Sec. 202. Regulation of surface-disturbing activities
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Section 17(g) of the Mineral Leasing Act ( 30 U.S.C. 226(g) ) is amended— in the sixth sentence— by striking such entity and inserting the responsible party ; and by striking Once the entity has complied with the and inserting the following: On compliance by a responsible party under this paragraph with each ; in the fifth sentence, by striking Prior to making such determination with respect to any such entity the concerned Secretary shall provide such entity with and inserting the following: Before making a determination under subparagraph
(A)with respect to a responsible party, the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall provide to the responsible party ; by striking the fourth sentence and inserting the following: The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall not issue, or approve the assignment of, any lease under this section to a responsible party during any period in which, as determined by the applicable Secretary, the responsible party has failed or refused to comply in any material respect with a reclamation requirement or other standard established under this section that is applicable to any other lease of the responsible party. ; and by striking the subsection designation and all that follows through operations on the lease. and inserting the following: In this subsection: The term inactive , with respect to a well or well site under an oil or gas lease issued under this Act, means the well or well site is not— currently producing oil or gas, as applicable, in paying quantities; or actively aiding in the production of oil or gas, as applicable, in paying quantities. The term orphaned , with respect to a well or well site under an oil or gas lease issued under this Act, has the meaning given the term in subsection (q)(1). The term responsible party , with respect to a well or well site under an oil or gas lease issued under this Act, means an individual or entity (including a lessee or operator) that is or will be responsible for— the remediation, reclamation, and closure of the well or well site; or the payment of financial assurance for the well or well site in accordance with paragraph (4). The term responsible party includes— an association, corporation, subsidiary, or affiliate of an individual or entity described in clause (i); and any person controlled by, or under common control with, an individual or entity described in clause (i). The term Secretary means the Secretary of the Interior. The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall— regulate all use and activities conducted pursuant to any lease for oil or gas issued under this Act; and determine the remediation, reclamation, well closure, and other activities that the responsible party shall be required to carry out in the interest of conservation of land, water, and surface resources, including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value. Each application for a permit to drill submitted for a lease issued under this Act shall include a plan of operations for surface use, disturbance, and reclamation that covers all proposed activities and operations within the lease area. Each plan of operations under subparagraph
(A)shall— specify— the location of all relevant facilities, roads, drill pads, trenches, and rights-of-way; details regarding drill pad construction, methods for containment, and disposal of waste material; the identification, location, and condition of any inactive or orphaned well sites on land covered by the lease; and such other information as the Secretary, or the Secretary of Agriculture with respect to National Forest System land, may require; and include the interim reclamation plan and final reclamation plan developed under subparagraph (C). Each applicant for a permit to drill under subparagraph
(A)shall develop for submission with the plan of operations of the applicant under that subparagraph an interim reclamation plan that specifies the reclamation activities that the applicant will carry out to address the land, water, and resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) impacted by activities carried out pursuant to the permit to drill that are not needed for active operations. The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall— review each interim reclamation plan submitted under subclause
(I)at regular intervals; and as the applicable Secretary determines to be necessary, require the amendment and reapproval by the applicable Secretary of the interim reclamation plan. Each applicant for a permit to drill under subparagraph
(A)shall develop for submission with the plan of operations of the applicant under that subparagraph a final reclamation plan that includes a detailed description of the reclamation activities the applicant will carry out prior to final abandonment or cessation of oil and gas operations with respect to all land, water, and resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) impacted by activities carried out pursuant to the permit to drill. The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall review and approve a final reclamation plan under subclause
(I)only after determining that the final reclamation plan is consistent with the standards promulgated pursuant to paragraph (5). The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall not grant a permit to drill under this Act unless the applicable Secretary has analyzed and approved the plan of operations submitted with the application for the permit under subparagraph (A), including the interim reclamation plan and the final reclamation plan under subparagraph (C). The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall promulgate regulations to require that a financial assurance shall be provided by the lessee prior to the commencement of activities on any lease issued under this Act to ensure the complete and timely remediation and reclamation of any land, water, or other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) adversely affected by lease activities and operations after the abandonment or cessation of oil and gas operations on the lease. A lessee may not provide a financial assurance under clause
