H.R. 526 — Declaration of Energy Independence Act

This section amends the Mineral Leasing Act (30 U.S.C. 226 et seq.), which authorizes the Secretary of the Interior to lease federal lands for onshore oil and gas development, as follows: (a) (1) reduces the royalty rate on oil and gas production to 12.5% (from 16 2/3%) wherever it appears in section 17 (30 U.S.C. 226), and revises section 17(b)(1)(A) to eliminate an exception for communal leases or plans; (2) revises conditions for lease reinstatement under section 31(e)(3) (30 U.S.C. 188(e)(3)) by changing specified thresholds to 16 2/3% (from 20%) wherever "20" appears. (b) reduces the national minimum acceptable bid for competitive oil and gas leases under section 17(b) (30 U.S.C. 226(b)) to $2 per acre (from $10 per acre, including shortening the applicable period from 10 years to 2 years from enactment of the 1987 Federal Onshore Oil and Gas Leasing Reform Act). (c) (1) reduces annual rental rates for oil and gas leases under section 17(d) (30 U.S.C. 226(d)) to not less than $1.50 per acre per year for the first through fifth years and $2 per acre per year thereafter (from not less than $3 per acre per year for the first 10 years, $5 per acre per year for years 11 through 20, and $15 per acre per year thereafter); (2) reduces rentals for reinstated leases under section 31(e)(2) (30 U.S.C. 188(e)(2)) to $10 per acre (from $20). (d) eliminates the fee for expression of interest under section 17(q) (30 U.S.C. 226(q)). (e) revises noncompetitive leasing under section 17 (30 U.S.C. 226) by (1) modifying subsection (b) to offer lands receiving no bids or bids below the minimum acceptable bid under competitive leasing for noncompetitive leasing for 2 years (previously 30 days), and adding a new paragraph (3) allowing holders of certain producing leases on lands where the United States acquires a vested future interest (limited to Forest Service lands acquired under the Act of March 1, 1911) to elect continuation as noncompetitive leases at 12.5% royalty if production averages no more than 15 barrels per day of oil or 60,000 cubic feet per day of gas; (2) replacing subsection (c) to entitle the first qualified applicant to noncompetitive leases at 12.5% royalty and $75 fee (issued within 60 days), with lands reverting to competitive leasing after 2 years if unleased; and (3) replacing subsection (e) [text cut off in provision].