Federal Exploration and Production Reform Act of 2009 - Amends the Outer Continental Shelf Lands Act to revise requirements for review and approval of outer Continental Shelf (OCS) plans for geological and geophysical exploration on any area under an oil and gas lease. Repeals the requirement that approval be denied if: (1) any proposed activity under the plan would result in serious harm or damage to life (including fish and other aquatic life), to property, to any mineral, to the national security or defense, or to the marine, coastal, or human environment; and (2) such proposed activity cannot be modified to avoid such harm or damage.
Repeals the authority of the Secretary of the Interior to cancel the lease or permit if the plan is disapproved.
Revises requirements for review and approval of OCS oil and gas development and production plans. Requires the Secretary to seek and accept the assistance of the Department of Defense in the review of any plan prepared for a lease containing military operating stipulations or other restrictions.
Repeals the requirement that the Secretary require modification of a plan without adequate provision for safe operations on the lease area or for protection of the human, marine, or coastal environment.
Amends the Mineral Leasing Act to revise requirements for regulation of surface-disturbing activities, including preparation of exploration and development and production plans.
Eliminates the requirement of an adequate bond, surety, or other financial arrangement before commencement of surface-disturbing activities on any lease to ensure reclamation of the lease tract, and restoration of any lands or surface waters adversely affected by lease operations after abandonment or cessation of oil and gas operations on the lease. Repeals the prohibition against issuance of a lease, or approval of its assignment, if reclamation requirements and other related standards have not been complied with.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3616 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3616
To expedite the exploration and development of oil and gas from Federal
lands, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 22, 2009
Ms. Fallin introduced the following bill; which was referred to the
Committee on Natural Resources
_______________________________________________________________________
A BILL
To expedite the exploration and development of oil and gas from Federal
lands, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Exploration and Production
Reform Act of 2009''.
SEC. 2. REVIEW OF OUTER CONTINENTAL SHELF EXPLORATION PLANS.
Subsections (c) and (d) of section 11 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1340) are amended to read as follows:
``(c) Plan Review; Plan Provisions.--
``(1) Except as otherwise provided in this Act, prior to
commencing exploration pursuant to any oil and gas lease issued
or maintained under this Act, the holder thereof shall submit
an exploration plan (hereinafter in this section referred to as
a `plan') to the Secretary for review which shall include all
information and documentation required under paragraphs (2) and
(3). The Secretary shall review the plan for completeness
within 10 days of submission. If the Secretary finds that the
plan is not complete, the Secretary shall notify the lessee
with a detailed explanation and require such modifications of
such plan as are necessary to achieve completeness. The
Secretary shall have 10 days to review a modified plan for
completeness. Such plan may apply to more than one lease held
by a lessee in any one region of the outer Continental Shelf,
or by a group of lessees acting under a unitization, pooling,
or drilling agreement, and the lessee shall certify that such
plan is consistent with the terms of the lease and is
consistent with all statutory and regulatory requirements in
effect on the date of issuance of the lease, and any
regulations promulgated under this Act to the conservation of
resources after the date of the lease issuances. The Secretary
shall have 30 days from the date the plan is deemed complete to
conduct a review of the plan. If the Secretary finds the plan
is not consistent with the lease and all such statutory and
regulatory requirements, the Secretary shall notify the lessee
with a detailed explanation of such modifications of such plan
as are necessary to achieve compliance. The Secretary shall
have 30 days to review any modified plan submitted by the
lessee. The lessee shall not take any action under the
exploration plan within the 30-day review period, or thereafter
until the plan has been modified to achieve compliance as so
notified.
``(2) An exploration plan submitted under this subsection
shall include, in the degree of detail which the Secretary may
by regulation require--
``(A) a schedule of anticipated exploration
activities to be undertaken;
``(B) a description of equipment to be used for
such activities;
``(C) the general location of each well to be
drilled; and
``(D) such other information deemed pertinent by
the Secretary.
``(3) The Secretary may, by regulation, require that such
plan be accompanied by a general statement of development and
production intentions which shall be for planning purposes only
and which shall not be binding on any party.
``(d) Plan Revisions; Conduct of Exploration Activities.--
``(1) If a significant revision of an exploration plan
under this subsection is submitted to the Secretary, the
process to be used for the review of such revision shall be the
same as set forth in subsection (c) of this section.
``(2) All exploration activities pursuant to any lease
shall be conducted in accordance with an exploration plan or a
revised plan which has been submitted to and reviewed by the
Secretary.''.
SEC. 3. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION
PLANS.
Section 25 of the Outer Continental Shelf Lands Act (43 U.S.C.
