SB 722, the Bureau of Land Management Mineral Spacing Act, would limit when the Secretary of the Interior must require a federal permit to drill for oil and gas operations in certain drilling or spacing units. In general, the bill says that if the federal government owns less than 50 percent of the minerals in the unit and does not own or lease the relevant surface estate, the Interior Department would not require a federal drilling permit for certain actions involving federal mineral interests. It also applies where a well is drilled on non-federal land over non-federal minerals but intersects or traverses federal minerals subject to a lease.
The bill also creates new notification duties for lessees of federal minerals, requiring them or their designees to notify Interior when a state drilling application is submitted and approved, and to provide access agreements before drilling begins so federal inspectors can enter non-federal land as needed to enforce federal lease terms. The measure expressly excludes Indian lands and states that it does not change federal royalty obligations or other existing authorities under federal royalty-management law.
Impact
SB 722 would amend the Mineral Leasing Act and related federal oil-and-gas permitting rules to reduce federal permitting and oversight requirements in mixed-ownership drilling units under the conditions specified in the bill. It would also limit Interior’s authority on certain non-federal lands by prohibiting requirements for bonds to protect non-federal land, entry without landowner consent, mitigation requirements, and approval for surface reclamation in the covered situations. The bill would therefore shift some permitting and operational control toward state processes and private landowners in qualifying units, while preserving federal royalty collection and excluding Indian lands from its scope.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes, the available sentiment appears generally supportive of streamlining oil and gas development and reducing duplicative federal permitting in mixed-ownership areas. The sponsors’ framing suggests a pro-development, pro-state-authority approach intended to simplify drilling approvals and clarify rights in spacing units. No formal vote history or transcript record is available here to show organized opposition or support beyond the introduction by multiple senators.
Contention
The main points of contention are likely to be federal versus state regulatory authority, the scope of Interior’s oversight on non-federal land, and the treatment of mixed mineral estates where federal minerals are present but the surface and most minerals are privately owned. Environmental and landowner concerns may focus on the bill’s limits on federal bonding, mitigation, and reclamation requirements, as well as reduced federal permitting review. Supporters are likely to argue that the bill prevents duplicative regulation, respects private property rights, and speeds up oil and gas development while leaving royalties intact.
To exempt Federal actions related to energy and mineral activities on certain Federal lands from the requirements of the National Environmental Policy Act of 1969.
Permitting for Mining Needs Act of 2023 This bill expedites the review of mining projects on federal lands and limits judicial review of mining projects. For example, the bill expands the federal permitting and review processes under the Infrastructure Investment and Jobs Act for critical minerals. Under the act, the Bureau of Land Management (BLM) and the U.S. Forest Service, to the maximum extent practicable, must complete the federal permitting and review processes related to critical mineral mines on federal lands with maximum efficiency and effectiveness. This bill expands this process to include all minerals as defined by the bill, not only critical minerals. The bill also establishes deadlines for completing the review of mining projects under the National Environmental Policy Act of 1969. In addition, the bill also expands the meaning of covered projects under the Fixing America's Surface Transportation (FAST) Act to include (1) certain mineral production projects, and (2) certain actions taken by the Department of Defense. Such projects qualify for expedited environmental review. It also establishes requirements to expedite the review or authorization of certain mineral projects, such as (1) mineral exploration activities with a surface disturbance of no more than five acres of public lands, (2) ancillary mining activities, and (3) uranium projects. Finally, the bill limits judicial review of a permit, license, or approval issued by a lead agency for a mining project by requiring the filing of claims within a certain time period.