING
REQUIRE-
MENTS.—To account for all gas referred to in para-
graph (1), the Secretary shall issue rules requiring 
oil or gas operators to— 
‘‘(A) measure all production and disposi-
tion of gas with such accuracy that fugitive gas 
releases can be calculated; 
‘‘(B) install metering devices to measure 
all vented and flared gas; and 
‘‘(C) report to the Secretary the volumes of 
gas measured under the requirements under 
subparagraph (A), including— 
‘‘(i) all new measured values for pro-
duction and disposition, including vented 
and flared volumes; and 
‘‘(ii) fugitive releases based on guide-
lines for their calculation established by 
the Secretary in the rule. 
‘‘(3) TRANSPARENCY.—The Secretary shall 
make all new data produced under the requirements 
established by the Secretary under this subsection, 
including calculated fugitive releases and volumes of 
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gas lost to venting and flaring, publicly available 
through the Internet— 
‘‘(A) without a fee or other access charge; 
‘‘(B) in a searchable, sortable, and 
downloadable manner, to the extent technically 
possible; and 
‘‘(C) as soon as technically practicable 
after the report by the operator is filed. 
‘‘(c) APPLICATION.—Except as otherwise specified in 
this section, the requirements established by the Secretary 
under this section shall apply to— 
‘‘(1) the construction and operation of any cov-
ered operation initiated after the date of the 
issuance of rules under this section; and 
‘‘(2) after the end of the 1-year period begin-
ning on the date of the issuance of such rules, any 
covered operation initiated before the date of the 
issuance of such rules. 
‘‘(d) ENFORCEMENT MECHANISMS.— 
‘‘(1) IN GENERAL.—The Secretary shall include 
in the rules issued under this section consistent en-
forcement mechanisms for covered operations that 
are not in compliance with the requirements estab-
lished by the rules. 
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‘‘(2) REQUIREMENTS.—The enforcement mech-
anisms under paragraph (1) shall include— 
‘‘(A) civil penalties for unauthorized vent-
ing and flaring, which shall— 
‘‘(i) apply in lieu of the penalties 
under section 109; and 
‘‘(ii) include production restrictions 
and civil monetary penalties equivalent to 
3 times the market value of the vented or 
flared gas; and 
‘‘(B) civil penalties that apply to non-
compliance with other new or existing proce-
dures, which shall— 
‘‘(i) apply in addition to or in lieu of 
the penalties under section 109; 
‘‘(ii) include production restrictions or 
monetary penalties, or both; and 
‘‘(iii) in the case of monetary pen-
alties, be proportional to market condi-
tions. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) COVERED OPERATIONS.—The term ‘cov-
ered operations’ means all oil and gas operations 
that are subject to mineral leasing law or title V of 
the Federal Land Policy and Management Act of 
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1976 (30 U.S.C. 1761 et seq.), regardless of size, in-
cluding production, storage, gathering, processing, 
and handling operations. 
‘‘(2) FLARE AND FLARING.—The term ‘flaring’ 
means the intentional and controlled burning of gas 
that occurs in the course of oil and gas operations 
to limit release of gas to the atmosphere. 
‘‘(3) FUGITIVE RELEASE.—The term ‘fugitive 
release’ means the unintentional and uncontrolled 
release of gas into the atmosphere in the course of 
oil and gas operations. 
‘‘(4) GAS CAPTURE PLAN.—The term ‘gas cap-
ture plan’ means a plan that includes specific goals, 
including equipment and timelines, for capturing, 
gathering, and processing gas produced under an oil 
or gas lease. 
‘‘(5) GAS RELEASE.—The term ‘gas release’ in-
cludes all gas that is discharged to the atmosphere 
via venting or fugitive release. 
‘‘(6) VENT AND VENTING.—The term ‘venting’ 
means the intentional and controlled release of gas 
into the atmosphere in the course of oil and gas op-
erations.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents 
in section 1 of that Act is amended by adding at the end 
of the items relating to title I the following: 
‘‘Sec. 118. Gas waste reduction and enhancement of gas measuring and report-
ing.’’. 
(c) DEADLINE.—The Secretary of the Interior shall 
issue rules required by the amendments made by this sec-
tion by not later than 1 year after the date of the enact-
ment of this Act. 
