,,ii #aafth ,,congress #b;d ,session ,s4 #dfdb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bb1 #bjbj,mr4 ,bennet introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend the ,mineral ,leasing ,act to ensure sufficient bonding and complete and timely reclamation of land and water disturbed by ,federal and ,indian oil and gas production1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,oil and ,gas ,bonding ,reform and ,orphaned ,well ,remediation ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,findings4,,title ,i--,orphaned well remediation,sec4 #aja4 ,orphaned well remediation program4,,title ,,ii--,federal onshore oil and gas reclamation bonding program,sec4 #bja4 ,declaration of policy4,sec4 #bjb4 ,regulation of surface-disturbing activities4,,title ,,iii--,miscellaneous,sec4 #cja4 ,cost recovery4,sec4 #cjb4 ,regulations4 #b4 ,findings ,congress finds that-- 7#a7 according to the ,interstate ,oil and ,gas ,compact ,commission1 there are in existence not fewer than #ef1fjj orphaned well sites1 and as many as #gdf1jjj undocumented orphaned well sites1 across the ,united ,states on ,federal1 ,state1 ,tribal1 and private land2 7#b7 7,a7 orphaned well sites-- 7i7 pose significant public health1 safety1 and environmental risks2 and 7ii7 should be remediated2 but 7,b7 there are no identified responsible parties to provide for the remediation of those sites2 7#c7 it is reasonable for the ,federal ,government-- 7,a7 to provide financial resources to ,states and ,indian ,tribes to rectify the long-term public health1 safety1 and environmental risks described in paragraph 7#b77;,a77i72 7,b7 to support the creation of jobs relating to the remediation and reclamation of orphaned well sites2 and 7,c7 to update policies to ensure that wells are not orphaned in the future2 7#d7 under the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq471 the ,secretary of the ,interior 7referred to in this ,act as the ,secretary7 is required-- 7,a7 to ensure the complete and timely reclamation of all ,federal onshore oil and gas lease tracts2 and 7,b7 to secure financial assurances in the form of bonds1 sureties1 or other approved financial arrangements for remediation1 reclamation1 and well closure2 7#e7 with respect to the ,federal onshore oil and gas leasing program1 the ,secretary-- 7,a7 is required-- 7i7 regularly to review existing onshore oil and gas financial assurances2 and 7ii7 to increase the amount of those assurances1 as necessary2 but 7,b7 in practice1 often fails to carry out the activities described in subparagraph 7,a72 7#f7 the ,secretary-- 7,a7 implements well and financial assurance adequacy review policies inconsistently across field offices of the ,department of the ,interior2 7,b7 has failed to track systematically data relating to potential liabilities and the adequacy of financial assurances2 and 7,c7 does not maintain information relating to actual reclamation costs incurred for inactive1 orphaned1 or inadequately reclaimed wells and lease tracts2 7#g7 due to the shortcomings in the required minimum financial assurance amounts and the ineffectiveness of the ,secretary in tracking and reviewing those financial assurances1 the cost of reclaiming existing ,federal onshore oil and gas wells and lease tracts far exceeds the amounts posted as financial assurance2 and 7#h7 the inadequacy of the ,secretary in the administration of financial assurances for ,federal onshore oil and gas activities-- 7,a7 poses a threat to land1 water1 and other resources2 and 7,b7 is a major financial liability to the taxpayers of the ,united ,states1 who are often responsible for the costs of reclaiming onshore oil and gas wells and lease tracts that are inactive1 orphaned1 or inadequately reclaimed by lessees4 ,i ,orphaned well remediation #aja4 ,orphaned well remediation program 7a7 ,in general ,section #ag of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7 is amended by adding at the end the following3 7q7 ,orphaned well remediation program 7#a7 ,definitions ,in this subsection3 7,a7 ,inactive ,the term inactive1 with respect to a well under an oil or gas lease issued under this ,act1 has the meaning given the term in subsection 7g77#a74 7,b7 ,orphaned ,the term orphaned1 with respect to a well or well site under an oil or gas lease issued under this ,act1 means that the owner or operator of the well or well site-- 7i7 cannot be located2 or 7ii7 is unable to plug and abandon the well4 7,c7 ,responsible party ,the term responsible party1 with respect to a well under a lease issued under this ,act1 has the meaning given the term in subsection 7g77#a74 7,d7 ,secretary ,the term ,secretary means the ,secretary of the ,interior4 7#b7 ,establishment ,not later than #ij days after the date of enactment of this subsection1 the ,secretary shall establish1 in accordance with this subsection-- 7,a7 in cooperation with the ,secretary of ,agriculture1 a program to remediate1 reclaim1 and close orphaned oil and gas wells and well sites located on land administered by the land management agencies of the ,department of the ,interior and the ,department of ,agriculture1 respectively2 and 7,b7 a program under which the ,secretary shall distribute #ge percent of the amounts made available under paragraph 7#i7 to ,states and ,indian tribes that have submitted to the ,secretary an application to remediate1 reclaim1 and close orphaned oil and gas wells and well sites on land under the jurisdiction of the ,states and ,indian tribes4 7#c7 ,activities ,the programs established under paragraph 7#b7 shall-- 7,a7 use existing and updated inventories of orphaned well sites to establish priority for the distribution of funds under the programs for activities1 including-- 7i7 remediating1 reclaiming1 and closing orphaned wells and well sites2 7ii7 remediating and reclaiming related well pads2 7iii7 reclaiming related access roads2 and 7iv7 restoring land1 water1 and habitat impacted by orphaned wells and the prior operation of the wells2 7,b7 provide a public accounting of the costs of remediation1 reclamation1 and closure for each applicable orphaned oil or gas well and well site2 and 7,c7 after remediation1 reclamation1 and closure of an orphaned well or well site1 seek-- 7i7 to determine the identity1 if unknown1 of any potential responsible party associated with the orphaned well or well site1 or a surety or guarantor of such a responsible party1 to the extent such information can be ascertained2 and 7ii7 to obtain from responsible parties reimbursement for applicable expenditures1 to the maximum extent practicable4 7#d7 ,cooperation and consultation ,in carrying out the programs established under paragraph 7#b71 the ,secretary shall-- 7,a7 work cooperatively with-- 7i7 the ,secretary of ,agriculture2 and 7ii7 each ,state1 local government1 and ,indian tribe within the jurisdiction of which an orphaned well site on ,federal land is located2 and 7,b7 consult with-- 7i7 affected ,states1 local governments1 and ,indian tribes2 7ii7 the ,secretary of ,energy2 and 7iii7 the ,interstate ,oil and ,gas ,compact ,commission4 7#e7 ,report to ,congress ,not later than #a year after the date of enactment of this subsection1 and not less frequently than once every #b years thereafter1 the ,secretary1 in cooperation with the ,secretary of ,agriculture and in consultation with affected ,states and ,indian tribes1 shall submit to ,congress a report describing the expenditures under1 and the progress and achievements of1 the programs established under paragraph 7#b74 7#f7 ,use of funds 7,a7 ,initial period ,for the first #b fiscal years beginning after the date of enactment of this subsection1 the funds made available to remediate1 reclaim1 and close orphaned wells and well sites under the program established under paragraph 7#b77;,b7 shall be allocated based on a demonstration of-- 7i7 identified orphaned wells and well sites in need of remediation1 reclamation1 or closure1 with a priority for sites posing the greatest adverse impacts to-- 7,i7 public health and safety2 and 7,,ii7 land1 water1 and other resources2 and 7ii7 adequate programmatic and administrative capacity to expend the funds in a timely and effective manner4 7,b7 ,subsequent fiscal years ,for the third fiscal year beginning after the date of enactment of this subsection1 and each fiscal year thereafter1 the ,secretary shall make funds available under the program established under paragraph 7#b77;,b7 based on-- 7i7 the factors described in subparagraph 7,a72 and 7ii7 a determination by the ,secretary that an affected ,state or ,indian tribe is-- 7,i7 using bonds or other financial assurances that will fully cover costs associated with remediating and reclaiming orphaned oil and gas wells under the jurisdiction of the ,state or ,indian tribe2 or 7,,ii7 adopting and using-- 7aa7 bonds described in subclause 7,i72 or 7bb7 other financial assurances4 7,c7 ,unused funds ,in any case in which the ,secretary determines that1 for any fiscal year1 a ,state or ,indian tribe cannot effectively use any portion of the funds that otherwise would be made available to the ,state or ,indian tribe under subparagraph 7,a7 or 7,b71 the ,secretary shall use those funds-- 7i7 to remediate1 reclaim1 and close orphaned wells and well sites on land administered by the ,secretary or the ,secretary of ,agriculture2 7ii7 to review and update any inventory of orphaned or inactive wells1 including wells previously identified as idle or abandoned1 on land described in clause 7i72 7iii7 to carry out subsection 7g77#f77;,e72 7iv7 to carry out