PEOPLE Act of 2021
Bill: S.2170 | Sponsor: Sen. Bennet, Michael F. (D-CO)
Policy area: Energy

Summary:
Public Engagement Opportunity on Public Land Exploration Act of 2021 or the PEOPLE Act of 2021
This bill expands requirements related to issuing oil and gas leases on federal land. Specifically, the bill expands requirements related to public notice and comment periods with respect to oil and gas lease sales, including by requiring information about the person or entities submitting bids for leases. The bill also requires the lease sales to be reviewed under the National Environmental Policy Act of 1969.
In addition, the Department of the Interior may only issue such leases to exploration and drilling operators if the operators sign post-lease surface use agreements with the surface estate owners. Under the agreements, operators must agree to reclaim the land and provide compensation for any damages resulting from the exploration and drilling operations.

To amend the Mineral Leasing Act to provide for transparency and 
landowner protections in the conduct of lease sales under that Act, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Engagement Opportunity on 
Public Land Exploration Act of 2021'' or the ``PEOPLE Act of 2021''.

SEC. 2. TRANSPARENCY AND LANDOWNER PROTECTIONS.

    (a) Requirements for Inclusion of Land Identified in Expressions of 
Interest in Lease Sales.--Section 17(b) of the Mineral Leasing Act (30 
U.S.C. 226(b)) is amended by adding at the end the following:
            ``(4) Requirements for inclusion of land identified in 
        expressions of interest in lease sales.--
                    ``(A) In general.--A member of the public may 
                submit to the Secretary an expression of interest that 
                identifies land for consideration for inclusion by the 
                Secretary in a lease sale under this section.
                    ``(B) Inclusion of land in lease sale.--Subject to 
                the requirements of this section, the Secretary may 
                include in a lease sale under this section the land 
                identified under an expression of interest received by 
                the Secretary.
                    ``(C) Notification.--On receipt of an expression of 
                interest, the Secretary shall notify by certified mail, 
                electronic mail, and electronic posting on the website 
                of the relevant leasing or land management agency--
                            ``(i) any owners of surface rights on land 
                        identified under the expression of interest;
                            ``(ii) any holders of recreational or 
                        special use permits on the land;
                            ``(iii) any holders of grazing rights on 
                        the land;
                            ``(iv) any owner of a water right the water 
                        of which originates on or flows over the land;
                            ``(v) any owner of a water conveyance 
                        structure, such as a ditch, on the land; and
                            ``(vi) the local government with 
                        jurisdiction over the area in which the land is 
                        located.
                    ``(D) Transparency.--
                            ``(i) In general.--The Secretary shall 
                        require that each bid for a lease described in 
                        subparagraph (B) include--
                                    ``(I) the name of the person or 
                                entity submitting the bid, including 
                                the name of all subsidiaries, 
                                affiliates, and entities controlled by, 
                                or under common control with, the 
                                person or entity;
                                    ``(II) if an agent is submitting 
                                the bid on behalf of a person or 
                                entity, the name of the person or 
                                entity on behalf of which the agent is 
                                acting, including all subsidiaries, 
                                affiliates, and entities controlled by, 
                                or under common control with, the 
                                person or entity; and
                                    ``(III) if the person or entity 
                                submitting the bid is the person or 
                                entity that submitted the applicable 
                                expression of interest, or if an agent 
                                is submitting the bid on behalf of the 
                                person or entity that submitted the 
                                applicable expression of interest, a 
                                disclosure of that fact.
                            ``(ii) Publication.--The Secretary shall 
                        publish on the website of the relevant leasing 
                        or land management agency each name disclosed 
                        in a bid under clause (i).''.
