TITLE II—ONSHORE 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Opportunities for the 
Nation and States to Harness Onshore Resources for En-
ergy Act’’ or the ‘‘ONSHORE Act’’. 
SEC. 202. COOPERATIVE FEDERALISM IN OIL AND GAS PER-
MITTING ON AVAILABLE FEDERAL LAND. 
(a) IN GENERAL.—The Mineral Leasing Act (30 
U.S.C. 181 et seq.) is amended— 
(1) by redesignating section 44 as section 47; 
and 
(2) by adding after section 43 the following new 
section: 
‘‘SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PER-
MITTING ON AVAILABLE FEDERAL LAND. 
‘‘(a) AUTHORIZATIONS.— 
‘‘(1) IN GENERAL.—Upon receipt of an applica-
tion under subsection (b), the Secretary may delegate 
to a State exclusive authority— 
‘‘(A) to issue an APD on available Federal 
land; or 
‘‘(B) to approve drilling plans on available 
Federal land. 
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‘‘(2) 
SUNDRY
NOTICES.—Any 
authorization 
under paragraph (1) may, upon the request of the 
State, include authority to issue sundry notices. 
‘‘(3) INSPECTION AND ENFORCEMENT.—Any au-
thorization under paragraph (1) may, upon the re-
quest of the State, include authorization to inspect 
and enforce an APD or drilling plan, as applicable. 
An authorization under paragraph (1)(A) shall not 
affect the ability of the Secretary to collect inspection 
fees under section 108(d) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 
1718(d)). 
‘‘(b) STATE APPLICATION PROCESS.— 
‘‘(1) SUBMISSION
OF
APPLICATION.—A State 
may submit an application under subparagraph (A) 
or (B) of subsection (a)(1) to the Secretary at such 
time and in such manner as the Secretary may re-
quire. 
‘‘(2) CONTENT OF APPLICATION.—An application 
submitted under this subsection shall include— 
‘‘(A) a description of the State program 
that the State proposes to administer under 
State law; and 
‘‘(B) a statement from the Governor or at-
torney general of such State that the laws of such 
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State provide adequate authority to carry out 
the State program. 
‘‘(3) 
DEADLINE
FOR
APPROVAL
OR
DIS-
APPROVAL.—Not later than 180 days after the date of 
receipt of an application under this subsection, the 
Secretary shall approve or disapprove such applica-
tion. 
‘‘(4) CRITERIA FOR APPROVAL.—The Secretary 
may approve an application received under this sub-
section only if the Secretary has— 
‘‘(A) determined that the State applicant 
would be at least as effective as the Secretary in 
issuing APDs or in approving drilling plans, as 
applicable; 
‘‘(B) determined that the State program of 
the State applicant— 
‘‘(i) complies with this Act; and 
‘‘(ii) provides for the termination or 
modification of an issued APD or approved 
drilling plan, as applicable, for cause, in-
cluding for— 
‘‘(I) the violation of any condition 
of the issued APD or approved drilling 
plan; 
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‘‘(II) obtaining the issued APD or 
approved drilling plan by misrepresen-
tation; or 
‘‘(III) failure to fully disclose in 
the application all relevant facts; 
‘‘(C) determined that the State applicant 
has sufficient administrative and technical per-
sonnel and sufficient funding to carry out the 
State program; 
‘‘(D) provided notice to the public, solicited 
public comment, and held a public hearing with-
in the State; 
‘‘(E) determined that approval of the appli-
cation would not result in decreased royalty pay-
ments owed to the United States under section 
35(a), except as provided in subsection (e) of 
that section; and 
‘‘(F) in the case of a State applicant seek-
ing authority under subsection (a)(3) to inspect 
and enforce APDs or drilling plans, as applica-
ble, entered into a memorandum of under-
standing with a State applicant that delineates 
the Federal and State responsibilities with re-
spect to such inspection and enforcement. 
