II 

116TH CONGRESS 

2D SESSION S. 4642 

To amend the Mineral Leasing Act to ensure sufficient bonding and complete 

and timely reclamation of land and water disturbed by Federal and 

Indian oil and gas production, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2020 

Mr. BENNET introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To amend the Mineral Leasing Act to ensure sufficient bonding and complete and timely reclamation of land and 

water disturbed by Federal and Indian oil and gas production, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Oil and Gas Bonding Reform and Orphaned Well Reme6 diation Act’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—ORPHANED WELL REMEDIATION 

Sec. 101. Orphaned well remediation program. 

TITLE II—FEDERAL ONSHORE OIL AND GAS RECLAMATION 

BONDING PROGRAM 

Sec. 201. Declaration of policy. 

Sec. 202. Regulation of surface-disturbing activities. 

TITLE III—MISCELLANEOUS 

Sec. 301. Cost recovery. 

Sec. 302. Regulations. 

1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) according to the Interstate Oil and Gas 

4 Compact Commission, there are in existence not 

5 fewer than 56,600 orphaned well sites, and as many 

6 as 746,000 undocumented orphaned well sites, 

7 across the United States on Federal, State, Tribal, 

8 and private land; 

9 (2)(A) orphaned well sites— 

10 (i) pose significant public health, safety, 

11 and environmental risks; and 

12 (ii) should be remediated; but 

13 (B) there are no identified responsible parties 

14 to provide for the remediation of those sites; 

15 (3) it is reasonable for the Federal Govern16 ment— 

17 (A) to provide financial resources to States 

18 and Indian Tribes to rectify the long-term pubVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 lic health, safety, and environmental risks de2 scribed in paragraph (2)(A)(i); 

3 (B) to support the creation of jobs relating 

4 to the remediation and reclamation of orphaned 

5 well sites; and 

6 (C) to update policies to ensure that wells 

7 are not orphaned in the future; 

8 (4) under the Mineral Leasing Act (30 U.S.C. 

9 181 et seq.), the Secretary of the Interior (referred 

10 to in this Act as the ‘‘Secretary’’) is required— 

11 (A) to ensure the complete and timely rec12 lamation of all Federal onshore oil and gas 

13 lease tracts; and 

14 (B) to secure financial assurances in the 

15 form of bonds, sureties, or other approved fi16 nancial arrangements for remediation, reclama17 tion, and well closure; 

18 (5) with respect to the Federal onshore oil and 

19 gas leasing program, the Secretary— 

20 (A) is required— 

21 (i) regularly to review existing onshore 

22 oil and gas financial assurances; and 

23 (ii) to increase the amount of those 

24 assurances, as necessary; but 


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1 (B) in practice, often fails to carry out the 

2 activities described in subparagraph (A); 

3 (6) the Secretary— 

4 (A) implements well and financial assur5 ance adequacy review policies inconsistently 

6 across field offices of the Department of the In7 terior; 

8 (B) has failed to track systematically data 

9 relating to potential liabilities and the adequacy 

10 of financial assurances; and 

11 (C) does not maintain information relating 

12 to actual reclamation costs incurred for inac13 tive, orphaned, or inadequately reclaimed wells 

14 and lease tracts; 

15 (7) due to the shortcomings in the required 

16 minimum financial assurance amounts and the inef17 fectiveness of the Secretary in tracking and review18 ing those financial assurances, the cost of reclaiming 

19 existing Federal onshore oil and gas wells and lease 

20 tracts far exceeds the amounts posted as financial 

21 assurance; and 

22 (8) the inadequacy of the Secretary in the ad23 ministration of financial assurances for Federal on24 shore oil and gas activities— 


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1 (A) poses a threat to land, water, and 

2 other resources; and 

3 (B) is a major financial liability to the tax4 payers of the United States, who are often re5 sponsible for the costs of reclaiming onshore oil 

6 and gas wells and lease tracts that are inactive, 

7 orphaned, or inadequately reclaimed by lessees. 

8 TITLE I—ORPHANED WELL 

9 REMEDIATION 

10 SEC. 101. ORPHANED WELL REMEDIATION PROGRAM. 

11 (a) IN GENERAL.—Section 17 of the Mineral Leasing 

12 Act (30 U.S.C. 226) is amended by adding at the end the 

13 following: 

14 ‘‘(q) ORPHANED WELL REMEDIATION PROGRAM.— 

15 ‘‘(1) DEFINITIONS.—In this subsection: 

16 ‘‘(A) INACTIVE.—The term ‘inactive’, with 

17 respect to a well under an oil or gas lease 

18 issued under this Act, has the meaning given 

19 the term in subsection (g)(1). 

20 ‘‘(B) ORPHANED.—The term ‘orphaned’, 

21 with respect to a well or well site under an oil 

22 or gas lease issued under this Act, means that 

23 the owner or operator of the well or well site— 

24 ‘‘(i) cannot be located; or 


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1 ‘‘(ii) is unable to plug and abandon 

2 the well. 

3 ‘‘(C) RESPONSIBLE PARTY.—The term ‘re4 sponsible party’, with respect to a well under a 

5 lease issued under this Act, has the meaning 

6 given the term in subsection (g)(1). 

7 ‘‘(D) SECRETARY.—The term ‘Secretary’ 

8 means the Secretary of the Interior. 

