HR 1555119th CongressIn Committee

Bureau of Land Management Mineral Spacing Act

Introduced: Feb 25, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

H.R. 1555, the Bureau of Land Management Mineral Spacing Act, would amend the Mineral Leasing Act to streamline oil and gas permitting on non-federal surface lands. Specifically, it adds a new provision (Section 17(r)) that lets an operator conduct oil and gas exploration and production on non-Federal surface estates without a Federal drilling permit when the United States holds less than 50 percent of the subsurface mineral estate to be accessed, provided the operator first obtains a State permit. The action would not be considered a major Federal action under NEPA, would require no additional Federal action, could begin 30 days after the State permit submission, and would not be subject to certain federal environmental review or protection statutes (NHPA and the Endangered Species Act). Federal royalties would remain due, and the Secretary would retain audit and enforcement authority. The provision would not apply to Indian lands. The bill’s title also references recognizing fee ownership for certain oil and gas drilling or spacing units, though the text provided does not detail that aspect.

Key Points

1New provision (r) added to Section 17 of the Mineral Leasing Act:
2- No Federal drilling permit required for oil and gas activities on non-Federal surface if the U.S. owns less than 50% of the subsurface mineral estate and a State permit is submitted.
3Federal action status:
4- Activities under this provision are not considered a major Federal action under NEPA and require no additional Federal action.
5- Start of activity may occur 30 days after State permit submission.
6- Not subject to sections of the National Historic Preservation Act (NHPA) or the Endangered Species Act (ESA).
7Royalties and accountability:
8- Royalties owed to the United States are unchanged, and the Secretary retains authority to audit, inspect, and impose penalties for noncompliance.
9- The Secretary may conduct onsite reviews to ensure proper measurement, reporting, and payment of royalties.
10Indian lands:
11- The new provision does not apply to Indian lands.
12- Indian land is defined to include lands within reservations and certain trust or restricted titles.
13Purpose and scope:
14- The underlying aim is to streamline and delegate certain permitting functions to state regulators under specific ownership conditions, while preserving revenue collection and oversight.

Impact Areas

Primary affected group/area:- Oil and gas operators seeking to drill on non-Federal surface land where the US holds less than 50% of the subsurface estate.- State regulatory agencies and permitting authorities, which would take on a central permitting role for these activities.Secondary affected groups/areas:- Federal government, particularly the Department of the Interior and the Bureau of Land Management, which would retain royalty collection and enforcement responsibilities.- Private or state landowners with non-Federal surface estates accessing subsurface minerals.Additional impacts:- Environmental review processes: The proposal would exempt these activities from NEPA major federal action review and from certain federal protections under NHPA and ESA, potentially reducing federal environmental oversight for overlapping federal mineral interests.- Revenue and accountability: Royalties would remain, and the federal government would continue to audit and enforce royalty collection, preserving financial accountability.- Indian lands and tribes: The provision would not apply to Indian lands, protecting tribal interests but potentially creating differences in permitting pathways for lands adjacent to or interacting with trust/tribal minerals.- Potential state-federal coordination: Streamlining relies on effective state permitting regimes; differences in state standards could affect consistency and predictability for operators and neighboring communities.

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