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Bill96th CongressFiled Aug 2, 1979Energy
S. 1637

Federal Oil and Gas Leasing Act of 1980

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What it doesSummary reported to senate with amendment(s) (May 30, 1980)

(Reported to Senate from the Committee on Energy and Natural Resources with amendment, S. Rept. 96-793)

Federal Oil and Gas Leasing Act of 1980 - Amends the Mineral Leasing Act of 1920 to alter the authority of the Secretary of the Interior to grant leases of oil and gas lands.

Permits the Secretary to lease onshore Federal lands for oil and gas development by competitive bidding only on the basis of bidding systems set forth in the Outer Continental Shelf Lands Act. Directs the Secretary to issue a lease to the highest responsible qualified bidder for each tract offered at a sale.

Directs the Secretary, at least once each quarter, to invite the public nomination of areas favorable for the discovery of oil or gas. Provides that any area which the Secretary determines to be available and suitable for oil and gas leasing shall automatically be offered for lease if the area receives either: (1) two or more public nominations; or (2) a single nomination in two successive quarters. Directs the Secretary to hold competitive oil and gas lease sales, consisting of nominated tracts and any additional areas selected by the Secretary on a quarterly basis, in states where tract nominations are received.

Increases the size of the tract which may be leased from 640 to 5,120 acres, or larger if necessary to comprise a reasonable economic unit.

Provides that a lease shall issue for an initial period of five years and so long thereafter as oil and gas is produced in paying quantities or drilling or reworking operations as approved by the Secretary are conducted. Permits a lessee to apply to extend the initial term for an additional term of up to five years. Requires the extension application to include an exploration plan. Authorizes the extension only if the lessee cannot explore due to adverse technical, economic, or environmental conditions.

Increases the minimum annual rental fee from 50 cents to two dollars per acre. Prescribes an increased minimum royalty of four dollars per acre (up from one dollar) in lieu of rental at the expiration of each lease year beginning on or after a discovery of oil or gas in paying quantities.

Provides that actions taken by the Secretary pursuant to the bidding, nomination, and lease procedures under this Act shall not be considered "major Federal actions" for purposes of the National Environmental Policy Act.

Permits the Secretary to disapprove an assignment of a lease: (1) of a separate zone or deposit; (2) of less than 640 acres; or (3) containing an overriding royalty which exceeds limits set by regulation.

Directs the Secretary to issue the rules and regulations necessary for this Act within 180 days of enactment.

What just happenedMay 30, 1980

Reported to Senate from the Committee on Energy and Natural Resources with amendment, S. Rept. 96-793.

Who’s behind it

Sen. Jackson, Henry M. [D-WA](D-WA)Sponsor
Read on Congress.gov
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  1. May 30, 1980Committee

    Reported to Senate from the Committee on Energy and Natural Resources with amendment, S. Rept. 96-793.

    Energy and Natural Resources Committee
  2. May 30, 1980Committee14000

    Reported to Senate from the Committee on Energy and Natural Resources with amendment, S. Rept. 96-793.

    Energy and Natural Resources Committee
  3. Aug 2, 1979IntroReferral

    Referred to Senate Committee on Energy and Natural Resources.

    Energy and Natural Resources Committee
  4. Aug 2, 1979IntroReferral10000

    Introduced in Senate

Reported to Senate with amendment(s)May 30, 198001
(Reported to Senate from the Committee on Energy and Natural Resources with amendment, S. Rept. 96-793)

Federal Oil and Gas Leasing Act of 1980 - Amends the Mineral Leasing Act of 1920 to alter the authority of the Secretary of the Interior to grant leases of oil and gas lands.

Permits the Secretary to lease onshore Federal lands for oil and gas development by competitive bidding only on the basis of bidding systems set forth in the Outer Continental Shelf Lands Act. Directs the Secretary to issue a lease to the highest responsible qualified bidder for each tract offered at a sale.

Directs the Secretary, at least once each quarter, to invite the public nomination of areas favorable for the discovery of oil or gas. Provides that any area which the Secretary determines to be available and suitable for oil and gas leasing shall automatically be offered for lease if the area receives either: (1) two or more public nominations; or (2) a single nomination in two successive quarters. Directs the Secretary to hold competitive oil and gas lease sales, consisting of nominated tracts and any additional areas selected by the Secretary on a quarterly basis, in states where tract nominations are received.

Increases the size of the tract which may be leased from 640 to 5,120 acres, or larger if necessary to comprise a reasonable economic unit.

Provides that a lease shall issue for an initial period of five years and so long thereafter as oil and gas is produced in paying quantities or drilling or reworking operations as approved by the Secretary are conducted. Permits a lessee to apply to extend the initial term for an additional term of up to five years. Requires the extension application to include an exploration plan. Authorizes the extension only if the lessee cannot explore due to adverse technical, economic, or environmental conditions.

Increases the minimum annual rental fee from 50 cents to two dollars per acre. Prescribes an increased minimum royalty of four dollars per acre (up from one dollar) in lieu of rental at the expiration of each lease year beginning on or after a discovery of oil or gas in paying quantities.

Provides that actions taken by the Secretary pursuant to the bidding, nomination, and lease procedures under this Act shall not be considered "major Federal actions" for purposes of the National Environmental Policy Act.

Permits the Secretary to disapprove an assignment of a lease: (1) of a separate zone or deposit; (2) of less than 640 acres; or (3) containing an overriding royalty which exceeds limits set by regulation.

Directs the Secretary to issue the rules and regulations necessary for this Act within 180 days of enactment.

Introduced in SenateAug 2, 197900

Federal Oil and Gas Leasing Act of 1979 - Alters the authority of the Secretary of the Interior to grant leases of oil and gas lands.

Permits the Secretary to lease lands which are favorable for the discovery of oil or gas within a producing geologic province only by competitive bidding. Sets forth the conditions for such bidding.

Permits the leasing of all other lands without such bidding.

Increases the size of the tract which may be leased from 640 to 2,560 acres or larger, in the discretion of the Secretary.

Establishes an initial period of five years for both competitive and noncompetitive leases. Permits an extension of such leases up to a total of five years under specified conditions.

Authorizes the Secretary to disapprove the assignment of such leases under specified conditions.

Permits the Secretary to refuse to accept a bid or issue, readjust or assign a lease when such action would be inconsistent with the antitrust laws.