[House Report 117-629]
[From the U.S. Government Publishing Office]


117th Congress   }                                       {   Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                       {   117-629

======================================================================



 
           BONDING REFORM AND TAXPAYER PROTECTION ACT OF 2021

                                _______
                                

 December 14, 2022.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Grijalva, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 1505]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 1505) to amend the Mineral Leasing Act to make 
certain adjustments to the regulation of surface-disturbing 
activities and to protect taxpayers from unduly bearing the 
reclamation costs of oil and gas development, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be referred to as the ``Bonding Reform and Taxpayer 
Protection Act of 2021''.

SEC. 2. SURFACE DISTURBANCE AND RECLAMATION.

  Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is 
amended to read as follows:
  ``(g) Bonding Requirements.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Interim reclamation plan.--The term `Interim 
                Reclamation Plan' means an ongoing plan specifying 
                reclamation steps to be taken on all disturbed areas 
                covered by any lease issued under this Act that are not 
                needed for active operations.
                  ``(B) Final reclamation plan.--The term `Final 
                Reclamation Plan' means a plan describing all 
                reclamation activity to be conducted for all disturbed 
                areas, including locations, facilities, trenches, 
                rights-of-way, roads, and any other surface disturbance 
                covered by a lease issued under this Act prior to final 
                abandonment.
                  ``(C) Operator.--The term `operator' means, with 
                respect to an oil or gas operation, any entity, 
                including the lessee or operating rights owner, that 
                has stated in writing to a relevant authority that such 
                entity is responsible for any portion of such 
                operation.
                  ``(D) Secretary concerned.--The term `Secretary 
                concerned' means--
                          ``(i) the Secretary of the Interior for 
                        public lands administered by such Secretary;
                          ``(ii) the Secretary of Agriculture for 
                        forest service lands.
          ``(2) In general.--The Secretary concerned 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.
          ``(3) Reclamation plans required.--
                  ``(A) Analysis and approval required.--No permit to 
                drill on an oil and gas lease issued under this Act may 
                be granted without the analysis and approval by the 
                Secretary concerned of both an interim reclamation plan 
                and a final reclamation plan covering proposed surface-
                disturbing activities within the lease area.
                  ``(B) Plans of operations.--All Federal plans or 
                permits submitted pursuant to this Act with the 
                potential to create surface disturbance shall include 
                an Interim and Final Reclamation Plan.
                  ``(C) Secretarial review.--The Secretary concerned 
                shall review each Interim Reclamation Plan at regular 
                intervals and shall require such plans to be amended as 
                warranted, subject to the approval of such Secretary.
          ``(4) Bonding.--
                  ``(A) In general.--
                          ``(i) Regulation.--Not later than 180 days 
                        after the date of enactment of the Bonding 
                        Reform and Taxpayer Protection Act of 2021, the 
                        Secretary concerned shall, by regulation, 
                        require that an adequate bond, surety, or other 
                        financial arrangement be established prior to 
                        the commencement of surface-disturbing 
                        activities on any lease under this Act.
                          ``(ii) Amount of bond.--In determining the 
                        adequacy of a bond, surety, or other financial 
                        instrument required by regulation under clause 
                        (i), the Secretary shall find that such 
                        arrangement is adequate if it is not less than 
                        the greater of--
                                  ``(I) the amount necessary for--
                                          ``(aa) the complete and 
                                        timely reclamation of the lease 
                                        tract;
                                          ``(bb) the restoration of any 
                                        lands or surface waters 
                                        adversely affected by lease 
                                        operations after the 
                                        abandonment or cessation of oil 
                                        and gas operations on the 
                                        lease; or
                                          ``(cc) in the case of an 
                                        idled well, the total plugging 
                                        and reclamation costs for each 
                                        idled well controlled by the 
                                        same operator;
                                  ``(II) $150,000 in the case of an 
                                arrangement for an individual surface-
                                disturbing activity of each entity on 
                                an oil or gas lease; or
                                  ``(III) $500,000 in the case of an 
                                arrangement for all surface-disturbing 
                                activities of each entity in a State.
                          ``(iii) Adjustment for inflation.--
                                  ``(I) In general.--In the application 
                                of clause (ii), the Secretaries 
                                concerned shall jointly at least once 
                                every three years, at the beginning of 
                                the fiscal year, adjust the dollar 
                                amounts in clause (ii) to account for 
                                inflation based on the Consumer Price 
                                Index for all urban consumer published 
                                by the Department of Labor.
                                  ``(II) Rounding.--If any amount as 
                                adjusted under subclause (I) is not a 
                                multiple of $1,000, such amount shall 
                                be rounded to the next higher multiple 
                                of $1000.
                  ``(B) Prohibition.--The Secretary concerned shall not 
                issue or approve the assignment of any lease under the 
                terms of this section to any person, association, 
                corporation, or any subsidiary, affiliate, or person 
                controlled by or under common control with such person, 
                association, or corporation, during any period in 
                which, as determined by the relevant Secretary, such 
                entity has failed or refused to comply in any material 
                respect with the reclamation requirements and other 
                standards established under this section for any prior 
                lease to which such requirements and standards applied.
                  ``(C) Notice and opportunity for compliance.--Prior 
                to making a determination not to issue or approve the 
                assignment of a lease under subparagraph (B) with 
                respect to an entity the Secretary concerned shall 
                provide such entity with adequate notification and an 
                opportunity to comply with such reclamation 
                requirements and other standards and shall consider 
                whether any administrative or judicial appeal is 
                pending. Once the entity has complied with the 
                reclamation requirement or other standard concerned 
                each oil or gas lease may be issued to such entity 
                under this Act.
                  ``(D) Review upon transfer.--The Secretary concerned 
                shall review the adequacy of a bond, surety, or other 
                financial instrument anytime a lease or well under this 
                Act is transferred. The Secretary shall find such bond, 
                surety, or other financial instrument adequate if such 
                arrangement--
                          ``(i) meets the requirement described in 
                        subparagraph (A)(ii); and
                          ``(ii) is not for a lesser amount than the 
                        amount maintained by the current operator.
                  ``(E) Requiring higher bond amounts.--The Secretary 
                concerned shall, at any time that such Secretary 
                determines that a bond, surety, or other financial 
                instrument required by a regulation issued pursuant to 
                subparagraph (A) no longer meets the requirements of 
                clause (ii) of such subparagraph, increase the required 
                amount of such financial arrangement to the level 
                required by subparagraph (A).
                  ``(F) Phasing-in bond increases.--With respect to a 
                bond increased under subparagraph (E), the Secretary 
                concerned shall require the operator to meet the 
                following deadlines in posting the amount of the 
                increase that results from the operation of such 
                paragraph:
                          ``(i) 25 percent of the increase by not later 
                        than 1 year after the date on which the 
                        determination was made under subparagraph (D).
                          ``(ii) 75 percent of the increase by not 
                        later than 2 years after such date.
                          ``(iii) 100 percent of the increase by not 
                        later than 3 years after such date.
          ``(5) Standards.--Not later than 180 days after the date of 
        enactment of the Bonding Reform and Taxpayer Protection Act of 
        2021, the Secretary of the Interior and the Secretary of 
        Agriculture shall, by regulation, establish uniform standards 
        for all Interim and Final Reclamation Plans. The goal of such 
        plans shall be the restoration of the affected ecosystem to a 
        condition approximating or equal to that which existed prior to 
        the surface disturbance. Such standards shall include 
        restoration of natural vegetation and hydrology, habitat 
        restoration, salvage, storage and reuse of topsoils, erosion 
        control, control of invasive species and noxious weeds and 
        natural contouring.
          ``(6) Monitoring.--The Secretary concerned shall not approve 
        final abandonment and shall not release any bond required by 
        this Act until the standards and requirement for final 
        reclamation established pursuant to this Act have been met.
          ``(7) Financial assurances.--The Secretary concerned shall 
        not release the financial assurance established for a lease 
        until the operator has paid the inspection fees required under 
        section 4 for the lease covered by the financial assurance 
        instrument.
          ``(8) Bond adequacy review.--The Secretary shall conduct bond 
        adequacy reviews as required under paragraph (4)(D) in 
        accordance with Bureau of Land Management Instruction 
        Memorandum No. 2019-014, dated November 15, 2018.
          ``(9) Orphaned well fee.--The Secretary of the Interior shall 
        collect a per barrel of oil equivalent fee of not less than 
        $0.10 on oil and gas produced from Federal lands for the use of 
        plugging and reclamation of orphaned wells.''.

