S 1931 ISCommentsClose CommentsPermalink

To amend the Mineral Leasing Act to ensure that development of certain Federal oil and gas resources will occur in a manner that protects water resources and respects the rights of surface owners, and for other purposes.CommentsClose CommentsPermalink

August 1, 2007

Mr. TESTER introduced the following bill; which was read twice and referred to the Committee on Energy and Natural ResourcesCommentsClose CommentsPermalink

To amend the Mineral Leasing Act to ensure that development of certain Federal oil and gas resources will occur in a manner that protects water resources and respects the rights of surface owners, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Surface Owner Protection Act'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--PROTECTION OF WATER RESOURCES

Sec. 101. Mineral Leasing Act requirements.CommentsClose CommentsPermalink





Sec. 102. Relationship to State law.CommentsClose CommentsPermalink

TITLE II--SURFACE OWNER PROTECTION

Sec. 201. Definitions.CommentsClose CommentsPermalink





Sec. 202. Post-lease surface use agreement.CommentsClose CommentsPermalink





Sec. 203. Authorized exploration and drilling operations.CommentsClose CommentsPermalink





Sec. 204. Surface owner notification.CommentsClose CommentsPermalink

TITLE III--RECLAMATION AND BONDING

Sec. 301. Reclamation requirements and bond.CommentsClose CommentsPermalink

TITLE I--PROTECTION OF WATER RESOURCES

SEC. 101. MINERAL LEASING ACT REQUIREMENTS.

Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(q) Water Requirements-CommentsClose CommentsPermalink





`(1) IN GENERAL- An operator producing oil or gas (including coalbed methane) under a lease issued under this Act shall--CommentsClose CommentsPermalink





`(A) replace the water supply of a water user who obtains all or part of the supply of the user of water for domestic, agricultural, or other purposes from an underground or surface source that has been affected by contamination, diminution, or interruption proximately resulting from drilling operations for the production; andCommentsClose CommentsPermalink





`(B) comply with all applicable requirements of Federal and State law for discharge of any water produced under the lease.CommentsClose CommentsPermalink





`(2) WATER MANAGEMENT PLAN- An application for a lease under this subsection shall be accompanied by a proposed water management plan including provisions--CommentsClose CommentsPermalink





`(A) to protect the quantity and quality of surface and ground water systems, both on-site and off-site, from adverse effects of the exploration, development, and reclamation processes or to provide alternative sources of water if the protection cannot be ensured;CommentsClose CommentsPermalink





`(B) to protect the rights of present users of water that would be affected by operations under the lease, including the discharge of any water produced in connection with the operations that is not reinjected; andCommentsClose CommentsPermalink





`(C) to identify any agreements with other parties for the beneficial use of produced waters and the steps that will be taken to comply with Federal and State laws relating to the use.'.CommentsClose CommentsPermalink

SEC. 102. RELATIONSHIP TO STATE LAW.

Nothing in this Act or an amendment made by this Act--CommentsClose CommentsPermalink





(1) impairs or affects any right or jurisdiction of any State with respect to the waters of the State; orCommentsClose CommentsPermalink





(2) limits, alters, modifies, or amends any of the interstate compacts or equitable apportionment decrees that apportion water among and between States.CommentsClose CommentsPermalink

TITLE II--SURFACE OWNER PROTECTION

SEC. 201. DEFINITIONS.

In this title:CommentsClose CommentsPermalink





(1) LEASE- The term `lease' means a lease issued by the Secretary under the Mineral Leasing Act (30 U.S.C. 181 et seq.) or any other law, providing for development of oil and gas resources (including coalbed methane) owned by the United States.CommentsClose CommentsPermalink





(2) LESSEE- The term `lessee' means the holder of a lease.CommentsClose CommentsPermalink





(3) OPERATOR- The term `operator' means any person that is responsible under the terms and conditions of a lease for the operations conducted on leased land or any portion of the land.CommentsClose CommentsPermalink





(4) SECRETARY- The term `Secretary' means the Secretary of the Interior.CommentsClose CommentsPermalink

SEC. 202. POST-LEASE SURFACE USE AGREEMENT.

