260 
bility for issuing a mineral exploration or mine per-
mit or lease for a mineral project. 
‘‘(2) MINERAL.—The term ‘mineral’ has the 
meaning given such term in section 20301 of the 
TAPP American Resources Act. 
‘‘(3) MINERAL
EXPLORATION
OR
MINE
PER-
MIT.—The term ‘mineral exploration or mine permit’ 
means— 
‘‘(A) an authorization of the Bureau of 
Land Management or the Forest Service, as ap-
plicable, for exploration for minerals that re-
quires analysis under the National Environ-
mental Policy Act of 1969; 
‘‘(B) a plan of operations for a mineral 
project approved by the Bureau of Land Man-
agement or the Forest Service; or 
‘‘(C) any other Federal permit or author-
ization for a mineral project. 
‘‘(4) MINERAL
PROJECT.—The term ‘mineral 
project’ means a project— 
‘‘(A) located on— 
‘‘(i) a mining claim, millsite claim, or 
tunnel site claim for any mineral; 
‘‘(ii) lands open to mineral entry; or 
‘‘(iii) a Federal mineral lease; and
261 
‘‘(B) for the purposes of exploring for or 
producing minerals.’’; 
(3) in subsection (b), by striking ‘‘critical’’ each 
place such term appears; 
(4) in subsection (c)— 
(A) by striking ‘‘critical mineral production 
on Federal land’’ and inserting ‘‘mineral 
projects’’; 
(B) by inserting ‘‘, and in accordance with 
subsection (h)’’ after ‘‘to the maximum extent 
practicable’’; 
(C) by striking ‘‘shall complete the’’ and 
inserting ‘‘shall complete such’’; 
(D) in paragraph (1), by striking ‘‘critical 
mineral-related activities on Federal land’’ and 
inserting ‘‘mineral projects’’; 
(E) in paragraph (8), by striking the 
‘‘and’’ at the end; 
(F) in paragraph (9), by striking ‘‘proce-
dures.’’ and inserting ‘‘procedures; and’’; and 
(G) by adding at the end the following: 
‘‘(10) deferring to and relying on baseline data, 
analyses, and reviews performed by State agencies 
with jurisdiction over the environmental or reclama-
tion permits for the proposed mineral project.’’;
262 
(5) in subsection (d)— 
(A) by striking ‘‘critical’’ each place such 
term appears; and 
(B) in paragraph (3), by striking ‘‘mineral- 
related activities on Federal land’’ and inserting 
‘‘mineral projects’’; 
(6) in subsection (e), by striking ‘‘critical’’; 
(7) in subsection (f), by striking ‘‘critical’’ each 
place such term appears; 
(8) in subsection (g), by striking ‘‘critical’’ each 
place such term appears; and 
(9) by adding at the end the following: 
‘‘(h) OTHER REQUIREMENTS.— 
‘‘(1) MEMORANDUM OF AGREEMENT.—For pur-
poses of maximizing efficiency and effectiveness of 
the Federal permitting and review processes de-
scribed under subsection (c), the lead agency in the 
Federal permitting and review processes of a min-
eral project shall (in consultation with any other 
Federal agency involved in such Federal permitting 
and review processes, and upon request of the 
project applicant, an affected State government, 
local government, or an Indian Tribe, or other entity 
such lead agency determines appropriate) enter into 
a memorandum of agreement with a project appli-
263 
cant where requested by the applicant to carry out 
the activities described in subsection (c). 
‘‘(2) TIMELINES
AND
SCHEDULES
FOR
NEPA 
REVIEWS.— 
‘‘(A) EXTENSION.—A project applicant 
may enter into 1 or more agreements with a 
lead agency to extend the deadlines described in 
subparagraphs (A) and (B) of subsection (h)(1) 
of section 107 of title I of the National Envi-
ronmental Policy Act of 1969 by, with respect 
to each such agreement, not more than 6 
months. 
‘‘(B) ADJUSTMENT
OF
TIMELINES.—At 
the request of a project applicant, the lead 
agency and any other entity which is a signa-
tory to a memorandum of agreement under 
paragraph (1) may, by unanimous agreement, 
adjust— 
‘‘(i) any deadlines described in sub-
paragraph (A); and 
‘‘(ii) any deadlines extended under 
subparagraph (B). 
‘‘(3) EFFECT
ON
PENDING
APPLICATIONS.— 
Upon a written request by a project applicant, the 
requirements of this subsection shall apply to any
264 
application for a mineral exploration or mine permit 
or mineral lease that was submitted before the date 
of the enactment of the TAPP American Resources 
Act.’’. 
SEC. 20303. FEDERAL REGISTER PROCESS IMPROVEMENT. 
Section 7002(f) of the Energy Act of 2020 (30 
U.S.C. 1606(f)) is amended— 
(1) in paragraph (2), by striking ‘‘critical’’ both 
places such term appears; and 
(2) by striking paragraph (4). 
SEC. 20304. DESIGNATION OF MINING AS A COVERED SEC-
TOR FOR FEDERAL PERMITTING IMPROVE-
MENT PURPOSES. 
Section 41001(6)(A) of the FAST Act (42 U.S.C. 
4370m(6)(A)) is amended by inserting ‘‘mineral produc-
tion,’’ before ‘‘or any other sector’’. 