SEC. 3. CHANGES TO THE BLM PERMIT PROCESSING IMPROVEMENT FUND.

  (a) Name of Fund.--Section 35(c)(2)(B) of the Mineral Leasing Act (30 
U.S.C. 191(c)(2)(B)) is amended by striking ``BLM Permit Processing 
Improvement Fund'' and inserting ``BLM Administration and 
Accountability Fund''.
  (b) Additional Uses.--Section 35(c)(3)(A) of such Act (30 
191(c)(3)(A)) is amended by adding at the end the following: ``Such 
coordination and processing shall include--
                          ``(i) the coordination and review process for 
                        financial assurances for oil and gas leases and 
                        bond releases for oil and gas leases;
                          ``(ii) the inventory of orphaned wells and 
                        coordinate the processing of requests for 
                        delays in the permanent closure of inactive 
                        wells; and
                          ``(iii) coordination and processing related 
                        to environmental and cultural resources reviews 
                        applicable to oil and gas activities.''.

SEC. 4. INSPECTION FEES.

  (a) In General.--Section 108 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1718) is amended by adding at the end 
the following:
  ``(d) Inspection Fees.--
          ``(1) In general.--Except as provided in paragraph (5), the 
        designated operator under each oil and gas lease on Federal or 
        Indian lands, or each unit and communitization agreement that 
        includes one or more such Federal or Indian leases, that is 
        subject to inspection under subsection (b) and that is in force 
        at the start of the fiscal year 2021, shall pay a nonrefundable 
        annual inspection fee in an amount that, except as provided in 
        paragraph (2), is established by the Secretary by regulation 
        and is sufficient to recover the full costs incurred by the 
        United States for inspection and enforcement with respect to 
        such leases.
          ``(2) Amount.--Until the effective date of regulations under 
        paragraph (1), the amount of the fee shall be--
                  ``(A) $700 for each lease or unit or communitization 
                agreement with no active or inactive wells, but with 
                surface use, disturbance or reclamation;
                  ``(B) $1,225 for each lease or unit or 
                communitization agreement with 1 to 10 wells, with any 
                combination of active or inactive wells;
                  ``(C) $4,900 for each lease or unit or 
                communitization agreement with 11 to 50 wells, with any 
                combination of active or inactive wells; and
                  ``(D) $9,800 for each lease or unit or 
                communitization agreement with more than 50 wells, with 
                any combination of active or inactive wells.
          ``(3) Due date.--Payment of the fee under this section shall 
        be due, annually, not later than 30 days after the Secretary 
        provides notice of the assessment of the fee.
          ``(4) Penalty.--If the designated operator fails to pay the 
        full amount of the fee as prescribed in this section, the 
        Secretary may, in addition to utilizing any other applicable 
        enforcement authority, assess civil penalties against the 
        operator under section 109 in the same manner as if this 
        section were a mineral leasing law.
          ``(5) Exemption for tribal operators.--An operator that is a 
        Tribe or is controlled by a Tribe is not subject to paragraph 
        (1) with respect to a lease, unit, or communitization agreement 
        that is located entirely on the lands of such Tribe.
          ``(6) Adjustment for inflation.--In the application of 
        paragraph (2), the Secretaries shall at least once every three 
        years, at the beginning of the fiscal year, adjust the dollar 
        amounts in paragraph (2) to account for inflation based on the 
        Consumer Price Index for all urban consumer published by the 
        Department of Labor.''.
  (b) Assessment for Fiscal Year 2022.--The Secretary of the Interior 
shall assess the fee under the amendment made by subsection (a) for 
fiscal year 2022, and provide notice of such assessment to each 
designated operator who is liable for such fee, by not later than 60 
days after the date of enactment of this Act.

SEC. 5. BONDING EQUITY FOR NATIONAL WILDLIFE REFUGE SYSTEM LANDS.

  Section 4 of the National Wildlife Refuge System Administration Act 
of 1966 (16 U.S.C. 668dd et seq.) is amended--
          (1) by redesignating subsections (h) through (o), as 
        subsections (i) through (p), respectively; and
          (2) by inserting after subsection (g) the following new 
        subsection:
  ``(h) Reclamation, Damages, and Financial Assurance for Oil and Gas 
Operations on Refuge Lands.--
          ``(1) The Secretary, acting through the Director, shall 
        obtain adequate financial assurances from non-Federal entities 
        to repair potential damages to refuge resources, prior to the 