9 ‘‘(2) ESTABLISHMENT.—Not later than 90 days 

10 after the date of enactment of this subsection, the 

11 Secretary shall establish, in accordance with this 

12 subsection— 

13 ‘‘(A) in cooperation with the Secretary of 

14 Agriculture, a program to remediate, reclaim, 

15 and close orphaned oil and gas wells and well 

16 sites located on land administered by the land 

17 management agencies of the Department of the 

18 Interior and the Department of Agriculture, re19 spectively; and 

20 ‘‘(B) a program under which the Secretary 

21 shall distribute 75 percent of the amounts made 

22 available under paragraph (9) to States and In23 dian tribes that have submitted to the Secretary 

24 an application to remediate, reclaim, and close 

25 orphaned oil and gas wells and well sites on 


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1 land under the jurisdiction of the States and 

2 Indian tribes. 

3 ‘‘(3) ACTIVITIES.—The programs established 

4 under paragraph (2) shall— 

5 ‘‘(A) use existing and updated inventories 

6 of orphaned well sites to establish priority for 

7 the distribution of funds under the programs 

8 for activities, including— 

9 ‘‘(i) remediating, reclaiming, and clos10 ing orphaned wells and well sites; 

11 ‘‘(ii) remediating and reclaiming re12 lated well pads; 

13 ‘‘(iii) reclaiming related access roads; 

14 and 

15 ‘‘(iv) restoring land, water, and habi16 tat impacted by orphaned wells and the 

17 prior operation of the wells; 

18 ‘‘(B) provide a public accounting of the 

19 costs of remediation, reclamation, and closure 

20 for each applicable orphaned oil or gas well and 

21 well site; and 

22 ‘‘(C) after remediation, reclamation, and 

23 closure of an orphaned well or well site, seek— 

24 ‘‘(i) to determine the identity, if un25 known, of any potential responsible party 


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1 associated with the orphaned well or well 

2 site, or a surety or guarantor of such a re3 sponsible party, to the extent such infor4 mation can be ascertained; and 

5 ‘‘(ii) to obtain from responsible par6 ties reimbursement for applicable expendi7 tures, to the maximum extent practicable. 

8 ‘‘(4) COOPERATION AND CONSULTATION.—In 

9 carrying out the programs established under para10 graph (2), the Secretary shall— 

11 ‘‘(A) work cooperatively with— 

12 ‘‘(i) the Secretary of Agriculture; and 

13 ‘‘(ii) each State, local government, 

14 and Indian tribe within the jurisdiction of 

15 which an orphaned well site on Federal 

16 land is located; and 

17 ‘‘(B) consult with— 

18 ‘‘(i) affected States, local govern19 ments, and Indian tribes; 

20 ‘‘(ii) the Secretary of Energy; and 

21 ‘‘(iii) the Interstate Oil and Gas Com22 pact Commission. 

23 ‘‘(5) REPORT TO CONGRESS.—Not later than 1 

24 year after the date of enactment of this subsection, 

25 and not less frequently than once every 2 years 


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1 thereafter, the Secretary, in cooperation with the 

2 Secretary of Agriculture and in consultation with af3 fected States and Indian tribes, shall submit to Con4 gress a report describing the expenditures under, 

5 and the progress and achievements of, the programs 

6 established under paragraph (2). 

7 ‘‘(6) USE OF FUNDS.— 

8 ‘‘(A) INITIAL PERIOD.—For the first 2 fis9 cal years beginning after the date of enactment 

10 of this subsection, the funds made available to 

11 remediate, reclaim, and close orphaned wells 

12 and well sites under the program established 

13 under paragraph (2)(B) shall be allocated based 

14 on a demonstration of— 

15 ‘‘(i) identified orphaned wells and well 

16 sites in need of remediation, reclamation, 

17 or closure, with a priority for sites posing 

18 the greatest adverse impacts to— 

19 ‘‘(I) public health and safety; and 

20 ‘‘(II) land, water, and other re21 sources; and 

22 ‘‘(ii) adequate programmatic and ad23 ministrative capacity to expend the funds 

24 in a timely and effective manner. 


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1 ‘‘(B) SUBSEQUENT FISCAL YEARS.—For 

2 the third fiscal year beginning after the date of 

3 enactment of this subsection, and each fiscal 

4 year thereafter, the Secretary shall make funds 

5 available under the program established under 

6 paragraph (2)(B) based on— 

7 ‘‘(i) the factors described in subpara8 graph (A); and 

9 ‘‘(ii) a determination by the Secretary 

10 that an affected State or Indian tribe is— 

11 ‘‘(I) using bonds or other finan12 cial assurances that will fully cover 

13 costs associated with remediating and 

14 reclaiming orphaned oil and gas wells 

15 under the jurisdiction of the State or 

16 Indian tribe; or 

17 ‘‘(II) adopting and using— 

18 ‘‘(aa) bonds described in 

19 subclause (I); or 

20 ‘‘(bb) other financial assur21 ances. 

22 ‘‘(C) UNUSED FUNDS.—In any case in 

23 which the Secretary determines that, for any 

24 fiscal year, a State or Indian tribe cannot effec25 tively use any portion of the funds that otherVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 wise would be made available to the State or 

2 Indian tribe under subparagraph (A) or (B), 

3 the Secretary shall use those funds— 

4 ‘‘(i) to remediate, reclaim, and close 

5 orphaned wells and well sites on land ad6 ministered by the Secretary or the Sec7 retary of Agriculture; 

8 ‘‘(ii) to review and update any inven9 tory of orphaned or inactive wells, includ10 ing wells previously identified as idle or 

11 abandoned, on land described in clause (i); 

12 ‘‘(iii) to carry out subsection 

13 (g)(6)(E); 

14 ‘‘(iv) to carry out paragraph (8); or 

15 ‘‘(v)(I) to determine the identity of 

16 any potential responsible party associated 

17 with an orphaned well or well site, or a 

18 surety or guarantor of such a responsible 

19 party, to the extent such information can 

20 be ascertained; and 

21 ‘‘(II) to obtain from such a respon22 sible party reimbursement for applicable 

23 expenditures, to the maximum extent prac24 ticable. 


