,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ajgba  ,,9 ,,! ,,h\se ,,(         
,,repres5tatives  ,octob] #e1 #bjbf,ms4 
,ans>i 7= h]self1 ,mr4 ,huffman1 ,mrs4  
,grijalva1 ,mr4 ,m91 ,ms4 ,simon1 & ,ms4
 ,br[nley7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,natural    
,res\rces  ,a ,,bill  ,to am5d ! ,m9]al 
,leas+ ,act to ensure suffici5t bond+ & 
complete & timely reclamation ( l& &    
wat] di/urb$ by ,f$]al & ,indian oil &  
gas production1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,/op ,orphan$ ,wells ,act4  #b4 ,f9d+s  
,congress f9ds t--  7#a7 accord+ to !   
,int]/ate ,oil & ,gas ,compact          
,commission1 !re are 9 exi/5ce n few]   
?an #adj1jjj docum5t$ orphan$ well      
sites1 & betwe5 #bej1jjj & #gdj1jjj     
undocum5t$ orphan$ well sites1 across ! 
,unit$ ,/ates on ,f$]al1 ,/ate1 ,tribal1
 & private l&2  7#b7 z ( ,decemb] #bjbd1
 ! ,bureau ( ,l& ,managem5t e/imat$ !re 
7 m ?an #ae1jjj orphan$ wells on ,f$]al 
l&2  7#c7  7,a7 orphan$ well sites-- 7i7

 pose significant public heal?1 safety1 
& environm5tal risks2 &  7ii7 %\ld be   
rem$iat$2  7,b7 !re are no id5tifi$     
responsible p>ties to provide = !       
rem$iation ( ^? sites2 &  7,c7 z a      
consequ5ce1 ,f$]al & ,/ate taxes are    
frequ5tly us$ to provide fund+ = plugg+ 
& reclaim+ ^? sites2  7#d7 "u ! ,m9]al  
,leas+ ,act 7#cj ,u4,s4,c4 #aha et      
seq471 ! ,secret>y ( ! ,int]ior is      
requir$--  7,a7 to ensure ! complete &  
timely reclamation ( all ,f$]al on%ore  
oil & gas leases2 &  7,b7 to secure     
f9ancial assurances 9 ! =m ( bonds1     
sureties1 or o!r approv$ f9ancial       
arrangem5ts = rem$iation1 reclamation1 &
 well closure2  7#e7 9 ,novemb] #bjba1  
,congress pass$ ! ,infra/ructure        
,inve/m5t & ,jobs ,act 7,public ,law    
#aag-eh2 #ace ,/at4 #dbi71 :i*-- 7,a7   
provid$ #d1gjj1jjj1jjj 9 fund+ to       
reclaim orphan$ wells on ,f$]al1 ,/ate1 
,tribal1 & private l&2  7,b7 requir$ !  
,secret>y ( ! ,int]ior to e/abli% a     
program to plug1 rem$iate1 & reclaim    

orphan$ wells on ,f$]al l&2 &  7,c7     
requir$ ! ,secret>y ( ! ,int]ior to     
r$uce ! inv5tory ( idl$ wells on ,f$]al 
l&2 &  7#f7 ! ,infra/ructure ,inve/m5t &
 ,jobs ,act 7,public ,law #aag-eh2 #ace 
,/at4 #dbi7 help$ to address urg5t      
public heal? & safety & environm5tal    
issues associat$ ) exi/+ orphan$ wells1 
b additional action is ne$$ to ensure t 
oil & gas op]ators1 & n taxpay]s1 are   
f9anc+ timely & adequate reclamation    
activities = future orphan$ wells4  #c4 
,regulation ( surface-di/urb+ activities
 ,section #ag7;g7 ( ! ,m9]al ,leas+ ,act
 7#cj ,u4,s4,c4 #bbf7;g77 is am5d$--    
7#a7 9 ! six? s5t5ce-- 7,a7 by /rik+ su*
 entity & ins]t+ ! op]ator or o!r       
entity2 &  7,b7 by /rik+ ,once ! entity 
& ins]t+ ! foll[+3  7,c7 ,issuance (    
lease aft] compliance ,once ! op]ator or
 o!r entity  2  7#b7 9 ! fif? s5t5ce1 by
 /rik+ ,prior to mak+ su* det]m9ation ) 
respect to any su* entity ! conc]n$     
,secret>y %all provide su* entity ) &   
ins]t+ ! foll[+3  7,b7 ,requirem5t =    

