IB 
Union Calendar No. 572 
116TH CONGRESS 
2D SESSION 
H. R. 3225 
[Report No. 116–689, Part I] 
To amend the Mineral Leasing Act to make certain adjustments in leasing 
on Federal lands for oil and gas drilling, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2019 
Mr. LEVIN of California (for himself, Mr. GRIJALVA, and Mr. LOWENTHAL) 
introduced the following bill; which was referred to the Committee on 
Natural Resources, and in addition to the Committee on Agriculture, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
DECEMBER 24, 2020 
Additional sponsors: Ms. DEGETTE, Mr. CARTWRIGHT, Mr. SOTO, Ms. NOR-
TON, Mr. RYAN, Ms. BARRAGA´N, Mr. PANETTA, Ms. ROYBAL-ALLARD, 
Mr. QUIGLEY, Mr. HUFFMAN, Mr. VAN DREW, Mr. KENNEDY, Mr. NAD-
LER, Mr. KILDEE, Mrs. KIRKPATRICK, Ms. BLUNT ROCHESTER, Ms. 
HAALAND, Mrs. NAPOLITANO, Mr. BLUMENAUER, and Ms. PORTER 
DECEMBER 24, 2020 
Reported from the Committee on Natural Resources with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
DECEMBER 24, 2020 
Committee on Agriculture discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on June 12, 2019] 
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A BILL 
To amend the Mineral Leasing Act to make certain adjust-
ments in leasing on Federal lands for oil and gas drilling, 
and for other purposes. 
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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 ‘‘Restoring Community 
Input and Public Protections in Oil and Gas Leasing Act 
of 2020’’. 
SEC. 2. LEASING PROCESS. 
(a) ONSHORE OIL AND GAS LEASING.—Section 17(a) 
of the Mineral Leasing Act (30 U.S.C. 226(a)) is amended 
to read as follows: 
‘‘(a) LEASING AUTHORITY.— 
‘‘(1) IN GENERAL.—All lands subject to disposi-
tion under this Act that are known or believed to con-
tain oil or gas deposits may be leased by the Sec-
retary. 
‘‘(2) RECEIPT OF FAIR MARKET VALUE.—Leas-
ing activities under this Act shall be conducted to as-
sure receipt of fair market value for the lands and re-
sources leased and the rights conveyed by the United 
States.’’. 
(b) COMPETITIVE BIDDING.—Section 17(b)(1)(A) of 
the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)) is 
amended to read as follows: 
‘‘(A) COMPETITIVE BIDDING.— 
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‘‘(i) IN
GENERAL.—All lands to be 
leased under this section shall be leased as 
provided in this paragraph to the highest 
responsible qualified bidder by competitive 
bidding by sealed bid. 
‘‘(ii) GEOGRAPHIC
LIMITATION.—The 
Secretary shall lease lands under this para-
graph in units of not more than 2,560 
acres, except in Alaska, where units shall be 
not more than 5,760 acres. Such units shall 
be as nearly compact as possible. 
‘‘(iii) FREQUENCY.—Lease sales under 
this section shall be held for each State in 
which there are lands eligible for leasing no 
more than 3 times each year and on a ro-
tating basis such that the lands under the 
responsibility of any Bureau of Land Man-
agement field office are available for leasing 
no more than one time each year. 
‘‘(iv) ROYALTY.—A lease under this 
section shall be conditioned upon the pay-
ment of a royalty at a rate of not less than 
18.5 percent in amount or value of the pro-
duction removed or sold from the lease, ex-
cept as otherwise provided in this Act. 
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‘‘(v) ISSUANCE OF LEASE.—The Sec-
retary may issue a lease under this section 
to the responsible qualified bidder with the 
highest bid that is equal to or greater than 
the national minimum acceptable bid. The 
Secretary shall decide whether to accept a 
bid and issue a lease within 90 days fol-
lowing payment by the successful bidder of 
the remainder of the bonus bid, if any, and 
annual rental for the first lease year. 