1351(a)) is amended to read as follows:
``SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION
PLANS.
``(a) Development and Production Plans; Submission to Secretary;
Statement of Facilities and Operation; Submission to Governors of
Affected States and Local Governments.--
``(1) Prior to development and production pursuant to an
oil and gas lease issued on or after September 18, 1978, for
any area of the outer Continental Shelf, or issued or
maintained prior to September 18, 1978, for any area of the
outer Continental Shelf, with respect to which no oil or gas
has been discovered in paying quantities prior to September 18,
1978, the lessee shall submit a development and production plan
(hereinafter in this section referred to as a `plan') to the
Secretary for review.
``(2) A plan shall be accompanied by a statement describing
all facilities and operations, other than those on the outer
Continental Shelf, proposed by the lessee and known by the
lessee (whether or not owned or operated by such lessee) that
will be constructed or utilized in the development and
production of oil or gas from the lease area, including the
location and site of such facilities and operations, the land,
labor, material, and energy requirements associated with such
facilities and operations, and all environmental and safety
safeguards to be implemented.
``(3) Except for any privileged or proprietary information
(as such term is defined in regulations issued by the
Secretary), the Secretary, within 30 days after receipt of a
plan and statement, shall--
``(A) submit such plan and statement to the
Governor of any affected State, and upon request to the
executive of any affected local government; and
``(B) make such plan and statement available to any
appropriate interstate regional entity and the public.
``(b) Development and Production Activities in Accordance With Plan
as Lease Requirement.--After enactment of the Federal Exploration and
Production Reform Act of 2008, no oil and gas lease may be issued
pursuant to this Act in any region of the outer Continental Shelf,
unless such lease requires that development and production activities
be carried out in accordance with a plan that complies with the
requirements of this section. This section shall also apply to leases
that do not have an approved development and production plan as of the
date of enactment of the Federal Exploration and Production Reform Act
of 2008.
``(c) Scope and Contents of Plan.--A plan may apply to more than
one oil and gas lease, and shall set forth, in the degree of detail
established by regulations issued by the Secretary--
``(1) the general work to be performed;
``(2) a description of all facilities and operations
located on the outer Continental Shelf that are proposed by the
lessee or known by the lessee (whether or not owned or operated
by such lessee) to be directly related to the proposed
development, including the location and size of such facilities
and operations, and the land, labor, material, and energy
requirements associated with such facilities and operations;
``(3) the environmental safeguards to be implemented on the
outer Continental Shelf and how such safeguards are to be
implemented;
``(4) all safety standards to be met and how such standards
are to be met;
``(5) an expected rate of development and production and a
time schedule for performance; and
``(6) such other relevant information as the Secretary may
by regulation require.
``(d) Completeness Review of the Plan.--
``(1) Prior to commencing any activity under a development
and production plan pursuant to any oil and gas lease issued or
maintained under this Act, the lessee shall certify that the
plan is consistent with the terms of the lease and that it is
consistent with all statutory and regulatory requirements in
effect on the date of issuance of the lease, and any
regulations promulgated under this Act related to the
conservation of resources after the date of lease issuance. The
plan shall include all required information and documentation
required under subsection (c).
``(2) The Secretary shall review the plan for completeness
within 30 days of submission. If the Secretary finds that the
plan is not complete, the Secretary shall notify the lessee
with a detailed explanation of such modifications of such plan
as are necessary to achieve completeness. The Secretary shall
have 30 days to review a modified plan for completeness.
``(e) Review for Consistency of the Plan.--
``(1) After a determination that a plan is complete, the
Secretary shall have 120 days to conduct a review of the plan,
to ensure that it is consistent with the terms of the lease,
and that it is consistent with all such statutory and
regulatory requirements applicable to the lease. The review
shall ensure that the plan is consistent with lease terms, and
statutory and regulatory requirements applicable to the lease,
related to national security or national defense, including any
military operating stipulations or other restrictions. The
Secretary shall seek the assistance of the Department of
Defense in the conduct of the review of any plan prepared under
this section for a lease containing military operating
stipulations or other restrictions and shall accept the
assistance of the Department of Defense in the conduct of the
review of any plan prepared under this section for any other
lease when the Secretary of Defense requests an opportunity to
participate in the review. If the Secretary finds that the plan
is not consistent, the Secretary shall notify the lessee with a
detailed explanation of such modifications of such plan as are
necessary to achieve consistency.
``(2) The Secretary shall have 120 days to review a
modified plan.
``(3) The lessee shall not conduct any activities under the
plan during any 120-day review period, or thereafter until the
plan has been modified to achieve compliance as so notified.
