MINERAL LEASING ACT MODERNIZATION.

SEC. 50262. MINERAL LEASING ACT MODERNIZATION.(a) Onshore Oil and Gas Royalty Rates.—(1) Lease of oil and gas land.—Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended—(A) in subsection (b)(1)(A), in the fifth sentence—(i) by striking “12.5” and inserting “16⅔”; and (ii) by inserting “or, in the case of a lease issued during the 10-year period beginning on the date of enactment of the Act titled ‘An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14’, 16⅔ percent in amount or value of the production removed or sold from the lease” before the period at the end; and (B) by striking “12½ per centum” each place it appears and inserting “16⅔ percent”. (2) Conditions for reinstatement.—Section 31(e)(3) of the Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by striking “16⅔” each place it appears and inserting “20”. (b) Oil and Gas Minimum Bid.—Section 17(b) of the Mineral Leasing Act (30 U.S.C. 226(b)) is amended—(1) in paragraph (1)(B), in the first sentence, by striking “$2 per acre for a period of 2 years from the date of enactment of the Federal Onshore Oil and Gas Leasing Reform Act of 1987.” and inserting “$10 per acre during the 10-year period beginning on the date of enactment of the Act titled ‘An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14’.”; and (2) in paragraph (2)(C), by striking “$2 per acre” and inserting “$10 per acre”. (c) Fossil Fuel Rental Rates.—(1) Annual rentals.—Section 17(d) of the Mineral Leasing Act (30 U.S.C. 226(d)) is amended, in the first sentence, by 136 STAT. 2057 striking “$1.50 per acre” and all that follows through the period at the end and inserting “$3 per acre per year during the 2-year period beginning on the date the lease begins for new leases, and after the end of that 2-year period, $5 per acre per year for the following 6-year period, and not less than $15 per acre per year thereafter, or, in the case of a lease issued during the 10-year period beginning on the date of enactment of the Act titled ‘An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14’, $3 per acre per year during the 2-year period beginning on the date the lease begins, and after the end of that 2-year period, $5 per acre per year for the following 6-year period, and $15 per acre per year thereafter.”. (2) Rentals in reinstated leases.—Section 31(e)(2) of the Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by striking “$10” and inserting “$20”. (d) Expression of Interest Fee.—Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by adding at the end the following:“(q) Fee for Expression of Interest.—“(1) In general.—The Secretary shall assess a nonrefundable fee against any person that, in accordance with procedures established by the Secretary to carry out this subsection, submits an expression of interest in leasing land available for disposition under this section for exploration for, and development of, oil or gas. “(2) Amount of fee.—“(A) In general.—Subject to subparagraph (B), the fee assessed under paragraph (1) shall be $5 per acre of the area covered by the applicable expression of interest. “(B) Adjustment of fee.—The Secretary shall, by regulation, not less frequently than every 4 years, adjust the amount of the fee under subparagraph (A) to reflect the change in inflation.” . (e) Elimination of Noncompetitive Leasing.—(1) In general.—Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended—(A) in subsection (b)—(i) 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 (ii) by striking paragraph (3); (B) 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 (C) by striking subsection (e) and inserting the following:“(e) Term of Lease.—136 STAT. 2058 “(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 and diligently prosecuted prior to the end of the primary term of the lease shall be extended for 2 years and for any period thereafter during which oil or gas is produced in paying quantities.” . (2) Conforming amendments.—Section 31 of the Mineral Leasing Act (30 U.S.C. 188) is amended—(A) in subsection (d)(1), in the first sentence, by striking “or section 17(c) of this Act”; (B) in subsection (e)—(i) in paragraph (2)—(I) by striking “either”; and (II) by striking “or the inclusion” and all that follows through “, all”; and (ii) 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” ; (C) in subsection (g)—(i) 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”; (ii) by striking paragraph (2); (iii) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and (iv) 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”; (D) in subsection (h), by striking “subsections (d) and (f) of this section” and inserting “subsection (d)”; (E) 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)” ; (F) by striking subsection (f); and (G) by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.