SEC. 20305. TREATMENT OF ACTIONS UNDER PRESI-
DENTIAL DETERMINATION 2022–11 FOR FED-
ERAL 
PERMITTING 
IMPROVEMENT 
PUR-
POSES. 
(a) IN GENERAL.—Except as provided by subsection 
(c), an action described in subsection (b) shall be— 
(1) treated as a covered project, as defined in 
section 41001(6) of the FAST Act (42 U.S.C.
265 
4370m(6)), without regard to the requirements of 
that section; and 
(2) included in the Permitting Dashboard main-
tained pursuant to section 41003(b) of that Act (42 
13 U.S.C. 4370m–2(b)). 
(b) ACTIONS DESCRIBED.—An action described in 
this subsection is an action taken by the Secretary of De-
fense pursuant to Presidential Determination 2022–11 
(87 Fed. Reg. 19775; relating to certain actions under 
section 303 of the Defense Production Act of 1950) or 
the Presidential Memorandum of February 27, 2023, ti-
tled ‘‘Presidential Waiver of Statutory Requirements Pur-
suant to Section 303 of the Defense Production Act of 
1950, as amended, on Department of Defense Supply 
Chains Resilience’’ (88 Fed. Reg. 13015) to create, main-
tain, protect, expand, or restore sustainable and respon-
sible domestic production capabilities through— 
(1) supporting feasibility studies for mature 
mining, beneficiation, and value-added processing 
projects; 
(2) byproduct and co-product production at ex-
isting mining, mine waste reclamation, and other in-
dustrial facilities;
266 
(3) modernization of mining, beneficiation, and 
value-added processing to increase productivity, envi-
ronmental sustainability, and workforce safety; or 
(4) any other activity authorized under section 
303(a)(1) of the Defense Production Act of 1950 15 
(50 U.S.C. 4533(a)(1)). 
(c) EXCEPTION.—An action described in subsection 
(b) may not be treated as a covered project or be included 
in the Permitting Dashboard under subsection (a) if the 
project sponsor (as defined in section 41001(18) of the 
FAST Act (42 U.S.C. 21 4370m(18))) requests that the 
action not be treated as a covered project. 
SEC. 20306. NOTICE FOR MINERAL EXPLORATION ACTIVI-
TIES WITH LIMITED SURFACE DISTURBANCE. 
(a) IN GENERAL.—Not later than 15 days before 
commencing an exploration activity with a surface disturb-
ance of not more than 5 acres of public lands, the operator 
of such exploration activity shall submit to the Secretary 
concerned a complete notice of such exploration activity. 
(b) INCLUSIONS.—Notice submitted under subsection 
(a) shall include such information the Secretary concerned 
may require, including the information described in sec-
tion 3809.301 of title 43, Code of Federal Regulations (or 
any successor regulation).
267 
(c) REVIEW.—Not later than 15 days after the Sec-
retary concerned receives notice submitted under sub-
section (a), the Secretary concerned shall— 
(1) review and determine completeness of the 
notice; and 
(2) allow exploration activities to proceed if— 
(A) the surface disturbance of such explo-
ration activities on such public lands will not 
exceed 5 acres; 
(B) the Secretary concerned determines 
that the notice is complete; and 
(C) the operator provides financial assur-
ance that the Secretary concerned determines is 
adequate. 
(d) DEFINITIONS.—In this section: 
(1) EXPLORATION ACTIVITY.—The term ‘‘explo-
ration activity’’— 
(A) means creating surface disturbance 
greater than casual use that includes sampling, 
drilling, or developing surface or underground 
workings to evaluate the type, extent, quantity, 
or quality of mineral values present; 
(B) includes constructing drill roads and 
drill pads, drilling, trenching, excavating test
268 
pits, and conducting geotechnical tests and geo-
physical surveys; and 
(C) does not include activities where mate-
rial is extracted for commercial use or sale. 
(2) SECRETARY CONCERNED.—The term ‘‘Sec-
retary concerned’’ means— 
(A) with respect to lands administered by 
the Secretary of the Interior, the Secretary of 
the Interior; and 
(B) with respect to National Forest Sys-
tem lands, the Secretary of Agriculture. 
SEC. 20307. USE OF MINING CLAIMS FOR ANCILLARY AC-
TIVITIES. 
Section 10101 of the Omnibus Budget Reconciliation 
Act of 1993 (30 U.S.C. 28f) is amended by adding at the 
end the following: 
‘‘(e) SECURITY OF TENURE.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN GENERAL.—A claimant shall have 
the right to use, occupy, and conduct operations 
on public land, with or without the discovery of 
a valuable mineral deposit, if— 
‘‘(i) such claimant makes a timely 
payment of the location fee required by
269 
section 10102 and the claim maintenance 
fee required by subsection (a); or 
‘‘(ii) in the case of a claimant who 
qualifies for a waiver under subsection (d), 
such claimant makes a timely payment of 
the location fee and complies with the re-
quired assessment work under the general 
mining laws. 
‘‘(B) OPERATIONS
DEFINED.—For the 
purposes of this paragraph, the term ‘oper-
ations’ means— 
‘‘(i) any activity or work carried out 
in connection with prospecting, exploration, 
processing, discovery and assessment, de-
velopment, or extraction with respect to a 
locatable mineral; 
‘‘(ii) the reclamation of any disturbed 
areas; and 
‘‘(iii) any other reasonably incident 
uses, whether on a mining claim or not, in-
cluding the construction and maintenance 
of facilities, roads, transmission lines, pipe-
lines, and any other necessary infrastruc-
ture or means of access on public land for 
support facilities.
