Ending Taxpayer Welfare for Oil and Gas Companies Act of 2021
Bill: H.R.1517 | Sponsor: Rep. Porter, Katie (D-CA)
Policy area: Energy

Summary:
Ending Taxpayer Welfare for Oil and Gas Companies Act of 2021
This bill addresses royalties related to the development of federal energy resources.
Among other requirements, the bill

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.


 


    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 ``Ending Taxpayer Welfare for Oil and 
Gas Companies Act of 2021''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is the following:

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. Inspection fee.
Sec. 7. Penalties.
Sec. 8. Royalty relief.
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 ``12\1/2\'' 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 evaluating 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 fuel royalty rates 
        charged by States for fossil fuels production on State-owned 
        public lands;
            ``(2) evaluating triennially increases in the Federal 
        fossil fuel royalty rates above the minimum rates required 
        under this Act to match the production-weighted average of 
        State royalty rates. The triennial review shall include and 
        benefit from public participation through written comment, 
        public hearings and other meetings open to all interested 
        parties; and
            ``(3) submitting the triennial evaluation to Congress, 
        including a summary of the views expressed in the public 
        participation processes related to the evaluation.''.
            (2) in section 17, by--
                    (A) striking ``12.5'' each place such term appears 
                and inserting ``18.75''; and
                    (B) striking ``12\1/2\'' each place such term 
                appears and inserting ``18.75''; and
            (3) in section 31(e), by striking ``16\2/3\'' 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)--
                    (A) by striking ``$2 per acre'' and inserting ``$10 
                per acre, except as otherwise provided by this 
                paragraph''; and
                    (B) by striking ``Federal Onshore Oil and Gas 
                Leasing Reform Act of 1987'' and inserting ``Ending 
                Taxpayer Welfare for Oil and Gas Companies Act of 
                2021'';
            (2) in subsection (b)(2)(C), by striking ``$2 per acre'' 
        and inserting ``$10 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 Federal 
        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)--
                    (A) by striking ``$1.50 per acre'' and inserting 
                ``$3 per acre''; and
                    (B) by striking ``$2 per acre'' and inserting ``$5 
                per acre''; and
            (2) in section 31(e), by striking ``$10'' and inserting 
        ``$20''.

SEC. 6. INSPECTION FEE.

    (a) In General.--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 Fee.--
            ``(1) In general.--The designated operator under each oil 
        and gas lease on Federal or Indian lands, or each unit and 
        communitization agreement that includes one or more such 
        Federal or Indian leases, that is subject to inspection under 
        subsection (b) and that is in force at the start of fiscal year 
        2021, shall pay a nonrefundable inspection fee in an amount 
        that, except as provided in paragraph (2), is established by 
        the Secretary by regulation and is sufficient to recover the 
        full costs incurred by the United States for inspection and 
        enforcement with respect to such leases.
            ``(2) Amount.--Until the effective date of regulations 
        under paragraph (1), the amount of the fee 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) Due date.--Payment of the fee under this section 
        shall be due not later than 30 days after the Secretary 
        provides notice of the assessment of the fee.
            ``(4) Penalty.--If the designated operator fails to pay the 
        full amount of the fee as prescribed in this section, the 
        Secretary may, in addition to utilizing any other applicable 
        enforcement authority, assess civil penalties against the 
        operator under section 109 in the same manner as if this 
        section were a mineral leasing law.
            ``(5) Exemption for tribal operators.--An operator that is 
        a Tribe or is controlled by a Tribe is not subject to paragraph 
        (1) with respect to a lease, unit, or communitization agreement 
        that is located entirely on the lands of such Tribe.''.
    (b) Assessment for Fiscal Year 2020.--The Secretary of the Interior 
shall assess the fee under the amendment made by subsection (a) for 
fiscal year 2020, and provide notice of such assessment to each 
designated operator who is liable for such fee, by not later than 60 
days after the date of the enactment of this Act.

SEC. 7. PENALTIES.

    (a) Mineral Leasing Act.--Section 41 of the Mineral 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 Management Act of 1982 (30 U.S.C. 1701 et 
seq.) is amended--
            (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
                    (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 paragraph (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 regulation 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 failure. The 
        Secretary may assess, collect, and compromise any such penalty.
            ``(2) Opportunity for a hearing.--No penalty shall be 
        assessed until the person charged with a violation has been 
        given an opportunity for a hearing.
            ``(3) Adjustment for inflation.--The Secretary shall, by 
        regulation at least every 3 years, adjust the penalty specified 
        in this paragraph to reflect 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 deposit, 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 
        failure.''.
            (2) Knowing and willful violations.--Section 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 corporations.--Section 24(d) of 
        the Outer Continental Shelf Lands Act (43 U.S.C. 1350(d)) is 
        amended by striking ``knowingly and willfully authorized, 
        ordered, or carried out'' and inserting ``authorized, ordered, 
        carried out, or through reckless disregard of the law caused''.

