I 
116TH CONGRESS 
1ST SESSION H. R. 4364 
To amend the Mineral Leasing Act to make certain adjustments to the 
fiscal terms for fossil fuel development and to make other reforms to 
improve returns to taxpayers for the development of Federal energy 
resources, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 17, 2019 
Mr. MCADAMS (for himself and Mr. ROONEY of Florida) 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 fiscal terms for fossil fuel development 
and to make other reforms to improve returns to tax-
payers for the development of Federal energy resources, 
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 ‘‘Taxpayer Fairness for 
Resource Development Act of 2019’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is the following: 
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Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Onshore fossil fuel royalty rates. 
Sec. 4. Minimum bid amount. 
Sec. 5. Onshore oil and gas rental rates. 
Sec. 6. Penalties. 
Sec. 7. Royalty relief. 
Sec. 8. Revision of Royalty Policy Committee charter. 
Sec. 9. Royalty in kind. 
Sec. 10. Amendments to definitions. 
Sec. 11. Compliance reviews. 
Sec. 12. Liability for royalty payments. 
Sec. 13. Recordkeeping. 
Sec. 14. Adjustments and refunds. 
Sec. 15. Obligation period. 
Sec. 16. Tolling agreements and subpoenas. 
Sec. 17. Appeals. 
Sec. 18. Assessments. 
Sec. 19. Pilot project on automatic data transfer. 
Sec. 20. Penalty for late or incorrect reporting of data. 
Sec. 21. Required recordkeeping for natural gas plants. 
Sec. 22. Shared penalties. 
Sec. 23. Applicability to other minerals. 
Sec. 24. Entitlements. 
Sec. 25. Royalties on all extracted methane. 
SEC. 3. ONSHORE FOSSIL FUEL ROYALTY RATES. 
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is 
amended— 
(1) in section 7— 
(A) by striking ‘‘121⁄2’’ and inserting 
‘‘18.75’’; and 
(B) by adding at the end the following: 
‘‘(d) PERIODIC EVALUATION OF ROYALTY RATES.— 
The Secretary shall establish a periodic process of evalu-
ating increases in royalty rates to achieve a fair market 
value return for the public. The process should include: 
‘‘(1) publishing annually the average, weighted 
by relative production per State, of the top fossil 
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fuel royalty rates charged by States for fossil fuels 
production on State-owned public lands; 
‘‘(2) evaluating triennially increases in the Fed-
eral fossil fuel royalty rates above the minimum 
rates required under this Act to match the produc-
tion-weighted average of State royalty rates. The tri-
ennial review shall include and benefit from public 
participation through written comment, public hear-
ings and other meetings open to all interested par-
ties; and 
‘‘(3) submitting the triennial evaluation to Con-
gress, including a summary of the views expressed in 
the public participation processes related to the eval-
uation.’’. 
(2) in section 17, by— 
(A) striking ‘‘12.5’’ each place such term 
appears and inserting ‘‘18.75’’; and 
(B) striking ‘‘121⁄2’’ each place such term 
appears and inserting ‘‘18.75’’; and 
(3) in section 31(e), by striking ‘‘162⁄3’’ both 
places such term appears and inserting ‘‘25’’. 
SEC. 4. MINIMUM BID AMOUNT. 
Section 17 of the Mineral Leasing Act (30 U.S.C. 
226) is amended— 
(1) in subsection (b)(1)(B)— 
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(A) by striking ‘‘$2 per acre’’ and insert-
ing ‘‘$5 per acre, except as otherwise provided 
by this paragraph’’; and 
(B) by striking ‘‘Federal Onshore Oil and 
Gas Leasing Reform Act of 1987’’ and insert-
ing ‘‘Taxpayer Fairness for Resource Develop-
ment Act of 2019’’; 
(2) in subsection (b)(2)(C), by striking ‘‘$2 per 
acre’’ and inserting ‘‘$5 per acre’’; and 
(3) by adding at the end the following: 
‘‘(q) 
INFLATION
ADJUSTMENT.—The 
Secretary 
shall— 
‘‘(1) by regulation, at least once every 4 years, 
adjust each of the dollar amounts that apply under 
subsections (b)(1)(B), (b)(2)(C), and (d) to reflect 
the change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of Labor 
Statistics; and 
‘‘(2) publish each such regulation in the Fed-
eral Register.’’. 
