A variety of interrelated statutes and agency regulations govern leasing and permitting for energy exploration and production on federal lands. Generally, these projects can be divided into two categories, each of which is governed by its own set of statutes and regulations. The first category is the exploration for and production of fossil fuels, including oil, natural gas, and coal. Oil, natural gas, and coal exploration and production on federal lands are generally governed by the Mineral Lands Leasing Act of 1920 (MLA) as amended. The Bureau of Land Management (BLM), an agency that is part of the U.S. Department of the Interior (DOI), administers the MLA. Generally, the lessee is authorized to explore for and ultimately produce oil, natural gas, or coal on federal lands in exchange for lease payments and royalties paid to the U.S. government on the production. BLM authorizes exploration activities and production activities for lessees only upon lessees' request for permission to engage in these activities on the leased land. The second category pertains to renewable energy projects. Under the Federal Land Policy and Management Act of 1976 (FLPMA), solar and wind projects are often undertaken pursuant to a right-of-way or similar property interest. However, geothermal energy projects are considered mineral projects and thus are leased under a separate set of laws and regulations in a manner similar to oil and natural gas project leasing. At the start of the 20 th century, private entities could explore, develop, and purchase federal lands containing fossil fuels with relative ease. Resources on these federal lands were transferred to full private ownership pursuant to the terms of the Mining Law of 1872. This process was known as "patenting." Under the patenting process, full ownership of oil lands "could be obtained for a nominal amount. " However, Congress eventually decided that oil and natural gas resources on onshore federal lands should remain under federal ownership. The enactment of the MLA in 1920 ended the private acquisition of title to onshore federal lands by authorizing the Secretary of the Interior to issue permits for exploration and to lease lands containing oil, coal, natural gas, and other defense-related minerals. The MLA thus allowed the federal government to maintain ultimate control over these federal lands while leasing them to energy companies. The first half of this report details the legal framework for this leasing process. The MLA authorizes the Secretary of the Interior to lease virtually all onshore lands owned by the United States that contain fossil fuel deposits, with the federal government retaining title to the lands. BLM is the agency tasked with leasing these subsurface mineral rights not just for the land BLM controls but also for lands controlled by other federal agencies, including those managed by the U.S. Forest Service. The MLA excludes numerous categories of lands such as national parks and monuments, as well as lands in incorporated cities, towns, and villages. Areas within the National Wilderness Preservation System also cannot be leased, but valid property rights that were already in existence by 1984 are preserved. In addition, although BLM controls the leasing process for subsurface rights to land in the National Forest System, the Secretary of the Interior cannot issue any lease for National Forest System lands reserved from the public domain if the Secretary of Agriculture objects. The Secretary of the Interior is also authorized to withdraw federal lands so that some or all potential land uses, including use for fossil fuel exploration and production, are not permitted on those lands. A withdrawal involves "withholding an area of Federal land from settlement, sale, location, or entry, under some or all of the general land laws, for the purpose of limiting activities under those laws in order to maintain other public values in the area or reserving the area for a particular public purpose or program." However, limitations on the Secretary's withdrawal authority exist. For example, Congress can make withdrawals through legislation, and the Secretary may not modify or revoke a congressional withdrawal. According to its website, BLM administers the leasing of minerals found beneath 258 million surface acres of federal lands that it manages, 57 million surface acres where the mineral rights are federally owned but the surface is in non-federal (mostly private) ownership, and approximately 385 million acres whose surfaces are managed by other federal agencies. The Secretary of the Interior must develop and revise Resource Management Plans (RMPs) for the lands under its purview that consider the present and potential future uses for lands managed by BLM. These RMPs serve as the initial determinant of which lands may be subject to leasing, as all activities performed on BLM lands must be consistent with the RMPs. The Secretary generally must apply "multiple use" and "sustained yield" principles when developing RMPs. "Multiple use" principles require management of the public lands and their various resource values so that they are utilized in the combination that will best meet the present and future needs of the American