H.R. 3061

119th CONGRESS 1st Session

To require the Secretary of the Interior to conduct certain offshore lease sales, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · April 29, 2025 · Sponsor: Mr. Ezell · Committee: Committee on Natural Resources

H.R. 3061

SEC. 1. Short title

This Act may be cited as the or the .

SEC. 2. Finding

Congress finds that President Donald Trump issued Executive Order 14156 (90 Fed. Reg. 8433; relating to declaring a national energy emergency) on January 20, 2025.

SEC. 3. Offshore oil and gas lease sales

(a) Definitions
- In this section:
  - The term offshore lease sale means an oil and gas lease sale that—
  - The term Secretary means the Secretary of the Interior.
(b) Waiver
- The Secretary may waive any requirement of the Outer Continental Shelf Lands Act () that would delay final approval of an offshore lease sale under subsection (c). 43 U.S.C. 1331 et seq.
(c) Requirement
- In addition to the lease sales planned pursuant to section 18 of the Outer Continental Shelf Lands Act (), the Secretary shall conduct not fewer than 26 offshore lease sales during the 10-year period beginning on the date of enactment of this Act, including 20 lease sales in the Gulf of America and 6 lease sales in the Cook Inlet Planning Area. 43 U.S.C. 1344
(d) Timing
- (1) Gulf of America
  - In conducting the offshore lease sales in the Gulf of America required under subsection (c), the Secretary shall hold not fewer than 1 lease sale under this paragraph on or before each of the following dates:
    - August 31, 2025.
    - March 31, 2026.
    - August 31, 2026.
    - March 31, 2027.
    - August 31, 2027.
    - March 31, 2028.
    - August 31, 2028.
    - March 31, 2029.
    - August 31, 2029.
    - March 31, 2030.
    - August 31, 2030.
    - March 31, 2031.
    - August 31, 2031.
    - March 31, 2032.
    - August 31, 2032.
    - March 31, 2033.
    - August 31, 2033.
    - March 31, 2034.
    - August 31, 2034.
    - March 31, 2035.
- (2) Cook inlet planning area
  - In conducting the offshore lease sales in the Cook Inlet Planning Area required under subsection (c), the Secretary shall hold not fewer than 1 lease sale under this paragraph on or before each of the following dates:
    - August 31, 2025.
    - March 31, 2027.
    - August 31, 2028.
    - March 31, 2030.
    - August 31, 2032.
    - March 31, 2034.
(e) Area offered for lease
- (1) Acreage
  - (A) Gulf of America
    - For each offshore lease sale conducted under subsection (c) in the Gulf of America, the Secretary shall offer for leasing not fewer than—
      - (i) 80,000,000 acres; or
      - (ii) if the total number of unleased acres is less than 80,000,000 acres, the total number of such acres.
  - (B) Cook Inlet Planning Area
    - For each offshore lease sale conducted under subsection (c) in the Cook Inlet Planning Area, the Secretary shall offer for leasing not fewer than—
      - (i) 1,000,000 acres; or
      - (ii) if the total number of unleased acres is less than 1,000,000 acres, the total number of such acres.
- (2) Location
  - (A) Gulf of America
    - An offshore lease sale conducted under subsection (c) in the Gulf of America shall offer the areas identified as the Proposed Final Program Area in Figure S–1 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
  - (B) Cook Inlet Planning Area
    - An offshore lease sale conducted under subsection (c) in the Cook Inlet Planning Area shall only offer an area within the Planning Area Boundary depicted in Figure S–2 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
(f) Commingling wells
- For the purposes of commingling wells in multiple reservoirs in a common wellbore on the Outer Continental Shelf, the Secretary of Interior shall approve operators commingling requests within 45 days of receipt of an application.
(g) Restoring Reasonable Royalty Rates
- Section 8(a)(1) of the Outer Continental Shelf Lands Act () is amended— 43 U.S.C. 1337(a)(1)
  - in subparagraph (A), by striking and inserting ;
  - in subparagraph (C), by striking and inserting ;
  - in subparagraph (F), by striking and inserting ; and
  - in subparagraph (H), by striking and inserting .
(h) First production incentive pilot program
- (1) In general
  - For any lease issued pursuant to an offshore lease sale required by this section, the Secretary shall establish a pilot program under which the Secretary may reduce the royalty rate under section 8(a)(1) of the Outer Continental Shelf Lands Act () to 10 percent for the first 7 years of production from the area of the lease if the leaseholder achieves first production from such area by not later than 3 years after the date on which the lease is issued. 43 U.S.C. 1337(a)(1)
- (2) Application
  - A leaseholder seeking a royalty rate reduction under this subsection shall submit to the Secretary an application, which shall include evidence that the leaseholder met the first production milestone described in paragraph (1), by not later than 60 days after achieving the milestone.
- (3) Limitation
  - The Secretary may not reduce the royalty rate under paragraph (1) for more than 25 leases.
- (4) Report
  - Not later than December 31, 2030, the Secretary shall submit to Congress a report on the effectiveness of the pilot program at accelerating offshore oil and gas production.
- (5) First production defined
  - In this subsection, the term first production means the date on which oil or gas is produced in paying quantities, as determined by the Secretary.

