Bill > HR526

This bill amends the Mineral Leasing Act to make several key changes to oil and gas leasing on Federal lands. The bill reduces the standard royalty rate from 16 2/3 percent to 12 1/2 percent for oil and gas extraction, lowers the minimum bid for leasing from $10 to $2 per acre, and reduces annual rental rates from a maximum of $15 per acre to $1.50 per acre for the first five years and $2 per acre thereafter. The legislation also eliminates the fee for expressing interest in a lease and modifies noncompetitive leasing procedures, allowing certain lease holders with low-producing wells to continue their leases under more favorable terms. Additionally, the bill provides new provisions for reinstating leases that have been cancelled or terminated, including options for reducing royalty rates in cases of economic hardship or undue production challenges. The changes are designed to make oil and gas leasing on Federal lands more attractive to energy companies by reducing financial barriers and providing more flexible leasing options.

Agriculture and Natural Resources

https://www.congress.gov/bill/119th-congress/house-bill/526/all-info