Federal Oil and Gas Lease Management Improvement Act of 1999
Referred to the Subcommittee on Energy and Mineral Resources.
Congressional Research Service
Official summary
Version 00 · Introduced in House · May 27, 1999
TABLE OF CONTENTS: Title I: State Option to Regulate Oil and Gas Lease Operations on Federal Land Title II: Use of Cost Savings from State Regulation Title III: Streamlining and Cost Reduction Title IV: Federal Royalty Certainty Title V: Royalty Reinvestment in America Federal Oil and Gas Lease Management Improvement Act of 1999 - Title I: State Option to Regulate Oil and Gas Lease Operations on Federal Lands - Authorizes a State to notify the Secretary of the Interior of its intent to accept authority for oil and gas lease operations on Federal lands within such State. Transfers such authority by operation of law from the Bureau of Land Management (BLM) to a State six months after the Secretary receives the State's notice. Title II: Use of Cost Savings from State Regulation - Instructs the Secretary to compensate any State for costs incurred to implement the transferred authorities. (Sec. 202) Amends the Mineral Leasing Act to direct the Secretary to exclude from the 50 percent deduction from oil, gas, and geothermal revenues, with respect to calculation of specified Federal payments to States, the costs of preparing resource management planning documents and analyses for areas in which oil and gas leasing is excluded, or areas in which the primary activity under review is not oil and gas leasing and development. Title III: Streamlining and Cost Reduction - Prohibits the Department of the Interior from recovering its costs with respect to applications and other documents relating to oil and gas leases. (Sec. 302) Prescribes guidelines for the decision-making process of the BLM and the Forest Service affecting oil and gas leases and operations. (Sec. 303) Directs the BLM and the Forest Service to assure that unwarranted denials and stays of lease issuance and unwarranted restrictions on lease operations are eliminated from the administration of oil and gas leasing on Federal lands. Sets forth a timetable for the Secretary of the Interior to: (1) report jointly with the Secretary of Agriculture to the Congress on the most efficient means of eliminating overlap and duplication between the BLM and the Forest Service; (2) publish notice in the Federal Register of a national inventory of oil and gas reserves and potential resources underlying Federal lands; and (3) report to the Congress a revised inventory of such reserves and resources as a result of public comment, and specifically indicate BLM steps to increase the percentage of lands open for oil and gas development. Title IV: Federal Royalty Certainty - Amends the Outer Continental Shelf Lands Act and the Mineral Leasing Act regarding oil and gas leases to provide that royalty payments due: (1) in value shall be based upon the value of oil or gas production at the lease in marketable condition; and (2) in amount shall be based upon the royalty share of production at the lease. (Sec. 402) Provides that if payments in value or amount are calculated from a point away from the lease the lessee shall be allowed reimbursements at a reasonable commercial rate for certain services beyond the lease through the point of disposition or delivery. (Sec. 404) Exempts Indian land from the application of this title. Title V: Royalty Reinvestment in America - Directs the Secretary to allow a credit against the payment of royalties on Federal oil production and gas production, respectively, in an amount equal to 20 percent of the capital expenditures made on exploration and development activities on Federal oil and gas leases, whenever the cash price of West Texas Intermediate crude oil is less than $18 per barrel for 90 consecutive pricing days, or whenever natural gas prices as delivered at Henry Hub, Louisiana, are less than $2.30 per million British thermal units for 90 consecutive days. Declares that in no case shall such capital expenditures made on Outer Continental Shelf leases be credited against onshore Federal royalty obligations. (Sec. 502) Requires the Secretary, whenever such price conditions apply, to reduce the royalty rate as production declines for specified kinds of onshore or offshore oil or gas wells. (Sec. 503) Specifies circumstances when and procedures by which well operators may suspend operation and production of oil or natural gas wells for a two-year period.
Source last updated: Aug 20, 2025. Consult Congress.gov for the current record.
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