notice & opportunity to comply ,be=e    
mak+ a det]m9ation "u subp>agraph 7,a7 )
 respect to any op]ator or o!r entity1 !
 ,secret>y %all provide to ! op]ator or 
o!r entity  2  7#c7 by /rik+ ! f\r?     
s5t5ce & ins]t+ ! foll[+3  7#f7 ,failure
 or refusal to comply  7,a7 ,9 g5]al ,! 
,secret>y %all n issue1 or approve !    
transf] or assignm5t (1 any lease "u ?is
 section to any op]ator or o!r entity1  
or any subsidi>y1 affiliate1 or p]son   
controll$ by or "u common control ( t   
op]ator or o!r entity1 dur+ any p]iod 9 
:i*1 z det]m9$ by ! ,secret>y1 ! op]ator
 or o!r entity has fail$ or refus$ to   
comply 9 any mat]ial respect ) a        
reclamation requirem5t or o!r /&>d      
e/abli%$ "u ?is section t is applicable 
to any o!r lease ( ! op]ator or o!r     
entity4  2  7#d7 by /rik+ ! ?ird s5t5ce 
& ins]t+ ! foll[+3  7#d7 ,f9ancial      
assurances  7,a7 ,requirem5t  7i7 ,9    
g5]al ,! ,secret>y %all promulgate      
regulations to require t a f9ancial     
assurance %all be provid$ by an op]ator 

prior to ! comm5cem5t ( activities on   
any lease issu$ "u ?is ,act to ensure ! 
complete & timely rem$iation &          
reclamation ( any l&1 wat]1 or o!r      
res\rces 7includ+ res\rces ) recreation1
 range1 timb]1 m9]al1 wat]%$1 fi% or    
wildlife1 natural sc5ic1 sci5tific1 or  
hi/orical value7 adv]sely affect$ by    
lease activities & op]ations aft] !     
ab&onm5t or cessation ( oil & gas       
op]ations on ! lease4  7ii7 ,elim9ation 
( nationwide f9ancial assurances  7,i7  
,9 g5]al ,an op]ator may n provide a    
f9ancial assurance "u clause 7i7 on a   
nationwide basis = all leases ( !       
op]ator 9 ! ,unit$ ,/ates4  7,,ii7      
,requirem5t ,) respect to any nationwide
 f9ancial assurance 9 effect on ! date (
 enactm5t ( ! ,/op ,orphan$ ,wells ,act1
 ! ,secret>y %all require t1 n lat] ?an 
#a ye> aft] t date ( enactm5t1 op]ators 
%all po/ replacem5t f9ancial assurances 
9 accordance ) ?is ,act4  7,b7 ,am\nt   
7i7 ,9 g5]al ,subject to clause 7ii7 &  
7iii71 ! am\nt ( a f9ancial assurance   

requir$ "u ?is p>agraph %all be ! am\nt 
det]m9$ by ! ,secret>y to be suffici5t  
to ensure ! complete & timely rem$iation
 & reclamation requir$ "u subp>agraph   
7,a77i74  7ii7 ,m9imum am\nts  7,i7 ,9  
g5]al ,subject to subclause 7,,ii71 !   
m9imum am\nt ( a f9ancial assurance     
requir$ "u ?is p>agraph %all be n less  
?an1 z applicable--  7aa7 #bjj1jjj1 9 ! 
case ( a f9ancial assurance =           
surface-di/urb+ activities on an        
individual oil or gas lease2 or  7bb7   
#fej1jjj1 9 ! case ( a f9ancial         
assurance = all oil & gas leases ( an   
op]ator 9 a ,/ate4  7,,ii7 ,idl$ wells  
,:5ev] ! total numb] ( idl$ wells ( an  
op]ator equals or exce$s #ej p]c5t ( !  
total wells own$ or op]at$ by ! op]ator1
 includ+ wells own$ or op]at$ by a      
subsidi>y ( ! op]ator1 ! ,secret>y %all 
require f t op]ator a full liability    
bond = ! e/imat$ reclamation &          
rem$iation co/s associat$ ) all ( !     
op]ations ( ! op]ator4  7,,iii7         
,increas$ m9imum am\nts = additional    

categories ( op]ations  7aa7 ,e/abli%m5t
 by regulation ,9 promulgat+ regulations
 to c>ry out ?is ,act1 ! ,secret>y %all 
det]m9e :e!r high] m9imum am\nts (      
f9ancial assurance %\ld be requir$ = any
 o!r categories ( op]ations t pose      
height5$ risks ( ab&onm5t or            
environm5tal h>m4  7bb7 ,public petition
  7,,aa7 ,9 g5]al ,any individual may1  
at any "t1 file a petition ) !          
,secret>y1 9 su* a mann] & conta9+ su*  
in=mation z ! ,secret>y may require1 to 
e/abli% an increas$ m9imum am\nt (      
f9ancial assurance = a specific category
 ( op]ations4 7,,bb7 ,f9d+s ,on receipt 
( a petition "u subitem 7,,aa71 !       
,secret>y %all make detail$ f9d+s &     
provide ! petition] a writt5 response & 
det]m9ation n lat] ?an #ij days aft]    
receipt ( ! petition4 7,,cc7            
,publication ,if ! ,secret>y det]m9es t 
a specific category ( op]ations requires
 an increas$ m9imum am\nt ( f9ancial    
assurance "u subitem 7,,bb71 ! ,secret>y
 %all publi% 9 ! ,f$]al ,regi/] !       

