1.Short title; table of
contents
(a)This Act may be cited as the Surface Owner Protection Act
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Protection of water resources
Sec. 101. Mineral Leasing
Act requirements.
Sec. 102. Relationship to State law.
TITLE II—Surface owner protection
Sec. 201. Definitions.
Sec. 202. Post-lease surface use agreement.
Sec. 203. Authorized exploration and drilling
operations.
Sec. 204. Surface owner notification.
TITLE III—Reclamation and bonding
Sec. 301. Reclamation requirements and bond.
<enum>I</enum><header>Protection of
water resources</header>
<section id="H1F4E444B89F646F09F5F3E74EE07682D"><enum>101.</enum><header><act-name parsable-cite="MLA">Mineral Leasing Act</act-name> requirements</header><text display-inline="no-display-inline">Section 17 of the
<act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is
amended by adding at the end the following:</text>
<quoted-block act-name="Mineral Leasing Act" id="HB84C18C804D14DEA0071DB7449942DDB">
<subsection id="H714EF17BFCEA49FD00D3037F8EC4F42C"><enum>(q)</enum><header>Water
requirements</header>
<paragraph id="H76CBAC2D28DF4ED49C056CDA00866E51"><enum>(1)</enum><header>In
general</header><text>An operator producing oil or gas (including coalbed
methane) under a lease issued under this Act shall—</text>
<subparagraph id="H6054C55EBE8D4F019FD651AFA09949B7"><enum>(A)</enum><text>replace the water
supply of a water user who obtains all or part of the supply of the user of
water for domestic, agricultural, or other purposes from an underground or
surface source that has been affected by contamination, diminution, or
interruption proximately resulting from drilling operations for the production;
and</text>
</subparagraph><subparagraph id="H934706AFD4924B12936DC21DDAC316B2"><enum>(B)</enum><text>comply with all
applicable requirements of Federal and State law for discharge of any water
produced under the lease.</text>
</subparagraph></paragraph><paragraph id="H1121AFFE83AD409381C28B78D4C73F13"><enum>(2)</enum><header>Water management
plan</header><text>An application for a lease under this subsection shall be
accompanied by a proposed water management plan including provisions—</text>
<subparagraph id="HEA50F361440842F6B7C96498729D94BF"><enum>(A)</enum><text>to protect the
quantity and quality of surface and ground water systems, both on-site and
off-site, from adverse effects of the exploration, development, and reclamation
processes or to provide alternative sources of water if the protection cannot
be ensured;</text>
</subparagraph><subparagraph id="H92AE10461B154E779BC87377B804493D"><enum>(B)</enum><text>to protect the
rights of present users of water that would be affected by operations under the
lease, including the discharge of any water produced in connection with the
operations that is not reinjected; and</text>
</subparagraph><subparagraph id="H288529FD87EB4385AB85C3BCC5E12453"><enum>(C)</enum><text>to identify any
agreements with other parties for the beneficial use of produced waters and the
steps that will be taken to comply with Federal and State laws relating to the
use.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAC5A66ADD0D2481C9FBD9CC8FF35D5B"><enum>102.</enum><header>Relationship to
State law</header><text display-inline="no-display-inline">Nothing in this Act
or an amendment made by this Act—</text>
<paragraph id="H00F782B03914466191C73799D7FDB4DD"><enum>(1)</enum><text>impairs or affects
any right or jurisdiction of any State with respect to the waters of the State;
or</text>
</paragraph><paragraph id="H095EC7D4EB644193B63818ECE1187289"><enum>(2)</enum><text>limits, alters,
modifies, or amends any of the interstate compacts or equitable apportionment
decrees that apportion water among and between States.</text>
</paragraph></section><enum>II</enum><header>Surface owner
protection</header>
<section id="H450DC969A7F341BE969682FB9676C300"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="H4638CE770E8F4A9800AFBFA8ABE30055"><enum>(1)</enum><header>Lease</header><text>The
term <term>lease</term> means a lease issued by the Secretary under the
<act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (30 U.S.C. 181 et