    (b) Notice Requirements.--Section 17(f) of the Mineral Leasing Act 
(30 U.S.C. 226(f)) is amended--
            (1) in the sixth sentence, by striking ``The requirements'' 
        and inserting the following:
            ``(6) Applicability of other notice requirements.--The 
        requirements'';
            (2) in the fifth sentence, by striking ``Such maps'' and 
        inserting the following:
                    ``(C) Location.--A map included in a notice under 
                paragraph (1)'';
            (3) in the fourth sentence, by striking ``Where the 
        inclusion of maps in such notice'' and inserting the following:
                    ``(B) Availability.--If the inclusion of maps in a 
                notice under paragraph (1)'';
            (4) in the third sentence, by striking ``Such notice'' and 
        inserting the following:
            ``(2) Required inclusions.--
                    ``(A) In general.--A notice required under 
                paragraph (1)'';
            (5) by striking ``(f) At least'' and all that follows 
        through ``land management agencies.'' and inserting the 
        following:
    ``(f) Notice Requirements.--
            ``(1) In general.--Not later than 90 days before offering 
        land for lease under this section, and not later than 30 days 
        before approving an application for permit to drill under the 
        provisions of a lease issued under this section, modifying the 
        terms of any lease issued under this section, or granting a 
        waiver, exception, or modification of any stipulation of a 
        lease issued under this section, the Secretary shall--
                    ``(A) post notice in the appropriate local offices, 
                and on the electronic websites, of the leasing and land 
                management agencies offering the land for lease;
                    ``(B) notify by certified mail and electronic mail 
                any--
                            ``(i) owners of surface rights on the land 
                        covered by the lease;
                            ``(ii) holders of special recreation 
                        permits for commercial use, competitive events, 
                        or other organized activities on the land 
                        covered by the lease;
                            ``(iii) holders of grazing rights on the 
                        land covered by the lease;
                            ``(iv) owner of a water right the water of 
                        which originates on or flows over the land;
                            ``(v) owner of a water conveyance 
                        structure, such as a ditch, on the land; and
                            ``(vi) as applicable, members of the public 
                        who have submitted to the Secretary a request 
                        to receive notice regarding proposed actions of 
                        the Secretary applicable to--
                                    ``(I) a geographic area; or
                                    ``(II) a resource.''; and
            (6) by inserting after paragraph (2) (as so designated) the 
        following:
            ``(3) Additional requirements.--
                    ``(A) In general.--Before determining the parcels 
                to be included in a lease sale under this section, the 
                Secretary shall provide a scoping period of not less 
                than 30 days during which the Secretary shall provide 
                public notice and an opportunity for comment regarding 
                all parcels that may be included in the lease sale.
                    ``(B) Environmental analysis.--
                            ``(i) Public notice and comment.--Before 
                        conducting a lease sale under this section, the 
                        Secretary, in complying with the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.), shall ensure that the public has 
                        the period of time required under that Act to 
                        comment on any environmental analysis carried 
                        out with respect to the lease sale.
                            ``(ii) Requirement.--The period for public 
                        comment under clause (i) shall be not less than 
                        30 days.
                    ``(C) Requirement to conduct nepa analysis.--
                            ``(i) In general.--Before conducting a 
                        lease sale under this section, the Secretary 
                        shall conduct an analysis under the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.) unless the Secretary determines 
                        that--
                                    ``(I) the proposed action is 
                                adequately covered by relevant existing 
                                analyses under that Act, such as an 
                                environmental impact statement or 
                                environmental assessment (including 
                                supporting data and records);
                                    ``(II) the proposed action is in 
                                conformance with the relevant land use 
                                plan; and
                                    ``(III) there are no new 
                                circumstances, new information, or 
                                unanticipated or unanalyzed 
                                environmental impacts that warrant new 
                                or supplemental analysis.
                            ``(ii) Public notice and comment.--Before 
                        making a determination under clause (i) that an 
                        analysis under the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4321 et seq.) is 
                        not required with respect to a lease sale under 
                        this section, the Secretary shall provide a 
                        period of public comment for that determination 
                        of not less than 30 days.
