	Introduction

A variety of interrelated statutes and agency regulations govern leasing and permitting for energy exploration and production on federal lands. Oil, natural gas, and coal exploration and production on federal lands are generally governed by the Mineral Lands Leasing Act of 1920 (MLA) as amended. The Bureau of Land Management (BLM), an agency that is part of the U.S. Department of the Interior (DOI), administers the MLA. Generally, the lessee is authorized to explore for and ultimately produce oil, natural gas, or coal on federal lands in exchange for lease payments and royalties paid to the U.S. government on the production. The first half of this report details the legal framework for this leasing process. Federal Lands Subject to Coal, Oil, Natural Gas Leasing

The MLA authorizes the Secretary of the Interior to lease virtually all onshore lands owned by the United States that contain fossil fuel deposits, with the federal government retaining title to the lands. Areas within the National Wilderness Preservation System also cannot be leased, but valid property rights that were already in existence by 1984 are preserved. "Multiple use" principles require
management of the public lands and their various resource values so that they are utilized in the combination that will best meet the present and future needs of the American people; making the most judicious use of the land for some or all of these resources or related services over areas large enough to provide sufficient latitude for periodic adjustments in use to conform to changing needs and conditions; the use of some land for less than all of the resources; a combination of balanced and diverse resource uses that takes into account the long-term needs of future generations for renewable and non-renewable resources. Renewable Energy Projects on Federal Lands

		Background

In recent years, concern over the impact of emissions from fossil fuel-fired power plants has resulted in increased interest in renewable energy sources. The governing law for steam leasing is the Geothermal Steam Act of 1970. The laws and regulations governing geothermal steam leasing and administration are similar to the principles and processes for oil and natural gas leasing on federal lands described in detail earlier in this report. BLM will accept the highest bid from a qualified bidder. Lessees are required to make annual rental payments to BLM. Authorizations for Wind and Solar Energy Projects

While oil, gas, and geothermal projects are permitted by BLM under leasing processes, those interested in producing wind or solar energy on federal lands do not seek leases. Instead, they seek more limited authorizations for development of their energy projects pursuant to Title V of the Federal Land Policy and Management Act (FLPMA). BLM retains the right to
1. access the lands covered by the right-of-way, including any facilities constructed on the right-of-way; 2. require common use of the land (including subsurface and air space) and to authorize others to use the right-of-way for compatible uses; 3. retain ownership of the resources of the land; 4. determine whether or not the grant is renewable; and 5. change the terms and conditions of the right-of-way as a result of changes in legislation or regulation or as otherwise necessary to protect public health or safety or the environment.
Recent concerns over energy supply and pricing have led some to look increasingly to federal lands as a potential energy source. This report explains the legal framework for energy leasing and permitting for onshore lands subject to the control of the federal government.
The report first reviews the laws and regulations affecting leasing of federal lands for exploration and production of oil, natural gas, and coal, as well as the permits that lessees must obtain in order to explore for and produce these resources. This leasing process has evolved over the last century under the framework established by the Mineral Leasing Act of 1920 (MLA). Oil, natural gas, and coal leasing and production on federal land pursuant to this act are currently overseen by the Bureau of Land Management (BLM), an agency within the U.S. Department of the Interior (DOI). Federal lands identified in the area's Resource Management Plan (RMP) as amenable to oil, coal, or natural gas exploration and production may be leased by BLM, so long as such activities in that area are not prohibited by statute or regulation. Such lands are usually leased to the highest bidder as determined by competitive auction. Leaseholders are generally required to pay both rental fees and royalties (a percentage of the value of produced oil, natural gas, or coal) to the U.S. government.
The report also addresses existing laws and regulations that govern the use of federal lands for renewable energy projects, including geothermal, wind, and solar energy. BLM oversees permitting for these projects. Geothermal projects are leased in accordance with the requirements of the Geothermal Steam Act of 1970. That act functions similarly to the MLA; lands that are amenable to geothermal projects are leased to the highest qualified bidder. In contrast, wind and solar projects on federal lands are not authorized by leases, but rather by obtaining a right-of-way from BLM. These rights-of-way are issued pursuant to the requirements of Title V of the Federal Land Policy and Management Act (FLPMA), and holders of these rights-of-way must make monthly rental payments to the U.S. government.
This framework provides BLM and the federal government with flexibility to use federal lands to help satisfy the nation's energy needs, while generating revenue for the federal government and protecting environmentally sensitive areas.