A bill to amend the Mineral Leasing Act to provide for leasing of certain lands for oil and gas purposes.

Amends the Mineral Leasing Act to authorize the Secretary of the Interior to lease certain public domain lands in Garfield County, Colorado, for oil and gas exploration, development, and production.

Conditions the authorization upon the payment of a royalty. Authorizes the Secretary to establish a sliding scale royalty of between 12.5 percent and 25 percent in amount or value of the production removed or sold from the lease.

Mandates that: (1) the royalty payable to the United States be paid in crude oil of a quality acceptable to the Secretary of Energy produced on or off the reserve and shall be deposited to the Strategic Petroleum Reserve (SPR); (2) 50 percent of the value that the Secretary establishes for the royalty oil be paid to the State from amounts received which otherwise would be deposited to the Treasury as miscellaneous receipts; and (3) with respect to such royalty oil there shall be no payment to the reclamation fund or the Treasury as miscellaneous receipts.

Permits such lease to include the transfer, at fair market value, of federally owned oil and gas equipment suitable for hydrocarbon development on such lands.

Instructs the Secretary to take all actions necessary to ensure that the cost of compliance with this Act is minimized.