II Calendar No. 125 118THCONGRESS 1 STSESSION S. 535 [Report No. 118–53] To streamline the oil and gas permitting process and to recognize fee owner- ship for certain oil and gas drilling or spacing units, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY27, 2023 Mr. H OEVEN(for himself, Mr. BARRASSO, Mr. CRAMER, and Mr. DAINES) in- troduced the following bill; which was read twice and referred to the Com- mittee on Energy and Natural Resources J ULY11, 2023 Reported by Mr. M ANCHIN, without amendment A BILL To streamline the oil and gas permitting process and to recognize fee ownership for certain oil and gas drilling or spacing units, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Bureau of Land Man-4 agement Mineral Spacing Act’’. 5 VerDate Sep 11 2014 00:52 Jul 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S535.RS S535 kjohnson on DSK79L0C42PROD with BILLS 2 •S 535 RS SEC. 2. COMPLIANCE WITH BLM PERMITTING. 1 (a) I NGENERAL.—Notwithstanding the Mineral 2 Leasing Act (30 U.S.C. 181 et seq.), the Federal Oil and 3 Gas Royalty Management Act of 1982 (30 U.S.C. 1701 4 et seq.), or subpart 3162 of title 43, Code of Federal Reg-5 ulations (or successor regulations), but subject to any 6 State or Tribal requirements and subsection (c), the Sec-7 retary of the Interior shall not require a permit to drill 8 for an oil and gas lease under the Mineral Leasing Act 9 (30 U.S.C. 181 et seq.) for an action occurring within an 10 oil and gas drilling or spacing unit if— 11 (1) less than 50 percent of the minerals within 12 the oil and gas drilling or spacing unit are minerals 13 owned by the Federal Government; and 14 (2) the Federal Government does not own or 15 lease the surface estate within the area directly im-16 pacted by the action. 17 (b) N OTIFICATION.—For each State permit to drill 18 or drilling plan that would impact or extract oil and gas 19 owned by the Federal Government— 20 (1) each lessee, or designee of a lessee, shall— 21 (A) notify the Secretary of the Interior of 22 the submission of a State application for a per-23 mit to drill or drilling plan on submission of the 24 application; and 25 VerDate Sep 11 2014 00:52 Jul 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S535.RS S535 kjohnson on DSK79L0C42PROD with BILLS 3 •S 535 RS (B) provide a copy of the application de-1 scribed in subparagraph (A) to the Secretary of 2 the Interior not later than 5 days after the date 3 on which the permit or plan is submitted; and 4 (2) each lessee, designee of a lessee, or applica-5 ble State shall notify the Secretary of the Interior of 6 the approved State permit to drill or drilling plan 7 not later than 45 days after the date on which the 8 permit or plan is approved. 9 (c) N ONAPPLICABILITY TO INDIANLANDS.—Sub-10 section (a) shall not apply to Indian lands (as defined in 11 section 3 of the Federal Oil and Gas Royalty Management 12 Act of 1982 (30 U.S.C. 1702)). 13 (d) E FFECT.—Nothing in this section affects— 14 (1) other authorities of the Secretary of the In-15 terior under the Federal Oil and Gas Royalty Man-16 agement Act of 1982 (30 U.S.C. 1701 et seq.); or 17 (2) the amount of royalties due to the Federal 18 Government from the production of the Federal min-19 erals within the oil and gas drilling or spacing unit. 20 VerDate Sep 11 2014 00:52 Jul 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S535.RS S535 kjohnson on DSK79L0C42PROD with BILLS Calendar No. 125 118 TH CONGRESS 1 ST S ESSION S. 535 [Report No. 118–53] A BILL To streamline the oil and gas permitting process and to recognize fee ownership for certain oil and gas drilling or spacing units, and for other pur- poses. J ULY 11, 2023 Reported without amendment VerDate Sep 11 2014 00:52 Jul 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6651 Sfmt 6651 E:\BILLS\S535.RS S535 kjohnson on DSK79L0C42PROD with BILLS