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1 ‘‘(7) LIMITATION ON RE-LEASING.—Before con2 ducting any oil or gas development or production 

3 leasing of Federal land that contains a well or well 

4 site that was remediated, reclaimed, or closed pursu5 ant to this Act, the Secretary, or the Secretary of 

6 Agriculture with respect to National Forest System 

7 land, shall determine that— 

8 ‘‘(A) re-leasing and development of the 

9 land will not degrade the restored conditions ac10 complished pursuant to the remediation, rec11 lamation, or closure; 

12 ‘‘(B) the land achieves compliance with all 

13 applicable standards adopted pursuant to sub14 section (g)(5) prior to being re-leased; and 

15 ‘‘(C) the party seeking to re-lease the land 

16 has provided to the Secretary a specific jus17 tification of the reasons why the land should be 

18 re-leased. 

19 ‘‘(8) DATA COLLECTION.— 

20 ‘‘(A) IN GENERAL.—Not later than 2 years 

21 after the date of enactment of this subsection, 

22 the Secretary and the Secretary of Agriculture 

23 shall jointly develop, and make publicly avail24 able, a computer database to provide centralized 

25 data relating to operations, reclamation activiVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 ties, and financial assurances for each oil and 

2 gas lease in effect under this Act. 

3 ‘‘(B) INCLUSIONS.—The database under 

4 subparagraph (A) shall include, with respect to 

5 each lease described in that subparagraph, in6 formation relating to— 

7 ‘‘(i) the number, location, and status 

8 of each well subject to the lease; 

9 ‘‘(ii) the number, location, and status 

10 of each inactive and orphaned well subject 

11 to the lease, and the length of time that 

12 each such well has not been producing; 

13 ‘‘(iii) the names of all responsible par14 ties for each well, including lessees and op15 erators; 

16 ‘‘(iv) whether the lease is part of a 

17 unit; 

18 ‘‘(v) the amount of the financial as19 surance that has been established for the 

20 lease; 

21 ‘‘(vi) the history of financial assur22 ance amounts for the lease, including dates 

23 of review and requested increases; 

24 ‘‘(vii) inspection, violations, and en25 forcement actions taken with respect to the 


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1 lease, including resolution of each violation, 

2 if any; 

3 ‘‘(viii) whether the financial assurance 

4 on the lease has been released; 

5 ‘‘(ix) payment status for royalties, 

6 rents, and fees; and 

7 ‘‘(x) any additional information re8 quired to be collected pursuant to sub9 section (g)(6). 

10 ‘‘(C) NOTIFICATION.—The Secretary 

11 shall— 

12 ‘‘(i) ensure that the database under 

13 subparagraph (A) is made available to 

14 each field office of the Bureau of Land 

15 Management and the Forest Service, as 

16 applicable; and 

17 ‘‘(ii) provide automatic and timely no18 tification, on a lease-by-lease basis, of ap19 plicable requirements and deadlines to re20 view financial assurances and inactive well 

21 status, in accordance with subsection (g). 

22 ‘‘(D) PROVISION OF DATA AT EXPENSE OF

23 LESSEE.— 

24 ‘‘(i) IN GENERAL.—Except as pro25 vided in clause (ii), the Secretary may reVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 quire that data for the database under 

2 subparagraph (A) shall be provided and 

3 entered into the database— 

4 ‘‘(I) by the applicable lessee; and 

5 ‘‘(II) at the expense of the lessee. 

6 ‘‘(ii) INSPECTION AND ENFORCEMENT

7 ACTIONS.—Any relevant data relating to a 

8 Federal inspection or enforcement action 

9 shall be provided and entered into the 

10 database under subparagraph (A) by the 

11 applicable Federal enforcement official. 

12 ‘‘(iii) DATA QUALITY.—The Secretary 

13 shall carry out such activities as the Sec14 retary determines to be necessary to en15 sure the quality of the data included in the 

16 database under subparagraph (A). 

17 ‘‘(9) FUNDING.— 

18 ‘‘(A) IN GENERAL.—Notwithstanding any 

19 other provision of law, from the Federal share 

20 of royalty revenues deposited into the Treasury 

21 pursuant to section 35, the Secretary of the 

22 Treasury shall transfer to the Secretary to 

23 carry out the programs established under para24 graph (2), to remain available until expended— 


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1 ‘‘(i) on October 1, 2020, 

2 $500,000,000; 

3 ‘‘(ii) on October 1, 2021, 

4 $500,000,000; and 

5 ‘‘(iii) on October 1, 2022, and on each 

6 October 1 thereafter through October 1, 

7 2029, $250,000,000. 

8 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

9 Secretary shall be entitled to receive, shall ac10 cept, and shall use to carry out this subsection 

11 the funds transferred under subparagraph (A), 

12 without further appropriation.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 349 of the Energy Policy Act of 

15 2005 (42 U.S.C. 15907) is amended by striking the 

16 section designation and heading and all that follows 

17 through ‘‘Out of any’’ in subsection (i) and inserting 

18 the following: 

19 ‘‘SEC. 349. FEDERALLY DRILLED WELLS. 

20 ‘‘Out of any’’. 

21 (2) The table of contents for the Energy Policy 

22 Act of 2005 (Public Law 109–58; 119 Stat. 596) is 

23 amended by striking the item relating to section 349 

24 and inserting the following: 

‘‘Sec. 349. Federally drilled wells.’’. 