                    ``(D) NEPA analysis requirements.--
                            ``(i) In general.--Any analysis prepared 
                        pursuant to the National Environmental Policy 
                        Act of 1969 (42 U.S.C. 4321 et seq.) for a 
                        lease sale under this section shall address all 
                        parcels being considered for sale.
                            ``(ii) Restriction.--No parcel may be 
                        included in a lease sale under this section--
                                    ``(I) without compliance with--
                                            ``(aa) the public notice 
                                        and comment requirements of 
                                        this subsection; and
                                            ``(bb) the National 
                                        Environmental Policy Act of 
                                        1969 (42 U.S.C. 4321 et seq.); 
                                        and
                                    ``(II) unless the parcel is 
                                specifically identified and considered 
                                in the analysis for that specific lease 
                                sale carried out in compliance with the 
                                National Environmental Policy Act of 
                                1969 (42 U.S.C. 4321 et seq.).
                    ``(E) Surface management by another federal 
                agency.--With respect to a parcel the surface of which 
                is managed by another Federal agency, the parcel may 
                not be included in a lease sale under this section 
                without the consent of that Federal agency for that 
                specific lease sale.
                    ``(F) Protests.--
                            ``(i) In general.--Any party may file a 
                        protest regarding the inclusion of a parcel in 
                        a lease sale under this section.
                            ``(ii) Deadline; method of filing.--A 
                        protest under clause (i)--
                                    ``(I) shall be filed by the date 
                                that is not later than 45 days after 
                                the date on which the Secretary gives 
                                notice of the lease sale under 
                                paragraph (1); and
                                    ``(II) may be filed by electronic 
                                mail.
            ``(4) Local governments.--Before taking any action for 
        which notice or opportunity for comment is required under this 
        subsection, the Secretary shall provide to local governments 
        with jurisdiction over the area in which land covered by a 
        proposed action is located notice and an opportunity for 
        comment that meets or exceeds the requirements for notice and 
        opportunity for comment under this subsection.
            ``(5) Indian tribes.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Cultural site.--The term `cultural 
                        site' means--
                                    ``(I) a sacred site;
                                    ``(II) a historic property (as 
                                defined in section 800.16 of title 36, 
                                Code of Federal Regulations (as in 
                                effect on the date of enactment of the 
                                PEOPLE Act of 2021)); and
                                    ``(III) a landform or landscape 
                                that--
                                            ``(aa) is the site of 
                                        important customs, practices, 
                                        objects, places, or ceremonies 
                                        of Indian Tribes;
                                            ``(bb) is important to an 
                                        Indian Tribe for the 
                                        undertaking of religious, 
                                        cultural, spiritual, or 
                                        traditional practices;
                                            ``(cc) is connected through 
                                        features or ceremonies to other 
                                        sites or a larger sacred 
                                        landscape; or
                                            ``(dd) contains important 
                                        traditional food or material 
                                        gathering areas.
                            ``(ii) Former reservation.--The term 
                        `former reservation' means land that is within 
                        the exterior boundaries of any previous 
                        reservation that was established by treaty, 
                        Executive order, or Secretarial order for an 
                        Indian Tribe.
                            ``(iii) Indian tribe.--The term `Indian 
                        Tribe' means an Indian tribe included on the 
                        list published by the Secretary under section 
                        104 of the Federally Recognized Indian Tribe 
                        List Act of 1994 (25 U.S.C. 5131).
                            ``(iv) Interested indian tribe.--The term 
                        `interested Indian Tribe', with respect to land 
                        under consideration for inclusion by the 
                        Secretary in a lease sale under this section, 
                        means an Indian Tribe with--
                                    ``(I) historic, prehistoric, 
                                cultural, or religious connection to a 
                                cultural site located on the land;
                                    ``(II) a former reservation located 
                                on the land; or
                                    ``(III) treaty rights or other 
                                reserved rights that can be exercised 
                                on the land.