270 
‘‘(2) FULFILLMENT OF FEDERAL LAND POLICY 
AND
MANAGEMENT
ACT.—A claimant that fulfills 
the requirements of this section and section 10102 
shall be deemed to satisfy the requirements of any 
provision of the Federal Land Policy and Manage-
ment Act that requires the payment of fair market 
value to the United States for use of public lands 
and resources relating to use of such lands and re-
sources authorized by the general mining laws. 
‘‘(3) SAVINGS CLAUSE.—Nothing in this sub-
section may be construed to diminish the rights of 
entry, use, and occupancy, or any other right, of a 
claimant under the general mining laws.’’. 
SEC. 20308. ENSURING CONSIDERATION OF URANIUM AS A 
CRITICAL MINERAL. 
(a) IN GENERAL.—Section 7002(a)(3)(B)(i) of the 
Energy Act of 2020 (30 U.S.C. 1606(a)(3)(B)(i)) is 
amended to read as follows: 
‘‘(i) oil, oil shale, coal, or natural 
gas;’’. 
(b) UPDATE.—Not later than 60 days after the date 
of the enactment of this section, the Secretary, acting 
through the Director of the United States Geological Sur-
vey, shall publish in the Federal Register an update to 
the final list established in section 7002(c)(3) of the En-
271 
ergy Act of 2020 (30 U.S.C. 1606(c)(3)) in accordance 
with subsection (a) of this section. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this section, the Secretary, acting 
through the Director of the United States Geological Sur-
vey, in consultation with the Secretary of Energy, shall 
submit to the appropriate committees of Congress a report 
that includes the following: 
(1) The current status of uranium deposits in 
the United States with respect to the amount and 
quality of uranium contained in such deposits. 
(2) A comparison of the United States to the 
rest of the world with respect to the amount and 
quality of uranium contained in uranium deposits. 
(3) Policy considerations, including potential 
challenges, of utilizing the uranium from the depos-
its described in paragraph (1). 
SEC. 20309. BARRING FOREIGN BAD ACTORS FROM OPER-
ATING ON FEDERAL LANDS. 
A mining claimant shall be barred from the right to 
use, occupy, and conduct operations on Federal land if the 
Secretary of the Interior finds the claimant has a foreign 
parent company that has (including through a sub-
sidiary)—
272 
(1) a known record of human rights violations; 
or 
(2) knowingly operated an illegal mine in an-
other country. 
SEC. 20310. PERMIT PROCESS FOR PROJECTS RELATING TO 
EXTRACTION, RECOVERY, OR PROCESSING 
OF CRITICAL MATERIALS. 
(a) DEFINITION
OF COVERED PROJECT.—Section 
41001(6)(A) of the FAST Act (42 U.S.C. 4370m(6)(A)) 
is amended— 
(1) in clause (iii)(III), by striking ‘‘; or’’ and in-
serting ‘‘;’’; 
(2) in clause (iv)(II), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(v) is related to the extraction, recov-
ery, or processing from coal, coal waste, 
coal processing waste, pre-or post-combus-
tion coal byproducts, or acid mine drainage 
from coal mines of— 
‘‘(I) critical minerals (as such 
term is defined in section 7002 of the 
Energy Act of 2020); 
‘‘(II) rare earth elements; or
273 
‘‘(III) microfine carbon or carbon 
from coal.’’. 
(b) REPORT.—Not later than 6 months after the date 
of enactment of this Act, the Secretary of the Interior 
shall submit to the Committees on Energy and Natural 
Resources and Commerce, Science, and Transportation of 
the Senate and the Committees on Transportation and In-
frastructure, Natural Resources, and Energy and Com-
merce of the House of Representatives a report evaluating 
the timeliness of implementation of reforms of the permit-
ting process required as a result of the amendments made 
by this section on the following: 
(1) The economic and national security of the 
United States. 
(2) Domestic production and supply of critical 
minerals, rare earths, and microfine carbon or car-
bon from coal. 
SEC. 20311. NATIONAL STRATEGY TO RE-SHORE MINERAL 
SUPPLY CHAINS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the United States Geologi-
cal Survey, in consultation with the Secretaries of De-
fense, Energy, and State, shall— 
(1) identify mineral commodities that—
274 
(A) serve a critical purpose to the national 
security of the United States, including with re-
spect to military, defense, and strategic mobility 
applications; and 
(B) are at highest risk of supply chain dis-
ruption due to the domestic or global actions of 
any covered entity, including price-fixing, sys-
temic acquisition and control of global mineral 
resources and processing, refining, and smelting 
capacity, and undercutting the fair market 
value of such resources; and 
(2) develop a national strategy for bolstering 
supply chains in the United States for the mineral 
commodities identified under paragraph (1), includ-
ing through the enactment of new national policies 
and the utilization of current authorities, to increase 
capacity and efficiency of domestic mining, refining, 
processing, and manufacturing of such mineral com-
modities. 
(b) COVERED ENTITY.—In this section, the term 
‘‘covered entity’’ means an entity that— 
(1) is subject to the jurisdiction or direction of 
the People’s Republic of China; 
(2) is directly or indirectly operating on behalf 
of the People’s Republic of China; or
275 
(3) is owned by, directly or indirectly controlled 
by, or otherwise subject to the influence of the Peo-
ple’s Republic of China. 