‘‘(vi) REJECTION
OF
BID.—The Sec-
retary may reject a bid above the national 
minimum acceptable bid if, after evaluation 
of the value of the lands proposed for lease, 
the Secretary determines that the bid 
amount does not ensure that fair market 
value is obtained for the lease.’’. 
(c) NATIONAL MINIMUM ACCEPTABLE BID.—Subpara-
graph (B) of section 17(b)(1) of the Mineral Leasing Act 
(30 U.S.C. 226(b)(1)), is amended to read as follows: 
‘‘(B) 
NATIONAL
MINIMUM
ACCEPTABLE 
BID.— 
‘‘(i) IN GENERAL.—The national min-
imum acceptable bid shall be $5 per acre. 
All bids under this section for less than the 
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national minimum acceptable bid shall be 
rejected. 
‘‘(ii) RAISING THE NATIONAL MINIMUM 
ACCEPTABLE BID.—The Secretary may es-
tablish a higher national minimum accept-
able bid— 
‘‘(I) beginning at the end of the 
four year period that begins on the 
date of enactment of the Restoring 
Community Input and Public Protec-
tion in Oil and Gas Leasing Act of 
2020, at least once every 4 years, to re-
flect the change in the Consumer Price 
Index for All Urban Consumers pub-
lished by the Bureau of Labor Statis-
tics; and 
‘‘(II) at any time if the Secretary 
finds that such a higher amount is nec-
essary to enhance financial returns to 
the United States or to promote more 
efficient management of oil and gas re-
sources on Federal lands. 
‘‘(iii) NOT
A
MAJOR
FEDERAL
AC-
TION.—The proposal or issuance of any reg-
ulation to establish a higher national min-
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imum acceptable bid under clause (ii) shall 
not be considered a major Federal action 
that is subject to the requirements of section 
102(2)(C) of the National Environmental 
Policy 
Act 
of 
1969 
(42 
U.S.C. 
4332(2)(C)).’’. 
(d) RENTALS.—Section 17(d) of the Mineral Leasing 
Act (30 U.S.C. 226(d)) is amended to read as follows: 
‘‘(d) ANNUAL RENTALS.—All leases issued under this 
section shall be conditioned upon the payment by the lessee 
of a rental of— 
‘‘(1) not less than $3.00 per acre per year during 
the 2-year period beginning on the date the lease be-
gins for new leases, and after the end of such two year 
period not less than $5 per acre per year; or 
‘‘(2) such higher rental rate as the Secretary 
may establish if the Secretary finds that such action 
is necessary to enhance financial returns to the 
United States and promote more efficient manage-
ment of oil and gas and alternative energy resources 
on Federal lands.’’. 
(e) ELIMINATION OF NONCOMPETITIVE LEASING.—The 
Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended— 
(1) in section 17(b) (30 U.S.C. 226(b)), by strik-
ing paragraph (3); 
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(2) by amending section 17(c) (30 U.S.C. 226(c)) 
to read as follows: 
‘‘(c) Lands made available for leasing under subsection 
(b)(1) but for which no bid is accepted may be made avail-
able by the Secretary for a new round of sealed bidding 
under such subsection.’’; 
(3) in section 17(e) (30 U.S.C. 226(e))— 
(A) by striking ‘‘Competitive and non-
competitive leases’’ and inserting ‘‘Leases, in-
cluding leases for tar sand areas,’’; and 
(B) by striking ‘‘Provided, however’’ and all 
that follows through ‘‘ten years.’’; 
(4) in section 31(d)(1) (30 U.S.C. 188(d)(1)) by 
striking ‘‘or section 17(c)’’; 
(5) in section 31(e) (30 U.S.C. 188(e))— 
(A) in paragraph (2) by striking ‘‘, or the 
inclusion’’ and all that follows and inserting a 
semicolon; and 
(B) in paragraph (3) by striking ‘‘(A)’’ and 
by striking subparagraph (B); 
(6) by striking section 31(f) (30 U.S.C. 188(f)); 
and 
(7) in section 31(g) (30 U.S.C. 188(g))— 
(A) in paragraph (1) by striking ‘‘as a 
competitive’’ and all that follows through the pe-
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riod and inserting ‘‘in the same manner as the 
original lease issued pursuant to section 17.’’; 
(B) by striking paragraph (2) and redesig-
nating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively; and 
(C) in paragraph (2), as redesignated, by 
striking ‘‘, applicable to leases issued under sub-
section 17(c) of this Act (30 U.S.C. 226(c)) ex-
cept,’’ and inserting ‘‘, except’’. 
