I 

116TH CONGRESS 

1ST SESSION H. R. 4346 

To amend the Mineral Leasing Act to make certain adjustments to the 

regulation of surface-disturbing activities and to protect taxpayers from 

unduly bearing the reclamation costs of oil and gas development, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2019 

Mr. LOWENTHAL introduced the following bill; which was referred to the 

Committee on Natural Resources 

A BILL 

To amend the Mineral Leasing Act to make certain adjustments to the regulation of surface-disturbing activities 

and to protect taxpayers from unduly bearing the reclamation costs of oil and gas development, and for other 

purposes. 

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 referred to as the ‘‘Bonding Reform 

5 and Taxpayer Protection Act of 2019’’. 


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1 SEC. 2. SURFACE DISTURBANCE AND RECLAMATION. 

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

3 226(g)) is amended to read as follows: 

4 ‘‘(g) BONDING REQUIREMENTS.— 

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

6 ‘‘(A) INTERIM RECLAMATION PLAN.—The 

7 term ‘Interim Reclamation Plan’ means an on8 going plan specifying reclamation steps to be 

9 taken on all disturbed areas covered by any 

10 lease issued under this Act that are not needed 

11 for active operations. 

12 ‘‘(B) FINAL RECLAMATION PLAN.—The 

13 term ‘Final Reclamation Plan’ means a plan 

14 describing all reclamation activity to be con15 ducted for all disturbed areas, including loca16 tions, facilities, trenches, rights-of-way, roads, 

17 and any other surface disturbance covered by a 

18 lease issued under this Act prior to final aban19 donment. 

20 ‘‘(2) IN GENERAL.—The Secretary of the Inte21 rior, or with respect to National Forest lands, the 

22 Secretary of Agriculture, shall regulate all surface23 disturbing activities conducted pursuant to any lease 

24 issued under this Act, and shall determine reclama25 tion and other actions as required in the interest of 

26 conservation of surface resources. 


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1 ‘‘(3) RECLAMATION PLANS REQUIRED.— 

2 ‘‘(A) ANALYSIS AND APPROVAL RE3 QUIRED.—No permit to drill on an oil and gas 

4 lease issued under this Act may be granted 

5 without the analysis and approval by the Sec6 retary concerned of both an interim reclamation 

7 plan and a final reclamation plan covering pro8 posed surface-disturbing activities within the 

9 lease area. 

10 ‘‘(B) PLANS OF OPERATIONS.—All Plans 

11 of Operations submitted and approved pursuant 

12 to this Act shall include an Interim Reclama13 tion Plan. 

14 ‘‘(C) SECRETARIAL REVIEW.—The relevant 

15 Secretary shall review each Interim Reclama16 tion Plan at regular intervals and shall require 

17 such plans to be amended as warranted, subject 

18 to the approval of such Secretary. 

19 ‘‘(4) BONDING.— 

20 ‘‘(A) IN GENERAL.—The Secretary con21 cerned shall, by regulation, require that an ade22 quate bond, surety, or other financial arrange23 ment will be established prior to the commence24 ment of surface-disturbing activities on any 

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1 lamation of the lease tract, and the restoration 

2 of any lands or surface waters adversely af3 fected by lease operations after the abandon4 ment or cessation of oil and gas operations on 

5 the lease. 

6 ‘‘(B) PROHIBITION.—The Secretary shall 

7 not issue or approve the assignment of any 

8 lease under the terms of this section to any per9 son, association, corporation, or any subsidiary, 

10 affiliate, or person controlled by or under com11 mon control with such person, association, or 

12 corporation, during any period in which, as de13 termined by the relevant Secretary, such entity 

14 has failed or refused to comply in any material 

15 respect with the reclamation requirements and 

16 other standards established under this section 

17 for any prior lease to which such requirements 

18 and standards applied. 

19 ‘‘(C) NOTICE AND OPPORTUNITY FOR COM20 PLIANCE.—Prior to making such determination 

21 with respect to any such entity the concerned 

22 Secretary shall provide such entity with ade23 quate notification and an opportunity to comply 

24 with such reclamation requirements and other 

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1 ministrative or judicial appeal is pending. Once 

2 the entity has complied with the reclamation re3 quirement or other standard concerned an oil or 

4 gas lease may be issued to such entity under 

5 this Act. 

6 ‘‘(D) LIMITATION ON BONDS.—A bond, 

7 surety, or other financial arrangement described 

8 in subparagraph (A) shall not be adequate if it 

9 is less than— 

10 ‘‘(i) $50,000 in the case of an ar11 rangement for an individual surface-dis12 turbing activity of an entity; 

13 ‘‘(ii) $250,000 in the case of an ar14 rangement for all surface-disturbing activi15 ties of an entity in a State; or 

16 ‘‘(iii) $1,000,000 in the case of an ar17 rangement for all surface-disturbing activi18 ties of an entity in the United States. 

19 ‘‘(E) ADJUSTMENTS FOR INFLATION.—In 

20 the application of subparagraph (B), the Secre21 taries concerned shall jointly at least once every 

22 three years adjust the dollar amounts in sub23 paragraph (B) to account for inflation based on 

24 the Consumer Price Index for all urban con25 sumer published by the Department of Labor. 


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1 ‘‘(5) STANDARDS.—The Secretary of the Inte2 rior and the Secretary of Agriculture shall, by regu3 lation, establish uniform standards for all Interim 

4 and Final Reclamation Plans. The goal of such 

5 plans shall be the restoration of the affected eco6 system to a condition approximating or equal to that 

7 which existed prior to the surface disturbance. Such 

8 standards shall include restoration of natural vegeta9 tion and hydrology, habitat restoration, salvage, 

10 storage and reuse of topsoils, erosion control, control 

11 of invasive species and noxious weeds and natural 

12 contouring. 

13 ‘‘(6) MONITORING.—The Secretary concerned 

14 shall not approve final abandonment and shall not 

15 release any bond required by this Act until the 

16 standards and requirement for final reclamation es17 tablished pursuant to this Act have been met.’’. 

Æ 


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