Subtitle D—Federal Land Use 
Planning 
SEC. 20401. FEDERAL LAND USE PLANNING AND WITH-
DRAWALS. 
(a) RESOURCE ASSESSMENTS REQUIRED.—Federal 
lands and waters may not be withdrawn from entry under 
the mining laws or operation of the mineral leasing and 
mineral materials laws unless— 
(1) a quantitative and qualitative geophysical 
and geological mineral resource assessment of the 
impacted area has been completed during the 10- 
year period ending on the date of such withdrawal; 
(2) the Secretary, in consultation with the Sec-
retary of Commerce, the Secretary of Energy, and 
the Secretary of Defense, conducts an assessment of 
the economic, energy, strategic, and national secu-
rity value of mineral deposits identified in such min-
eral resource assessment; 
(3) the Secretary conducts an assessment of the 
reduction in future Federal revenues to the Treas-
ury, States, the Land and Water Conservation 
Fund, the Historic Preservation Fund, and the Na-
276 
tional Parks and Public Land Legacy Restoration 
Fund resulting from the proposed mineral with-
drawal; 
(4) the Secretary, in consultation with the Sec-
retary of Defense, conducts an assessment of mili-
tary readiness and training activities in the proposed 
withdrawal area; and 
(5) the Secretary submits a report to the Com-
mittees on Natural Resources, Agriculture, Energy 
and Commerce, and Foreign Affairs of the House of 
Representatives and the Committees on Energy and 
Natural Resources, Agriculture, and Foreign Affairs 
of the Senate, that includes the results of the assess-
ments completed pursuant to this subsection. 
(b) LAND USE PLANS.—Before a resource manage-
ment plan under the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1701 et seq.) or a forest 
management plan under the National Forest Management 
Act is updated or completed, the Secretary or Secretary 
of Agriculture, as applicable, in consultation with the Di-
rector of the United States Geological Survey, shall— 
(1) review any quantitative and qualitative min-
eral resource assessment that was completed or up-
dated during the 10-year period ending on the date 
that the applicable land management agency pub-
277 
lishes a notice to prepare, revise, or amend a land 
use plan by the Director of the United States Geo-
logical Survey for the geographic area affected by 
the applicable management plan; 
(2) the Secretary, in consultation with the Sec-
retary of Commerce, the Secretary of Energy, and 
the Secretary of Defense, conducts an assessment of 
the economic, energy, strategic, and national secu-
rity value of mineral deposits identified in such min-
eral resource assessment; and 
(3) submit a report to the Committees on Nat-
ural Resources, Agriculture, Energy and Commerce, 
and Foreign Affairs of the House of Representatives 
and the Committees on Energy and Natural Re-
sources, Agriculture, and Foreign Affairs of the Sen-
ate, that includes the results of the assessment com-
pleted pursuant to this subsection. 
(c) NEW INFORMATION.—The Secretary shall provide 
recommendations to the President on appropriate meas-
ures to reduce unnecessary impacts that a withdrawal of 
Federal lands or waters from entry under the mining laws 
or operation of the mineral leasing and mineral materials 
laws may have on mineral exploration, development, and 
other mineral activities (including authorizing exploration 
and development of such mineral deposits) not later than
278 
180 days after the Secretary has notice that a resource 
assessment completed by the Director of the United States 
Geological Survey, in coordination with the State geologi-
cal surveys, determines that a previously undiscovered 
mineral deposit may be present in an area that has been 
withdrawn from entry under the mining laws or operation 
of the mineral leasing and mineral materials laws pursu-
ant to— 
(1) section 204 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1714); or 
(2) chapter 3203 of title 54, United States 
Code. 
SEC. 20402. PROHIBITIONS ON DELAY OF MINERAL DEVEL-
OPMENT OF CERTAIN FEDERAL LAND. 
(a) PROHIBITIONS.—Notwithstanding any other pro-
vision of law, the President shall not carry out any action 
that would pause, restrict, or delay the process for or 
issuance of any of the following on Federal land, unless 
such lands are withdrawn from disposition under the min-
eral leasing laws, including by administrative withdrawal: 
(1) New oil and gas lease sales, oil and gas 
leases, drill permits, or associated approvals or au-
thorizations of any kind associated with oil and gas 
leases.
279 
(2) New coal leases (including leases by applica-
tion in process, renewals, modifications, or expan-
sions of existing leases), permits, approvals, or au-
thorizations. 
(3) New leases, claims, permits, approvals, or 
authorizations for development or exploration of 
minerals. 
(b) PROHIBITION ON RESCISSION OF LEASES, PER-
MITS, OR CLAIMS.—The President, the Secretary, or Sec-
retary of Agriculture as applicable, may not rescind any 
existing lease, permit, or claim for the extraction and pro-
duction of any mineral under the mining laws or mineral 
leasing and mineral materials laws on National Forest 
System land or land under the jurisdiction of the Bureau 
of Land Management, unless specifically authorized by 
Federal statute, or upon the lessee, permittee, or claim-
ant’s failure to comply with any of the provisions of the 
applicable lease, permit, or claim. 
