SEC. 50101. Onshore oil and gas leasing.
(a) Repeal of Inflation Reduction Act provisions.—
(1) ONSHORE OIL AND GAS ROYALTY RATES.—Subsection (a) of section 50262 of Public Law 117–169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law.
(2) NONCOMPETITIVE LEASING.—Subsection (e) of section 50262 of Public Law 117–169 (136 Stat. 2057) is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law.
(b) Requirement to immediately resume onshore oil and gas lease sales.—
(1) IN GENERAL.—The Secretary of the Interior shall immediately resume quarterly onshore oil and gas lease sales in compliance with the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(2) REQUIREMENT.—The Secretary of the Interior shall ensure—
(A) that any oil and gas lease sale required under paragraph (1) is conducted immediately on completion of all applicable scoping, public comment, and environmental analysis requirements under the Mineral Leasing Act (30 U.S.C. 181 et seq.) and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
(B) that the processes described in subparagraph (A) are conducted in a timely manner to ensure compliance with subsection (b)(1).
(3) LEASE OF OIL AND GAS LANDS.—Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)), as amended by subsection (a), is amended by inserting “For purposes of the previous sentence, the term ‘eligible lands’ means all lands that are subject to leasing under this Act and are not excluded from leasing by a statutory prohibition, and the term ‘available’, with respect to eligible lands, means those lands that have been designated as open for leasing under a land use plan developed under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) and that have been nominated for leasing through the submission of an expression of interest, are subject to drainage in the absence of leasing, or are otherwise designated as available pursuant to regulations adopted by the Secretary.” after “sales are necessary.”.
(c) Quarterly lease sales.—
(1) IN GENERAL.—In accordance with the Mineral Leasing Act (30 U.S.C. 181 et seq.), each fiscal year, the Secretary of the Interior shall conduct a minimum of 4 oil and gas lease sales of available land in each of the following States:
(A) Wyoming.
(B) New Mexico.
(C) Colorado.
(D) Utah.
(E) Montana.
(F) North Dakota.
(G) Oklahoma.
(H) Nevada.
(I) Alaska.
(2) REQUIREMENT.—In conducting a lease sale under paragraph (1) in a State described in that paragraph, the Secretary of the Interior—
(A) shall offer not less than 50 percent of available parcels nominated for oil and gas development under the applicable resource management plan in effect for relevant Bureau of Land Management resource management areas within the applicable State; and
(B) shall not restrict the parcels offered to 1 Bureau of Land Management field office within the applicable State unless all nominated parcels are located within the same Bureau of Land Management field office.
(3) REPLACEMENT SALES.—The Secretary of the Interior shall conduct a replacement sale during the same fiscal year if—
(A) a lease sale under paragraph (1) is canceled, delayed, or deferred, including for a lack of eligible parcels; or
(B) during a lease sale under paragraph (1) the percentage of acreage that does not receive a bid is equal to or greater than 25 percent of the acreage offered.
(d) Mineral Leasing Act reforms.—Section 17 of the Mineral Leasing Act (30 U.S.C. 226), as amended by subsection (a), is amended—
(1) by striking the section designation and all that follows through the end of subsection (a) and inserting the following:
“SEC. 17. Leasing of oil and gas parcels.
“(a) Leasing authorized.—
“(1) IN GENERAL.—Any parcel of land subject to disposition under this Act that is known or believed to contain oil or gas deposits shall be made available for leasing, subject to paragraph (2), by the Secretary of the Interior, not later than 18 months after the date of receipt by the Secretary of an expression of interest in leasing the applicable parcel of land available for disposition under this section, if the Secretary determines that the parcel of land is open to oil or gas leasing under the approved resource management plan applicable to the planning area in which the parcel of land is located that is in effect on the date on which the expression of interest was submitted to the Secretary (referred to in this subsection as the ‘approved resource management plan’).
“(2) RESOURCE MANAGEMENT PLANS.—
“(A) LEASE TERMS AND CONDITIONS.—A lease issued by the Secretary under this section with respect to an applicable parcel of land made available for leasing under paragraph (1)—
“(i) shall be subject to the terms and conditions of the approved resource management plan; and
“(ii) may not require any stipulations or mitigation requirements not included in the approved resource management plan.