paragraph 7#h72 or 7v7 7,i7 to determine the identity of any potential responsible party associated with an orphaned well or well site1 or a surety or guarantor of such a responsible party1 to the extent such information can be ascertained2 and 7,,ii7 to obtain from such a responsible party reimbursement for applicable expenditures1 to the maximum extent practicable4 7#g7 ,limitation on re-leasing ,before conducting any oil or gas development or production leasing of ,federal land that contains a well or well site that was remediated1 reclaimed1 or closed pursuant to this ,act1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall determine that-- 7,a7 re-leasing and development of the land will not degrade the restored conditions accomplished pursuant to the remediation1 reclamation1 or closure2 7,b7 the land achieves compliance with all applicable standards adopted pursuant to subsection 7g77#e7 prior to being re-leased2 and 7,c7 the party seeking to re-lease the land has provided to the ,secretary a specific justification of the reasons why the land should be re-leased4 7#h7 ,data collection 7,a7 ,in general ,not later than #b years after the date of enactment of this subsection1 the ,secretary and the ,secretary of ,agriculture shall jointly develop1 and make publicly available1 a computer database to provide centralized data relating to operations1 reclamation activities1 and financial assurances for each oil and gas lease in effect under this ,act4 7,b7 ,inclusions ,the database under subparagraph 7,a7 shall include1 with respect to each lease described in that subparagraph1 information relating to-- 7i7 the number1 location1 and status of each well subject to the lease2 7ii7 the number1 location1 and status of each inactive and orphaned well subject to the lease1 and the length of time that each such well has not been producing2 7iii7 the names of all responsible parties for each well1 including lessees and operators2 7iv7 whether the lease is part of a unit2 7v7 the amount of the financial assurance that has been established for the lease2 7vi7 the history of financial assurance amounts for the lease1 including dates of review and requested increases2 7vii7 inspection1 violations1 and enforcement actions taken with respect to the lease1 including resolution of each violation1 if any2 7viii7 whether the financial assurance on the lease has been released2 7ix7 payment status for royalties1 rents1 and fees2 and 7x7 any additional information required to be collected pursuant to subsection 7g77#f74 7,c7 ,notification ,the ,secretary shall-- 7i7 ensure that the database under subparagraph 7,a7 is made available to each field office of the ,bureau of ,land ,management and the ,forest ,service1 as applicable2 and 7ii7 provide automatic and timely notification1 on a lease-by-lease basis1 of applicable requirements and deadlines to review financial assurances and inactive well status1 in accordance with subsection 7g74 7,d7 ,provision of data at expense of lessee 7i7 ,in general ,except as provided in clause 7ii71 the ,secretary may require that data for the database under subparagraph 7,a7 shall be provided and entered into the database-- 7,i7 by the applicable lessee2 and 7,,ii7 at the expense of the lessee4 7ii7 ,inspection and enforcement actions ,any relevant data relating to a ,federal inspection or enforcement action shall be provided and entered into the database under subparagraph 7,a7 by the applicable ,federal enforcement official4 7iii7 ,data quality ,the ,secretary shall carry out such activities as the ,secretary determines to be necessary to ensure the quality of the data included in the database under subparagraph 7,a74 7#i7 ,funding 7,a7 ,in general ,notwithstanding any other provision of law1 from the ,federal share of royalty revenues deposited into the ,treasury pursuant to section #ce1 the ,secretary of the ,treasury shall transfer to the ,secretary to carry out the programs established under paragraph 7#b71 to remain available until expended-- 7i7 on ,october #a1 #bjbj1 #ejj1jjj1jjj2 7ii7 on ,october #a1 #bjba1 #ejj1jjj1jjj2 and 7iii7 on ,october #a1 #bjbb1 and on each ,october #a thereafter through ,october #a1 #bjbi1 #bej1jjj1jjj4 7,b7 ,receipt and acceptance ,the ,secretary shall be entitled to receive1 shall accept1 and shall use to carry out this subsection the funds transferred under subparagraph 7,a71 without further appropriation4 4 7b7 ,conforming amendments 7#a7 ,section #cdi of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeijg7 is amended by striking the section designation and heading and all that follows through ,out of any in subsection 7i7 and inserting the following3 #cdi4 ,federally drilled wells ,out of any 4 7#b7 ,the table of contents for the ,energy ,policy ,act of #bjje 