The "Expression of Interest Sensibility Act" modifies the Mineral Leasing Act, replacing bonus bids with fees for expressions of interest in oil and gas leases, requiring the Secretary to assess fees on those who express interest, either the initial submitter if no bid is received, or the successful bidder if a bid is successful.
Harriet Hageman
Representative
WY
The Expression of Interest Sensibility Act amends the Mineral Leasing Act to replace bonus bids with fees for expressions of interest in oil and gas leases. The Secretary will assess a fee for the expression of interest against the person who submitted the first expression of interest if no bid is received, or against the successful bidder if land receives a successful bid at a lease sale. An expression of interest remains active for at least 5 years, unless the land is offered at a lease sale.
New 'Expression of Interest' Fees Replace Bonus Bids in Oil & Gas Leasing: 5-Year Active Period Set
The "Expression of Interest Sensibility Act" changes up how companies stake a claim for oil and gas drilling on public lands. Here’s the lowdown on what’s changing and what it might mean for you.
Ditching the Bids, Adding Fees
This bill scraps the old "bonus bid" system when someone wants to nominate federal land for oil and gas leasing. Instead, it puts in a flat fee for filing an "expression of interest." Think of it like this: instead of competing in an initial bidding war just to express interest, companies will now pay a set fee upfront. Whether or not the land eventually gets leased, that fee is in play. [SEC. 2]
Who Pays, and When?
- If nobody bids on the land: The company that first expressed interest pays the fee. [SEC. 2] For example, if a small drilling company in Oklahoma flags a plot of land but no one bids on it at auction, that company is on the hook for the fee.
- If there is a successful bid: The winning bidder pays the fee. [SEC. 2] So, if a major corporation wins the lease, they’re the ones paying the expression of interest fee.
Five Years in Play
Here's a big change: expressions of interest now stay active for at least five years, unless the land goes up for lease sale sooner. [SEC. 2] This could mean land gets tied up longer, even if there's no immediate drilling activity. For instance, a plot of land in Wyoming could be under an expression of interest for half a decade, potentially preventing other uses or even delaying actual development.
The Bottom Line
This bill aims to simplify the process and potentially bring in more consistent money for the government. Instead of relying on unpredictable bonus bids, there's now a guaranteed fee. The 5 year time frame is important. It means that even if land isn't actively being explored, the expression of interest is still valid for a significant amount of time. This could be a good thing or a bad thing, depending on how quickly the land is actually developed.