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1 TITLE II—FEDERAL ONSHORE 

2 OIL AND GAS RECLAMATION 

3 BONDING PROGRAM 

4 SEC. 201. DECLARATION OF POLICY. 

5 Congress declares that it is the policy of the United 

6 States that— 

7 (1) pursuant to this title and the amendments 

8 made by this title, the Secretary, and the Secretary 

9 of Agriculture with respect to National Forest Sys10 tem land, should— 

11 (A) require the posting by holders of oil or 

12 gas leases under the Mineral Leasing Act (30 

13 U.S.C. 181 et seq.) or the Mineral Leasing Act 

14 for Acquired Lands (30 U.S.C. 351 et seq.) of 

15 financial assurances that are sufficient to pay 

16 for the actual costs of remediating, reclaiming, 

17 and closing onshore oil and gas wells, well sites, 

18 and lease tracts; and 

19 (B) implement a system of tracking and 

20 reviewing the financial assurances described in 

21 subparagraph (A) that ensures ongoing ade22 quacy and public transparency; 

23 (2) in ensuring robust onshore oil and gas fi24 nancial assurances under paragraph (1), the Sec25 retary and the Secretary of Agriculture will— 


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1 (A) better protect the land, water, and 

2 other resources of the United States; and 

3 (B) reduce the financial risks to taxpayers 

4 of paying for inadequately reclaimed onshore oil 

5 and gas wells and lease tracts; and 

6 (3) in administering this title and the amend7 ments made by this title, the Secretary, and the Sec8 retary of Agriculture with respect to National Forest 

9 System land, should ensure that the actions of the 

10 applicable Secretary— 

11 (A) are in accordance with the goals of 

12 multiple-use management; and 

13 (B) will benefit the fiscal interests of the 

14 United States. 

15 SEC. 202. REGULATION OF SURFACE-DISTURBING ACTIVI16 TIES. 

17 Section 17(g) of the Mineral Leasing Act (30 U.S.C. 

18 226(g)) is amended— 

19 (1) in the sixth sentence— 

20 (A) by striking ‘‘such entity’’ and inserting 

21 ‘‘the responsible party’’; and 

22 (B) by striking ‘‘Once the entity has com23 plied with the’’ and inserting the following: 


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1 ‘‘(C) ISSUANCE OF LEASE AFTER COMPLI2 ANCE.—On compliance by a responsible party 

3 under this paragraph with each’’; 

4 (2) in the fifth sentence, by striking ‘‘Prior to 

5 making such determination with respect to any such 

6 entity the concerned Secretary shall provide such en7 tity with’’ and inserting the following: 

8 ‘‘(B) REQUIREMENT FOR NOTICE AND OP9 PORTUNITY TO COMPLY.—Before making a de10 termination under subparagraph (A) with re11 spect to a responsible party, the Secretary, or 

12 the Secretary of Agriculture with respect to Na13 tional Forest System land, shall provide to the 

14 responsible party’’; 

15 (3) by striking the fourth sentence and insert16 ing the following: 

17 ‘‘(7) FAILURE OR REFUSAL TO COMPLY.— 

18 ‘‘(A) IN GENERAL.—The Secretary, or the 

19 Secretary of Agriculture with respect to Na20 tional Forest System land, shall not issue, or 

21 approve the assignment of, any lease under this 

22 section to a responsible party during any period 

23 in which, as determined by the applicable Sec24 retary, the responsible party has failed or re25 fused to comply in any material respect with a 


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1 reclamation requirement or other standard es2 tablished under this section that is applicable to 

3 any other lease of the responsible party.’’; and 

4 (4) by striking the subsection designation and 

5 all that follows through ‘‘operations on the lease.’’ 

6 and inserting the following: 

7 ‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI8 TIES.— 

9 ‘‘(1) DEFINITIONS.—In this subsection: 

10 ‘‘(A) INACTIVE.—The term ‘inactive’, with 

11 respect to a well or well site under an oil or gas 

12 lease issued under this Act, means the well or 

13 well site is not— 

14 ‘‘(i) currently producing oil or gas, as 

15 applicable, in paying quantities; or 

16 ‘‘(ii) actively aiding in the production 

17 of oil or gas, as applicable, in paying quan18 tities. 

19 ‘‘(B) ORPHANED.—The term ‘orphaned’, 

20 with respect to a well or well site under an oil 

21 or gas lease issued under this Act, has the 

22 meaning given the term in subsection (q)(1). 

23 ‘‘(C) RESPONSIBLE PARTY.— 

24 ‘‘(i) IN GENERAL.—The term ‘respon25 sible party’, with respect to a well or well 


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1 site under an oil or gas lease issued under 

2 this Act, means an individual or entity (in3 cluding a lessee or operator) that is or will 

4 be responsible for— 

5 ‘‘(I) the remediation, reclama6 tion, and closure of the well or well 

7 site; or 

8 ‘‘(II) the payment of financial as9 surance for the well or well site in ac10 cordance with paragraph (4). 

11 ‘‘(ii) INCLUSIONS.—The term ‘respon12 sible party’ includes— 

13 ‘‘(I) an association, corporation, 

14 subsidiary, or affiliate of an individual 

15 or entity described in clause (i); and 

16 ‘‘(II) any person controlled by, or 

17 under common control with, an indi18 vidual or entity described in clause (i). 

19 ‘‘(D) SECRETARY.—The term ‘Secretary’ 

20 means the Secretary of the Interior. 

21 ‘‘(2) REGULATION OF USE AND ACTIVITIES.— 

22 The Secretary, or the Secretary of Agriculture with 

23 respect to National Forest System land, shall— 


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1 ‘‘(A) regulate all use and activities con2 ducted pursuant to any lease for oil or gas 

3 issued under this Act; and 

4 ‘‘(B) determine the remediation, reclama5 tion, well closure, and other activities that the 

6 responsible party shall be required to carry out 

7 in the interest of conservation of land, water, 

8 and surface resources, including resources with 

9 recreation, range, timber, mineral, watershed, 

10 fish or wildlife, natural scenic, scientific, or his11 torical value. 

12 ‘‘(3) RECLAMATION AND OPERATIONS PLAN RE13 QUIRED.— 

14 ‘‘(A) IN GENERAL.—Each application for a 

15 permit to drill submitted for a lease issued 

16 under this Act shall include a plan of operations 

17 for surface use, disturbance, and reclamation 

18 that covers all proposed activities and oper19 ations within the lease area. 