        commencement of surface-disturbing activities as part of the 
        development of non-Federal minerals below refuge surface 
        estate, including--
                  ``(A) to ensure the complete and timely reclamation 
                of the land, and the restoration of any lands or 
                surface waters adversely affected by operations after 
                the abandonment or cessation of oil and gas operations 
                on the land; and
                  ``(B) to meet potential response and assessment costs 
                and other damages to refuge resources as a result of 
                oil and gas operations.
          ``(2) Financial assurances forfeited by a non-Federal entity 
        under this subsection shall be retained and available to the 
        Secretary, without further appropriation, and shall remain 
        available until expended, for--
                  ``(A) plugging and abandoning wells;
                  ``(B) removing structures, equipment, materials, and 
                other infrastructure;
                  ``(C) response costs and damage assessments 
                conducted;
                  ``(D) restoration, replacement, or acquisition of the 
                equivalent refuge resources; and
                  ``(E) monitoring and studying affected refuge 
                resources.''.

                          Purpose of the Bill

    The purpose of H.R. 1505 is to amend the Mineral Leasing 
Act to make certain adjustments to the regulation of surface-
disturbing activities and to protect taxpayers from unduly 
bearing the reclamation costs of oil and gas development.

                  Background and Need for Legislation

    The Mineral Leasing Act (MLA) of 1920 authorizes the 
Department of the Interior (DOI) to lease the rights to develop 
oil and gas resources on public land.\1\ The Bureau of Land 
Management (BLM) within DOI is the federal agency responsible 
for managing oil and gas resources on U.S. public land. The BLM 
administers more than 247 million acres of land and 700 million 
acres of subsurface mineral estate. The U.S. Forest Service 
(USFS) cooperates with BLM in coordinating access to federal 
oil and gas resources on approximately one-third of the over 
150 national forests and grasslands. Most onshore public oil 
and gas resources are located and developed in the western 
United States, particularly California, Colorado, New Mexico, 
Utah, and Wyoming.
---------------------------------------------------------------------------
    \1\30 U.S.C. 181, et seq.
---------------------------------------------------------------------------
    Companies that extract oil, gas, and coal from public lands 
are required to post a bond to cover the reclamation costs in 
the event the company does not perform reclamation itself. BLM 
regulations dating from 1960 set minimum oil and gas bond 
amounts at $10,000 for all of an operator's wells on an 
individual lease, $25,000 for all of an operator's wells in a 
state, and $150,000 for all of an operator's wells 
nationwide.\2\
---------------------------------------------------------------------------
    \2\https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/
leasing/bonding
---------------------------------------------------------------------------
    In September 2019, GAO issued a report that found the bonds 
held by BLM are insufficient to clean up oil and gas wells that 
have already been ``orphaned,'' in part because they do not 
reflect full reclamation costs.\3\ According to GAO, 82 percent 
of bonds held by BLM remain at their regulatory minimum values, 
and 84 percent would not fully cover reclamation costs even 
under a low-cost scenario. GAO recommended BLM substantially 
increase minimum bond amounts.
---------------------------------------------------------------------------
    \3\``Oil and Gas: Bureau of Land Management Should Address Risks 
from Insufficient Bonds to Reclaim Wells.'' U.S. Government 
Accountability Office. September 2019.
---------------------------------------------------------------------------
    H.R. 1505 would reform BLM oil and gas bonding requirements 
on public lands. The legislation eliminates the ability for a 
company to provide a single bond to cover all leases or 
operations nationwide and increases minimum bonding amounts to 
$150,000 and $500,000 for all of an operator's wells on an 
individual lease and in a state, respectively. H.R. 1505 
requires companies to pay annual user fees to cover the cost of 
the BLM oil and gas inspection program, similar to fees 
companies pay for offshore oil and gas inspections. Fees 
increase as the number of wells on a lease increases. The 
legislation also requires: bond levels to be maintained or 
increased when leases are transferred to new operators, the 
Secretary of the Interior to increase financial assurance 
levels if the Secretary finds it's necessary to clean up lands 
or surface waters, increases in bond amounts over three years, 
and the establishment of an ``orphaned well fee'' of no less 
than 10 cents per barrel of oil, with revenue going to 
reclaiming orphaned wells on federal land.

