II 

117TH CONGRESS 

1ST SESSION S. 2177 

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 

JUNE 22, 2021 

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) as of April 2021, there are at least 14,400 

10 orphaned wells on Federal land, according to the 

11 Department of the Interior; 

12 (3)(A) orphaned well sites— 

13 (i) pose significant public health, safety, 

14 and environmental risks; and 

15 (ii) should be remediated; but 

16 (B) there are no identified responsible parties 

17 to provide for the remediation of those sites; 


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1 (4) it is reasonable for the Federal Govern2 ment— 

3 (A) to provide financial resources to States 

4 and Indian Tribes to rectify the long-term pub5 lic health, safety, and environmental risks de6 scribed in paragraph (3)(A)(i); 

7 (B) to support the creation of jobs relating 

8 to the remediation and reclamation of orphaned 

9 well sites; and 

10 (C) to update policies to ensure that wells 

11 are not orphaned in the future; 

12 (5) under the Mineral Leasing Act (30 U.S.C. 

13 181 et seq.), the Secretary of the Interior (referred 

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

15 (A) to ensure the complete and timely rec16 lamation of all Federal onshore oil and gas 

17 leases; and 

18 (B) to secure financial assurances in the 

19 form of bonds, sureties, or other approved fi20 nancial arrangements for remediation, reclama21 tion, and well closure; 

22 (6) with respect to the Federal onshore oil and 

23 gas leasing program, the Secretary— 

24 (A) is required— 


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1 (i) regularly to review existing onshore 

2 oil and gas financial assurances; and 

3 (ii) to increase the amount of those 

4 assurances, as necessary; but 

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

6 activities described in subparagraph (A); 

7 (7) the Secretary— 

8 (A) implements well and financial assur9 ance adequacy review policies inconsistently 

10 across field offices of the Department of the In11 terior; 

12 (B) has failed to track systematically data 

13 relating to potential liabilities and the adequacy 

14 of financial assurances; and 

15 (C) does not maintain information relating 

16 to actual reclamation costs incurred for inac17 tive, orphaned, or inadequately reclaimed wells 

18 and leases; 

19 (8) due to the shortcomings in the required 

20 minimum financial assurance amounts and the inef21 fectiveness of the Secretary in tracking and review22 ing those financial assurances, the cost of reclaiming 

23 existing Federal onshore oil and gas wells and leases 

24 far exceeds the amounts posted as financial assur25 ance; and 


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1 (9) the inadequacy of the Secretary in the ad2 ministration of financial assurances for Federal on3 shore oil and gas activities— 

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

5 other resources; and 

6 (B) is a major financial liability to the tax7 payers of the United States, who are often re8 sponsible for the costs of reclaiming onshore oil 

9 and gas wells and leases that are inactive, or10 phaned, or inadequately reclaimed by lessees. 

11 TITLE I—ORPHANED WELL 

12 REMEDIATION 

13 SEC. 101. ORPHANED WELL REMEDIATION PROGRAM. 

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

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

16 following: 

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

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

19 ‘‘(A) ABANDON.—The term ‘abandon’, 

20 with respect to a well under an oil or gas lease 

21 issued under this Act, means— 

22 ‘‘(i) to plug the well; 

23 ‘‘(ii) to remove all installations associ24 ated with the well; and 


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1 ‘‘(iii) to terminate operations for pro2 duction from the well. 

3 ‘‘(B) INACTIVE.—The term ‘inactive’, with 

4 respect to a well or facility under an oil or gas 

5 lease issued under this Act, means that the well 

6 or facility does not— 

7 ‘‘(i) produce oil or gas, as applicable, 

8 in paying quantities; or 

9 ‘‘(ii) actively aid in the production of 

10 oil or gas, as applicable, in paying quan11 tities. 

12 ‘‘(C) OPERATOR.—The term ‘operator’, 

13 with respect to an oil or gas operation, means 

14 any individual or entity (including a lessee or 

15 operating rights owner) that has provided to a 

16 relevant authority a written statement that the 

17 individual or entity is responsible for the oper18 ation (or any portion of the operation). 

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

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

21 or gas lease issued under this Act, means that 

22 the responsible party of the well or well site— 

23 ‘‘(i) cannot be located; or 


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1 ‘‘(ii) cannot provide adequate financial 

2 assurance to permanently plug and reclaim 

3 the well or well site. 

4 ‘‘(E) RESPONSIBLE PARTY.— 

5 ‘‘(i) IN GENERAL.—The term ‘respon6 sible party’, with respect to a well or well 

7 site under an oil or gas lease issued under 

8 this Act, means an individual or entity (in9 cluding a lessee or operator) that is or will 

10 be responsible for— 

11 ‘‘(I) the remediation, reclama12 tion, and permanent plugging of the 

13 well or well site; or 

14 ‘‘(II) the payment of financial as15 surance for the well or well site in ac16 cordance with subsection (g)(4). 

17 ‘‘(ii) INCLUSIONS.—The term ‘respon18 sible party’ includes— 

19 ‘‘(I) an association, corporation, 

20 subsidiary, or affiliate of an individual 

21 or entity described in clause (i); and 

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

23 under common control with, an indi24 vidual or entity described in clause (i). 


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1 ‘‘(F) SECRETARY.—The term ‘Secretary’ 

2 means the Secretary of the Interior. 