(i)on a nationwide basis for all leases of the lessee in the United States. With respect to any nationwide financial assurance in effect on the date of enactment of the Oil and Gas Bonding Reform and Orphaned Well Remediation Act , the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall require that, not later than 1 year after that date of enactment, the lessee shall post financial assurances in accordance with this paragraph. The financial assurance under subparagraph
(A)shall be provided in the form of a surety, bond, 1 or more letters of credit, 1 or more certificates of deposit, or cash, subject to the approval of the Secretary, or the Secretary of Agriculture with respect to National Forest System land. Self-bonding shall not be an acceptable form of financial assurance under subparagraph (A). Subject to clause (ii), the amount of a financial assurance required under this paragraph shall be the amount determined by the Secretary, or the Secretary of Agriculture with respect to National Forest System land, to be sufficient to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i) if the work were to be performed by the applicable Secretary in the event of forfeiture by the lessee. Subject to subclause (II), the minimum amount of a financial assurance required under this paragraph shall be not less than— $75,000, in the case of a financial assurance for surface-disturbing activities of a responsible party on an individual oil or gas lease; or $200,000, in the case of a financial assurance for all oil and gas leases of a responsible party in a State. Not later than 3 years after the date of enactment of the Oil and Gas Bonding Reform and Orphaned Well Remediation Act , and not less frequently than once every 3 years thereafter, the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall adjust for inflation the minimum amounts under items
(aa)and
(bb)of subclause (I). The Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall establish the level of a financial assurance required under this paragraph above the applicable minimum level required under clause
(ii)as the applicable Secretary determines to be appropriate or necessary to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i), after taking into consideration the following factors: The depth of each relevant proposed wellbore. The presence of other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value). The number of wells to be drilled on the lease. The number and percentage of low-producing and inactive wells on— the applicable lease; and any other leases held by each applicable lessee, operator, and responsible party. Any current or past violations by each responsible party. The anticipated condition of the applicable well site and the extent of the remediation and reclamation to be required. The ability of each responsible party to fully carry out that remediation and reclamation. Such other factors as the applicable Secretary determines to be relevant. With respect to any financial assurance provided after the date of enactment of the Oil and Gas Bonding Reform and Orphaned Well Remediation Act , not less frequently than once every 5 years, and before the applicable lease is sold or transferred, the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall review the financial assurance to determine, after taking into consideration the factors described in subparagraph (C)(iii), whether the amount of the financial assurance is adequate to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i). If the Secretary, or the Secretary of Agriculture with respect to National Forest System land, determines under subclause
(I)that the amount of a financial assurance is not adequate, the applicable Secretary shall increase the amount of the financial assurance in accordance with subparagraph (C), including making an adjustment for inflation, as appropriate. Not later than 1 year after the date of enactment of the Oil and Gas Bonding Reform and Orphaned Well Remediation Act , and not less frequently than once every 5 years thereafter, the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall— review the sufficiency of each financial assurance provided before that date of enactment; determine, after taking into consideration the factors described in subparagraph (C)(iii), whether the amount of the financial assurance is adequate to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i); and provide to each responsible party a written notice, including any relevant findings, relating to the determination under item (bb). If the Secretary, or the Secretary of Agriculture with respect to National Forest System land, determines under subclause
