Federal Onshore Oil and Gas Leasing Reform Act of 1987

(Reported to House from the Committee on Interior and Insular Affairs, amended, H. Rept. 100-378 (Part I))

Federal Onshore Oil and Gas Leasing Reform Act of 1987 - Amends the Mineral Lands Leasing Act of 1920 regarding competitive leasing of oil and gas for onshore Federal lands to increase from 640 acres to 2,560 acres the units of land open to competitive leasing. Restricts the maximum units in Alaska to 5,760 acres.

Provides for lease sales to be: (1) conducted by oral bidding (but with sealed bids permitted); and (2) held at least quarterly in each State (or more frequently at the Secretary of the Interior's discretion). Conditions such lease sales upon the payment of specified royalties. Sets forth a $75 bidding fee. Requires the Secretary of the Interior (the Secretary) to accept the highest bid from a responsible bidder. Authorizes the Secretary not to issue a lease if, in his discretion, he determines that the highest bid would not represent a reasonable return to the public. Makes lands available for leasing without competitive bidding for a maximum one-year period if no bids have been received.

Increases the annual lease rental from 50 cents to $2 per acre for the first five years, and for a minimum of $3.00 per acre per year for each year thereafter. Increases the minimum royalty upon discovery of oil or gas in paying quantities from $1 per acre to $3.00 per acre.

Requires the Secretary to make maps and narrative descriptions available to the public at least: (1) 60 days before offering lands for lease; and (2) 30 days before substantially modifying lease terms. Directs the Secretary to provide periodic notice to State and local governments and to the public regarding pending applications for drilling permits. Prescribes guidelines under which the Secretary (or the Secretary of Agriculture for national public domain forest lands) must regulate surface-disturbing activities conducted upon lease lands.

Authorizes the Secretary to disapprove specified lease assignments at his discretion. Amends lease cancellation conditions to provide that leases will not be cancelled due to the lessee's non-compliance with lease terms if: (1) the leasehold contains a well capable of oil or gas production in paying quantities; or (2) the lease is committed to an approved cooperative, unit plan, or communitization agreement which contains a well capable of unitized substances production in paying quantities.

Permits the issuance of oil or gas leases on public lands (or public domain national forest lands) only if such leasing has been evaluated and approved in a land use plan meeting certain statutory requirements. Prescribes guidelines for such land use plans. Prohibits the issuance of oil or gas leases upon certain lands allocated or designated as wilderness areas.

Sets forth guidelines for the promulgation of regulations regarding lease sales.

Imposes civil and criminal penalties upon persons who willfully and knowingly misrepresent the value of lands and leases under this Act. Grants to the States concurrent civil and criminal jurisdiction for violations of this Act.

States that Federal law regarding competitive leasing of oil and gas for onshore Federal lands may be cited as the Mineral Lands Leasing Act of 1920.