                            ``(v) Sacred site.--The term `sacred site' 
                        means a specific, discrete, narrowly delineated 
                        site on land subject to leasing under this 
                        section that is identified by an Indian Tribe 
                        as sacred by virtue of the established 
                        religious significance of the site to, or 
                        ceremonial use of the site by, an Indian Tribe.
                    ``(B) Notice and opportunity for comment; formal 
                consultation.--Before taking any action for which 
                notice or opportunity for comment is required under 
                this subsection, the Secretary shall--
                            ``(i) provide any interested Indian Tribe 
                        notice and an opportunity for comment that 
                        meets or exceeds the requirements for notice 
                        and opportunity for comment under this 
                        subsection; and
                            ``(ii) at the request of any interested 
                        Indian Tribe, initiate formal consultation with 
                        the interested Indian Tribe regarding the 
                        proposed action.''.
    (c) Surface Estate Owner Protection.--Section 17 of the Mineral 
Leasing Act (30 U.S.C. 226) is amended by adding at the end the 
following:
    ``(q) Surface Estate Owner Protection.--
            ``(1) Definition of covered land.--In this subsection, the 
        term `covered land' means land subject to a lease under this 
        section--
                    ``(A) the title to the oil and gas resources of 
                which is held by the United States; but
                    ``(B) the title to the surface estate of which is 
                not held by the United States.
            ``(2) Post-lease surface use agreement.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), the Secretary shall not authorize any operator to 
                conduct exploration and drilling operations on covered 
                land until the operator files with the Secretary a 
                document, signed by the operator and the 1 or more 
                surface estate owners, demonstrating that the operator 
                has secured a written surface use agreement between the 
                operator and the 1 or more surface estate owners that 
                meets the requirements of subparagraph (B).
                    ``(B) Contents.--The surface use agreement under 
                subparagraph (A) shall provide for--
                            ``(i) the use by the operator of only such 
                        portion of the surface estate as is reasonably 
                        necessary for exploration and drilling 
                        operations based on site-specific conditions;
                            ``(ii) the accommodation of the surface 
                        estate owner to the maximum extent practicable, 
                        including the location, use, timing, and type 
                        of exploration and drilling operations, 
                        consistent with the right of the operator to 
                        develop the oil and gas estate;
                            ``(iii) placement, specifications, 
                        maintenance, and design of well pads, gathering 
                        pipelines, and roads to be constructed for oil 
                        and gas operations, to the extent known;
                            ``(iv) terms of ingress and egress on the 
                        surface of the land for oil and gas operations;
                            ``(v) construction, maintenance, and 
                        placement of all pits and equipment used or 
                        planned for oil and gas operations, to the 
                        extent known;
                            ``(vi) use and impoundment of water on the 
                        surface of the land;
                            ``(vii) removal and restoration of plant 
                        life;
                            ``(viii) surface water drainage changes;
                            ``(ix) actions to limit and effectively 
                        control precipitation runoff and erosion;
                            ``(x) control and management of noise, 
                        weeds, dust, traffic, trespass, litter, and 
                        interference with the use of the surface estate 
                        owner;
                            ``(xi) operator indemnification for injury 
                        to persons caused by the operator or a 
                        subcontractor or agent of the operator;
                            ``(xii) the reclamation of the site to a 
                        condition capable of supporting the uses that 
                        the land was capable of supporting prior to 
                        exploration and drilling operations; and
                            ``(xiii) compensation for damages resulting 
                        from exploration and drilling operations, 
                        including--
                                    ``(I) loss of income and increased 
                                costs incurred;
                                    ``(II) groundwater contamination 
                                and negative impacts to air quality;
                                    ``(III) damage to, or destruction 
                                of, personal property, including crops, 
                                forage, and livestock; and
                                    ``(IV) failure to reclaim the site 
                                in accordance with clause (xii).
