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S. Rept. 118-53 1 (2023-07-11)

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U.GOVERNMENT
INFORMATION .











                                                         Calendar No. 125
                   118TH CONGRESS                                      REPORT
                      1st Session              SENATE                  118-53





                               OIL AND   GAS  PERMITTING PROCESS


                                    JULY 11, 2023.-Ordered to be printed


                       Mr. MANCHIN,  from the Committee on Energy and  Natural
                                  Resources, submitted the following


                                          R  E  P  O  R  T

                                          [To accompany S. 535]
                     The Committee  on Energy  and Natural Resources, to which was
                   referred the bill (S. 535), to streamline the oil and gas permitting
                   process and to recognize fee ownership for certain oil and gas drill-
                   ing or spacing units, and for other purposes, having considered the
                   same,  reports favorably thereon without  amendment and rec-
                   ommends  that the bill do pass.
                                              PURPOSE
                     The purpose of S. 535 is to remove the requirement for a permit
                   from the Secretary of the Interior for certain oil and gas drilling
                   or spacing units where the Federal Government  holds a minority
                   interest in the minerals within the unit and there is no surface in-
                   terest held by the Federal Government in the area impacted by the
                   action.
                                       BACKGROUND   AND  NEED
                     In the western United States, there are occasionally split-estate
                   situations, where the ownership of the surface rights and mineral
                   rights are held by different parties. Generally, in split-estate situa-
                   tions, the surface is owned by a non-federal entity, while the sub-
                   surface mineral estate is held by the federal government. Split-es-
                   tates can present management  challenges for oil and gas develop-
                   ment  as modern directional drilling techniques have enabled well
                   drilling from a single well pad on the surface to reach multiple
                   pools of oil and gas miles apart, potentially with different owners
                   of the mineral estate and the surface estate.
                      39-010

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