End Speculative Oil and Gas Leasing Act of 2021
Bill: S.607 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Public Lands and Natural Resources

Summary:
End Speculative Oil and Gas Leasing Act of 2021
This bill specifies requirements for the leasing of oil and gas resources on federal lands.
The Bureau of Land Management (BLM), with respect to certain federal land that is covered by a reasonably foreseeable development scenario (i.e., a long-term projection of oil and gas development) shall not offer the land for lease until such scenario includes an assessment of the land's oil and gas potential that specifically identifies the potential for all acres subject to decisions on availability for leasing.
If certain federal land that is otherwise available for leasing of oil and gas resources is not covered by a reasonably foreseeable development scenario, the BLM shall complete such a scenario in accordance with the requirements and factors described in this bill.
In general, the BLM shall not offer for lease certain federal land otherwise available for leasing of oil and gas resources if such land is designated in the applicable reasonably foreseeable development scenario as having low or no potential for the development of oil or gas resources. However, the bill provides for a variance process.
With respect to each of these requirements, exceptions apply for federal land that is leased for the purpose of preventing oil or gas drainage or that meets specified requirements related to size and proximity to an oil- or gas-producing well.

To discourage speculative oil and gas leasing and to promote enhanced 
multiple use management of public land and National Forest System 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 ``End Speculative Oil and Gas Leasing 
Act of 2021''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) Federal land should be managed for multiple uses, 
        resources, and values, including recreation use, grazing use, 
        timber resources, mineral resources, watershed management, 
        wildlife and fish habitat, and natural, scenic, scientific, and 
        historic values;
            (2) section 17(a) of the Mineral Leasing Act (30 U.S.C. 
        226(a)) authorizes the Secretary of the Interior to offer for 
        lease only land that is ``known or believed to contain oil or 
        gas deposits'';
            (3)(A) in determining whether a parcel of Federal land 
        should be made available for oil and gas leasing and 
        development, and in offering such a parcel for sale, the 
        Secretary does not meaningfully take into consideration the oil 
        and gas development potential of that parcel; and
            (B) as a result, the Secretary regularly offers and leases 
        for oil and gas development Federal land that has no or low 
        potential for the development of oil and gas resources 
        (referred to in this section as ``no- or low-potential Federal 
        land'');
            (4)(A) no- or low-potential Federal land is frequently 
        leased for or near the minimum lease bid, or noncompetitively, 
        and rarely produce oil or gas resources; and
            (B) as a result, taxpayers in the United States receive 
        minimal revenue from the leasing of no- or low-potential 
        Federal land;
            (5) making no- or low-potential Federal land available for 
        oil and gas leasing can result in leases being obtained for 
        speculative purposes;
            (6) the Secretary wastes taxpayer resources in issuing and 
        managing leases on no- or low-potential Federal land;
            (7) no- or low-potential Federal land frequently supports 
        other economically important uses, resources, and values 
        including the uses, resources, and values described in 
        paragraph (1);
            (8) the existence of leases on no- and low-potential 
        Federal land can and does limit the ability of the Secretary to 
        support and enhance the uses, resources, and values described 
        in paragraph (1); and
            (9) meaningful public participation in leasing decisions is 
        essential and can help to ensure that the decisions of the 
        Secretary are well-informed and based on current and reliable 
        information and data.

SEC. 3. POLICY.

    In accordance with Federal multiple use land management goals, it 
is the policy of the United States that--
            (1) the Secretary--
                    (A) shall not, absent exceptional circumstances, 
                offer for lease any Federal land that has low or no 
                potential for the development of oil and gas resources;
                    (B) shall discourage speculation in the Federal 
                onshore oil and gas leasing program; and
                    (C) by not offering for lease Federal land 
                described in subparagraph (A), shall conserve limited 
                Federal resources that can be better applied elsewhere; 
                and
            (2) the policies described in paragraph (1) are in keeping 
        with, and are not detrimental to, the energy security of the 
        United States.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Drainage.--The term ``drainage'' means the migration of 
        hydrocarbons, inert gases (other than helium), or associated 
        resources from a well caused by production from another well.
            (2) Federal land.--The term ``Federal land'' means--
                    (A) public land; and
                    (B) National Forest System land.
            (3) Land use plan.--The term ``land use plan'' means--
                    (A) a land use plan required under sections 201 and 
                202 of the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1711, 1712), including any resource 
                management plan (as defined in section 1601.0-5 of 
                title 43, Code of Federal Regulations (or successor 
                regulations)); and
                    (B) a land and resource management plan developed 
                by the Secretary of Agriculture pursuant to section 6 
                of the Forest and Rangeland Renewable Resources 
                Planning Act of 1974 (16 U.S.C. 1604).
            (4) Public land.--The term ``public land'' has the meaning 
        given the term ``public lands'' in section 103 of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1702).
            (5) Reasonably foreseeable development scenario.--The term 
        ``reasonably foreseeable development scenario'' has the meaning 
        given the term in the handbook of the Bureau of Land Management 
        entitled ``H--1624-1--Planning for Fluid Mineral Resources'' 
        (as in effect on the date of enactment of this Act) and issued 
        pursuant to the Federal Land Policy and Management Act of 1976 
        (43 U.S.C. 1701 et seq.).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Director of the Bureau of 
        Land Management.