                    ``(C) Procedure.--
                            ``(i) Notice of intent to enter into 
                        agreement.--An operator shall notify the 1 or 
                        more surface estate owners of the desire of the 
                        operator to conclude an agreement under this 
                        paragraph by certified mail or electronic mail.
                            ``(ii) Arbitration.--
                                    ``(I) In general.--If the surface 
                                estate owner and the operator do not 
                                reach an agreement under clause (i) by 
                                the date that is 90 days after the date 
                                on which the operator provides notice 
                                under that clause, the operator may 
                                submit the matter to third-party 
                                arbitration.
                                    ``(II) Deadline for arbitration.--
                                An arbitration under subclause (I) 
                                shall be concluded within a period of 
                                90 days.
                                    ``(III) Cost.--The cost of an 
                                arbitration under subclause (I) shall 
                                be the responsibility of the operator.
                                    ``(IV) List of arbitrators.--The 
                                Secretary shall make publicly available 
                                a list of persons who are qualified to 
                                arbitrate disputes under this clause.
                                    ``(V) Qualifications of 
                                arbitrators.--In order to arbitrate a 
                                dispute under this clause, an 
                                arbitrator shall meet the minimum 
                                qualification criteria of the American 
                                Arbitration Association, including--
                                            ``(aa) a minimum of 10 
                                        years of senior-level business 
                                        or professional experience or 
                                        legal practice;
                                            ``(bb) an educational 
                                        degree or professional licenses 
                                        appropriate to the oil and gas 
                                        industry;
                                            ``(cc) training or 
                                        experience in arbitration or 
                                        other forms of dispute 
                                        resolution; and
                                            ``(dd) membership in 
                                        relevant professional 
                                        associations.
                                    ``(VI) Referral.--Referral of a 
                                matter for arbitration by an operator 
                                to an arbitrator identified by the 
                                Secretary pursuant to subclause (IV) 
                                shall be sufficient to constitute 
                                compliance with subclause (V).
            ``(3) Authorized exploration and drilling operations.--
                    ``(A) Authorization without surface use 
                agreement.--
                            ``(i) In general.--The Secretary may 
                        authorize an operator to conduct exploration 
                        and drilling operations on covered land without 
                        first securing a surface use agreement in 
                        accordance with paragraph (2), if--
                                    ``(I) the Secretary makes a 
                                determination in writing that--
                                            ``(aa) the operator made a 
                                        good faith attempt to conclude 
                                        such an agreement, including by 
                                        submitting the matter to 
                                        arbitration in accordance with 
                                        subclause (I) of paragraph 
                                        (2)(C)(ii); but
                                            ``(bb) an agreement was not 
                                        concluded by the deadline under 
                                        subclause (I) or (II), as 
                                        applicable, of that paragraph;
                                    ``(II) the operator submits a plan 
                                of operations that provides for--
                                            ``(aa) the matters 
                                        described in paragraph (2)(B); 
                                        and
                                            ``(bb) compliance with all 
                                        other applicable requirements 
                                        of Federal and State law; and
                                    ``(III) the operator posts a bond 
                                or other financial assurance in the 
                                form of a surety bond, trust fund, 
                                letter of credit, government security, 
                                certificate of deposit, cash, or 
                                equivalent in an amount the Secretary 
                                determines to be adequate to ensure 
                                compensation to the 1 or more surface 
                                estate owners for any damages to, or 
                                reclamation of, the site.
                            ``(ii) Limitation.--Self-bonding shall not 
                        be an acceptable form of financial assurance 
                        under clause (i)(III).