(a) In General- Except as provided in section 203, the Secretary may not authorize any operator to conduct exploration and drilling operations on land 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 1 or more surface owners, indicating that the operator has secured a written surface use agreement between the operator and the 1 or more surface owners that meets the requirements of subsection (b).CommentsClose CommentsPermalink





(b) Contents- A surface use agreement shall provide for--CommentsClose CommentsPermalink





(1) the use of only the portion of the surface estate that is reasonably necessary for exploration and drilling operations based on site-specific conditions, as determined by the Secretary;CommentsClose CommentsPermalink





(2) 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 right of the operator to develop the oil and gas estate;CommentsClose CommentsPermalink





(3) the reclamation of the site to a condition capable of supporting the uses which the land was capable of supporting prior to exploration and drilling operations; andCommentsClose CommentsPermalink





(4) compensation for damages as a result of exploration and drilling operations, including--CommentsClose CommentsPermalink





(A) loss of income and increased costs incurred;CommentsClose CommentsPermalink





(B) damage to or destruction of personal property, including crops, forage, and livestock; andCommentsClose CommentsPermalink





(C) failure to reclaim the site in accordance with paragraph (3).CommentsClose CommentsPermalink





(c) Procedure-CommentsClose CommentsPermalink





(1) NOTICE- An operator shall notify each surface estate owner of the desire of the operator to conclude an agreement under this section.CommentsClose CommentsPermalink





(2) ARBITRATION-CommentsClose CommentsPermalink





(A) IN GENERAL- If the surface estate owner and the operator do not reach an agreement within 90 days after the date on which the operator provided the notice, the matter shall be referred to third party arbitration for resolution within a period of 90 days.CommentsClose CommentsPermalink





(B) COST- The cost of the arbitration shall be the responsibility of the operator.CommentsClose CommentsPermalink





(C) ARBITRATORS- The Secretary shall--CommentsClose CommentsPermalink





(i) identify persons with experience in conducting arbitrations; andCommentsClose CommentsPermalink





(ii) make the information available to operators.CommentsClose CommentsPermalink





(D) REFERRALS- Referral of a matter for arbitration by a person identified by the Secretary pursuant to subparagraph (C) shall constitute compliance with paragraph (1).CommentsClose CommentsPermalink





(d) Attorneys Fees- 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 that a court or arbitration panel may grant.CommentsClose CommentsPermalink

SEC. 203. AUTHORIZED EXPLORATION AND DRILLING OPERATIONS.

(a) In General- The Secretary may authorize an operator to conduct exploration and drilling operations on land covered by section 202 in the absence of an agreement with each surface estate owner, if--CommentsClose CommentsPermalink





(1) 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 section 202(c)(2), but that no agreement was concluded within 90 days after the referral to arbitration;CommentsClose CommentsPermalink





(2) the operator submits a plan of operations that covers the matters specified in section 202(b) and for compliance with all other applicable requirements of Federal and State law; andCommentsClose CommentsPermalink





(3) 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 damage to the site, in the form of a surety bond, trust fund, letter of credit, government security, certificate of deposit, cash, or equivalent.CommentsClose CommentsPermalink





(b) Surface Owner Participation- The Secretary shall provide surface estate owners with an opportunity--CommentsClose CommentsPermalink





(1) to comment on plans of operations in advance of a determination of compliance with this title;CommentsClose CommentsPermalink





(2) to participate in bond level determinations and bond release proceedings under this section;CommentsClose CommentsPermalink





(3) to attend an on-site inspection during the determinations and proceedings;CommentsClose CommentsPermalink





(4) to file written objections to a proposed bond release; andCommentsClose CommentsPermalink





(5) to request and participate in an on-site inspection if the owners have reason to believe there is a violation of the terms and conditions of a plan of operations.CommentsClose CommentsPermalink





(c) Payment of Financial Guarantee-CommentsClose CommentsPermalink





(1) IN GENERAL- A surface estate owner, with respect to any land subject to a lease, may petition the Secretary for payment of all or part of a bond or other financial assurance required under this section as compensation for any damage as a result of exploration and drilling operations.CommentsClose CommentsPermalink





(2) COMPENSATION- Pursuant to the petition, the Secretary may use the bond or other guarantee to provide compensation to the surface estate owner for the damage.CommentsClose CommentsPermalink





(d) Bond Release- On 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--CommentsClose CommentsPermalink





(1) exploration and drilling operations have ended; andCommentsClose CommentsPermalink





(2) all damage has been fully compensated.CommentsClose CommentsPermalink

SEC. 204. SURFACE OWNER NOTIFICATION.