SEC. 5. FEDERAL LAND COVERED BY REASONABLY FORESEEABLE DEVELOPMENT 
              SCENARIO ISSUED BEFORE DATE OF ENACTMENT.

    (a) In General.--With respect to Federal land otherwise available 
for leasing of oil and gas resources pursuant to the Mineral Leasing 
Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.) that is covered by a reasonably 
foreseeable development scenario issued before the date of enactment of 
this Act, except as provided in subsection (b), the Secretary shall not 
offer the Federal land for lease unless the reasonably foreseeable 
development scenario for that land includes an assessment of the oil 
and gas development potential of that land that specifically identifies 
the potential for all acres subject to decisions on availability for 
leasing.
    (b) Exception for Drainage.--
            (1) In general.--The Secretary may offer for lease any 
        Federal land described in subsection (a) without meeting the 
        requirements of that subsection if--
                    (A)(i) the Federal land is adjacent to land 
                currently producing oil or gas; and
                    (ii) the lease is issued for the purpose of 
                preventing drainage from the adjacent land; or
                    (B) the Federal land--
                            (i) does not exceed 640 acres; and
                            (ii) is located within 1 mile of a well 
                        producing oil or gas in paying quantities on 
                        the date on which the Federal land is offered 
                        for leasing.
            (2) Requirement.--A lease issued under paragraph (1) shall 
        be consistent with the applicable land use plan and all other 
        applicable law.

SEC. 6. FEDERAL LAND NOT COVERED BY CURRENT REASONABLY FORESEEABLE 
              DEVELOPMENT SCENARIO.

