Title II — Onshore

“44. Cooperative federalism in oil and gas permitting on available Federal land

“(a) Authorizations

“(1) In general—Upon receipt of an application under subsection (b), the Secretary may delegate to a State exclusive authority—

“(A) to issue an APD on available Federal land; or

“(B) to approve drilling plans on available Federal land.

“(2) Sundry notices—Any authorization under paragraph (1) may, upon the request of the State, include authority to issue sundry notices.

“(3) Inspection and enforcement—Any authorization under paragraph (1) may, upon the request of the State, include authorization to inspect and enforce an APD or drilling plan, as applicable. An authorization under paragraph (1)(A) shall not affect the ability of the Secretary to collect inspection fees under section 108(d) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1718(d)).

“(b) State application process

“(1) Submission of application—A State may submit an application under subparagraph (A) or (B) of subsection (a)(1) to the Secretary at such time and in such manner as the Secretary may require.

“(2) Content of application—An application submitted under this subsection shall include—

“(A) a description of the State program that the State proposes to administer under State law; and

“(B) a statement from the Governor or attorney general of such State that the laws of such State provide adequate authority to carry out the State program.

“(3) Deadline for approval or disapproval—Not later than 180 days after the date of receipt of an application under this subsection, the Secretary shall approve or disapprove such application.

“(4) Criteria for approval—The Secretary may approve an application received under this subsection only if the Secretary has—

“(A) determined that the State applicant would be at least as effective as the Secretary in issuing APDs or in approving drilling plans, as applicable;

“(B) determined that the State program of the State applicant—

“(i) complies with this Act; and

“(ii) provides for the termination or modification of an issued APD or approved drilling plan, as applicable, for cause, including for—

“(I) the violation of any condition of the issued APD or approved drilling plan;

“(II) obtaining the issued APD or approved drilling plan by misrepresentation; or

“(III) failure to fully disclose in the application all relevant facts;

“(C) determined that the State applicant has sufficient administrative and technical personnel and sufficient funding to carry out the State program;

“(D) provided notice to the public, solicited public comment, and held a public hearing within the State;

“(E) determined that approval of the application would not result in decreased royalty payments owed to the United States under section 35(a), except as provided in subsection (e) of that section; and

“(F) in the case of a State applicant seeking authority under subsection (a)(3) to inspect and enforce APDs or drilling plans, as applicable, entered into a memorandum of understanding with a State applicant that delineates the Federal and State responsibilities with respect to such inspection and enforcement.

“(5) Disapproval—If the Secretary disapproves an application submitted under this subsection, then the Secretary shall—

“(A) notify, in writing, the State applicant of the reason for the disapproval and any revisions or modifications necessary to obtain approval; and

“(B) provide any additional information, data, or analysis upon which the disapproval is based.

“(6) Resubmittal of application—A State may resubmit an application under this subsection at any time.

“(7) State Memorandum of Understanding—Before a State submits an application under this subsection, the Secretary may, at the request of a State, enter into a memorandum of understanding with the State regarding the proposed State program—

“(A) to delineate the Federal and State responsibilities for oil and gas regulations;

“(B) to provide technical assistance; and

“(C) to share best management practices.

“(c) Administrative fees for APDs

“(1) In general—A State for which authority has been delegated under subsection (a)(1)(A) may collect a fee for each application for an APD that is submitted to the State.

“(2) No collection of fee by Secretary—The Secretary may not collect a fee from the applicant or from the State for an application for an APD that is submitted to a State for which authority has been delegated under subsection (a)(1)(A).

“(3) Fee amount—The fee collected under paragraph (1) shall be less than or equal to the amount of the fee collected by the Secretary under section 35(d)(2)from States for which authority has not been delegated under subsection (a)(1)(A).

“(4) Use—A State shall use 100 percent of the fees collected under this subsection for the administration of the approved State program of the State.

“(d) Voluntary termination of authority—A State may voluntarily terminate any authority delegated to such State under subsection (a) upon providing written notice to the Secretary 60 days in advance. Upon expiration of such 60-day period, the Secretary shall resume any activities for which authority was delegated to the State under subsection (a).

“(e) Appeal of denial of application for APD or application for approval of drilling plan

“(1) In general—If a State for which the Secretary has delegated authority under subsection (a)(1) denies an application for an APD or an application for approval of a drilling plan, the applicant may appeal such decision to the Department of the Interior Office of Hearings and Appeals.

“(2) Fee allowed—The Secretary may charge the applicant a fee for the appeal referred to in paragraph (1).

“(f) Federal administration of State program

“(1) Notification—If the Secretary has reason to believe that a State is not administering or enforcing an approved State program, the Secretary shall notify the relevant State regulatory authority of any possible deficiencies.

