(a)
Submission of State regulatory program— Each State in which there may be the leasing, permitting, or regulating of oil and gas exploration, development, and production activities on available Federal lands, and which wishes to assume exclusive jurisdiction over the leasing, permitting, and regulation of such oil and gas activities, shall submit to the Secretaries of the Interior and Agriculture a State regulatory program which demonstrates that such State has the capability of carrying out the provisions of this Act and meeting its purposes through—
(1)
a State law which provides for the leasing, regulation and permitting of oil and gas exploration, development, and production activities;
(2)
a State law which provides sanctions for violations of State laws, regulations, or conditions of permits concerning oil and gas exploration, development, and production activities;
(3)
a State regulatory authority with sufficient administrative and technical personnel, and sufficient funding to enable the State to lease, regulate and permit oil and gas exploration, development, and production activities; and
(4)
a State law which provides for the effective implementation, maintenance, and enforcement of a permit system for oil and gas exploration, development, and production activities on available Federal lands within the State.
(b)
Approval of state regulatory program—
(1)
In general— The State regulatory program submitted under subsection (a) shall be deemed approved, unless, not later than 60 days after submission, the Secretaries of the Interior and Agriculture—
(A)
find approval of a State regulatory program would result in decreased royalty payments to the Federal Government; or
(B)
determine that the State Regulatory Program submitted under subsection (a) does not have the capability to carry out the provisions of this Act.
(2)
Adverse determination— For any adverse determination by the Secretaries, the Secretaries shall—
(A)
notify, in writing, the State applicant of the reason for the withholding of approval; and
(B)
provide any additional information, data, or analysis upon which such determination is based.
(c)
Effect of Approval of State regulatory program— Notwithstanding any other provision of law, on approval of a State regulatory program under subsection (b), the State shall assume the Federal leasing, permitting and regulatory responsibilities for oil and gas exploration, development, and production on available Federal land located in the State in accordance with the approved plan.
(d)
Effect of State action— Any action by a State to lease, permit, or regulate oil and gas exploration, development, and production in accordance with an approved State regulatory program shall not be subject to, or considered a Federal action, Federal permit, or Federal license under—
(1)
subchapter II of chapter 5, and chapter 7, of title 5, United States Code (commonly known as the ‘‘Administrative Procedure Act’’);
(2)
chapter 3001 of title 54, United States Code;
(e)
Reassumption of regulatory authority by the Secretary—
(1)
Voluntary surrender of authority— If a State regulatory program has been approved under subsection (b), such state may voluntarily revoke such approval, and relinquish the duties under subsection (c) upon providing a 60-day notice to the Secretaries of the Interior and Agriculture. Upon the expiration of the 60-day period, the state shall no longer be permitted to lease, regulate, or permit oil and gas exploration, development, and production activities on available Federal lands.
(2)
Involuntary surrender of authority— If the Secretaries of the Interior or Agriculture determine a State regulatory program has resulted in a 20-percent decrease in royalties to the Federal government from the preceding year, the Secretaries shall notify the state of such decrease. Such notified state shall have 180 days to address the royalty deficiency. If a state fails to improve the amount of royalties paid to the federal government, then the Secretaries of the Interior and Agriculture may jointly determine to revoke the approval of the state regulatory program under subsection (b).