(c) MINERAL DEFINED.—In subsection (a)(3), the 
term ‘‘mineral’’ means any mineral of a kind that is 
locatable (including such minerals located on ‘‘lands ac-
quired by the United States’’, as such term is defined in 
section 2 of the Mineral Leasing Act for Acquired Lands) 
under the Act of May 10, 1872 (Chapter 152; 17 Stat. 
91).
280 
SEC. 20403. DEFINITIONS. 
In this subtitle: 
(1) FEDERAL LAND.—The term ‘‘Federal land’’ 
means— 
(A) National Forest System land; 
(B) public lands (as defined in section 103 
of the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1702)); 
(C) the outer Continental Shelf (as defined 
in section 2 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331)); and 
(D) land managed by the Secretary of En-
ergy. 
(2) 
PRESIDENT.—The 
term 
‘‘President’’ 
means— 
(A) the President; and 
(B) any designee of the President, includ-
ing— 
(i) the Secretary of Agriculture; 
(ii) the Secretary of Commerce; 
(iii) the Secretary of Energy; and 
(iv) the Secretary of the Interior. 
(3) PREVIOUSLY
UNDISCOVERED
DEPOSIT.— 
The term ‘‘previously undiscovered mineral deposit’’ 
means—
281 
(A) a mineral deposit that has been pre-
viously evaluated by the United States Geologi-
cal Survey and found to be of low mineral po-
tential, but upon subsequent evaluation is de-
termined by the United States Geological Sur-
vey to have significant mineral potential; or 
(B) a mineral deposit that has not pre-
viously been evaluated by the United States Ge-
ological Survey. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
Subtitle E—Ensuring 
Competitiveness on Federal Lands 
SEC. 20501. INCENTIVIZING DOMESTIC PRODUCTION. 
(a) OFFSHORE OIL AND GAS ROYALTY RATE.—Sec-
tion 8(a)(1) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘not less 
than 162⁄3 percent, but not more than 183⁄4 percent, 
during the 10-year period beginning on the date of 
enactment of the Act titled ‘An Act to provide for 
reconciliation pursuant to title II of S. Con. Res. 
14’, and not less than 162⁄3 percent thereafter,’’ 
each place it appears and inserting ‘‘not less than 
12.5 percent’’;
282 
(2) in subparagraph (C), by striking ‘‘not less 
than 162⁄3 percent, but not more than 183⁄4 percent, 
during the 10-year period beginning on the date of 
enactment of the Act titled ‘An Act to provide for 
reconciliation pursuant to title II of S. Con. Res. 
14’, and not less than 162⁄3 percent thereafter,’’ 
each place it appears and inserting ‘‘not less than 
12.5 percent’’; 
(3) in subparagraph (F), by striking ‘‘not less 
than 162⁄3 percent, but not more than 183⁄4 percent, 
during the 10-year period beginning on the date of 
enactment of the Act titled ‘An Act to provide for 
reconciliation pursuant to title II of S. Con. Res. 
14’, and not less than 162⁄3 percent thereafter,’’ and 
inserting ‘‘not less than 12.5 percent’’; and 
(4) in subparagraph (H), by striking ‘‘not less 
than 162⁄3 percent, but not more than 183⁄4 percent, 
during the 10-year period beginning on the date of 
enactment of the Act titled ‘An Act to provide for 
reconciliation pursuant to title II of S. Con. Res. 
14’, and not less than 162⁄3 percent thereafter,’’ and 
inserting ‘‘not less than 12.5 percent’’. 
(b) MINERAL LEASING ACT.— 
(1) ONSHORE OIL AND GAS ROYALTY RATES.—
283 
(A) LEASE OF OIL AND GAS LAND.—Sec-
tion 17 of the Mineral Leasing Act (30 U.S.C. 
226) is amended— 
(i) in subsection (b)(1)(A)— 
(I) by striking ‘‘not less than 
162⁄3’’ and inserting ‘‘not less than 
12.5’’; and 
(II) by striking ‘‘or, in the case 
of a lease issued during the 10-year 
period beginning on the date of enact-
ment of the Act titled ‘An Act to pro-
vide for reconciliation pursuant to 
title II of S. Con. Res. 14’, 162⁄3 per-
cent in amount or value of the pro-
duction removed or sold from the 
lease’’; and 
(ii) by striking ‘‘162⁄3 percent’’ each 
place it appears and inserting ‘‘12.5 per-
cent’’. 
(B) CONDITIONS FOR REINSTATEMENT.— 
Section 31(e)(3) of the Mineral Leasing Act (30 
U.S.C. 188(e)(3)) is amended by striking ‘‘20’’ 
inserting ‘‘162⁄3’’.
284 
(2) OIL AND GAS MINIMUM BID.—Section 17(b) 
of the Mineral Leasing Act (30 U.S.C. 226(b)) is 
amended— 
(A) in paragraph (1)(B), by striking ‘‘$10 
per acre during the 10-year period beginning on 
the date of enactment of the Act titled ‘An Act 
to provide for reconciliation pursuant to title II 
of S. Con. Res. 14’.’’ and inserting ‘‘$2 per 
acre for a period of 2 years from the date of 
the enactment of the Federal Onshore Oil and 
Gas Leasing Reform Act of 1987.’’; and 
(B) in paragraph (2)(C), by striking ‘‘$10 
per acre’’ and inserting ‘‘$2 per acre’’. 
(3) FOSSIL
FUEL
RENTAL
RATES.—Section 
17(d) of the Mineral Leasing Act (30 U.S.C. 