(f) LEASE TERM.—Section 17(e) of the Mineral Leas-
ing Act (30 U.S.C. 226(e)) is amended by striking ‘‘10 
years:’’ and inserting ‘‘5 years.’’. 
(g) OTHER LEASING REQUIREMENTS.—Section 17(g) 
of the Mineral Leasing Act (30 U.S.C. 226(g)), as amended 
by section 8 of this Act, is further amended— 
(1) by striking ‘‘The Secretary’’ at the beginning 
and inserting ‘‘(1) IN
GENERAL.—The Secretary’’; 
and 
(2) by adding at the end the following: 
‘‘(2) LIMITATION.—The Secretary shall not issue 
a lease or approve the assignment of any lease to any 
person, or to any subsidiary or affiliate of such per-
son or any other person controlled by or under com-
mon control with such person, unless such person has 
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the demonstrated capability to explore and produce 
oil and gas under the lease. 
‘‘(3) PROTECTION OF LEASED LANDS FOR OTHER 
USES.—Each lease under this section shall include 
such terms as are necessary to preserve the United 
States flexibility to control or prohibit activities that 
pose serious and unacceptable impacts to the value of 
the leased lands for uses other than production of oil 
and gas.’’. 
SEC. 3. TRANSPARENCY AND LANDOWNER PROTECTIONS. 
(a) DISCLOSURE OF IDENTITIES FILING DISCLOSURES 
OF INTEREST AND BIDS.—Section 17(b) of the Mineral 
Leasing Act (30 U.S.C. 226(b)), as amended by this Act, 
is further amended by adding at the end the following: 
‘‘(3) BIDDER IDENTITY.—The Secretary— 
‘‘(A) shall require that each expression of 
interest to bid for a lease under this section and 
each bid for a lease under this section shall in-
clude the name of the person for whom such ex-
pression of interest or bid is submitted; and 
‘‘(B) shall promptly publish each such 
name.’’. 
(b) NOTICE REQUIREMENTS.—Section 17(f) of the 
Mineral Leasing Act (30 U.S.C. 226(f)) is amended by 
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striking ‘‘At least’’ and all that follows through ‘‘agencies.’’ 
and inserting the following: 
‘‘(1) REQUIRED NOTICE.—At least 45 days before 
offering lands for lease under this section, and at least 
30 days before approving applications for permits to 
drill under the provisions of a lease, modifying the 
terms of any lease issued under this section, or grant-
ing a waiver, exception, or modification of any stipu-
lation of a lease issued under this section, the Sec-
retary shall provide notice of the proposed action to— 
‘‘(A) the general public by posting such no-
tice in the appropriate local office and on the 
electronic website of the leasing and land man-
agement agencies offering the lands for lease; 
‘‘(B) all surface land owners in the area of 
the lands being offered for lease; and 
‘‘(C) the holders of special recreation per-
mits for commercial use, competitive events, and 
other organized activities on the lands being of-
fered for lease. 
‘‘(2) REQUIRED INFORMATION.—’’. 
(c) SURFACE OWNER PROTECTION.— 
(1) POST-LEASE SURFACE USE AGREEMENT.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), the Secretary may not authorize 
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any operator to conduct exploration and drilling 
operations on lands with respect to which title to 
oil and gas resources is held by the United States 
but title to the surface estate is not held by the 
United States, until the operator has filed with 
the Secretary a document, signed by the operator 
and the surface owner or owners, showing that 
the operator has secured a written surface use 
agreement between the operator and the surface 
owner or owners that meets the requirements of 
subparagraph (B). 
