Offshore oil and gas lease sales

(a) Definitions In this section: (1) Offshore lease sale The term offshore lease sale means an oil and gas lease sale that— (A) is held by the Secretary in accordance with the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), notwithstanding the requirements of section 18 of that Act (43 U.S.C. 1344); (B) with respect to lease sales in the Gulf of America, offers the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale titled Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254 (85 Fed. Reg. 8010; February 12, 2020); (C) with respect to lease sales in the Cook Inlet Planning Area, offers the same lease form, lease terms, economic conditions, and stipulations as contained in the final notice of sale titled Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 244 (82 Fed. Reg. 23291 (May 22, 2017)); and (D) if an acceptable bid has been received for any tract offered in the lease sale (as determined under the Bureau of Ocean Energy Management Summary of Procedures for Determining Bid Adequacy at Offshore Oil and Gas Lease Sales Effective March 2016, with Central Gulf of Mexico Sale 241 and Eastern Gulf of Mexico Sale 226), results in the issuance of a lease for such tract not later than 90 days after the date of the sale to the highest bidder. (2) Secretary The term Secretary means the Secretary of the Interior. (b) Waiver The Secretary may waive any requirement of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) that would delay final approval of an offshore lease sale under subsection (c). (c) Requirement In addition to the lease sales planned pursuant to section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344), the Secretary shall conduct not fewer than 26 offshore lease sales during the 10-year period beginning on the date of enactment of this Act, including 20 lease sales in the Gulf of America and 6 lease sales in the Cook Inlet Planning Area. (d) Timing (1) Gulf of America In conducting the offshore lease sales in the Gulf of America required under subsection (c), the Secretary shall hold not fewer than 1 lease sale under this paragraph on or before each of the following dates: (A) August 31, 2025. (B) March 31, 2026. (C) August 31, 2026. (D) March 31, 2027. (E) August 31, 2027. (F) March 31, 2028. (G) August 31, 2028. (H) March 31, 2029. (I) August 31, 2029. (J) March 31, 2030. (K) August 31, 2030. (L) March 31, 2031. (M) August 31, 2031. (N) March 31, 2032. (O) August 31, 2032. (P) March 31, 2033. (Q) August 31, 2033. (R) March 31, 2034. (S) August 31, 2034. (T) March 31, 2035. (2) Cook inlet planning area In conducting the offshore lease sales in the Cook Inlet Planning Area required under subsection (c), the Secretary shall hold not fewer than 1 lease sale under this paragraph on or before each of the following dates: (A) August 31, 2025. (B) March 31, 2027. (C) August 31, 2028. (D) March 31, 2030. (E) August 31, 2032. (F) March 31, 2034. (e) Area offered for lease (1) Acreage (A) Gulf of America For each offshore lease sale conducted under subsection (c) in the Gulf of America, the Secretary shall offer for leasing not fewer than— (i) 80,000,000 acres; or (ii) if the total number of unleased acres is less than 80,000,000 acres, the total number of such acres. (B) Cook Inlet Planning Area For each offshore lease sale conducted under subsection (c) in the Cook Inlet Planning Area, the Secretary shall offer for leasing not fewer than— (i) 1,000,000 acres; or (ii) if the total number of unleased acres is less than 1,000,000 acres, the total number of such acres. (2) Location (A) Gulf of America An offshore lease sale conducted under subsection (c) in the Gulf of America shall offer the areas identified as the Proposed Final Program Area in Figure S–1 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (81 Fed. Reg. 84612 (November 23, 2016))). (B) Cook Inlet Planning Area An offshore lease sale conducted under subsection (c) in the Cook Inlet Planning Area shall only offer an area within the Planning Area Boundary depicted in Figure S–2 of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, by the Bureau of Ocean Energy Management (as announced in the notice of availability of the Bureau of Ocean Energy Management entitled Notice of Availability of the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program (81 Fed. Reg. 84612 (November 23, 2016))). (f) Commingling wells For the purposes of commingling wells in multiple reservoirs in a common wellbore on the Outer Continental Shelf, the Secretary of Interior shall approve operators commingling requests within 45 days of receipt of an application. (g) Restoring Reasonable Royalty Rates Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) is amended— (1) in subparagraph (A), by striking not less than 16 2⁄3 percent, but not more than 18 3⁄4 percent, during the 10-year period beginning on the date of enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14, and not less than 16 2⁄3 percent thereafter, and inserting not less than 12.5 percent, but not more than 18¾ percent,; (2) in subparagraph (C), by striking not less than 16 2⁄3 percent, but not more than 18 3⁄4 percent, during the 10-year period beginning on the date of enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14, and not less than 16 2⁄3 percent thereafter, and inserting not less than 12.5 percent, but not more than 18¾ percent,; (3) in subparagraph (F), by striking not less than 16 2⁄3 percent, but not more than 18 3⁄4 percent, during the 10-year period beginning on the date of enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14, and not less than 16 2⁄3 percent thereafter, and inserting not less than 12.5 percent, but not more than 18¾ percent,; and (4) in subparagraph (H), by striking not less than 16 2⁄3 percent, but not more than 18 3⁄4 percent, during the 10-year period beginning on the date of enactment of the Act titled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14, and not less than 16 2/3 percent thereafter, and inserting not less than 12.5 percent, but not more than 18¾ percent,. (h) First production incentive pilot program (1) In general For any lease issued pursuant to an offshore lease sale required by this section, the Secretary shall establish a pilot program under which the Secretary may reduce the royalty rate under section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(1)) to 10 percent for the first 7 years of production from the area of the lease if the leaseholder achieves first production from such area by not later than 3 years after the date on which the lease is issued. (2) Application A leaseholder seeking a royalty rate reduction under this subsection shall submit to the Secretary an application, which shall include evidence that the leaseholder met the first production milestone described in paragraph (1), by not later than 60 days after achieving the milestone. (3) Limitation The Secretary may not reduce the royalty rate under paragraph (1) for more than 25 leases. (4) Report Not later than December 31, 2030, the Secretary shall submit to Congress a report on the effectiveness of the pilot program at accelerating offshore oil and gas production. (5) First production defined In this subsection, the term first production means the date on which oil or gas is produced in paying quantities, as determined by the Secretary.