7,public ,law #aji-eh2 #aai ,stat4 #eif7 is amended by striking the item relating to section #cdi and inserting the following3 ,sec4 #cdi4 ,federally drilled wells4 4 ,,ii ,federal onshore oil and gas reclamation bonding program #bja4 ,declaration of policy ,congress declares that it is the policy of the ,united ,states that-- 7#a7 pursuant to this title and the amendments made by this title1 the ,secretary1 and the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 should-- 7,a7 require the posting by holders of oil or gas leases under the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 or the ,mineral ,leasing ,act for ,acquired ,lands 7#cj ,u4,s4,c4 #cea et seq47 of financial assurances that are sufficient to pay for the actual costs of remediating1 reclaiming1 and closing onshore oil and gas wells1 well sites1 and lease tracts2 and 7,b7 implement a system of tracking and reviewing the financial assurances described in subparagraph 7,a7 that ensures ongoing adequacy and public transparency2 7#b7 in ensuring robust onshore oil and gas financial assurances under paragraph 7#a71 the ,secretary and the ,secretary of ,agriculture will-- 7,a7 better protect the land1 water1 and other resources of the ,united ,states2 and 7,b7 reduce the financial risks to taxpayers of paying for inadequately reclaimed onshore oil and gas wells and lease tracts2 and 7#c7 in administering this title and the amendments made by this title1 the ,secretary1 and the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 should ensure that the actions of the applicable ,secretary-- 7,a7 are in accordance with the goals of multiple-use management2 and 7,b7 will benefit the fiscal interests of the ,united ,states4 #bjb4 ,regulation of surface-disturbing activities ,section #ag7;g7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7;g77 is amended-- 7#a7 in the sixth sentence-- 7,a7 by striking such entity and inserting the responsible party2 and 7,b7 by striking ,once the entity has complied with the and inserting the following3 7,c7 ,issuance of lease after compliance ,on compliance by a responsible party under this paragraph with each 2 7#b7 in the fifth sentence1 by striking ,prior to making such determination with respect to any such entity the concerned ,secretary shall provide such entity with and inserting the following3 7,b7 ,requirement for notice and opportunity to comply ,before making a determination under subparagraph 7,a7 with respect to a responsible party1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall provide to the responsible party 2 7#c7 by striking the fourth sentence and inserting the following3 7#g7 ,failure or refusal to comply 7,a7 ,in general ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall not issue1 or approve the assignment of1 any lease under this section to a responsible party during any period in which1 as determined by the applicable ,secretary1 the responsible party 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 responsible party4 2 and 7#d7 by striking the subsection designation and all that follows through operations on the lease4 and inserting the following3 7g7 ,regulation of surface-,disturbing activities 7#a7 ,definitions ,in this subsection3 7,a7 ,inactive ,the term inactive1 with respect to a well or well site under an oil or gas lease issued under this ,act1 means the well or well site is not-- 7i7 currently producing oil or gas1 as applicable1 in paying quantities2 or 7ii7 actively aiding in the production of oil or gas1 as applicable1 in paying quantities4 7,b7 ,orphaned ,the term orphaned1 with respect to a well or well site under an oil or gas lease issued under this ,act1 has the meaning given the term in subsection 7q77#a74 7,c7 ,responsible party 7i7 ,in general ,the term responsible party1 with respect to a well or well site under an oil or gas lease issued under this ,act1 means an individual or entity 7including a lessee or operator7 that is or will be responsible for-- 7,i7 the remediation1 reclamation1 and closure of the well or well site2 or 7,,ii7 the payment of financial assurance for the well or well site in accordance with paragraph 7#d74 7ii7 ,inclusions ,the term responsible party includes-- 7,i7 an association1 corporation1 subsidiary1 or affiliate of an individual or entity described in clause 7i72 and 7,,ii7 any person controlled by1 or under common control with1 an individual or entity described in clause 7i74 7,d7 ,secretary ,the term ,secretary means the ,secretary of the ,interior4 7#b7 ,regulation of use and activities ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall-- 7,a7 regulate all use and activities conducted pursuant to any lease for oil or gas issued under this ,act2 and 7,b7 determine the remediation1 reclamation1 well closure1 and other