324 
shall depend upon the reclamation requirements of the ap-
proved permit; shall reflect the probable difficulty of rec-
lamation giving consideration to such factors as topog-
raphy, geology of the site, hydrology, and revegetation po-
tential; and shall be determined by the Secretary. The 
amount of the bond or other financial assurances shall be 
sufficient to assure the completion of the reclamation plan 
if the work had to be performed by the Secretary in the 
event of forfeiture. 
‘‘(s) REGULATIONS.—No later than one year after 
the date of the enactment of this subsection, the Secretary 
shall promulgate regulations to implement the require-
ments, including for the release of bonds or other financial 
assurances, of subsections (q) and (r).’’. 
SEC. 7223. PROTECTION OF WATER RESOURCES. 
(a) MINERAL LEASING ACT REQUIREMENTS.—Sec-
tion 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
further amended by adding at the end the following: 
‘‘(t) WATER REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An operator producing oil 
or gas (including coalbed methane) under a lease 
issued under this Act shall— 
‘‘(A) remediate or replace the water supply 
of a water user who obtains all or part of such 
user’s supply of water for domestic, agricul-
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325 
tural, or other purposes from an underground 
or surface source that has been affected by con-
tamination, diminution, or interruption proxi-
mately resulting from drilling operations for 
such production; and 
‘‘(B) comply with all applicable require-
ments of Federal and State law for discharge of 
any water produced under the lease. 
‘‘(2) WATER MANAGEMENT PLAN.—An applica-
tion for a permit to drill submitted pursuant to a 
lease issued under this Act shall be accompanied by 
a proposed water management plan including provi-
sions to— 
‘‘(A) protect the quantity and quality of 
surface and ground water systems, both on-site 
and off-site, from adverse effects of the explo-
ration, development, and reclamation processes 
or to provide alternative sources of water if 
such protection cannot be assured; 
‘‘(B) protect the rights of present users of 
water that would be affected by operations 
under the lease, including the discharge of any 
water produced in connection with such oper-
ations that is not reinjected; and 
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‘‘(C) identify any agreements with other 
parties for the beneficial use of produced waters 
and the steps that will be taken to comply with 
State and Federal laws related to such use.’’. 
(b) RELATION
TO STATE LAW.—Nothing in this 
chapter or any amendment made by this chapter shall— 
(1) be construed as impairing or in any manner 
affecting any right or jurisdiction of any State with 
respect to the waters of such State; or 
(2) be construed as limiting, altering, modi-
fying, or amending any of the interstate compacts or 
equitable apportionment decrees that apportion 
water among and between States. 
(c) REGULATIONS.—No later than one year after the 
date of the enactment of this Act, the Secretary of the 
Interior shall promulgate regulations to implement this 
section. 
(d) INTENT OF CONGRESS.—Nothing in this section 
shall be construed to be intended by Congress as a prece-
dent for oil and gas management on State or privately 
owned land. 
SEC. 7224. DUE DILIGENCE FEE. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
shall, within 180 days after the date of enactment of this 
Act, issue regulations to establish a fee with respect to 
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Federal onshore lands that are subject to a lease for pro-
duction of oil, natural gas, or coal under which production 
is not occurring. Such fee shall apply with respect to lands 
that are subject to such a lease that is in effect on the 
date final regulations are promulgated under this sub-
section or that is issued thereafter. 
(b) AMOUNT.—The amount of the fee shall be $1 per 
year for each acre of land that is not in production for 
that year. 
(c) ASSESSMENT AND COLLECTION.—The Secretary 
shall assess and collect the fee established under this sec-
tion. 
(d) DEPOSIT AND USE.—Amounts received by the 
United States in the form of the fee established under this 
section shall be available to the Secretary of the Interior 
for use to repair damage to Federal lands and resources 
caused by oil and gas development, in accordance with the 
the documents submitted by the President with the budget 
submission for fiscal year 2008 relating to the Healthy 
Lands Initiative. Amounts received by the United States 
as fees under this section shall be treated as offsetting 
receipts. 
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