(B) CONTENTS.—The surface use agreement 
shall provide for— 
(i) the use of only such portion of the 
surface estate as is reasonably necessary for 
exploration and drilling operations based 
on site-specific conditions; 
(ii) the accommodation of the surface 
estate owner to the maximum extent prac-
ticable, including the location, use, timing, 
and type of exploration and drilling oper-
ations, consistent with the operator’s right 
to develop the oil and gas estate; 
(iii) the reclamation of the site to a 
condition capable of supporting the uses 
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which such lands were capable of sup-
porting prior to exploration and drilling 
operations; and 
(iv) compensation for damages as a re-
sult of exploration and drilling operations, 
including— 
(I) loss of income and increased 
costs incurred; 
(II) damage to or destruction of 
personal property, including crops, for-
age, and livestock; and 
(III) failure to reclaim the site in 
accordance with clause (iii). 
(C) PROCEDURE.— 
(i) NOTICE OF INTENT TO CONCLUDE 
AGREEMENT.—An operator shall notify the 
surface estate owner or owners of the opera-
tor’s desire to conclude an agreement under 
this section. If the surface estate owner and 
the operator do not reach an agreement 
within 90 days after the operator has pro-
vided such notice, the operator may submit 
the matter to third-party arbitration for 
resolution within a period of 90 days. The 
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cost of such arbitration shall be the respon-
sibility of the operator. 
(ii) LIST OF ARBITRATORS.—The Sec-
retary shall identify persons with experience 
in conducting arbitrations and shall make 
this information available to operators. 
(iii) REFERRAL.—Referral of a matter 
for arbitration by an operator to an arbi-
trator identified by the Secretary pursuant 
to clause (ii) shall be sufficient to constitute 
compliance with clause (i). 
(D) ATTORNEYS FEES.—If action is taken 
to enforce or interpret any of the terms and con-
ditions contained in a surface use agreement, the 
prevailing party shall be reimbursed by the other 
party for reasonable attorneys fees and actual 
costs incurred, in addition to any other relief 
which a court or arbitration panel may grant. 
(2) AUTHORIZED EXPLORATION AND DRILLING 
OPERATIONS.— 
(A) AUTHORIZATION
WITHOUT
SURFACE 
USE AGREEMENT.—The Secretary may authorize 
an operator to conduct exploration and drilling 
operations on lands covered by paragraph (1) in 
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the absence of an agreement with the surface es-
tate owner or owners, if— 
(i) the Secretary makes a determina-
tion in writing that the operator made a 
good faith attempt to conclude such an 
agreement, including referral of the matter 
to arbitration pursuant to paragraph 
(1)(C), but that no agreement was con-
cluded within 90 days after the referral to 
arbitration; 
(ii) the operator submits a plan of op-
erations that provides for the matters speci-
fied in paragraph (1)(B) and for compli-
ance with all other applicable requirements 
of Federal and State law; and 
(iii) the operator posts a bond or other 
financial assurance in an amount the Sec-
retary determines to be adequate to ensure 
compensation to the surface estate owner for 
any damages to the site, in the form of a 
surety bond, trust fund, letter of credit, gov-
ernment security, certificate of deposit, cash, 
or equivalent. 
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(B) SURFACE OWNER PARTICIPATION.—The 
Secretary shall provide surface estate owners 
with an opportunity to— 
(i) comment on plans of operations in 
advance of a determination of compliance 
with this Act; 
(ii) participate in bond level deter-
minations and bond release proceedings 
under this section; 
(iii) attend an on-site inspection dur-
ing such determinations and proceedings; 
(iv) file written objections to a pro-
posed bond release; and 
(v) request and participate in an on- 
site inspection when they have reason to be-
lieve there is a violation of the terms and 
conditions of a plan of operations. 
