I 

111TH CONGRESS 

1ST SESSION H. R. 3616 

To expedite the exploration and development of oil and gas from Federal 

lands, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2009 

Ms. FALLIN introduced the following bill; which was referred to the Committee 

on Natural Resources 

A BILL 

To expedite the exploration and development of oil and gas 

from Federal lands, and for other purposes. 

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. 

4 This Act may be cited as the ‘‘Federal Exploration 

5 and Production Reform Act of 2009’’. 

6 SEC. 2. REVIEW OF OUTER CONTINENTAL SHELF EXPLO7 RATION PLANS. 

8 Subsections (c) and (d) of section 11 of the Outer 

9 Continental Shelf Lands Act (43 U.S.C. 1340) are amend10 ed to read as follows: 


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1 ‘‘(c) PLAN REVIEW; PLAN PROVISIONS.— 

2 ‘‘(1) Except as otherwise provided in this Act, 

3 prior to commencing exploration pursuant to any oil 

4 and gas lease issued or maintained under this Act, 

5 the holder thereof shall submit an exploration plan 

6 (hereinafter in this section referred to as a ‘plan’) to 

7 the Secretary for review which shall include all infor8 mation and documentation required under para9 graphs (2) and (3). The Secretary shall review the 

10 plan for completeness within 10 days of submission. 

11 If the Secretary finds that the plan is not complete, 

12 the Secretary shall notify the lessee with a detailed 

13 explanation and require such modifications of such 

14 plan as are necessary to achieve completeness. The 

15 Secretary shall have 10 days to review a modified 

16 plan for completeness. Such plan may apply to more 

17 than one lease held by a lessee in any one region of 

18 the outer Continental Shelf, or by a group of lessees 

19 acting under a unitization, pooling, or drilling agree20 ment, and the lessee shall certify that such plan is 

21 consistent with the terms of the lease and is con22 sistent with all statutory and regulatory require23 ments in effect on the date of issuance of the lease, 

24 and any regulations promulgated under this Act to 

25 the conservation of resources after the date of the 


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1 lease issuances. The Secretary shall have 30 days 

2 from the date the plan is deemed complete to con3 duct a review of the plan. If the Secretary finds the 

4 plan is not consistent with the lease and all such 

5 statutory and regulatory requirements, the Secretary 

6 shall notify the lessee with a detailed explanation of 

7 such modifications of such plan as are necessary to 

8 achieve compliance. The Secretary shall have 30 

9 days to review any modified plan submitted by the 

10 lessee. The lessee shall not take any action under 

11 the exploration plan within the 30-day review period, 

12 or thereafter until the plan has been modified to 

13 achieve compliance as so notified. 

14 ‘‘(2) An exploration plan submitted under this 

15 subsection shall include, in the degree of detail 

16 which the Secretary may by regulation require— 

17 ‘‘(A) a schedule of anticipated exploration 

18 activities to be undertaken; 

19 ‘‘(B) a description of equipment to be used 

20 for such activities; 

21 ‘‘(C) the general location of each well to be 

22 drilled; and 

23 ‘‘(D) such other information deemed perti24 nent by the Secretary. 


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1 ‘‘(3) The Secretary may, by regulation, require 

2 that such plan be accompanied by a general state3 ment of development and production intentions 

4 which shall be for planning purposes only and which 

5 shall not be binding on any party. 

6 ‘‘(d) PLAN REVISIONS; CONDUCT OF EXPLORATION

7 ACTIVITIES.— 

8 ‘‘(1) If a significant revision of an exploration 

9 plan under this subsection is submitted to the Sec10 retary, the process to be used for the review of such 

11 revision shall be the same as set forth in subsection 

12 (c) of this section. 

13 ‘‘(2) All exploration activities pursuant to any 

14 lease shall be conducted in accordance with an explo15 ration plan or a revised plan which has been sub16 mitted to and reviewed by the Secretary.’’. 

17 SEC. 3. REVIEW OF OUTER CONTINENTAL SHELF DEVELOP18 MENT AND PRODUCTION PLANS. 

19 Section 25 of the Outer Continental Shelf Lands Act 

20 (43 U.S.C. 1351(a)) is amended to read as follows: 

21 ‘‘SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVEL22 OPMENT AND PRODUCTION PLANS. 

