Declaration of Energy Independence Act

Lower Royalty Rates: The bill reduces the royalty rate for the lease of oil and gas land from 16 2/3 percent to 12.5 percent (Section 2(a)(1)).

Reduced Minimum Bids: The bill changes the oil and gas minimum bid from $10 per acre to $2 per acre (Section 2(b)(1)).

Lower Annual Rental Rates: The annual rental rates are adjusted to be $1.50 per acre per year for the first five years, rather than the previous higher amount (Section 2(c)(1)).

Easier Noncompetitive Leasing: The bill allows the holder of a lease to elect to continue a lease as a noncompetitive lease under specific production conditions (Section 2(e)(1)(B)(3)(A)).

Reduced Reinstatement Costs: The cost for conditions for reinstatement is reduced from $20 to 16 2/3 percent (Section 2(a)(2)).

Elimination of Specific Fees: The bill strikes the provision regarding the fee for expression of interest (Section 2(d)).

Increased Lease Terms: Competitive and noncompetitive leases will now have a primary term of 10 years (Section 2(e)(1)).

Changes to Reinstated Lease Rentals: For reinstated leases, the bill includes a requirement that future rentals be at a rate not less than $5 per acre per year (Section 2(f)(3)).

Back Royalty Requirements for Mining Claims: Those seeking a noncompetitive lease for abandoned unpatented oil placer mining claims must pay rental and royalty including all production made since the statutory date of abandonment (Section 2(f)(3)(1)).