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‘‘(5) 
DISAPPROVAL.—If 
the 
Secretary 
dis-
approves an application submitted under this sub-
section, then the Secretary shall— 
‘‘(A) notify, in writing, the State applicant 
of the reason for the disapproval and any revi-
sions or modifications necessary to obtain ap-
proval; and 
‘‘(B) provide any additional information, 
data, or analysis upon which the disapproval is 
based. 
‘‘(6) RESUBMITTAL OF APPLICATION.—A State 
may resubmit an application under this subsection at 
any time. 
‘‘(7) 
STATE
MEMORANDUM
OF
UNDER-
STANDING.—Before a State submits an application 
under this subsection, the Secretary may, at the re-
quest of a State, enter into a memorandum of under-
standing with the State regarding the proposed State 
program— 
‘‘(A) to delineate the Federal and State re-
sponsibilities for oil and gas regulations; 
‘‘(B) to provide technical assistance; and 
‘‘(C) to share best management practices. 
‘‘(c) ADMINISTRATIVE FEES FOR APDS.— 
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‘‘(1) IN GENERAL.—A State for which authority 
has been delegated under subsection (a)(1)(A) may 
collect a fee for each application for an APD that is 
submitted to the State. 
‘‘(2) NO COLLECTION OF FEE BY SECRETARY.— 
The Secretary may not collect a fee from the appli-
cant or from the State for an application for an APD 
that is submitted to a State for which authority has 
been delegated under subsection (a)(1)(A). 
‘‘(3) FEE
AMOUNT.—The fee collected under 
paragraph (1) shall be less than or equal to the 
amount of the fee collected by the Secretary under sec-
tion 35(d)(2)from States for which authority has not 
been delegated under subsection (a)(1)(A). 
‘‘(4) USE.—A State shall use 100 percent of the 
fees collected under this subsection for the administra-
tion of the approved State program of the State. 
‘‘(d) VOLUNTARY TERMINATION OF AUTHORITY.—A 
State may voluntarily terminate any authority delegated 
to such State under subsection (a) upon providing written 
notice to the Secretary 60 days in advance. Upon expira-
tion of such 60-day period, the Secretary shall resume any 
activities for which authority was delegated to the State 
under subsection (a). 
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‘‘(e) APPEAL OF DENIAL OF APPLICATION FOR APD 
OR APPLICATION FOR APPROVAL OF DRILLING PLAN.— 
‘‘(1) IN GENERAL.—If a State for which the Sec-
retary has delegated authority under subsection (a)(1) 
denies an application for an APD or an application 
for approval of a drilling plan, the applicant may 
appeal such decision to the Department of the Inte-
rior Office of Hearings and Appeals. 
‘‘(2) FEE ALLOWED.—The Secretary may charge 
the applicant a fee for the appeal referred to in para-
graph (1). 
‘‘(f) FEDERAL
ADMINISTRATION
OF
STATE
PRO-
GRAM.— 
‘‘(1) NOTIFICATION.—If the Secretary has reason 
to believe that a State is not administering or enforc-
ing an approved State program, the Secretary shall 
notify the relevant State regulatory authority of any 
possible deficiencies. 
‘‘(2) STATE RESPONSE.—Not later than 30 days 
after the date on which a State receives notification 
of a possible deficiency under paragraph (1), the 
State shall— 
‘‘(A) take appropriate action to correct the 
possible deficiency; and 
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‘‘(B) notify the Secretary of the action in 
writing. 
‘‘(3) DETERMINATION.— 
‘‘(A) IN GENERAL.—On expiration of the 
30-day period referred to in paragraph (2), if 
the Secretary determines that a violation of all 
or any part of an approved State program has 
resulted from a failure of the State to administer 
or enforce the approved State program of the 
State or that the State has not demonstrated its 
capability and intent to administer or enforce 
such a program, the Secretary shall issue public 
notice of such a determination. 