23 ‘‘(a) DEVELOPMENT AND PRODUCTION PLANS; SUB24 MISSION TO SECRETARY; STATEMENT OF FACILITIES AND


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1 OPERATION; SUBMISSION TO GOVERNORS OF AFFECTED

2 STATES AND LOCAL GOVERNMENTS.— 

3 ‘‘(1) Prior to development and production pur4 suant to an oil and gas lease issued on or after Sep5 tember 18, 1978, for any area of the outer Conti6 nental Shelf, or issued or maintained prior to Sep7 tember 18, 1978, for any area of the outer Conti8 nental Shelf, with respect to which no oil or gas has 

9 been discovered in paying quantities prior to Sep10 tember 18, 1978, the lessee shall submit a develop11 ment and production plan (hereinafter in this sec12 tion referred to as a ‘plan’) to the Secretary for re13 view. 

14 ‘‘(2) A plan shall be accompanied by a state15 ment describing all facilities and operations, other 

16 than those on the outer Continental Shelf, proposed 

17 by the lessee and known by the lessee (whether or 

18 not owned or operated by such lessee) that will be 

19 constructed or utilized in the development and pro20 duction of oil or gas from the lease area, including 

21 the location and site of such facilities and oper22 ations, the land, labor, material, and energy require23 ments associated with such facilities and operations, 

24 and all environmental and safety safeguards to be 

25 implemented. 


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1 ‘‘(3) Except for any privileged or proprietary 

2 information (as such term is defined in regulations 

3 issued by the Secretary), the Secretary, within 30 

4 days after receipt of a plan and statement, shall— 

5 ‘‘(A) submit such plan and statement to 

6 the Governor of any affected State, and upon 

7 request to the executive of any affected local 

8 government; and 

9 ‘‘(B) make such plan and statement avail10 able to any appropriate interstate regional enti11 ty and the public. 

12 ‘‘(b) DEVELOPMENT AND PRODUCTION ACTIVITIES

13 IN ACCORDANCE WITH PLAN AS LEASE REQUIREMENT.— 

14 After enactment of the Federal Exploration and Produc15 tion Reform Act of 2008, no oil and gas lease may be 

16 issued pursuant to this Act in any region of the outer Con17 tinental Shelf, unless such lease requires that development 

18 and production activities be carried out in accordance with 

19 a plan that complies with the requirements of this section. 

20 This section shall also apply to leases that do not have 

21 an approved development and production plan as of the 

22 date of enactment of the Federal Exploration and Produc23 tion Reform Act of 2008. 

24 ‘‘(c) SCOPE AND CONTENTS OF PLAN.—A plan may 

25 apply to more than one oil and gas lease, and shall set 


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1 forth, in the degree of detail established by regulations 

2 issued by the Secretary— 

3 ‘‘(1) the general work to be performed; 

4 ‘‘(2) a description of all facilities and operations 

5 located on the outer Continental Shelf that are pro6 posed by the lessee or known by the lessee (whether 

7 or not owned or operated by such lessee) to be di8 rectly related to the proposed development, including 

9 the location and size of such facilities and oper10 ations, and the land, labor, material, and energy re11 quirements associated with such facilities and oper12 ations; 

13 ‘‘(3) the environmental safeguards to be imple14 mented on the outer Continental Shelf and how such 

15 safeguards are to be implemented; 

16 ‘‘(4) all safety standards to be met and how 

17 such standards are to be met; 

18 ‘‘(5) an expected rate of development and pro19 duction and a time schedule for performance; and 

20 ‘‘(6) such other relevant information as the Sec21 retary may by regulation require. 

22 ‘‘(d) COMPLETENESS REVIEW OF THE PLAN.— 

23 ‘‘(1) Prior to commencing any activity under a 

24 development and production plan pursuant to any oil 

25 and gas lease issued or maintained under this Act, 


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1 the lessee shall certify that the plan is consistent 

2 with the terms of the lease and that it is consistent 

3 with all statutory and regulatory requirements in ef4 fect on the date of issuance of the lease, and any 

5 regulations promulgated under this Act related to 

6 the conservation of resources after the date of lease 

7 issuance. The plan shall include all required infor8 mation and documentation required under sub9 section (c). 

10 ‘‘(2) The Secretary shall review the plan for 

11 completeness within 30 days of submission. If the 

12 Secretary finds that the plan is not complete, the 

13 Secretary shall notify the lessee with a detailed ex14 planation of such modifications of such plan as are 

15 necessary to achieve completeness. The Secretary 

16 shall have 30 days to review a modified plan for 

17 completeness. 

