I 
★
110TH CONGRESS 
2D SESSION 
H. R. 6860 
To exempt exploration, development, and production of oil and natural gas 
under leases on Federal lands from State environmental and pollution 
control laws, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 10, 2008 
Mrs. BLACKBURN introduced the following bill; which was referred to the 
Committee on Natural Resources 
A BILL 
To exempt exploration, development, and production of oil 
and natural gas under leases on Federal lands from 
State environmental and pollution control laws, and for 
other purposes. 
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 ‘‘Oil and Gas Lease 
Reform Act of 2008’’. 
SEC. 2. ENVIRONMENTAL REVIEW PROCESS. 
(a) PREEMPTION OF STATE LAW.—No State environ-
mental or pollution control law regulating the emission of 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
pollutants or protecting human health or the environment 
shall apply to any activity under a lease for the explo-
ration, development, or production of oil or natural gas 
on Federal lands (including submerged lands), including 
any such State law that is expressly applicable to such 
activity under any other provision of Federal law. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 25 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1351) is amended— 
(A) by striking subsection (d); and 
(B) in subsection (h)— 
(i) in paragraph (1) by striking ‘‘Any 
modification required by the Secretary’’ 
and all that follows through the end of the 
sentence; 
(ii) in paragraph (1) by striking sub-
paragraph (B); 
(iii) in paragraph (2)(A) by striking 
clause (ii); and 
(iv) in paragraph (2)(B) by striking 
clause (ii). 
(2) Section 202(c) of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1712(c)) 
is amended— 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
(A) in paragraph (8), by striking ‘‘State 
and’’; and 
(B) in paragraph (9)— 
(i) by striking ‘‘and of the States’’ 
and all that follows through ‘‘897), as 
amended,’’ ; 
(ii) by striking ‘‘of approved State 
and’’; 
(iii) by striking ‘‘State, local, and’’; 
(iv) by striking ‘‘non-Federal Govern-
mental’’; and 
(v) by striking the last sentence. 
SEC. 3. PREVENTION OF UNNECESSARY OR UNDUE DEG-
RADATION OF PUBLIC LANDS. 
Section 302(b) of the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1732(b)) is amended by 
inserting ‘‘(1)’’ before the first sentence, and by adding 
at the end the following: 
‘‘(2) For purposes of application of this subsection 
with respect to a lease for the exploration, development, 
or production of oil or natural gas, the term ‘unnecessary 
or undue degradation’ means (A) surface or submerged 
disturbance greater than what would normally result when 
an activity is being accomplished by a prudent operator 
in usual, customary, and proficient operations of similar 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
character and taking into considerations the effect of oper-
ations on other resources and land uses, including those 
resources and uses outside the area of operations; (B) fail-
ure to initiate and complete reasonable mitigation meas-
ures, including the attainment of a level of protection or 
reclamation required by specific Federal law in areas such 
as the California Desert Conservation Area, Wild and Sce-
nic Rivers, Bureau of Land Management-administered 
portions of the National Wilderness System, and Bureau 
of Land Management-administered National Monuments 
and National Conservation Areas; (C) failure to comply 
with applicable Federal environmental statutes and regu-
lations thereunder; or (D) failure to abide by the terms 
and conditions of an approved plan of operations and oper-
ations described in a complete notice.’’. 
SEC. 4. CONDITION FOR SUSPENSION OF LEASE. 
(a) FEDERAL LAND POLICY AND MANAGEMENT ACT 
OF 1976.—Section 302(c) of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1732(c)) is amended 
by inserting ‘‘(1)’’ before the first sentence, and by adding 
at the end the following: 
‘‘(2)(A) The Secretary may not suspend any lease for 
the exploration, development, or production of oil or nat-
ural gas, unless— 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
‘‘(i) the Secretary determines, based on clear 
proof, that operations under the lease will present an 
imminent threat or harm to public safety or will sig-
nificantly damage the public lands outside lease stip-
ulations; or 
‘‘(ii) the suspension is requested by the lessee. 
‘‘(B) The Secretary shall review any suspension of 
a lease under subparagraph (A)(i) at least once every 30 
days, and may renew such a suspension only after such 
a review. 
‘‘(C) Any suspension by the Secretary of a lease 
under subparagraph (A)(i) for more than a total of 90 
days in any 6-month period is deemed to be a breach of 
a contractual obligation of the United States, if— 
‘‘(i) the lessee is taking action to mitigate the 
condition that was the reason for the suspension; 
and 
‘‘(ii) such action is preventing the imminent 
threat, harm, or significant damage. 
‘‘(D) In the case of a breach under of contractual 
obligation, under subparagraph (C)— 
‘‘(i) the lessee shall be awarded contract dam-
ages; and 
‘‘(ii) the lessee may— 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
‘‘(I) retain the lease, and reapply upon 
submission to the Secretary of an application 
that includes procedures to address the reasons 
for the suspensions; or 
‘‘(II) surrender the lease and be refunded 
the amounts paid by the lessee to the United 
States as a bonus bid for the lease. 
‘‘(E) The term of a lease shall be extended by the 
period of each suspension of the lease under subparagraph 
(A). 