activities that the responsible party shall be required to carry out in the interest of conservation of land1 water1 and surface resources1 including resources with recreation1 range1 timber1 mineral1 watershed1 fish or wildlife1 natural scenic1 scientific1 or historical value4 7#c7 ,reclamation and operations plan required 7,a7 ,in general ,each application for a permit to drill submitted for a lease issued under this ,act shall include a plan of operations for surface use1 disturbance1 and reclamation that covers all proposed activities and operations within the lease area4 7,b7 ,inclusions ,each plan of operations under subparagraph 7,a7 shall-- 7i7 specify-- 7,i7 the location of all relevant facilities1 roads1 drill pads1 trenches1 and rights-of-way2 7,,ii7 details regarding drill pad construction1 methods for containment1 and disposal of waste material2 7,,iii7 the identification1 location1 and condition of any inactive or orphaned well sites on land covered by the lease2 and 7,,iv7 such other information as the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 may require2 and 7ii7 include the interim reclamation plan and final reclamation plan developed under subparagraph 7,c74 7,c7 ,interim and final reclamation plans 7i7 ,interim reclamation plan 7,i7 ,in general ,each applicant for a permit to drill under subparagraph 7,a7 shall develop for submission with the plan of operations of the applicant under that subparagraph an interim reclamation plan that specifies the reclamation activities that the applicant will carry out to address the land1 water1 and resources 7including resources with recreation1 range1 timber1 mineral1 watershed1 fish or wildlife1 natural scenic1 scientific1 or historical value7 impacted by activities carried out pursuant to the permit to drill that are not needed for active operations4 7,,ii7 ,requirement ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall-- 7aa7 review each interim reclamation plan submitted under subclause 7,i7 at regular intervals2 and 7bb7 as the applicable ,secretary determines to be necessary1 require the amendment and reapproval by the applicable ,secretary of the interim reclamation plan4 7ii7 ,final reclamation plan 7,i7 ,in general ,each applicant for a permit to drill under subparagraph 7,a7 shall develop for submission with the plan of operations of the applicant under that subparagraph a final reclamation plan that includes a detailed description of the reclamation activities the applicant will carry out prior to final abandonment or cessation of oil and gas operations with respect to all land1 water1 and resources 7including resources with recreation1 range1 timber1 mineral1 watershed1 fish or wildlife1 natural scenic1 scientific1 or historical value7 impacted by activities carried out pursuant to the permit to drill4 7,,ii7 ,review and approval ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall review and approve a final reclamation plan under subclause 7,i7 only after determining that the final reclamation plan is consistent with the standards promulgated pursuant to paragraph 7#e74 7,d7 ,analysis and approval required ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall not grant a permit to drill under this ,act unless the applicable ,secretary has analyzed and approved the plan of operations submitted with the application for the permit under subparagraph 7,a71 including the interim reclamation plan and the final reclamation plan under subparagraph 7,c74 7#d7 ,financial assurances 7,a7 ,requirement 7i7 ,in general ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall promulgate regulations to require that a financial assurance shall be provided by the lessee prior to the commencement of activities on any lease issued under this ,act to ensure the complete and timely remediation and reclamation of any land1 water1 or other resources 7including resources with recreation1 range1 timber1 mineral1 watershed1 fish or wildlife1 natural scenic1 scientific1 or historical value7 adversely affected by lease activities and operations after the abandonment or cessation of oil and gas operations on the lease4 7ii7 ,elimination of nationwide financial assurances 7,i7 ,in general ,a lessee may not provide a financial assurance under clause 7i7 on a nationwide basis for all leases of the lessee in the ,united ,states4 7,,ii7 ,requirement ,with respect to any nationwide financial assurance in effect on the date of enactment of the ,oil and ,gas ,bonding ,reform and ,orphaned ,well ,remediation ,act1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall require that1 not later than #a year after that date of enactment1 the lessee shall post financial assurances in accordance with this paragraph4 7,b7 ,form 7i7 ,in general ,the financial assurance under