SEC. 5. ONSHORE OIL AND GAS RENTAL RATES. 
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is 
amended— 
(1) in section 17(d)— 
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(A) by striking ‘‘$1.50 per acre’’ and in-
serting ‘‘$3 per acre’’; and 
(B) by striking ‘‘$2 per acre’’ and insert-
ing ‘‘$5 per acre’’; and 
(2) in section 31(e), by striking ‘‘$10’’ and in-
serting ‘‘$20’’. 
SEC. 6. PENALTIES. 
(a) MINERAL LEASING ACT.—Section 41 of the Min-
eral Leasing Act (30 U.S.C. 195) is amended— 
(1) in subsection (b), by striking ‘‘$500,000’’ 
and inserting ‘‘$1,000,000’’; and 
(2) in subsection (c), by striking ‘‘$100,000’’ 
and inserting ‘‘$250,000’’. 
(b) FEDERAL OIL AND GAS ROYALTY MANAGEMENT 
ACT OF 1982.—The Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1701 et seq.) is amend-
ed— 
(1) in section 109— 
(A) in subsection (a), by striking ‘‘$500’’ 
and inserting ‘‘$1,500’’; 
(B) in subsection (b), by striking ‘‘$5,000’’ 
and inserting ‘‘$15,000’’; 
(C) 
in 
subsection 
(c), 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$25,000’’; and 
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(D) 
in 
subsection 
(d), 
by 
striking 
‘‘$25,000’’ and inserting ‘‘$75,000’’; and 
(2) in section 110, by striking ‘‘$50,000’’ and 
inserting ‘‘$150,000’’. 
(c) OUTER CONTINENTAL SHELF LANDS ACT.— 
(1) 
CIVIL
PENALTY, 
GENERALLY.—Section 
24(b) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1350(b)) is amended to read as follows: 
‘‘(b) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any person who fails to comply with any 
provision of this Act, or any term of a lease, license, 
or permit issued pursuant to this Act, or any regula-
tion or order issued under this Act, shall be liable 
for a civil administrative penalty of not more than 
$75,000 for each day of the continuance of such fail-
ure. The Secretary may assess, collect, and com-
promise any such penalty. 
‘‘(2) OPPORTUNITY FOR A HEARING.—No pen-
alty shall be assessed until the person charged with 
a violation has been given an opportunity for a hear-
ing. 
‘‘(3) ADJUSTMENT FOR INFLATION.—The Sec-
retary shall, by regulation at least every 3 years, ad-
just the penalty specified in this paragraph to reflect 
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any increases in the Consumer Price Index (all 
items, United States city average) as prepared by 
the Department of Labor. 
‘‘(4) THREAT OF HARM.—If a failure described 
in paragraph (1) constitutes or constituted a threat 
of harm or damage to life, property, any mineral de-
posit, or the marine, coastal, or human environment, 
a civil penalty of not more than $150,000 shall be 
assessed for each day of the continuance of the fail-
ure.’’. 
(2) KNOWING AND WILLFUL VIOLATIONS.—Sec-
tion 24(c) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1350(c)) is amended by striking 
‘‘$100,000’’ and inserting ‘‘$1,000,000’’. 
(3) OFFICERS
AND
AGENTS
OF
CORPORA-
TIONS.—Section 24(d) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1350(d)) is amended by 
striking ‘‘knowingly and willfully authorized, or-
dered, or carried out’’ and inserting ‘‘authorized, or-
dered, carried out, or through reckless disregard of 
the law caused’’. 
SEC. 7. ROYALTY RELIEF. 
(a) GULF OF MEXICO ROYALTY RELIEF.—The fol-
lowing provisions of the Energy Policy Act of 2005 (42 
U.S.C. 15801 et seq.) are hereby repealed: 
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(1) Section 344 (42 U.S.C. 15904) (relating to 
incentives for natural gas production from deep wells 
in the shallow waters of the Gulf of Mexico). 
(2) Section 345 (42 U.S.C. 15905) (relating to 
royalty relief for deep water production). 
(b) ALASKA ROYALTY RELIEF.— 
(1) PROVISIONS RELATING TO PLANNING AREAS 
OFFSHORE
ALASKA.—Section 8(a)(3)(B) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ‘‘and in the 
Planning Areas offshore Alaska’’ after ‘‘West lon-
gitude’’. 