``(4) After review by the Secretary provided for by this
section, a lessee may operate pursuant to the plan without
further review or approval by the Secretary.
``(f) Review of Revision of the Approved Plan.--The lessee may
submit to the Secretary any revision of a plan if the lessee determines
that such revision will lead to greater recovery of oil and natural
gas, improve the efficiency, safety, and environmental protection of
the recovery operation, is the only means available to avoid
substantial economic hardship to the lessee, or is otherwise not
inconsistent with the provisions of this Act, to the extent such
revision is consistent with protection of the human, marine, and
coastal environments. The process to be used for the review of any such
revision shall be the same as that set forth in subsections (d) and
(e).
``(g) Cancellation of Lease on Failure To Submit Plan or Comply
With a Plan.--Whenever the owner of any lease fails to submit a plan in
accordance with regulations issued under this section, or fails to
comply with a plan, the lease may be canceled in accordance with
sections 5(c) and (d). Termination of a lease because of failure to
comply with a plan, including required modifications or revisions,
shall not entitle a lessee to any compensation.
``(h) Production and Transportation of Natural Gas; Submission of
Plan to Federal Energy Regulatory Commission; Impact Statement.--If any
development and production plan submitted to the Secretary pursuant to
this section provides for the production and transportation of natural
gas, the lessee shall contemporaneously submit to the Federal Energy
Regulatory Commission that portion of such plan that relates to the
facilities for transportation of natural gas. The Secretary and the
Federal Energy Regulatory Commission shall agree as to which of them
shall prepare an environmental impact statement pursuant to the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
applicable to such portion of such plan, or conduct studies as to the
effect on the environment of implementing it. Thereafter, the findings
and recommendations by the agency preparing such environmental impact
statement or conducting such studies pursuant to such agreement shall
be adopted by the other agency, and such other agency shall not
independently prepare another environmental impact statement or
duplicate such studies with respect to such portion of such plan, but
the Federal Energy Regulatory Commission, in connection with its review
of an application for a certificate of public convenience and necessity
applicable to such transportation facilities pursuant to section 7 of
the Natural Gas Act (15 U.S.C. 717f), may prepare such environmental
studies or statement relevant to certification of such transportation
facilities as have not been covered by an environmental impact
statement or studies prepared by the Secretary. The Secretary, in
consultation with the Federal Energy Regulatory Commission, shall
promulgate rules to implement this subsection, but the Federal Energy
Regulatory Commission shall retain sole authority with respect to rules
and procedures applicable to the filing of any application with the
Commission and to all aspects of the Commission's review of, and action
on, any such application.''.
SEC. 4. REGULATION OF ONSHORE SURFACE-DISTURBING ACTIVITIES.
(a) Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is
amended to read as follows:
``(g) Regulation of Surface-Disturbing Activities.--
``(1) Regulation of surface-disturbing activities.--The
Secretary of the Interior, or for National Forest lands, the
Secretary of Agriculture, shall regulate all surface-disturbing
activities conducted pursuant to any lease issued under this
Act, and shall determine reclamation and other actions as
required in the interest of conservation of surface resources.
``(2) Submission of exploration plan; completion review;
compliance review.--
``(A) Prior to beginning oil and gas exploration
activities, a lessee shall submit an exploration plan
to the Secretary of the Interior for review.
``(B) The Secretary shall review the plan for
completeness within 10 days of submission.
``(C) In the event the exploration plan is
determined to be incomplete, the Secretary shall notify
the lessee in writing and specify the items or
information needed to complete the exploration plan.
``(D) The Secretary shall have 10 days to review
any modified exploration plan submitted by the lessee.
``(E) To be deemed complete, an exploration plan
shall include, in the degree of detail to be determined
by the Secretary by rule or regulation--
``(i) a drilling plan containing a
description of the drilling program;
``(ii) the surface and projected completion
zone location;
``(iii) pertinent geologic data;
``(iv) expected hazards, and proposed
mitigation measures to address such hazards;
``(v) a schedule of anticipated exploration
activities to be undertaken;
``(vi) a description of equipment to be
used for such activities;
``(vii) a certification from the lessee
stating that the exploration plan complies with
all lease, regulatory and statutory
requirements in effect on the date of the
issuance of the lease and any regulations
promulgated after the date of lease issuance
related to the conservation of resources;
``(viii) evidence that the lessee has
secured an adequate bond, surety, or other
financial arrangement prior to commencement of
any surface-disturbing activity;
``(ix) a plan that details the complete and
timely reclamation of the lease tract; and
``(x) such other relevant information as
the Secretary may by regulation require.