(C) PAYMENT OF FINANCIAL GUARANTEE.— 
A surface estate owner with respect to any land 
subject to a lease may petition the Secretary for 
payment of all or any portion of a bond or other 
financial assurance required under this section 
as compensation for any damages as a result of 
exploration and drilling operations. Pursuant to 
such a petition, the Secretary may use such bond 
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or other guarantee to provide compensation to 
the surface estate owner for such damages. 
(D) BOND
RELEASE.—Upon request and 
after inspection and opportunity for surface es-
tate owner review, the Secretary may release the 
financial assurance required under this section if 
the Secretary determines that exploration and 
drilling operations are ended and all damages 
have been fully compensated. 
(3) SURFACE OWNER NOTIFICATION.—The Sec-
retary shall notify surface estate owners in writing— 
(A) not less than 45 days before lease sales; 
(B) of the identity of the lessee, not more 
than 10 business days after a lease is issued; 
(C) concerning any subsequent request or 
decision regarding a lease not more than 5 busi-
ness days after such request or decision, includ-
ing regarding modification of a lease, waiver of 
a stipulation, or approval of a right of way; and 
(D) not more than 5 business days after 
issuance of a drilling permit under a lease. 
SEC. 4. LEASE STIPULATIONS. 
(a) 
ENERGY
POLICY
ACT
OF
2005.—Section 
363(b)(3)(C) of the Energy Policy Act of 2005 (42 U.S.C. 
15922(b)(3)(C)) is amended to read as follows: 
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‘‘(C) adequately protective of the resource 
for which the stipulations are applied;’’. 
(b) REVISION OF EXISTING MEMORANDUM.—Not later 
than 180 days after the date of the enactment of this Act 
the Secretary of the Interior and the Secretary of Agri-
culture shall revise the memorandum of understanding 
under section 363(b)(3)(C) of the Energy Policy Act of 2005 
(42 U.S.C. 15922) in accordance with the amendment made 
by subsection (a). 
SEC. 5. MASTER LEASING PLANS. 
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 
226(a)), as amended by section 2, is further amended by 
adding at the end the following: 
‘‘(3) MASTER LEASING PLANS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
adopt and implement a master leasing plan to 
govern the issuance of oil and gas leases under 
this Act for any Federal lands, in accordance 
with Bureau of Land Management Instruction 
Memorandum No. 2010–117, dated May 17, 
2010, as in effect on April 24, 2017. 
‘‘(B) FACTORS AND CONSIDERATIONS.—In 
deciding whether to adopt and implement a mas-
ter leasing plan, the Secretary— 
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‘‘(i) shall consider the criteria set forth 
in Bureau of Land Management Instruction 
Memorandum No. 2010–117, dated May 17, 
2010, as in effect on April 24, 2017; and 
‘‘(ii) shall consider the benefits of 
avoiding conflicts between mineral leasing 
and other land uses, including conservation, 
recreation, and protection of cultural and 
historic resources. 
‘‘(C) STATE REQUEST.—The Secretary shall 
adopt and implement a master leasing plan 
under subparagraph (A) applicable to leases for 
Federal lands in a State or county of a State, 
if requested by the government of such State or 
county, respectively. 
‘‘(D) REQUEST BY AN INDIVIDUAL.— 
‘‘(i) IN
GENERAL.—Any individual 
who is a resident of a State or county of a 
State may submit a petition to the Sec-
retary requesting that the Secretary adopt 
and implement a master leasing plan under 
subparagraph (A) applicable to the issuance 
of leases for Federal lands in such State or 
county, respectively. 
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‘‘(ii) CONSIDERATION.—If the Sec-
retary receives such a petition, the Sec-
retary shall, not later than 60 days after re-
ceiving such petition, issue a determination 
of whether or not the adoption and imple-
mentation of such a master leasing plan is 
appropriate.’’. 
SEC. 6. PARCEL REVIEW. 