subparagraph 7,a7 shall be provided in the form of a surety1 bond1 #a or more letters of credit1 #a or more certificates of deposit1 or cash1 subject to the approval of the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land4 7ii7 ,limitation ,self-bonding shall not be an acceptable form of financial assurance under subparagraph 7,a74 7,c7 ,amount 7i7 ,in general ,subject to clause 7ii71 the amount of a financial assurance required under this paragraph shall be the amount determined by the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 to be sufficient to ensure the complete and timely remediation and reclamation required under subparagraph 7,a77i7 if the work were to be performed by the applicable ,secretary in the event of forfeiture by the lessee4 7ii7 ,minimum amounts 7,i7 ,in general ,subject to subclause 7,,ii71 the minimum amount of a financial assurance required under this paragraph shall be not less than-- 7aa7 #ge1jjj1 in the case of a financial assurance for surface-disturbing activities of a responsible party on an individual oil or gas lease2 or 7bb7 #bjj1jjj1 in the case of a financial assurance for all oil and gas leases of a responsible party in a ,state4 7,,ii7 ,adjustments for inflation ,not later than #c years after the date of enactment of the ,oil and ,gas ,bonding ,reform and ,orphaned ,well ,remediation ,act1 and not less frequently than once every #c years thereafter1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall adjust for inflation the minimum amounts under items 7aa7 and 7bb7 of subclause 7,i74 7iii7 ,additional factors ,the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall establish the level of a financial assurance required under this paragraph above the applicable minimum level required under clause 7ii7 as the applicable ,secretary determines to be appropriate or necessary to ensure the complete and timely remediation and reclamation required under subparagraph 7,a77i71 after taking into consideration the following factors3 7,i7 ,the depth of each relevant proposed wellbore4 7,,ii7 ,the presence of other resources 7including resources with recreation1 range1 timber1 mineral1 watershed1 fish or wildlife1 natural scenic1 scientific1 or historical value74 7,,iii7 ,the number of wells to be drilled on the lease4 7,,iv7 ,the number and percentage of low-producing and inactive wells on-- 7aa7 the applicable lease2 and 7bb7 any other leases held by each applicable lessee1 operator1 and responsible party4 7,v7 ,any current or past violations by each responsible party4 7,,vi7 ,the anticipated condition of the applicable well site and the extent of the remediation and reclamation to be required4 7,,vii7 ,the ability of each responsible party to fully carry out that remediation and reclamation4 7,,viii7 ,such other factors as the applicable ,secretary determines to be relevant4 7,d7 ,review 7i7 ,prospective 7,i7 ,in general ,with respect to any financial assurance provided after the date of enactment of the ,oil and ,gas ,bonding ,reform and ,orphaned ,well ,remediation ,act1 not less frequently than once every #e years1 and before the applicable lease is sold or transferred1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall review the financial assurance to determine1 after taking into consideration the factors described in subparagraph 7,c77iii71 whether the amount of the financial assurance is adequate to ensure the complete and timely remediation and reclamation required under subparagraph 7,a77i74 7,,ii7 ,authority to increase ,if the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 determines under subclause 7,i7 that the amount of a financial assurance is not adequate1 the applicable ,secretary shall increase the amount of the financial assurance in accordance with subparagraph 7,c71 including making an adjustment for inflation1 as appropriate4 7ii7 ,retrospective 7,i7 ,in general ,not later than #a year after the date of enactment of the ,oil and ,gas ,bonding ,reform and ,orphaned ,well ,remediation ,act1 and not less frequently than once every #e years thereafter1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall-- 7aa7 review the sufficiency of each financial assurance provided before that date of enactment2 7bb7 determine1 after taking into consideration the factors described in subparagraph 7,c77iii71 whether the amount of the financial assurance is adequate to ensure the complete and timely remediation and reclamation required under subparagraph 7,a77i72 and 7cc7 provide to each responsible party a written notice1 including any relevant findings1 relating to the determination under item 7bb74 7,,ii7 ,authority to increase ,if the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 determines under subclause 7,i7 that the amount of a financial assurance