Bonding Reform and Taxpayer Protection Act of 2019

I 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 adjust- ments to the regulation of surface-disturbing activities and to protect taxpayers from unduly bearing the rec- lamation costs of oil and gas development, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be referred to as the ‘‘Bonding Reform 4 and Taxpayer Protection Act of 2019’’. 5 VerDate Sep 11 2014 02:18 Sep 18, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4346.IH H4346 kjohnson on DSK79L0C42 with BILLS 2 •HR 4346 IH SEC. 2. SURFACE DISTURBANCE AND RECLAMATION. 1 Section 17(g) of the Mineral Leasing Act (30 U.S.C. 2 226(g)) is amended to read as follows: 3 ‘‘(g) BONDING REQUIREMENTS.— 4 ‘‘(1) DEFINITIONS.—In this subsection: 5 ‘‘(A) INTERIM RECLAMATION PLAN.—The 6 term ‘Interim Reclamation Plan’ means an on- 7 going plan specifying reclamation steps to be 8 taken on all disturbed areas covered by any 9 lease issued under this Act that are not needed 10 for active operations. 11 ‘‘(B) FINAL RECLAMATION PLAN.—The 12 term ‘Final Reclamation Plan’ means a plan 13 describing all reclamation activity to be con- 14 ducted for all disturbed areas, including loca- 15 tions, facilities, trenches, rights-of-way, roads, 16 and any other surface disturbance covered by a 17 lease issued under this Act prior to final aban- 18 donment. 19 ‘‘(2) IN GENERAL.—The Secretary of the Inte- 20 rior, or with respect to National Forest lands, the 21 Secretary of Agriculture, shall regulate all surface- 22 disturbing activities conducted pursuant to any lease 23 issued under this Act, and shall determine reclama- 24 tion and other actions as required in the interest of 25 conservation of surface resources. 26 VerDate Sep 11 2014 02:18 Sep 18, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4346.IH H4346 kjohnson on DSK79L0C42 with BILLS 3 •HR 4346 IH ‘‘(3) RECLAMATION PLANS REQUIRED.— 1 ‘‘(A) ANALYSIS AND APPROVAL RE- 2 QUIRED.—No permit to drill on an oil and gas 3 lease issued under this Act may be granted 4 without the analysis and approval by the Sec- 5 retary concerned of both an interim reclamation 6 plan and a final reclamation plan covering pro- 7 posed surface-disturbing activities within the 8 lease area. 9 ‘‘(B) PLANS OF OPERATIONS.—All Plans 10 of Operations submitted and approved pursuant 11 to this Act shall include an Interim Reclama- 12 tion Plan. 13 ‘‘(C) SECRETARIAL REVIEW.—The relevant 14 Secretary shall review each Interim Reclama- 15 tion Plan at regular intervals and shall require 16 such plans to be amended as warranted, subject 17 to the approval of such Secretary. 18 ‘‘(4) BONDING.— 19 ‘‘(A) IN GENERAL.—The Secretary con- 20 cerned shall, by regulation, require that an ade- 21 quate bond, surety, or other financial arrange- 22 ment will be established prior to the commence- 23 ment of surface-disturbing activities on any 24 lease, to ensure the complete and timely rec- 25 VerDate Sep 11 2014 02:18 Sep 18, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4346.IH H4346 kjohnson on DSK79L0C42 with BILLS 4 •HR 4346 IH lamation of the lease tract, and the restoration 1 of any lands or surface waters adversely af- 2 fected by lease operations after the abandon- 3 ment or cessation of oil and gas operations on 4 the lease. 5 ‘‘(B) PROHIBITION.—The Secretary shall 6 not issue or approve the assignment of any 7 lease under the terms of this section to any per- 8 son, association, corporation, or any subsidiary, 9 affiliate, or person controlled by or under com- 10 mon control with such person, association, or 11 corporation, during any period in which, as de- 12 termined by the relevant Secretary, such entity 13 has failed or refused to comply in any material 14 respect with the reclamation requirements and 15 other standards established under this section 16 for any prior lease to which such requirements 17 and standards applied. 18 ‘‘(C) NOTICE AND OPPORTUNITY FOR COM- 19 PLIANCE.—Prior to making such determination 20 with respect to any such entity the concerned 21 Secretary shall provide such entity with ade- 22 quate notification and an opportunity to comply 23 with such reclamation requirements and other 24 standards and shall consider whether any ad- 25 VerDate Sep 11 2014 02:18 Sep 18, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4346.IH H4346 kjohnson on DSK79L0C42 with BILLS 5 •HR 4346 IH ministrative or judicial appeal is pending. Once 1 the entity has complied with the reclamation re- 2 quirement or other standard concerned an oil or 3 gas lease may be issued to such entity under 4 this Act. 5 ‘‘(D) LIMITATION ON BONDS.—A bond, 6 surety, or other financial arrangement described 7 in subparagraph (A) shall not be adequate if it 8 is less than— 9 ‘‘(i) $50,000 in the case of an ar- 10 rangement for an individual surface-dis- 11 turbing activity of an entity; 12 ‘‘(ii) $250,000 in the case of an ar- 13 rangement for all surface-disturbing activi- 14 ties of an entity in a State; or 15 ‘‘(iii) $1,000,000 in the case of an ar- 16 rangement for all surface-disturbing activi- 17 ties of an entity in the United States. 18 ‘‘(E) ADJUSTMENTS FOR INFLATION.—In 19 the application of subparagraph (B), the Secre- 20 taries concerned shall jointly at least once every 21 three years adjust the dollar amounts in sub- 22 paragraph (B) to account for inflation based on 23 the Consumer Price Index for all urban con- 24 sumer published by the Department of Labor. 25 VerDate Sep 11 2014 02:18 Sep 18, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4346.IH H4346 kjohnson on DSK79L0C42 with BILLS 6 •HR 4346 IH ‘‘(5) STANDARDS.—The Secretary of the Inte- 1 rior and the Secretary of Agriculture shall, by regu- 2 lation, establish uniform standards for all Interim 3 and Final Reclamation Plans. The goal of such 4 plans shall be the restoration of the affected eco- 5 system to a condition approximating or equal to that 6 which existed prior to the surface disturbance. Such 7 standards shall include restoration of natural vegeta- 8 tion and hydrology, habitat restoration, salvage, 9 storage and reuse of topsoils, erosion control, control 10 of invasive species and noxious weeds and natural 11 contouring. 12 ‘‘(6) MONITORING.—The Secretary concerned 13 shall not approve final abandonment and shall not 14 release any bond required by this Act until the 15 standards and requirement for final reclamation es- 16 tablished pursuant to this Act have been met.’’. 17 Æ VerDate Sep 11 2014 02:18 Sep 18, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H4346.IH H4346 kjohnson on DSK79L0C42 with BILLS