SEC. 4. Compliance with other Federal law

During the period beginning on the date of the enactment of this Act and ending on the date that is 2 years after the date on which the last lease sale required to be held under section 3 is held, with respect to each lease sale held, lease issued, and any activity associated with a lease issued pursuant to section 3, the Outer Continental Shelf Lands Act (), or section 50264 of (commonly referred to as the ) that requires a Federal authorization in the Gulf of America— Inflation Reduction Act of 2022 43 U.S.C. 1331 et seq.; Public Law 117–169
- compliance with the biological opinion issued by the National Marine Fisheries Service titled and the incidental take statement associated with such biological opinion (published March 12, 2020, and updated April 26, 2021) shall be deemed to be compliance with each applicable requirement of the Endangered Species Act of 1973 () and the Marine Mammal Protection Act of 1972 (); Biological Opinion on the Federally Regulated Oil and Gas Program Activities in the Gulf of Mexico 16 U.S.C. 1531 et seq.; 16 U.S.C. 1361 et seq.
- the document published by the Bureau of Ocean Energy Management titled (OCS EIS/EA BOEM 2023–001; January 2023) and the documents tiered to and incorporated by reference therein shall be deemed sufficient to comply with the National Environmental Policy Act of 1969 () and division A of subtitle III of title 54, United States Code (commonly referred to as the ); and Gulf of Mexico OCS Lease Sales 259 and 261 Final Supplemental Environmental Impact Statement National Historic Preservation Act 42 U.S.C. 4321 et seq.
- the consistency determinations prepared by the Bureau of Ocean Energy Management under section 307 of the Coastal Zone Management Act of 1972 () for Lease Sale 261 for the States of Texas, Louisiana, Mississippi, Alabama, and Florida shall be deemed sufficient to comply with that section (). 16 U.S.C. 1456; 16 U.S.C. 1456
Notwithstanding the Endangered Species Act of 1973 () and the Marine Mammal Protection Act of 1972 (), a reasonable and prudent alternative or mitigation measures for Balaenoptera ricei shall not have any force or effect nor apply to any oil and gas operation in the Gulf of America, for oil and gas activities in the Gulf of America which would impact a lessee’s activities authorized under the Outer Continental Shelf Lands Act (), section 50264 of (commonly referred to as the ), or this Act with respect to offshore oil and gas exploration, development, and production. Inflation Reduction Act of 2022 16 U.S.C. 1531 et seq.; 16 U.S.C. 1361 et seq.; 43 U.S.C. 1331 et seq.; Public Law 117–169