                            Committee Action

    H.R. 1505 was introduced on March 2, 2021, by 
Representative Alan Lowenthal (D-CA). The bill was referred 
solely to the Committee on Natural Resources, and within the 
Committee to the Subcommittee on Energy and Mineral Resources. 
On March 9, 2021, the Subcommittee held a hearing on the bill. 
On May 5, 2021, the Natural Resources Committee met to consider 
the bill. The Subcommittee was discharged by unanimous consent. 
Rep. Lowenthal offered an amendment in the nature of a 
substitute. By unanimous consent, Ranking Member Bruce 
Westerman (R-AR) offered an amendment on behalf of Rep. Garret 
Graves (R-LA) designated Graves #81 to the amendment in the 
nature of a substitute. The amendment was not agreed to by a 
voice vote. By unanimous consent, Rep. Paul Gosar (R-AZ) 
offered an amendment on behalf of Rep. Graves designated Graves 
#83 to the amendment in the nature of a substitute. The 
amendment was not agreed to by a roll call vote of 14 yeas and 
23 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    The amendment in the nature of a substitute offered by Rep. 
Lowenthal was agreed to by voice vote. The bill, as amended, 
was adopted and ordered favorably reported to the House of 
Representatives by a roll call vote of 23 yeas and 15 nays, as 
follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                Hearings

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Energy and Mineral Resources 
held on March 9, 2021.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides the short title of this bill, the 
``Bonding Reform and Taxpayer Protection Act''.

Section 2. Surface disturbance and reclamation

    Section 2 amends the Mineral Leasing Act Section 17(g) to 
update bonding requirements for oil and gas development on 
federal land. In the new section ``(g) Bonding requirements'':
    Subsection (1) defines key terms, such as ``interim 
reclamation plan,'' ``final reclamation plan,'' and 
``operator.'' Subsection (2) outlines that the Secretary of the 
Interior will regulate all surface-disturbing activities 
conducted on any oil and gas lease on federal land and will 
determine reclamation as required to conserve surface 
resources.
    Subsection (3) describes the requirements for reclamation 
plans. No oil and gas lease permit can be approved without an 
interim reclamation plan and a final reclamation plan covering 
all proposed surface-disturbing activities within a lease. The 
Secretary will review each interim reclamation plan at regular 
intervals--plans must be amended as warranted.
    Subsection (4) describes updated bonding regulations--
within 180 days of enactment of this Act, the Secretary must 
issue new regulations that require an adequate bond, surety, or 
other financial assurance arrangements before any surface-
disturbing activities begin. To determine if a bond amount is 
adequate under the new regulations, the Secretary must consider 
if the bond is sufficient for the complete and timely 
reclamation of the lease tract, the restoration of lands and 
surface waters, and the plugging and reclamation costs of each 
idled well controlled by the same operator or, $150,000 for an 
individual lease, or $500,000 for all leases in a State. At 
least once every three years, the Secretary of the Interior, in 
consultation with the Secretary of Agriculture, should adjust 
the bond amounts to account for inflation.
    The Secretary cannot approve a lease for a person or 
company if they have failed or have refused to comply with any 
prior lease's reclamation requirements and other standards 
established in this section. The Secretary must give adequate 
notification and allow the company to comply with the 
regulations. Once the company complies, the lease can be 
issued. Any time a lease is transferred to new ownership, the 
Secretary will review the bond for adequacy.
    Any time the Secretary determines that a bond required no 
longer meets the requirements, the Secretary can increase the 
bond amount required. When the Secretary increases bond amount 
requirements, the updated amount must be phased in over three 
years:
           25 percent of the increase within one year,
           75 percent of the increase within two years, 
        and
           100 percent of the increase within three 
        years.
    Within 180 days of enactment of this Act, the Secretary of 
the Interior and the Secretary of Agriculture are required to 
establish uniform standards for all interim and final 
reclamation plans. Such plans should aim to restore affected 
ecosystems to a condition approximating or equal to the 
condition that existed before the oil and gas activities. The 
Secretary concerned cannot release any bonds until the 
standards for final reclamation have been met, and inspection 
fees are paid. This subsection also establishes an orphaned 
well fee of no less than $0.10 per barrel of oil and gas 
produced on federal land for plugging and reclaiming orphaned 
wells.

