H.R. 2316, Cooperative Management of Mineral Rights Act of 2017

Floor Situation

On Monday, October 2, 2017, the House will consider H.R. 2316, the Cooperative Management of Mineral Rights Act of 2017, under suspension of the rules. The bill was introduced on May 3, 2017, by Rep. Glenn Thompson (R-PA) and was referred to the Committee on Natural Resources, which ordered the bill reported, on July 27, 2017 by unanimous consent.

Summary

H.R. 2316 repeals requirements of the Mineral Leasing Act and the Energy Policy Act of 1992 regarding the development of privately-owned oil and gas resources within the Allegheny National Forest in Pennsylvania.

Background

The Allegheny National Forest (ANF) encompasses 517,000 acres located in Northwestern Pennsylvania.  In 1923 the federal government purchased land to establish the ANF, but most of the acquisition was of surface rights – leaving most of the subsurface mineral rights in private ownership.[1] About  93%, or 478,283 acres, of the ANF subsurface mineral estate is privately-owned, leaving just 35,000 acres owned by the federal government.[2]

Private mineral owners have a property right to develop their interests, including reasonable use of the surface in order to develop the subsurface minerals. However, property owners are still subject to regulations. Prior to 2008, private mineral owners worked cooperatively with the U.S. Forest Service to develop oil and natural gas, with mineral rights holders providing the Forest Service with a 60-day notification of their drilling plans and the Forest Service issuing a “Notice to Proceed” (NTP).[3] 

In 2007, the Forest Service concluded that the issuance of an NTP was considered a “major federal action” subject to the National Environmental Policy Act (NEPA).  Consequently, environmental groups filed a lawsuit against the Forest Service arguing no NTP’s should be issued without an appropriate NEPA analysis.  The Forest Service agreed to place a moratorium on NTPs until a forest-wide environmental analysis was conducted.  In 2009, the Forest Service issued a statement that all pending and future oil and gas proposals would require full NEPA analysis.  Industry interests filed a lawsuit against the Forest Service and environmental groups.[4]

In December 2009, the U.S. District Court for the Western District of Pennsylvania overturned the Forest Service ban on oil and gas development in the ANF.  Through 2013, federal courts repeatedly ruled the Forest Service lacked the regulatory approval authority over the exercise of private mineral estates. H.R. 3881 repeals the rulemaking authority in the existing statute, preventing any future possibility for the Forest Service to liberally interpret statutory authority to infringe upon private property rights. [5]

According to the bill’s sponsor, “This legislation reaffirms nearly a century of cooperation between the owners of private mineral rights in northwestern Pennsylvania and the federal government. Despite repeated attempts by extreme environmental groups to shut down energy production in the Allegheny National Forest, the legislation will provide certainty and protect the jobs and communities that rely on the Forest’s resources.”[6]

A similar version of this bill, H.R. 3881, passed the House during the 114th Congress by a vote of 395-3.

Cost

The Congressional Budget Office (CBO) estimates that enacting H.R. 2316 would affect direct spending by changing the timing of timber receipts, however any effects would be negligible and would not affect revenues.  CBO further estimates that enacting H.R. 2316 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.

Staff Contact

For questions or further information please contact Dominique Yantko with the House Republican Policy Committee by email or at 5-0190.