(I)that the amount of a financial assurance is not adequate, the applicable Secretary shall increase the amount of the financial assurance in accordance with subparagraph (C), including making an adjustment for inflation, as appropriate. On request, and after notice and opportunity for public comment, inspection by the Secretary, or the Secretary of Agriculture with respect to National Forest System land, and consultation with the Administrator of the Environmental Protection Agency, the applicable Secretary may release, in whole or in part, the financial assurance required for a lease under this paragraph if the Secretary determines that— the remediation, reclamation, or well closure covered by the financial assurance has been completed in accordance with— subparagraph (A)(i); and the standards established under paragraph (5); and all other applicable Federal requirements have been met. The Secretary and the Secretary of Agriculture shall jointly promulgate regulations to establish uniform standards for the complete and timely reclamation of land, water, and other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) adversely impacted, directly or indirectly, by oil and gas activities and operations (including any prior remediation or reclamation efforts that fail to achieve compliance with the standards described in subparagraph (B)) to the condition that existed prior to the adverse impact, including— standards for the interim reclamation plans and final reclamation plans required under paragraph (3)(C); and timelines for— commencing and completing the closure of wells and related remediation and reclamation activities; and achieving compliance with the standards described in subparagraph (B). The standards under subparagraph
(A)shall include standards for— the remediation and reclamation of natural vegetation and hydrology; habitat restoration; salvage, storage, and reuse of topsoils; erosion control; reclamation of access roads; control of invasive species and noxious weeds; and natural contouring. Any lessee the lease of which includes an inactive well (except for a well with an approved suspension of operations pursuant to section 39) shall, as soon as practicable after determining that the well has been inactive for a period of more than 30 consecutive days— bring the inactive well into— production in paying quantities; or the active aid of production in paying quantities; submit to the Secretary, or the Secretary of Agriculture with respect to National Forest System land, an application for a delay in the remediation, reclamation, and permanent closure of the well in accordance with this subparagraph; or permanently close the well and complete the timely remediation and reclamation required under paragraphs (4)(A)(i) and (5). Subject to clause (ii), the Secretary, or the Secretary of Agriculture with respect to National Forest System land, may approve an application under subparagraph (A)(ii) for a delay in the remediation, reclamation, and permanent closure of an inactive well under subparagraph
(A)for a period of not more than 1 year. Subject to subclause
(II)and subparagraph (D), on receipt of application by a lessee under subparagraph (A)(ii), the Secretary, or the Secretary of Agriculture with respect to National Forest System land, may approve 1 or more additional delays in the remediation, reclamation, and permanent closure of an inactive well, each of which additional delays shall be for a period of not more than 1 year. Before approving an application for an additional delay under subclause (I), the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall— review the amount of the financial assurance for the applicable lease; and increase the amount to ensure the complete and timely remediation, reclamation, and permanent closure required under paragraph (4)(A)(i) if the work were to be performed by the applicable Secretary in the event of forfeiture by the lessee. Each application of a lessee to delay permanent abandonment and reclamation of a well under subparagraph (A)(ii) or (B)(ii) shall include a description of— the period of time during which the well has been inactive; the justification for delaying permanent abandonment and reclamation of the well; the probable duration of the delay; the means by which the wellbore is to be protected during the delay; and the contemplated eventual disposition of the well. Each application for a delay under subparagraph (A)(ii) or (B)(ii) shall demonstrate, through test results, that the applicable well is— mechanically sound; and capable of— production in paying quantities; or actively aiding in production in paying quantities. No well may be inactive for a period of more than 5 years. With respect to a well under a lease issued under this Act that has been inactive for a period of more than 5 years, the applicable lessee shall— bring the inactive well into— production in paying quantities; or the active aid of production in paying quantities; and pay any related royalties, rentals, or other fees due; or permanently close the well; and complete the timely remediation and reclamation required under paragraph (4)(A)(i). In any case in which a lessee has not carried out any required action under clause
(ii)with respect to a well described in that clause, the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall execute forfeiture of the financial assurance associated with the well. Not later than 180 days after the date of enactment of the Oil and Gas Bonding Reform and Orphaned Well Remediation Act , and not less frequently than annually thereafter, the Secretary, or the Secretary of Agriculture with respect to National Forest System land, shall complete an inventory of all wells that, as of the date of publication of the inventory— are inactive or orphaned; or have previously been identified as idle or abandoned. Each inventory under clause
(i)shall identify, with respect to each inactive or orphaned well— the location of the well; the period of time during which the well has been inactive or orphaned; the responsible parties associated with the well; and any financial assurance provided to remediate and reclaim the well, including the most recent date on which the Secretary reviewed that financial assurance. .
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Sec. 202
Regulation of surface-disturbing activities
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