Bureau of Land Management Mineral Spacing Act

Summary#

This bill would change the Mineral Leasing Act so that a company would not need a Federal drilling permit for oil and gas work done on non‑Federal surface land when the United States owns less than 50% of the subsurface mineral interest and the company submits a State permit. The bill says those activities would not count as a major Federal action under the National Environmental Policy Act, would need no additional Federal approvals, could start 30 days after the State permit is submitted, and would not be subject to certain provisions of the National Historic Preservation Act or section 7 of the Endangered Species Act. The bill keeps existing rules about paying royalties and the Secretary’s authority to audit, inspect, and collect penalties. It does not apply to Indian lands and includes a definition of "Indian land."

What it means for you#

  • If you operate on non‑Federal surface land and the United States owns less than 50% of the subsurface minerals, you could use a State permit instead of a Federal drilling permit, provided you submit the State permit to the Secretary.
  • Work could begin 30 days after the State permit is submitted, subject to royalty reporting and Federal inspections.
  • The change would not apply to Indian lands as defined in the bill.

Expenses#

No publicly available information.

Proponents' View#

The bill’s text says it is intended to streamline the oil and gas permitting process and to recognize fee ownership for certain drilling or spacing units by allowing State permits to substitute for a Federal drilling permit when the United States owns less than 50% of the subsurface minerals.

Opponents' View#

No publicly available information.