det]m9ation ) ! increas$ am\nt requir$ n
 lat] ?an #cj days aft] mak+ t          
det]m9ation4  7,,iv7 ,adju/m5ts =       
inflation ,n lat] ?an #a ye> aft] ! date
 ( enactm5t ( ! ,/op ,orphan$ ,wells    
,act1 & n less frequ5tly ?an annually   
!reaft]1 ! ,secret>y %all adju/ =       
inflation ! m9imum am\nts "u subclauses 
7,i7 & 7,,iii71 z applicable4  7iii7    
,additional factors ,! ,secret>y %all   
e/abli% ! level ( a f9ancial assurance  
requir$ "u ?is p>agraph above !         
applicable m9imum level requir$ "u      
clause 7ii7 z ! ,secret>y det]m9es to be
 appropriate or necess>y to ensure !    
complete & timely rem$iation &          
reclamation requir$ "u subp>agraph      
7,a77i71 aft] tak+ into consid]ation !  
foll[+ factors3 7,i7 ,! dep? ( ea*      
relevant propos$ wellbore4  7,,ii7 ,!   
pres5ce ( o!r res\rces 7includ+ res\rces
 ) recreation1 range1 timb]1 m9]al1     
wat]%$1 fi% or wildlife1 natural sc5ic1 
sci5tific1 or hi/orical value74  7,,iii7
 ,! numb] ( wells to be drill$ on !     

lease4  7,,iv7 ,! numb] & p]c5tage (    
idl$ wells on-- 7aa7 ! applicable lease2
 &  7bb7 any o!r leases held by ea*     
applicable op]ator4  7,v7 ,any curr5t or
 pa/ violations by ea* op]ator4  7,,vi7 
,! anticipat$ condition ( ! applicable  
well site & ! ext5t ( ! rem$iation &    
reclamation to be requir$4  7,,vii7 ,!  
ability ( ea* op]ator to fully c>ry out 
t rem$iation & reclamation4  7,,viii7   
,su* o!r factors z ! ,secret>y det]m9es 
to be relevant4  7,c7 ,review  7i7      
,prospective  7,i7 ,9 g5]al ,) respect  
to any f9ancial assurance provid$ aft] !
 date ( enactm5t ( ! ,/op ,orphan$      
,wells ,act1 n less frequ5tly ?an once e
 #e ye>s1 & prior to approv+ an         
assignm5t1 transf]1 or *ange 9 op]ator (
 a lease1 ! ,secret>y %all review !     
f9ancial assurance to det]m9e1 aft] tak+
 into consid]ation ! factors describ$ 9 
subp>agraph 7,b77iii71 :e!r ! am\nt ( ! 
f9ancial assurance is adequate to ensure
 ! complete & timely rem$iation &       
reclamation requir$ "u subp>agraph      

7,a77i74  7,,ii7 ,au?ority to increase  
,if ! ,secret>y det]m9es "u subclause   
7,i7 t ! am\nt ( a f9ancial assurance is
 n adequate1 ! ,secret>y %all increase !
 am\nt ( ! f9ancial assurance 9         
accordance ) subp>agraph 7,b71 includ+  
mak+ an adju/m5t = inflation1 z         
appropriate4  7ii7 ,retrospective  7,i7 
,9 g5]al ,op]ators %all increase or     
replace all bonds t d n meet !          
appropriate m9imum am\nt ( f9ancial     
assurance requir$ "u subp>agraph        
7,b77ii7 n lat] ?an--  7aa7 = nationwide
 bonds1 :i* %all be replac$ ) individual
 lease or ,/atewide bonds1 #a ye> aft] !
 date ( enactm5t ( ! ,/op ,orphan$      
,wells ,act2  7bb7 = ,/atewide bonds1 #b
 ye>s aft] ! date ( enactm5t ( ! ,/op   
,orphan$ ,wells ,act2 &  7cc7 =         
individual oil & gas lease bonds1 #c    
ye>s aft] ! date ( enactm5t ( ! ,/op    
,orphan$ ,wells ,act4  7,,ii7 ,au?ority 
to increase ,if ! ,secret>y det]m9es "u 
subclause 7,i7 t ! am\nt ( a f9ancial   
assurance is n adequate1 ! ,secret>y    