‘‘(B) APPEAL.—A State may appeal the de-
termination of the Secretary under subpara-
graph (A) in the applicable United States Dis-
trict Court. The Secretary may not resume ac-
tivities under paragraph (4) pending the resolu-
tion of the appeal. 
‘‘(4) RESUMPTION BY SECRETARY.—If the Sec-
retary has made a determination under paragraph 
(3), the Secretary shall resume any activities for 
which authority was delegated to the State during the 
period— 
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‘‘(A) beginning on the date on which the 
Secretary issues the public notice under para-
graph (3); and 
‘‘(B) ending on the date on which the Sec-
retary determines that the State will administer 
or enforce, as applicable, the approved State pro-
gram of the State. 
‘‘(5) STANDING.—States with approved regu-
latory programs shall have standing to sue the Sec-
retary for any action taken under this subsection. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) AVAILABLE
FEDERAL
LAND.—The term 
‘available Federal land’ means any Federal land 
that— 
‘‘(A) is located within the boundaries of a 
State; 
‘‘(B) is not held by the United States in 
trust for the benefit of a federally recognized In-
dian Tribe or a member of such an Indian 
Tribe; 
‘‘(C) is not a unit of the National Park 
System; 
‘‘(D) is not a unit of the National Wildlife 
Refuge System, except for the portion of such 
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unit for which oil and gas drilling is allowed 
under law; 
‘‘(E) is not a congressionally approved wil-
derness area under the Wilderness Act (16 U.S.C. 
1131 et seq.); and 
‘‘(F) has been identified as land available 
for lease or has been leased for the exploration, 
development, and production of oil and gas— 
‘‘(i) by the Bureau of Land Manage-
ment under— 
‘‘(I) a resource management plan 
under the process provided for in the 
Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1701 et seq.); or 
‘‘(II) an integrated activity plan 
with respect to the National Petroleum 
Reserve in Alaska; or 
‘‘(ii) by the Forest Service under a Na-
tional Forest management plan under the 
Forest and Rangeland Renewable Resources 
Planning Act of 1974 (16 U.S.C. 1600 et 
seq.). 
‘‘(2) DRILLING PLAN.—The term ‘drilling plan’ 
means a plan described under section 3162.3–1(e) of 
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title 43, Code of Federal Regulations (or successor reg-
ulation). 
‘‘(3) APD.—The term ‘APD’ means a permit— 
‘‘(A) that grants authority to drill for oil 
and gas; and 
‘‘(B) for which an application has been re-
ceived that contains— 
‘‘(i) a drilling plan; 
‘‘(ii) a surface use plan of operations 
described under section 3162.3–1(f) of title 
43, Code of Federal Regulations (or suc-
cessor regulation); 
‘‘(iii) evidence of bond coverage; and 
‘‘(iv) such other information as may be 
required by applicable orders and notices. 
‘‘(4) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Interior. 
‘‘(5) STATE.—The term ‘State’ means each of the 
several States. 
‘‘(6) STATE APPLICANT.—The term ‘State appli-
cant’ means a State that has submitted an applica-
tion under subsection (b). 
‘‘(7) STATE
PROGRAM.—The term ‘State pro-
gram’ means a program that provides for a State 
to— 
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‘‘(A) issue APDs or approve drilling plans, 
as applicable, on available Federal land; and 
‘‘(B) impose sanctions for violations of 
State laws, regulations, or any condition of an 
issued APD or approved drilling plan, as appli-
cable. 
‘‘(8) SUNDRY NOTICE.—The term ‘sundry notice’ 
means a written request— 
‘‘(A) to perform work not covered under an 
APD or drilling plan; or 
‘‘(B) for a change to operations covered 
under a an APD or drilling plan.’’. 
(b) INSPECTION FEES.—Section 108 of the Federal Oil 
and Gas Royalty Management Act of 1982 (30 U.S.C. 1718) 
is amended by adding at the end the following: 
‘‘(d) INSPECTION FEES FOR CERTAIN STATES.— 
‘‘(1) IN GENERAL.—The Secretary shall conduct 
inspections of operations under each oil and gas lease. 