“(2) State response—Not later than 30 days after the date on which a State receives notification of a possible deficiency under paragraph (1), the State shall—

“(A) take appropriate action to correct the possible deficiency; and

“(B) notify the Secretary of the action in writing.

“(3) Determination

“(A) In general—On expiration of the 30-day period referred to in paragraph (2), if the Secretary determines that a violation of all or any part of an approved State program has resulted from a failure of the State to administer or enforce the approved State program of the State or that the State has not demonstrated its capability and intent to administer or enforce such a program, the Secretary shall issue public notice of such a determination.

“(B) Appeal—A State may appeal the determination of the Secretary under subparagraph (A) in the applicable United States District Court. The Secretary may not resume activities under paragraph (4) pending the resolution of the appeal.

“(4) Resumption by Secretary—If the Secretary has made a determination under paragraph (3), the Secretary shall resume any activities for which authority was delegated to the State during the period—

“(A) beginning on the date on which the Secretary issues the public notice under paragraph (3); and

“(B) ending on the date on which the Secretary determines that the State will administer or enforce, as applicable, the approved State program of the State.

“(5) Standing—States with approved regulatory programs shall have standing to sue the Secretary for any action taken under this subsection.

“(g) Definitions—In this section:

“(1) Available Federal land—The term available Federal land means any Federal land that—

“(A) is located within the boundaries of a State;

“(B) is not held by the United States in trust for the benefit of a federally recognized Indian Tribe or a member of such an Indian Tribe;

“(C) is not a unit of the National Park System;

“(D) is not a unit of the National Wildlife Refuge System, except for the portion of such unit for which oil and gas drilling is allowed under law;

“(E) is not a congressionally approved wilderness area under the Wilderness Act (16 U.S.C. 1131 et seq.); and

“(F) has been identified as land available for lease or has been leased for the exploration, development, and production of oil and gas—

“(i) by the Bureau of Land Management under—

“(I) a resource management plan under the process provided for in the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.); or

“(II) an integrated activity plan with respect to the National Petroleum Reserve in Alaska; or

“(ii) by the Forest Service under a National Forest management plan under the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.).

“(2) Drilling plan—The term drilling plan means a plan described under section 3162.3–1(e) of title 43, Code of Federal Regulations (or successor regulation).

“(3) APD—The term APD means a permit—

“(A) that grants authority to drill for oil and gas; and

“(B) for which an application has been received that contains—

“(i) a drilling plan;

“(ii) a surface use plan of operations described under section 3162.3–1(f) of title 43, Code of Federal Regulations (or successor regulation);

“(iii) evidence of bond coverage; and

“(iv) such other information as may be required by applicable orders and notices.

“(4) Secretary—The term Secretary means the Secretary of the Interior.

“(5) State—The term State means each of the several States.

“(6) State applicant—The term State applicant means a State that has submitted an application under subsection (b).

“(7) State program—The term State program means a program that provides for a State to—

“(A) issue APDs or approve drilling plans, as applicable, on available Federal land; and

“(B) impose sanctions for violations of State laws, regulations, or any condition of an issued APD or approved drilling plan, as applicable.

“(8) Sundry notice—The term sundry notice means a written request—

“(A) to perform work not covered under an APD or drilling plan; or

“(B) for a change to operations covered under a an APD or drilling plan.”

“(e) Conveyance to certain States of property interest in State share

“(1) In general—Notwithstanding any other provision of law, on request of a State and in lieu of any payments to the State under subsection (a), the Secretary of the Interior shall convey to the State all right, title, and interest in and to the percentage specified in that subsection for that State that would otherwise be required to be paid into the Treasury under that subsection.

“(2) Amount—Notwithstanding any other provision of law, after a conveyance to a State under paragraph (1), any person shall pay directly to the State any amount owed by the person for which the right, title, and interest has been conveyed to the State under this subsection.

“(3) Notice—The Secretary of the Interior shall promptly provide to each holder of a lease of public land to which subsection (a) applies that is located in a State to which right, title, and interest is conveyed under this subsection notice that—

“(A) the Secretary of the Interior has conveyed to the State all right, title, and interest in and to the amounts referred to in paragraph (1); and

“(B) the leaseholder is required to pay the amounts directly to the State.

“(4) Report—A State that has received a conveyance under this subsection shall report monthly to the Office of Natural Resources Revenue of the Department of the Interior the amount paid to such State pursuant to this subsection.

“(5) Application with respect to FOGRMA—With respect to the interest conveyed to a State under this subsection from sales, bonuses, royalties (including interest charges), and rentals collected under the Federal Oil and Gas Royalty Management Act of 1983 (30 U.S.C. 1701 et seq.), this subsection shall only apply with respect to States for which the Secretary has delegated any authority under section 44(a)(1).”