“(B) EFFECT OF AMENDMENT.—The initiation of an amendment to an approved resource management plan shall not prevent or delay the Secretary from making the applicable parcel of land available for leasing in accordance with that approved resource management plan if the other requirements of this section have been met, as determined by the Secretary.”;
(2) in subsection (p), by adding at the end the following:
“(4) TERM.—A permit to drill approved under this subsection shall be valid for a single, non-renewable 4-year period beginning on the date that the permit to drill is approved.”; and
(3) by striking subsection (q) and inserting the following:
“(q) Commingling of production.—The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property) before production reaches the point of royalty measurement regardless of ownership, the royalty rates, and the number or percentage of acres for each source if the applicant agrees to install measurement devices for each source, utilize an allocation method that achieves volume measurement uncertainty levels within plus or minus 2 percent during the production phase reported on a monthly basis, or utilize an approved periodic well testing methodology. Production from multiple oil and gas leases, drilling spacing units, communitized areas, or participating areas from a single wellbore shall be considered a single source. Nothing in this subsection shall prevent the Secretary of the Interior from continuing the current practice of exercising discretion to authorize higher percentage volume measurement uncertainty levels if appropriate technical and economic justifications have been provided.”.
SEC. 50102. Offshore oil and gas leasing.
(a) Lease sales.—
(1) GULF OF AMERICA REGION.—
(A) IN GENERAL.—Notwithstanding the 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program (and any successor leasing program that does not satisfy the requirements of this section), in addition to lease sales which may be held under that program, and except within areas subject to existing oil and gas leasing moratoria, the Secretary of the Interior shall conduct a minimum of 30 region-wide oil and gas lease sales, in a manner consistent with the schedule described in subparagraph (B), in the region identified in the map depicting lease terms and economic conditions accompanying the final notice of sale of the Bureau of Ocean Energy Management entitled “Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254” (85 Fed. Reg. 8010 (February 12, 2020)).
(B) TIMING REQUIREMENT.—Of the not fewer than 30 region-wide lease sales required under this paragraph, the Secretary of the Interior shall—
(i) hold not fewer than 1 lease sale in the region described in subparagraph (A) by December 15, 2025;
(ii) hold not fewer than 2 lease sales in that region in each of calendar years 2026 through 2039, 1 of which shall be held by March 15 of the applicable calendar year and 1 of which shall be held after March 15 but not later than August 15 of the applicable calendar year; and
(iii) hold not fewer than 1 lease sale in that region in calendar year 2040, which shall be held by March 15, 2040.
(2) ALASKA REGION.—
(A) IN GENERAL.—The Secretary of the Interior shall conduct a minimum of 6 offshore lease sales, in a manner consistent with the schedule described in subparagraph (B), in the Cook Inlet Planning Area as identified in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled “Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program” (81 Fed. Reg. 84612 (November 23, 2016))).
(B) TIMING REQUIREMENT.—Of the not fewer than 6 lease sales required under this paragraph, the Secretary of the Interior shall hold not fewer than 1 lease sale in the area described in subparagraph (A) in each of calendar years 2026 through 2028, and in each of calendar years 2030 through 2032, by March 15 of the applicable calendar year.
(b) Requirements.—
(1) TERMS AND STIPULATIONS FOR GULF OF AMERICA SALES.—In conducting lease sales under subsection (a)(1), the Secretary of the Interior—
(A) shall, subject to subparagraph (C), offer the same lease form, lease terms, economic conditions, and lease stipulations 4 through 9 as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled “Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254” (85 Fed. Reg. 8010 (February 12, 2020));
(B) may update lease stipulations 1 through 3 and 10 described in that final notice of sale to reflect current conditions for lease sales conducted under subsection (a)(1);
(C) shall set the royalty rate at not less than 121⁄2 percent but not greater than 162⁄3 percent; and
(D) shall, for a lease in water depths of 800 meters or deeper issued as a result of a sale, set the primary term for 10 years.
(2) TERMS AND STIPULATIONS FOR ALASKA REGION SALES.—
(A) IN GENERAL.—In conducting lease sales under subsection (a)(2), the Secretary of the Interior shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale of the Bureau of Ocean Energy Management entitled “Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 244” (82 Fed. Reg. 23291 (May 22, 2017)).
