Regulation of surface-disturbing activities

Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is amended— (1) in the sixth sentence— (A) by striking such entity and inserting the operator or other entity; and (B) by striking Once the entity and inserting the following: (C) Issuance of lease after compliance Once the operator or other entity; (2) in the fifth sentence, by striking Prior to making such determination with respect to any such entity the concerned Secretary shall provide such entity with and inserting the following: (B) Requirement for notice and opportunity to comply Before making a determination under subparagraph (A) with respect to any operator or other entity, the Secretary shall provide to the operator or other entity; (3) by striking the fourth sentence and inserting the following: (6) Failure or refusal to comply (A) In general The Secretary shall not issue, or approve the transfer or assignment of, any lease under this section to any operator or other entity, or any subsidiary, affiliate, or person controlled by or under common control of that operator or other entity, during any period in which, as determined by the Secretary, the operator or other entity has failed or refused to comply in any material respect with a reclamation requirement or other standard established under this section that is applicable to any other lease of the operator or other entity.; (4) by striking the third sentence and inserting the following: (4) Financial assurances (A) Requirement (i) In general The Secretary shall promulgate regulations to require that a financial assurance shall be provided by an operator prior to the commencement of activities on any lease issued under this Act to ensure the complete and timely remediation and reclamation of any land, water, or other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) adversely affected by lease activities and operations after the abandonment or cessation of oil and gas operations on the lease. (ii) Elimination of nationwide financial assurances (I) In general An operator may not provide a financial assurance under clause (i) on a nationwide basis for all leases of the operator in the United States. (II) Requirement With respect to any nationwide financial assurance in effect on the date of enactment of the Stop Orphaned Wells Act, the Secretary shall require that, not later than 1 year after that date of enactment, operators shall post replacement financial assurances in accordance with this Act. (B) Amount (i) In general Subject to clause (ii) and (iii), the amount of a financial assurance required under this paragraph shall be the amount determined by the Secretary to be sufficient to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i). (ii) Minimum amounts (I) In general Subject to subclause (II), the minimum amount of a financial assurance required under this paragraph shall be not less than, as applicable— (aa) $200,000, in the case of a financial assurance for surface-disturbing activities on an individual oil or gas lease; or (bb) $650,000, in the case of a financial assurance for all oil and gas leases of an operator in a State. (II) Idled wells Whenever the total number of idled wells of an operator equals or exceeds 50 percent of the total wells owned or operated by the operator, including wells owned or operated by a subsidiary of the operator, the Secretary shall require from that operator a full liability bond for the estimated reclamation and remediation costs associated with all of the operations of the operator. (III) Increased minimum amounts for additional categories of operations (aa) Establishment by regulation In promulgating regulations to carry out this Act, the Secretary shall determine whether higher minimum amounts of financial assurance should be required for any other categories of operations that pose heightened risks of abandonment or environmental harm. (bb) Public petition (AA) In general Any individual may, at any time, file a petition with the Secretary, in such a manner and containing such information as the Secretary may require, to establish an increased minimum amount of financial assurance for a specific category of operations. (BB) Findings On receipt of a petition under subitem (AA), the Secretary shall make detailed findings and provide the petitioner a written response and determination not later than 90 days after receipt of the petition. (CC) Publication If the Secretary determines that a specific category of operations requires an increased minimum amount of financial assurance under subitem (BB), the Secretary shall publish in the Federal Register the determination with the increased amount required not later than 30 days after making that determination. (IV) Adjustments for inflation Not later than 1 year after the date of enactment of the Stop Orphaned Wells Act, and not less frequently than annually thereafter, the Secretary shall adjust for inflation the minimum amounts under subclauses (I) and (III), as applicable. (iii) Additional factors The Secretary shall establish the level of a financial assurance required under this paragraph above the applicable minimum level required under clause (ii) as the Secretary determines to be appropriate or necessary to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i), after taking into consideration the following factors: (I) The depth of each relevant proposed wellbore. (II) The presence of other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value). (III) The number of wells to be drilled on the lease. (IV) The number and percentage of idled wells on— (aa) the applicable lease; and (bb) any other leases held by each applicable operator. (V) Any current or past violations by each operator. (VI) The anticipated condition of the applicable well site and the extent of the remediation and reclamation to be required. (VII) The ability of each operator to fully carry out that remediation and reclamation. (VIII) Such other factors as the Secretary determines to be relevant. (C) Review (i) Prospective (I) In general With respect to any financial assurance provided after the date of enactment of the Stop Orphaned Wells Act, not less frequently than once every 5 years, and prior to approving an assignment, transfer, or change in operator of a lease, the Secretary shall review the financial assurance to determine, after taking into consideration the factors described in subparagraph (B)(iii), whether the amount of the financial assurance is adequate to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i). (II) Authority to increase If the Secretary determines under subclause (I) that the amount of a financial assurance is not adequate, the Secretary shall increase the amount of the financial assurance in accordance with subparagraph (B), including making an adjustment for inflation, as appropriate. (ii) Retrospective (I) In general Operators shall increase or replace all bonds that do not meet the appropriate minimum amount of financial assurance required under subparagraph (B)(ii) not later than— (aa) for nationwide bonds, which shall be replaced with individual lease or statewide bonds, 1 year after the date of enactment of the Stop