This bill states that a Bureau of Land Management drilling permit shall not be required under the Federal Oil and Gas Royalty Management Act of 1982 for an action occurring within an oil and gas drilling or spacing unit, if (1) less than 50% of the minerals within the unit are federally owned, and (2) the federal government neither owns nor leases the surface estate within the unit's boundaries. Drilling and spacing units are one component of a state regulatory framework for oil and gas exploration and production.
The bill retains the right of the federal government to receive royalties from the production of federal minerals within the drilling or spacing unit.