18 ‘‘(e) REVIEW FOR CONSISTENCY OF THE PLAN.— 

19 ‘‘(1) After a determination that a plan is com20 plete, the Secretary shall have 120 days to conduct 

21 a review of the plan, to ensure that it is consistent 

22 with the terms of the lease, and that it is consistent 

23 with all such statutory and regulatory requirements 

24 applicable to the lease. The review shall ensure that 

25 the plan is consistent with lease terms, and statutory 


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1 and regulatory requirements applicable to the lease, 

2 related to national security or national defense, in3 cluding any military operating stipulations or other 

4 restrictions. The Secretary shall seek the assistance 

5 of the Department of Defense in the conduct of the 

6 review of any plan prepared under this section for 

7 a lease containing military operating stipulations or 

8 other restrictions and shall accept the assistance of 

9 the Department of Defense in the conduct of the re10 view of any plan prepared under this section for any 

11 other lease when the Secretary of Defense requests 

12 an opportunity to participate in the review. If the 

13 Secretary finds that the plan is not consistent, the 

14 Secretary shall notify the lessee with a detailed ex15 planation of such modifications of such plan as are 

16 necessary to achieve consistency. 

17 ‘‘(2) The Secretary shall have 120 days to re18 view a modified plan. 

19 ‘‘(3) The lessee shall not conduct any activities 

20 under the plan during any 120-day review period, or 

21 thereafter until the plan has been modified to 

22 achieve compliance as so notified. 

23 ‘‘(4) After review by the Secretary provided for 

24 by this section, a lessee may operate pursuant to the 


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1 plan without further review or approval by the Sec2 retary. 

3 ‘‘(f) REVIEW OF REVISION OF THE APPROVED

4 PLAN.—The lessee may submit to the Secretary any revi5 sion of a plan if the lessee determines that such revision 

6 will lead to greater recovery of oil and natural gas, im7 prove the efficiency, safety, and environmental protection 

8 of the recovery operation, is the only means available to 

9 avoid substantial economic hardship to the lessee, or is 

10 otherwise not inconsistent with the provisions of this Act, 

11 to the extent such revision is consistent with protection 

12 of the human, marine, and coastal environments. The 

13 process to be used for the review of any such revision shall 

14 be the same as that set forth in subsections (d) and (e). 

15 ‘‘(g) CANCELLATION OF LEASE ON FAILURE TO

16 SUBMIT PLAN OR COMPLY WITH A PLAN.—Whenever the 

17 owner of any lease fails to submit a plan in accordance 

18 with regulations issued under this section, or fails to com19 ply with a plan, the lease may be canceled in accordance 

20 with sections 5(c) and (d). Termination of a lease because 

21 of failure to comply with a plan, including required modi22 fications or revisions, shall not entitle a lessee to any com23 pensation. 

24 ‘‘(h) PRODUCTION AND TRANSPORTATION OF NAT25 URAL GAS; SUBMISSION OF PLAN TO FEDERAL ENERGY


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1 REGULATORY COMMISSION; IMPACT STATEMENT.—If any 

2 development and production plan submitted to the Sec3 retary pursuant to this section provides for the production 

4 and transportation of natural gas, the lessee shall contem5 poraneously submit to the Federal Energy Regulatory 

6 Commission that portion of such plan that relates to the 

7 facilities for transportation of natural gas. The Secretary 

8 and the Federal Energy Regulatory Commission shall 

9 agree as to which of them shall prepare an environmental 

10 impact statement pursuant to the National Environmental 

11 Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable 

12 to such portion of such plan, or conduct studies as to the 

13 effect on the environment of implementing it. Thereafter, 

14 the findings and recommendations by the agency pre15 paring such environmental impact statement or con16 ducting such studies pursuant to such agreement shall be 

17 adopted by the other agency, and such other agency shall 

18 not independently prepare another environmental impact 

19 statement or duplicate such studies with respect to such 

20 portion of such plan, but the Federal Energy Regulatory 

21 Commission, in connection with its review of an applica22 tion for a certificate of public convenience and necessity 

23 applicable to such transportation facilities pursuant to sec24 tion 7 of the Natural Gas Act (15 U.S.C. 717f), may pre25 pare such environmental studies or statement relevant to 


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1 certification of such transportation facilities as have not 

2 been covered by an environmental impact statement or 

3 studies prepared by the Secretary. The Secretary, in con4 sultation with the Federal Energy Regulatory Commis5 sion, shall promulgate rules to implement this subsection, 

6 but the Federal Energy Regulatory Commission shall re7 tain sole authority with respect to rules and procedures 

8 applicable to the filing of any application with the Com9 mission and to all aspects of the Commission’s review of, 

10 and action on, any such application.’’. 