Section 3. Changes to the BLM Permit Processing Improvement Fund

    Section 3 amends the Mineral Leasing Act by changing the 
``BLM Permit Processing Improvement Fund'' to the ``BLM 
Administration and Accountability Fund.'' This section allows 
for further uses of the fund, including the coordination and 
review process for oil and gas financial assurances and bond 
release, the inventory of orphaned wells, and coordination and 
processing related to environmental and cultural resources 
related to oil and gas development.

Section 4. Inspection fees

    Section 4 outlines new inspection fees for oil and gas 
operations on federal and tribal land. This section amends the 
Federal Oil and Gas Royalty Management Act by adding inspection 
fees to the end of Sec. 108. Starting in Fiscal Year 2021, 
operators must pay inspection fees--the amount of which will be 
determined by regulation but should be sufficient to recover 
the total costs incurred by the U.S. for inspection and 
enforcement of each lease. Until the regulations are enacted, 
the inspection fees will be:
           $700 for each lease with no wells but with 
        surface disturbance,
           $1,225 for each lease with 1 to 10 wells 
        (active or inactive),
           $4900 for each lease with 11 to 50 wells 
        (active or inactive), and
           $9,800 for each lease with more than 50 
        wells (active or inactive).
    Payment of these fees is due annually, not later than 30 
days after the Secretary provides notice of the fees. If 
operators fail to pay the total amount, the Secretary may 
assess civil penalties against the operator. At least once 
every three years, the Secretaries will adjust inspection fees 
for inflation.

Section 5. Bonding Equity for National Wildlife Refuge System Lands

    By amending the National Wildlife Refuge System 
Administration Act of 1996, this section ensures that the 
Secretary can require adequate financial assurances for oil and 
gas operations on National Wildlife Refuge System Lands.
    Financial assurances forfeited by a non-federal entity will 
be retained and available to the Secretary for plugging 
abandoned wells, removing structures and other infrastructure, 
damage assessments, restoration, and monitoring affected refuge 
resources.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance with House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, as well as clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the Committee has received the 
following estimate for the bill from the Director of the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 27, 2021.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1505, the Bonding 
Reform and Taxpayer Protection Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Janani 
Shankaran.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    The bill would
           Establish onshore well inspection fees and 
        civil penalties for failure to pay those fees
           Levy new fees for oil and gas produced on 
        onshore federal land
           Authorize the U.S. Fish and Wildlife Service 
        to spend, without further appropriation, bonds 
        forfeited from mineral activities on National Wildlife 
        Refuge System land
           Increase minimum bond amounts required under 
        the Mineral Leasing Act
    Estimated budgetary effects would mainly stem from
           Collection of the new fees
           Spending of forfeited bonds
    Areas of significant uncertainty include
           Estimating the amount of fees that would be 
        collected under the bill
    Bill summary: H.R. 1505 would establish fees for well 
inspections on onshore federal and tribal land, along with 
civil penalties for failure to pay those fees. The bill also 
would levy new fees for oil and gas produced on onshore federal 
land. Under H.R. 1505, the U.S. Fish and Wildlife Service 
(USFWS) would be permitted to retain and spend, without further 
appropriation, bonds forfeited from mineral activities on 
National Wildlife Refuge System (NWRS) land. Finally, the bill 
would increase the minimum bond amounts required under the 
Mineral Leasing Act.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 1505 is shown in Table 1. The costs of the legislation 
fall primarily within budget function 300 (natural resources 
and environment).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1505
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                            ------------------------------------------------------------------------------------------------------------
                                              2021   2022    2023    2024    2025    2026    2027    2028    2029    2030    2031   2021-2026  2021-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Increases or Decreases (-) in Direct Spending
 
Inspection Fees
    Estimated Budget Authority.............      0     -55     -55     -55     -60     -60     -60     -60     -65     -65     -65      -285       -600
    Estimated Outlays......................      0     -55     -55     -55     -60     -60     -60     -60     -65     -65     -65      -285       -600
Orphaned-Well Fees
    Estimated Budget Authority.............      0       0       *       *      -1      -1      -2      -3      -4      -5      -8        -3        -25
    Estimated Outlays......................      0       0       *       *      -1      -1      -2      -3      -4      -5      -8        -3        -25
USFWS Spending of Forfeited Bonds
    Estimated Budget Authority.............      0       0       0       0       0       *       *       1       1       1       1         *          5
    Estimated Outlays......................      0       0       0       0       0       *       *       1       1       1       1         *          5
Total Changes
    Estimated Budget Authority.............      0     -55     -55     -55     -61     -61     -62     -62     -68     -69     -72      -287       -620
    Estimated Outlays......................      0     -55     -55     -55     -61     -61     -62     -62     -68     -69     -72      -287       -620
 