3 ‘‘(2) ESTABLISHMENT.—Not later than 180 

4 days after the date of enactment of this subsection, 

5 the Secretary shall establish, in accordance with this 

6 subsection— 

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

8 Agriculture, a program to remediate, reclaim, 

9 and permanently plug orphaned oil and gas 

10 wells and well sites located on land adminis11 tered by the land management agencies of the 

12 Department of the Interior and the Department 

13 of Agriculture, respectively; and 

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

15 shall distribute 75 percent of the amounts made 

16 available under paragraph (9) to States and In17 dian tribes that have submitted to the Secretary 

18 an application to remediate, reclaim, and close 

19 orphaned oil and gas wells and well sites on 

20 land under the jurisdiction of the States and 

21 Indian tribes. 

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

23 under paragraph (2) shall— 

24 ‘‘(A) use existing and updated inventories 

25 of orphaned well sites to establish priority for 


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1 the distribution of funds under the programs 

2 for activities, including— 

3 ‘‘(i) remediating, reclaiming, and per4 manently plugging orphaned wells and well 

5 sites; 

6 ‘‘(ii) remediating and reclaiming re7 lated well pads; 

8 ‘‘(iii) reclaiming related access roads; 

9 and 

10 ‘‘(iv) restoring land, water, and habi11 tat impacted by orphaned wells and the 

12 prior operation of the wells; 

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

14 costs of remediation, reclamation, and perma15 nent plugging for each applicable orphaned oil 

16 or gas well and well site; 

17 ‘‘(C) seek to determine the identity, if un18 known, of any potential responsible party asso19 ciated with the orphaned well or well site, or a 

20 surety or guarantor of such a responsible party, 

21 to the extent such information can be 

22 ascertained; and 

23 ‘‘(D) seek to obtain from responsible par24 ties reimbursement for applicable expenditures, 

25 to the maximum extent practicable. 


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

2 carrying out the programs established under para3 graph (2), the Secretary shall— 

4 ‘‘(A) work cooperatively with— 

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

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

7 and Indian tribe within the jurisdiction of 

8 which an orphaned well site on Federal 

9 land is located; and 

10 ‘‘(B) consult with— 

11 ‘‘(i) affected States, local govern12 ments, and Indian tribes; 

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

14 ‘‘(iii) the Interstate Oil and Gas Com15 pact Commission. 

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

17 year after the date of enactment of this subsection, 

18 and not less frequently than once every 2 years 

19 thereafter, the Secretary, in cooperation with the 

20 Secretary of Agriculture and in consultation with af21 fected States and Indian tribes, shall submit to Con22 gress a report describing the expenditures under, 

23 and the progress and achievements of, the programs 

24 established under paragraph (2). 

25 ‘‘(6) USE OF FUNDS.— 


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1 ‘‘(A) INITIAL PERIOD.—For the first 2 fis2 cal years beginning after the date of enactment 

3 of this subsection, the funds made available to 

4 remediate, reclaim, and permanently plug or5 phaned wells and well sites under the program 

6 established under paragraph (2)(B) shall be al7 located based on a demonstration of— 

8 ‘‘(i) identified orphaned wells and well 

9 sites in need of remediation, reclamation, 

10 or permanent plugging, with a priority for 

11 sites posing the greatest adverse impacts 

12 to— 

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

14 ‘‘(II) land, water, and other re15 sources; and 

16 ‘‘(ii) adequate programmatic and ad17 ministrative capacity to expend the funds 

18 in a timely and effective manner. 

19 ‘‘(B) SUBSEQUENT FISCAL YEARS.—For 

20 the third fiscal year beginning after the date of 

21 enactment of this subsection, and each fiscal 

22 year thereafter, the Secretary shall make funds 

23 available under the program established under 

24 paragraph (2)(B) based on— 


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1 ‘‘(i) the factors described in subpara2 graph (A); and 

3 ‘‘(ii) a determination by the Secretary 

4 that an affected State or Indian tribe is— 

5 ‘‘(I) using bonds or other finan6 cial assurances that will fully cover 

7 costs associated with remediating and 

8 reclaiming orphaned oil and gas wells 

9 under the jurisdiction of the State or 

10 Indian tribe; or 

11 ‘‘(II) adopting and using— 

12 ‘‘(aa) bonds described in 

13 subclause (I); or 

14 ‘‘(bb) other financial assur15 ances. 

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

17 which the Secretary determines that, for any 

18 fiscal year, a State or Indian tribe cannot effec19 tively use any portion of the funds that other20 wise would be made available to the State or 

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

22 the Secretary shall use those funds— 

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

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1 ministered by the Secretary or the Sec2 retary of Agriculture; 

3 ‘‘(ii) to review and update any inven4 tory of orphaned or inactive wells, includ5 ing wells previously identified as idle or 

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

7 ‘‘(iii) to carry out subsection 

8 (g)(6)(E); 

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

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

11 any potential responsible party associated 

12 with an inactive well or well site, or a sur13 ety or guarantor of such a responsible 

14 party, to the extent such information can 

15 be ascertained; and 

16 ‘‘(II) to obtain from such a respon17 sible party reimbursement for applicable 

18 expenditures, to the maximum extent prac19 ticable. 