(2) PROVISIONS RELATING TO NAVAL PETRO-
LEUM
RESERVE
IN
ALASKA.—Section 107 of the 
Naval Petroleum Reserves Production Act of 1976 
(42 U.S.C. 6506a) is amended— 
(A) in subsection (i)— 
(i) by striking ‘‘(1) IN GENERAL’’; and 
(ii) 
by 
striking 
paragraphs 
(2) 
through (6); and 
(B) by striking subsection (k). 
SEC. 8. REVISION OF ROYALTY POLICY COMMITTEE CHAR-
TER. 
Not later than one year after the date of enactment 
of this Act, or March 29, 2021, whichever is earlier, the 
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Secretary of the Interior shall revise the charter of the 
Royalty Policy Committee (as signed on March 29, 2017) 
to— 
(1) require that of the 6 members of such Com-
mittee who are representatives of the Governors of 
States, no more than 4 members may be representa-
tives of Governors of the same political party; 
(2) increase to 6 the number of members who 
are representatives of academia or the public, of 
whom— 
(A) 2 members shall be representatives of 
academia; 
(B) 2 members shall be representatives of 
public interest groups; and 
(C) 2 members shall be representatives of 
nonprofit environmental groups; and 
(3) require that for a person to be eligible to 
serve as a member who is a representative of a per-
son who is a mineral stakeholder or energy stake-
holder (or both) in Federal and Indian royalty pol-
icy, the employer of that member shall provide to the 
Secretary, who shall publish— 
(A) for the preceding 10-year period— 
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(i) aggregated information on all Fed-
eral royalty payments made by the em-
ployer, by year and by commodity; 
(ii) conclusions from compliance re-
views and audits conducted by Federal or 
State revenue collection entities; and 
(iii) a description of all enforcement 
actions taken against the employer regard-
ing payment of Federal or State royalties; 
and 
(B) records of— 
(i) prices charged by the employer for 
sales of minerals to captive affiliates of the 
employer; and 
(ii) prices charged by such affiliates 
for subsequent resales of such minerals. 
SEC. 9. ROYALTY IN KIND. 
(a) ONSHORE OIL AND GAS LEASE ROYALTIES.— 
Section 36 of the Mineral Leasing Act (30 U.S.C. 192) 
is amended by inserting ‘‘, except that the Secretary may 
not demand such payment in oil or gas if the amount of 
such payment would exceed the amount necessary to fill 
the strategic petroleum reserve’’ after ‘‘in oil or gas’’. 
(b) OFFSHORE OIL AND GAS LEASE ROYALTIES.— 
Section 27(a)(1) of the Outer Continental Shelf Lands Act 
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(43 U.S.C. 1353(a)) is amended by striking the period at 
the end and inserting ‘‘, except that the Secretary may 
not demand such payment in oil or gas if the amount of 
such payment would exceed the amount necessary to fill 
the strategic petroleum reserve.’’. 
SEC. 10. AMENDMENTS TO DEFINITIONS. 
Section 3 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1702) is amended— 
(1) in paragraph (20)(A), by striking ‘‘: Pro-
vided, That’’ and all that follows through ‘‘subject of 
the judicial proceeding’’; 
(2) in paragraph (20)(B), by striking ‘‘(with 
written notice to the lessee who designated the des-
ignee)’’; 
(3) in paragraph (23)(A), by striking ‘‘(with 
written notice to the lessee who designated the des-
ignee)’’; 
(4) by amending paragraph (24) to read as fol-
lows: 
‘‘(24) ‘designee’ means a person who pays, off-
sets, or credits monies, makes adjustments, requests 
and receives refunds, or submits reports with respect 
to payments a lessee must make pursuant to section 
102(a);’’; 
(5) in paragraph (25), in subparagraph (B)— 
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(A) by striking ‘‘(subject to the provisions 
of section 102(a) of this Act)’’; and 
(B) in clause (ii), by striking subclause 
(IV) and all that follows through the end of the 
subparagraph and inserting the following: 
‘‘(IV) any assignment, 
that arises from or relates to any lease, 
easement, right-of-way, permit, or other 
agreement regardless of form administered 
by the Secretary for, or any mineral leas-
ing law related to, the exploration, produc-
tion, and development of oil and gas or 
other energy resource on Federal lands or 
the Outer Continental Shelf;’’; 
(6) in paragraph (29), by inserting ‘‘or permit’’ 
after ‘‘lease’’; and 
(7) by striking ‘‘and’’ after the semicolon at the 
end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting a semicolon, 
and by adding at the end the following new para-
graphs: 
‘‘(34) ‘compliance review’ means an examina-
tion of a lessee’s lease accounts to compare one or 
all elements of the royalty equation (volume, value, 
royalty rate, and allowances) against anticipated ele-
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ments of the royalty equation to test for variances; 
and 
‘‘(35) ‘marketing affiliate’ means an affiliate of 
a lessee whose function is to acquire the lessee’s pro-
duction and to market that production.’’. 
