[Congressional Record (Bound Edition), Volume 153 (2007), Part 3]
[Extensions of Remarks]
[Pages 4565-4566]
[From the U.S. Government Publishing Office, www.gpo.gov]




   REINTRODUCTION OF THE WESTERN WATERS AND FARM LANDS PROTECTION ACT

                                 ______
                                 

                            HON. MARK UDALL

                              of colorado

                    in the house of representatives

                       Friday, February 16, 2007

  Mr. UDALL of Colorado. Madam Speaker, I am today again introducing 
the Western Waters and Farm Lands Protection Act--a bill intended to 
make it more likely that the energy resources in our Western States 
will be developed in ways that are protective of vital water supplies 
and respectful of the rights and interests of the agricultural 
community.
  Based on my previous legislation that was endorsed by the Colorado 
Farm Bureau and the American Farm Bureau Federation, it would do three 
things:
  First, it would establish clear requirements for proper management of 
ground water that is extracted in the course of oil and gas 
development. Second, it would provide for greater involvement of 
surface owners in plans for oil and gas development and requires the 
Interior Department to give surface owners advance notice of lease 
sales that would affect their lands and to notify them of subsequent 
events related to proposed or ongoing energy development. And, finally, 
it would require developers to draft reclamation plans and post bonds 
top assure restoration of lands affected by drilling for federal oil 
and gas.


                      PURPOSES OF THE LEGISLATION

  Madam Speaker, the western United States is blessed with significant 
energy resources. In appropriate places, and under appropriate 
conditions, they can and should be developed for the benefit of our 
country. But it is important to recognize the importance of other 
resources particularly water--and other uses of the lands involved--and 
this bill responds to this need.
  Its primary purposes: (1) to assure that the development of those 
energy resources in the West will not mean destruction of precious 
water resources; (2) to reduce potential conflicts between development 
of energy resources and the interests and concerns of those who own the 
surface estate in affected lands; and (3) to provide for appropriate 
reclamation of affected lands.


                        WATER QUALITY PROTECTION

  One new energy resource is receiving great attention--gas associated 
with coal deposits, often referred to as coalbed methane. An October 
2000 United States Geological Survey report estimated that the U.S. may 
contain more than 700 trillion cubic feet (tcf) of coalbed methane and 
that more than 100 tcf of this may be recoverable using existing 
technology. In part because of the availability of these reserves and 
because of tax incentives to exploit them, the West has seen a 
significant increase in its development.
  Development of coalbed methane usually involves the extraction of 
water from underground strata. Some of this extracted water is 
reinjected into the ground, while some is retained in surface holding 
ponds or released and allowed to flow into streams or other water 
bodies, including irrigation ditches.
  The quality of the extracted waters varies from one location to 
another. Some are of good quality, but often they contain dissolved 
minerals (such as sodium, magnesium, arsenic, or selenium) that can 
contaminate other waters--something that can happen because of leaks or 
leaching from holding ponds or because the extracted waters are simply 
discharged into a stream or other body of water. In addition, extracted 
waters often have other characteristics, such as high acidity and 
temperature, which can adversely affect agricultural uses of land or 
the quality of the environment.
  In Colorado and other States in the arid West, water is scarce and 
precious--and use of extracted water has the potential to augment the 
supplies for irrigation and other purposes. Because I want to explore 
how that potential might be realized without reducing water quality or 
harming the environment, I have introduced a bill (H.R. 902) that would 
authorize research and demonstration efforts toward that end.
  But, at the same time, it is vital that development of energy 
resources be accompanied by appropriate safeguards.
  That is the purpose of the first part of the bill (Title I). That 
part would require those who develop federal oil or gas--including 
coalbed methane--under the Mineral Leasing Act to take steps to make 
sure their activities do not harm water resources.
  Specifically, under section 101, oil or gas operators who damage a 
water resource--by contaminating it, reducing it, or interrupting it--
would be required to provide replacement water to the water users. And 
this section also specifies that water produced under a mineral lease 
must be dealt with in ways that comply with all Federal and State 
requirements.
  Further, because water is so important, the bill requires oil and gas 
operators to make the protection of water part of their plans from the 
very beginning, requiring applications for oil or gas leases to include 
details of ways in which operators will protect water quality and 
quantity and the rights of water users.
  These are not onerous requirements, but they are very important--
particularly with the great increase in drilling for coalbed methane 
and other energy resources in Colorado, Wyoming, Montana, and other 
western states.


