S. 5688

Acquired Lands Revenue Modernization Act

Sponsor: Bernie Moreno · 0 cosponsors

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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

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