20 ‘‘(B) INCLUSIONS.—Each plan of oper21 ations under subparagraph (A) shall— 

22 ‘‘(i) specify— 

23 ‘‘(I) the location of all relevant 

24 facilities, roads, drill pads, trenches, 

25 and rights-of-way; 


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1 ‘‘(II) details regarding drill pad 

2 construction, methods for contain3 ment, and disposal of waste material; 

4 ‘‘(III) the identification, location, 

5 and condition of any inactive or or6 phaned well sites on land covered by 

7 the lease; and 

8 ‘‘(IV) such other information as 

9 the Secretary, or the Secretary of Ag10 riculture with respect to National 

11 Forest System land, may require; and 

12 ‘‘(ii) include the interim reclamation 

13 plan and final reclamation plan developed 

14 under subparagraph (C). 

15 ‘‘(C) INTERIM AND FINAL RECLAMATION

16 PLANS.— 

17 ‘‘(i) INTERIM RECLAMATION PLAN.— 

18 ‘‘(I) IN GENERAL.—Each appli19 cant for a permit to drill under sub20 paragraph (A) shall develop for sub21 mission with the plan of operations of 

22 the applicant under that subpara23 graph an interim reclamation plan 

24 that specifies the reclamation activi25 ties that the applicant will carry out 


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1 to address the land, water, and re2 sources (including resources with 

3 recreation, range, timber, mineral, wa4 tershed, fish or wildlife, natural sce5 nic, scientific, or historical value) im6 pacted by activities carried out pursu7 ant to the permit to drill that are not 

8 needed for active operations. 

9 ‘‘(II) REQUIREMENT.—The Sec10 retary, or the Secretary of Agriculture 

11 with respect to National Forest Sys12 tem land, shall— 

13 ‘‘(aa) review each interim 

14 reclamation plan submitted under 

15 subclause (I) at regular intervals; 

16 and 

17 ‘‘(bb) as the applicable Sec18 retary determines to be nec19 essary, require the amendment 

20 and reapproval by the applicable 

21 Secretary of the interim reclama22 tion plan. 

23 ‘‘(ii) FINAL RECLAMATION PLAN.— 

24 ‘‘(I) IN GENERAL.—Each appli25 cant for a permit to drill under subVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 paragraph (A) shall develop for sub2 mission with the plan of operations of 

3 the applicant under that subpara4 graph a final reclamation plan that 

5 includes a detailed description of the 

6 reclamation activities the applicant 

7 will carry out prior to final abandon8 ment or cessation of oil and gas oper9 ations with respect to all land, water, 

10 and resources (including resources 

11 with recreation, range, timber, min12 eral, watershed, fish or wildlife, nat13 ural scenic, scientific, or historical 

14 value) impacted by activities carried 

15 out pursuant to the permit to drill. 

16 ‘‘(II) REVIEW AND APPROVAL.— 

17 The Secretary, or the Secretary of Ag18 riculture with respect to National 

19 Forest System land, shall review and 

20 approve a final reclamation plan 

21 under subclause (I) only after deter22 mining that the final reclamation plan 

23 is consistent with the standards pro24 mulgated pursuant to paragraph (5). 


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1 ‘‘(D) ANALYSIS AND APPROVAL RE2 QUIRED.—The Secretary, or the Secretary of 

3 Agriculture with respect to National Forest 

4 System land, shall not grant a permit to drill 

5 under this Act unless the applicable Secretary 

6 has analyzed and approved the plan of oper7 ations submitted with the application for the 

8 permit under subparagraph (A), including the 

9 interim reclamation plan and the final reclama10 tion plan under subparagraph (C). 

11 ‘‘(4) FINANCIAL ASSURANCES.— 

12 ‘‘(A) REQUIREMENT.— 

13 ‘‘(i) IN GENERAL.—The Secretary, or 

14 the Secretary of Agriculture with respect 

15 to National Forest System land, shall pro16 mulgate regulations to require that a fi17 nancial assurance shall be provided by the 

18 lessee prior to the commencement of activi19 ties on any lease issued under this Act to 

20 ensure the complete and timely remedi21 ation and reclamation of any land, water, 

22 or other resources (including resources 

23 with recreation, range, timber, mineral, 

24 watershed, fish or wildlife, natural scenic, 

25 scientific, or historical value) adversely afVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 fected by lease activities and operations 

2 after the abandonment or cessation of oil 

3 and gas operations on the lease. 

4 ‘‘(ii) ELIMINATION OF NATIONWIDE

5 FINANCIAL ASSURANCES.— 

6 ‘‘(I) IN GENERAL.—A lessee may 

7 not provide a financial assurance 

8 under clause (i) on a nationwide basis 

9 for all leases of the lessee in the 

10 United States. 

11 ‘‘(II) REQUIREMENT.—With re12 spect to any nationwide financial as13 surance in effect on the date of enact14 ment of the Oil and Gas Bonding Re15 form and Orphaned Well Remediation 

16 Act, the Secretary, or the Secretary of 

17 Agriculture with respect to National 

18 Forest System land, shall require 

19 that, not later than 1 year after that 

20 date of enactment, the lessee shall 

21 post financial assurances in accord22 ance with this paragraph. 

23 ‘‘(B) FORM.— 

24 ‘‘(i) IN GENERAL.—The financial as25 surance under subparagraph (A) shall be 


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1 provided in the form of a surety, bond, 1 

2 or more letters of credit, 1 or more certifi3 cates of deposit, or cash, subject to the ap4 proval of the Secretary, or the Secretary of 

5 Agriculture with respect to National Forest 

6 System land. 

7 ‘‘(ii) LIMITATION.—Self-bonding shall 

8 not be an acceptable form of financial as9 surance under subparagraph (A). 

10 ‘‘(C) AMOUNT.— 

11 ‘‘(i) IN GENERAL.—Subject to clause 

12 (ii), the amount of a financial assurance 

13 required under this paragraph shall be the 

14 amount determined by the Secretary, or 

15 the Secretary of Agriculture with respect 

16 to National Forest System land, to be suf17 ficient to ensure the complete and timely 

18 remediation and reclamation required 

19 under subparagraph (A)(i) if the work 

20 were to be performed by the applicable 

21 Secretary in the event of forfeiture by the 

22 lessee. 