226(d)) is amended to read as follows: 
‘‘(d) All leases issued under this section, as amended 
by the Federal Onshore Oil and Gas Leasing Reform Act 
of 1987, shall be conditioned upon payment by the lessee 
of a rental of not less than $1.50 per acre per year for 
the first through fifth years of the lease and not less than 
$2 per acre per year for each year thereafter. A minimum 
royalty in lieu of rental of not less than the rental which 
otherwise would be required for that lease year shall be 
payable at the expiration of each lease year beginning on
285 
or after a discovery of oil or gas in paying quantities on 
the lands leased.’’. 
(4) EXPRESSION OF INTEREST FEE.—Section 
17 of the Mineral Leasing Act (30 U.S.C. 226) is 
further amended by repealing subsection (q). 
(5) ELIMINATION OF NONCOMPETITIVE LEAS-
ING.—Section 17 of the Mineral Leasing Act (30 
U.S.C. 226) is further amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(A)— 
(I) in the first sentence, by strik-
ing ‘‘paragraph (2)’’ and inserting 
‘‘paragraphs (2) and (3)’’; and 
(II) by adding at the end ‘‘Lands 
for which no bids are received or for 
which the highest bid is less than the 
national minimum acceptable bid shall 
be offered promptly within 30 days 
for leasing under subsection (c) of this 
section and shall remain available for 
leasing for a period of 2 years after 
the competitive lease sale.’’; and 
(ii) by adding at the end the fol-
lowing:
286 
‘‘(3)(A) If the United States held a vested fu-
ture interest in a mineral estate that, immediately 
prior to becoming a vested present interest, was sub-
ject to a lease under which oil or gas was being pro-
duced, or had a well capable of producing, in paying 
quantities at an annual average production volume 
per well per day of either not more than 15 barrels 
per day of oil or condensate, or not more than 
60,000 cubic feet of gas, the holder of the lease may 
elect to continue the lease as a noncompetitive lease 
under subsection (c)(1). 
‘‘(B) An election under this paragraph is effec-
tive— 
‘‘(i) in the case of an interest which vested 
after January 1, 1990, and on or before Octo-
ber 24, 1992, if the election is made before the 
date that is 1 year after October 24, 1992; 
‘‘(ii) in the case of an interest which vests 
within 1 year after October 24, 1992, if the 
election is made before the date that is 2 years 
after October 24, 1992; and 
‘‘(iii) in any case other than those de-
scribed in clause (i) or (ii), if the election is 
made prior to the interest becoming a vested 
present interest.’’;
287 
(B) by striking subsection (c) and insert-
ing the following: 
‘‘(c) LANDS SUBJECT
TO LEASING UNDER SUB-
SECTION (b); FIRST QUALIFIED APPLICANT.— 
‘‘(1) If the lands to be leased are not leased 
under subsection (b)(1) of this section or are not 
subject to competitive leasing under subsection 
(b)(2) of this section, the person first making appli-
cation for the lease who is qualified to hold a lease 
under this chapter shall be entitled to a lease of 
such lands without competitive bidding, upon pay-
ment of a non-refundable application fee of at least 
$75. A lease under this subsection shall be condi-
tioned upon the payment of a royalty at a rate of 
12.5 percent in amount or value of the production 
removed or sold from the lease. Leases shall be 
issued within 60 days of the date on which the Sec-
retary identifies the first responsible qualified appli-
cant. 
‘‘(2)(A) Lands (i) which were posted for sale 
under subsection (b)(1) of this section but for which 
no bids were received or for which the highest bid 
was less than the national minimum acceptable bid 
and (ii) for which, at the end of the period referred 
to in subsection (b)(1) of this section no lease has
288 
been issued and no lease application is pending 
under paragraph (1) of this subsection, shall again 
be available for leasing only in accordance with sub-
section (b)(1) of this section. 
‘‘(B) The land in any lease which is issued 
under paragraph (1) of this subsection or under sub-
section (b)(1) of this section which lease terminates, 
expires, is cancelled or is relinquished shall again be 
available for leasing only in accordance with sub-
section (b)(1) of this section.’’; and 
(C) by striking subsection (e) and inserting 
the following: 
‘‘(e) PRIMARY TERM.—Competitive and noncompeti-
tive leases issued under this section shall be for a primary 
term of 10 years: Provided, however, That competitive 
leases issued in special tar sand areas shall also be for 
a primary term of 10 years. Each such lease shall continue 
so long after its primary term as oil or gas is produced 
in paying quantities. Any lease issued under this section 
for land on which, or for which under an approved cooper-
ative or unit plan of development or operation, actual drill-
ing operations were commenced prior to the end of its pri-
mary term and are being diligently prosecuted at that time 
shall be extended for two years and so long thereafter as 
oil or gas is produced in paying quantities.’’.
