I 
119TH CONGRESS 
1ST SESSION 
H. R. 526 
To amend the Mineral Leasing Act to make certain adjustments to the 
royalty rates for leases for oil and gas extraction on Federal land, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 16, 2025 
Mr. OGLES
(for himself, Mr. PFLUGER, Mr. WEBER
of Texas, Mr. 
BRECHEEN, Ms. HAGEMAN, Ms. MALOY, and Mr. WILLIAMS of Texas) 
introduced the following bill; which was referred to the Committee on 
Natural Resources 
A BILL 
To amend the Mineral Leasing Act to make certain adjust-
ments to the royalty rates for leases for oil and gas 
extraction on Federal land, 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 ‘‘Declaration of Energy 
Independence Act’’. 
SEC. 2. AMENDMENTS TO MINERAL LEASING ACT. 
(a) ONSHORE OIL AND GAS ROYALTY RATES.— 
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(1) LEASE OF OIL AND GAS LAND.—Section 17 
of the Mineral Leasing Act (30 U.S.C. 226) is 
amended— 
(A) by striking ‘‘162⁄3 percent’’ each place 
it appears and inserting ‘‘121⁄2 percent’’; and 
(B) in subsection (b)(1)(A), by striking 
‘‘or, in the case of’’ and all that follows through 
‘‘removed or sold from the lease. The’’ and in-
serting ‘‘. The’’. 
(2) CONDITIONS
FOR
REINSTATEMENT.—Sec-
tion 31(e)(3) of the Mineral Leasing Act (30 U.S.C. 
188(e)(3)) is amended by striking ‘‘20’’ each place 
it appears and inserting ‘‘162⁄3’’. 
(b) OIL AND GAS MINIMUM BID.—Section 17(b) of 
the Mineral Leasing Act (30 U.S.C. 226(b)) is amended— 
(1) 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 enactment of the Federal On-
shore Oil and Gas Leasing Reform Act of 1987’’; 
and 
(2) in paragraph (2)(C), by striking ‘‘$10 per 
acre’’ and inserting ‘‘$2 per acre’’. 
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bid is less than the national minimum ac-
ceptable bid shall be offered promptly with-
in 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.’’ after the period at 
the end; and 
(B) by adding at the end the following: 
‘‘(3)(A) If the United States held a vested future in-
terest in a mineral estate that, immediately prior to be-
coming a vested present interest, was subject to a lease 
under which oil or gas was being produced, 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 effective— 
‘‘(i) in the case of an interest which vested after 
January 1, 1990, and on or before the date of enact-
ment of this paragraph, if the election is made be-
fore the date that is 1 year after the date of enact-
ment of this paragraph; 
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‘‘(ii) in the case of an interest which vests with-
in 1 year after the date of enactment of this para-
graph, if the election is made before the date that 
is 2 years after the date of enactment of this para-
graph; and 
‘‘(iii) in any case other than those described in 
clause (i) or (ii), if the election is made prior to the 
interest becoming a vested present interest. 
‘‘(C) Notwithstanding the consent requirement ref-
erenced in section 3 of the Mineral Leasing Act for Ac-
quired Lands (30 U.S.C. 352), the Secretary shall issue 
a noncompetitive lease under subsection (c)(1) to a holder 
who makes an election under subparagraph (A) and who 
is qualified to hold a lease under this Act. Such lease shall 
be subject to all terms and conditions under this Act that 
are applicable to leases issued under subsection (c)(1). 
‘‘(D) A lease issued pursuant to this paragraph shall 
continue so long as oil or gas continues to be produced 
in paying quantities. 
‘‘(E) This paragraph shall apply only to those lands 
under the administration of the Secretary of Agriculture 
where the United States acquired an interest in such lands 
pursuant to the Act of March 1, 1911 (36 Stat. 961).’’; 
(2) by striking subsection (c) and inserting the 
following: 
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‘‘(c)(1) If the lands to be leased are not leased under 
subsection (b)(1) of this section or are not subject to com-
petitive leasing under subsection (b)(2) of this section, the 
person first making application for the lease who is quali-
fied to hold a lease under this Act 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 conditioned 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 Secretary identifies the first responsible 
qualified applicant. 