seq.) or any other law, providing for development of oil and gas resources
(including coalbed methane) owned by the United States.</text>
</paragraph><paragraph id="H2EB3FA7D20134974951ED9AC7DEEE02C"><enum>(2)</enum><header>Lessee</header><text>The
term <term>lessee</term> means the holder of a lease.</text>
</paragraph><paragraph id="H9E1315B4C4D8403C85D745C799CC112E"><enum>(3)</enum><header>Operator</header><text>The
term <term>operator</term> means any person that is responsible under the terms
and conditions of a lease for the operations conducted on leased land or any
portion of the land.</text>
</paragraph><paragraph id="HA43902BC54D54AC18FDF1797EA45F363"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Interior.</text>
</paragraph></section><section id="H7BA864B532544F76B7EC45A3B960573F"><enum>202.</enum><header>Post-lease
surface use agreement</header>
<subsection id="H04FE20A3134744CCBDCD8B7E4CB1900"><enum>(a)</enum><header>In
general</header><text>Except as provided in section 203, the Secretary may not
authorize any operator to conduct exploration and drilling operations on land
with respect to which title to oil and gas resources is held by the United
States but title to the surface estate is not held by the United States, until
the operator has filed with the Secretary a document, signed by the operator
and the 1 or more surface owners, indicating that the operator has secured a
written surface use agreement between the operator and the 1 or more surface
owners that meets the requirements of subsection (b).</text>
</subsection><subsection id="HDE5B4A76FCAE49C98D134C29EE47E87"><enum>(b)</enum><header>Contents</header><text>A
surface use agreement shall provide for—</text>
<paragraph id="H61D28B4C5976473D94ED5B75F73BCB72"><enum>(1)</enum><text>the use of only
the portion of the surface estate that is reasonably necessary for exploration
and drilling operations based on site-specific conditions, as determined by the
Secretary;</text>
</paragraph><paragraph id="HFCC2A40B176446729709CA84A0316D52"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="H128B09E1890748299776803E9EB13830"><enum>(3)</enum><text>the reclamation of
the site to a condition capable of supporting the uses which the land was
capable of supporting prior to exploration and drilling operations; and</text>
</paragraph><paragraph id="H919CBE0E1B654C5786000800A5130051"><enum>(4)</enum><text>compensation for
damages as a result of exploration and drilling operations, including—</text>
<subparagraph id="H0BF4E6B06B8D4251A2EED43958248D89"><enum>(A)</enum><text>loss of income and
increased costs incurred;</text>
</subparagraph><subparagraph id="H41DA5ABFF926438788CF8C7D8BFE1C4C"><enum>(B)</enum><text>damage to or
destruction of personal property, including crops, forage, and livestock;
and</text>
</subparagraph><subparagraph id="HF6A6EC3DC8D249A9BA42FF63C91BF72F"><enum>(C)</enum><text>failure to reclaim
the site in accordance with paragraph (3).</text>
</subparagraph></paragraph></subsection><subsection id="H9C56CF75EF22482A81A4F650A3BA5F1F"><enum>(c)</enum><header>Procedure</header>
<paragraph id="HE054853860CD4430B000CD00D6BE23FF"><enum>(1)</enum><header>Notice</header><text>An
operator shall notify each surface estate owner of the desire of the operator
to conclude an agreement under this section.</text>
</paragraph><paragraph id="id4B3898B55A684A0992FC3BFACF5AA4BF"><enum>(2)</enum><header>Arbitration</header>
<subparagraph id="id564A665A8A9E494584016C20CFCD2733"><enum>(A)</enum><header>In
general</header><text>If the surface estate owner and the operator do not reach
an agreement within 90 days after the date on which the operator provided the
notice, the matter shall be referred to third party arbitration for resolution
within a period of 90 days.</text>
</subparagraph><subparagraph id="id987945C6F07D4AEF87B8861D708EAB56"><enum>(B)</enum><header>Cost</header><text>The
cost of the arbitration shall be the responsibility of the operator.</text>
</subparagraph><subparagraph id="HCC7F5BC2213F48BDABC48550FDB79718"><enum>(C)</enum><header>Arbitrators</header><text>The
Secretary shall—</text>
<clause id="idA4D537AC23774383A03061267F22A288"><enum>(i)</enum><text>identify persons