                    ``(B) Surface estate owner participation.--In 
                addition to any participation opportunities provided to 
                members of the public under this section, with respect 
                to a lease issued under this section for covered land, 
                the Secretary shall provide surface estate owners 
                with--
                            ``(i) before authorizing an operator to 
                        conduct exploration and drilling operations on 
                        the covered land, a period of not less than 30 
                        days to comment on the plans of operations of 
                        the operator;
                            ``(ii) an opportunity to participate in 
                        bond level determinations and bond release 
                        proceedings under subsection (g);
                            ``(iii) an opportunity to attend any onsite 
                        inspection carried out for the purpose of a 
                        determination or proceeding under clause (ii);
                            ``(iv) an opportunity to file written 
                        objections to a proposed bond release; and
                            ``(v) an opportunity to request and 
                        participate in an onsite inspection if the 
                        surface estate owner has reason to believe 
                        there is a violation of the terms and 
                        conditions of the plan of operations of the 
                        operator.
                    ``(C) Payment of financial guarantee.--
                            ``(i) In general.--The owner of the surface 
                        estate of covered land subject to a lease 
                        issued under this section may petition the 
                        Secretary for payment of all or any portion of 
                        a bond or other financial assurance required 
                        under subsection (g) as compensation for any 
                        damages resulting from exploration and drilling 
                        operations pursuant to the lease.
                            ``(ii) Form of compensation.--If the 
                        Secretary approves the petition under clause 
                        (i), the Secretary may use the bond or other 
                        financial assurance referred to in that clause 
                        to provide compensation to the surface estate 
                        owner for the damages described in the 
                        petition.
            ``(4) Surface estate owner notification.--In addition to 
        any notice provided to members of the public under this 
        section, with respect to a lease of covered land under this 
        section, the Secretary shall notify the 1 or more surface 
        estate owners by certified mail, electronic mail, and 
        electronic posting on the website of the relevant leasing or 
        land management agency--
                    ``(A) of the lease sale by not later than 90 days 
                before conducting the lease sale;
                    ``(B) of the identity and address of the lessee by 
                not later than 10 business days after the lease is 
                issued;
                    ``(C) of any subsequent request or decision 
                regarding the lease, including any request or decision 
                to modify the lease, waive a stipulation, or approve a 
                right of way, by not later than 5 business days after 
                the Secretary receives the request or makes the 
                decision; and
                    ``(D) of any issuance of a permit to drill under 
                the lease, by not later than 5 business days after 
                issuance of the permit.
            ``(5) Bonds or financial assurances.--
                    ``(A) In general.--With respect to a lease of 
                covered land under this section, the Secretary shall 
                notify the 1 or more surface estate owners by certified 
                mail, electronic mail, and electronic posting on the 
                website of the relevant leasing or land management 
                agency by not later than 30 days before establishing or 
                releasing a bond or other financial assurance under 
                subsection (g).
                    ``(B) Objections.--If a surface estate owner 
                objects to the amount of the bond or other financial 
                assurance to be required for a lease of covered land, 
                the Secretary shall respond in writing to the 
                objections of the surface estate owner, including a 
                description of the rationale for the amount.
                    ``(C) Release of bond of other financial 
                assurance.--The Secretary may release the bond or other 
                financial assurance required for a lease of covered 
                land only if--
                            ``(i) the Secretary determines that 
                        compensation for damages has been paid in 
                        accordance with, as applicable--
                                    ``(I) the terms of the surface use 
                                agreement under paragraph (2)(B)(xiii); 
                                or
                                    ``(II) the determination of the 
                                Secretary under paragraph (3)(A)(iii);
                            ``(ii) the surface estate owner and the 
                        operator have executed, and submitted to the 
                        Secretary, a surface use and compensation 
                        agreement providing that the bond or other 
                        financial assurance should be released;
                            ``(iii) the Secretary determines that--
                                    ``(I) there has been a final 
                                resolution of any action for damages; 
                                and
                                    ``(II) any damages awarded pursuant 
                                to that action have been paid; or
                            ``(iv) the Secretary determines that--
                                    ``(I) all wells on the covered land 
                                have been plugged and abandoned; and
                                    ``(II) the operator has not 
                                conducted oil and gas operations on the 
                                covered land for a period of not less 
                                than 6 years.''.
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