(B) REVENUE SHARING.—Notwithstanding section 8(g) and section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g), 1338), and beginning in fiscal year 2034, of the bonuses, rents, royalties, and other revenues derived from lease sales conducted under subsection (a)(2)—
(i) 70 percent shall be paid to the State of Alaska; and
(ii) 30 percent shall be deposited in the Treasury and credited to miscellaneous receipts.
(3) AREA OFFERED FOR LEASE.—
(A) GULF OF AMERICA REGION.—For each offshore lease sale conducted under subsection (a)(1), the Secretary of the Interior shall—
(i) offer not fewer than 80,000,000 acres; or
(ii) if there are fewer than 80,000,000 acres that are unleased and available, offer all unleased and available acres.
(B) ALASKA REGION.—For each offshore lease sale conducted under subsection (a)(2), the Secretary of the Interior shall—
(i) offer not fewer than 1,000,000 acres; or
(ii) if there are fewer than 1,000,000 acres that are unleased and available, offer all unleased and available acres.
(c) Offshore commingling.—The Secretary of the Interior shall approve a request of an operator to commingle oil or gas production from multiple reservoirs within a single wellbore completed on the outer Continental Shelf in the Gulf of America Region unless the Secretary of the Interior determines that conclusive evidence establishes that the commingling—
(1) could not be conducted by the operator in a safe manner; or
(2) would result in an ultimate recovery from the applicable reservoirs to be reduced in comparison to the expected recovery of those reservoirs if they had not been commingled.
(d) Offshore oil and gas royalty rate.—
(1) REPEAL.—Section 50261 of Public Law 117–169 (136 Stat. 2056) is repealed, and any provision of law amended or repealed by that section is restored or revived as if that section had not been enacted into law.
(2) ROYALTY RATE.—Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) (as amended by paragraph (1)) is amended—
(A) in subparagraph (A), by striking “not less than 121⁄2 per centum” and inserting “not less than 121⁄2 percent, but not more than 162⁄3 percent,”;
(B) in subparagraph (C), by striking “not less than 121⁄2 per centum” and inserting “not less than 121⁄2 percent, but not more than 162⁄3 percent,”;
(C) in subparagraph (F), by striking “no less than 121⁄2 per centum” and inserting “not less than 121⁄2 percent, but not more than 162⁄3 percent,”; and
(D) in subparagraph (H), by striking “no less than 12 and 1⁄2 per centum” and inserting “not less than 121⁄2 percent, but not more than 162⁄3 percent,”.
(e) Limitations on amount of distributed qualified outer Continental Shelf revenues.—Section 105(f)(1) of the Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109–432) is amended—
(1) in subparagraph (B), by striking “and” at the end;
(2) in subparagraph (C), by striking “2055.” and inserting “2024;”; and
(3) by adding at the end the following:
“(D) $650,000,000 for each of fiscal years 2025 through 2034; and
“(E) $500,000,000 for each of fiscal years 2035 through 2055.”.
SEC. 50103. Royalties on extracted methane.
Section 50263 of Public Law 117–169 (30 U.S.C. 1727) is repealed.
SEC. 50104. Alaska oil and gas leasing.
(a) Definitions.—In this section:
(1) COASTAL PLAIN.—The term “Coastal Plain” has the meaning given the term in section 20001(a) of Public Law 115–97 (16 U.S.C. 3143 note).
(2) OIL AND GAS PROGRAM.—The term “oil and gas program” means the oil and gas program established under section 20001(b)(2) of Public Law 115–97 (16 U.S.C. 3143 note).
(3) SECRETARY.—The term “Secretary” means the Secretary of the Interior, acting through the Bureau of Land Management.
(b) Lease sales required.—
(1) IN GENERAL.—Subject to paragraph (3), in addition to the lease sales required under section 20001(c)(1)(A) of Public Law 115–97 (16 U.S.C. 3143 note), the Secretary shall conduct not fewer than 4 lease sales area-wide under the oil and gas program by not later than 10 years after the date of enactment of this Act.
(2) TERMS AND CONDITIONS.—In conducting lease sales under paragraph (1), the Secretary shall offer the same terms and conditions as contained in the record of decision described in the notice of availability of the Bureau of Land Management entitled “Notice of Availability of the Record of Decision for the Final Environmental Impact Statement for the Coastal Plain Oil and Gas Leasing Program, Alaska” (85 Fed. Reg. 51754 (August 21, 2020)).