The Secretary shall collect annual nonrefundable in-
spection fees in the amount specified in paragraph 
(2), from each designated operator under each oil and 
gas lease on Federal or Indian land that is subject to 
inspection under subsection (b) and that is located in 
a State for which the Secretary has delegated author-
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and which shall be available as provided under para-
graph (4). 
‘‘(4) AVAILABILITY OF FEES.—Notwithstanding 
section 3302 of title 31, United States Code, all 
amounts deposited in the Fund— 
‘‘(A) shall be credited as offsetting collec-
tions; 
‘‘(B) shall be available for expenditure for 
purposes of carrying out inspections of onshore 
oil and gas operations in those States for which 
the Secretary has delegated authority under sec-
tion 44(a)(1)(A) of the Mineral Leasing Act; 
‘‘(C) shall be available only to the extent 
provided for in advance in an appropriations 
Act; and 
‘‘(D) shall remain available until expended. 
‘‘(5) PAYMENT DUE DATE.—The Secretary shall 
require payment of any fee assessed under this sub-
section within 30 days after the Secretary provides 
notice of the assessment of the fee after the completion 
of an inspection. 
‘‘(6) PENALTY.—If a designated operator as-
sessed a fee under this subsection fails to pay the full 
amount of the fee as prescribed in this subsection, the 
Secretary may, in addition to utilizing any other ap-
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plicable enforcement authority, assess civil penalties 
against the operator under section 109 in the same 
manner as if this section were a mineral leasing law. 
‘‘(7) NOTIFICATION
TO
STATE
OF
NONCOMPLI-
ANCE.—If, on the basis of any inspection under sub-
section (b), the Secretary determines that an operator 
is in noncompliance with the requirements of mineral 
leasing laws and this chapter, the Secretary shall no-
tify the State of such noncompliance immediately.’’. 
(c) EXISTING AUTHORITIES.—Section 390(a) of the 
Energy Policy Act of 2005 (42 U.S.C. 15942(a)) is amend-
ed— 
(1) by striking ‘‘Action by the Secretary’’ and 
inserting ‘‘The Secretary’’; 
(2) by striking ‘‘with respect to any of the activi-
ties described in subsection (b) shall be subject to a re-
buttable presumption that the use of’’ and inserting 
‘‘shall apply’’; and 
(3) by striking ‘‘would apply if the activity’’ and 
inserting ‘‘for each action described in subsection (b) 
if the action’’. 
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SEC. 203. CONVEYANCE TO CERTAIN STATES OF PROPERTY 
INTEREST IN STATE SHARE OF ROYALTIES 
AND OTHER PAYMENTS. 
(a) IN GENERAL.—Section 35 of the Mineral Leasing 
Act (30 U.S.C. 191) is amended— 
(1) in the first sentence of subsection (a), by 
striking ‘‘shall be paid into the Treasury’’ and insert-
ing ‘‘shall, except as provided in subsection (e), be 
paid into the Treasury’’; 
(2) in subsection (c)(1), by inserting ‘‘and except 
as provided in subsection (e)’’ before ‘‘, any rentals’’; 
and 
(3) by adding at the end the following: 
‘‘(e) CONVEYANCE TO CERTAIN STATES OF PROPERTY 
INTEREST IN STATE SHARE.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of law, on request of a State and in lieu of 
any payments to the State under subsection (a), the 
Secretary of the Interior shall convey to the State all 
right, title, and interest in and to the percentage spec-
ified in that subsection for that State that would oth-
erwise be required to be paid into the Treasury under 
that subsection. 
‘‘(2) AMOUNT.—Notwithstanding any other pro-
vision of law, after a conveyance to a State under 
paragraph (1), any person shall pay directly to the 
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State any amount owed by the person for which the 
right, title, and interest has been conveyed to the 
State under this subsection. 
