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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Protecting Rural Landscapes Act of
2010''.

SEC. 2. SPLIT ESTATE.

(a) In General.--Section 17 of the Mineral Leasing Act (30 U.S.C.
226) is amended by adding at the end the following:
''(q) Split Estates.--
''(1) Definitions.--In this subsection:
''(A) Covered land.--The term 'covered land' means
land with respect to which--
''(i) title to oil and gas resources is
held by the United States; but
''(ii) title to the surface estate is not
held by the United States.
''(B) Lease.--The term 'lease' means a lease issued
by the Secretary under this Act that provides for the
development of oil and gas resources (including coalbed
methane) on covered land.
''(C) Lessee.--The term 'lessee' means the holder
of a lease for the development of oil and gas resources
on covered land.
''(D) Oil and gas operations.--The term 'oil and
gas operations' means all activities affecting the
interest of a surface owner in covered land that are
associated with exploration, drilling, or production of
oil and gas, through final reclamation of the affected
surface.
''(E) Operator.--The term 'operator' means a person
with the legal right to conduct oil and gas operations
on covered land.
''(F) Secretary.--The term 'Secretary' means the
Secretary of the Interior.
''(G) Surface owner.--The term 'surface owner'
means a person who holds legal or equitable title, as
demonstrated in the records of the applicable county
clerk or other local government official, to the
surface of the covered land on which the operator has
the right to conduct oil and gas operations.
''(2) Compensation and reclamation.--
''(A) In general.--An operator shall compensate the
surface owner for damages resulting from the oil and
gas operations of the operator on land affected by the
operations from--
''(i) loss of agricultural production and
income;
''(ii) lost land value;
''(iii) lost use of and lost access to the
land of the surface owner; and
''(iv) the lost value of improvements.
''(B) Reclamation.--An operator shall reclaim the
surface affected by the oil and gas operations of the
operator.
''(3) Notice of operations.--
''(A) Prior to initial entry.--Prior to initial
entry for activities that do not disturb the surface,
the operator shall provide at least five days notice by
certified mail or hand delivery to the surface owner.
''(B) Operations.--Prior to commencing oil and gas
operations, the operator shall provide not less than 30
days notice by certified mail or hand delivery to the
surface owner with sufficient disclosure of the planned
operations to enable the surface owner to evaluate the
effect of the operations.
''(C) Place of notice delivery.--The notices
required by this section shall be given to the surface
owner at the address shown by the records of the county
clerk at the time the notice is given.
''(D) Notice deemed received.--Notices required by
this section shall be deemed to have been received five
days after mailing by certified mail or immediately
upon hand delivery.
''(4) Surface use agreement.--
''(A) Surface use agreement.--At the time of
providing notice of operations under paragraph (3)(B),
the operator shall provide to the surface owner a
proposed surface use agreement that--
''(i) to the extent known, specifies
sufficient disclosure of the planned oil and
gas operations to enable the surface owner to
evaluate the effect of the operations on the
property, including--
''(I) placement, specifications,
maintenance and design of facilities,
equipment and roads;
''(II) terms of ingress and egress;
''(III) water protection (quality
and quantity);
''(IV) proposed reclamation; and
''(V) actions to minimize surface
damages to the land including runoff
and erosion; and
''(ii) includes an offer of compensation
for damages to the surface affected by oil and
gas operations.
''(B) Procedure.--
''(i) In general.--Not later than 30 days
after the date of receipt of the proposed
surface use agreement, the surface owner may
accept or reject the agreement.
''(ii) Failure to accept.--Failure to
accept the agreement during the 30-day period
described in clause (i) may be considered a
rejection of the agreement.
''(C) Negotiations.--The surface owner and operator
may enter into negotiations regarding the surface use
agreement.
''(D) Agreement.--The operator and the surface
owner may enter into a mutually acceptable agreement
that specifies the rights and obligations of the
parties with respect to the surface activities
conducted by the operator.
''(5) Entry without agreement; bond.--
''(A) In general.--In lieu of executing a surface
use agreement under paragraph (4)(A), the operator may
enter the property of the surface owner and conduct oil
and gas operations as provided in this section.
''(B) Financial assurance.--The operator shall
provide an appropriate financial assurance for the
benefit of the surface owner, as determined by the
Secretary, prior to commencing operations under this
paragraph.
''(C) Release of financial assurance.--The
Secretary shall provide for the appropriate release of
the financial assurance on a determination that--
''(i) the reclamation is complete; and
''(ii) the surface owner has been
compensated for any damages.
''(6) Notice of secretarial action with respect to federal
leases.--The Secretary shall make reasonable efforts to provide
to each surface owner of affected covered land, and to each
permittee or right-of-way holder with the right to use the
surface of affected Federal land, written notice of--
''(A) any lease sale for an oil or gas lease under
this Act by not later than 30 days before the date of
the lease sale; and
''(B) the issuance of a drilling permit by not
later than 5 days before the date of issuance.
''(7) Relationship to state law.--Nothing in this
subsection preempts any applicable State law.''.
(b) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior shall promulgate
such regulations as are necessary to carry out the amendment made by
subsection (a).
Protecting Rural Landscapes Act of 2010 - Amends the Mineral Leasing Act, with respect to the lease of oil and gas lands, to require a person with the legal right to conduct oil and gas operations on covered land (operator) to compensate the surface owner for damages resulting from: (1) loss of agricultural production and income; (2) lost land value; (3) lost use of and lost access to the land; and (4) the lost value of improvements. Requires the operator to reclaim the affected surface.

Requires the operator to give notice prior to: (1) initial entry for activities that do not disturb the surface; and (2) commencing oil and gas operations. Requires the operator, at the time of providing notice of commencement of oil and gas operations, to provide the surface owner with a proposed surface use agreement that includes an offer of compensation for damages to the surface affected by oil and gas operations.

Requires an operator to provide the surface owner with appropriate financial assurance of reclamation in lieu of executing a surface use agreement.

Requires the Secretary of the Interior to provide notice of upcoming lease sales and drilling permits to each: (1) surface owner of affected covered land; and (2) permittee or right-of-way holder with the right to use the surface of affected federal land.