ONSHORE Act
Bill: S.4229 | Sponsor: Sen. Barrasso, John (R-WY)
Policy area: Energy

Summary:
Opportunities for the Nation and States to Harness Onshore Resources for Energy Act or the ONSHORE Act
This bill makes various changes to expand and otherwise addresses onshore oil and gas resources on federal land and non-federal surface estates.
Specifically, the bill requires, subject to some limits, the Department of the Interior and the Forest Service to lease certain public lands and Forest System land with known or potential oil or gas deposits. (Current law authorizes but does not require leasing.)
Other changes in the bill include (1) allowing Interior to delegate authority over certain federal permitting and other regulatory responsibilities for oil and gas leases to states; (2) exempting some oil and gas activities conducted on non-federal surface estates from certain permitting and environmental review requirements; and (3) requiring deference to state regulations, guidance, and permit requirements for all activities regarding hydraulic fracturing (a type of process used to extract underground energy resources) on federal land.

To empower States to manage the development and production of oil and 
         gas on available Federal land, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Opportunities for the Nation and 
States to Harness Onshore Resources for Energy Act'' or the ``ONSHORE 
Act''.

SEC. 2. CLARIFICATION OF AUTHORITY.

    Section 17(a) of the Mineral Leasing Act (30 U.S.C. 226(a)) is 
amended by striking ``may be leased by the Secretary.'' and inserting 
the following: ``shall be leased by the Secretary of the Interior, or 
for National Forest System land, the Secretary of Agriculture, unless--
    ``(1) otherwise excluded under this Act; or
    ``(2) the Secretary of the Interior or the Secretary of 
Agriculture, as applicable, shows good cause for why such land should 
not be leased.''.

SEC. 3. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING 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:

``SEC. 44. COOPERATIVE FEDERALISM IN OIL AND GAS PERMITTING ON 
              AVAILABLE FEDERAL LAND.