is not adequate1 the applicable ,secretary shall increase the amount of the financial assurance in accordance with subparagraph 7,c71 including making an adjustment for inflation1 as appropriate4 7,e7 ,release ,on request1 and after notice and opportunity for public comment1 inspection by the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 and consultation with the ,administrator of the ,environmental ,protection ,agency1 the applicable ,secretary may release1 in whole or in part1 the financial assurance required for a lease under this paragraph if the ,secretary determines that-- 7i7 the remediation1 reclamation1 or well closure covered by the financial assurance has been completed in accordance with-- 7,i7 subparagraph 7,a77i72 and 7,,ii7 the standards established under paragraph 7#e72 and 7ii7 all other applicable ,federal requirements have been met4 7#e7 ,standards 7,a7 ,in general ,the ,secretary and the ,secretary of ,agriculture shall jointly promulgate regulations to establish uniform standards for the complete and timely reclamation of land1 water1 and other resources 7including resources with recreation1 range1 timber1 mineral1 watershed1 fish or wildlife1 natural scenic1 scientific1 or historical value7 adversely impacted1 directly or indirectly1 by oil and gas activities and operations 7including any prior remediation or reclamation efforts that fail to achieve compliance with the standards described in subparagraph 7,b77 to the condition that existed prior to the adverse impact1 including-- 7i7 standards for the interim reclamation plans and final reclamation plans required under paragraph 7#c77;,c72 and 7ii7 timelines for-- 7,i7 commencing and completing the closure of wells and related remediation and reclamation activities2 and 7,,ii7 achieving compliance with the standards described in subparagraph 7,b74 7,b7 ,requirements ,the standards under subparagraph 7,a7 shall include standards for-- 7i7 the remediation and reclamation of natural vegetation and hydrology2 7ii7 habitat restoration2 7iii7 salvage1 storage1 and reuse of topsoils2 7iv7 erosion control2 7v7 reclamation of access roads2 7vi7 control of invasive species and noxious weeds2 and 7vii7 natural contouring4 7#f7 ,inactive wells 7,a7 ,in general ,any lessee the lease of which includes an inactive well 7except for a well with an approved suspension of operations pursuant to section #ci7 shall1 as soon as practicable after determining that the well has been inactive for a period of more than #cj consecutive days-- 7i7 bring the inactive well into-- 7,i7 production in paying quantities2 or 7,,ii7 the active aid of production in paying quantities2 7ii7 submit to the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 an application for a delay in the remediation1 reclamation1 and permanent closure of the well in accordance with this subparagraph2 or 7iii7 permanently close the well and complete the timely remediation and reclamation required under paragraphs 7#d77;,a77i7 and 7#e74 7,b7 ,period of delay 7i7 ,in general ,subject to clause 7ii71 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 may approve an application under subparagraph 7,a77ii7 for a delay in the remediation1 reclamation1 and permanent closure of an inactive well under subparagraph 7,a7 for a period of not more than #a year4 7ii7 ,extensions 7,i7 ,in general ,subject to subclause 7,,ii7 and subparagraph 7,d71 on receipt of application by a lessee under subparagraph 7,a77ii71 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 may approve #a or more additional delays in the remediation1 reclamation1 and permanent closure of an inactive well1 each of which additional delays shall be for a period of not more than #a year4 7,,ii7 ,requirement ,before approving an application for an additional delay under subclause 7,i71 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall-- 7aa7 review the amount of the financial assurance for the applicable lease2 and 7bb7 increase the amount to ensure the complete and timely remediation1 reclamation1 and permanent closure required under paragraph 7#d77;,a77i7 if the work were to be performed by the applicable ,secretary in the event of forfeiture by the lessee4 7,c7 ,application requirements 7i7 ,in general ,each application of a lessee to delay permanent abandonment and reclamation of a well under subparagraph 7,a77ii7 or 7,b77ii7 shall include a description of-- 7,i7 the period of time during which the well has been inactive2 7,,ii7 the justification for delaying permanent abandonment and reclamation of the well2 7,,iii7 the probable duration of the delay2 7,,iv7 the means by which the wellbore is to be protected during the delay2 and 7,v7 the contemplated eventual disposition of the well4 7ii7 ,special requirements for applications