‘‘(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 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 subsection 
(b)(1) of this section which lease terminates, expires, is 
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cancelled or is relinquished shall again be available for 
leasing only in accordance with subsection (b)(1) of this 
section.’’; and 
(3) by striking subsection (e) and inserting the 
following: 
‘‘(e) Competitive and noncompetitive leases issued 
under this section shall be for a primary term of 10 years: 
Provided, however, That competitive leases issued in spe-
cial tar sand areas shall also be for a primary term of 
ten years. Each such lease shall continue so long after its 
primary term as oil or gas is produced in paying quan-
tities. Any lease issued under this section for land on 
which, or for which under an approved cooperative or unit 
plan of development or operation, actual drilling oper-
ations were commenced prior to the end of its primary 
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.’’. 
(f) CONFORMING AMENDMENTS.—Section 31 of the 
Mineral Leasing Act (30 U.S.C. 188) is amended— 
(1) in subsection (d)(1), by inserting ‘‘or sec-
tion 17(c) of this Act’’ after ‘‘pursuant to section 
17(b)’’; 
(2) in subsection (e)— 
(A) in paragraph (2)— 
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(i) by inserting ‘‘either’’ after ‘‘rentals 
and’’; and 
(ii) by inserting ‘‘or the inclusion in a 
reinstated lease issued pursuant to the pro-
visions of section 17(c) of this Act of a re-
quirement that future rentals shall be at a 
rate not less than $5 per acre per year, 
all’’ after ‘‘per acre per year,’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘(3) payment’’ and in-
serting the following: 
‘‘(3)(A) payment’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(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’’; 
(3) by redesignating subsections (f) through (i) 
as subsections (g) through (j), respectively; 
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(4) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) Where an unpatented oil placer mining claim val-
idly located prior to February 24, 1920, which has been 
or is currently producing or is capable of producing oil 
or gas, has been or is hereafter deemed conclusively aban-
doned for failure to file timely the required instruments 
or copies of instruments required by section 314 of the 
Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1744), and it is shown to the satisfaction of the 
Secretary that such failure was inadvertent, justifiable, or 
not due to lack of reasonable diligence on the part of the 
owner, the Secretary may issue, for the lands covered by 
the abandoned unpatented oil placer mining claim, a non-
competitive oil and gas lease, consistent with the provi-
sions of section 17(e) of this Act, to be effective from the 
statutory date the claim was deemed conclusively aban-
doned. 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 Sec-
retary— 
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‘‘(A) with respect to any claim deemed 
conclusively abandoned on or before the date of 
enactment of the Federal Oil and Gas Royalty 
Management Act of 1982, on or before the one 
hundred and twentieth day after such date of 
enactment, or 
‘‘(B) with respect to any claim deemed 
conclusively abandoned after such date of enact-
ment, on or before the one hundred and twen-
tieth day after final notification by the Sec-
retary or a court of competent jurisdiction of 
the determination 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 pe-
tition 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 
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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 
conversion of an abandoned unpatented oil placer 
mining claim to a noncompetitive oil and gas lease.’’; 
(5) in subsection (g) (as so redesignated)— 
(A) in paragraph (1), by striking ‘‘in the 
same manner as the original lease issued pursu-
ant to section 17’’ and inserting ‘‘as a competi-
tive or a noncompetitive oil and gas lease in the 
same manner as the original lease issued pursu-
ant to section 17(b) or 17(c) of this Act’’; 
(B) by redesignating paragraphs (2) and 
(3) as paragraphs (3) and (4), respectively; 
(C) by inserting after paragraph (1) the 
following: 
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‘‘(2) Except as otherwise provided in this section, 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.’’; and 
(D) in paragraph (3) (as so redesignated), 
by inserting ‘‘applicable to leases issued under 
subsection 17(c) of this Act (30 U.S.C. 
226(c))’’ after ‘‘this section,’’; 
(6) in subsection (h) (as so redesignated), by 
striking ‘‘subsection (d)’’ and inserting ‘‘subsections 
(d) and (f) of this section’’; and 
(7) by striking subsection (i) (as so redesig-
nated) and inserting the following: 
‘‘(i)(1) In acting on a petition to issue a noncompeti-
tive 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 circumstances warrant such relief due to un-
economic or other circumstances which could cause undue 
hardship or premature termination of production. 
‘‘(2) In acting on a petition for reinstatement pursu-
ant to subsection (d) of this section or in response to a 
request filed after reinstatement, or both, the Secretary 
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is authorized to reduce the royalty in that reinstated lease 
on the entire leasehold or any tract or portion thereof seg-
regated 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 de-
velop the property under the lease after the rent had be-
come due and had not been paid; or if in the judgment 
of the Secretary it is equitable to do so for any reason.’’. 
Æ 
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