U.S. Sen. John Hoeven (R-ND) and U.S. Rep. Stephanie Bice (R-OK) last week introduced bicameral legislation that would simplify the federal permitting process for energy development, remove redundant regulations, and better respect the rights of private mineral holders.
Specifically, the Bureau of Land Management (BLM) Mineral Spacing Act, S. 722/H.R. 1555, would streamline the oil and gas permitting process and recognize fee ownership for certain oil and gas drilling or spacing units, according to the Congressional Record bill summary.
“As part of our efforts to make the U.S. energy dominant again, this legislation will empower the development of privately held and state-owned energy resources, but which can’t currently be accessed due to federal bureaucratic hurdles,” Sen. Hoeven said on Feb. 26. “It makes no sense that the federal government can block development when it only has a minority share of minerals in a given formation and no surface acre rights.”
This scenario, added the senator, enabled the Biden administration to lock away vast areas of non-federal minerals, particularly in split-estate areas like North Dakota.
In 2022, for instance, the Biden administration reduced access to federal oil and gas reserves, allowing just 20 percent of available acreage for oil and gas leasing, while also raising production fees on the lands by 50 percent, according to the lawmakers.
“Our legislation corrects this issue, better enabling private individuals and states to exercise their property rights, while strengthening our nation’s energy security,” said Sen. Hoeven.
If enacted, the BLM Mineral Spacing Act would remove the BLM permitting requirement in instances when less than half of the subsurface minerals within a drilling spacing unit are owned by the federal government; and the federal government does not own or lease any surface rights within the impacted area.
Additionally, the bill would permit the federal government to receive royalties from energy production within the particular drilling or spacing unit, and would subject energy producers to all state laws, regulations, and guidance governing energy activity in each relevant jurisdiction, according to a bill summary provided by Rep. Bice’s office.
“I remain committed to cutting bureaucratic red tape for our energy producers, who have faced relentless attacks from the Biden administration,” Rep. Bice said. “By ensuring the BLM can better allocate its resources, we can strengthen domestic energy production and reinforce America’s role as a leader in affordable, reliable, and sustainable energy.
“I appreciate Sen. Hoeven’s partnership on this critical issue,” added the congresswoman, who sponsored H.R. 1555 on Feb. 25, the same day Sen. Hoeven sponsored the identical S. 722 alongside three Republican original cosponsors, including U.S. Sen. Steve Daines (R-MT).