SEC. 5. Judicial and administrative review

(a) In general
- If the Secretary of the Interior fails to hold a lease sale required under section 3 within 10 days of the date required by that section, a potential responsible bidder may bring a civil action consistent with section 23(c)(2) of the Outer Continental Shelf Lands Act () to require the Secretary to hold the lease sale in accordance with section 3 of this Act and the Outer Continental Shelf Lands Act (), notwithstanding the requirements of section 18 of that Act (). 43 U.S.C. 1349(c)(2); 43 U.S.C. 1331 et seq.; 43 U.S.C. 1344
(b) Judicial proceedings
- (1) In general
  - If the court finds that the Secretary failed to hold a lease sale as described in subsection (a), the court shall enter an order requiring the Secretary to hold the lease sale not later than 120 days after the date required under section 3 for such lease sale and may appoint a special master under subsection (d) to ensure compliance with such order.
- (2) Failure to comply
  - (A) In general
    - If the Secretary fails to comply with an order entered under this subsection, the court shall impose fines beginning 30 days after the date on which the Secretary fails to hold a lease sale required under section 3, unless the Secretary demonstrates to the satisfaction of the court that the failure of the Secretary to comply with the order resulted from circumstances beyond the control of the Secretary.
  - (B) Extension of period to comply
    - If under subparagraph (A) the Secretary demonstrates to the satisfaction of the court that the failure of the Secretary to comply with an order entered under this subsection resulted from circumstances beyond the control of the Secretary, the court may extend the date in the order requiring the Secretary to hold the lease sale that is the subject of the order by 30 days.
  - (C) Failure to comply during extension period
    - If the Secretary fails to hold a lease sale described in subparagraph (B) within the period described in that subparagraph, the court shall impose fines beginning on the day after the date on which that period ends and appoint a special master in accordance with subsection (d).
(c) Statute of limitations
- Any action under this section shall be filed not later than 30 days after the date by which the lease sale was required to be held under section 3.
(d) Appointment of special master
- (1) In general
  - Upon finding under subsection (b)(1) that the Secretary has failed to hold a lease sale required under section 3, the court may appoint a special master to monitor compliance with the order entered by the court under that subsection.
- (2) Powers and duties of special master
  - A special master appointed under paragraph (1) shall have all the powers and duties necessary to monitor the actions necessary for the Secretary to hold the lease sale described in paragraph (1), including—
    - monitoring the advertising and promotion of the lease sale;
    - the publication of notices in the Federal Register for the lease sale; and
    - the issuance of leases to bidders that submit acceptable bids.
(e) Timeframe for conducting missed lease sale
- The court, the Secretary, and the special master, as applicable, shall ensure that a lease sale that is the subject of an action brought under subsection (a) is held not later than 120 days after the original sale date.
(f) Use of department of the interior funds
- (1) In general
  - The costs associated with monitoring a lease sale by a special master appointed under subsection (d) shall be paid out of funds appropriated or otherwise made available to the Office of the Secretary of the Interior.
- (2) Allocation of funds
  - The Secretary shall allocate funds sufficient to cover the costs of any special master appointed under subsection (d).
(g) Limitation on judicial review
- (1) In general
  - A civil action challenging an activity under section 3 shall not—
    - affect the validity of any lease issued under such a lease sale; or
    - cause a delay with respect to the processing or issuance of any such lease or any associated—
      - (i) exploration plan;
      - (ii) development plan;
      - (iii) development and operations coordination document;
      - (iv) application for permit to drill; or
      - (v) application for any other Federal authorization for an activity carried out within the area of such a lease.
- (2) Restriction
  - If, in a civil action challenging a lease sale held under section 3, a court finds that the lease sale was not carried out in compliance with section 3, the court—
    - shall remand the matter to the Secretary or other appropriate officer to correct the noncompliance; and
    - shall not—
      - (i) set aside, vacate, or enjoin the lease sale or any lease issued pursuant to the lease sale; or
      - (ii) enjoin the Secretary from issuing leases pursuant to the challenged lease sale.
- (3) Venue
  - Any civil action described in this subsection shall be subject to judicial review only consistent with section 23(c)(2) of the Outer Continental Shelf Lands Act (). 43 U.S.C. 1349(c)(2)
(h) Security for injunctive relief
- A party seeking injunctive relief to delay or prevent a lease sale held under section 3 or to delay or prevent the issuance of a lease by the Secretary following such a lease sale, shall provide security pursuant to Federal Rule of Civil Procedure 65(c), or pursuant to Federal Rule of Appellate Procedure 8(a)(2)(E), as applicable.
(i) Other actions
- Section 4 shall be subject to judicial review only consistent with section 23(c)(2) of the Outer Continental Shelf Lands Act (). 43 U.S.C. 1349(c)(2)

SEC. 6. Continuous leasing programs

Section 18 of the Outer Continental Shelf Lands Act () is amended by adding at the end the following: 43 U.S.C. 1344
- (j) Continuous leasing program
  - (1) Purpose
    - The leasing program required under this section shall be maintained without interruption to ensure a continuous schedule of offshore oil and gas lease sales on the outer Continental Shelf, avoiding any lapse between the expiration of one 5-year leasing program and the approval of the subsequent program.
  - (2) Timely approval
    - For each leasing program covering a 5-year period beginning on or after the date of enactment of the , the Secretary shall approve the final leasing program by not later than 120 days before the expiration date of the preceding leasing program.
  - (3) Preparation schedule
    - To meet the requirement of paragraph (2), the Secretary shall—
      - not later than 24 months before the expiration of the leasing program in effect, publish a draft proposed leasing program for the subsequent 5-year period; and
      - complete the consultation, comment, and approval processes required under this section in time to comply with paragraph (2).
  - (4) Default schedule in case of delay
    - If the Secretary fails to approve a leasing program for a subsequent 5-year period by the date specified in paragraph (2), the following leasing schedule and requirements shall immediately take effect as the operative leasing program under this section for that 5-year period:
    - (A) Gulf of America Region
      - The Secretary shall annually conduct two region-wide oil and gas lease sales, one in the Central Gulf of America Planning Area and one in the Western Gulf of America Planning Area, as described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
    - (B) Alaska Region
      - The Secretary shall annually conduct one region-wide oil and gas lease sale in the Alaska Region of the outer Continental Shelf, as described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
    - (C) Scope of Offerings
      - Each lease sale conducted under this paragraph shall include all unleased acres in the areas identified in Figure 1–2 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
  - (5) Environmental compliance for default schedule
    - Upon the application of paragraph (4), holding a lease sale under the replacement schedule described in that paragraph shall not require additional analysis under the National Environmental Policy Act of 1969, and the environmental reviews specified in section 4(a)(2) of the shall be deemed sufficient to meet all requirements of the National Environmental Policy Act of 1969 for such lease sales, lease issuances, and associated activities requiring Federal authorization on such leases.
  - (6) Bid acceptance and lease issuance
    - If the Secretary receives an acceptable bid for any tract offered in a lease sale held pursuant to the schedule described under paragraph (4) (as determined under the Bureau of Ocean Energy Management ‘Summary of Procedures for Determining Bid Adequacy at Offshore Oil and Gas Lease Sales Effective March 2016’), the Secretary shall issue a lease for such tract not later than 90 days after the date of the lease sale.