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 
226(a)), as amended by sections 2 and 5 of this Act, is fur-
ther amended by adding at the end the following: 
‘‘(4) PARCEL REVIEW.—The Secretary shall issue 
oil and gas leases under this Act only in accordance 
with subsections C through I of section III of Bureau 
of Land Management Instruction Memorandum No. 
2010–117, dated May 17, 2010, as in effect on April 
24, 2017.’’. 
SEC. 7. ACREAGE LIMITATIONS. 
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 
184(d)(1)) is amended by striking ‘‘, and acreage under any 
lease any portion of which has been committed to a federally 
approved unit or cooperative plan or communitization 
agreement or for which royalty (including compensatory 
royalty or royalty in-kind) was paid in the preceding cal-
endar year,’’. 
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SEC. 8. LAND MANAGEMENT. 
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 
226(g)), as amended by section 2(g) of this Act, is further 
amended by adding at the end the following: 
‘‘(4) MULTIPLE-USE
MANAGEMENT.—The Sec-
retary, and for National Forest lands, the Secretary 
of Agriculture, shall manage lands that are subject to 
an oil and gas lease under this Act in accordance 
with the principles, policies, and requirements relat-
ing to multiple use under the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1701 et 
seq.), until the beginning of operations on such 
lease.’’. 
SEC. 9. OIL SHALE. 
Section 21(a) of the Mineral Leasing Act (30 U.S.C. 
241(a)) is amended— 
(1) in paragraph (1), by striking ‘‘The Secretary 
of the Interior’’ and inserting ‘‘Subject to paragraph 
(6), the Secretary of the Interior’’; and 
(2) by adding at the end the following: 
‘‘(6) Beginning on the date of enactment of the 
Restoring Community Input and Public Protections 
in Oil and Gas Leasing Act of 2020, The Secretary 
may not issue any lease for oil shale under this Act 
before the date the Secretary issues a finding that the 
technical and economic feasibility of development of 
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and production from such deposit has been dem-
onstrated under section 369 of the Energy Policy Act 
of 2005 (42 U.S.C. 15927).’’. 
SEC. 10. TRANSPARENCY IN MANAGEMENT OF LEASES. 
Section 17(a) of the Mineral Leasing Act (30 U.S.C. 
226(a)), as amended by sections 2, 5, and 6 of this Act, 
is further amended by adding at the end the following: 
‘‘(5) 
TRANSPARENCY
IN
MANAGEMENT
OF 
LEASES.—For each lease under this section, the Sec-
retary shall make available on a public website— 
‘‘(A) the identity of— 
‘‘(i) each person who is or has been a 
lessee under the lease; and 
‘‘(ii) each person who is or has been an 
operator under the lease; 
‘‘(B) notice of each transfer of the lease; and 
‘‘(C) notice of each suspension of operations, 
each suspension of production, and each suspen-
sion of operations and production.’’. 
SEC. 11. LEASE CANCELLATION FOR IMPROPER ISSUANCE. 
Section 31(b) of the Mineral Leasing Act (30 U.S.C. 
188(b)) is amended by inserting ‘‘if the lease was improp-
erly issued or’’ after ‘‘30 days notice’’. 
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SEC. 12. FEES FOR EXPRESSIONS OF INTEREST. 
The Secretary of the Interior shall charge any person 
who submits an expression of interest, as that term is de-
fined by the Secretary, a fee, in an amount determined by 
the Secretary to be appropriate in aggregate to cover the 
aggregate cost of processing expressions of interest. 
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Union Calendar No. 572 
116TH CONGRESS 
2D SESSION 
H. R. 3225 
[Report No. 116–689, Part I] 
A BILL 
To amend the Mineral Leasing Act to make certain 
adjustments in leasing on Federal lands for oil 
and gas drilling, and for other purposes. 
DECEMBER 24, 2020 
Reported from the Committee on Natural Resources with 
an amendment 
DECEMBER 24, 2020 
Committee on Agriculture discharged; committed to the 
Committee of the Whole House on the State of the 
Union and ordered to be printed 
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