with experience in conducting arbitrations; and</text>
</clause><clause id="idD59900C9610942829F302922589E7054"><enum>(ii)</enum><text>make the
information available to operators.</text>
</clause></subparagraph><subparagraph id="H3E8E576C0B3648B8813842E722204675"><enum>(D)</enum><header>Referrals</header><text>Referral
of a matter for arbitration by a person identified by the Secretary pursuant to
subparagraph (C) shall constitute compliance with paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="H1E86061E4E994F9689400952B4C2F525"><enum>(d)</enum><header>Attorneys
fees</header><text>If action is taken to enforce or interpret any of the terms
and conditions contained in a surface use agreement, the prevailing party shall
be reimbursed by the other party for reasonable attorneys fees and actual costs
incurred, in addition to any other relief that a court or arbitration panel may
grant.</text>
</subsection></section><section id="H709CB33439E54A7CA7B726D4738EFD4D"><enum>203.</enum><header>Authorized
exploration and drilling operations</header>
<subsection id="HC5CEF3517AE64135BD119E08B8006939"><enum>(a)</enum><header>In
general</header><text>The Secretary may authorize an operator to conduct
exploration and drilling operations on land covered by section 202 in the
absence of an agreement with each surface estate owner, if—</text>
<paragraph id="HB9441DBC731E44938739B56BDA26FB4C"><enum>(1)</enum><text>the Secretary
makes a determination, in writing, that the operator made a good faith attempt
to conclude such an agreement, including referral of the matter to arbitration
pursuant to section 202(c)(2), but that no agreement was concluded within 90
days after the referral to arbitration;</text>
</paragraph><paragraph id="HDEB9659987654DA58891D52C8509F6C2"><enum>(2)</enum><text>the operator
submits a plan of operations that covers the matters specified in section
202(b) and for compliance with all other applicable requirements of Federal and
State law; and</text>
</paragraph><paragraph id="HC27B9C9576184F6FA9C3D2ECF696EFCD"><enum>(3)</enum><text>the operator posts
a bond or other financial assurance in an amount the Secretary determines to be
adequate to ensure compensation to the surface estate owner for any damage to
the site, in the form of a surety bond, trust fund, letter of credit,
government security, certificate of deposit, cash, or equivalent.</text>
</paragraph></subsection><subsection id="H4BF30190C47649ADA4B2FF523022217E"><enum>(b)</enum><header>Surface owner
participation</header><text>The Secretary shall provide surface estate owners
with an opportunity—</text>
<paragraph id="HA32BE3442CCF40C7B859824019ED7007"><enum>(1)</enum><text>to comment on
plans of operations in advance of a determination of compliance with this
title;</text>
</paragraph><paragraph id="H4343BDD7BFE747C89519A7003CC86B32"><enum>(2)</enum><text>to participate in
bond level determinations and bond release proceedings under this
section;</text>
</paragraph><paragraph id="HFC8A6CF2663345BB99EA928681718EE9"><enum>(3)</enum><text>to attend an
on-site inspection during the determinations and proceedings;</text>
</paragraph><paragraph id="H38B15B94D89940928FBD1EB7004856CB"><enum>(4)</enum><text>to file written
objections to a proposed bond release; and</text>
</paragraph><paragraph id="HE5D1CC8AB6524A7899CC1400CC11E3FF"><enum>(5)</enum><text>to request and
participate in an on-site inspection if the owners have reason to believe there
is a violation of the terms and conditions of a plan of operations.</text>
</paragraph></subsection><subsection id="H3E939AEB411A42BFBD22AC6E8108935F"><enum>(c)</enum><header>Payment of
financial guarantee</header>
<paragraph id="idE89FCC3F9BF74009ACF7D99A98A21D78"><enum>(1)</enum><header>In
general</header><text>A surface estate owner, with respect to any land subject
to a lease, may petition the Secretary for payment of all or part of a bond or
other financial assurance required under this section as compensation for any
damage as a result of exploration and drilling operations.</text>
</paragraph><paragraph id="id9DAD53C2F4394B888812C17C2C71E1F6"><enum>(2)</enum><header>Compensation</header><text>Pursuant