                        Surface Owner Protection

  In many parts of the country, the owner of some land's surface does 
not necessarily own the underlying minerals. And in Colorado and other 
Western States, those mineral estates often belong to the Federal 
Government while the surface estates are owned by others, including 
farmers and ranchers.
  This split-estate situation can lead to conflicts. And while I 
support development of energy resources where appropriate, I also 
believe that this must be done responsibly and in a way that 
demonstrates respect for the environment and overlying landowners.
  The second part of the bill (Title II) is intended to promote that 
approach, by establishing a system for development of federal oil and 
gas in split-estate situations that resembles--but is not identical 
to--the system for development of federally owned coal in similar 
situations.
  Under Federal law, the leasing of federally owned coal resources on 
lands where the surface estate is not owned by the United States is 
subject to the consent of the surface estate owners. But neither this 
consent requirement nor the operating and bonding requirements 
applicable to development of federally owned locatable minerals applies 
to the leasing or development of oil or gas in similar split-estate 
situations.
  I believe that there should be similar respect for the rights and 
interests of surface estate owners affected by development of oil and 
gas and that this should be done by providing clear and adequate 
standards and increasing the involvement of surface owners.
  Accordingly, the bill requires the Interior Department to give 
surface owners advance notice of lease sales that would affect their 
lands and to notify them of subsequent events related to proposed or 
ongoing developments related to such leases.

[[Page 4566]]

  In addition, the bill requires that anyone proposing to drill for 
federal minerals in a split-estate situation must first try to reach an 
agreement with the surface owner that spells out what will be done to 
minimize interference with the surface owner's use and enjoyment and to 
provide for reclamation of affected lands and compensation for any 
damages.
  I am convinced that most energy companies want to avoid harming the 
surface owners, so I expect that it will usually be possible for them 
to reach such agreements. However, I recognize that this may not always 
be the case--and the bill includes two provisions that address this 
possibility: (1) if no agreement is reached within 90 days, the bill 
requires that the matter be referred to neutral arbitration; and (2) 
the bill provides that if even arbitration fails to resolve 
differences, the energy development can go forward, subject to Interior 
Department regulations that will balance the energy development with 
the interests of the surface owner or owners.
  As I mentioned, these provisions are patterned on the current law 
dealing with development of federally owned coal in split-estate 
situations. However, it is important to note one major difference--
namely, while current law allows a surface owner to effectively veto 
development of coal resources, under the bill a surface owner 
ultimately could not block development of oil or gas underlying his or 
her lands. This difference reflects the fact that appropriate 
development of oil and natural gas is needed.


                        Reclamation Requirements

  The bill's third part (Titles III and IV) addresses reclamation of 
affected lands.
  Title III would amend the Mineral Leasing Act by adding an explicit 
requirement that parties that produced oil or gas (including coalbed 
methane) under a federal lease must restore the affected land so it 
will be able to support the uses it could support before the energy 
development. Toward that end, this part of the bill requires 
development of reclamation plans and posting of reclamation bonds. In 
addition, so Congress can consider whether changes are needed, the bill 
requires the General Accounting Office to review how these requirements 
are being implemented and how well they are working.
  And, finally, Title IV would require the Interior Department to--(1) 
establish, in cooperation with the Agriculture Department, a program 
for reclamation and closure of abandoned oil or gas wells located on 
lands managed by an Interior Department agency or the Forest Service or 
drilled for development of federal oil or gas in split-estate 
situations; and (2) establish, in consultation with the Energy 
Department, a program to provide technical assistance to State and 
tribal governments that are working to correct environmental problems 
caused by abandoned wells on other lands. The bill would authorize 
annual appropriations of $5 million in fiscal 2005 and 2006 for the 
federal program and annual appropriations of $5 million in fiscal 2005, 
2006, and 2007 for the program of assistance to the states and tribes.
  Madam Speaker, our country is overly dependent on fossil fuels, to 
the detriment of our environment, our national security, and our 
economy. We need to diversify our energy portfolio and make more use of 
alternatives. But in the interim, petroleum and natural gas (including 
coalbed methane) will remain important parts of our energy portfolio--
and I support their development in appropriate and responsible ways. I 
believe this legislation can contribute to that by establishing some 
clear, reasonable rules that will provide greater assurance and 
certainty for all concerned, including the energy industry and the 
residents of Colorado, New Mexico, and other Western states. Following 
is a brief outline of its major provisions.