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization....................      0       1       1       1       1       1    n.e.    n.e.    n.e.    n.e.    n.e.         5       n.e.
Estimated Outlays..........................      0       1       1       1       1       1    n.e.    n.e.    n.e.    n.e.    n.e.         5       n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding; n.e. = not estimated; * = between -$500,000 and $500,000.
CBO estimates that enacting H.R. 1505 would increase revenues by an insignificant amount over the 2022-2031 period.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted early in fiscal year 2022 and the 
fees under the bill would take effect that year.
    Direct spending: CBO estimates that enacting H.R. 1505 
would reduce net direct spending by $620 million over the 2022-
2031 period.
    Well Inspection Fees: H.R. 1505 would direct the Department 
of the Interior (DOI) to issue regulations establishing 
inspection fees for all wells on onshore federal and tribal 
land. Absent regulations, the bill would impose the following 
inspection fees:
           $700 for each lease or agreement with 
        surface disturbance only,
           $1,225 for each lease or agreement with 1 to 
        10 wells,
           $4,900 for each lease or agreement with 11 
        to 50 wells, and
           $9,800 for each lease or agreement with more 
        than 50 wells.
    Under the bill, those fees would only be applied to 
currently held leases and agreements and would be adjusted 
every three years to account for inflation. Tribal operators of 
leases on tribal land would be exempt. Any collections would be 
classified in the budget as offsetting receipts, or reductions 
in direct spending.
    Using data from the Bureau of Land Management (BLM), CBO 
estimates that collections would average between $55 million 
and $70 million annually and total $600 million over the 2022-
2031 period, decreasing direct spending by the same amount.
    Orphaned-Well Fees: H.R. 1505 would impose a fee of 10 
cents per barrel of oil produced from onshore federal land and 
an equivalent fee on natural gas production. CBO expects DOI 
would levy the fee only on prospective leases. Collections 
would be classified in the budget as offsetting receipts, or 
reductions in direct spending.
    Using CBO's July 2021 baseline budget projections and 
information about trends in recent years, CBO estimates that 
annual onshore federal production under new leases and 
agreements will average 10 million barrels of oil and 80 
billion cubic feet of natural gas over the 2022-2031 period. At 
a rate of 10 cents per barrel of oil and 1.72 cents per 
thousand cubic feet of gas, enacting the bill would increase 
receipts, and thus decrease direct spending, by $25 million 
over the 2022-2031 period.
    USFWS Spending of Forfeited Bonds: Under current law, bonds 
forfeited from mineral activities on NWRS land are deposited 
into the general fund of the Treasury; spending of those 
amounts is subject to appropriation. Under the bill, USFWS 
would be permitted to retain and spend forfeited bonds without 
further appropriation. According to the agency, no bonds have 
been forfeited to date; however, CBO expects that bond 
forfeitures will commence within several years as older wells 
cease production. Using information from the agency, we 
estimate that the amount available for USFWS to spend would be 
insignificant in 2026 and 2027 but would increase to $1 million 
annually starting in 2028. CBO estimates that enacting the 
provision would increase direct spending by about $5 million 
over the 2022-2031 period.
    BLM Administration and Accountability Fund: Under current 
law, 50 percent of rents collected from onshore mineral leases 
and 100 percent of fees collected for processing applications 
for permits to drill are deposited into the Permit Processing 
Improvement Fund. Amounts in that fund are available for BLM to 
spend without further appropriation to process onshore oil and 
gas permits. In 2020, the agency spent $69 million from the 
fund. CBO projects that amounts in the fund will be fully spent 
under current law.
    H.R. 1505 would rename the fund the Administration and 
Accountability Fund and would authorize additional uses, 
including inventorying orphaned wells and coordinating 
environmental and cultural reviews. CBO estimates that the bill 
would not affect the amounts available to be spent from the 
Fund and would not significantly affect the rate of that 
spending; thus, enacting the provision would have no 
significant effect on direct spending over the 2022-2031 
period.
    Revenues: The bill also would authorize DOI to assess civil 
penalties for failure to pay inspection fees. CBO estimates 
that any penalties, which would be classified in the budget as 
revenues, would be insignificant over the 2022-2031 period.
    Spending subject to appropriation; CBO estimates that 
implementing H.R. 1505 would cost $5 million over the 2022-2026 
period, assuming appropriation of the estimated amounts.
    Bonds forfeited under the Mineral Leasing Act are recorded 
in the budget as discretionary offsetting collections, and 
their spending is subject to appropriation. H.R. 1505 would 
increase the minimum bond amounts required for leasing on 
onshore federal land. Assuming appropriation actions consistent 
with previous appropriation bills, CBO expects that any 
additional amounts forfeited under H.R. 1505 would be spent 
soon thereafter, resulting in no net change in spending subject 
to appropriation.
    H.R. 1505 would direct DOI and the Department of 
Agriculture to conduct bond adequacy reviews and to issue 
regulations implementing the new minimum bond amounts and well 
inspection fees. CBO also expects that DOI would incur 
additional costs to manage fee collections under the bill. 
Based on the costs of similar tasks, CBO estimates that 
implementing those activities would cost $1 million annually 
over the 2022-2026 period; such spending would be subject to 
the availability of appropriated funds.
    Uncertainty: The estimate of fee collections is uncertain 
and could be higher or lower than CBO estimates. CBO cannot 
forecast with certainty oil and gas prices or the volume of 
onshore production on federal land under prospective leases, 
which would affect the estimate of orphaned-well fees. We also 
cannot predict whether DOI would set well inspection fees at 
rates differing from those under the bill.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 2.

