Sec. 3. Transparency and landowner protections
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Section 17(b) of the Mineral Leasing Act ( 30 U.S.C. 226(b) ), as amended by this Act, is further amended by adding at the end the following: The Secretary— shall require that each expression of interest to bid for a lease under this section and each bid for a lease under this section shall include the name of the person for whom such expression of interest or bid is submitted; and shall promptly publish each such name. . Section 17(f) of the Mineral Leasing Act ( 30 U.S.C. 226(f) ) is amended by striking At least and all that follows through agencies. and inserting the following:
At least 45 days before offering lands for lease under this section, and at least 30 days before approving applications for permits to drill under the provisions of a lease, modifying the terms of any lease issued under this section, or granting a waiver, exception, or modification of any stipulation of a lease issued under this section, the Secretary shall provide notice of the proposed action to— the general public by posting such notice in the appropriate local office and on the electronic website of the leasing and land management agencies offering the lands for lease; all surface land owners in the area of the lands being offered for lease; and the holders of special recreation permits for commercial use, competitive events, and other organized activities on the lands being offered for lease. .
Except as provided in paragraph (2), the Secretary may not authorize any operator to conduct exploration and drilling operations on lands with respect to which title to oil and gas resources is held by the United States but title to the surface estate is not held by the United States, until the operator has filed with the Secretary a document, signed by the operator and the surface owner or owners, showing that the operator has secured a written surface use agreement between the operator and the surface owner or owners that meets the requirements of subparagraph (B).
The surface use agreement shall provide for— the use of only such portion of the surface estate as is reasonably necessary for exploration and drilling operations based on site-specific conditions; the accommodation of the surface estate owner to the maximum extent practicable, including the location, use, timing, and type of exploration and drilling operations, consistent with the operator’s right to develop the oil and gas estate; the reclamation of the site to a condition capable of supporting the uses which such lands were capable of supporting prior to exploration and drilling operations; and compensation for damages as a result of exploration and drilling operations, including— loss of income and increased costs incurred; damage to or destruction of personal property, including crops, forage, and livestock; and failure to reclaim the site in accordance with clause (iii).
An operator shall notify the surface estate owner or owners of the operator’s desire to conclude an agreement under this section. If the surface estate owner and the operator do not reach an agreement within 90 days after the operator has provided such notice, the operator may submit the matter to third-party arbitration for resolution within a period of 90 days. The cost of such arbitration shall be the responsibility of the operator. The Secretary shall identify persons with experience in conducting arbitrations and shall make this information available to operators.
Referral of a matter for arbitration by an operator to an arbitrator identified by the Secretary pursuant to clause
(ii)shall be sufficient to constitute compliance with clause (i). If action is taken to enforce or interpret any of the terms and conditions contained in a surface use agreement, the prevailing party shall be reimbursed by the other party for reasonable attorneys fees and actual costs incurred, in addition to any other relief which a court or arbitration panel may grant. The Secretary may authorize an operator to conduct exploration and drilling operations on lands covered by paragraph
(1)in the absence of an agreement with the surface estate owner or owners, if— the Secretary makes a determination in writing that the operator made a good faith attempt to conclude such an agreement, including referral of the matter to arbitration pursuant to paragraph (1)(C), but that no agreement was concluded within 90 days after the referral to arbitration; the operator submits a plan of operations that provides for the matters specified in paragraph (1)(B) and for compliance with all other applicable requirements of Federal and State law; and the operator posts a bond or other financial assurance in an amount the Secretary determines to be adequate to ensure compensation to the surface estate owner for any damages to the site, in the form of a surety bond, trust fund, letter of credit, government security, certificate of deposit, cash, or equivalent. The Secretary shall provide surface estate owners with an opportunity to— comment on plans of operations in advance of a determination of compliance with this Act; participate in bond level determinations and bond release proceedings under this section; attend an on-site inspection during such determinations and proceedings; file written objections to a proposed bond release; and request and participate in an on-site inspection when they have reason to believe there is a violation of the terms and conditions of a plan of operations. A surface estate owner with respect to any land subject to a lease may petition the Secretary for payment of all or any portion of a bond or other financial assurance required under this section as compensation for any damages as a result of exploration and drilling operations. Pursuant to such a petition, the Secretary may use such bond or other guarantee to provide compensation to the surface estate owner for such damages. Upon request and after inspection and opportunity for surface estate owner review, the Secretary may release the financial assurance required under this section if the Secretary determines that exploration and drilling operations are ended and all damages have been fully compensated. The Secretary shall notify surface estate owners in writing— not less than 45 days before lease sales; of the identity of the lessee, not more than 10 business days after a lease is issued; concerning any subsequent request or decision regarding a lease not more than 5 business days after such request or decision, including regarding modification of a lease, waiver of a stipulation, or approval of a right of way; and not more than 5 business days after issuance of a drilling permit under a lease.
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Sec. 3
Transparency and landowner protections
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