(d) ASSESSMENT OF VENTING, FLARING, AND FUGI-
TIVE RELEASES.—Not later than 6 months after the end 
of the 1-year period beginning on the date the Secretary 
of the Interior first receives data submitted under the re-
quirements established under subsection (b) of section 118 
of the Federal Oil and Gas Royalty Management Act of 
1982, as amended by this section, the Secretary shall— 
(1) submit a report to Congress describing— 
(A) the volume of fugitive releases, and gas 
consumed or lost by venting and flaring, from 
covered operations (as those terms are used in 
such section); 
(B) additional rules the Secretary con-
siders necessary to further curtail venting, flar-
ing, and fugitive releases, or the rational basis 
for not issuing new rules if the Secretary con-
siders new rules are not necessary; and 
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(C) recommendations for new statutory au-
thority necessary to limit venting, flaring, or fu-
gitive releases; and 
(2) issue rules described in the report under 
paragraph (1)(B) within 1 year after the date of the 
submission of the report. 
SEC. 3. ROYALTY COLLECTION FOR ALL GAS PRODUCED 
ON FEDERAL LANDS. 
(a) ASSESSMENT ON ALL PRODUCTION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), royalties otherwise authorized or required 
under the mineral leasing laws (as that term is de-
fined in the Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.)) to be 
paid for gas shall be assessed on all gas produced 
under the mineral leasing laws, including— 
(A) gas used or consumed within the area 
of the lease tract for the benefit of the lease 
(commonly referred to as ‘‘beneficial use gas’’); 
and 
(B) all gas that is consumed or lost by 
venting, flaring, or fugitive releases through any 
equipment during upstream operations. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply with respect to— 
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(A) gas vented or flared in an acute emer-
gency situation that poses danger to human 
health that occurs for no longer than 48 hours; 
and 
(B) gas injected into the ground on a lease 
tract in order to enhance production of an oil 
or gas well or for some other purpose. 
(b) CONFORMING AMENDMENTS.— 
(1) MINERAL
LEASING
ACT.—The Mineral 
Leasing Act is amended— 
(A) in section 14 (30 U.S.C. 223), by add-
ing at the end the following: ‘‘Notwithstanding 
any other provision of this Act (including this 
section), royalty shall be assessed with respect 
to oil and gas, other than gas described in sec-
tion 3(a)(2) of the Natural Gas Environmental 
and Economic Security Act, without regard to 
whether oil or gas is removed or sold from the 
leased land.’’; 
(B) in section 17 (30 U.S.C. 226), by 
striking ‘‘removed or sold’’ each place it ap-
pears; 
(C) in section 18 (30 U.S.C. 226), by 
striking ‘‘except oil or gas used for production 
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purposes on the claim, or unavoidably lost’’ 
each place it appears; 
(D) in section 19 (30 U.S.C. 226), by 
striking ‘‘except oil or gas used for production 
purposes on the claim, or unavoidably lost’’ 
each place it appears; 
(E) in section 22 (30 U.S.C. 251), by 
striking ‘‘sold or removed’’; and 
(F) in section 31 (30 U.S.C. 188), by 
striking ‘‘removed or sold’’ each place it ap-
pears. 
(2) OUTER CONTINENTAL SHELF LANDS ACT.— 
The Outer Continental Shelf Lands Act is amend-
ed— 
(A) 
in 
section 
6(a)(8) 
(43 
U.S.C. 
1335(a)(8)), by striking ‘‘saved, removed, or 
sold’’ each place it appears; and 
(B) in section 8(a) (43 U.S.C. 1337(a))— 
(i) in paragraph (1), by striking 
‘‘saved, removed, or sold’’ each place it ap-
pears; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(9) Notwithstanding any other provision of 
this Act (including this section), royalty under this 
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Act shall be assessed with respect to oil and gas, 
other than gas described in section 3(a)(2) of the 
Natural Gas Environmental and Economic Security 
Act, without regard to whether oil or gas is removed 
or sold from the leased land.’’. 
(c) APPLICATION.—The amendments made by this 
section shall apply only with respect to leases issued on 
or after the date of the enactment of this Act. 
Æ 
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