SEC. 11. COMPLIANCE REVIEWS. 
Section 101 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1711) is amended by 
adding at the end the following new subsection: 
‘‘(d) The Secretary may, as an adjunct to audits of 
accounts for leases, conduct compliance reviews of ac-
counts. Such reviews shall not constitute nor substitute 
for audits of lease accounts. The Secretary shall imme-
diately refer any disparity uncovered in such a compliance 
review to a program auditor. The Secretary shall, before 
completion of a compliance review, provide notice of the 
review to designees whose obligations are the subject of 
the review.’’. 
SEC. 12. LIABILITY FOR ROYALTY PAYMENTS. 
Section 102(a) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1712(a)) is amended 
to read as follows: 
‘‘(a) LIABILITY FOR ROYALTY PAYMENTS.— 
‘‘(1) TIME
AND
MANNER
OF
PAYMENT.—In 
order to increase receipts and achieve effective col-
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lections of royalty and other payments, a lessee who 
is required to make any royalty or other payment 
under a lease, easement, right-of-way, permit, or 
other agreement, regardless of form, or under the 
mineral leasing laws, shall make such payment in 
the time and manner as may be specified by the Sec-
retary or the applicable delegated State. 
‘‘(2) DESIGNEE.—Any person who pays, offsets, 
or credits monies, makes adjustments, requests and 
receives refunds, or submits reports with respect to 
payments the lessee must make is the lessee’s des-
ignee under this Act. 
‘‘(3) LIABILITY.—Notwithstanding any other 
provision of this Act, a designee shall be liable for 
any payment obligation of any lessee on whose be-
half the designee pays royalty under the lease. The 
person owning operating rights in a lease and a per-
son owning legal record title in a lease shall be liable 
for that person’s pro rata share of payment obliga-
tions under the lease.’’. 
SEC. 13. RECORDKEEPING. 
Section 103(b) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1713(b)) is amended 
by striking ‘‘6’’ and inserting ‘‘7’’. 
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SEC. 14. ADJUSTMENTS AND REFUNDS. 
Section 111A of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1721a) is amend-
ed— 
(1) in subsection (a)— 
(A) by amending paragraph (3) to read as 
follows: 
‘‘(3)(A) An adjustment or a request for a re-
fund for an obligation may be made after the adjust-
ment period only upon written notice to and ap-
proval by the Secretary or the applicable delegated 
State, as appropriate, during an audit of the period 
which includes the production month for which the 
adjustment is being made. 
‘‘(B) Except as provided in subparagraph (C), 
no adjustment may be made with respect to an obli-
gation after the completion of an audit or compli-
ance review of such obligation unless such adjust-
ment is approved by the Secretary or the applicable 
delegated State, as appropriate. 
‘‘(C) If an overpayment is identified during an 
audit, the Secretary shall allow a credit in the 
amount of the overpayment.’’; and 
(B) in paragraph (4)— 
(i) by striking ‘‘six-year’’ and insert-
ing ‘‘four-year’’; and 
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(ii) by striking ‘‘period shall’’ and in-
serting ‘‘period may’’; and 
(2) in subsection (b)(1)— 
(A) in subparagraph (C), by striking 
‘‘and’’; 
(B) in subparagraph (D), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(E) is made within the adjustment period 
for that obligation.’’. 
SEC. 15. OBLIGATION PERIOD. 
Section 115(c) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1724(c)) is amended 
by adding at the end the following new paragraph: 
‘‘(3) ADJUSTMENTS.—In the case of an adjust-
ment under section 111A(a) in which a recoupment 
by the lessee results in an underpayment of an obli-
gation, the obligation becomes due on the date the 
lessee or its designee makes the adjustment.’’. 
SEC. 16. TOLLING AGREEMENTS AND SUBPOENAS. 