    TABLE 2.--CBO's ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 1505, THE BONDING REFORM AND TAXPAYER PROTECTION ACT OF 2021, AS ORDERED
                                           REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON MAY 5, 2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                            ------------------------------------------------------------------------------------------------------------
                                              2021   2022    2023    2024    2025    2026    2027    2028    2029    2030    2031   2021-2026  2021-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Decrease in the Deficit
Pay-As-You-Go Effect.......................      0     -55     -55     -55     -61     -61     -62     -62     -68     -69     -72      -287       -620
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: None.
    Mandates: None.
    Estimate prepared by: Federal Costs and Revenues: Janani 
Shankaran; Mandates: Lilia Ledezma.
    Estimate reviewed by: Kathleen FitzGerald, Chief, Public 
and Private Mandates Unit; Susan Willie, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Director of Budget Analysis; Theresa Gullo, Director of 
Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to amend the Mineral Leasing Act to 
make certain adjustments to the regulation of surface-
disturbing activities and to protect taxpayers from unduly 
bearing the reclamation costs of oil and gas development.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    According to CBO, this bill contains no unfunded mandates 
as defined by the Unfunded Mandates Reform Act.

                           Existing Programs

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                          MINERAL LEASING ACT



           *       *       *       *       *       *       *
  Sec. 17. (a) All lands subject to disposition under this Act 
which are known or believed to contain oil or gas deposits may 
be leased by the Secretary.
  (b)(1)(A) All lands to be leased which are not subject to 
leasing under paragraphs (2) and (3) of this subsection shall 
be leased as provided in this paragraph to the highest 
responsible qualified bidder by competitive bidding under 
general regulations in units of not more than 2,560 acres, 
except in Alaska, where units shall be not more than 5,760 
acres. Such units shall be as nearly compact as possible. Lease 
sales shall be conducted by oral bidding, except as provided in 
subparagraph (C). Lease sales shall be held for each State 
where eligible lands are available at least quarterly and more 
frequently if the Secretary of the Interior determines such 
sales are necessary. A lease shall be conditioned upon the 
payment of a royalty at a rate of not less than 12.5 percent in 
amount or value of the production removed or sold from the 
lease. The Secretary shall accept the highest bid from a 
responsible qualified bidder which is equal to or greater than 
the national minimum acceptable bid, without evaluation of the 
value of the lands proposed for lease. Leases shall be issued 
within 60 days following payment by the successful bidder of 
the remainder of the bonus bid, if any, and the annual rental 
for the first lease year. All bids for less than the national 
minimum acceptable bid shall be rejected. Lands for which no 
bids are received or for which the highest bid is less than the 
national minimum acceptable bid shall be offered promptly 
within 30 days for leasing under subsection (c) of this section 
and shall remain available for leasing for a period of 2 years 
after the competitive lease sale.
  (B) The national minimum acceptable bid shall be $2 per acre 
for a period of 2 years from the date of enactment of the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987. 
Thereafter, the Secretary, subject to paragraph (2)(B), may 
establish by regulation a higher national minimum acceptable 
bid for all leases based upon a finding that such action is 
necessary: (i) to enhance financial returns to the United 
States; and (ii) to promote more efficient management of oil 
and gas resources on Federal lands. Ninety days before the 
Secretary makes any change in the national minimum acceptable 
bid, the Secretary shall notify the Committee on Natural 
Resources of the United States House of Representatives and the 
Committee on Energy and Natural Resources of the United States 
Senate. The proposal or promulgation of any regulation to 
establish a national minimum acceptable bid shall not be 
considered a major Federal action subject to the requirements 
of section 102(2)(C) of the National Environmental Policy Act 
of 1969.
  (C) In order to diversify and expand the Nation's onshore 
leasing program to ensure the best return to the Federal 
taxpayer, reduce fraud, and secure the leasing process, the 
Secretary may conduct onshore lease sales through Internet-
based bidding methods. Each individual Internet-based lease 
sale shall conclude within 7 days.
  (2)(A)(i) If the lands to be leased are within a special tar 
sand area, they shall be leased to the highest responsible 
qualified bidder by competitive bidding under general 
regulations in units of not more than 5,760 acres, which shall 
be as nearly compact as possible, upon the payment by the 
lessee of such bonus as may be accepted by the Secretary.
  (ii) Royalty shall be 12\1/2\ per centum in amount of value 
of production removed or sold from the lease subject to section 
17(k)(1)(c).
  (iii) The Secretary may lease such additional lands in 
special tar sand areas as may be required in support of any 
operations necessary for the recovery of tar sands.
          (iv) No lease issued under this paragraph shall be 
        included in any chargeability limitation associated 
        with oil and gas leases.
  (B) For any area that contains any combination of tar sand 
and oil or gas (or both), the Secretary may issue under this 
Act, separately--
          (i) a lease for exploration for and extraction of tar 
        sand; and
          (ii) a lease for exploration for and development of 
        oil and gas.
  (C) A lease issued for tar sand shall be issued using the 
same bidding process, annual rental, and posting period as a 
lease issued for oil and gas, except that the minimum 
acceptable bid required for a lease issued for tar sand shall 
be $2 per acre.
  (D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a permit 
authorizing prospecting for tar sand must exercise due 
diligence, to promote any resource covered by a combined 
hydrocarbon lease.
  (3)(A) If the United States held a vested future interest in 
a mineral estate that, immediately prior to becoming a vested 
present interest, was subject to a lease under which oil or gas 
was being produced, or had a well capable of producing, in 
