[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3616 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3616

To expedite the exploration and development of oil and gas from Federal 
                     lands, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 22, 2009

  Ms. Fallin introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
To expedite the exploration and development of oil and gas from Federal 
                     lands, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Exploration and Production 
Reform Act of 2009''.

SEC. 2. REVIEW OF OUTER CONTINENTAL SHELF EXPLORATION PLANS.

    Subsections (c) and (d) of section 11 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1340) are amended to read as follows:
    ``(c) Plan Review; Plan Provisions.--
            ``(1) Except as otherwise provided in this Act, prior to 
        commencing exploration pursuant to any oil and gas lease issued 
        or maintained under this Act, the holder thereof shall submit 
        an exploration plan (hereinafter in this section referred to as 
        a `plan') to the Secretary for review which shall include all 
        information and documentation required under paragraphs (2) and 
        (3). The Secretary shall review the plan for completeness 
        within 10 days of submission. If the Secretary finds that the 
        plan is not complete, the Secretary shall notify the lessee 
        with a detailed explanation and require such modifications of 
        such plan as are necessary to achieve completeness. The 
        Secretary shall have 10 days to review a modified plan for 
        completeness. Such plan may apply to more than one lease held 
        by a lessee in any one region of the outer Continental Shelf, 
        or by a group of lessees acting under a unitization, pooling, 
        or drilling agreement, and the lessee shall certify that such 
        plan is consistent with the terms of the lease and is 
        consistent with all statutory and regulatory requirements in 
        effect on the date of issuance of the lease, and any 
        regulations promulgated under this Act to the conservation of 
        resources after the date of the lease issuances. The Secretary 
        shall have 30 days from the date the plan is deemed complete to 
        conduct a review of the plan. If the Secretary finds the plan 
        is not consistent with the lease and all such statutory and 
        regulatory requirements, the Secretary shall notify the lessee 
        with a detailed explanation of such modifications of such plan 
        as are necessary to achieve compliance. The Secretary shall 
        have 30 days to review any modified plan submitted by the 
        lessee. The lessee shall not take any action under the 
        exploration plan within the 30-day review period, or thereafter 
        until the plan has been modified to achieve compliance as so 
        notified.
            ``(2) An exploration plan submitted under this subsection 
        shall include, in the degree of detail which the Secretary may 
        by regulation require--
                    ``(A) a schedule of anticipated exploration 
                activities to be undertaken;
                    ``(B) a description of equipment to be used for 
                such activities;
                    ``(C) the general location of each well to be 
                drilled; and
                    ``(D) such other information deemed pertinent by 
                the Secretary.
            ``(3) The Secretary may, by regulation, require that such 
        plan be accompanied by a general statement of development and 
        production intentions which shall be for planning purposes only 
        and which shall not be binding on any party.
    ``(d) Plan Revisions; Conduct of Exploration Activities.--
            ``(1) If a significant revision of an exploration plan 
        under this subsection is submitted to the Secretary, the 
        process to be used for the review of such revision shall be the 
        same as set forth in subsection (c) of this section.
            ``(2) All exploration activities pursuant to any lease 
        shall be conducted in accordance with an exploration plan or a 
        revised plan which has been submitted to and reviewed by the 
        Secretary.''.

SEC. 3. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION 
              PLANS.

    Section 25 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1351(a)) is amended to read as follows:

``SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION 
              PLANS.