%all increase ! am\nt ( ! f9ancial      
assurance 9 accordance ) subp>agraph    
7,b71 includ+ mak+ an adju/m5t =        
inflation1 z appropriate4  7,d7 ,release
 ,on reque/1 & aft] inspection by !     
,secret>y1 ! ,secret>y may release1 9   
:ole or 9 "p1 ! f9ancial assurance      
requir$ = a lease "u ?is p>agraph if !  
,secret>y det]m9es t-- 7i7 ! rem$iation1
 reclamation1 or p]man5t plugg+ cov]$ by
 ! f9ancial assurance has be5 complet$ 9
 accordance ) applicable /&>ds2 &  7ii7 
all o!r applicable ,f$]al requirem5ts h 
be5 met4  7,e7 ,consultation ,!         
,secret>y %all consult ) ! ,secret>y (  
,agriculture prior to mak+ any          
det]m9ation "u p>agraphs 7#d71 7#e71 or 
7#f7 relat$ to activities on ,national  
,=e/ ,sy/em l&4  7,f7 ,au?ority ,no?+ 9 
?is section prev5ts ! ,secret>y (       
,agriculture f requir+ additional       
f9ancial assurances ) respect to        
activities on ,national ,=e/ ,sy/em l&4 
7#e7 ,tempor>ily ab&on$ & %ut-9 wells   
7,a7 ,9 g5]al ,! ,secret>y %all         

promulgate regulations to r$uce !       
inv5tory ( idl$ wells & tempor>ily      
ab&on$ & %ut-9 wells on ,f$]al l&1      
includ+ by enhanc+ ov]sight ( wells t h 
be5 tempor>ily ab&on$ or %ut-94  7,b7   
,requirem5ts  7i7 ,tempor>ily ab&on$    
wells  7,i7 ,9 g5]al ,! ,secret>y %all  
review & may approve a reque/ f an      
op]ator to designate a well z tempor>ily
 ab&on$ = a p]iod great] ?an #cj        
consecutive days4  7,,ii7 ,designation  
7aa7 ,9 g5]al ,a well designat$ z       
tempor>ily ab&on$ "u subclause 7,i7 %all
 reta9 t designation = a #a-ye> p]iod1  
subject to r5ewal "u item 7bb74  7bb7   
,r5ewal  7,,aa7 ,9 g5]al ,n e>li] ?an   
#aj days be=e a designation "u subclause
 7,i7 is set to expire1 an op]ator may  
submit to ! ,secret>y a subsequ5t reque/
 to designate ! well = ano!r #a-ye>     
p]iod z tempor>ily ab&on$4 7,,bb7 ,limit
 ,!re is no limit on ! numb] ( subsequ5t
 reque/s an op]ator may submit "u ?is   
item = approval by ! ,secret>y "u       
subclause 7,i74  7,,iii7 ,reque/s ,9    

submitt+ a reque/ "u subclause 7,i71 an 
op]ator %all-- 7aa7 include-- 7,,aa7    
adequate & detail$ ju/ification =       
tempor>ily ab&on+ ! well2 & 7,,bb7      
v]ification ( ! me*anical integrity ( ! 
well2 &  7bb7 isolate ! complet$        
int]vals prior to tempor>ily ab&on+ !   
well4  7,,iv7 ,foll[-up  7aa7 ,9 g5]al  
,n lat] ?an #d ye>s aft] ! tempor>y     
ab&onm5t ( a well "u subclause 7,i71 !  
op]ator %all--  7,,aa7 fully complete   
reclamation1 z requir$ by applicable    
requirem5ts1 unless ! ,secret>y has     
approv$ a reque/ to delay "u item       
7bb77,,bb72  7,,bb7 resume production 9 
pay+ quantities or comm5ce us+ ! well = 
injection or disposal2 or 7,,cc7 submit 
to ! ,secret>y a detail$ plan & timel9e 
= future b5eficial use ( ! well4  7bb7  
,b5eficial use ,on submission ( a plan &
 timel9e to ! ,secret>y "u item         
7aa77,,cc71 ! ,secret>y %all-- 7,,aa7   
make a det]m9ation reg>d+ :e!r !re is a 
legitimate future b5eficial use ( !     
well2 & 7,,bb7 subject to a det]m9ation 

t !re is a legitimate future b5eficial  
use ( ! well "u subitem 7,,aa71 grant ! 
op]ator a #a-ye> delay1 subject to !    
condition t ! op]ator confirms ! future 
b5eficial use ( ! well & is mak+        
v]ifiable progress on return+ ! well to 
t b5eficial use4  7ii7 ,%ut-9 wells     
7,i7 ,v]ification & confirmation ,n lat]
 ?an #c ye>s aft] a well is designat$ z 
%ut-91 ! op]ator %all submit to !       
,secret>y a v]ification ( ! me*anical   
integrity ( ! well & confirm t ! well   
rema9s capable ( produc+ 9 pay+         
quantities4  7,,ii7 ,foll[-up  7aa7 ,9  
g5]al ,n lat] ?an #d ye>s aft] a well   
%ut-91 ! op]ator %all-- 7,,aa7 p]man5tly
 ab&on ! %ut-9 well1 unless ! ,secret>y 
has approv$ a reque/ to delay "u item   
7bb77,,bb72  7,,bb7 resume production 9 
pay+ quantities2 or 7,,cc7 submit to !  
,secret>y a detail$ plan & timel9e =    
future b5eficial use ( ! well4  7bb7    
,b5eficial use ,on submission ( a plan &
 timel9e to ! ,secret>y "u item         
7aa77,,cc71 ! ,secret>y %all-- 7,,aa7   