SEC. 8. ROYALTY RELIEF.

    (a) Gulf of Mexico Royalty Relief.--The following provisions of the 
Energy Policy Act of 2005 (42 U.S.C. 15801 et seq.) are hereby 
repealed:
            (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 
        longitude''.
            (2) Provisions relating to naval petroleum 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. 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 (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 Management Act of 1982 
(30 U.S.C. 1702) is amended--
            (1) in paragraph (20)(A), by striking ``: Provided, 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 designee)'';
            (3) in paragraph (23)(A), by striking ``(with written 
        notice to the lessee who designated the designee)'';
            (4) by amending paragraph (24) to read as follows:
            ``(24) `designee' means a person who pays, offsets, 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)--
                    (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 leasing law 
                        related to, the exploration, production, 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 paragraphs:
            ``(34) `compliance review' means an examination of a 
        lessee's lease accounts to compare one or all elements of the 
        royalty equation (volume, value, royalty rate, and allowances) 
        against anticipated elements 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 production and to 
        market that production.''.

SEC. 11. COMPLIANCE REVIEWS.

    Section 101 of the Federal Oil and Gas Royalty Management 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 accounts. Such reviews shall not 
constitute nor substitute for audits of lease accounts. The Secretary 
shall immediately 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 collections 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 Secretary 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 designee 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 behalf the designee pays royalty under 
        the lease. The person owning operating rights in a lease and a 
        person owning legal record title in a lease shall be liable for 
        that person's pro rata share of payment obligations 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''.

SEC. 14. ADJUSTMENTS AND REFUNDS.

    Section 111A of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721a) is amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (3) to read as follows:
            ``(3)(A) An adjustment or a request for a refund for an 
        obligation may be made after the adjustment period only upon 
        written notice to and approval 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 obligation after the completion 
        of an audit or compliance review of such obligation unless such 
        adjustment 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 inserting 
                        ``four-year''; and
                            (ii) by striking ``period shall'' and 
                        inserting ``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 adjustment under 
        section 111A(a) in which a recoupment by the lessee results in 
        an underpayment of an obligation, 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 notice to the lessee who designated the designee)''.
    (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by 
striking ``(with notice 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 amended--
            (1) in paragraph (1), in the heading, by striking ``33-
        month'' and inserting ``48-month'';
            (2) by striking ``33 months'' each place it appears and 
        inserting ``48 months''; and
            (3) by striking ``33-month'' each place it appears and 
        inserting ``48-month''.

SEC. 18. ASSESSMENTS.

    Section 116 of the Federal Oil and Gas Royalty Management 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 operators 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 costs and 
benefits of automatic transmission of data regarding 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 Congress 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.
    (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 natural 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 Management Act of 
1982 (30 U.S.C. 1736) is amended by striking ``Any payments under this 
section shall be reduced 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 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 Management 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
                    ``(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 produced from public lands (as that term is 
        defined in section 103 of the Federal Land Policy and 
        Management 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 designee 
        produces or takes under a Federal lease or Indian lease; or
            (2) the volume of oil and gas that such lessee or designee 
        is entitled to based on its ownership interest under a 
        unitization agreement for Federal leases or Indian leases.
    (b) 100 Percent Entitlement Reporting and Paying.--The Secretary 
shall give consideration to requiring 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 paragraph (2), 
        royalties otherwise authorized or required under the mineral 
        leasing laws (as that term is defined in the Federal Oil and 
        Gas Royalty Management 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--
                    (A) gas vented or flared for not longer than 48 
                hours in an acute emergency situation that poses a 
                danger to human health;
                    (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; and
                    (C) gas used or consumed within the area of the 
                lease tract for the benefit of the lease when the 
                operator is a Tribe or is controlled by a Tribe that is 
                located entirely on the lands of such Tribe.
    (b) Conforming Amendments.--
            (1) Mineral leasing act.--The Mineral Leasing Act is 
        amended--
                    (A) in section 14 (30 U.S.C. 223), by adding 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 section 124(a)(2) of the Ending 
                Taxpayer Welfare for Oil and Gas Companies Act of 2021, 
                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 appears;
                    (C) in section 22 (30 U.S.C. 251), by striking 
                ``sold or removed''; and
                    (D) in section 31 (30 U.S.C. 188), by striking 
                ``removed or sold'' each place it appears.
            (2) Outer continental shelf lands act.--The Outer 
        Continental Shelf Lands Act is amended--
                    (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 appears; and
                            (ii) by adding at the end the following:
            ``(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 Ending Taxpayer Welfare for Oil and 
        Gas Companies Act of 2021, without 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 respect to leases issued on 
or after the date of the enactment of this Act.
                                                 Union Calendar No. 455

117th CONGRESS

  2d Session

                               H. R. 1517

                          [Report No. 117-632]

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