H.R. 1205 – Bureau of Land Management Mineral Spacing Act

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Updated January 20, 2026 at 4:02 AM UTC

The bill amends the Mineral Leasing Act to speed up oil and gas permitting on lands where the surface is privately owned but the federal government holds a minority (under 50%) interest in the subsurface minerals. It lets operators proceed without a federal drilling permit if they provide a state permit, and it treats such activities as not a major federal action under NEPA, exempting them from certain historic preservation and endangered species reviews. The bill keeps existing royalty obligations and audit powers and does not apply to Indian lands.

Key Provisions

Operators need not obtain a federal drilling permit for oil and gas work on non‑federal surface estates when the U.S. owns less than 50% of the subsurface minerals, provided they submit a state permit to the Secretary.
These activities are not considered a major federal action under NEPA and are exempt from the National Historic Preservation Act and the Endangered Species Act.
Work can begin 30 days after the state permit is submitted to the Secretary.
Royalties owed to the United States and the Secretary’s authority to audit and enforce penalties remain unchanged.
The provisions do not apply to Indian lands.

Legislative Activity

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2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on Energy and Mineral Resources.

Energy and Mineral Resources Subcommittee

March 22, 2023

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HouseIntro Referral

Introduced in House

February 27, 2023

HouseIntro Referral

Referred to the House Committee on Natural Resources.

Natural Resources Committee

February 27, 2023

HouseCommittee

Referred to the Subcommittee on Energy and Mineral Resources.

Energy and Mineral Resources Subcommittee

March 22, 2023

Bill Text

Latest available legislative text

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Introduced in HouseIssued February 27, 2023

I

118th CONGRESS

1st Session

H. R. 1205

IN THE HOUSE OF REPRESENTATIVES

February 27, 2023

Mrs. Bice introduced the following bill; which was referred to the Committee on Natural Resources

A BILL

To amend the Mineral Leasing Act to streamline the oil and gas permitting process and to recognize fee ownership for certain oil and gas drilling or spacing units, and for other purposes.

1.

Short title

This Act may be cited as the Bureau of Land Management Mineral Spacing Act.

2.

Access to Federal energy resources from non-Federal surface estate

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by adding at the end the following:

(r)

No federal permit required for oil and gas activities on certain land

(1)

In general

The Secretary shall not require an operator to obtain a Federal drilling permit for oil and gas exploration and production activities conducted on non-Federal surface estate, provided that—

(A)

the United States holds an ownership interest of less than 50 percent of the subsurface mineral estate to be accessed by the proposed action; and

(B)

the operator submits to the Secretary a State permit to conduct oil and gas exploration and production activities on the non-Federal surface estate.

(2)

No federal action

An oil and gas exploration and production activity carried out under paragraph (1)—

(A)

shall not be considered a major Federal action for the purposes of section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332);

(B)

shall require no additional Federal action;

(C)

may commence 30 days after submission of the State permit to the Secretary; and

(D)

shall not be subject to—

(i)

section 306108 of title 54, United States Code (commonly known as the National Historic Preservation Act of 1966); and

(ii)

section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536).

(3)

Royalties and production accountability

(A)

Nothing in this subsection shall affect the amount of royalties due to the United States under this Act from the production of oil and gas, or alter the Secretary’s authority to conduct audits and collect civil penalties pursuant to the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.).

(B)

The Secretary may conduct onsite reviews and inspections to ensure proper accountability, measurement, and reporting of production of Federal oil and gas, and payment of royalties.

(4)

Nonapplicability to Indian lands

This subsection shall not apply to Indian lands.

(5)

Indian land

In this subsection, the term Indian land means—

(A)

any land located within the boundaries of an Indian reservation, pueblo, or rancheria; and

(B)

any land not located within the boundaries of an Indian reservation, pueblo, or rancheria, the title to which is held—

(i)

in trust by the United States for the benefit of an Indian tribe or an individual Indian;

(ii)

by an Indian tribe or an individual Indian, subject to restriction against alienation under laws of the United States; or

(iii)

by a dependent Indian community.

.