321 
vide compensation to the surface estate owner for 
such damages. 
(4) BOND RELEASE.—Upon request and after 
inspection and opportunity for surface estate owner 
review, the Secretary may release the financial as-
surance required under this subsection if the Sec-
retary determines that exploration and drilling oper-
ations have ended and all damages have been fully 
compensated. 
(d) SURFACE
OWNER
NOTIFICATION.—The Sec-
retary shall— 
(1) notify surface estate owners in writing at 
least 45 days in advance of lease sales; 
(2) within ten working days after a lease is 
issued, notify surface estate owners regarding the 
identity of the lessee; 
(3) notify surface estate owners in writing with-
in 10 working days concerning any subsequent deci-
sions regarding a lease, such as modifying or 
waiving stipulations and approving rights-of-way; 
and 
(4) notify surface estate owners within five 
business days after issuance of a drilling permit 
under a lease. 
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322 
(e) REGULATIONS.—The Secretary shall issue regula-
tions implementing this section by not later than 1 year 
after the date of the enactment of this Act. 
(f) RELATIONSHIP TO STATE LAW.—Nothing in this 
section preempts applicable State law or regulation relat-
ing to surface owner protection. 
SEC. 7222. ONSHORE OIL AND GAS RECLAMATION AND 
BONDING. 
Section 17 of the Mineral Leasing Act (30 U.S.C. 
226) is amended by adding at the end the following: 
‘‘(q) RECLAMATION REQUIREMENTS.—An operator 
producing oil or gas (including coalbed methane) under 
a lease issued pursuant to this Act shall— 
‘‘(1) at a minimum restore the land affected to 
a condition capable of supporting the uses that it 
was capable of supporting prior to any drilling, or 
higher or better uses of which there is reasonable 
likelihood, so long as such use or uses do not present 
any actual or probable hazard to public health or 
safety or pose any actual or probable threat of water 
diminution or pollution, and the permit applicants’ 
declared proposed land use following reclamation is 
not impractical or unreasonable, inconsistent with 
applicable land use policies and plans, or involve un-
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323 
reasonable delay in implementation, or is violative of 
Federal or State law; 
‘‘(2) ensure that all reclamation efforts proceed 
in an environmentally sound manner and as contem-
poraneously as practicable with the oil and gas drill-
ing operations; and 
‘‘(3) submit with the plan of operations a rec-
lamation plan that describes in detail the methods 
and practices that will be used to ensure complete 
and timely restoration of all lands affected by oil 
and gas operations. 
‘‘(r) RECLAMATION BOND OR OTHER FINANCIAL AS-
SURANCES.—An operator producing oil or gas (including 
coalbed methane) under a lease issued under this Act shall 
post a bond or other financial assurances that cover the 
reclamation of that area of land within the permit area 
upon which the operator will initiate and conduct oil and 
gas drilling and reclamation operations within the initial 
term of the permit. As succeeding increments of oil and 
gas drilling and reclamation operations are to be initiated 
and conducted within the permit area, the lessee shall file 
with the regulatory authority an additional bond or bonds 
or other financial assurances to cover such increments in 
accordance with this section. The amount of the bond or 
other financial assurances required for each bonded area 
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