                            Outline of Bill

       Section One--This section provides a short title (``Western 
     Waters and Farm Lands Protection Act''), makes several 
     findings about the need for the legislation, and states the 
     bill's purpose.


                TITLE 1.--PROTECTION OF WATER RESOURCES

       Section 101 amends current law to make clear that 
     extraction of water in connection with development of oil or 
     gas (including coalbed methane) is subject to an appropriate 
     permit and the requirement to minimize adverse effects on 
     affected lands or waters.
       Section 102 provides that nothing in the bill will--(1) 
     affect any State's right or jurisdiction with respect to 
     water; or (2) limit, alter, modify, or amend any interstate 
     compact or judicial rulings that apportion water among and 
     between different States.


                TITLE II.--PROTECTION OF SURF ACE OWNERS

       Section 201 provides definitions for several terms used in 
     Title II.
       Section 202 requires a party seeking to develop federal oil 
     or gas in a split-estate situation to first seek to reach an 
     agreement with the surface owner or owners that spells out 
     how the energy development will be carried out, how the 
     affected lands will be reclaimed, and that compensation will 
     be made for damages. If no such agreement is reached within 
     90 days, the matter is to be referred to arbitration by a 
     neutral party identified by the Interior Department.
       Section 203 provides that if no agreement under section 202 
     is reached within 90 days after going to arbitration, the 
     Interior Department can permit energy development to proceed 
     under an approved plan of operations and posting of an 
     adequate bond. This section also requires the Interior 
     Department to provide surface owners with an opportunity to 
     comment on proposed plans of operations, participate in 
     decisions regarding the amount of the bonds that will be 
     required, and to participate in on-site inspections if the 
     surface owners have reason to believe that plans of 
     operations are not being followed. In addition, this section 
     allows surface owners to petition the Interior Department for 
     payments under bonds to compensate for damages and authorizes 
     the Interior Department to release bonds after the energy 
     development is completed and any damages have been 
     compensated.
       Section 204 requires the Interior Department to notify 
     surface owners about lease sales and subsequent decisions 
     involving federal oil or gas resources in their lands.


                        TITLE III.--RECLAMATION

       This title amends current law to require parties producing 
     oil or gas under a federal lease to restore affected lands 
     and to post bonds to cover reclamation costs. It also 
     requires the GAO to review Interior Department implementation 
     of this part of the bill and to report to Congress about the 
     results of that review and any recommendations for 
     legislative or administrative changes to improve matters.


                 TITLE IV.--ABANDONED OIL OR GAS WELLS

       Section 401 defines the wells that would be covered by the 
     title.
       Section 402 requires the Interior Department, in 
     cooperation with the Department of Agriculture, to establish 
     a program for reclamation and closure of abandoned wells on 
     federal lands or that were drilled for development 
     offederally-owned minerals in split-estate situations. It 
     authorizes appropriations of $5 million in fiscal years 2005 
     and 2006.
       Section 403 requires the Interior Department, in 
     consultation with DOE, to establish a program to assist 
     states and tribes to remedy environmental problems caused by 
     abandoned oil or gas wells on non-federal and Indian lands. 
     It authorizes appropriations of $5 million in fiscal years 
     2008, 2009, and 2010.

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