    ``(a) Development and Production Plans; Submission to Secretary; 
Statement of Facilities and Operation; Submission to Governors of 
Affected States and Local Governments.--
            ``(1) Prior to development and production pursuant to an 
        oil and gas lease issued on or after September 18, 1978, for 
        any area of the outer Continental Shelf, or issued or 
        maintained prior to September 18, 1978, for any area of the 
        outer Continental Shelf, with respect to which no oil or gas 
        has been discovered in paying quantities prior to September 18, 
        1978, the lessee shall submit a development and production plan 
        (hereinafter in this section referred to as a `plan') to the 
        Secretary for review.
            ``(2) A plan shall be accompanied by a statement describing 
        all facilities and operations, other than those on the outer 
        Continental Shelf, proposed by the lessee and known by the 
        lessee (whether or not owned or operated by such lessee) that 
        will be constructed or utilized in the development and 
        production of oil or gas from the lease area, including the 
        location and site of such facilities and operations, the land, 
        labor, material, and energy requirements associated with such 
        facilities and operations, and all environmental and safety 
        safeguards to be implemented.
            ``(3) Except for any privileged or proprietary information 
        (as such term is defined in regulations issued by the 
        Secretary), the Secretary, within 30 days after receipt of a 
        plan and statement, shall--
                    ``(A) submit such plan and statement to the 
                Governor of any affected State, and upon request to the 
                executive of any affected local government; and
                    ``(B) make such plan and statement available to any 
                appropriate interstate regional entity and the public.
    ``(b) Development and Production Activities in Accordance With Plan 
as Lease Requirement.--After enactment of the Federal Exploration and 
Production Reform Act of 2008, no oil and gas lease may be issued 
pursuant to this Act in any region of the outer Continental Shelf, 
unless such lease requires that development and production activities 
be carried out in accordance with a plan that complies with the 
requirements of this section. This section shall also apply to leases 
that do not have an approved development and production plan as of the 
date of enactment of the Federal Exploration and Production Reform Act 
of 2008.
    ``(c) Scope and Contents of Plan.--A plan may apply to more than 
one oil and gas lease, and shall set forth, in the degree of detail 
established by regulations issued by the Secretary--
            ``(1) the general work to be performed;
            ``(2) a description of all facilities and operations 
        located on the outer Continental Shelf that are proposed by the 
        lessee or known by the lessee (whether or not owned or operated 
        by such lessee) to be directly related to the proposed 
        development, including the location and size of such facilities 
        and operations, and the land, labor, material, and energy 
        requirements associated with such facilities and operations;
            ``(3) the environmental safeguards to be implemented on the 
        outer Continental Shelf and how such safeguards are to be 
        implemented;
            ``(4) all safety standards to be met and how such standards 
        are to be met;
            ``(5) an expected rate of development and production and a 
        time schedule for performance; and
            ``(6) such other relevant information as the Secretary may 
        by regulation require.
    ``(d) Completeness Review of the Plan.--
            ``(1) Prior to commencing any activity under a development 
        and production plan pursuant to any oil and gas lease issued or 
        maintained under this Act, the lessee shall certify that the 
        plan is consistent with the terms of the lease and that it is 
        consistent with all statutory and regulatory requirements in 
        effect on the date of issuance of the lease, and any 
        regulations promulgated under this Act related to the 
        conservation of resources after the date of lease issuance. The 
        plan shall include all required information and documentation 
        required under subsection (c).
            ``(2) The Secretary shall review the plan for completeness 
        within 30 days of submission. If the Secretary finds that the 
        plan is not complete, the Secretary shall notify the lessee 
        with a detailed explanation of such modifications of such plan 
        as are necessary to achieve completeness. The Secretary shall 
        have 30 days to review a modified plan for completeness.
    ``(e) Review for Consistency of the Plan.--
