Title: ONSHORE Act
Policy area: Energy

Summary:
Opportunities for the Nation and States to Harness Onshore Resources for Energy Act or the ONSHORE Act
This bill addresses onshore oil and gas resources on federal land and non-federal surface estates.
The bill allows the Department of the Interior to delegate to states the authority to manage certain federal permitting and regulatory responsibilities for oil and gas development on federal lands within their borders.
The bill provides a mechanism for states to receive an increased percentage of sales, bonuses, royalties, and rentals for all public land or deposits located in the state by collecting royalties directly without paying the existing administrative fees to Interior.
Certain oil and gas activities conducted on non-federal surface estates do not require a permit and are exempt from certain environmental review requirements.
Interior must 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.
Interior must conduct a review of the National Petroleum Reserve in Alaska to determine what land in the reserve should be made available for oil and gas leasing.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 218 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 218

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 24, 2019

   Mr. Barrasso (for himself, Mr. Enzi, Mr. Cramer, and Mr. Hoeven) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 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. 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);
                            ``(iii) evidence of bond coverage; and
                            ``(iv) such other information as may be 
                        required by applicable orders and notices.
            ``(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 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 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.
    ``(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; or
                    ``(B) to approve drilling plans on available 
                Federal land.
            ``(2) Sundry notices.--On request of a State for which 
        authority is delegated under paragraph (1), the authority 
        delegated may include the authority to approve sundry notices.
            ``(3) Inspection and enforcement.--
                    ``(A) In general.--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 or drilling plan, as 
                applicable.
                    ``(B) Effect.--A delegation of authority under 
                paragraph (1)(A) shall not affect the ability of the 
                Secretary to collect inspection fees under subsection 
                (d) of section 108 of the Federal Oil and Gas Royalty 
                Management Act of 1982 (30 U.S.C. 1718).
    ``(c) State Application Process.--
            ``(1) Submission of application.--A State seeking a 
        delegation of authority under subparagraph (A) or (B) 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 
                        or in approving drilling plans, 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 or 
                                approved drilling plan, as applicable, 
                                for cause, including for--
                                            ``(aa) the violation of any 
                                        condition of the issued APD or 
                                        approved drilling plan;
                                            ``(bb) obtaining the issued 
                                        APD or approved drilling plan 
                                        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 section 35(a), 
                        except as provided in subsection (e) of that 
                        section.
                    ``(B) Memoranda of understanding.--With respect to 
                a State applicant seeking authority under subsection 
                (b)(3)(A) to inspect and enforce APDs or drilling 
                plans, 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 a 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) Fee amount.--The fee collected under paragraph (1) 
        shall be less than or equal to the amount of the fee collected 
        by the Secretary under section 35(d)(2) from States for which 
        authority has not been delegated under subsection (b)(1)(A).
            ``(4) 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 for APD or Application for 
Approval of Drilling Plan.--
            ``(1) In general.--If a State for which the Secretary has 
        delegated authority under subsection (b)(1) denies an 
        application for an APD or an application for approval of a 
        drilling plan, the applicant may appeal the decision to the 
        Office of Hearings and Appeals of the Department of the 
        Interior.
            ``(2) Fee allowed.--The Secretary may charge an applicant a 
        fee for an appeal under paragraph (1).
    ``(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) 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) Collection of fees.--
                    ``(A) In general.--The Secretary shall collect 
                annual nonrefundable inspection fees in the amount 
                specified in subparagraph (B), from each designated 
                operator under each lease on Federal or Indian lands 
                that is--
                            ``(i) subject to inspection under 
                        subsection (b); and
                            ``(ii) located in a State for which the 
                        Secretary has delegated authority under section 
                        44(b)(1)(A) of the Mineral Leasing Act.
                    ``(B) Amount.--The amount of the fees collected 
                under subparagraph (A) shall be--
                            ``(i) $700 for each lease or unit or 
                        communitization agreement with no active or 
                        inactive wells, but with surface use, 
                        disturbance or reclamation;
                            ``(ii) $1,225 for each lease or unit or 
                        communitization agreement with 1 to 10 wells, 