make a det]m9ation reg>d+ :e!r !re is a 
legitimate future b5eficial use ( !     
well2 & 7,,bb7 subject to a det]m9ation 
t !re is a legitimate future b5eficial  
use ( ! well "u subitem 7,,aa71 grant ! 
op]ator a #a-ye> delay1 subject to !    
condition t ! op]ator confirms ! future 
b5eficial use ( ! well & is mak+        
v]ifiable progress on return+ ! well to 
t b5eficial use4  7,c7 ,publication ,!  
,secret>y %all annually update &        
publicly publi% a database ( idl$ wells 
& tempor>ily ab&on$ & %ut-9 wells "u !  
jurisdiction ( ! ,secret>y4  2  7#e7 9 !
 second s5t5ce-- 7,a7 by /rik+ ,secret>y
 conc]n$ & ins]t+ ,secret>y1 or !       
,secret>y ( ,agriculture ) respect to   
,national ,=e/ ,sy/em l&12 &  7,b7 by   
/rik+ ,no p]mit & ins]t+ ! foll[+3  7#c7
 ,analysis & approval requir$ ,no p]mit 
2 &  7#f7 by /rik+ ! subsection         
designation & all t foll[s ?r\gh !      
,secret>y ( ,agriculture1 & ins]t+ !    
foll[+3  7g7 ,regulation (              
surface-,di/urb+ activities  7#a7       

,def9itions ,9 ?is subsection3  7,a7    
,idl$ well  ,! t]m idl$ well means a    
well-- 7i7 t has be5 nonop]ational = n  
less ?an #d ye>s2 &  7ii7 = :i* !re is  
no anticipat$ b5eficial future use4     
7,b7 ,op]ator ,! t]m op]ator1 ) respect 
to an oil or gas op]ation1 means any    
individual or entity 7includ+ a lessee  
or op]at+ rights own]7 t has provid$ to 
a relevant au?ority a writt5 /atem5t t !
 individual or entity is responsible = !
 op]ation 7or any portion ( ! op]ation74
  7,c7  ,orphan$ well  ,! t]m orphan$   
well1 ) respect to a well or well site  
"u an oil or gas lease issu$ "u ?is     
,act1 means a well--  7i7  7,i7 t is n  
us$ = an au?oriz$ purpose1 su* z        
production1 injection1 monitor+1 or     
ano!r approv$ b5eficial use2 &  7,,ii7 =
 :i* no op]ator c be locat$2 or  7ii7 ! 
op]ator ( :i* is unable-- 7,i7 to plug !
 well2 or  7,,ii7 to rem$iate & reclaim 
! well site4  7,d7 ,secret>y ,! t]m     
,secret>y means ! ,secret>y ( !         
,int]ior4  7,e7  ,%ut-9  ,! t]m %ut-9   

means a non-op]ational well t is        
me*anically capable ( produc+ or inject+
 by op5+ a valve or activat+ exi/+      
equipm5t4  7,f7  ,tempor>ily ab&on$  ,! 
t]m tempor>ily ab&on$1 ) respect to !   
/atus ( a well1 means a non-op]ational  
well t--  7i7 is n physically or        
me*anically capable ( production or     
injection )\t additional equipm5t or    
s]vic+ ( ! well2 b  7ii7 may h a future 
b5eficial use4  7#b7 ,regulation (      
activities ,! ,secret>y1 or ! ,secret>y 
( ,agriculture ) respect to ,national   
,=e/ ,sy/em l&1  4  #d4 ,pr$ecessor     
liability ,section #ag ( ! ,m9]al ,leas+
 ,act 7#cj ,u4,s4,c4 #bbf7 is am5d$ by  
add+ at ! end ! foll[+3  7r7 ,pr$ecessor
 liability  7#a7 ,9 g5]al ,n lat] ?an   
#fj days aft] ! date ( enactm5t ( ! ,/op
 ,orphan$ ,wells ,act1 ! ,secret>y %all 
promulgate regulations address+ lessee &
 sublessee responsibility & liability = 
p]=m+ all obligations relat+ to plugg+ a
 well drill$1 & remov+ a facility       
in/all$1 pursuant to--  7,a7 a lease    

issu$ "u ?is ,act2 &  7,b7 o!r          
applicable law4  7#b7 ,requirem5ts ,9   
c>ry+ out p>agraph 7#a71 ! ,secret>y    
%all require t-- 7,a7 ! lessee or       
sublessee1 z applicable1 %all rema9     
responsible = p]=m+ all obligations "u !
 lease until ! date t ! ,secret>y       
approves an assignm5t ( record title    
int]e/ or transf] ( op]at+ rights2 &    
7,b7 aft] ! ,secret>y approves !        
assignm5t or transf] "u subp>agraph     
7,a71 ! assignor or transf]or w cont9ue 
to be responsible = lease obligations t 
accru$ be=e ! approval date1 :e!r or n  
^? obligations 7 id5tifi$ at ! "t ( !   
transf]1 includ+-- 7i7 pay+ comp5satory 
royalties = dra9age2  7ii7              
responsibility = plugg+ drill$ wells2 & 
7iii7 remov+ facilities in/all$ or us$  
be=e ! effective date ( ! assignm5t or  
transf]4  4  #e4 ,limitations on transf]
 ( leases  7a7 ,def9itions ,9 ?is       
section3 7#a7 ,cov]$ lease ,! t]m cov]$ 
lease means--  7,a7 an oil or gas lease 
issu$ pursuant to ! ,m9]al ,leas+ ,act  