‘‘(F) The maximum period of time a lease may be 
suspended by request under subparagraph (A)(ii) is 2 
years for each 5-year period of the original term of the 
lease. 
‘‘(G) In this paragraph the term ‘significantly dam-
age’ means destroy 5 percent of more of wildlife and flora 
in the area that is subject to a the lease, or destroy histor-
ical structures in excess of the terms under permits and 
plans approved by the Secretary pursuant to the lease.’’. 
(b) MINERAL LEASING ACT.—Section 17 of the Min-
eral Leasing Act (30 U.S.C. 226) is amended by adding 
at the end the following: 
‘‘(q)(1) The Secretary may not suspend any lease 
under this Act for the exploration, development, or pro-
duction of oil or natural gas, unless— 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
‘‘(A) the Secretary determines, based on clear 
proof, that operations under the lease will present an 
imminent threat or harm to public safety or will sig-
nificantly damage the public lands; or 
‘‘(B) the suspension is requested by the lessee. 
‘‘(2) The Secretary shall review any suspension of a 
lease under paragraph (1)(A) at least once every 30 days, 
and may renew such a suspension only after such a review. 
‘‘(3) Any suspension by the Secretary of a lease under 
paragraph (1)(A) for more than a total of 90 days in any 
6-month period is deemed to be a breach of a contractual 
obligation of the United States, if— 
‘‘(A) the lessee is taking action to mitigate the 
condition that was the reason for the suspension; 
and 
‘‘(B) such action is preventing the imminent 
threat, harm, or significant damage. 
‘‘(4) In the case of a breach under of contractual obli-
gation, under paragraph (3)— 
‘‘(A) the lessee shall be awarded contract dam-
ages; and 
‘‘(B) the lessee may— 
‘‘(i) retain the lease, and reapply upon sub-
mission to the Secretary of an application that 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
includes procedures to address the reasons for 
the suspension; or 
‘‘(ii) surrender the lease and be refunded 
the amounts paid by the lessee to the United 
States as a bonus bid for the lease. 
‘‘(5) The term of a lease shall be extended by the 
period of each suspension of the lease under paragraph 
(1). 
‘‘(6) The maximum period of time a lease may be 
suspended by request under paragraph (1)(B) is 2 years 
for each 5-year period of the original term of the lease. 
‘‘(7) In this subsection the term ‘significantly dam-
age’ means destroy 5 percent of more of wildlife and flora 
in the area that is subject to a the lease, or destroy histor-
ical structures in excess of the terms under permits and 
plans approved by the Secretary pursuant to the lease.’’. 
(c) OUTER CONTINENTAL SHELF LANDS ACT.—Sec-
tion 5 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1334) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1) by striking ‘‘(A) at 
the request’’ and all that follows through the 
end of the paragraph and inserting ‘‘in accord-
ance with subsection (k)’’; and 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) with respect to cancellation of any lease or 
permit, that comply with subsection (k);’’; and 
(2) by adding at the end the following: 
‘‘(k)(1) The Secretary may not suspend any lease 
under this Act for the exploration, development, or pro-
duction of oil or natural gas, unless— 
‘‘(A) the Secretary determines, based on clear 
proof, that operations under the lease will present an 
imminent threat or harm to public safety or will sig-
nificantly damage the public lands; or 
‘‘(B) the suspension is requested by the lessee. 
‘‘(2) The Secretary shall review any suspension of a 
lease under paragraph (1)(A) at least once every 30 days, 
and may renew such a suspension only after such a review. 
‘‘(3) Any suspension by the Secretary of a lease under 
paragraph (1)(A) for more than a total of 90 days in any 
6-month period is deemed to be a breach of a contractual 
obligation of the United States, if— 
‘‘(A) the lessee is taking action to mitigate the 
condition that was the reason for the suspension; 
and 
‘‘(B) such action is preventing the imminent 
threat, harm, or significant damage. 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS
HR 6860 IH1S 
‘‘(4) In the case of a breach under of contractual obli-
gation, under paragraph (3)— 
‘‘(A) the lessee shall be awarded contract dam-
ages; and 
‘‘(B) the lessee may— 
‘‘(i) retain the lease, and reapply upon sub-
mission to the Secretary of an application that 
includes procedures to address the reasons for 
the suspension; or 
‘‘(ii) surrender the lease and receive such 
compensation as the lessee shows necessary to 
the Secretary as being greater of— 
‘‘(I) the fair value of the canceled 
rights as of the date of cancellation, taking 
account of both anticipated revenues from 
the lease and anticipated costs, including 
costs of compliance with all applicable reg-
ulations and operating orders, liability for 
cleanup costs or damages, or both, in the 
case of an oil spill, and all other costs rea-
sonably anticipated on the lease, or 
‘‘(II) the excess, if any, over the les-
see’s revenues, from the lease (plus inter-
est thereon from the date of receipt to date 
of reimbursement) of all consideration paid 
VerDate Aug 31 2005 
21:42 Sep 12, 2008
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6860.IH
H6860
hsrobinson on PROD1PC76 with BILLS