to the petition, the Secretary may use the bond or other guarantee to provide
compensation to the surface estate owner for the damage.</text>
</paragraph></subsection><subsection id="HCF2925242556416FA0695997CC8797C2"><enum>(d)</enum><header>Bond
release</header><text>On request and after inspection and opportunity for
surface estate owner review, the Secretary may release the financial assurance
required under this section if the Secretary determines that—</text>
<paragraph id="idBC3A14B5D8E542B6B5F230DBB1F24082"><enum>(1)</enum><text>exploration and
drilling operations have ended; and</text>
</paragraph><paragraph id="id26A408A1CE2042FDA8616E646EF8C6EE"><enum>(2)</enum><text>all damage has
been fully compensated.</text>
</paragraph></subsection></section><section id="H1BF8698AADAD49FF80412D204C5203AA"><enum>204.</enum><header>Surface owner
notification</header><text display-inline="no-display-inline">The Secretary
shall—</text>
<paragraph id="H725340E553E5498384C9C8F67FAAA478"><enum>(1)</enum><text>notify surface
estate owners of lease sales in writing at least 45 days in advance;</text>
</paragraph><paragraph id="H92B79D73ED314B3C9042005BAD0098B4"><enum>(2)</enum><text>not later than 10
working days after the date on which a lease is issued, notify surface estate
owners regarding the identity of the lessee;</text>
</paragraph><paragraph id="HC903A16C30DD4DFEB2872C324BB26D54"><enum>(3)</enum><text>notify surface
estate owners in writing concerning any subsequent decisions regarding a lease,
such as modifying or waiving stipulations and approving rights of way;
and</text>
</paragraph><paragraph id="H5E93762B5F5F44EF8084CDC6C2D51722"><enum>(4)</enum><text>notify surface
estate owners not later than 5 business days after the date of issuance of a
drilling permit under a lease.</text>
</paragraph></section><enum>III</enum><header>Reclamation and
bonding</header>
<section id="HB562D672C2774112928E56C8ABCDEDC4"><enum>301.</enum><header>Reclamation
requirements and bond</header>
<subsection id="idF57F0428A51B4601A73761D038BB1F80"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 17 of the
<act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (30 U.S.C. 226)
(as amended by section 101) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id2FBA817E96384AF88A40A805D10E6106" style="OLC">
<subsection id="HB8E0D2DCB8164C5FB4112D3C06AD7736"><enum>(r)</enum><header>Reclamation
requirements and bond</header>
<paragraph id="id1310DCA4FBEF49D6B06BFCA2C50EBFA3"><enum>(1)</enum><header>Requirements</header><text>An
operator producing oil or gas (including coalbed methane) under a lease issued
pursuant to this Act shall—</text>
<subparagraph id="H3E5697DE99C64815B0A4583370E412C1"><enum>(A)</enum><text>at a minimum,
restore the land affected to a condition capable of supporting the uses that
the land was capable of supporting prior to any drilling, or higher or better
uses if there is reasonable likelihood that—</text>
<clause id="id5A84968362054B8C91A3798BCD3E3521"><enum>(i)</enum><text>the 1 or more
uses do not—</text>
<subclause id="id7CE10AAD81F84AF0A18453C2D553B463"><enum>(I)</enum><text>present any
actual or probable hazard to public health or safety; or</text>
</subclause><subclause id="id060F44085D9E497AA2397297BC51534B"><enum>(II)</enum><text>pose any actual
or probable threat of water diminution or pollution; and</text>
</subclause></clause><clause id="idD681664365554DFDBEAC09256C7EEAC8"><enum>(ii)</enum><text>the declared
proposed land use of the permit applicant following reclamation—</text>
<subclause id="idAC0F8AAD0EE549C39DD37AB5424F5EA8"><enum>(I)</enum><text>is not
impractical or unreasonable, inconsistent with applicable land use policies and
plans, or involve unreasonable delay in implementation; and</text>
</subclause><subclause id="idD78AC74582EA4DFEAD6E99223BF26513"><enum>(II)</enum><text>does not violate
Federal, State, or local law;</text>
</subclause></clause></subparagraph><subparagraph id="H5C62BCE7E98445449D192B506EC01973"><enum>(B)</enum><text>ensure that all
reclamation efforts proceed in an environmentally sound manner and as
contemporaneously as practicable with the oil and gas drilling operations;