    (a) In General.--
            (1) In general.--Except as provided in subsection (c), if 
        the Secretary determines that Federal land otherwise available 
        for leasing of oil and gas resources pursuant to the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act 
        for Acquired Lands (30 U.S.C. 351 et seq.) is not covered by a 
        reasonably foreseeable development scenario issued in 
        accordance with this subsection or section 5(a), the Secretary, 
        in cooperation with the Secretary of Agriculture with respect 
        to National Forest System land, shall complete such a 
        reasonably foreseeable development scenario.
            (2) Requirements.--Any reasonably foreseeable development 
        scenario issued on or after the date of enactment of this Act 
        shall, at a minimum--
                    (A) assess and designate all Federal land covered 
                by the reasonably foreseeable development scenario as 
                having high, moderate, low, or no potential for 
                development of oil and gas resources; and
                    (B) publish a map depicting the covered Federal 
                land and the development potential for that Federal 
                land designated under subparagraph (A).
            (3) Factors.--
                    (A) In general.--In completing a reasonably 
                foreseeable development scenario for Federal land, the 
                Secretary shall take into consideration--
                            (i) past and present exploration and 
                        development activity in the vicinity, including 
                        historic trends;
                            (ii) for each lease in the vicinity, the 
                        number, location, and types of wells drilled, 
                        the representative depth of wells drilled, the 
                        number and location of dry holes, the success 
                        ratio for wells drilled, and the location, 
                        production history, and life expectancy of 
                        producing fields;
                            (iii) geological, geophysical, and 
                        geochemical information for the Federal land, 
                        including data and information from the United 
                        States Geological Survey, the Department of 
                        Energy, State agencies, industry, professional 
                        societies, academic sources, and the public;
                            (iv) structural and stratigraphic data and 
                        information relating to basins, fields, and 
                        plays on the Federal land; and
                            (v) data and information on the likelihood 
                        that economically recoverable oil and gas 
                        resources are present in a given area, 
                        including information submitted by experts and 
                        the public.
                    (B) Explanation of factors.--The Secretary shall 
                document how each factor described in subparagraph (A) 
                and any other factors considered by the Secretary 
                support the designation of the potential for 
                development of oil and gas resources on the Federal 
                land.
            (4) Opportunity for public participation.--In carrying out 
        a reasonably foreseeable development scenario under this 
        subsection, the Secretary shall--
                    (A) notify the public that the reasonably 
                foreseeable development scenario is being initiated;
                    (B) publish a request for information for the 
                reasonably foreseeable development scenario;
                    (C) release a draft version of the reasonably 
                foreseeable development scenario for a public review 
                and comment for a period of not less than 60 days; and
                    (D) consider and respond to public comments in the 
                final version of the reasonably foreseeable development 
                scenario.
    (b) Regular Update.--
            (1) In general.--Not later than 15 years after the date of 
        enactment of this Act, and not less frequently than every 15 
        years thereafter, the Secretary, consistent with subsection (a) 
        and in cooperation with the Secretary of Agriculture with 
        respect to National Forest System land, shall review and update 
        all reasonably foreseeable development scenarios covering 
        Federal land.
            (2) Prohibition.--Except as provided in subsection (c), the 
        Secretary shall not offer for lease any Federal land otherwise 
        available for leasing of oil and gas resources pursuant to the 
        Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Mineral 
        Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) unless 
        the Secretary has updated the reasonably foreseeable 
        development scenario covering that Federal land in accordance 
        with paragraph (1).
    (c) Exception for Drainage.--
            (1) In general.--The Secretary may offer for lease any 
        Federal land otherwise available for leasing of oil and gas 
        resources pursuant to the Mineral Leasing Act (30 U.S.C. 181 et 
        seq.) or the Mineral Leasing Act for Acquired Lands (30 U.S.C. 
        351 et seq.) without completing or updating a reasonably 
        foreseeable development scenario for that land under subsection 
        (a) or (b), as applicable, if--
                    (A)(i) the Federal land is adjacent to land 
                currently producing oil or gas; and
                    (ii) the lease is issued for the purpose of 
                preventing drainage from the adjacent land; or
                    (B) the Federal land--
                            (i) does not exceed 640 acres; and
                            (ii) is located within 1 mile of a well 
                        producing oil or gas in paying quantities on 
                        the date on which the Federal land is offered 
                        for leasing.
            (2) Requirement.--A lease issued under paragraph (1) shall 
        be consistent with the applicable land use plan and all other 
        applicable law.

SEC. 7. LAND HAVING NO OR LOW DEVELOPMENT POTENTIAL UNDER A REASONABLY 
              FORESEEABLE DEVELOPMENT SCENARIO.