            ``(1) After a determination that a plan is complete, the 
        Secretary shall have 120 days to conduct a review of the plan, 
        to ensure that it is consistent with the terms of the lease, 
        and that it is consistent with all such statutory and 
        regulatory requirements applicable to the lease. The review 
        shall ensure that the plan is consistent with lease terms, and 
        statutory and regulatory requirements applicable to the lease, 
        related to national security or national defense, including any 
        military operating stipulations or other restrictions. The 
        Secretary shall seek the assistance of the Department of 
        Defense in the conduct of the review of any plan prepared under 
        this section for a lease containing military operating 
        stipulations or other restrictions and shall accept the 
        assistance of the Department of Defense in the conduct of the 
        review of any plan prepared under this section for any other 
        lease when the Secretary of Defense requests an opportunity to 
        participate in the review. If the Secretary finds that the plan 
        is not consistent, the Secretary shall notify the lessee with a 
        detailed explanation of such modifications of such plan as are 
        necessary to achieve consistency.
            ``(2) The Secretary shall have 120 days to review a 
        modified plan.
            ``(3) The lessee shall not conduct any activities under the 
        plan during any 120-day review period, or thereafter until the 
        plan has been modified to achieve compliance as so notified.
            ``(4) After review by the Secretary provided for by this 
        section, a lessee may operate pursuant to the plan without 
        further review or approval by the Secretary.
    ``(f) Review of Revision of the Approved Plan.--The lessee may 
submit to the Secretary any revision of a plan if the lessee determines 
that such revision will lead to greater recovery of oil and natural 
gas, improve the efficiency, safety, and environmental protection of 
the recovery operation, is the only means available to avoid 
substantial economic hardship to the lessee, or is otherwise not 
inconsistent with the provisions of this Act, to the extent such 
revision is consistent with protection of the human, marine, and 
coastal environments. The process to be used for the review of any such 
revision shall be the same as that set forth in subsections (d) and 
(e).
    ``(g) Cancellation of Lease on Failure To Submit Plan or Comply 
With a Plan.--Whenever the owner of any lease fails to submit a plan in 
accordance with regulations issued under this section, or fails to 
comply with a plan, the lease may be canceled in accordance with 
sections 5(c) and (d). Termination of a lease because of failure to 
comply with a plan, including required modifications or revisions, 
shall not entitle a lessee to any compensation.
    ``(h) Production and Transportation of Natural Gas; Submission of 
Plan to Federal Energy Regulatory Commission; Impact Statement.--If any 
development and production plan submitted to the Secretary pursuant to 
this section provides for the production and transportation of natural 
gas, the lessee shall contemporaneously submit to the Federal Energy 
Regulatory Commission that portion of such plan that relates to the 
facilities for transportation of natural gas. The Secretary and the 
Federal Energy Regulatory Commission shall agree as to which of them 
shall prepare an environmental impact statement pursuant to the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
applicable to such portion of such plan, or conduct studies as to the 
effect on the environment of implementing it. Thereafter, the findings 
and recommendations by the agency preparing such environmental impact 
statement or conducting such studies pursuant to such agreement shall 
be adopted by the other agency, and such other agency shall not 
independently prepare another environmental impact statement or 
duplicate such studies with respect to such portion of such plan, but 
the Federal Energy Regulatory Commission, in connection with its review 
of an application for a certificate of public convenience and necessity 
applicable to such transportation facilities pursuant to section 7 of 
the Natural Gas Act (15 U.S.C. 717f), may prepare such environmental 
studies or statement relevant to certification of such transportation 
facilities as have not been covered by an environmental impact 
statement or studies prepared by the Secretary. The Secretary, in 
consultation with the Federal Energy Regulatory Commission, shall 
promulgate rules to implement this subsection, but the Federal Energy 
Regulatory Commission shall retain sole authority with respect to rules 
and procedures applicable to the filing of any application with the 
Commission and to all aspects of the Commission's review of, and action 
on, any such application.''.