(3) SALE ACREAGES; SCHEDULE.—
(A) ACREAGES.—In conducting the lease sales required under paragraph (1), the Secretary shall offer for lease under the oil and gas program—
(i) not fewer than 400,000 acres area-wide in each lease sale; and
(ii) those areas that have the highest potential for the discovery of hydrocarbons.
(B) SCHEDULE.—The Secretary shall offer—
(i) the initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act;
(ii) a second lease sale under paragraph (1) not later than 3 years after the date of enactment of this Act;
(iii) a third lease sale under paragraph (1) not later than 5 years after the date of enactment of this Act; and
(iv) a fourth lease sale under paragraph (1) not later than 7 years after the date of enactment of this Act.
(4) RIGHTS-OF-WAY.—Section 20001(c)(2) of Public Law 115–97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection.
(5) SURFACE DEVELOPMENT.—Section 20001(c)(3) of Public Law 115–97 (16 U.S.C. 3143 note) shall apply to leases awarded under this subsection.
(c) Receipts.—Notwithstanding section 35 of the Mineral Leasing Act (30 U.S.C. 191) and section 20001(b)(5) of Public Law 115–97 (16 U.S.C. 3143 note), of the amount of adjusted bonus, rental, and royalty receipts derived from the oil and gas program and operations on the Coastal Plain pursuant to this section—
(1) (A) for each of fiscal years 2025 through 2033, 50 percent shall be paid to the State of Alaska; and
(B) for fiscal year 2034 and each fiscal year thereafter, 70 percent shall be paid to the State of Alaska; and
(2) the balance shall be deposited into the Treasury as miscellaneous receipts.
SEC. 50105. National Petroleum Reserve–Alaska.
(a) Definitions.—In this section:
(1) NPR–A FINAL ENVIRONMENTAL IMPACT STATEMENT.—The term “NPR–A final environmental impact statement” means the final environmental impact statement published by the Bureau of Land Management entitled “National Petroleum Reserve in Alaska Integrated Activity Plan Final Environmental Impact Statement” and dated June 2020, including the errata sheet dated October 6, 2020, and excluding the errata sheet dated September 20, 2022.
(2) NPR–A RECORD OF DECISION.—The term “NPR–A record of decision” means the record of decision published by the Bureau of Land Management entitled “National Petroleum Reserve in Alaska Integrated Activity Plan Record of Decision” and dated December 2020.
(3) PROGRAM.—The term “Program” means the competitive oil and gas leasing, exploration, development, and production program established under section 107 of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a).
(4) SECRETARY.—The term “Secretary” means the Secretary of the Interior.
(b) Restoration of NPR–A oil and gas leasing program.—Effective beginning on the date of enactment of this Act, the Secretary shall expeditiously restore and resume oil and gas lease sales under the Program for domestic energy production and Federal revenue in the areas designated for oil and gas leasing as described in the NPR–A final environmental impact statement and the NPR–A record of decision.
(c) Resumption of NPR–A lease sales.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary shall conduct not fewer than 5 lease sales under the Program by not later than 10 years after the date of enactment of this Act.
(2) SALES ACREAGES; SCHEDULE.—
(A) ACREAGES.—In conducting the lease sales required under paragraph (1), the Secretary shall offer not fewer than 4,000,000 acres in each lease sale.
(B) SCHEDULE.—The Secretary shall offer—
(i) an initial lease sale under paragraph (1) not later than 1 year after the date of enactment of this Act; and
(ii) an additional lease sale under paragraph (1) not later than every 2 years after the date of enactment of this Act.
(d) Terms and stipulations for NPR–A lease sales.—In conducting lease sales under subsection (c), the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as described in the NPR–A final environmental impact statement and the NPR–A record of decision.
(e) Receipts.—Section 107(l) of the Naval Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a(l)) is amended—
(1) by striking “All receipts from” and inserting the following:
“(1) IN GENERAL.—Except as provided in paragraph (2), all receipts from”; and
(2) by adding at the end the following:
“(2) PERCENT SHARE FOR FISCAL YEAR 2034 AND THEREAFTER.—Beginning in fiscal year 2034, of the receipts from sales, rentals, bonuses, and royalties on leases issued pursuant to this section after the date of enactment of the Act entitled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’ (119th Congress)—
“(A) 70 percent shall be paid to the State of Alaska; and
“(B) 30 percent shall be paid into the Treasury of the United States.”.