20 ‘‘(7) LIMITATION ON RE-LEASING.—Before con21 ducting any oil and gas leasing of Federal land that 

22 contains a well or well site that was remediated, re23 claimed, or permanently plugged pursuant to this 

24 Act, the Secretary, or the Secretary of Agriculture 

25 with respect to National Forest System land, shall— 


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1 ‘‘(A) determine that— 

2 ‘‘(i) re-leasing and development of the 

3 land will not degrade the restored condi4 tions accomplished pursuant to the remedi5 ation, reclamation, or closure; and 

6 ‘‘(ii) the land achieves compliance 

7 with all applicable standards adopted pur8 suant to subsection (g)(5) prior to being 

9 re-leased; and 

10 ‘‘(B) on making a positive determination 

11 pursuant to clauses (i) and (ii) of subparagraph 

12 (A), require the operator to provide to the ap13 plicable Secretary a bond or other financial as14 surance that will fully cover the costs associated 

15 with the plugging and reclamation. 

16 ‘‘(8) DATA COLLECTION.— 

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

18 after the date of enactment of this subsection, 

19 the Secretary and the Secretary of Agriculture 

20 shall jointly develop, and make publicly avail21 able, a computer database to provide centralized 

22 data relating to operations, reclamation activi23 ties, and financial assurances for each oil and 

24 gas lease in effect under this Act. 


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

2 subparagraph (A) shall include, with respect to 

3 each lease described in that subparagraph, in4 formation relating to— 

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

6 of each well subject to the lease; 

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

8 of each inactive and orphaned well subject 

9 to the lease, and the length of time that 

10 each such well has not been producing; 

11 ‘‘(iii) the names of all responsible par12 ties for each well, including lessees and op13 erators; 

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

15 unit; 

16 ‘‘(v) the amount of the financial as17 surance that has been established for the 

18 lease; 

19 ‘‘(vi) the history of financial assur20 ance amounts for the lease, including dates 

21 of review and requested increases; 

22 ‘‘(vii) inspection, violations, and en23 forcement actions taken with respect to the 

24 lease, including resolution of each violation, 

25 if any; 


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1 ‘‘(viii) whether the period of liability 

2 of the financial assurance on the lease has 

3 been terminated; 

4 ‘‘(ix) payment status for royalties, 

5 rents, and fees; and 

6 ‘‘(x) any additional information re7 quired to be collected pursuant to sub8 section (g)(6). 

9 ‘‘(C) NOTIFICATION.—The Secretary 

10 shall— 

11 ‘‘(i) ensure that the database under 

12 subparagraph (A) is made available to 

13 each field office of the Bureau of Land 

14 Management and the Forest Service, as 

15 applicable; and 

16 ‘‘(ii) provide automatic and timely no17 tification, on a lease-by-lease basis, of ap18 plicable requirements and deadlines to re19 view financial assurances and inactive well 

20 status, in accordance with subsection (g). 

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

22 LESSEE.— 

23 ‘‘(i) IN GENERAL.—Except as pro24 vided in clause (ii), the Secretary may re25 quire that data for the database under 


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1 subparagraph (A) shall be provided and 

2 entered into the database— 

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

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

5 ‘‘(ii) INSPECTION AND ENFORCEMENT

6 ACTIONS.—Any relevant data relating to a 

7 Federal inspection or enforcement action 

8 shall be provided and entered into the 

9 database under subparagraph (A) by the 

10 applicable Federal enforcement official. 

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

12 shall carry out such activities as the Sec13 retary determines to be necessary to en14 sure the quality of the data included in the 

15 database under subparagraph (A). 

16 ‘‘(9) FUNDING.— 

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

18 other provision of law, from the Federal share 

19 of royalty revenues deposited into the Treasury 

20 pursuant to section 35, the Secretary of the 

21 Treasury shall transfer to the Secretary to 

22 carry out the programs established under para23 graph (2), to remain available until expended— 

24 ‘‘(i) on October 1, 2021, 

25 $1,500,000,000; 


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1 ‘‘(ii) on October 1, 2022, 

2 $1,500,000,000; and 

3 ‘‘(iii) on October 1, 2023, and on each 

4 October 1 thereafter through October 1, 

5 2030, $625,000,000. 

6 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

7 Secretary shall be entitled to receive, shall ac8 cept, and shall use to carry out this subsection 

9 the funds transferred under subparagraph (A), 

10 without further appropriation.’’. 

11 (b) CONFORMING AMENDMENTS.— 

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

13 2005 (42 U.S.C. 15907) is amended by striking the 

14 section designation and heading and all that follows 

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

16 the following: 

17 ‘‘SEC. 349. WELLS DRILLED INTO FEDERALLY MANAGED 

18 MINERAL ESTATE. 

19 ‘‘Out of any’’. 

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

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

22 amended by striking the item relating to section 349 

23 and inserting the following: 

‘‘Sec. 349. Wells drilled into federally managed mineral estate.’’. 


