H.R. 3231: American Energy Act

This bill, titled the American Energy Act, proposes several amendments to the Mineral Leasing Act aimed at streamlining the process for oil and gas drilling permits and addressing how legal actions affect this process.

Processing Applications for Permits to Drill

The bill includes provisions regarding the processing of applications for permits to drill:

• Pending Civil Actions: The bill states that the Secretary of the Interior must continue to process applications for permits to drill, even if there are ongoing legal challenges related to the application or the lease, unless a federal court has specifically canceled the lease in question. This means that ongoing lawsuits will not pause the processing of drilling applications.
• Term of Permits: The bill establishes that a permit to drill will be valid for a term of four years from its approval date or until the related lease expires, whichever comes first. This sets a clear time limit on how long the permit is active.

Lease Sale Litigation

The legislation also addresses how courts can handle litigation surrounding lease sales:

• Limitation on Court Actions: The bill stipulates that courts cannot annul lease sales or restrict activities on leases unless they determine that proceeding with the activities would likely cause significant and immediate environmental harm and that no other legal remedies are available. This raises the bar for legal challenges to halt lease sales or prevent development.
• Restrictions on Court Orders: It is stated that courts cannot block or prevent lease awards to bidders once the Department of the Interior has started the bidding process or has announced the highest bidder in any lease sale. This aims to ensure that bids and leasing cannot be impeded by subsequent legal actions.

Conclusion

The American Energy Act intends to expedite the permitting process for drilling, lessen the effects of litigation on drilling applications, and reinforce the ability to proceed with lease sales amidst legal challenges.

Relevant Companies

• XOM (Exxon Mobil Corporation) - Large oil and gas corporation which may benefit from expedited drilling permits.
• COP (ConocoPhillips) - Engaged in exploring, producing, and refining oil and gas; potential impacts from clearer permit processing rules.
• CVX (Chevron Corporation) - Another major player in the energy sector likely to be influenced by changes in drilling permit regulations.