                        with any combination of active or inactive 
                        wells;
                            ``(iii) $4,900 for each lease or unit or 
                        communitization agreement with 11 to 50 wells, 
                        with any combination of active or inactive 
                        wells; and
                            ``(iv) $9,800 for each lease or unit or 
                        communitization agreement with more than 50 
                        wells, with any combination of active or 
                        inactive wells.
            ``(2) Onshore energy safety fund.--
                    ``(A) In general.--There is established in the 
                Treasury of the United States a fund to be known as the 
                `Onshore Energy Safety Fund' (referred to in this 
                subsection as the `Fund').
                    ``(B) Deposits.--An amount equal to the amounts 
                collected as fees under paragraph (1) shall be 
                deposited in the Fund.
                    ``(C) Availability.--Amounts in the Fund shall--
                            ``(i) only be available to the extent and 
                        in the amount provided in advance in 
                        appropriations Acts;
                            ``(ii) be used only for purposes described 
                        in subparagraph (D);
                            ``(iii) remain available until expended; 
                        and
                            ``(iv) be credited as offsetting 
                        collections.
                    ``(D) Use of funds.--Notwithstanding section 3302 
                of title 31, United States Code, amounts deposited in 
                the Fund shall only be available for expenditure for 
                purposes of carrying out inspections under subsection 
                (b) in those States for which the Secretary has 
                delegated authority under section 44(b)(1)(A) of the 
                Mineral Leasing Act.
            ``(3) Payment due date.--The Secretary shall require 
        payment of any fee assessed under paragraph (1) not later than 
        30 days after the date on which the Secretary provides notice 
        of the assessment of the fee after the completion of an 
        inspection.
            ``(4) Penalty.--If a designated operator assessed a fee 
        under paragraph (1) fails to pay the full amount of the fee 
        required under this subsection, the Secretary may, in addition 
        to using 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) Notification to state of noncompliance.--If, on the 
        basis of any inspection under subsection (b), the Secretary 
        determines that an operator is failing to comply with the 
        requirements of mineral leasing laws or this Act, the Secretary 
        shall notify the State of the failure to comply immediately.''.
    (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 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. 3. 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 subsection (a), in the first sentence, by striking 
        ``shall be paid into the Treasury'' and inserting ``shall, 
        except as provided in subsection (e), be paid into the 
        Treasury'';
            (2) in subsection (c)(1), by inserting ``and except as 
        provided in subsection (e)'' before ``, any rentals''; and
            (3) by adding at the end the following:
    ``(e) Conveyance to Certain States of Property 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 percentage 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 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 located in a State to which 
        right, title, and interest is conveyed under this subsection 
        notice that--
                    ``(A) the Secretary of the Interior has conveyed 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 monthly to the Office of Natural 
        Resources Revenue of the Department of the Interior the amount 
        paid to the State pursuant to this subsection.
            ``(5) Application.--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 1982 (30 U.S.C. 
        1701 et seq.), this subsection shall only apply with respect to 
        States for which the Secretary has delegated any authority 
        under section 44(b)(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 respect to States for which the Secretary has 
delegated any authority under section 44(b)(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 in 
the seventh sentence by striking ``All'' and inserting ``Subject to 
subsection (e) of section 35 of the Mineral Leasing Act (30 U.S.C. 
191), all''.

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

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

    ``(a) Permits Not Required for Certain Activities on Non-Federal 
Surface Estate.--The following activities conducted on 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.
    ``(b) DOI Notification.--The Secretary of the Interior shall 
provide to each State a map or list indicating Federal mineral 
ownership within that State.
    ``(c) 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.
    ``(d) 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) In General.--In this section:
            ``(1) Hydraulic fracturing defined.--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. REVIEW OF INTEGRATED ACTIVITY PLAN FOR THE NATIONAL PETROLEUM 
              RESERVE-ALASKA.

    The Secretary of the Interior shall--
            (1) conduct a review of the National Petroleum Reserve-
        Alaska Final Integrated Activity Plan/Environmental Impact 
        Statement, for which notice of availability was published in 
        the Federal Register on December 28, 2012 (77 Fed. Reg. 76515), 
        to determine which land within the National Petroleum Reserve-
        Alaska should be made available for oil and gas leasing; and
            (2) make available the land described in paragraph (1) for 
        oil and gas leasing.

SEC. 7. 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.''.
                                 <all>