(a) TOLLING AGREEMENTS.—Section 115(d)(1) of 
the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1724(d)(1)) is amended by striking ‘‘(with no-
tice to the lessee who designated the designee)’’. 
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(b) SUBPOENAS.—Section 115(d)(2)(A) of the Fed-
eral Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1724(d)(2)(A)) is amended by striking ‘‘(with no-
tice to the lessee who designated the designee, which notice 
shall not constitute a subpoena to the lessee)’’. 
SEC. 17. APPEALS. 
Section 115(h) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1724(h)) is amend-
ed— 
(1) in paragraph (1), in the heading, by strik-
ing ‘‘33-MONTH’’ and inserting ‘‘48-MONTH’’; 
(2) by striking ‘‘33 months’’ each place it ap-
pears and inserting ‘‘48 months’’; and 
(3) by striking ‘‘33-month’’ each place it ap-
pears and inserting ‘‘48-month’’. 
SEC. 18. ASSESSMENTS. 
Section 116 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1724) is repealed. 
SEC. 19. PILOT PROJECT ON AUTOMATIC DATA TRANSFER. 
(a) PILOT PROJECT.—Not later than 2 years after 
the date of enactment of this Act, the Secretary of the 
Interior shall complete a pilot project with willing opera-
tors of oil and gas leases on the outer Continental Shelf 
(as such term is defined in the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.)) that assesses the 
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costs and benefits of automatic transmission of data re-
garding the volume and quality of oil and gas produced 
under Federal leases on the outer Continental Shelf in 
order to improve the production verification systems used 
to ensure accurate royalty collection and audit. 
(b) REPORT.—The Secretary shall submit to Con-
gress a report on findings and recommendations based on 
the pilot project not later than 3 years after the date of 
enactment of this Act. 
SEC. 20. PENALTY FOR LATE OR INCORRECT REPORTING 
OF DATA. 
(a) IN GENERAL.—The Secretary of the Interior shall 
issue regulations by not later than 1 year after the date 
of enactment of this Act that establish a civil penalty for 
late or incorrect reporting of data under the Federal Oil 
and Gas Royalty Management Act of 1982 (30 U.S.C. 
1701 et seq.). 
(b) AMOUNT.—The amount of the civil penalty shall 
be— 
(1) an amount (subject to paragraph (2)) that 
the Secretary determines is sufficient to ensure filing 
of data in accordance with that Act; and 
(2) not less than $10 for each failure to file 
correct data in accordance with that Act. 
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(c) CONTENT OF REGULATIONS.—Except as provided 
in subsection (b), the regulations issued under this section 
shall be substantially similar to section 216.40 of title 30, 
Code of Federal Regulations, as most recently in effect 
before the date of enactment of this Act. 
SEC. 21. REQUIRED RECORDKEEPING FOR NATURAL GAS 
PLANTS. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of the Interior shall publish final 
regulations with respect to required recordkeeping of nat-
ural gas measurement data as set forth in section 
250.1203 of title 30, Code of Federal Regulations (as in 
effect on the date of enactment of this Act), to include 
operators and other persons involved in the transporting, 
purchasing, or selling of gas under the requirements of 
that rule, under the authority provided in section 103 of 
the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1713). 
SEC. 22. SHARED PENALTIES. 
Section 206 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1736) is amended by 
striking ‘‘Any payments under this section shall be re-
duced by an amount equal to any payments provided or 
due to such State or Indian tribe under the cooperative 
agreement or delegation, as applicable, during the fiscal 
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year in which the civil penalty is received, up to the total 
amount provided or due for that fiscal year.’’. 
SEC. 23. APPLICABILITY TO OTHER MINERALS. 
Section 304 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1753) is amended by 
adding at the end the following new subsection: 
‘‘(e) APPLICABILITY TO OTHER MINERALS.— 
‘‘(1) Notwithstanding any other provision of 
law, sections 107, 109, and 110 of this Act and the 
regulations duly promulgated with respect thereto 
shall apply to any lease authorizing the development 
of coal or any other solid mineral on any Federal 
lands or Indian lands, to the same extent as if such 
lease were an oil and gas lease, on the same terms 
and conditions as those authorized for oil and gas 
leases. 