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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 permanently plugging onshore oil and gas 

18 wells, well sites, 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 leases; 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, or to the operator or 

22 other entity on behalf of which the responsible 

23 party acted’’; and 

24 (B) by striking ‘‘Once the entity has com25 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 any operator or other entity or respon12 sible party, the Secretary shall provide to the 

13 operator, entity, or responsible party’’; 

14 (3) by striking the fourth sentence and insert15 ing the following: 

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

17 ‘‘(A) IN GENERAL.—The Secretary shall 

18 not issue, or approve the assignment of, any 

19 lease under this section to any operator, other 

20 entity, or responsible party during any period in 

21 which, as determined by the Secretary, the op22 erator, entity, or responsible party has failed or 

23 refused to comply in any material respect with 

24 a reclamation requirement or other standard es25 tablished under this section that is applicable to 


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1 any other lease of the operator, entity, or re2 sponsible party.’’; and 

3 (4) by striking the subsection designation and 

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

5 and inserting the following: 

6 ‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI7 TIES.— 

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

9 ‘‘(A) ABANDON.—The term ‘abandon’, 

10 with respect to a well under an oil or gas lease 

11 issued under this Act, means— 

12 ‘‘(i) to plug the well; 

13 ‘‘(ii) to remove all installations associ14 ated with the well; and 

15 ‘‘(iii) to terminate operations for pro16 duction from the well. 

17 ‘‘(B) INACTIVE.—The term ‘inactive’, with 

18 respect to a well or facility under an oil or gas 

19 lease issued under this Act, means that the well 

20 or facility does not— 

21 ‘‘(i) produce oil or gas, as applicable, 

22 in paying quantities; or 

23 ‘‘(ii) actively aid in the production of 

24 oil or gas, as applicable, in paying quan25 tities. 


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1 ‘‘(C) OPERATOR.—The term ‘operator’, 

2 with respect to an oil or gas operation, means 

3 any individual or entity (including a lessee or 

4 operating rights owner) that has provided to a 

5 relevant authority a written statement that the 

6 individual or entity is responsible for the oper7 ation (or any portion of the operation). 

8 ‘‘(D) ORPHANED.—The term ‘orphaned’, 

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

10 or gas lease issued under this Act, means that 

11 the responsible party of the well or well site— 

12 ‘‘(i) cannot be located; or 

13 ‘‘(ii) cannot provide adequate financial 

14 assurance to permanently plug and reclaim 

15 the well or well site. 

16 ‘‘(E) RESPONSIBLE PARTY.— 

17 ‘‘(i) IN GENERAL.—The term ‘respon18 sible party’, with respect to a well or well 

19 site under an oil or gas lease issued under 

20 this Act, means an individual or entity (in21 cluding a lessee or operator) that is or will 

22 be responsible for— 

23 ‘‘(I) the remediation, reclama24 tion, and permanent plugging of the 

25 well or well site; or 


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1 ‘‘(II) the payment of financial as2 surance for the well or well site in ac3 cordance with paragraph (4). 

4 ‘‘(ii) INCLUSIONS.—The term ‘respon5 sible party’ includes— 

6 ‘‘(I) an association, corporation, 

7 subsidiary, or affiliate of an individual 

8 or entity described in clause (i); and 

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

10 under common control with, an indi11 vidual or entity described in clause (i). 

12 ‘‘(F) SECRETARY.—The term ‘Secretary’ 

13 means the Secretary of the Interior. 

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

15 The Secretary, or the Secretary of Agriculture with 

16 respect to National Forest System land, shall— 

17 ‘‘(A) regulate all use and activities con18 ducted pursuant to any lease for oil or gas 

19 issued under this Act; and 

20 ‘‘(B) determine the remediation, reclama21 tion, permanent plugging, and other activities 

22 that the responsible party shall be required to 

23 carry out in the interest of conservation of land, 

24 water, and surface resources, including re25 sources with recreation, range, timber, mineral, 


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1 watershed, fish or wildlife, natural scenic, sci2 entific, or historical value. 

3 ‘‘(3) RECLAMATION AND OPERATIONS PLAN RE4 QUIRED.— 

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

6 permit to drill submitted for a lease issued 

7 under this Act shall include a plan of operations 

8 for surface use, disturbance, and reclamation 

9 that covers all proposed activities and oper10 ations within the lease area. 

11 ‘‘(B) INCLUSIONS.—Each plan of oper12 ations under subparagraph (A) shall— 

13 ‘‘(i) specify— 

14 ‘‘(I) the location of all relevant 

15 facilities, roads, drill pads, trenches, 

16 and pipeline or utility corridors; 

17 ‘‘(II) details regarding drill pad 

18 construction, methods for contain19 ment, and disposal of waste material; 

20 ‘‘(III) the identification, location, 

21 and condition of any inactive or or22 phaned well sites on land covered by 

23 the lease; and 

24 ‘‘(IV) such other information as 

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1 riculture with respect to National 

2 Forest System land, may require; and 

3 ‘‘(ii) include the interim reclamation 

4 plan and final reclamation plan developed 

5 under subparagraph (C). 

6 ‘‘(C) INTERIM AND FINAL RECLAMATION

7 PLANS.— 

8 ‘‘(i) INTERIM RECLAMATION PLAN.— 

9 ‘‘(I) IN GENERAL.—Each appli10 cant for a permit to drill under sub11 paragraph (A) shall develop for sub12 mission with the plan of operations of 

13 the applicant under that subpara14 graph an interim reclamation plan 

15 that specifies the reclamation activi16 ties that the applicant will carry out 

17 to address the land, water, and re18 sources (including resources with 

19 recreation, range, timber, mineral, wa20 tershed, fish or wildlife, natural sce21 nic, scientific, or historical value) im22 pacted by activities carried out pursu23 ant to the permit to drill that are not 

24 needed for active operations. 


