318 
such notice, the matter shall be referred to 
third party arbitration for resolution within a 
period of 90 days. The cost of such arbitration 
shall be the responsibility of the operator. 
(B) IDENTIFICATION OF ARBITERS.—The 
Secretary shall identify persons with experience 
in conducting arbitrations and shall make this 
information available to operators and surface 
owners. 
(C) REFERRAL
TO
IDENTIFIED
ARBI-
TER.—Referral of a matter for arbitration by a 
person identified by the Secretary pursuant to 
subparagraph (B) shall be sufficient to con-
stitute compliance with subparagraph (A). 
(4) ATTORNEYS FEES.—If action is taken to 
enforce or interpret any of the terms and conditions 
contained in a surface use agreement, the prevailing 
party shall be reimbursed by the other party for rea-
sonable attorneys fees and actual costs incurred, in 
addition to any other relief which a court or arbitra-
tion panel may grant. 
(c) AUTHORIZED EXPLORATION AND DRILLING OP-
ERATIONS.— 
(1) AUTHORIZATION
WITHOUT
SURFACE
USE 
AGREEMENT.—The Secretary may authorize an op-
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319 
erator to conduct exploration and drilling operations 
on lands covered by subsection (b) in the absence of 
an agreement with the surface estate owner or own-
ers, if— 
(A) the Secretary makes a determination 
in writing that the operator made a good faith 
attempt to conclude such an agreement, includ-
ing referral of the matter to arbitration pursu-
ant to subsection (b)(3), but that no agreement 
was concluded within 90 days after the referral 
to arbitration; 
(B) the operator submits a plan of oper-
ations that provides for the matters specified in 
subsection (b)(2) and for compliance with all 
other applicable requirements of Federal and 
State law; and 
(C) the operator posts a bond or other fi-
nancial assurance in an amount the Secretary 
determines to be adequate to ensure compensa-
tion to the surface estate owner for any dam-
ages to the site, in the form of a surety bond, 
trust fund, letter of credit, government security, 
certificate of deposit, cash, or equivalent. 
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320 
(2) SURFACE
OWNER
PARTICIPATION.—The 
Secretary shall provide surface estate owners with 
an opportunity to— 
(A) comment on plans of operations in ad-
vance of a determination of compliance with 
this section; 
(B) participate in bond level determina-
tions and bond release proceedings under this 
subsection; 
(C) attend an on-site inspection during 
such determinations and proceedings; 
(D) file written objections to a proposed 
bond release; and 
(E) request and participate in an on-site 
inspection when they have reason to believe 
there is a violation of the terms and conditions 
of a plan of operations. 
(3) PAYMENT OF FINANCIAL GUARANTEE.—A 
surface estate owner with respect to any land subject 
to a lease may petition the Secretary for payment of 
all or any portion of a bond or other financial assur-
ance required under this subsection as compensation 
for any damages as a result of exploration and drill-
ing operations. Pursuant to such a petition, the Sec-
retary may use such bond or other guarantee to pro-
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