‘‘(2) Notwithstanding any other provision of 
law, sections 107, 109, and 110 of this Act and the 
regulations issued under such sections shall apply 
with respect to any lease, easement, right-of-way, or 
other agreement, regardless of form (including any 
royalty, rent, or other payment due thereunder)— 
‘‘(A) under section 8(k) or 8(p) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(k) and 1337(p)); or 
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‘‘(B) under the Geothermal Steam Act (30 
U.S.C. 1001 et seq.), to the same extent as if 
such lease, easement, right-of-way, or other 
agreement were an oil and gas lease on the 
same terms and conditions as those authorized 
for oil and gas leases. 
‘‘(3) For the purposes of this subsection, the 
term ‘solid mineral’ means any mineral other than 
oil, gas, and geo-pressured-geothermal resources, 
that is authorized by an Act of Congress to be pro-
duced from public lands (as that term is defined in 
section 103 of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1702)).’’. 
SEC. 24. ENTITLEMENTS. 
(a) DIRECTED RULEMAKING.—Not later than 180 
days after the date of enactment of this Act, the Secretary 
of the Interior shall publish final regulations prescribing 
when a Federal lessee or designee must report and pay 
royalties on— 
(1) the volume of oil and gas such lessee or des-
ignee produces or takes under a Federal lease or In-
dian lease; or 
(2) the volume of oil and gas that such lessee 
or designee is entitled to based on its ownership in-
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terest under a unitization agreement for Federal 
leases or Indian leases. 
(b) 100 PERCENT ENTITLEMENT REPORTING AND 
PAYING.—The Secretary shall give consideration to re-
quiring 100 percent entitlement reporting and paying 
based on Federal or Indian oil and gas lease ownership. 
SEC. 25. ROYALTIES ON ALL EXTRACTED METHANE. 
(a) ASSESSMENT ON ALL PRODUCTION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), royalties otherwise authorized or required 
under the mineral leasing laws (as that term is de-
fined in the Federal Oil and Gas Royalty Manage-
ment Act of 1982 (30 U.S.C. 1701 et seq.)) to be 
paid for gas shall be assessed on all gas produced 
under the mineral leasing laws, including— 
(A) gas used or consumed within the area 
of the lease tract for the benefit of the lease; 
and 
(B) all gas that is consumed or lost by 
venting, flaring, or fugitive releases through any 
equipment during upstream operations. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply with respect to— 
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(A) gas vented or flared for not longer 
than 48 hours in an acute emergency situation 
that poses a danger to human health; and 
(B) gas injected into the ground on a lease 
tract in order to enhance production of an oil 
or gas well or for some other purpose. 
(b) CONFORMING AMENDMENTS.— 
(1) MINERAL
LEASING
ACT.—The Mineral 
Leasing Act is amended— 
(A) in section 14 (30 U.S.C. 223), by add-
ing at the end the following: ‘‘Notwithstanding 
any other provision of this Act (including this 
section), royalty shall be assessed with respect 
to oil and gas, other than gas described in sec-
tion 124(a)(2) of the Sustainable Energy Devel-
opment Reform Act, without regard to whether 
oil or gas is removed or sold from the leased 
land.’’; 
(B) in section 17 (30 U.S.C. 226), by 
striking ‘‘removed or sold’’ each place it ap-
pears; 
(C) in section 22 (30 U.S.C. 251), by 
striking ‘‘sold or removed’’; and 
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(D) in section 31 (30 U.S.C. 188), by 
striking ‘‘removed or sold’’ each place it ap-
pears. 
(2) OUTER CONTINENTAL SHELF LANDS ACT.— 
The Outer Continental Shelf Lands Act is amend-
ed— 
(A) 
in 
section 
6(a)(8) 
(43 
U.S.C. 
1335(a)(8)), by striking ‘‘saved, removed, or 
sold’’ each place it appears; and 
(B) in section 8(a) (43 U.S.C. 1337(a))— 
(i) in paragraph (1), by striking 
‘‘saved, removed, or sold’’ each place it ap-
pears; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(9) Notwithstanding any other provision of 
this Act (including this section), royalty under this 
Act shall be assessed with respect to oil and gas, 
other than gas described in section 124(a)(2) of the 
Sustainable Energy Development Reform Act, with-
out regard to whether oil or gas is removed or sold 
from the leased land.’’. 
(c) APPLICATION.—The provisions of this section and 
the amendments made by this section shall apply only with 
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respect to leases issued on or after the date of the enact-
ment of this Act. 
Æ 
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