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1 ‘‘(II) REQUIREMENT.—The Sec2 retary, or the Secretary of Agriculture 

3 with respect to National Forest Sys4 tem land, shall— 

5 ‘‘(aa) review each interim 

6 reclamation plan submitted under 

7 subclause (I) at regular intervals; 

8 and 

9 ‘‘(bb) as the applicable Sec10 retary determines to be nec11 essary, require the amendment 

12 and reapproval by the applicable 

13 Secretary of the interim reclama14 tion plan. 

15 ‘‘(ii) FINAL RECLAMATION PLAN.— 

16 ‘‘(I) IN GENERAL.—Each appli17 cant for a permit to drill under sub18 paragraph (A) shall develop for sub19 mission with the plan of operations of 

20 the applicant under that subpara21 graph a final reclamation plan that 

22 includes a detailed description of the 

23 reclamation activities the applicant 

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1 ations with respect to all land, water, 

2 and resources (including resources 

3 with recreation, range, timber, min4 eral, watershed, fish or wildlife, nat5 ural scenic, scientific, or historical 

6 value) impacted by activities carried 

7 out pursuant to the permit to drill. 

8 ‘‘(II) REVIEW AND APPROVAL.— 

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

11 Forest System land, shall review and 

12 approve a final reclamation plan 

13 under subclause (I) only after deter14 mining that the final reclamation plan 

15 is consistent with the standards pro16 mulgated pursuant to paragraph (5). 

17 ‘‘(D) ANALYSIS AND APPROVAL RE18 QUIRED.—The Secretary shall not grant a per19 mit to drill under this Act unless the Secretary 

20 has— 

21 ‘‘(i) analyzed and approved the plan 

22 of operations submitted with the applica23 tion for the permit under subparagraph 

24 (A), including the interim reclamation plan 


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1 and the final reclamation plan under sub2 paragraph (C); and 

3 ‘‘(ii) made the interim and final rec4 lamation plans under subparagraph (C) 

5 publicly available before that approval. 

6 ‘‘(4) FINANCIAL ASSURANCES.— 

7 ‘‘(A) REQUIREMENT.— 

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

9 the Secretary of Agriculture with respect 

10 to National Forest System land, shall pro11 mulgate regulations to require that a fi12 nancial assurance shall be provided by the 

13 lessee prior to the commencement of activi14 ties on any lease issued under this Act to 

15 ensure the complete and timely remedi16 ation and reclamation of any land, water, 

17 or other resources (including resources 

18 with recreation, range, timber, mineral, 

19 watershed, fish or wildlife, natural scenic, 

20 scientific, or historical value) adversely af21 fected by lease activities and operations 

22 after the abandonment or cessation of oil 

23 and gas operations on the lease. 

24 ‘‘(ii) ELIMINATION OF NATIONWIDE

25 FINANCIAL ASSURANCES.— 


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1 ‘‘(I) IN GENERAL.—A lessee may 

2 not provide a financial assurance 

3 under clause (i) on a nationwide basis 

4 for all leases of the lessee in the 

5 United States. 

6 ‘‘(II) REQUIREMENT.—With re7 spect to any nationwide financial as8 surance in effect on the date of enact9 ment of the Oil and Gas Bonding Re10 form and Orphaned Well Remediation 

11 Act, the Secretary, or the Secretary of 

12 Agriculture with respect to National 

13 Forest System land, shall require 

14 that, not later than 1 year after that 

15 date of enactment, the lessee shall 

16 post financial assurances in accord17 ance with this paragraph. 

18 ‘‘(iii) ADDITION OF NEW OPERA19 TORS.—Notwithstanding any other provi20 sion of law (including regulations), in any 

21 case in which a lease issued under this Act 

22 is assigned or transferred to a new oper23 ator, the previous operator of the lease 

24 shall include the new operator on the exist25 ing financial assurance provided under this 


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1 subparagraph until the date on which the 

2 new operator has provided a financial as3 surance on behalf of that new operator in 

4 accordance with this paragraph. 

5 ‘‘(B) FORM.— 

6 ‘‘(i) IN GENERAL.—The financial as7 surance under subparagraph (A) shall be 

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

9 or more letters of credit, 1 or more certifi10 cates of deposit, or cashier’s or certified 

11 check, subject to the approval of the Sec12 retary, or the Secretary of Agriculture with 

13 respect to National Forest System land. 

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

15 not be an acceptable form of financial as16 surance under subparagraph (A). 

17 ‘‘(C) AMOUNT.— 

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

19 (ii), the amount of a financial assurance 

20 required under this paragraph shall be the 

21 amount determined by the Secretary, or 

22 the Secretary of Agriculture with respect 

23 to National Forest System land, to be suf24 ficient to ensure the complete and timely 

25 remediation and reclamation required 


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

2 were to be performed by the applicable 

3 Secretary in the event of forfeiture by the 

4 lessee. 

