What does Preamble of Offshore Leasing Standards and Accountability Act of 2026 do?

This bill proposes to amend the Outer Continental Shelf Lands Act. The amendment aims to establish fitness to operate standards for offshore oil and gas operators. It also seeks to establish decommissioning escrow accounts for these operators. The bill's stated purpose is 'to amend the Outer Continental Shelf Lands Act to establish fitness to operate standards and decommissioning escrow accounts for offshore oil and gas operators, and for other purposes.'

What does SHORT TITLE. of Offshore Leasing Standards and Accountability Act of 2026 do?

This bill is formally titled the Offshore Leasing Standards and Accountability Act of 2026.

What does FITNESS TO OPERATE STANDARDS FOR OIL AND GAS OPERATORS ON THE of Offshore Leasing Standards and Accountability Act of 2026 do?

This section amends the Outer Continental Shelf Lands Act to establish fitness to operate standards for offshore oil and gas activities. The Secretary may not issue, extend, or approve transfers of leases, easements, or rights-of-way unless the recipient responsible party is certified as fit to operate. Certification is based on past compliance with environmental and safety laws, financial solvency, and other criteria established by regulation. Recipients must demonstrate compliance with various requirements, including a 10-year history of no violations and sufficient financial capacity to fulfill decommissioning liabilities. The Secretary must annually assess compliance and can suspend certifications, impose penalties, or require decommissioning plans if non-compliance is found. The Secretary is required to issue or revise regulations within one year to establish these standards and processes. The Secretary must submit annual reports to Congress detailing assessments, decommissioning cost estimates, and funds held in decommissioning escrow accounts.

What does DECOMMISSIONING ESCROW ACCOUNTS. of Offshore Leasing Standards and Accountability Act of 2026 do?

This section amends the Outer Continental Shelf Lands Act to establish escrow accounts for decommissioning liability. Oil and gas leaseholders must make payments to these interest-bearing escrow accounts to cover the total cost of decommissioning infrastructure. The Secretary, or an independent third-party, will calculate and periodically update probabilistic estimates of decommissioning costs. Initial cost estimates are required prior to new lease issuance, and reevaluations occur at least every two years, before development plan approvals, and after fund disbursal. The Secretary establishes mandatory payment schedules for these accounts. Lease extensions or transfers are contingent on adherence to the payment schedule and outstanding payments. A minimum of 25% of decommissioning costs must be paid upfront for new leases or development plans. Funds in the escrow accounts can only be used for decommissioning purposes and require Secretary approval. Interest earned on escrow account funds becomes part of the principal. After decommissioning, any remaining funds are returned to contributors, excluding funds from joint and several liability. Delinquent payments trigger penalties, including royalty rate increases or lease suspension.

What does RESTRICTION ON TEMPORARY ABANDONMENT OF WELLS. of Offshore Leasing Standards and Accountability Act of 2026 do?

This section amends Section 5 of the Outer Continental Shelf Lands Act. The Secretary is restricted from approving temporary abandonment of an oil well for longer than 3 years. Approval of temporary abandonment requires an economic analysis demonstrating improved operational stability or mitigated environmental impacts. The Secretary may extend the temporary abandonment period to 5 years on a one-time basis if necessary for operational stability or environmental safety.

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Offshore Leasing Standards and Accountability Act of 2026

Last updated: 5/26/2026 · Introduced: 5/26/2026

Author: Dave Min (D-CA)

TL;DR (AI)

This bill establishes fitness-to-operate standards for offshore oil and gas operators, requiring them to demonstrate compliance with environmental and safety laws and financial solvency before leases can be issued or extended.
It mandates the creation of interest-bearing escrow accounts for oil and gas leaseholders to fund the decommissioning of offshore infrastructure, with initial payments requiring at least 25% of estimated costs.
The bill limits the approval of temporary well abandonment to a maximum of three years, with potential extensions to five years only under specific operational or environmental circumstances.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 3 more.

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