and</text>
</subparagraph><subparagraph id="H099B6986CE18490E9E2847A9D684544F"><enum>(C)</enum><text>submit, with the
plan of operations, a reclamation plan that describes in detail the methods and
practices that will be used to ensure complete and timely restoration of all
land affected by oil and gas operations.</text>
</subparagraph></paragraph><paragraph id="H5F99D8FD9CC9493DB654FADB1CA5249"><enum>(2)</enum><header>Reclamation
bond</header>
<subparagraph id="idFB2A159D400D4870B640F1C82DA58643"><enum>(A)</enum><header>In
general</header><text>An operator producing oil or gas (including coalbed
methane) under a lease issued under this Act shall post a bond that covers the
area of land within the permit area on which the operator will initiate and
conduct oil and gas drilling and reclamation operations within the initial term
of the permit.</text>
</subparagraph><subparagraph id="idCEE440785A7D442BB9B276DA165C2B14"><enum>(B)</enum><header>Additional
bonds</header><text>As succeeding increments of oil and gas drilling and
reclamation operations are initiated and conducted within the permit area, the
lessee shall file with the regulatory authority 1 or more additional bonds to
cover the increments in accordance with this section.</text>
</subparagraph><subparagraph id="id4B2EA60EE523492E915B325DEEBF1682"><enum>(C)</enum><header>Amount</header><text>The
amount of the bond required for each bonded area shall—</text>
<clause id="idA136F57C594B421EB97CA78DFFAD7E2F"><enum>(i)</enum><text>meet the
reclamation requirements of the approved permit;</text>
</clause><clause id="id7C3E30D7C3304D23A6474FACAF2E0690"><enum>(ii)</enum><text>reflect the
probable difficulty of reclamation considering factors such as topography, the
geology of the site, hydrology, and revegetation potential;</text>
</clause><clause id="id87E498F0000440C1BC6A02A4489BCA29"><enum>(iii)</enum><text>be determined
by the Secretary; and</text>
</clause><clause id="idD4950A8A757743FF9888F3882CE1FBED"><enum>(iv)</enum><text>be sufficient to
ensure the completion of the reclamation plan if the work had to be performed
by the Secretary in the event of forfeiture.</text>
</clause></subparagraph></paragraph><paragraph id="HE1DA81DE38264F938F27251301C8EAA6"><enum>(3)</enum><header>Regulations</header><text>No
later than 1 year after the date of enactment of this subsection, the Secretary
shall promulgate regulations to implement the requirements of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7D324C2F22694F9CAF7138C4C52ED620"><enum>(b)</enum><header>Review and
report</header>
<paragraph id="id5FAFA616C2B04509BA964A36D362B24E"><enum>(1)</enum><header>Review</header><text>The
Comptroller General of the United States shall conduct a review of the adequacy
of the regulations promulgated by the Secretary of the Interior pursuant to
subsection (r)(3) of section 17 of the Mineral Leasing Act (30 U.S.C. 226) (as
added by subsection (a)) to ensure that operators will meet the requirements of
subsection (r) of that section.</text>
</paragraph><paragraph id="HD10C7FB11F3A44FD93866C421B3C31E3"><enum>(2)</enum><header>Report</header><text>Not
later than 180 days after the date on which the Secretary promulgates
regulations pursuant to subsection (r)(3) of section 17 of the Mineral Leasing
Act (30 U.S.C. 226) (as added by subsection (a)), the Comptroller General of
the United States shall submit to the Committee on Natural Resources of the
House of Representatives and the Committee on Energy and Natural Resources of
the Senate a report that describes the results of the review conducted under
paragraph (1), including—</text>
<subparagraph id="H686374A6F1E24CA391C8DEADAE7EB6"><enum>(A)</enum><text>any findings and
conclusions of the Comptroller General of the United States; and</text>
</subparagraph><subparagraph id="id58F99603E0F341F9A487E95B6270014A"><enum>(B)</enum><text>any
recommendations the Comptroller General may make with respect to any
legislation or administrative actions the Comptroller General of the United
States determines would be appropriate to ensure compliance with the
requirements of subsection (r) of that section.</text>
</subparagraph></paragraph></subsection></section>