5 ‘‘(ii) MINIMUM AMOUNTS.— 

6 ‘‘(I) IN GENERAL.—Subject to 

7 subclause (II), the minimum amount 

8 of a financial assurance required 

9 under this paragraph shall be not less 

10 than, as applicable— 

11 ‘‘(aa) $150,000, in the case 

12 of a financial assurance for sur13 face-disturbing activities of a re14 sponsible party on an individual 

15 oil or gas lease; or 

16 ‘‘(bb) $500,000, in the case 

17 of a financial assurance for all oil 

18 and gas leases of a responsible 

19 party in a State. 

20 ‘‘(II) ADJUSTMENTS FOR INFLA21 TION.—Not later than 3 years after 

22 the date of enactment of the Oil and 

23 Gas Bonding Reform and Orphaned 

24 Well Remediation Act, and not less 

25 frequently than once every 3 years 


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1 thereafter, the Secretary, or the Sec2 retary of Agriculture with respect to 

3 National Forest System land, shall 

4 adjust for inflation the minimum 

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

6 subclause (I). 

7 ‘‘(iii) ADDITIONAL FACTORS.—The 

8 Secretary, or the Secretary of Agriculture 

9 with respect to National Forest System 

10 land, shall establish the level of a financial 

11 assurance required under this paragraph 

12 above the applicable minimum level re13 quired under clause (ii) as the applicable 

14 Secretary determines to be appropriate or 

15 necessary to ensure the complete and time16 ly remediation and reclamation required 

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

18 into consideration the following factors: 

19 ‘‘(I) The depth of each relevant 

20 proposed wellbore. 

21 ‘‘(II) The presence of other re22 sources (including resources with 

23 recreation, range, timber, mineral, wa24 tershed, fish or wildlife, natural sce25 nic, scientific, or historical value). 


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1 ‘‘(III) The number of wells to be 

2 drilled on the lease. 

3 ‘‘(IV) The number and percent4 age of low-producing and inactive 

5 wells on— 

6 ‘‘(aa) the applicable lease; 

7 and 

8 ‘‘(bb) any other leases held 

9 by each applicable lessee, oper10 ator, and responsible party. 

11 ‘‘(V) Any current or past viola12 tions by each responsible party. 

13 ‘‘(VI) The anticipated condition 

14 of the applicable well site and the ex15 tent of the remediation and reclama16 tion to be required. 

17 ‘‘(VII) The ability of each re18 sponsible party to fully carry out that 

19 remediation and reclamation. 

20 ‘‘(VIII) Such other factors as the 

21 applicable Secretary determines to be 

22 relevant. 

23 ‘‘(D) REVIEW.— 

24 ‘‘(i) PROSPECTIVE.— 


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1 ‘‘(I) IN GENERAL.—With respect 

2 to any financial assurance provided 

3 after the date of enactment of the Oil 

4 and Gas Bonding Reform and Or5 phaned Well Remediation Act, not 

6 less frequently than once every 5 

7 years, and at any time at which the 

8 applicable lease is assigned or trans9 ferred, the Secretary, or the Secretary 

10 of Agriculture with respect to Na11 tional Forest System land, shall re12 view the financial assurance to deter13 mine, after taking into consideration 

14 the factors described in subparagraph 

15 (C)(iii), whether the amount of the fi16 nancial assurance is adequate to en17 sure the complete and timely remedi18 ation and reclamation required under 

19 subparagraph (A)(i). 

20 ‘‘(II) AUTHORITY TO IN21 CREASE.—If the Secretary, or the 

22 Secretary of Agriculture with respect 

23 to National Forest System land, de24 termines under subclause (I) that the 

25 amount of a financial assurance is not 


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•S 2177 IS

1 adequate, the applicable Secretary 

2 shall increase the amount of the fi3 nancial assurance in accordance with 

4 subparagraph (C), including making 

5 an adjustment for inflation, as appro6 priate. 

7 ‘‘(ii) RETROSPECTIVE.— 

8 ‘‘(I) IN GENERAL.—Not later 

9 than 1 year after the date of enact10 ment of the Oil and Gas Bonding Re11 form and Orphaned Well Remediation 

12 Act, and not less frequently than once 

13 every 5 years thereafter, the Sec14 retary, or the Secretary of Agriculture 

15 with respect to National Forest Sys16 tem land, shall— 

17 ‘‘(aa) review the sufficiency 

18 of each financial assurance pro19 vided before that date of enact20 ment; 

21 ‘‘(bb) determine, after tak22 ing into consideration the factors 

23 described in subparagraph 

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

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1 quate to ensure the complete and 

2 timely remediation and reclama3 tion required under subparagraph 

4 (A)(i); and 

5 ‘‘(cc) provide to each respon6 sible party a written notice, in7 cluding any relevant findings, re8 lating to the determination under 

9 item (bb). 

10 ‘‘(II) AUTHORITY TO IN11 CREASE.—If the Secretary, or the 

12 Secretary of Agriculture with respect 

13 to National Forest System land, de14 termines under subclause (I) that the 

15 amount of a financial assurance is not 

16 adequate, the applicable Secretary 

17 shall increase the amount of the fi18 nancial assurance in accordance with 

19 subparagraph (C), including making 

20 an adjustment for inflation, as appro21 priate. 

22 ‘‘(E) RELEASE.—On request, and after in23 spection by the Secretary, or the Secretary of 

24 Agriculture with respect to National Forest 

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1 lease, in whole or in part, the financial assur2 ance required for a lease under this paragraph 

3 if the Secretary determines that— 

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

5 permanent plugging covered by the finan6 cial assurance has been completed in ac7 cordance with— 

8 ‘‘(I) subparagraph (A)(i); and 

9 ‘‘(II) the standards established 

10 under paragraph (5); and 

11 ‘‘(ii) all other applicable Federal re12 quirements have been met. 

