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S 451119th CongressIn Committee

Restoring State Mineral Revenues Act

Introduced: Feb 6, 2025
Sponsor: Sen. Daines, Steve [R-MT] (R-Montana)
Standard Summary
Comprehensive overview in 1-2 paragraphs

Restoring State Mineral Revenues Act would remove the administrative fee that the Mineral Leasing Act presently authorizes the federal government to collect for certain lease-related services. Specifically, the bill rewrites Section 35 of the Mineral Leasing Act (30 U.S.C. 191) to eliminate the fee provision (subsection (b)) and adjusts the remaining structure accordingly. It also makes conforming amendments to related laws (the Mineral Leasing Act for Acquired Lands, the Geothermal Steam Act, and the Federal Oil and Gas Royalty Management Act) to remove references to the now-eliminated fee and to preserve consistency across the statutes. The core effect is straightforward: end the administrative fee on federal mineral leasing transactions. The bill does not change royalty rates, bonuses, or other lease terms. While the title suggests a goal of restoring state mineral revenues, the text focuses on removing the fee and aligning other statutes; how state revenues would be affected depends on mechanisms not detailed in the bill.

Key Points

  • 1Eliminates the administrative fee authorized under Section 35 of the Mineral Leasing Act (removing subsection (b) and the related references).
  • 2Reorganizes the remaining provisions of Section 35 (renumbering subsections) to reflect the fee’s removal.
  • 3Adds conforming amendments to other statutes that reference the now-removed fee, including:
  • 4- Mineral Leasing Act for Acquired Lands (30 U.S.C. 355)
  • 5- Geothermal Steam Act of 1970 (30 U.S.C. 1019)
  • 6- Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1735)
  • 7Maintains existing lease economics (royalty rates, bonuses, terms) aside from removing the administrative fee.
  • 8Creates a need for agency implementation and potential budget/revenue implications due to the fee’s removal, and it removes cross-references that could cause administrative confusion.

Impact Areas

Primary group/area affected- Private sector and public lessees in oil, gas, and other mineral activities on federal lands (potentially lower upfront or ongoing administrative costs).- Federal land management agencies (e.g., Interior Department/BLM) and their mineral leasing programs, which currently collect the administrative fee.- State governments that rely on or anticipate revenues associated with mineral leasing and related flows, given the bill’s aim to “restore state mineral revenues.”Secondary group/area affected- Federal budgeting and revenue administration (changes to collections could affect agency budgets and funding for program operations).- Industry service providers and consultants that work with mineral lease processing and administration.Additional impacts- Regulatory and transitional considerations (requiring agencies to revise regulations, forms, and IT systems that reference the administrative fee and to implement the statutory changes consistently across related laws).- No change to royalty, bonus, or environmental terms means environmental oversight, rental pricing, and land-use terms remain governed by existing provisions outside the removed fee.- The text does not specify how state revenue would be redistributed; the actual impact on state revenues would depend on mechanisms outside this bill or future implementing rules.
Generated by gpt-5-nano on Nov 1, 2025