COMPETES Act
Bill: S.2962 | Sponsor: Sen. Hickenlooper, John W. (D-CO)
Policy area: Energy

Summary:
Competitive Onshore Mineral Policy via Eliminating Taxpayer-Enabled Speculation Act or the COMPETES Act
This bill revises the process of leasing public land for oil and gas development. For example, it requires the Bureau of Land Management (BLM) to issue all onshore oil and gas leasing through a competitive bidding process.
Further, the BLM must ensure the receipt by the United States of fair market value for any land or resources leased and any rights covered by the United States.

To amend the Mineral Leasing Act to ensure market competition in 
          onshore oil and gas leasing, 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 ``Competitive Onshore Mineral Policy 
via Eliminating Taxpayer-Enabled Speculation Act'' or the ``COMPETES 
Act''.

SEC. 2. STATEMENT OF POLICY.

    It is the policy of the United States that the Secretary of the 
Interior shall not issue onshore oil and gas leases except through a 
competitive bidding process.

SEC. 3. ELIMINATION OF NONCOMPETITIVE LEASING UNDER THE MINERAL LEASING 
              ACT.

    (a) Oil and Gas Leasing.--Section 17 of the Mineral Leasing Act (30 
U.S.C. 226) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Leasing Authority.--
            ``(1) In general.--All land subject to disposition under 
        this Act that is known or believed to contain oil or gas 
        deposits may be leased by the Secretary.
            ``(2) Receipt of fair market value.--In conducting leasing 
        activities under this Act, the Secretary shall ensure the 
        receipt by the United States of fair market value for--
                    ``(A) any land or resources leased by the United 
                States; and
                    ``(B) any rights conveyed by the United States.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(A)--
                            (i) in the first sentence, by striking 
                        ``paragraphs (2) and (3) of this subsection'' 
                        and inserting ``paragraph (2)''; and
                            (ii) by striking the last sentence; and
                    (B) by striking paragraph (3);
            (3) by striking subsection (c) and inserting the following:
    ``(c) Additional Rounds of Competitive Bidding.--Land made 
available for leasing under subsection (b)(1) for which no bid is 
accepted or received, or the land for which a lease terminates, 
expires, is cancelled, or is relinquished, may be made available by the 
Secretary of the Interior for a new round of competitive bidding under 
that subsection.''; and
            (4) by striking subsection (e) and inserting the following:
    ``(e) Term of Lease.--
            ``(1) In general.--Any lease issued under this section, 
        including a lease for tar sand areas, shall be for a primary 
        term of 10 years.
            ``(2) Continuation of lease.--A lease described in 
        paragraph (1) shall continue after the primary term of the 
        lease for any period during which oil or gas is produced in 
        paying quantities.
            ``(3) Additional extensions.--Any lease issued under this 
        section for land on which, or for which under an approved 
        cooperative or unit plan of development or operation, actual 
        drilling operations were commenced prior to the end of the 
        primary term of the lease and are being diligently prosecuted 
        at the time the primary term of the lease ends shall be 
        extended for 2 years and for any period thereafter during which 
        oil or gas is produced in paying quantities.''.
    (b) Conforming Amendments.--Section 31 of the Mineral Leasing Act 
(30 U.S.C. 188) is amended--
            (1) in subsection (d)(1), in the first sentence, by 
        striking ``or section 17(c) of this Act'';
            (2) in subsection (e)--
                    (A) in paragraph (2)--
                            (i) by striking ``either''; and
                            (ii) by striking ``or the inclusion'' and 
                        all that follows through ``, all''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by adding ``and'' 
                        after the semicolon;
                            (ii) by striking subparagraph (B); and
                            (iii) by striking ``(3)(A) payment'' and 
                        inserting the following:
            ``(3) payment'';
            (3) in subsection (g)--
                    (A) in paragraph (1), by striking ``as a 
                competitive'' and all that follows through ``of this 
                Act'' and inserting ``in the same manner as the 
                original lease issued pursuant to section 17'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (D) in paragraph (2) (as so redesignated), by 
                striking ``applicable to leases issued under subsection 
                17(c) of this Act (30 U.S.C. 226(c)) except,'' and 
                inserting ``except'';
            (4) in subsection (h), by striking ``subsections (d) and 
        (f) of this section'' and inserting ``subsection (d)'';
            (5) in subsection (i), by striking ``(i)(1) In acting'' and 
        all that follows through ``of this section'' in paragraph (2) 
        and inserting the following:
    ``(i) Royalty Reduction in Reinstated Leases.--In acting on a 
petition for reinstatement pursuant to subsection (d)'';
            (6) by striking subsection (f); and
            (7) by redesignating subsections (g) through (j) as 
        subsections (f) through (i), respectively.
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