13 ‘‘(5) STANDARDS.— 

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

15 Secretary of Agriculture shall jointly promul16 gate regulations to establish uniform standards 

17 for the complete and timely reclamation of land, 

18 water, and other resources (including resources 

19 with recreation, range, timber, mineral, water20 shed, fish or wildlife, natural scenic, scientific, 

21 or historical value) adversely impacted, directly 

22 or indirectly, by oil and gas activities and oper23 ations (including any prior remediation or rec24 lamation efforts that fail to achieve compliance 

25 with the standards described in subparagraph 


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

2 adverse impact, including— 

3 ‘‘(i) standards for the interim rec4 lamation plans and final reclamation plans 

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

6 ‘‘(ii) timelines for— 

7 ‘‘(I) commencing and completing 

8 the permanent plugging of wells and 

9 related remediation and reclamation 

10 activities; and 

11 ‘‘(II) achieving compliance with 

12 the standards described in subpara13 graph (B). 

14 ‘‘(B) REQUIREMENTS.—The standards 

15 under subparagraph (A) shall include standards 

16 for— 

17 ‘‘(i) the remediation and reclamation 

18 of natural vegetation and hydrology; 

19 ‘‘(ii) habitat restoration; 

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

21 topsoils; 

22 ‘‘(iv) erosion control; 

23 ‘‘(v) reclamation of access roads; 

24 ‘‘(vi) control of invasive species and 

25 noxious weeds; and 


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1 ‘‘(vii) natural contouring. 

2 ‘‘(6) INACTIVE WELLS.— 

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

4 which includes an inactive well (except for a 

5 well with an approved suspension of operations 

6 pursuant to section 39) shall, as soon as prac7 ticable after determining that the well has been 

8 inactive— 

9 ‘‘(i) for a period of more than 30 con10 secutive days, submit to the Secretary a 

11 notice of that inactivity; and 

12 ‘‘(ii) for a period of more than 60 

13 consecutive days— 

14 ‘‘(I) bring the inactive well into— 

15 ‘‘(aa) production in paying 

16 quantities; or 

17 ‘‘(bb) the active aid of pro18 duction in paying quantities; 

19 ‘‘(II) submit to the Secretary an 

20 application for a delay in the remedi21 ation, reclamation, and permanent 

22 closure of the well in accordance with 

23 this paragraph; or 

24 ‘‘(III) permanently plug the well 

25 and complete the timely remediation 


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1 and reclamation required under para2 graphs (4)(A)(i) and (5). 

3 ‘‘(B) PERIOD OF DELAY.— 

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

5 (ii), the Secretary may approve an applica6 tion under subparagraph (A)(ii)(II) for a 

7 delay in the remediation, reclamation, and 

8 permanent plugging of an inactive well 

9 under subparagraph (A)(ii)(III) for a pe10 riod of not more than 1 year. 

11 ‘‘(ii) EXTENSIONS.— 

12 ‘‘(I) IN GENERAL.—Subject to 

13 subclause (II) and subparagraph (D), 

14 on receipt of application by a lessee 

15 under subparagraph (A)(ii)(II), the 

16 Secretary may approve 1 or more ad17 ditional delays in the remediation, rec18 lamation, and permanent closure of 

19 an inactive well, each of which addi20 tional delays shall be for a period of 

21 not more than 1 year. 

22 ‘‘(II) REQUIREMENTS.—Before 

23 approving an application for an addi24 tional delay under subclause (I), the 

25 Secretary shall— 


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•S 2177 IS

1 ‘‘(aa) take into consideration 

2 whether the operator is making 

3 all required royalty, rental, and 

4 fee payments on time; 

5 ‘‘(bb) review the amount of 

6 the financial assurance for the 

7 applicable lease; and 

8 ‘‘(cc) increase the amount to 

9 ensure the complete and timely 

10 remediation, reclamation, and 

11 permanent closure required under 

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

13 were to be performed by the Sec14 retary in the event of forfeiture 

15 by the lessee. 

16 ‘‘(C) APPLICATION REQUIREMENTS.— 

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

18 of a lessee to delay permanent abandon19 ment and reclamation of a well under sub20 paragraph (A)(ii)(II) or (B)(ii) shall in21 clude a description of— 

22 ‘‘(I) the period of time during 

23 which the well has been inactive; 


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1 ‘‘(II) the justification for delay2 ing permanent abandonment and rec3 lamation of the well; 

4 ‘‘(III) the probable duration of 

5 the delay; 

6 ‘‘(IV) the means by which the 

7 wellbore is to be protected during the 

8 delay; and 

9 ‘‘(V) the contemplated eventual 

10 disposition of the well. 

11 ‘‘(ii) SPECIAL REQUIREMENTS FOR

12 APPLICATIONS FOR EXTENSION.—Each ap13 plication for a delay under subparagraph 

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

15 through test results, that the applicable 

16 well is— 

17 ‘‘(I) mechanically sound; and 

18 ‘‘(II) capable of— 

19 ‘‘(aa) production in paying 

20 quantities; or 

21 ‘‘(bb) actively aiding in pro22 duction in paying quantities. 