``(F) Upon a determination that the exploration
plan is complete, the Secretary shall have 30 days from
the date the plan is deemed complete to conduct a
review of the plan.
``(G) If the Secretary finds the exploration plan
is not consistent with all statutory and regulatory
requirements described in subparagraph (E)(vii), the
Secretary shall notify the lessee with a detailed
explanation of such modifications of the exploration
plan as are necessary to achieve compliance.
``(H) The lessee shall not take any action under
the exploration plan within a 30-day review period, or
thereafter until the plan has been modified to achieve
compliance as so notified.
``(I) After review by the Secretary provided by
this subsection, a lessee may operate pursuant to the
plan without further review or approval by the
Secretary.
``(3) Plan revisions; conduct of exploration activities.--
``(A) If a significant revision of an exploration
plan under this subsection is submitted to the
Secretary, the process to be used for the review of
such revision shall be the same as set forth in
paragraph (1) of this subsection.
``(B) All exploration activities pursuant to any
lease shall be conducted in accordance with an
exploration plan that has been submitted to and
reviewed by the Secretary or a revision of such plan.
``(4) Submission of development and production plan;
completeness review; compliance review.--
``(A) Prior to beginning oil and gas development
and production activities, a lessee shall submit a
development and exploration plan to the Secretary of
the Interior. Upon submission, such plans shall be
subject to a review for completeness.
``(B) The Secretary shall review the plan for
completeness within 30 days of submission.
``(C) In the event a development and production
plan is determined to be incomplete, the Secretary
shall notify the lessee in writing and specify the
items or information needed to complete the plan.
``(D) The Secretary shall have 30 days to review
for completeness any modified development and
production plan submitted by the lessee.
``(E) To be deemed complete, a development and
production plan shall include, in the degree of detail
to be determined by the Secretary by rule or
regulation--
``(i) a drilling plan containing a
description of the drilling program;
``(ii) the surface and projected completion
zone location;
``(iii) pertinent geologic data;
``(iv) expected hazards, and proposed
mitigation measures to address such hazards;
``(v) a statement describing all facilities
and operations proposed by the lessee and known
by the lessee (whether or not owned or operated
by such lessee) that shall be constructed or
utilized in the development and production of
oil or gas from the leases areas, including the
location and site of such facilities and
operations, the land, labor, material, and
energy requirements associated with such
facilities and operations;
``(vi) the general work to be performed;
``(vii) the environmental safeguards to be
implemented in connection with the development
and production and how such safeguards are to
be implemented;
``(viii) all safety standards to be met and
how such standards are to be met;
``(ix) an expected rate of development and
production and a time schedule for performance;
``(x) a certification from the lessee
stating that the development and production
plan complies with all lease, regulatory, and
statutory requirements in effect on the date of
issuance of the lease, and any regulations
promulgated after the date of lease issuance
related to the conservation of resources;
``(xi) evidence that the lessee has secured
an adequate bond, surety, or other financial
arrangement prior to commencement of any
surface-disturbing activity;
``(xii) a plan that details the complete
and timely reclamation of the lease tract; and
``(xiii) such other relevant information as
the Secretary may by regulation require.
``(F) Upon a determination that the development and
production plan is complete, the Secretary shall have
120 days from the date the plan is deemed complete to
conduct a review of the plan.
``(G) If the Secretary finds the development and
production plan is not consistent with all statutory
and regulatory requirements described in subparagraph
(E)(x), the Secretary shall notify the lessee with a
detailed explanation of such modifications of the
development and production plan as are necessary to
achieve compliance.
``(H) The lessee shall not take any action under
the development and production plan within a 120-day
review period, or thereafter until the plan has been
modified to achieve compliance as so notified.
``(5) Plan revisions; conduct of development and production
activities.--
``(A) If a significant revision of a development
and production plan under this subsection is submitted
to the Secretary, the process to be used for the review
of such revision shall be the same as set forth in
paragraph (4) of this subsection.
``(B) All development and production activities
pursuant to any lease shall be conducted in accordance
with a development and production plan that has been
submitted to and reviewed by the Secretary or a
revision of such plan.
``(6) Cancellation of lease on failure to submit plan or
comply with approved plan.--Whenever the owner of any lease
fails to submit a plan in accordance with regulations issued
under this section, or fails to comply with a plan, the lease
may be canceled in accordance with section 31. Termination of a
lease because of failure to comply with a plan, including
required modifications or revisions, shall not entitle a lessee
to any compensation.''.
(b) Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) is
repealed.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
Referred to the Subcommittee on Energy and Mineral Resources.
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