SEC. 7. Minimum lease sales

Section 18 of the Outer Continental Shelf Lands Act () is further amended by adding at the end the following: 43 U.S.C. 1344
- (k) Minimum lease sales
  - (1) Requirement
    - Beginning on January 1, 2035, the Secretary may only approve a leasing program under this section if the leasing program provides for offering at least 15 offshore lease sales during a period of 5 years.
  - (2) Replacement schedule
    - If a court determines a leasing program under this section does not meet the requirement of paragraph (1), the following offshore lease sale schedule shall immediately replace such program as the operative leasing program under this section, notwithstanding any other provision of this section:
    - (A) Gulf of America sales
      - (i) The Secretary shall conduct 2 offshore lease sales each year in the Gulf of America region during the 5-year period of the replaced program, totaling 10 lease sales.
      - (ii) For each lease sale under this subparagraph, the Secretary shall offer all unleased acres in the Gulf of America region, as identified in Figure S–1 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
      - (iii) In each lease sale under this subparagraph, the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale titled (85 Fed. Reg. 8010; February 12, 2020), except that the net royalty rate payable to the Federal Government shall not exceed 18.75 percent. Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254
      - (iv) The Secretary shall conduct the first lease sale under this subparagraph by not later than 6 months after the start of the 5-year period of the replaced program, with subsequent sales not later than every 7 months thereafter, ensuring all sales are completed within the 5-year period.
    - (B) Alaska outer continental shelf sales
      - (i) The Secretary shall conduct 5 region-wide offshore lease sales on the Alaska outer Continental Shelf during the 5-year period of the replaced program.
      - (ii) For each lease sale under this subparagraph, the Secretary shall offer all unleased acres across the Alaska outer Continental Shelf, in the areas identified in Figure 1–2 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled (81 Fed. Reg. 84612 (November 23, 2016))). Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program
      - (iii) In each lease sale under this subparagraph, the Secretary shall offer the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale entitled (82 Fed. Reg. 23163; May 22, 2017), except that the net royalty rate payable to the Federal Government shall not exceed 16.75 percent. Outer Continental Shelf Cook Inlet, Alaska, Oil and Gas Lease Sale 244
      - (iv) The Secretary shall conduct the first lease sale under this subparagraph by not later than 12 months after the start of the 5-year period of the replaced program, with subsequent sales occurring not later than 11 months thereafter, ensuring all 5 sales are completed within the 5-year period.
  - (3) Streamlining provisions
    - (A) Environmental and regulatory exemptions
      - Holding lease sales under paragraph (2) shall not require additional analysis or compliance with the National Environmental Policy Act of 1969, the Endangered Species Act of 1973, the Coastal Zone Management Act of 1972, or any requirements for tribal consultation under Federal law. The environmental reviews specified in section 4(a)(2) of the , and the Biological Opinion specified in section 4(a)(1) of that Act, shall be deemed sufficient to meet all applicable Federal environmental and regulatory requirements for such lease sales, lease issuances, and associated activities requiring Federal authorization.
    - (B) Waiver authority
      - The Secretary may waive any requirement under this section that would delay holding a lease sale under paragraph (2).
    - (C) Bid acceptance and lease issuance
      - If the Secretary receives an acceptable bid for any tract offered in a lease sale held pursuant to the schedule described in paragraph (2) (as determined under the Bureau of Ocean Energy Management ), the Secretary shall issue a lease for such tract not later than 90 days after the date of the lease sale. Summary of Procedures for Determining Bid Adequacy at Offshore Oil and Gas Lease Sales Effective March 2016