‘‘(3) NOTICE.—The Secretary of the Interior 
shall promptly provide to each holder of a lease of 
public land to which subsection (a) applies that is lo-
cated in a State to which right, title, and interest is 
conveyed under this subsection notice that— 
‘‘(A) the Secretary of the Interior has con-
veyed to the State all right, title, and interest in 
and to the amounts referred to in paragraph (1); 
and 
‘‘(B) the leaseholder is required to pay the 
amounts directly to the State. 
‘‘(4) REPORT.—A State that has received a con-
veyance under this subsection shall report monthly to 
the Office of Natural Resources Revenue of the De-
partment of the Interior the amount paid to such 
State pursuant to this subsection. 
‘‘(5) APPLICATION WITH RESPECT TO FOGRMA.— 
With respect to the interest conveyed to a State under 
this subsection from sales, bonuses, royalties (includ-
ing interest charges), and rentals collected under the 
Federal Oil and Gas Royalty Management Act of 
1983 (30 U.S.C. 1701 et seq.), this subsection shall 
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only apply with respect to States for which the Sec-
retary has delegated any authority under section 
44(a)(1).’’. 
(b) ADMINISTRATIVE COSTS.—Section 35(b) of the 
Mineral Leasing Act (30 U.S.C. 191(b)) is amended by 
striking ‘‘In determining’’ and inserting ‘‘Except with re-
spect to States for which the Secretary has delegated any 
authority under section 44(a)(1), in determining’’. 
(c) CONFORMING AMENDMENT.—Section 205(f) of the 
Federal Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1735(f)) is amended by striking ‘‘All’’ in the seventh 
sentence and inserting ‘‘Subject to subsection (e) of section 
35 of the Mineral Leasing Act (30 U.S.C. 191), all’’. 
SEC. 204. PERMITTING ON NON-FEDERAL SURFACE ESTATE. 
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is 
amended by inserting after section 44 (as added by section 
202(a)(2)) the following: 
‘‘SEC. 45. PERMITTING ON NON-FEDERAL SURFACE ESTATE. 
‘‘(a) PERMITS NOT REQUIRED FOR CERTAIN ACTIVI-
TIES ON NON-FEDERAL SURFACE ESTATE.—The following 
activities conducted on non-Federal surface estate shall not 
require a Bureau of Land Management drilling permit 
under the Federal Oil and Gas Royalty Management Act 
of 1982 (30 U.S.C. 1701 et seq.) or section 3164.1 of title 
43, Code of Federal Regulations (or successor regulation) 
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and shall not be considered a major Federal action under 
the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.): 
‘‘(1) Oil and gas operations for the exploration 
for or development or production of oil and gas in a 
lease or unit or communitization agreement in which 
the United States holds a mineral ownership interest 
of 50 percent or less. 
‘‘(2) Oil and gas operations that may have po-
tential drainage impacts, as determined by the Bu-
reau of Land Management, on oil and gas in which 
the United States holds a mineral ownership interest. 
‘‘(b) DOI NOTIFICATION.—The Secretary of the Inte-
rior shall provide to each State a map or list indicating 
Federal mineral ownership within that State. 
‘‘(c) STATE NOTIFICATION.—Each State that has 
issued an APD or approved a drilling plan that would im-
pact or extract oil and gas owned by the United States shall 
notify the Secretary of the Interior within 7 days of issuing 
an APD. 
‘‘(d) ROYALTIES.—Nothing in this section shall affect 
the amount of royalties due to the United States under this 
Act from the production of oil and gas or alter the Sec-
retary’s authority to conduct audits and collect civil pen-
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alties pursuant to the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1711 et seq.). 
‘‘(e) APPLICATION.—This section shall only apply with 
respect to States for which the Secretary has delegated any 
authority under section 44(a)(1).’’. 
SEC. 205. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC 
FRACTURING REGULATION. 
