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Amends 30 U.S.C. 226(b)(1)(A) by inserting additional text (text to be inserted not provided in the section excerpt).
Adds a new subsection (j) to 43 U.S.C. 1344 requiring the Secretary to provide a report to a bidder explaining the basis for a determination that a bid did not represent fair market value and defining 'covered lease tract' for purposes of that requirement.
Requires the Interior Department to give written explanations when an offshore lease bid is found not to reflect fair market value, including how the bid compares to specified valuation measures when a formal economic review was done. Clarifies onshore lease-timing rules after court orders (text for that change is not visible in the uploaded preview) and limits courts’ power to cancel or pause offshore lease sales and related plan-and-permit reviews; instead courts must remand defects to the Secretary while lease processing and plan/permit reviews continue.
Adds a new subsection (j) to Section 18 of the Outer Continental Shelf Lands Act to require reports and to define a covered lease tract.
If the Secretary determines under subsection (a)(4) that the Federal Government will not receive the fair market value from a bid for a covered lease tract, the Secretary must provide the bidder a report explaining the basis for that determination.
If the bid was a qualified bid that was subject to a resource and economic evaluation, the report must include information showing how that qualified bid relates to the Mean Range of Values, Delay-adjusted Mean Range of Values, Adjusted Delayed Value, and Revised Arithmetic Average Measure for the covered lease tract.
Defines “covered lease tract” as a lease tract for which the Secretary (A) held a lease sale; (B) received at least one bid; and (C) did not issue a lease to the highest responsible qualified bidder.
Amend Section 17(b)(1)(A) of the Mineral Leasing Act (30 U.S.C. 226(b)(1)(A)) by inserting additional language concerning the effect of court orders on the deadline to issue onshore oil and gas leases. The exact inserted language is not shown in the provided file preview.
Who is affected and how:
Offshore oil and gas companies and leaseholders: Most directly affected. Companies bidding in OCS lease sales will receive clearer written explanations when a bid is deemed below fair market value. The change reduces the risk that litigation will void leases or pause downstream plan and permit reviews, which can reduce legal delay risk for developers and their financiers.
Department of the Interior and BOEM/agency staff: The Interior must prepare written valuation reports for rejected bids and continue processing plans/permits even while courts remand defects. Agency workload will shift toward producing more detailed valuation notices and managing remand-based corrective processes rather than pausing operations after litigation.
Federal courts and litigants (environmental groups, states, private parties): Courts lose the authority to set aside lease sales or to enjoin continued permit and plan review tied to challenged leases; instead courts must remand issues back to the Secretary for correction. Plaintiffs seeking to suspend leasing activity will have narrower equitable remedies.
Lease bidders and high bidders: Bidders who are found to have submitted non‑reflective bids will get a written rationale, enabling potential protests, adjustments in future bidding strategy, or administrative appeals, but the ability of courts to unwind sales is curtailed.
Coastal communities, states, and tribes: May experience faster continuation of permit and plan reviews (and thus project development) even when procedural legal challenges arise, limiting pauses that could otherwise delay impacts or mitigation measures. That makes development timelines more predictable but may reduce the practical effect of litigation intended to pause activity while claims are resolved.
Net effect: The bill increases administrative transparency for bidders and limits judicial remedies that halt leasing and downstream permitting. That tends to favor more rapid continuation of federal leasing and development processes, while reducing the leverage of litigation to pause or unwind lease sales. It does not, in the supplied text, change funding, royalty rates, environmental standards, or the content of economic valuation methods themselves—only reporting and judicial‑remedy procedures. Implementation details for the onshore timing amendment could alter effects but the exact language was not visible in the uploaded material.
Referred to the Committee on Natural Resources, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced February 11, 2025 by Clay Higgins · Last progress February 11, 2025
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Referred to the Committee on Natural Resources, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House