This bill eliminates an administrative fee under the Mineral Leasing Act, amends related sections of other acts to remove references to the fee, and corrects a typo.
Steve Daines
Senator
MT
The "Restoring State Mineral Revenues Act" eliminates an administrative fee charged under the Mineral Leasing Act, which will likely increase the amount of revenue states receive from mineral leasing on federal lands. It also makes necessary technical and conforming changes to other related laws, such as the Geothermal Steam Act of 1970 and the Federal Oil and Gas Royalty Management Act of 1982, to reflect the elimination of this fee.
States Set to Pocket More Cash: New Bill Nixes Federal Fee on Mineral Leasing
The "Restoring State Mineral Revenues Act" is pretty straightforward: it's all about cutting out an administrative fee that's been skimming off the top of mineral leasing revenues on federal lands. Basically, states are about to get a bigger slice of the pie from resources like oil, gas, and coal extracted within their borders.
Cash Flow Boost for States
This bill wipes out subsection (b) of Section 35 in the Mineral Leasing Act—that's the part that authorized the feds to take a cut for "administrative fees." Think of it like getting rid of a hidden charge on your bank statement; it adds up. By removing this fee, states will directly receive more of the revenue generated from mineral leasing on federal lands. For a state with significant mining or drilling, this could mean millions more each year for their budgets, potentially funding schools, roads, or lowering taxes. For an average person working on a drilling rig, this could mean more job security as states potentially invest more in resource development.
Cleaning Up the Books
Besides ditching the fee, the bill also cleans up the legal language in a few places. References to the old fee in the Mineral Leasing Act for Acquired Lands (Section 6(a)) and the Geothermal Steam Act of 1970 (Section 20(a)) are gone. It's like updating your phone's contacts list – getting rid of old numbers that don't ring anymore. This makes the laws easier to navigate and understand for everyone involved, from energy companies to government regulators.
Fixing Typos and Streamlining Rules
They even fixed a typo in the Federal Oil and Gas Royalty Management Act of 1982 (Section 205(f)) and removed some outdated sentences. It's a small detail, but it shows attention to the nitty-gritty, making sure everything's consistent and clear. This kind of detail is important if, for example, you're a small business owner dealing with royalty payments. Clear regulations mean less hassle and more predictability.
The Bottom Line
This bill is essentially a financial boost for states that rely on mineral revenues. By eliminating a federal fee, more money stays local. While it's not the most dramatic piece of legislation, it's a practical move that could make a real difference in state budgets and, potentially, in the lives of people who live and work in those states. It simplifies the rules, which is always a good thing for businesses and government agencies alike.