Orphaned Wells Act; (bb) for statewide bonds, 2 years after the date of enactment of the Stop Orphaned Wells Act; and (cc) for individual oil and gas lease bonds, 3 years after the date of enactment of the Stop Orphaned Wells Act. (II) Authority to increase If the Secretary determines under subclause (I) that the amount of a financial assurance is not adequate, the Secretary shall increase the amount of the financial assurance in accordance with subparagraph (B), including making an adjustment for inflation, as appropriate. (D) Release On request, and after inspection by the Secretary, the Secretary may release, in whole or in part, the financial assurance required for a lease under this paragraph if the Secretary determines that— (i) the remediation, reclamation, or permanent plugging covered by the financial assurance has been completed in accordance with applicable standards; and (ii) all other applicable Federal requirements have been met. (E) Consultation The Secretary shall consult with the Secretary of Agriculture prior to making any determination under paragraphs (4), (5), or (6) related to activities on National Forest System land. (F) Authority Nothing in this section prevents the Secretary of Agriculture from requiring additional financial assurances with respect to activities on National Forest System land. (5) Temporarily abandoned and shut-in wells (A) In general The Secretary shall promulgate regulations to reduce the inventory of idled wells and temporarily abandoned and shut-in wells on Federal land, including by enhancing oversight of wells that have been temporarily abandoned or shut-in. (B) Requirements (i) Temporarily abandoned wells (I) In general The Secretary shall review and may approve a request from an operator to designate a well as temporarily abandoned for a period greater than 30 consecutive days. (II) Designation (aa) In general A well designated as temporarily abandoned under subclause (I) shall retain that designation for a 1-year period, subject to renewal under item (bb). (bb) Renewal (AA) In general Not earlier than 10 days before a designation under subclause (I) is set to expire, an operator may submit to the Secretary a subsequent request to designate the well for another 1-year period as temporarily abandoned. (BB) Limit There is no limit on the number of subsequent requests an operator may submit under this item for approval by the Secretary under subclause (I). (III) Requests In submitting a request under subclause (I), an operator shall— (aa) include— (AA) adequate and detailed justification for temporarily abandoning the well; and (BB) verification of the mechanical integrity of the well; and (bb) isolate the completed intervals prior to temporarily abandoning the well. (IV) Follow-up (aa) In general Not later than 4 years after the temporary abandonment of a well under subclause (I), the operator shall— (AA) fully complete reclamation, as required by applicable requirements, unless the Secretary has approved a request to delay under item (bb)(BB); (BB) resume production in paying quantities or commence using the well for injection or disposal; or (CC) submit to the Secretary a detailed plan and timeline for future beneficial use of the well. (bb) Beneficial use On submission of a plan and timeline to the Secretary under item (aa)(CC), the Secretary shall— (AA) make a determination regarding whether there is a legitimate future beneficial use of the well; and (BB) subject to a determination that there is a legitimate future beneficial use of the well under subitem (AA), grant the operator a 1-year delay, subject to the condition that the operator confirms the future beneficial use of the well and is making verifiable progress on returning the well to that beneficial use. (ii) Shut-in wells (I) Verification and confirmation Not later than 3 years after a well is designated as shut-in, the operator shall submit to the Secretary a verification of the mechanical integrity of the well and confirm that the well remains capable of producing in paying quantities. (II) Follow-up (aa) In general Not later than 4 years after a well shut-in, the operator shall— (AA) permanently abandon the shut-in well, unless the Secretary has approved a request to delay under item (bb)(BB); (BB) resume production in paying quantities; or (CC) submit to the Secretary a detailed plan and timeline for future beneficial use of the well. (bb) Beneficial use On submission of a plan and timeline to the Secretary under item (aa)(CC), the Secretary shall— (AA) make a determination regarding whether there is a legitimate future beneficial use of the well; and (BB) subject to a determination that there is a legitimate future beneficial use of the well under subitem (AA), grant the operator a 1-year delay, subject to the condition that the operator confirms the future beneficial use of the well and is making verifiable progress on returning the well to that beneficial use. (C) Publication The Secretary shall annually update and publicly publish a database of idled wells and temporarily abandoned and shut-in wells under the jurisdiction of the Secretary.; (5) in the second sentence— (A) by striking Secretary concerned and inserting Secretary, or the Secretary of Agriculture with respect to National Forest System land,; and (B) by striking No permit and inserting the following: (3) Analysis and approval required No permit; and (6) by striking the subsection designation and all that follows through the Secretary of Agriculture, and inserting the following: (g) Regulation of surface-Disturbing activities (1) Definitions In this subsection: (A) Idled well The term idled well means a well— (i) that has been nonoperational for not less than 4 years; and (ii) for which there is no anticipated beneficial future use. (B) Operator The term operator, with respect to an oil or gas operation, means any individual or entity (including a lessee or operating rights owner) that has provided to a relevant authority a written statement that the individual or entity is responsible for the operation (or any portion of the operation). (C) Orphaned well The term orphaned well, with respect to a well or well site under an oil or gas lease issued under this Act, means a well— (i) (I) that is not used for an authorized purpose, such as production, injection, monitoring, or another approved beneficial use; and (II) for which no operator can be located; or (ii) the operator of which is unable— (I) to plug the well; or (II) to remediate and reclaim the well site. (D) Secretary The term Secretary means the Secretary of the Interior. (E) Shut-in The term shut-in means a non-operational well that is mechanically capable of producing or injecting by opening a valve or activating existing equipment. (F) Temporarily abandoned The term temporarily abandoned, with respect to the status of a well, means a non-operational well that— (i) is not physically or mechanically capable of production or injection without additional equipment or servicing of the well; but (ii) may have a future beneficial use. (2) Regulation of activities The Secretary, or the Secretary of Agriculture with respect to National Forest System land,.