Bonding Reform and Taxpayer Protection Act of 2019
This bill revises bonding requirements for oil and gas development.
Specifically, the bill increases the amount of bond that oil and gas developers must provide prior to conducting surface-disturbing activities and requires such amounts to adjust every three years for inflation.
The bill also requires the Department of the Interior and the Department of Agriculture to establish uniform standards for all interim and final reclamation plans and not release any bond amounts until the standards have been met by oil and gas developers.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4346 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4346
To amend the Mineral Leasing Act to make certain adjustments to the
regulation of surface-disturbing activities and to protect taxpayers
from unduly bearing the reclamation costs of oil and gas development,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 17, 2019
Mr. Lowenthal introduced the following bill; which was referred to the
Committee on Natural Resources
_______________________________________________________________________
A BILL
To amend the Mineral Leasing Act to make certain adjustments to the
regulation of surface-disturbing activities and to protect taxpayers
from unduly bearing the reclamation costs of oil and gas development,
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 referred to as the ``Bonding Reform and Taxpayer
Protection Act of 2019''.
SEC. 2. SURFACE DISTURBANCE AND RECLAMATION.
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is
amended to read as follows:
``(g) Bonding Requirements.--
``(1) Definitions.--In this subsection:
``(A) Interim reclamation plan.--The term `Interim
Reclamation Plan' means an ongoing plan specifying
reclamation steps to be taken on all disturbed areas
covered by any lease issued under this Act that are not
needed for active operations.
``(B) Final reclamation plan.--The term `Final
Reclamation Plan' means a plan describing all
reclamation activity to be conducted for all disturbed
areas, including locations, facilities, trenches,
rights-of-way, roads, and any other surface disturbance
covered by a lease issued under this Act prior to final
abandonment.
``(2) In general.--The Secretary of the Interior, or with
respect to 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.
``(3) Reclamation plans required.--
``(A) Analysis and approval required.--No permit to
drill on an oil and gas lease issued under this Act may
be granted without the analysis and approval by the
Secretary concerned of both an interim reclamation plan
and a final reclamation plan covering proposed surface-
disturbing activities within the lease area.
``(B) Plans of operations.--All Plans of Operations
submitted and approved pursuant to this Act shall
include an Interim Reclamation Plan.
``(C) Secretarial review.--The relevant Secretary
shall review each Interim Reclamation Plan at regular
intervals and shall require such plans to be amended as
warranted, subject to the approval of such Secretary.
``(4) Bonding.--
``(A) In general.--The Secretary concerned shall,
by regulation, require that an adequate bond, surety,
or other financial arrangement will be established
prior to the commencement of surface-disturbing
activities on any lease, to ensure the complete and
timely reclamation of the lease tract, and the
restoration of any lands or surface waters adversely
affected by lease operations after the abandonment or
cessation of oil and gas operations on the lease.
``(B) Prohibition.--The Secretary shall not issue
or approve the assignment of any lease under the terms
of this section to any person, association,
corporation, or any subsidiary, affiliate, or person
controlled by or under common control with such person,
association, or corporation, during any period in
which, as determined by the relevant Secretary, such
entity has failed or refused to comply in any material
respect with the reclamation requirements and other
standards established under this section for any prior
lease to which such requirements and standards applied.
``(C) Notice and opportunity for compliance.--Prior
to making such determination with respect to any such
entity the concerned Secretary shall provide such
entity with adequate notification and an opportunity to
comply with such reclamation requirements and other
standards and shall consider whether any administrative
or judicial appeal is pending. Once the entity has
complied with the reclamation requirement or other
standard concerned an oil or gas lease may be issued to
such entity under this Act.
``(D) Limitation on bonds.--A bond, surety, or
other financial arrangement described in subparagraph
(A) shall not be adequate if it is less than--
``(i) $50,000 in the case of an arrangement
for an individual surface-disturbing activity
of an entity;
``(ii) $250,000 in the case of an
arrangement for all surface-disturbing
activities of an entity in a State; or
``(iii) $1,000,000 in the case of an
arrangement for all surface-disturbing
activities of an entity in the United States.
``(E) Adjustments for inflation.--In the
application of subparagraph (B), the Secretaries
concerned shall jointly at least once every three years
adjust the dollar amounts in subparagraph (B) to
account for inflation based on the Consumer Price Index
for all urban consumer published by the Department of
Labor.
``(5) Standards.--The Secretary of the Interior and the
Secretary of Agriculture shall, by regulation, establish
uniform standards for all Interim and Final Reclamation Plans.
The goal of such plans shall be the restoration of the affected
ecosystem to a condition approximating or equal to that which
existed prior to the surface disturbance. Such standards shall
include restoration of natural vegetation and hydrology,
habitat restoration, salvage, storage and reuse of topsoils,
erosion control, control of invasive species and noxious weeds
and natural contouring.
``(6) Monitoring.--The Secretary concerned shall not
approve final abandonment and shall not release any bond
required by this Act until the standards and requirement for
final reclamation established pursuant to this Act have been
met.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
Referred to the Subcommittee on Energy and Mineral Resources.
Subcommittee Hearings Held.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line