for extension ,each application for a delay under subparagraph 7,a77ii7 or 7,b77ii7 shall demonstrate1 through test results1 that the applicable well is-- 7,i7 mechanically sound2 and 7,,ii7 capable of-- 7aa7 production in paying quantities2 or 7bb7 actively aiding in production in paying quantities4 7,d7 ,prohibition 7i7 ,in general ,no well may be inactive for a period of more than #e years4 7ii7 ,requirement ,with respect to a well under a lease issued under this ,act that has been inactive for a period of more than #e years1 the applicable lessee shall-- 7,i7 7aa7 bring the inactive well into-- 7,,aa7 production in paying quantities2 or 7,,bb7 the active aid of production in paying quantities2 and 7bb7 pay any related royalties1 rentals1 or other fees due2 or 7,,ii7 7aa7 permanently close the well2 and 7bb7 complete the timely remediation and reclamation required under paragraph 7#d77;,a77i74 7iii7 ,action by ,secretary ,in any case in which a lessee has not carried out any required action under clause 7ii7 with respect to a well described in that clause1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall execute forfeiture of the financial assurance associated with the well4 7,e7 ,inventory 7i7 ,in general ,not later than #ahj days after the date of enactment of the ,oil and ,gas ,bonding ,reform and ,orphaned ,well ,remediation ,act1 and not less frequently than annually thereafter1 the ,secretary1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall complete an inventory of all wells that1 as of the date of publication of the inventory-- 7,i7 are inactive or orphaned2 or 7,,ii7 have previously been identified as idle or abandoned4 7ii7 ,inclusions ,each inventory under clause 7i7 shall identify1 with respect to each inactive or orphaned well-- 7,i7 the location of the well2 7,,ii7 the period of time during which the well has been inactive or orphaned2 7,,iii7 the responsible parties associated with the well2 and 7,,iv7 any financial assurance provided to remediate and reclaim the well1 including the most recent date on which the ,secretary reviewed that financial assurance4 4 ,,iii ,miscellaneous #cja4 ,cost recovery 7a7 ,in general ,section #ag of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7 7as amended by section #aja7;a77 is amended by adding at the end the following3 7r7 ,cost recovery requirements 7#a7 ,in general ,before approving an application for a permit to drill pursuant to a lease issued under this ,act1 the ,secretary of the ,interior1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall determine the cost to the ,federal ,government of carrying out ,federal inspection and enforcement actions for the lease4 7#b7 ,financial assurances ,the ,secretary of the ,interior1 or the ,secretary of ,agriculture with respect to ,national ,forest ,system land1 shall not release the financial assurance established for a lease under subsection 7g77#d77;,e7 until the applicable lessee has reimbursed the applicable ,secretary for the total cost of ,federal inspection and enforcement actions on the lease4 4 7b7 ,use of ,,blm ,permit ,processing ,improvement ,fund ,section #ce7;c77#c7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aia7;c77#c77 is amended by striking subparagraph 7,a7 and inserting the following3 7,a7 ,in general ,of the amounts in the ,fund1 the ,secretary of the ,interior1 in consultation with the ,secretary of ,agriculture1 shall use1 without further appropriation or fiscal year limitation-- 7i7 #ej percent-- 7,i7 to carry out the coordination and review process for-- 7aa7 financial assurances for oil and gas leases under this ,act2 and 7bb7 bond releases for oil and gas leases under this ,act2 7,,ii7 to coordinate-- 7aa7 the inventory of wells that are orphaned 7as defined in subsection 7q77#a77 or inactive 7as defined in subsection 7g77#a772 and 7bb7 the processing of requests for delays in the permanent closure of wells that are inactive 7as so defined72 and 7,,iii7 to coordinate and process environmental and cultural resource reviews applicable to oil and gas activities under this ,act2 and 7ii7 the remaining amounts for the coordination and processing of oil and gas use authorizations on onshore ,federal and ,indian trust mineral estate land4 4 #cjb4 ,regulations 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary and the ,secretary of ,agriculture shall jointly promulgate regulations to implement this ,act and the amendments made by this ,act4 7b7 ,effect on funding ,the funds made available pursuant to subsection 7q77#i7 of section #ag of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7 7as added by section #aja7;a77 shall be disbursed and expended in accordance with applicable interim guidance pending completion of the rulemaking required under subsection 7a74