23 ‘‘(ii) MINIMUM AMOUNTS.— 

24 ‘‘(I) IN GENERAL.—Subject to 

25 subclause (II), the minimum amount 


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1 of a financial assurance required 

2 under this paragraph shall be not less 

3 than— 

4 ‘‘(aa) $75,000, in the case 

5 of a financial assurance for sur6 face-disturbing activities of a re7 sponsible party on an individual 

8 oil or gas lease; or 

9 ‘‘(bb) $200,000, in the case 

10 of a financial assurance for all oil 

11 and gas leases of a responsible 

12 party in a State. 

13 ‘‘(II) ADJUSTMENTS FOR INFLA14 TION.—Not later than 3 years after 

15 the date of enactment of the Oil and 

16 Gas Bonding Reform and Orphaned 

17 Well Remediation Act, and not less 

18 frequently than once every 3 years 

19 thereafter, the Secretary, or the Sec20 retary of Agriculture with respect to 

21 National Forest System land, shall 

22 adjust for inflation the minimum 

23 amounts under items (aa) and (bb) of 

24 subclause (I). 


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1 ‘‘(iii) ADDITIONAL FACTORS.—The 

2 Secretary, or the Secretary of Agriculture 

3 with respect to National Forest System 

4 land, shall establish the level of a financial 

5 assurance required under this paragraph 

6 above the applicable minimum level re7 quired under clause (ii) as the applicable 

8 Secretary determines to be appropriate or 

9 necessary to ensure the complete and time10 ly remediation and reclamation required 

11 under subparagraph (A)(i), after taking 

12 into consideration the following factors: 

13 ‘‘(I) The depth of each relevant 

14 proposed wellbore. 

15 ‘‘(II) The presence of other re16 sources (including resources with 

17 recreation, range, timber, mineral, wa18 tershed, fish or wildlife, natural sce19 nic, scientific, or historical value). 

20 ‘‘(III) The number of wells to be 

21 drilled on the lease. 

22 ‘‘(IV) The number and percent23 age of low-producing and inactive 

24 wells on— 


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1 ‘‘(aa) the applicable lease; 

2 and 

3 ‘‘(bb) any other leases held 

4 by each applicable lessee, oper5 ator, and responsible party. 

6 ‘‘(V) Any current or past viola7 tions by each responsible party. 

8 ‘‘(VI) The anticipated condition 

9 of the applicable well site and the ex10 tent of the remediation and reclama11 tion to be required. 

12 ‘‘(VII) The ability of each re13 sponsible party to fully carry out that 

14 remediation and reclamation. 

15 ‘‘(VIII) Such other factors as the 

16 applicable Secretary determines to be 

17 relevant. 

18 ‘‘(D) REVIEW.— 

19 ‘‘(i) PROSPECTIVE.— 

20 ‘‘(I) IN GENERAL.—With respect 

21 to any financial assurance provided 

22 after the date of enactment of the Oil 

23 and Gas Bonding Reform and Or24 phaned Well Remediation Act, not 

25 less frequently than once every 5 


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1 years, and before the applicable lease 

2 is sold or transferred, the Secretary, 

3 or the Secretary of Agriculture with 

4 respect to National Forest System 

5 land, shall review the financial assur6 ance to determine, after taking into 

7 consideration the factors described in 

8 subparagraph (C)(iii), whether the 

9 amount of the financial assurance is 

10 adequate to ensure the complete and 

11 timely remediation and reclamation 

12 required under subparagraph (A)(i). 

13 ‘‘(II) AUTHORITY TO IN14 CREASE.—If the Secretary, or the 

15 Secretary of Agriculture with respect 

16 to National Forest System land, de17 termines under subclause (I) that the 

18 amount of a financial assurance is not 

19 adequate, the applicable Secretary 

20 shall increase the amount of the fi21 nancial assurance in accordance with 

22 subparagraph (C), including making 

23 an adjustment for inflation, as appro24 priate. 

25 ‘‘(ii) RETROSPECTIVE.— 


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1 ‘‘(I) IN GENERAL.—Not later 

2 than 1 year after the date of enact3 ment of the Oil and Gas Bonding Re4 form and Orphaned Well Remediation 

5 Act, and not less frequently than once 

6 every 5 years thereafter, the Sec7 retary, or the Secretary of Agriculture 

8 with respect to National Forest Sys9 tem land, shall— 

10 ‘‘(aa) review the sufficiency 

11 of each financial assurance pro12 vided before that date of enact13 ment; 

14 ‘‘(bb) determine, after tak15 ing into consideration the factors 

16 described in subparagraph 

17 (C)(iii), whether the amount of 

18 the financial assurance is ade19 quate to ensure the complete and 

20 timely remediation and reclama21 tion required under subparagraph 

22 (A)(i); and 

23 ‘‘(cc) provide to each respon24 sible party a written notice, in25 cluding any relevant findings, reVerDate Sep 11 2014 23:09 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S4642.IS S4642

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1 lating to the determination under 

2 item (bb). 

3 ‘‘(II) AUTHORITY TO IN4 CREASE.—If the Secretary, or the 

5 Secretary of Agriculture with respect 

6 to National Forest System land, de7 termines under subclause (I) that the 

8 amount of a financial assurance is not 

9 adequate, the applicable Secretary 

10 shall increase the amount of the fi11 nancial assurance in accordance with 

12 subparagraph (C), including making 

13 an adjustment for inflation, as appro14 priate. 