    ``(a) Definitions.--In this section:
            ``(1) 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 received 
                that includes--
                            ``(i) a drilling plan;
                            ``(ii) a surface use plan of operations 
                        described in section 3162.3-1(f) of title 43, 
                        Code of Federal Regulations (or a successor 
                        regulation); and
                            ``(iii) evidence of bond coverage.
            ``(2) 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 Indian Tribe or a 
                member of a federally recognized Indian Tribe;
                    ``(C) is not a unit of the National Park System;
                    ``(D) is not a unit of the National Wildlife Refuge 
                System, other than a unit of the National Wildlife 
                Refuge System for which oil and gas drilling is allowed 
                under law;
                    ``(E) is not a congressionally approved wilderness 
                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 Management 
                        under--
                                    ``(I) a resource management plan 
                                under 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-Alaska; or
                            ``(ii) by the Forest Service under a 
                        National Forest management plan under the 
                        Forest and Rangeland Renewable Resources 
                        Planning Act of 1974 (16 U.S.C. 1600 et seq.).
            ``(3) Drilling plan.--The term `drilling plan' means a plan 
        described in section 3162.3-1(e) of title 43, Code of Federal 
        Regulations (or a successor regulation).
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(5) State applicant.--The term `State applicant' means a 
        State that submits an application under subsection (c).
            ``(6) State program.--The term `State program' means a 
        program in a State under which the State may--
                    ``(A) issue APDs, approve drilling plans, approve 
                sundry notices, approve suspensions of operations or 
                production, or grant rights-of-way 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 applicable.
            ``(7) 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 an 
                APD or drilling plan.
            ``(8) Suspension of operations or production.--The term 
        `suspension of operations or production' means a suspension of 
        operations or production described in section 3103.4-4 of title 
        43, Code of Federal Regulations (or successor regulations).
    ``(b) Authorizations.--
            ``(1) In general.--On receipt of an application under 
        subsection (c), the Secretary may delegate to a State exclusive 
        authority--
                    ``(A) to issue an APD on available Federal land;
                    ``(B) to approve drilling plans on available 
                Federal land;
                    ``(C) to approve sundry notices relating to work 
                performed on available Federal land;
                    ``(D) to approve suspensions of operations or 
                production; and
                    ``(E) to grant rights-of-way in accordance with 
                paragraph (3).
            ``(2) Inspection and enforcement.--On request of a State 
        for which authority is delegated under paragraph (1), the 
        authority delegated may include the authority to inspect and 
        enforce an APD, drilling plan, or right-of-way, as applicable.
            ``(3) Rights-of-way.--The authority to grant a right-of-way 
        delegated to a State under paragraph (1)(E) shall be the 
        authority of the Secretary of the Interior or the Secretary of 
        Agriculture, as applicable, under section 501 of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1761), to 
        grant, issue, or renew rights-of-way over, upon, under, or 
        through available Federal land for the purpose of mineral 
        development.
            ``(4) Effect of federal environmental reviews.--A State for 
        which authority is delegated under paragraph (1) shall continue 
        processing applications for an APD, applications for approval 
        of a drilling plan, applications for approval of a sundry 
        notice, and applications to grant a right-of-way, regardless of 
        whether the Federal Government is carrying out any review 
        related to the APD, drilling plan, sundry notice, or right-of-
        way under the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.) or the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.).
    ``(c) State Application Process.--
            ``(1) Submission of application.--A State seeking a 
        delegation of authority under subparagraph (A), (B), (C), (D), 
        or (E) of subsection (b)(1) shall submit to the Secretary an 
        application at such time, in such manner, and containing such 
        information as the Secretary may require, including--
                    ``(A) a description of the State program that the 
                State proposes to administer under State law; and
                    ``(B) a statement from the Governor or attorney 
                general of the State that demonstrates that the laws of 
                the State provide adequate authority to carry out the 
                State program.
            ``(2) Deadline for approval or disapproval.--Not later than 
        180 days after the date on which an application under paragraph 
        (1) is received, the Secretary shall approve or disapprove the 
        application.
            ``(3) Requirements for approval.--
                    ``(A) In general.--The Secretary may approve an 
                application received under paragraph (1) only if the 
                Secretary determines that--
                            ``(i) the State applicant would be at least 
                        as effective as the Secretary in issuing APDs, 
                        approving drilling plans, approving sundry 
                        notices, approving suspensions of operations or 
                        production, or granting rights-of-way, as 
                        applicable;
                            ``(ii) the State program of the State 
                        applicant--
                                    ``(I) complies with this Act; and
                                    ``(II) provides for the termination 
                                or modification of an issued APD, 
                                approved drilling plan, approved sundry 
                                notice, approved suspension of 
                                operations or production, or granted 
                                right-of-way, as applicable, for cause, 
                                including for--
                                            ``(aa) the violation of any 
                                        condition of the issued APD, 
                                        approved drilling plan, 
                                        approved sundry notice, 
                                        approved suspension of 
                                        operations or production, or 
                                        granted right-of-way;
                                            ``(bb) obtaining the issued 
                                        APD, approved drilling plan, 
                                        approved sundry notice, 
                                        approved suspension of 
                                        operations or production, or 
                                        granted right-of-way by 
                                        misrepresentation; or
                                            ``(cc) failure to fully 
                                        disclose in the application all 
                                        relevant facts;
                            ``(iii) the State applicant has sufficient 
                        administrative and technical personnel and 
                        sufficient funding to carry out the State 
                        program; and
                            ``(iv) approval of the application would 
                        not result in decreased royalty payments owed 
                        to the United States under subsection (a) of 
                        section 35, except as provided in subsection 
                        (e) of that section.
                    ``(B) Memoranda of understanding.--With respect to 
                a State applicant seeking authority under subsection 
                (b)(2)(A) to inspect and enforce APDs, drilling plans, 
                or rights-of-way, as applicable, before approving the 
                application of the State applicant, the Secretary shall 
                enter into a memorandum of understanding with the State 
                applicant under paragraph (6) that describes the 
                Federal and State responsibilities with respect to the 
                inspection and enforcement.
                    ``(C) Public notice.--Before approving an 
                application received under paragraph (1), the Secretary 
                shall--
                            ``(i) provide public notice of the 
                        application;
                            ``(ii) solicit public comment for the 
                        application; and
                            ``(iii) hold a public hearing for the 
                        application in the State.
            ``(4) Disapproval.--If the Secretary disapproves an 
        application submitted under paragraph (1), the Secretary shall 
        provide to the State applicant written notification of--
                    ``(A) the reasons for the disapproval, including 
                any information, data, or analysis on which the 
                disapproval is based; and
                    ``(B) any revisions or modifications necessary to 
                obtain approval.
            ``(5) Resubmittal of application.--A State may resubmit an 
        application under paragraph (1) at any time.
            ``(6) State memoranda of understanding.--Before a State 
        submits an application under paragraph (1), the Secretary, on 
        request of the State, may enter into a memorandum of 
        understanding with the State regarding the proposed State 
        program--
                    ``(A) to describe the Federal and State 
                responsibilities for oil and gas regulations;
                    ``(B) to provide technical assistance; and
                    ``(C) to share best management practices.
    ``(d) Administrative Fees for APDs.--
            ``(1) In general.--A State for which authority has been 
        delegated under subsection (b)(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 applicant or from the State for an 
        application for an APD that is submitted to a State for which 
        authority has been delegated under subsection (b)(1)(A).
            ``(3) Use.--A State shall use 100 percent of the fees 
        collected under this subsection for the administration of the 
        approved State program of the State.
    ``(e) Voluntary Termination of Authority.--
            ``(1) In general.--After providing written notice to the 
        Secretary, a State may voluntarily terminate any authority 
        delegated to the State under subsection (b)(1) on expiration of 
        the 60-day period beginning on the date on which the Secretary 
        receives the written notice.
            ``(2) Resumption by secretary.--On termination of the 
        authority delegated to a State under paragraph (1), the 
        Secretary shall resume any activities for which authority was 
        delegated to the State under subsection (b)(1).
    ``(f) Appeal of Denial of Application.--If a State for which the 
Secretary has delegated authority under subsection (b)(1) denies an 
application submitted under subsection (c)(1), the applicant may appeal 
the decision to the Office of Hearings and Appeals of the Department of 
the Interior.
    ``(g) Federal Administration of State Program.--
            ``(1) Notification.--If the Secretary has reason to believe 
        that a State is not administering or enforcing 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
                    ``(B) notify the Secretary of the action in 
                writing.
            ``(3) Determination.--
                    ``(A) In general.--On expiration of the 30-day 
                period described in paragraph (2), the Secretary shall 
                issue public notice of any determination of the 
                Secretary that--
                            ``(i) 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
                            ``(ii) the State has not demonstrated the 
                        capability and intent of the State to 
                        administer or enforce the State program of the 
                        State.
                    ``(B) Appeal.--A State may appeal the determination 
                of the Secretary under subparagraph (A) in the 
                applicable United States District Court.
                    ``(C) Resumption by secretary pending appeal.--The 
                Secretary may not resume activities under paragraph (4) 
                if an appeal under subparagraph (B) is pending.
            ``(4) Resumption by secretary.--Except as provided in 
        paragraph (3)(C), if the Secretary has made a determination 
        under paragraph (3)(A), the Secretary shall resume any 
        activities for which authority was delegated to the State 
        during the period--
                    ``(A) beginning on the date on which the Secretary 
                issues the public notice under paragraph (3)(A); and
                    ``(B) ending on the date on which the Secretary 
                determines that the State may administer or enforce, as 
                applicable, the approved State program of the State.
            ``(5) Standing.--A State with an approved regulatory 
        program shall have standing to sue the Secretary for any action 
        taken under this subsection.''.
    (b) 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 activities 
        described in subsection (b) shall be subject to a rebuttable 
        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''.

