S. 5688

Acquired Lands Revenue Modernization Act

Sponsor: Bernie Moreno · 0 cosponsors

Follow this bill

In plain English: what this bill does

This bill would change how money from oil and gas leases on federal "acquired lands" is shared with states. Right now, a set share of that money goes to the states where the land is located, and the bill changes the rules so the state share is larger. It also changes the wording of two existing laws to say which payments the new sharing rule covers.

Who this affects

  • State governments: they would receive a larger share of oil and gas leasing revenue from acquired lands located within their borders.
  • The federal government: the share of oil and gas leasing revenue from acquired lands that the federal government keeps would be reduced.
  • Companies that lease federal acquired lands for oil and gas development: the bill changes how their lease payments are divided between the federal government and the states, but it does not state any new duty for them.

Words to know

  • Acquired lands: federal land the government bought or otherwise obtained from private owners, as opposed to land that was federal from the start.
  • Oil and gas leases: contracts that let a company drill for oil and gas on land in exchange for payments to the owner.
  • Mineral Leasing Act: a federal law that sets the rules for leasing and developing minerals, including oil and gas, on federal land.
  • Rentals: the yearly payments a lease holder makes to keep a lease in effect, before any oil or gas is produced.

For example

Made-up numbers: Suppose a company pays $1,000,000 in oil and gas lease revenue from acquired lands in a state. Under the current split, the state gets 25% of that money, or $250,000. If the bill raised the state share to 50%, the state would get 50% × $1,000,000 = $500,000 instead.

Written by AI from the bill's text below; it can be wrong. How it's written

Official summary

No official summary yet.

Text of the bill

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Sec. 2. Disposition of receipts from oil and gas leases of acquired lands

In plain English

This section changes how money from oil and gas leases on certain federal lands is split up. It removes a cross-reference that tied the Mineral Leasing Act for Acquired Lands to a rule in the Mineral Leasing Act, so that the sharing of receipts is now governed by section 35 of that Act. It also updates section 35 so that it now covers oil and gas leases under the Acquired Lands Act alongside the other listed energy leasing laws.

Written by AI from the text below; it can be wrong. How it's written

(a) Mineral Leasing Act for Acquired Lands. Section 6(a) of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 355(a)) is amended, in the first sentence—

(1) by striking Subject to the provisions of section 35(b) of the Mineral Leasing Act (30 U.S.C. 191(b)), all and inserting All; and

(2) by striking for other receipts and all that follows through such lands and inserting in section 35 of the Mineral Leasing Act (30 U.S.C. 191).

(b) Mineral Leasing Act. Section 35(a) of the Mineral Leasing Act (30 U.S.C. 191(a)) is amended, in the first sentence—

(1) by striking , and rentals and inserting (30 U.S.C. 1701 et seq.), rentals; and

(2) by inserting (30 U.S.C. 1001 et seq.), and oil and gas leases under the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.) after Geothermal Steam Act of 1970.