23 ‘‘(D) PROHIBITION.— 

24 ‘‘(i) IN GENERAL.—No well may be 

25 inactive for a period of more than 2 years. 


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•S 2177 IS

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

2 a well under a lease issued under this Act 

3 that has been inactive for a period of more 

4 than 2 years, the applicable lessee shall— 

5 ‘‘(I)(aa) bring the inactive well 

6 into— 

7 ‘‘(AA) production in paying 

8 quantities; or 

9 ‘‘(BB) the active aid of pro10 duction in paying quantities; and 

11 ‘‘(bb) pay any related royalties, 

12 rentals, or other fees due; or 

13 ‘‘(II)(aa) permanently plug the 

14 well; and 

15 ‘‘(bb) complete the timely remedi16 ation and reclamation required under 

17 paragraph (4)(A)(i). 

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

19 case in which a lessee has not carried out 

20 any required action under clause (ii) with 

21 respect to a well described in that clause, 

22 the Secretary, or the Secretary of Agri23 culture with respect to National Forest 

24 System land, shall execute forfeiture of the 


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1 financial assurance associated with the 

2 well. 

3 ‘‘(E) INVENTORY.— 

4 ‘‘(i) IN GENERAL.—Not later than 

5 180 days after the date of enactment of 

6 the Oil and Gas Bonding Reform and Or7 phaned Well Remediation Act, and not less 

8 frequently than annually thereafter, the 

9 Secretary, or the Secretary of Agriculture 

10 with respect to National Forest System 

11 land, shall complete an inventory of all 

12 wells that, as of the date of publication of 

13 the inventory— 

14 ‘‘(I) are inactive, orphaned, or 

15 abandoned; or 

16 ‘‘(II) have previously been identi17 fied as idled, orphaned, or abandoned. 

18 ‘‘(ii) INCLUSIONS.—Each inventory 

19 under clause (i) shall identify, with respect 

20 to each inactive or orphaned well— 

21 ‘‘(I) the location of the well; 

22 ‘‘(II) the length of time during 

23 which the well has been inactive or or24 phaned; 


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•S 2177 IS

1 ‘‘(III) the responsible parties as2 sociated with the well; and 

3 ‘‘(IV) any financial assurance 

4 provided to remediate and reclaim the 

5 well, including the most recent date 

6 on which the Secretary reviewed that 

7 financial assurance.’’. 

8 TITLE III—MISCELLANEOUS 

9 SEC. 301. COST RECOVERY. 

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

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

12 amended by adding at the end the following: 

13 ‘‘(r) COST RECOVERY REQUIREMENTS.— 

14 ‘‘(1) IN GENERAL.—Before approving an appli15 cation for a permit to drill pursuant to a lease 

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

17 or the Secretary of Agriculture with respect to Na18 tional Forest System land, shall determine the cost 

19 to the Federal Government of carrying out Federal 

20 inspection and enforcement actions for the lease. 

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

22 of the Interior, or the Secretary of Agriculture with 

23 respect to National Forest System land, shall not re24 lease the financial assurance established for a lease 

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


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•S 2177 IS

1 has reimbursed the applicable Secretary for the total 

2 cost of Federal inspection and enforcement actions 

3 on the lease.’’. 

4 (b) USE OF BLM PERMIT PROCESSING IMPROVE5 MENT FUND.—Section 35(c)(3) of the Mineral Leasing 

6 Act (30 U.S.C. 191(c)(3)) is amended by striking sub7 paragraph (A) and inserting the following: 

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

9 Fund, the Secretary of the Interior, in consulta10 tion with the Secretary of Agriculture, shall 

11 use, without further appropriation or fiscal year 

12 limitation— 

13 ‘‘(i) 50 percent— 

14 ‘‘(I) to carry out the coordination 

15 and review process for— 

16 ‘‘(aa) financial assurances 

17 for oil and gas leases under this 

18 Act; and 

19 ‘‘(bb) bond releases for oil 

20 and gas leases under this Act; 

21 ‘‘(II) to coordinate— 

22 ‘‘(aa) the inventory of wells 

23 that are orphaned or inactive (as 

24 those terms are defined in sub25 section (q)(1)); and 


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•S 2177 IS

1 ‘‘(bb) the processing of re2 quests for delays in the perma3 nent closure of wells that are in4 active (as so defined); and 

5 ‘‘(III) to coordinate and process 

6 environmental and cultural resource 

7 reviews applicable to oil and gas ac8 tivities under this Act; and 

9 ‘‘(ii) the remaining amounts for the 

10 coordination and processing of oil and gas 

11 use authorizations on onshore Federal and 

12 Indian trust mineral estate land.’’. 

13 SEC. 302. REGULATIONS. 

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

15 date of enactment of this Act, the Secretary and the Sec16 retary of Agriculture, acting in coordination, shall concur17 rently promulgate regulations to implement this Act and 

18 the amendments made by this Act. 

19 (b) EFFECT ON FUNDING.—The funds made avail20 able pursuant to subsection (q)(9) of section 17 of the 

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

22 101(a)) shall be disbursed and expended in accordance 

23 with applicable interim guidance pending completion of 

24 the rulemaking required under subsection (a). 

Æ 


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