SEC. 4. PERMITTING ON A 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 3(a)(2)) the following:

``SEC. 45. PERMITTING ON A NON-FEDERAL SURFACE ESTATE.

    ``(a) Definitions.--In this section:
            ``(1) Drainage.--The term `drainage', with respect to a 
        non-Federal surface estate, means the migration of any 
        hydrocarbon under the subsurface of the non-Federal surface 
        estate.
            ``(2) Unit.--The term `unit' means a State-regulated 
        drilling and spacing unit.
    ``(b) Permits Not Required for Certain Activities on a Non-Federal 
Surface Estate.--The following activities conducted on a non-Federal 
surface estate shall not require a permit from the Bureau of Land 
Management 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 potential 
        drainage impacts, as determined by the Bureau of Land 
        Management, on oil and gas in which the United States holds a 
        mineral ownership interest.
    ``(c) DOI Notification.--The Secretary of the Interior shall 
provide to each State a map or list indicating Federal mineral 
ownership within that State.
    ``(d) State Notification.--Each State with an approved permit to 
drill or drilling plan that would impact or extract oil and gas owned 
by the Federal Government shall notify the Secretary of the Interior of 
the approved permit to drill or drilling plan.
    ``(e) Royalties.--Nothing in this section affects the amount of 
royalties due to the United States under this Act from the production 
of oil and gas.''.

SEC. 5. 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 4) the following:

``SEC. 46. STATE AND TRIBAL AUTHORITY FOR HYDRAULIC FRACTURING 
              REGULATION.

    ``(a) Definitions.--In this section:
            ``(1) Hydraulic fracturing.--The term `hydraulic 
        fracturing' means the process of creating small cracks or 
        fractures in underground geological formations for well 
        stimulation purposes of bringing hydrocarbons into the wellbore 
        and to the surface for capture.
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
    ``(b) Enforcement of Federal Regulations.--The Secretary shall not 
enforce any Federal regulation, guidance, or permit 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.
    ``(c) State Authority.--The Secretary shall defer to State 
regulations, guidance, and permit requirements for all activities 
regarding hydraulic fracturing relating to oil, gas, or geothermal 
production activities on Federal land.
    ``(d) Transparency of State Regulations.--
            ``(1) In general.--Each State shall submit to the Bureau of 
        Land Management a copy of the regulations of the State that 
        apply to hydraulic fracturing operations on Federal land, 
        including the regulations that require disclosure of chemicals 
        used in hydraulic fracturing operations.
            ``(2) Availability.--The Secretary shall make available to 
        the public on the website of the Secretary the regulations 
        submitted under paragraph (1).
    ``(e) Tribal Authority on Trust Land.--The Secretary shall not 
enforce any Federal regulation, 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 a federally recognized Indian Tribe, except with the express 
consent of the beneficiary on whose behalf the land is held in trust or 
restricted status.''.

SEC. 6. 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 after the seventh sentence the 
following: ``The Secretary shall resolve any protest to a lease sale 
within 60 days following such payment.''.
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