Overview

Title

To amend the Mineral Leasing Act to improve the assessment of expression of interest fees, and for other purposes.

ELI5 AI

Here's a little story about H. R. 7375: The bill changes the rules for paying fees when someone wants to drill for oil or gas on certain land. If nobody buys the drilling rights after someone expresses interest, the interested person has to pay a fee, but if someone else does buy the rights, then the buyer pays the fee. Plus, their interest in the land is good for at least five years unless the land is sold for drilling.

Summary AI

H. R. 7375 seeks to amend the Mineral Leasing Act to improve how fees for expressing interest in leasing land for oil or gas exploration are assessed. The bill introduces measures that ensure if land receives no bids at a lease sale, the person who first showed interest must pay a fee, whereas if there is a successful bid, the winning bidder pays the fee. Additionally, expressions of interest will remain valid for at least five years unless the land is put up for a lease sale.

Published

2024-02-15
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-02-15
Package ID: BILLS-118hr7375ih

Bill Statistics

Size

Sections:
1
Words:
515
Pages:
3
Sentences:
13

Language

Nouns: 138
Verbs: 41
Adjectives: 13
Adverbs: 1
Numbers: 26
Entities: 27

Complexity

Average Token Length:
3.92
Average Sentence Length:
39.62
Token Entropy:
4.51
Readability (ARI):
20.16

AnalysisAI

Summary of the Bill

The proposed legislation, H.R. 7375, seeks to amend the Mineral Leasing Act, specifically targeting how fees related to expressions of interest in leasing land for oil and gas exploration are assessed. This bill proposes several changes to the current method of managing expressions of interest and establishes new fee structures for different scenarios surrounding land leasing. Under the amendment, when a person expresses interest in leasing a piece of land for oil or gas development, specific fees will be triggered depending on the success or lack thereof of subsequent bids on that land.

Significant Issues

One of the central issues in the bill is the introduction of a "fee for expression of interest," which lacks clarity on calculation methods. This uncertainty could lead to varied interpretations and application, potentially resulting in inconsistent financial impacts on stakeholders. Another concern lies in the ambiguity regarding how the Secretary will assess fees in cases where no bid is placed or when a bid is successful. Such vagueness can result in disputes or legal challenges.

Additionally, the term "successful bidder" is not explicitly defined within the context of fee responsibilities, which might lead to confusion or disagreements over financial obligations in cases of successful bids. Further, the stipulation that an expression of interest remains active for no less than five years could lead to unproductive land holdings, as there is no clear timeframe for development, which might delay the land’s intended use and benefit.

Impact on the Public

For the general public, the amendments could result in either positive or negative impacts depending on how fees are ultimately structured and assessed. If the fees are too high or seen as unfairly assessed, this could deter participation and investment in oil and gas exploration, potentially affecting energy markets and economic growth. Conversely, if the new system operates transparently and efficiently, it could streamline land leasing processes and maximize resource development benefits.

Impact on Specific Stakeholders

For the oil and gas industries, the proposed changes could have significant financial implications. The lack of a clear fee calculation methodology might introduce unexpected costs, while the ambiguity around fee responsibilities could complicate financial planning and bidding strategies. This may discourage smaller companies that cannot absorb such uncertainties easily.

Local communities near potential oil and gas development sites might experience delays in land use, especially if expressions of interest are held for long periods without development. This can affect local economies dependent on resource development for jobs and revenue. On the other hand, clarified and equitable processes could provide opportunities for growth and stability if the resources are developed responsibly.

The restructuring of the Mineral Leasing Act, as proposed, underscores the necessity for clear legislation that addresses both the needs of resource development and fair access for stakeholders. Balancing these priorities will be crucial to ensure the bill achieves its intended purpose without unintended negative consequences.

Issues

  • The amendment to Section 17(b)(1)(A) introduces a 'fee for expression of interest' without clearly specifying how this fee is to be calculated, which could lead to inconsistent or unfair assessments that impact stakeholders financially. This affects both (a) the 'Deadline To issue lease' and (b) 'Expressions of interest' sections.

  • Section 17(q)(2)(A) and (B) introduces ambiguity about how the Secretary will assess fees, both when no bid is received and when a successful bid is placed. This lack of clarity might lead to disputes or legal challenges regarding the fee payment responsibilities.

  • The definition of 'successful bidder' is not explicit in Section 17(q)(2)(B), potentially causing different interpretations and disputes over who bears financial obligations in case of a successful bid.

  • The term 'not less than 5 years' in Section 17(q)(4) for an expression of interest to remain active, unless the land is offered at a lease sale, might result in strategic land holding without development, potentially delaying productive use and affecting local economies and land management strategies.

  • The restructuring of paragraphs in Section 17(q), such as redesignating paragraph (2) to paragraph (3), may introduce confusion without a complete understanding of the context, potentially leading to administrative complications or misinterpretation of the clauses.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Fee for expression of interest Read Opens in new tab

Summary AI

The section amends the Mineral Leasing Act to allow individuals to express interest in leasing land for oil or gas exploration, and it establishes a new fee provision. If no bids are made on the land, the first person to express interest pays a fee, and if a successful bid is made, the bidder pays the fee.