SEC. 4. REGULATION OF ONSHORE SURFACE-DISTURBING ACTIVITIES.

    (a) Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is 
amended to read as follows:
    ``(g) Regulation of Surface-Disturbing Activities.--
            ``(1) Regulation of surface-disturbing activities.--The 
        Secretary of the Interior, or for National Forest lands, the 
        Secretary of Agriculture, shall regulate all surface-disturbing 
        activities conducted pursuant to any lease issued under this 
        Act, and shall determine reclamation and other actions as 
        required in the interest of conservation of surface resources.
            ``(2) Submission of exploration plan; completion review; 
        compliance review.--
                    ``(A) Prior to beginning oil and gas exploration 
                activities, a lessee shall submit an exploration plan 
                to the Secretary of the Interior for review.
                    ``(B) The Secretary shall review the plan for 
                completeness within 10 days of submission.
                    ``(C) In the event the exploration plan is 
                determined to be incomplete, the Secretary shall notify 
                the lessee in writing and specify the items or 
                information needed to complete the exploration plan.
                    ``(D) The Secretary shall have 10 days to review 
                any modified exploration plan submitted by the lessee.
                    ``(E) To be deemed complete, an exploration plan 
                shall include, in the degree of detail to be determined 
                by the Secretary by rule or regulation--
                            ``(i) a drilling plan containing a 
                        description of the drilling program;
                            ``(ii) the surface and projected completion 
                        zone location;
                            ``(iii) pertinent geologic data;
                            ``(iv) expected hazards, and proposed 
                        mitigation measures to address such hazards;
                            ``(v) a schedule of anticipated exploration 
                        activities to be undertaken;
                            ``(vi) a description of equipment to be 
                        used for such activities;
                            ``(vii) a certification from the lessee 
                        stating that the exploration plan complies with 
                        all lease, regulatory and statutory 
                        requirements in effect on the date of the 
                        issuance of the lease and any regulations 
                        promulgated after the date of lease issuance 
                        related to the conservation of resources;
                            ``(viii) evidence that the lessee has 
                        secured an adequate bond, surety, or other 
                        financial arrangement prior to commencement of 
                        any surface-disturbing activity;
                            ``(ix) a plan that details the complete and 
                        timely reclamation of the lease tract; and
                            ``(x) such other relevant information as 
                        the Secretary may by regulation require.
                    ``(F) Upon a determination that the exploration 
                plan is complete, the Secretary shall have 30 days from 
                the date the plan is deemed complete to conduct a 
                review of the plan.
                    ``(G) If the Secretary finds the exploration plan 
                is not consistent with all statutory and regulatory 
                requirements described in subparagraph (E)(vii), the 
                Secretary shall notify the lessee with a detailed 
                explanation of such modifications of the exploration 
                plan as are necessary to achieve compliance.
                    ``(H) The lessee shall not take any action under 
                the exploration plan within a 30-day review period, or 
                thereafter until the plan has been modified to achieve 
                compliance as so notified.
                    ``(I) After review by the Secretary provided by 
                this subsection, a lessee may operate pursuant to the 
                plan without further review or approval by the 
                Secretary.
            ``(3) Plan revisions; conduct of exploration activities.--
                    ``(A) If a significant revision of an exploration 
                plan under this subsection is submitted to the 
                Secretary, the process to be used for the review of 
                such revision shall be the same as set forth in 
                paragraph (1) of this subsection.
                    ``(B) All exploration activities pursuant to any 
                lease shall be conducted in accordance with an 
                exploration plan that has been submitted to and 
                reviewed by the Secretary or a revision of such plan.
            ``(4) Submission of development and production plan; 
        completeness review; compliance review.--
                    ``(A) Prior to beginning oil and gas development 
                and production activities, a lessee shall submit a 
                development and exploration plan to the Secretary of 
                the Interior. Upon submission, such plans shall be 
                subject to a review for completeness.
                    ``(B) The Secretary shall review the plan for 
                completeness within 30 days of submission.
                    ``(C) In the event a development and production 
                plan is determined to be incomplete, the Secretary 
                shall notify the lessee in writing and specify the 
                items or information needed to complete the plan.
                    ``(D) The Secretary shall have 30 days to review 
                for completeness any modified development and 
                production plan submitted by the lessee.
                    ``(E) To be deemed complete, a development and 
                production plan shall include, in the degree of detail 
                to be determined by the Secretary by rule or 
                regulation--
                            ``(i) a drilling plan containing a 
                        description of the drilling program;
                            ``(ii) the surface and projected completion 
                        zone location;
                            ``(iii) pertinent geologic data;
                            ``(iv) expected hazards, and proposed 
                        mitigation measures to address such hazards;
                            ``(v) a statement describing all facilities 
                        and operations proposed by the lessee and known 
                        by the lessee (whether or not owned or operated 
                        by such lessee) that shall be constructed or 
                        utilized in the development and production of 
                        oil or gas from the leases areas, including the 
                        location and site of such facilities and 
                        operations, the land, labor, material, and 
                        energy requirements associated with such 
                        facilities and operations;
                            ``(vi) the general work to be performed;
                            ``(vii) the environmental safeguards to be 
                        implemented in connection with the development 
                        and production and how such safeguards are to 
                        be implemented;
                            ``(viii) all safety standards to be met and 
                        how such standards are to be met;
                            ``(ix) an expected rate of development and 
                        production and a time schedule for performance;
                            ``(x) a certification from the lessee 
                        stating that the development and production 
                        plan complies with all lease, regulatory, and 
                        statutory requirements in effect on the date of 
                        issuance of the lease, and any regulations 
                        promulgated after the date of lease issuance 
                        related to the conservation of resources;
                            ``(xi) evidence that the lessee has secured 
                        an adequate bond, surety, or other financial 
                        arrangement prior to commencement of any 
                        surface-disturbing activity;
                            ``(xii) a plan that details the complete 
                        and timely reclamation of the lease tract; and
                            ``(xiii) such other relevant information as 
                        the Secretary may by regulation require.
                    ``(F) Upon a determination that the development and 
                production plan is complete, the Secretary shall have 
                120 days from the date the plan is deemed complete to 
                conduct a review of the plan.
                    ``(G) If the Secretary finds the development and 
                production plan is not consistent with all statutory 
                and regulatory requirements described in subparagraph 
                (E)(x), the Secretary shall notify the lessee with a 
                detailed explanation of such modifications of the 
                development and production plan as are necessary to 
                achieve compliance.
                    ``(H) The lessee shall not take any action under 
                the development and production plan within a 120-day 
                review period, or thereafter until the plan has been 
                modified to achieve compliance as so notified.
            ``(5) Plan revisions; conduct of development and production 
        activities.--
                    ``(A) If a significant revision of a development 
                and production plan under this subsection is submitted 
                to the Secretary, the process to be used for the review 
                of such revision shall be the same as set forth in 
                paragraph (4) of this subsection.
                    ``(B) All development and production activities 
                pursuant to any lease shall be conducted in accordance 
                with a development and production plan that has been 
                submitted to and reviewed by the Secretary or a 
                revision of such plan.
            ``(6) Cancellation of lease on failure to submit plan or 
        comply with approved plan.--Whenever the owner of any lease 
        fails to submit a plan in accordance with regulations issued 
        under this section, or fails to comply with a plan, the lease 
        may be canceled in accordance with section 31. Termination of a 
        lease because of failure to comply with a plan, including 
        required modifications or revisions, shall not entitle a lessee 
        to any compensation.''.
    (b) Section 17(p) of the Mineral Leasing Act (30 U.S.C. 226(p)) is 
repealed.
                                 <all>