7#cj ,u4,s4,c4 #aha et seq471 & any     
int]e/ 9 t lease2 &  7,b7 an oil or gas 
lease issu$ pursuant to ! ,m9]al ,leas+ 
,act = ,acquir$ ,l&s 7#cj ,u4,s4,c4 #cea
 et seq471 & any int]e/ 9 t lease4  7#b7
 ,p>5t company ,! t]m p>5t company means
 a company t directly or indirectly     
controls ano!r company4  7#c7 ,secret>y 
,! t]m ,secret>y means ! ,secret>y ( !  
,int]ior4  7#d7 ,subsidi>y company ,!   
t]m subsidi>y company-- 7,a7 means any  
company t is own$ or controll$1 directly
 or indirectly1 by ano!r company2 &     
7,b7 includes any subsidi>y ( ! company 
t is s own$ or controll$4  7b7          
,limitations  7#a7 ,9 g5]al ,a          
leasehold] may n transf] a cov]$ lease  
to any p]son1 reg>dless ( :e!r ! lease 0
 issu$ be=e1 on1 or aft] ! date (       
enactm5t ( ?is ,act1 unless ! ,secret>y 
approves ! transf] "u p>agraph 7#b74    
7#b7 ,application  7,a7 ,9 g5]al ,prior 
to transf]r+ a cov]$ lease1 a leasehold]
 %all submit to ! ,secret>y an          
application conta9+-- 7i7 a f9ancial    

risk assessm5t ( ! propos$ lessee1      
includ+ an assessm5t ( ! adequacy ( !   
propos$ f9ancial assurances1 cr$it rat+ 
7or lack !re(71 & bond+ ( ! lessee2     
7ii7 a complete li/ ( oil & gas leases &
 wells own$ or op]at$ by ! propos$      
lessee1 along ) ! op]ational /atus ( !  
wells1 includ+ :e!r any ( ! wells are   
idl$ wells1 tempor>ily ab&on$1 or %ut-9 
7z ^? t]ms are def9$ 9 section #ag7;g7 (
 ! ,m9]al ,leas+ ,act 7#cj ,u4,s4,c4    
#bbf7;g7772  7iii7 a complete li/ ( pa/ 
& ongo+ violations ( ,f$]al1 ,/ate1 or  
local laws & regulations applicable to  
any ( ! oil & gas op]ations ( ! propos$ 
lessee2 &  7iv7 any o!r in=mation t !   
,secret>y may require4  7,b7 ,approval  
or d5ial ,aft] receiv+ an application   
submitt$ "u subp>agraph 7,a71 !         
,secret>y %all1 subject to subp>agraphs 
7,d7 & 7,e7--  7i7 imm$iately po/ !     
propos$ transf] on ! website ( !        
,dep>tm5t ( ! ,int]ior2  7ii7 invite    
public comm5t on ! propos$ transf] = n  
less ?an #cj days2 &  7iii7 n lat] ?an  

#ij days aft] receiv+ ! application--   
7,i7 approve1 conditionally approve1 or 
d5y t application2 &  7,,ii7 publicly   
po/ on ! website ( ! ,dep>tm5t ( !      
,int]ior ! reason+ = ! approval1        
conditional approval1 or d5ial1 to      
include :e!r ! decision 0 bas$ on       
in=mation provid$ by ! public "u clause 
7ii74  7,c7 ,notice ,n lat] ?an #e days 
aft] mak+ a decision "u subp>agraph     
7,b71 ! ,secret>y %all--  7i7 notify !  
leasehold] ( t decision2 &  7ii7 po/ !  
decision on ! website ( ! ,dep>tm5t ( ! 
,int]ior4  7,d7 ,additional bond+ ,!    
,secret>y %all conditionally approve an 
application "u subp>agraph 7,b71 subject
 to ! condition t ! leasehold] acquires 
additional bond+ to (fset any f9ancial  
risks id5tifi$ dur+ ! review ( !        
application by ! ,secret>y4  7,e7       
,m&atory d5ial ,! ,secret>y %all d5y an 
application "u subp>agraph 7,b7 if !    
propos$ lessee--  7i7 has fil$ a        
petition = bankruptcy "u title #aa1     
,unit$ ,/ates ,code2  7ii7 does n1 along