11 SEC. 4. REGULATION OF ONSHORE SURFACE-DISTURBING 

12 ACTIVITIES. 

13 (a) Section 17(g) of the Mineral Leasing Act (30 

14 U.S.C. 226(g)) is amended to read as follows: 

15 ‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI16 TIES.— 

17 ‘‘(1) REGULATION OF SURFACE-DISTURBING

18 ACTIVITIES.—The Secretary of the Interior, or for 

19 National Forest lands, the Secretary of Agriculture, 

20 shall regulate all surface-disturbing activities con21 ducted pursuant to any lease issued under this Act, 

22 and shall determine reclamation and other actions as 

23 required in the interest of conservation of surface re24 sources. 


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1 ‘‘(2) SUBMISSION OF EXPLORATION PLAN; COM2 PLETION REVIEW; COMPLIANCE REVIEW.— 

3 ‘‘(A) Prior to beginning oil and gas explo4 ration activities, a lessee shall submit an explo5 ration plan to the Secretary of the Interior for 

6 review. 

7 ‘‘(B) The Secretary shall review the plan 

8 for completeness within 10 days of submission. 

9 ‘‘(C) In the event the exploration plan is 

10 determined to be incomplete, the Secretary shall 

11 notify the lessee in writing and specify the 

12 items or information needed to complete the ex13 ploration plan. 

14 ‘‘(D) The Secretary shall have 10 days to 

15 review any modified exploration plan submitted 

16 by the lessee. 

17 ‘‘(E) To be deemed complete, an explo18 ration plan shall include, in the degree of detail 

19 to be determined by the Secretary by rule or 

20 regulation— 

21 ‘‘(i) a drilling plan containing a de22 scription of the drilling program; 

23 ‘‘(ii) the surface and projected com24 pletion zone location; 

25 ‘‘(iii) pertinent geologic data; 


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1 ‘‘(iv) expected hazards, and proposed 

2 mitigation measures to address such haz3 ards; 

4 ‘‘(v) a schedule of anticipated explo5 ration activities to be undertaken; 

6 ‘‘(vi) a description of equipment to be 

7 used for such activities; 

8 ‘‘(vii) a certification from the lessee 

9 stating that the exploration plan complies 

10 with all lease, regulatory and statutory re11 quirements in effect on the date of the 

12 issuance of the lease and any regulations 

13 promulgated after the date of lease 

14 issuance related to the conservation of re15 sources; 

16 ‘‘(viii) evidence that the lessee has se17 cured an adequate bond, surety, or other 

18 financial arrangement prior to commence19 ment of any surface-disturbing activity; 

20 ‘‘(ix) a plan that details the complete 

21 and timely reclamation of the lease tract; 

22 and 

23 ‘‘(x) such other relevant information 

24 as the Secretary may by regulation require. 


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1 ‘‘(F) Upon a determination that the explo2 ration plan is complete, the Secretary shall have 

3 30 days from the date the plan is deemed com4 plete to conduct a review of the plan. 

5 ‘‘(G) If the Secretary finds the exploration 

6 plan is not consistent with all statutory and 

7 regulatory requirements described in subpara8 graph (E)(vii), the Secretary shall notify the 

9 lessee with a detailed explanation of such modi10 fications of the exploration plan as are nec11 essary to achieve compliance. 

12 ‘‘(H) The lessee shall not take any action 

13 under the exploration plan within a 30-day re14 view period, or thereafter until the plan has 

15 been modified to achieve compliance as so noti16 fied. 

17 ‘‘(I) After review by the Secretary provided 

18 by this subsection, a lessee may operate pursu19 ant to the plan without further review or ap20 proval by the Secretary. 

21 ‘‘(3) PLAN REVISIONS; CONDUCT OF EXPLO22 RATION ACTIVITIES.— 

23 ‘‘(A) If a significant revision of an explo24 ration plan under this subsection is submitted 

25 to the Secretary, the process to be used for the 


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1 review of such revision shall be the same as set 

2 forth in paragraph (1) of this subsection. 

3 ‘‘(B) All exploration activities pursuant to 

4 any lease shall be conducted in accordance with 

5 an exploration plan that has been submitted to 

6 and reviewed by the Secretary or a revision of 

7 such plan. 

8 ‘‘(4) SUBMISSION OF DEVELOPMENT AND PRO9 DUCTION PLAN; COMPLETENESS REVIEW; COMPLI10 ANCE REVIEW.— 

11 ‘‘(A) Prior to beginning oil and gas devel12 opment and production activities, a lessee shall 

13 submit a development and exploration plan to 

14 the Secretary of the Interior. Upon submission, 

15 such plans shall be subject to a review for com16 pleteness. 

