Bonding Reform and Taxpayer Protection Act of 2019

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. Short title This Act may be referred to as the Bonding Reform and Taxpayer Protection Act of 2019 2. Surface disturbance and reclamation Section 17(g) of the Mineral Leasing Act ( 30 U.S.C. 226(g) (g) Bonding requirements (1) Definitions In this subsection: (A) Interim reclamation plan The term Interim Reclamation Plan (B) Final reclamation plan The term Final Reclamation Plan (2) In general The Secretary of the Interior, or with respect to National Forest lands, the Secretary of Agriculture, shall regulate all surface-disturbing activities conducted pursuant to any lease issued under this Act, and shall determine reclamation and other actions as required in the interest of conservation of surface resources. (3) Reclamation plans required (A) Analysis and approval required No permit to drill on an oil and gas lease issued under this Act may be granted without the analysis and approval by the Secretary concerned of both an interim reclamation plan and a final reclamation plan covering proposed surface-disturbing activities within the lease area. (B) Plans of operations All Plans of Operations submitted and approved pursuant to this Act shall include an Interim Reclamation Plan. (C) Secretarial Review The relevant Secretary shall review each Interim Reclamation Plan at regular intervals and shall require such plans to be amended as warranted, subject to the approval of such Secretary. (4) Bonding (A) In general The Secretary concerned shall, by regulation, require that an adequate bond, surety, or other financial arrangement will be established prior to the commencement of surface-disturbing activities on any lease, to ensure the complete and timely reclamation of the lease tract, and the restoration of any lands or surface waters adversely affected by lease operations after the abandonment or cessation of oil and gas operations on the lease. (B) Prohibition The Secretary shall not issue or approve the assignment of any lease under the terms of this section to any person, association, corporation, or any subsidiary, affiliate, or person controlled by or under common control with such person, association, or corporation, during any period in which, as determined by the relevant Secretary, such entity has failed or refused to comply in any material respect with the reclamation requirements and other standards established under this section for any prior lease to which such requirements and standards applied. (C) Notice and opportunity for compliance Prior to making such determination with respect to any such entity the concerned Secretary shall provide such entity with adequate notification and an opportunity to comply with such reclamation requirements and other standards and shall consider whether any administrative or judicial appeal is pending. Once the entity has complied with the reclamation requirement or other standard concerned an oil or gas lease may be issued to such entity under this Act. (D) Limitation on bonds A bond, surety, or other financial arrangement described in subparagraph (A) shall not be adequate if it is less than— (i) $50,000 in the case of an arrangement for an individual surface-disturbing activity of an entity; (ii) $250,000 in the case of an arrangement for all surface-disturbing activities of an entity in a State; or (iii) $1,000,000 in the case of an arrangement for all surface-disturbing activities of an entity in the United States. (E) Adjustments for inflation In the application of subparagraph (B), the Secretaries concerned shall jointly at least once every three years adjust the dollar amounts in subparagraph (B) to account for inflation based on the Consumer Price Index for all urban consumer published by the Department of Labor. (5) Standards The Secretary of the Interior and the Secretary of Agriculture shall, by regulation, establish uniform standards for all Interim and Final Reclamation Plans. The goal of such plans shall be the restoration of the affected ecosystem to a condition approximating or equal to that which existed prior to the surface disturbance. Such standards shall include restoration of natural vegetation and hydrology, habitat restoration, salvage, storage and reuse of topsoils, erosion control, control of invasive species and noxious weeds and natural contouring. (6) Monitoring The Secretary concerned shall not approve final abandonment and shall not release any bond required by this Act until the standards and requirement for final reclamation established pursuant to this Act have been met. .

Summary: Bonding Reform and Taxpayer Protection Act of 2019 This bill revises bonding requirements for oil and gas development. Specifically, the bill increases the amount of bond that oil and gas developers must provide prior to conducting surface-disturbing activities and requires such amounts to adjust every three years for inflation. The bill also requires the Department of the Interior and the Department of Agriculture to establish uniform standards for all interim and final reclamation plans and not release any bond amounts until the standards have been met by oil and gas developers.