    (a) In General.--Except as provided in subsections (b) and (c), the 
Secretary shall not offer for lease any Federal land otherwise 
available for leasing of oil and gas resources pursuant to the Mineral 
Leasing Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act for 
Acquired Lands (30 U.S.C. 351 et seq.) if the Federal land is 
designated in the applicable reasonably foreseeable development 
scenario as having low or no potential for development of oil or gas 
resources.
    (b) Exception for Drainage.--
            (1) In general.--The Secretary may offer for lease any 
        Federal land described in subsection (a) if--
                    (A)(i) the Federal land is adjacent to land 
                currently producing oil or gas; and
                    (ii) the lease is issued for the purpose of 
                preventing drainage from the adjacent land; or
                    (B) the Federal land--
                            (i) does not exceed 640 acres; and
                            (ii) is located within 1 mile of a well 
                        producing oil or gas in paying quantities on 
                        the date on which the Federal land is offered 
                        for leasing.
            (2) Requirement.--A lease issued under paragraph (1) shall 
        be consistent with the applicable land use plan and all other 
        applicable law.
    (c) Variance Process.--
            (1) In general.--An entity seeking to lease Federal land 
        described in subsection (a) for purposes other than the purpose 
        described in subsection (b)(1)(A)(ii) may submit to the 
        Secretary an application for a variance under which the 
        applicant shall bear the full burden of establishing and 
        documenting that providing a variance for the Federal land 
        would--
                    (A) be consistent with decisions contained in the 
                land use plan in effect for the Federal land;
                    (B) affect only areas--
                            (i) with low wildlife, recreation, 
                        livestock, and other multiple-use resource 
                        values; and
                            (ii) where impacts to those values arising 
                        from the variance can be resolved;
                    (C) optimize the use of existing infrastructure and 
                avoid duplication of infrastructure and disruption of 
                public land;
                    (D) minimize adverse impacts on fish and wildlife 
                habitats and migration and movement corridors in nearby 
                areas;
                    (E) cause no significant effects on species listed 
                as endangered species or threatened species under the 
                Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
                or the habitats of those species;
                    (F) cause no cumulative impacts on air or water 
                resources of concern that cannot be avoided or 
                minimized;
                    (G) cause no adverse impacts on--
                            (i) units of the National Park System;
                            (ii) units of the National Wildlife Refuge 
                        System;
                            (iii) areas of critical environmental 
                        concern;
                            (iv) components of the National Wilderness 
                        Preservation System; or
                            (v) other special status areas, including 
                        State and local parks and wildlife and 
                        recreation areas; and
                    (H) allow the Federal land to be developed in the 
                public interest.
            (2) Opportunity for public participation.--
                    (A) In general.--On receipt of an application for a 
                variance under paragraph (1), the Secretary shall--
                            (i) promptly notify the public that the 
                        application has been received; and
                            (ii) provide the public with an opportunity 
                        to review and comment on the application, 
                        including any supporting documents, for a 
                        period of not less than 60 days.
                    (B) Response.--The Secretary shall consider and 
                respond in writing to any public comments received 
                under subparagraph (A)(ii) before making a 
                determination under paragraph (3)(A).
            (3) Granting of variance.--The Secretary may grant a 
        variance for Federal land described in subsection (a) pursuant 
        to an application submitted under paragraph (1), and offer that 
        Federal land for lease, if--
                    (A) the Secretary publishes in the Federal Register 
                a determination that--
                            (i) the applicant met the burden of 
                        establishing and documenting that the variance 
                        would meet the requirements described in 
                        paragraph (1);
                            (ii) offering the Federal land for lease--
                                    (I) would not preclude the use of 
                                the Federal land for other uses, 
                                including grazing, fish and wildlife, 
                                and recreation uses; and
                                    (II) would be managed in accordance 
                                with the principles of multiple use (as 
                                defined in section 103 of the Federal 
                                Land Policy and Management Act of 1976 
                                (43 U.S.C. 1702)); and
                            (iii) the variance is in the public 
                        interest; and
                    (B) the Federal land--
                            (i) is adjacent to land currently producing 
                        oil or gas in commercial quantities on the date 
                        on which the variance is granted; and
                            (ii) does not exceed 640 acres.
            (4) Requirement.--A lease issued under paragraph (3) shall 
        be consistent with the applicable land use plan and all other 
        applicable law.
            (5) Limitation.--The Secretary shall not grant more than 1 
        variance under this subsection per 5-year period to an 
        applicant or to an entity under common ownership or control 
        with the applicant.

SEC. 8. EFFECT.

    (a) Multiple Use Considerations.--Nothing in this Act, including a 
determination under a reasonably foreseeable development scenario 
issued pursuant to this Act that Federal land has high or moderate 
potential for development of oil and gas resources, alters--
            (1) the requirements under section 202(c) of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1712(c)) that 
        prior to offering for lease any public land otherwise available 
        for leasing of oil and gas resources pursuant to the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act 
        for Acquired Lands (30 U.S.C. 351 et seq.), the Secretary shall 
        consider and weigh the multiple use and sustained yield values 
        of the public land;
            (2) the requirements of subsections (b) and (e) of section 
        6 of the Forest and Rangeland Renewable Resources Planning Act 
        of 1974 (16 U.S.C. 1604) that prior to offering for lease any 
        National Forest System land otherwise available for leasing of 
        oil and gas resources pursuant to the Mineral Leasing Act (30 
        U.S.C. 181 et seq.) or the Mineral Leasing Act for Acquired 
        Lands (30 U.S.C. 351 et seq.), the Secretary of Agriculture 
        shall consider and weigh the multiple use and sustained yield 
        values of the National Forest System land; or
            (3) any other applicable requirements of law.
    (b) NEPA.--Nothing in this Act modifies, alters, or impacts the 
applicability of the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) to the leasing of Federal land by the Secretary.
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