‘‘(7) STATE PROGRAM.—The term ‘State pro-
gram’ means a program that provides for a State 
to— 
‘‘(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 no-
tice’ 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 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 collect 
nonrefundable inspection fees in the amount speci-
fied 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 Sec-
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retary 
has 
delegated 
authority 
under 
section 
44(a)(1)(A) of the Mineral Leasing Act. 
‘‘(2) AMOUNT.—The amount of the fees col-
lected under paragraph (1) shall be— 
‘‘(A) $700 for each lease or unit or 
communitization agreement with no active or 
inactive wells, but with surface use, disturbance 
or reclamation; 
‘‘(B) $1,225 for each lease or unit or 
communitization agreement with 1 to 10 wells, 
with any combination of active or inactive wells; 
‘‘(C) $4,900 for each lease or unit or 
communitization agreement with 11 to 50 wells, 
with any combination of active or inactive wells; 
and 
‘‘(D) $9,800 for each lease or unit or 
communitization agreement with more than 50 
wells, with any combination of active or inactive 
wells. 
‘‘(3) ONSHORE ENERGY SAFETY FUND.—There 
is established in the Treasury a fund, to be known 
as the ‘Onshore Energy Safety Fund’ (referred to in 
this subsection as the ‘Fund’), into which shall be 
deposited all amounts collected as fees under para-
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graph (1) and which shall be available as provided 
under paragraph (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 
section 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 
subsection within 30 days after the Secretary pro-
vides notice of the assessment of the fee. 
‘‘(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 sub-
section, the Secretary may, in addition to utilizing 
any other applicable enforcement authority, assess 
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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 oper-
ator is in noncompliance with the requirements of 
mineral leasing laws and this chapter, the Secretary 
shall notify the State of such noncompliance imme-
diately.’’. 
(c) EXISTING AUTHORITIES.—Section 390(a) of the 
Energy Policy Act of 2005 (42 U.S.C. 15942(a)) is 
amended— 
(1) by striking ‘‘Action by the Secretary’’ and 
inserting ‘‘The Secretary’’; 
(2) by striking ‘‘with respect to any of the ac-
tivities described in subsection (b) shall be subject to 
a rebuttable presumption that the use of’’ and in-
serting ‘‘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 in-
serting ‘‘shall, except as provided in subsection (e), 
be paid into the Treasury’’; 
(2) in subsection (c)(1), by inserting ‘‘and ex-
cept as provided in subsection (e)’’ before ‘‘, any 
rentals’’; and 
(3) by adding at the end the following: 
‘‘(e) CONVEYANCE TO CERTAIN STATES OF PROP-
ERTY 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 per-
centage specified in that subsection for that State 
that would otherwise be required to be paid into the 
Treasury under that subsection. 
‘‘(2) AMOUNT.—Notwithstanding any other 
provision 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 
conveyance under this subsection shall report month-
ly to the Office of Natural Resources Revenue of the 
Department 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 (including interest charges), and rentals 
collected under the Federal Oil and Gas Royalty 
Management Act of 1983 (30 U.S.C. 1701 et seq.), 
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this subsection shall only apply with respect to 
States for which the Secretary has delegated any au-
thority 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 ES-
TATE. 
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 fol-
lowing activities conducted on non-Federal surface estate 
shall not require a Bureau of Land Management drilling 
permit under the Federal Oil and Gas Royalty Manage-
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ment Act of 1982 (30 U.S.C. 1701 et seq.) or section 
3164.1 of title 43, Code of Federal Regulations (or suc-
cessor regulation), 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 inter-
est. 
‘‘(b) DOI NOTIFICATION.—The Secretary of the In-
terior 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 
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this Act from the production of oil and gas or alter the 
Secretary’s authority to conduct audits and collect civil 
penalties pursuant to the Federal Oil and Gas Royalty 
Management 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 dele-
gated 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 per-
mit requirement 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. 
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‘‘(c) TRANSPARENCY OF STATE REGULATIONS.— 
‘‘(1) IN GENERAL.—Each State shall submit to 
the Bureau of Land Management a copy of the reg-
ulations of such State that apply to hydraulic frac-
turing operations on Federal land, including those 
that require disclosure of chemicals used in hydrau-
lic fracturing operations. 
‘‘(2) AVAILABILITY.—The Secretary of the In-
terior 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 
Secretary of the Interior shall not enforce any Federal reg-
ulation, guidance, or permit requirement with respect to 
hydraulic 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 express consent of the beneficiary on whose behalf 
such land is held in trust or restricted status. 
‘‘(e) HYDRAULIC FRACTURING DEFINED.—In this 
section the term ‘hydraulic fracturing’ means the process 
of creating small cracks, or fractures, in underground geo-
logical formations for well stimulation purposes of bring-
ing hydrocarbons into the wellbore and to the surface for 
capture.’’. 
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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. 
Æ 
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