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is 
amended by inserting after section 45 (as added by section 
204) the following: 
‘‘SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC 
FRACTURING REGULATION. 
‘‘(a) IN GENERAL.—The Secretary of the Interior shall 
not enforce any Federal regulation, guidance, or permit re-
quirement regarding hydraulic fracturing relating to oil, 
gas, or geothermal production activities on or under any 
land in any State that has regulations, guidance, or permit 
requirements for that activity. 
‘‘(b) STATE AUTHORITY.—The Secretary of the Inte-
rior shall defer to State regulations, guidance, and permit 
requirements for all activities regarding hydraulic frac-
turing relating to oil, gas, or geothermal production activi-
ties on Federal land. 
‘‘(c) TRANSPARENCY OF STATE REGULATIONS.— 
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‘‘(1) IN GENERAL.—Each State shall submit to 
the Bureau of Land Management a copy of the regu-
lations of such State that apply to hydraulic frac-
turing operations on Federal land, including those 
that require disclosure of chemicals used in hydraulic 
fracturing operations. 
‘‘(2) AVAILABILITY.—The Secretary of the Inte-
rior shall make available to the public on the website 
of the Secretary the regulations submitted under 
paragraph (1). 
‘‘(d) TRIBAL AUTHORITY ON TRUST LAND.—The Sec-
retary of the Interior shall not enforce any Federal regula-
tion, guidance, or permit requirement with respect to hy-
draulic fracturing on any land held in trust or restricted 
status for the benefit of a federally recognized Indian Tribe 
or a member of such an Indian Tribe, except with the ex-
press consent of the beneficiary on whose behalf such land 
is held in trust or restricted status. 
‘‘(e) HYDRAULIC FRACTURING DEFINED.—In this sec-
tion the term ‘hydraulic fracturing’ means the process of 
creating small cracks, or fractures, in underground geologi-
cal formations for well stimulation purposes of bringing hy-
drocarbons into the wellbore and to the surface for cap-
ture.’’. 
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SEC. 206. REVIEW OF INTEGRATED ACTIVITY PLAN FOR THE 
NATIONAL PETROLEUM RESERVE IN ALASKA. 
The Secretary of the Interior shall— 
(1) conduct a review of the National Petroleum 
Reserve–Alaska Final Integrated Activity Plan/Envi-
ronmental Impact Statement, for which notice of 
availability was published in the Federal Register on 
December 28, 2012 (77 Fed. Reg. 76515), to deter-
mine which lands within the National Petroleum Re-
serve in Alaska should be made available for oil and 
gas leasing; and 
(2) make available the lands described in para-
graph (1) for oil and gas leasing. 
SEC. 207. PROTESTED LEASE SALES. 
Section 17(b)(1)(A) of the Mineral Leasing Act (30 
U.S.C. 226(b)(1)(A)) is amended by inserting ‘‘The Sec-
retary shall resolve any protest to a lease sale within 60 
days following such payment.’’ after ‘‘annual rental for the 
first lease year.’’. 
SEC. 208. CLARIFICATION REGARDING LIABILITY UNDER 
MIGRATORY BIRD TREATY ACT. 
Section 6 of the Migratory Bird Treaty Act (16 U.S.C. 
707) is amended by adding at the end the following: 
‘‘(e) This Act shall not be construed to prohibit any 
activity proscribed by section 2 of this Act that is accidental 
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or incidental to the presence or operation of an otherwise 
lawful activity.’’. 
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Union Calendar No. 781 
115TH CONGRESS 
2D SESSION 
H. R. 4239 
[Report No. 115–1000] 
A BILL 
To distribute revenues from oil and gas leasing on 
the outer Continental Shelf to certain coastal 
States, to require sale of approved offshore oil 
and gas leases, to promote offshore wind lease 
sales, and to empower States to manage the de-
velopment and production of oil and gas on avail-
able Federal land, and for other purposes. 
NOVEMBER 2, 2018 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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