290 
rate which shall be not less than 4 percentage points 
greater than the competitive royalty schedule then in 
force and used for royalty determination for com-
petitive leases issued pursuant to such section as de-
termined by the Secretary: Provided, That royalty 
on such reinstated lease shall be paid on all produc-
tion removed or sold from such lease subsequent to 
the termination of the original lease; 
‘‘(B) payment of back royalties and inclusion in 
a reinstated lease issued pursuant to the provisions 
of section 17(c) of this Act of a requirement for fu-
ture royalties at a rate not less than 162⁄3 percent: 
Provided, That royalty on such reinstated lease shall 
be paid on all production removed or sold from such 
lease subsequent to the cancellation or termination 
of the original lease; and’’; 
(C) in subsection (f)— 
(i) in paragraph (1), strike ‘‘in the 
same manner as the original lease issued 
pursuant to section 17’’ and insert ‘‘as a 
competitive or a noncompetitive oil and gas 
lease in the same manner as the original 
lease issued pursuant to subsection (b) or 
(c) of section 17 of this Act’’;
291 
(ii) by redesignating paragraphs (2) 
and (3) as paragraph (3) and (4), respec-
tively; and 
(iii) by inserting after paragraph (1) 
the following: 
‘‘(2) Except as otherwise provided in this sec-
tion, the issuance of a lease in lieu of an abandoned 
patented oil placer mining claim shall be treated as 
a noncompetitive oil and gas lease issued pursuant 
to section 17(c) of this Act.’’; 
(D) in subsection (g), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsections (d) and 
(f)’’; 
(E) by amending subsection (h) to read as 
follows: 
‘‘(h) ROYALTY REDUCTIONS.— 
‘‘(1) In acting on a petition to issue a non-
competitive oil and gas lease, under subsection (f) of 
this section or in response to a request filed after 
issuance of such a lease, or both, the Secretary is 
authorized to reduce the royalty on such lease if in 
his judgment it is equitable to do so or the cir-
cumstances warrant such relief due to uneconomic 
or other circumstances which could cause undue 
hardship or premature termination of production.
292 
‘‘(2) In acting on a petition for reinstatement 
pursuant to subsection (d) of this section or in re-
sponse to a request filed after reinstatement, or 
both, the Secretary is authorized to reduce the roy-
alty in that reinstated lease on the entire leasehold 
or any tract or portion thereof segregated for royalty 
purposes if, in his judgment, there are uneconomic 
or other circumstances which could cause undue 
hardship or premature termination of production; or 
because of any written action of the United States, 
its agents or employees, which preceded, and was a 
major consideration in, the lessee’s expenditure of 
funds to develop the property under the lease after 
the rent had become due and had not been paid; or 
if in the judgment of the Secretary it is equitable to 
do so for any reason.’’; 
(F) 
by 
redesignating 
subsections 
(f) 
through (i) as subsections (g) through (j), re-
spectively; and 
(G) by inserting after subsection (e) the 
following: 
‘‘(f) ISSUANCE OF NONCOMPETITIVE OIL AND GAS 
LEASE; CONDITIONS.—Where an unpatented oil placer 
mining claim validly located prior to February 24, 1920, 
which has been or is currently producing or is capable of
293 
producing oil or gas, has been or is hereafter deemed con-
clusively abandoned for failure to file timely the required 
instruments or copies of instruments required by section 
1744 of title 43, and it is shown to the satisfaction of 
the Secretary that such failure was inadvertent, justifi-
able, or not due to lack of reasonable diligence on the part 
of the owner, the Secretary may issue, for the lands cov-
ered by the abandoned unpatented oil placer mining claim, 
a noncompetitive oil and gas lease, consistent with the pro-
visions of section 17(e) of this Act, to be effective from 
the statutory date the claim was deemed conclusively 
abandoned. Issuance of such a lease shall be conditioned 
upon: 
‘‘(1) a petition for issuance of a noncompetitive 
oil and gas lease, together with the required rental 
and royalty, including back rental and royalty accru-
ing from the statutory date of abandonment of the 
oil placer mining claim, being filed with the 
Secretary- (A) with respect to any claim deemed 
conclusively abandoned on or before January 12, 
1983, on or before the one hundred and twentieth 
day after January 12, 1983, or (B) with respect to 
any claim deemed conclusively abandoned after Jan-
uary 12, 1983, on or before the one hundred and 
twentieth day after final notification by the Sec-
294 
retary or a court of competent jurisdiction of the de-
termination of the abandonment of the oil placer 
mining claim; 
‘‘(2) a valid lease not having been issued affect-
ing any of the lands covered by the abandoned oil 
placer mining claim prior to the filing of such peti-
tion: Provided, however, That after the filing of a 
petition for issuance of a lease under this subsection, 
the Secretary shall not issue any new lease affecting 
any of the lands covered by such abandoned oil plac-
er mining claim for a reasonable period, as deter-
mined in accordance with regulations issued by him; 
‘‘(3) a requirement in the lease for payment of 
rental, including back rentals accruing from the 
statutory date of abandonment of the oil placer min-
ing claim, of not less than $5 per acre per year; 
‘‘(4) a requirement in the lease for payment of 
royalty on production removed or sold from the oil 
placer mining claim, including all royalty on produc-
tion made subsequent to the statutory date the claim 
was deemed conclusively abandoned, of not less than 
121⁄2 percent; and 
‘‘(5) compliance with the notice and reimburse-
ment of costs provisions of paragraph (4) of sub-
section (e) but addressed to the petition covering the
295 
conversion of an abandoned unpatented oil placer 
mining claim to a noncompetitive oil and gas lease.’’. 
Subtitle F—Energy Revenue 
Sharing 
SEC. 20601. GULF OF MEXICO OUTER CONTINENTAL SHELF 
REVENUE. 