15 ‘‘(E) RELEASE.—On request, and after no16 tice and opportunity for public comment, in17 spection by the Secretary, or the Secretary of 

18 Agriculture with respect to National Forest 

19 System land, and consultation with the Admin20 istrator of the Environmental Protection Agen21 cy, the applicable Secretary may release, in 

22 whole or in part, the financial assurance re23 quired for a lease under this paragraph if the 

24 Secretary determines that— 


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1 ‘‘(i) the remediation, reclamation, or 

2 well closure covered by the financial assur3 ance has been completed in accordance 

4 with— 

5 ‘‘(I) subparagraph (A)(i); and 

6 ‘‘(II) the standards established 

7 under paragraph (5); and 

8 ‘‘(ii) all other applicable Federal re9 quirements have been met. 

10 ‘‘(5) STANDARDS.— 

11 ‘‘(A) IN GENERAL.—The Secretary and the 

12 Secretary of Agriculture shall jointly promul13 gate regulations to establish uniform standards 

14 for the complete and timely reclamation of land, 

15 water, and other resources (including resources 

16 with recreation, range, timber, mineral, water17 shed, fish or wildlife, natural scenic, scientific, 

18 or historical value) adversely impacted, directly 

19 or indirectly, by oil and gas activities and oper20 ations (including any prior remediation or rec21 lamation efforts that fail to achieve compliance 

22 with the standards described in subparagraph 

23 (B)) to the condition that existed prior to the 

24 adverse impact, including— 


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1 ‘‘(i) standards for the interim rec2 lamation plans and final reclamation plans 

3 required under paragraph (3)(C); and 

4 ‘‘(ii) timelines for— 

5 ‘‘(I) commencing and completing 

6 the closure of wells and related reme7 diation and reclamation activities; and 

8 ‘‘(II) achieving compliance with 

9 the standards described in subpara10 graph (B). 

11 ‘‘(B) REQUIREMENTS.—The standards 

12 under subparagraph (A) shall include standards 

13 for— 

14 ‘‘(i) the remediation and reclamation 

15 of natural vegetation and hydrology; 

16 ‘‘(ii) habitat restoration; 

17 ‘‘(iii) salvage, storage, and reuse of 

18 topsoils; 

19 ‘‘(iv) erosion control; 

20 ‘‘(v) reclamation of access roads; 

21 ‘‘(vi) control of invasive species and 

22 noxious weeds; and 

23 ‘‘(vii) natural contouring. 

24 ‘‘(6) INACTIVE WELLS.— 


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1 ‘‘(A) IN GENERAL.—Any lessee the lease of 

2 which includes an inactive well (except for a 

3 well with an approved suspension of operations 

4 pursuant to section 39) shall, as soon as prac5 ticable after determining that the well has been 

6 inactive for a period of more than 30 consecu7 tive days— 

8 ‘‘(i) bring the inactive well into— 

9 ‘‘(I) production in paying quan10 tities; or 

11 ‘‘(II) the active aid of production 

12 in paying quantities; 

13 ‘‘(ii) submit to the Secretary, or the 

14 Secretary of Agriculture with respect to 

15 National Forest System land, an applica16 tion for a delay in the remediation, rec17 lamation, and permanent closure of the 

18 well in accordance with this subparagraph; 

19 or 

20 ‘‘(iii) permanently close the well and 

21 complete the timely remediation and rec22 lamation required under paragraphs 

23 (4)(A)(i) and (5). 

24 ‘‘(B) PERIOD OF DELAY.— 


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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii), the Secretary, or the Secretary of Ag3 riculture with respect to National Forest 

4 System land, may approve an application 

5 under subparagraph (A)(ii) for a delay in 

6 the remediation, reclamation, and perma7 nent closure of an inactive well under sub8 paragraph (A) for a period of not more 

9 than 1 year. 

10 ‘‘(ii) EXTENSIONS.— 

11 ‘‘(I) IN GENERAL.—Subject to 

12 subclause (II) and subparagraph (D), 

13 on receipt of application by a lessee 

14 under subparagraph (A)(ii), the Sec15 retary, or the Secretary of Agriculture 

16 with respect to National Forest Sys17 tem land, may approve 1 or more ad18 ditional delays in the remediation, rec19 lamation, and permanent closure of 

20 an inactive well, each of which addi21 tional delays shall be for a period of 

22 not more than 1 year. 

23 ‘‘(II) REQUIREMENT.—Before 

24 approving an application for an addi25 tional delay under subclause (I), the 


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1 Secretary, or the Secretary of Agri2 culture with respect to National For3 est System land, shall— 

4 ‘‘(aa) review the amount of 

5 the financial assurance for the 

6 applicable lease; and 

7 ‘‘(bb) increase the amount 

8 to ensure the complete and time9 ly remediation, reclamation, and 

10 permanent closure required under 

11 paragraph (4)(A)(i) if the work 

12 were to be performed by the ap13 plicable Secretary in the event of 

14 forfeiture by the lessee. 

15 ‘‘(C) APPLICATION REQUIREMENTS.— 

16 ‘‘(i) IN GENERAL.—Each application 

17 of a lessee to delay permanent abandon18 ment and reclamation of a well under sub19 paragraph (A)(ii) or (B)(ii) shall include a 

20 description of— 

21 ‘‘(I) the period of time during 

22 which the well has been inactive; 

23 ‘‘(II) the justification for delay24 ing permanent abandonment and rec25 lamation of the well; 


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1 ‘‘(III) the probable duration of 

2 the delay; 

3 ‘‘(IV) the means by which the 

4 wellbore is to be protected during the 

5 delay; and 

6 ‘‘(V) the contemplated eventual 

7 disposition of the well. 

8 ‘‘(ii) SPECIAL REQUIREMENTS FOR

9 APPLICATIONS FOR EXTENSION.—Each ap10 plication for a delay under subparagraph 

11 (A)(ii) or (B)(ii) shall demonstrate, 

12 through test results, that the applicable 

13 well is— 

14 ‘‘(I) mechanically sound; and 

15 ‘‘(II) capable of— 

16 ‘‘(aa) production in paying 

17 quantities; or 

18 ‘‘(bb) actively aiding in pro19 duction in paying quantities. 