The Secretary shall--CommentsClose CommentsPermalink





(1) notify surface estate owners of lease sales in writing at least 45 days in advance;CommentsClose CommentsPermalink





(2) not later than 10 working days after the date on which a lease is issued, notify surface estate owners regarding the identity of the lessee;CommentsClose CommentsPermalink





(3) notify surface estate owners in writing concerning any subsequent decisions regarding a lease, such as modifying or waiving stipulations and approving rights of way; andCommentsClose CommentsPermalink





(4) notify surface estate owners not later than 5 business days after the date of issuance of a drilling permit under a lease.CommentsClose CommentsPermalink

TITLE III--RECLAMATION AND BONDING

SEC. 301. RECLAMATION REQUIREMENTS AND BOND.

(a) In General- Section 17 of the Mineral Leasing Act (30 U.S.C. 226) (as amended by section 101) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(r) Reclamation Requirements and Bond-CommentsClose CommentsPermalink





`(1) REQUIREMENTS- An operator producing oil or gas (including coalbed methane) under a lease issued pursuant to this Act shall--CommentsClose CommentsPermalink





`(A) at a minimum, restore the land affected to a condition capable of supporting the uses that the land was capable of supporting prior to any drilling, or higher or better uses if there is reasonable likelihood that--CommentsClose CommentsPermalink





`(i) the 1 or more uses do not--CommentsClose CommentsPermalink





`(I) present any actual or probable hazard to public health or safety; orCommentsClose CommentsPermalink





`(II) pose any actual or probable threat of water diminution or pollution; andCommentsClose CommentsPermalink





`(ii) the declared proposed land use of the permit applicant following reclamation--CommentsClose CommentsPermalink





`(I) is not impractical or unreasonable, inconsistent with applicable land use policies and plans, or involve unreasonable delay in implementation; andCommentsClose CommentsPermalink





`(II) does not violate Federal, State, or local law;CommentsClose CommentsPermalink





`(B) ensure that all reclamation efforts proceed in an environmentally sound manner and as contemporaneously as practicable with the oil and gas drilling operations; andCommentsClose CommentsPermalink





`(C) submit, with the plan of operations, a reclamation plan that describes in detail the methods and practices that will be used to ensure complete and timely restoration of all land affected by oil and gas operations.CommentsClose CommentsPermalink





`(2) RECLAMATION BOND-CommentsClose CommentsPermalink





`(A) IN GENERAL- An operator producing oil or gas (including coalbed methane) under a lease issued under this Act shall post a bond that covers the area of land within the permit area on which the operator will initiate and conduct oil and gas drilling and reclamation operations within the initial term of the permit.CommentsClose CommentsPermalink





`(B) ADDITIONAL BONDS- As succeeding increments of oil and gas drilling and reclamation operations are initiated and conducted within the permit area, the lessee shall file with the regulatory authority 1 or more additional bonds to cover the increments in accordance with this section.CommentsClose CommentsPermalink





`(C) AMOUNT- The amount of the bond required for each bonded area shall--CommentsClose CommentsPermalink





`(i) meet the reclamation requirements of the approved permit;CommentsClose CommentsPermalink





`(ii) reflect the probable difficulty of reclamation considering factors such as topography, the geology of the site, hydrology, and revegetation potential;CommentsClose CommentsPermalink





`(iii) be determined by the Secretary; andCommentsClose CommentsPermalink





`(iv) be sufficient to ensure the completion of the reclamation plan if the work had to be performed by the Secretary in the event of forfeiture.CommentsClose CommentsPermalink





`(3) REGULATIONS- No later than 1 year after the date of enactment of this subsection, the Secretary shall promulgate regulations to implement the requirements of this subsection.'.CommentsClose CommentsPermalink





(b) Review and Report-CommentsClose CommentsPermalink





(1) REVIEW- The Comptroller General of the United States shall conduct a review of the adequacy of the regulations promulgated by the Secretary of the Interior pursuant to subsection (r)(3) of section 17 of the Mineral Leasing Act (30 U.S.C. 226) (as added by subsection (a)) to ensure that operators will meet the requirements of subsection (r) of that section.CommentsClose CommentsPermalink





(2) REPORT- Not later than 180 days after the date on which the Secretary promulgates regulations pursuant to subsection (r)(3) of section 17 of the Mineral Leasing Act (30 U.S.C. 226) (as added by subsection (a)), the Comptroller General of the United States shall submit to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report that describes the results of the review conducted under paragraph (1), including--CommentsClose CommentsPermalink





(A) any findings and conclusions of the Comptroller General of the United States; andCommentsClose CommentsPermalink





(B) any recommendations the Comptroller General may make with respect to any legislation or administrative actions the Comptroller General of the United States determines would be appropriate to ensure compliance with the requirements of subsection (r) of that section.CommentsClose CommentsPermalink