17 ‘‘(B) The Secretary shall review the plan 

18 for completeness within 30 days of submission. 

19 ‘‘(C) In the event a development and pro20 duction plan is determined to be incomplete, the 

21 Secretary shall notify the lessee in writing and 

22 specify the items or information needed to com23 plete the plan. 

24 ‘‘(D) The Secretary shall have 30 days to 

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1 ment and production plan submitted by the les2 see. 

3 ‘‘(E) To be deemed complete, a develop4 ment and production plan shall include, in the 

5 degree of detail to be determined by the Sec6 retary by rule or regulation— 

7 ‘‘(i) a drilling plan containing a de8 scription of the drilling program; 

9 ‘‘(ii) the surface and projected com10 pletion zone location; 

11 ‘‘(iii) pertinent geologic data; 

12 ‘‘(iv) expected hazards, and proposed 

13 mitigation measures to address such haz14 ards; 

15 ‘‘(v) a statement describing all facili16 ties and operations proposed by the lessee 

17 and known by the lessee (whether or not 

18 owned or operated by such lessee) that 

19 shall be constructed or utilized in the de20 velopment and production of oil or gas 

21 from the leases areas, including the loca22 tion and site of such facilities and oper23 ations, the land, labor, material, and en24 ergy requirements associated with such fa25 cilities and operations; 


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1 ‘‘(vi) the general work to be per2 formed; 

3 ‘‘(vii) the environmental safeguards to 

4 be implemented in connection with the de5 velopment and production and how such 

6 safeguards are to be implemented; 

7 ‘‘(viii) all safety standards to be met 

8 and how such standards are to be met; 

9 ‘‘(ix) an expected rate of development 

10 and production and a time schedule for 

11 performance; 

12 ‘‘(x) a certification from the lessee 

13 stating that the development and produc14 tion plan complies with all lease, regu15 latory, and statutory requirements in effect 

16 on the date of issuance of the lease, and 

17 any regulations promulgated after the date 

18 of lease issuance related to the conserva19 tion of resources; 

20 ‘‘(xi) evidence that the lessee has se21 cured an adequate bond, surety, or other 

22 financial arrangement prior to commence23 ment of any surface-disturbing activity; 


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1 ‘‘(xii) a plan that details the complete 

2 and timely reclamation of the lease tract; 

3 and 

4 ‘‘(xiii) such other relevant information 

5 as the Secretary may by regulation require. 

6 ‘‘(F) Upon a determination that the devel7 opment and production plan is complete, the 

8 Secretary shall have 120 days from the date the 

9 plan is deemed complete to conduct a review of 

10 the plan. 

11 ‘‘(G) If the Secretary finds the develop12 ment and production plan is not consistent with 

13 all statutory and regulatory requirements de14 scribed in subparagraph (E)(x), the Secretary 

15 shall notify the lessee with a detailed expla16 nation of such modifications of the development 

17 and production plan as are necessary to achieve 

18 compliance. 

19 ‘‘(H) The lessee shall not take any action 

20 under the development and production plan 

21 within a 120-day review period, or thereafter 

22 until the plan has been modified to achieve 

23 compliance as so notified. 

24 ‘‘(5) PLAN REVISIONS; CONDUCT OF DEVELOP25 MENT AND PRODUCTION ACTIVITIES.— 


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1 ‘‘(A) If a significant revision of a develop2 ment and production plan under this subsection 

3 is submitted to the Secretary, the process to be 

4 used for the review of such revision shall be the 

5 same as set forth in paragraph (4) of this sub6 section. 

7 ‘‘(B) All development and production ac8 tivities pursuant to any lease shall be conducted 

9 in accordance with a development and produc10 tion plan that has been submitted to and re11 viewed by the Secretary or a revision of such 

12 plan. 

13 ‘‘(6) CANCELLATION OF LEASE ON FAILURE TO

14 SUBMIT PLAN OR COMPLY WITH APPROVED PLAN.— 

15 Whenever the owner of any lease fails to submit a 

16 plan in accordance with regulations issued under 

17 this section, or fails to comply with a plan, the lease 

18 may be canceled in accordance with section 31. Ter19 mination of a lease because of failure to comply with 

20 a plan, including required modifications or revisions, 

21 shall not entitle a lessee to any compensation.’’. 

22 (b) Section 17(p) of the Mineral Leasing Act (30 

23 U.S.C. 226(p)) is repealed. 

Æ 


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