20 ‘‘(D) PROHIBITION.— 

21 ‘‘(i) IN GENERAL.—No well may be 

22 inactive for a period of more than 5 years. 

23 ‘‘(ii) REQUIREMENT.—With respect to 

24 a well under a lease issued under this Act 


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1 that has been inactive for a period of more 

2 than 5 years, the applicable lessee shall— 

3 ‘‘(I)(aa) bring the inactive well 

4 into— 

5 ‘‘(AA) production in paying 

6 quantities; or 

7 ‘‘(BB) the active aid of pro8 duction in paying quantities; and 

9 ‘‘(bb) pay any related royalties, 

10 rentals, or other fees due; or 

11 ‘‘(II)(aa) permanently close the 

12 well; and 

13 ‘‘(bb) complete the timely remedi14 ation and reclamation required under 

15 paragraph (4)(A)(i). 

16 ‘‘(iii) ACTION BY SECRETARY.—In any 

17 case in which a lessee has not carried out 

18 any required action under clause (ii) with 

19 respect to a well described in that clause, 

20 the Secretary, or the Secretary of Agri21 culture with respect to National Forest 

22 System land, shall execute forfeiture of the 

23 financial assurance associated with the 

24 well. 

25 ‘‘(E) INVENTORY.— 


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1 ‘‘(i) IN GENERAL.—Not later than 

2 180 days after the date of enactment of 

3 the Oil and Gas Bonding Reform and Or4 phaned Well Remediation Act, and not less 

5 frequently than annually thereafter, the 

6 Secretary, or the Secretary of Agriculture 

7 with respect to National Forest System 

8 land, shall complete an inventory of all 

9 wells that, as of the date of publication of 

10 the inventory— 

11 ‘‘(I) are inactive or orphaned; or 

12 ‘‘(II) have previously been identi13 fied as idle or abandoned. 

14 ‘‘(ii) INCLUSIONS.—Each inventory 

15 under clause (i) shall identify, with respect 

16 to each inactive or orphaned well— 

17 ‘‘(I) the location of the well; 

18 ‘‘(II) the period of time during 

19 which the well has been inactive or or20 phaned; 

21 ‘‘(III) the responsible parties as22 sociated with the well; and 

23 ‘‘(IV) any financial assurance 

24 provided to remediate and reclaim the 

25 well, including the most recent date 


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1 on which the Secretary reviewed that 

2 financial assurance.’’. 

3 TITLE III—MISCELLANEOUS 

4 SEC. 301. COST RECOVERY. 

5 (a) IN GENERAL.—Section 17 of the Mineral Leasing 

6 Act (30 U.S.C. 226) (as amended by section 101(a)) is 

7 amended by adding at the end the following: 

8 ‘‘(r) COST RECOVERY REQUIREMENTS.— 

9 ‘‘(1) IN GENERAL.—Before approving an appli10 cation for a permit to drill pursuant to a lease 

11 issued under this Act, the Secretary of the Interior, 

12 or the Secretary of Agriculture with respect to Na13 tional Forest System land, shall determine the cost 

14 to the Federal Government of carrying out Federal 

15 inspection and enforcement actions for the lease. 

16 ‘‘(2) FINANCIAL ASSURANCES.—The Secretary 

17 of the Interior, or the Secretary of Agriculture with 

18 respect to National Forest System land, shall not re19 lease the financial assurance established for a lease 

20 under subsection (g)(4)(E) until the applicable lessee 

21 has reimbursed the applicable Secretary for the total 

22 cost of Federal inspection and enforcement actions 

23 on the lease.’’. 

24 (b) USE OF BLM PERMIT PROCESSING IMPROVE25 MENT FUND.—Section 35(c)(3) of the Mineral Leasing 


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1 Act (30 U.S.C. 191(c)(3)) is amended by striking sub2 paragraph (A) and inserting the following: 

3 ‘‘(A) IN GENERAL.—Of the amounts in the 

4 Fund, the Secretary of the Interior, in consulta5 tion with the Secretary of Agriculture, shall 

6 use, without further appropriation or fiscal year 

7 limitation— 

8 ‘‘(i) 50 percent— 

9 ‘‘(I) to carry out the coordination 

10 and review process for— 

11 ‘‘(aa) financial assurances 

12 for oil and gas leases under this 

13 Act; and 

14 ‘‘(bb) bond releases for oil 

15 and gas leases under this Act; 

16 ‘‘(II) to coordinate— 

17 ‘‘(aa) the inventory of wells 

18 that are orphaned (as defined in 

19 subsection (q)(1)) or inactive (as 

20 defined in subsection (g)(1)); and 

21 ‘‘(bb) the processing of re22 quests for delays in the perma23 nent closure of wells that are in24 active (as so defined); and 


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1 ‘‘(III) to coordinate and process 

2 environmental and cultural resource 

3 reviews applicable to oil and gas ac4 tivities under this Act; and 

5 ‘‘(ii) the remaining amounts for the 

6 coordination and processing of oil and gas 

7 use authorizations on onshore Federal and 

8 Indian trust mineral estate land.’’. 

9 SEC. 302. REGULATIONS. 

10 (a) IN GENERAL.—Not later than 1 year after the 

11 date of enactment of this Act, the Secretary and the Sec12 retary of Agriculture shall jointly promulgate regulations 

13 to implement this Act and the amendments made by this 

14 Act. 

15 (b) EFFECT ON FUNDING.—The funds made avail16 able pursuant to subsection (q)(9) of section 17 of the 

17 Mineral Leasing Act (30 U.S.C. 226) (as added by section 

18 101(a)) shall be disbursed and expended in accordance 

19 with applicable interim guidance pending completion of 

20 the rulemaking required under subsection (a). 

Æ 


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