 ) any p>5t company ( ! propos$ lessee1 
possess an inve/m5t grade cr$it rat+ f a
 nationally recogniz$ /ati/ical rat+    
organization 7z def9$ 9 section #c7;a7 (
 ! ,securities ,ex*ange ,act ( #aicd    
7#ae ,u4,s4,c4 #gh;c7a7772  7iii7 has no
 prior record ( safe & compliant oil or 
gas production op]ations )9 ! prec$+ #e 
ye>s2 or  7iv7 is a subsidi>y company ( 
a p>5t company & fails to demon/rate a  
debt-to-equity ratio ( less ?an #b to   
#a1 unless ! p>5t company provides an   
unconditional corporate gu>antee = all  
liabilities "u ! cov]$ lease4  #f4      
,fitness to op]ate /&>ds ,! ,m9]al      
,leas+ ,act is am5d$ by ins]t+ aft]     
section #cg 7#cj ,u4,s4,c4 #aic7 !      
foll[+3  #ch4 ,fitness to op]ate /&>ds =
 oil & gas activities  7a7 ,def9itions  
,9 ?is section3  7#a7 ,cov]$ entity ,!  
t]m cov]$ entity1 ) respect to a        
recipi5t responsible p>ty1 means-- 7,a7 
any p>5t company ( ! recipi5t           
responsible p>ty2  7,b7 any subsidi>y   
company ( ! recipi5t responsible p>ty2  

7,c7 any entity ) :i* ! recipi5t        
responsible p>ty ent]s into a contract  
to con/ruct1 develop1 ma9ta91 or op]ate 
a facility on ,f$]al l& subject to ?is  
,act2 &  7,d7 any entity t-- 7i7 %>es   
(fic]s1 directors1 or key manag]ial     
p]sonnel ) any entity describ$ 9        
subp>agraph 7,a7 or 7,b72 or  7ii7 is a 
pr$ecessor to any entity describ$ 9     
subp>agraph 7,a7 or 7,b74  7#b7         
,decommission+ ,! t]m decommission+1 )  
respect to oil & gas infra/ructure on   
,f$]al l& subject to ?is ,act1 means--  
7,a7 end+ an oil & gas op]ation2  7,b7  
p]man5tly plugg+ a well2  7,c7 monitor+ 
! efficacy ( activities to end an oil & 
gas op]ation1 includ+ monitor+ ! safety 
& s\ndness ( a plugg$ well2 &  7,d7     
return+ ! area subject to ! lease1      
"r-(-way1 p]mit1 or o!r au?orization to 
a condition t meets ! environm5tal      
reclamation requirem5ts ( ! ,dep>tm5t ( 
! ,int]ior & any o!r ,f$]al ag5cy t has 
jurisdiction ov] ! oil & gas op]ation4  
7#c7 ,p>5t company ,! t]m p>5t company  

means a company t directly or indirectly
 controls ano!r company4  7#d7 ,recipi5t
 responsible p>ty ,! t]m recipi5t       
responsible p>ty means an entity seek+ !
 issuance1 ext5sion1 or transf] ( a     
lease1 "r-(-way1 p]mit1 or o!r          
au?orization = oil or gas exploration1  
developm5t1 or production on ,f$]al l&  
subject to ?is ,act4  7#e7 ,secret>y ,! 
t]m ,secret>y means ! ,secret>y ( !     
,int]ior4  7#f7 ,subsidi>y company ,!   
t]m subsidi>y company--  7,a7 means any 
company t is own$ or controll$1 directly
 or indirectly1 by ano!r company2 &     
7,b7 includes any subsidi>y ( ! company 
t is s own$ or controll$4  7b7          
,requirem5t = approvals ,beg9n+ on !    
date on :i* ! ,secret>y issues or       
revises regulations "u subsection       
7c77#d71 ! ,secret>y may n issue1 ext5d 
! t]m (1 or approve ! transf] (1 a      
lease1 "r-(-way1 p]mit1 or o!r          
au?orization = oil or gas exploration1  
developm5t1 or production on ,f$]al l&  
subject to ?is ,act ) respect to a      

recipi5t responsible p>ty1 unless !     
recipi5t responsible p>ty is c]tifi$ z  
fit to op]ate 9 accordance ) subsection 
7c74  7c7 ,c]tification ( fitness ,to   
op]ate  7#a7 ,9 g5]al ,! ,secret>y %all 
c]tify a recipi5t responsible p>ty z fit
 to op]ate bas$ on--  7,a7 ! pa/        
compliance ( ! recipi5t responsible     
p>ty1 & any cov]$ entity ( ! recipi5t   
responsible p>ty1 ) ,f$]al1 ,/ate1 &    
local environm5tal & safety laws &      
regulations1 includ+ deadl9es &         
requirem5ts relat$ to environm5tal      
reclamation1 decommission+1 & work]     
safety2  7,b7 ! f9ancial solv5cy &      
capacity ( ! recipi5t responsible p>ty1 
& any cov]$ entity ( ! recipi5t         
responsible p>ty1 to wea!r m>ket %ocks &
 fulfill curr5t & project$ decommission+
 liabilities2 &  7,c7 any o!r crit]ia ) 
respect to ! recipi5t responsible p>ty1 
& any cov]$ entity ( ! recipi5t         
responsible p>ty1 z ! ,secret>y det]m9es
 appropriate4  7#b7 ,initial reque/ =   
c]tification ,a recipi5t responsible    