(a) DISTRIBUTION OF OUTER CONTINENTAL SHELF 
REVENUE TO GULF PRODUCING STATES.—Section 105 of 
the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘50’’ and 
inserting ‘‘37.5’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘50’’ and inserting 
‘‘62.5’’; 
(ii) in subparagraph (A), by striking 
‘‘75’’ and inserting ‘‘80’’; and 
(iii) in subparagraph (B), by striking 
‘‘25’’ and inserting ‘‘20’’; and 
(2) by striking subsection (f) and inserting the 
following: 
‘‘(f) TREATMENT OF AMOUNTS.—Amounts disbursed 
to a Gulf producing State under this section shall be treat-
ed as revenue sharing and not as a Federal award or grant
296 
for the purposes of part 200 of title 2, Code of Federal 
Regulations.’’. 
(b) EXEMPTION OF CERTAIN PAYMENTS FROM SE-
QUESTRATION.— 
(1) IN GENERAL.—Section 255(g)(1)(A) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended by 
inserting after ‘‘Payments to Social Security Trust 
Funds (28–0404–0–1–651).’’ the following: 
‘‘Payments to States pursuant to section 
105(a)(2)(A) of the Gulf of Mexico Energy Security 
Act of 2006 (Public Law 109–432; 43 U.S.C. 1331 
note) (014–5535–0–2–302).’’. 
(2) APPLICABILITY.—The amendment made by 
this subsection shall apply to any sequestration 
order issued under the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 900 et 
seq.) on or after the date of enactment of this Act. 
SEC. 20602. PARITY IN OFFSHORE WIND REVENUE SHAR-
ING. 
(a) PAYMENTS AND REVENUES.—Section 8(p)(2) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(p)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘(A) The 
Secretary’’ and inserting the following:
297 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the Secretary’’; 
(2) in subparagraph (B), by striking ‘‘(B) The 
Secretary’’ and inserting the following: 
‘‘(B) DISPOSITION
OF
REVENUES
FOR 
PROJECTS LOCATED WITHIN 3 NAUTICAL MILES 
SEAWARD OF STATE SUBMERGED LAND.—The 
Secretary’’; and 
(3) by adding at the end the following: 
‘‘(C) DISPOSITION OF REVENUES FOR OFF-
SHORE WIND PROJECTS IN CERTAIN AREAS.— 
‘‘(i) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) COVERED OFFSHORE WIND 
PROJECT.—The term ‘covered off-
shore wind project’ means a wind 
powered electric generation project in 
a wind energy area on the outer Con-
tinental Shelf that is not wholly or 
partially located within an area sub-
ject to subparagraph (B). 
‘‘(II) 
ELIGIBLE
STATE.—The 
term ‘eligible State’ means a State a 
point on the coastline of which is lo-
cated within 75 miles of the geo-
298 
graphic center of a covered offshore 
wind project. 
‘‘(III) QUALIFIED OUTER CONTI-
NENTAL
SHELF
REVENUES.—The 
term 
‘qualified 
outer 
Continental 
Shelf revenues’ means all royalties, 
fees, rentals, bonuses, or other pay-
ments from covered offshore wind 
projects carried out pursuant to this 
subsection on or after the date of en-
actment of this subparagraph. 
‘‘(ii) REQUIREMENT.— 
‘‘(I) IN
GENERAL.—The Sec-
retary of the Treasury shall deposit— 
‘‘(aa) 12.5 percent of quali-
fied outer Continental Shelf reve-
nues in the general fund of the 
Treasury; 
‘‘(bb) 37.5 percent of quali-
fied outer Continental Shelf reve-
nues in the North American Wet-
lands Conservation Fund; and 
‘‘(cc) 50 percent of qualified 
outer Continental Shelf revenues 
in a special account in the Treas-
299 
ury from which the Secretary 
shall disburse to each eligible 
State an amount determined pur-
suant to subclause (II). 
‘‘(II) ALLOCATION.— 
‘‘(aa) IN
GENERAL.—Sub-
ject to item (bb), for each fiscal 
year beginning after the date of 
enactment of this subparagraph, 
the amount made available under 
subclause (I)(cc) shall be allo-
cated to each eligible State in 
amounts (based on a formula es-
tablished by the Secretary by 
regulation) that are inversely 
proportional to the respective dis-
tances between the point on the 
coastline of each eligible State 
that is closest to the geographic 
center of the applicable leased 
tract and the geographic center 
of the leased tract. 
‘‘(bb) 
MINIMUM
ALLOCA-
TION.—The amount allocated to 
an eligible State each fiscal year
300 
under item (aa) shall be at least 
10 percent of the amounts made 
available under subclause (I)(cc). 
‘‘(cc) PAYMENTS TO COAST-
AL POLITICAL SUBDIVISIONS.— 
‘‘(AA) IN
GENERAL.— 
The Secretary shall pay 20 
percent 
of 
the 
allocable 
share of each eligible State, 
as determined pursuant to 
item (aa), to the coastal po-
litical subdivisions of the eli-
gible State. 
‘‘(BB) ALLOCATION.— 
The amount paid by the 
Secretary to coastal political 
subdivisions under subitem 
(AA) shall be allocated to 
each coastal political sub-
division in accordance with 
subparagraphs (B) and (C) 
of section 31(b)(4) of this 
Act. 
‘‘(iii) TIMING.—The amounts required 
to be deposited under subclause (I) of