people; making the most judicious use of the land for some or all of these resources or related services over areas large enough to provide sufficient latitude for periodic adjustments in use to conform to changing needs and conditions; the use of some land for less than all of the resources; a combination of balanced and diverse resource uses that takes into account the long-term needs of future generations for renewable and non-renewable resources. "Sustained yield" requires the maintenance of "high-level annual or regular periodic output of the various renewable resources of the lands. " In addition, the Secretary is required to provide opportunities for the public and various levels of government to participate in the development of RMPs . This can include procedures such as holding public hearings, when appropriate. Regulations require the preparation of an Environmental Impact Statement (EIS) or an Environmental Assessment (EA) in accordance with the National Environmental Policy Act (NEPA) when producing an RMP. The Forest Service manages approximately 193 million acres under the "multiple use" and "sustained yield" policies. The Forest Service develops land management plans for Forest Service lands by considering the desired conditions, objectives, suitability of areas for various uses, and other criteria. As with the BLM planning process, the laws governing Forest Service land management and implementation require public notification and opportunities for public participation. When analyzing Forest Service lands for potential leasing, the Forest Service classifies lands into three categories: 1. lands that will be "[o]pen to development subject to the terms and conditions of the standard oil and gas lease form"; 2. lands that will be "[o]pen to development but subject to constraints that will require the use of lease stipulations"; and 3. lands that will be "[c]losed to leasing, distinguishing between those areas that are being closed through exercise of management direction, and those closed by law, regulation, etc. " The Forest Service must also comply with NEPA when analyzing NFS lands for potential leasing. Once the Forest Service has completed its analysis of which NFS lands will be available for leasing, it notifies BLM of its decisions, and subsequently may authorize BLM to lease the lands in question. The MLA authorizes both competitive and noncompetitive leasing processes for oil and gas exploration and production. Generally, federal lands go through the competitive leasing process first, and if no bids are received, the land will be offered for noncompetitive leasing. The process begins when BLM generates a list of lands available for competitive oil and natural gas leasing. Private entities may respond by submitting nominations for parcels to be auctioned. No unit being auctioned may exceed 2,560 acres, except in Alaska, where the maximum unit acreage is 5,760 acres. In addition, each unit must be "as nearly compact as possible. " The Secretary must provide 45 days notice before offering federal lands for leasing, including a 30-day period for receiving public comments after notice is published in the Federal Register . Competitive bidding must be held on a quarterly basis in each state where federal lands are available for leasing. The Secretary may also authorize additional opportunities for bidding if he considers them to be necessary. Once the public notice requirements have been satisfied, the lands are offered for competitive leasing through an oral auction. A national minimum acceptable bid of $2 per acre applies to the auction . Any bids for less than the national minimum bid must be rejected. A competitive bid constitutes a legally binding commitment and cannot be withdrawn. The MLA requires the Secretary to accept the highest bid from a responsible qualified bidder whose bid meets or exceeds the national minimum acceptable bid. The winning bidder at a competitive auction must submit the following payments on the day of sale, unless otherwise specified: (1) the minimum bid of $2 per acre; (2) the first year's rental payment; and (3) a processing fee as set forth in BLM's regulations. Then, the balance of the bonus bid, if applicable, is due within 10 working days. The lease is issued within 60 days of payment of the remainder of the bonus bid. The lease is also conditioned upon a royalty payment of at least 12.5% in amount or value of the production that is removed or sold from the leased land, unless the Secretary suspends, waives, or reduces the royalty. If no bids are received at a competitive bidding auction—or if all bids submitted are for less than the national minimum acceptable bid—the land will be offered for noncompetitive leasing within 30 days. This noncompetitive leasing remains available for two years after the competitive bidding auction. The first qualified person who applies for a noncompetitive lease and pays the $75 application fee is entitled to receive the lease without having to competitively bid. All noncompetitive offers received during the first business day after the last day of the competitive auction are considered to have been submitted simultaneously; in such cases, a lottery determines the lease winner.