p>ty may reque/ to be c]tifi$ z fit to  
op]ate pursuant to ! process e/abli%$ by
 regulation "u p>agraph 7#d74  7#c7     
,ma9t5ance ( c]tification  7,a7         
,requirem5t ,a c]tification t ! hold] ( 
a lease1 "r-(-way1 p]mit1 or o!r        
au?orization = oil or gas exploration1  
developm5t1 or production on ,f$]al l&  
subject to ?is ,act issu$1 ext5d$1 or   
transf]r$ aft] ! date on :i* ! ,secret>y
 issues or revises regulations "u       
p>agraph 7#d7 is fit to op]ate %all be  
ma9ta9$ 9 accordance ) subp>agraph 7,b74
  7,b7 ,annual compliance v]ification   
7i7 ,9 g5]al ,! ,secret>y %all annually 
assess :e!r ea* hold] ( a lease1        
"r-(-way1 p]mit1 or o!r au?orization    
describ$ 9 subp>agraph 7,a7 rema9s 9    
compliance ) /&>ds e/abli%$ pursuant to 
p>agraph 7#d74  7ii7 ,susp5sion (       
c]tification ,if ! ,secret>y det]m9es "u
 subp>agraph 7,a7 t a hold] ( a lease1  
"r-(-way1 p]mit1 or o!r au?orization    
describ$ 9 subp>agraph 7,a7 is n 9      
compliance ) ! /&>ds e/abli%$ pursuant  

to p>agraph 7#d71 ! ,secret>y %all      
susp5d ! c]tification & impose #a or m (
 ! foll[+ p5alties until t hold]        
complies ) ! /&>ds3 7,i7 ,susp5d !      
applicable lease1 "r-(-way1 p]mit1 or   
o!r au?orization pursuant to section    
#e7;a77#a74  7,,ii7 ,issue a f9e or o!r 
civil p5alties4  7,,iii7 ,require       
supplem5tal f9ancial assurance 9 an     
am\nt equal to ! total expect$ co/ (    
decommission+1 z applicable4  7,,iv7    
,issue an ord] to ! hold] ( ! lease1    
"r-(-way1 p]mit1 or o!r au?orization to 
comm5ce decommission+1 includ+ a        
requirem5t t ! entity develop & submit a
 decommission+ plan pursuant to section 
#cafb4c-d ( title #dc1 ,code ( ,f$]al   
,regulations 7or a successor            
regulation71 = approval by ! ,secret>y1 
& issue a notice to any previ\s hold]s (
 ! lease1 "r-(-way1 p]mit1 or o!r       
au?orization to comm5ce jo9t & sev]al   
liability proce$+s4  7#d7 ,regulations  
,n lat] ?an #a ye> aft] ! date (        
enactm5t ( ! ,/op ,orphan$ ,wells ,act1 

! ,secret>y %all promulgate or revise   
regulations-- 7,a7 to e/abli% /&>ds1 9  
accordance ) ?is section1 t ! ,secret>y 
%all use to det]m9e :e!r to c]tify a    
recipi5t responsible p>ty z fit to      
op]ate2  7,b7 to e/abli% a process =    
recipi5t responsible p>ties to reque/   
su* c]tification2 &  7,c7 to c>ry out   
any o!r requirem5ts ( ?is section4  7d7 
,report to ,congress ,n lat] ?an #a ye> 
aft] ! ,secret>y issues or revises      
regulations "u subsection 7c77#d71 &    
annually !reaft]1 ! ,secret>y %all      
submit to ,congress a report t includes 
a summ>y ( ! mo/ rec5t assessm5ts made  
"u subsection 7c77#c77;,b71 includ+ a   
li/ (-- 7#a7 ea* p]son t holds an active
 or inactive lease1 "r-(-way1 p]mit1 or 
o!r au?orization = oil or gas           
exploration1 developm5t1 or production  
on ,f$]al l& subject to ?is ,act t fail$
 to meet any ( ! /&>ds e/abli%$ pursuant
 to subsection 7c77#d72  7#b7 ! specific
 /&>ds = :i* ! p]son is or 0            
non-compliant1 disaggregat$ by-- 7,a7   

p]son2 &  7,b7 lease1 "r-(-way1 p]mit1 &
 o!r au?orizations2 &  7#c7 en=cem5t    
actions tak5 by ! ,secret>y aga9/ ea*   
p]son id5tifi$ "u p>agraph 7#a74  7e7   
,au?orization ( appropriations ,!re is  
au?oriz$ to be appropriat$ to !         
,secret>y to c>ry out ?is section       
#cj1jjj1jjj = ea* ( fiscal ye>s #bjbh   
?r\gh #bjcb4  4