paying quantities at an annual average production volume per 
well per day of either not more than 15 barrels per day of oil 
or condensate, or not more than 60,000 cubic feet of gas, the 
holder of the lease may elect to continue the lease as a 
noncompetitive lease under subsection (c)(1).
  (B) An election under this paragraph is effective--
          (i) in the case of an interest which vested after 
        January 1, 1990, and on or before the date of enactment 
        of this paragraph, if the election is made before the 
        date that is 1 year after the date of enactment of this 
        paragraph;
          (ii) in the case of an interest which vests within 1 
        year after the date of enactment of this paragraph, if 
        the election is made before the date that is 2 years 
        after the date of enactment of this paragraph; and
          (iii) in any case other than those described in 
        clause (i) or (ii), if the election is made prior to 
        the interest becoming a vested present interest.
  (C) Notwithstanding the consent requirement referenced in 
section 3 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 352), the Secretary shall issue a noncompetitive lease 
under subsection (c)(1) to a holder who makes an election under 
subparagraph (A) and who is qualified to hold a lease under 
this Act. Such lease shall be subject to all terms and 
conditions under this Act that are applicable to leases issued 
under subsection (c)(1).
  (D) A lease issued pursuant to this paragraph shall continue 
so long as oil or gas continues to be produced in paying 
quantities.
  (E) This paragraph shall apply only to those lands under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following).
  (c)(1) If the lands to be leased are not leased under 
subsection (b)(1) of this section or are not subject to 
competitive leasing under subsection (b)(2) of this section, 
the person first making application for the lease who is 
qualified to hold a lease under this Act shall be entitled to a 
lease of such lands without competitive bidding, upon payment 
of a non-refundable application fee of at least $75. A lease 
under this subsection shall be conditioned upon the payment of 
a royalty at a rate of 12.5 percent in amount or value of the 
production removed or sold from the lease. Leases shall be 
issued within 60 days of the date on which the Secretary 
identifies the first responsible qualified applicant.
  (2)(A) Lands (i) which were posted for sale under subsection 
(b)(1) of this section but for which no bids were received or 
for which the highest bid was less than the national minimum 
acceptable bid and (ii) for which, at the end of the period 
referred to in subsection (b)(1) of this section no lease has 
been issued and no lease application is pending under paragraph 
(1) of this subsection, shall again be available for leasing 
only in accordance with subsection (b)(1) of this section.
  (B) The land in any lease which is issued under paragraph (1) 
of this subsection or under subsection (b)(1) of this section 
which lease terminates, expires, is cancelled or is 
relinquished shall again be available for leasing only in 
accordance with subsection (b)(1) of this section.
  (d) All leases issued under this section, as amended by the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall 
be conditioned upon payment by the lessee of a rental of not 
less than $1.50 per acre per year for the first through fifth 
years of the lease and not less than $2 per acre per year for 
each year thereafter. A minimum royalty in lieu of rental of 
not less than the rental which otherwise would be required for 
that lease year shall be payable at the expiration of each 
lease year beginning on or after a discovery of oil or gas in 
paying quantities on the lands leased.
  (e) Competitive and noncompetitive leases issued under this 
section shall be for a primary term of 10 years: Provided, 
however, That competitive leases issued in special tar sand 
areas shall also be for a primary term of ten years. Each such 
lease shall continue so long after its primary term as oil or 
gas is produced in paying quantities. Any lease issued under 
this section for land on which, or for which under an approved 
cooperative or unit plan of development or operation, actual 
drilling operations were commenced prior to the end of its 
primary term and are being diligently prosecuted at that time 
shall be extended for two years and so long thereafter as oil 
or gas is produced in paying quantities.
  (f) At least 45 days before offering lands for lease under 
this section, and at least 30 days before approving 
applications for permits to drill under the provisions of a 
lease or substantially modifying the terms of any lease issued 
under this section, the Secretary shall provide notice of the 
proposed action. Such notice shall be posted in the appropriate 
local office of the leasing and land management agencies. Such 
notice shall include the terms or modified lease terms and maps 
or a narrative description of the affected lands. Where the 
inclusion of maps in such notice is not practicable, maps of 
the affected lands shall be made available to the public for 
review. Such maps shall show the location of all tracts to be 
leased, and of all leases already issued in the general area. 
The requirements of this subsection are in addition to any 
public notice required by other law.
  [(g) 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. No permit to drill on an oil and gas lease 
issued under this Act may be granted without the analysis and 
approval by the Secretary concerned of a plan of operations 
covering proposed surface-disturbing activities within the 
lease area. The Secretary concerned shall, by rule or 
regulation, establish such standards as may be necessary to 
ensure that an adequate bond, surety, or other financial 
arrangement will be established prior to the commencement of 
surface-disturbing activities on any lease, to ensure the 
complete and timely reclamation of the lease tract, and the 
restoration of any lands or surface waters adversely affected 
by lease operations after the abandonment or cessation of oil 
and gas operations on the lease. The Secretary shall not issue 
a lease or leases or approve the assignment of any lease or 
leases under the terms of this section to any person, 
association, corporation, or any subsidiary, affiliate, or 
person controlled by or under common control with such person, 
association, or corporation, during any period in which, as 
determined by the Secretary of the Interior or Secretary of 
Agriculture, such entity has failed or refused to comply in any 
material respect with the reclamation requirements and other 
standards established under this section for any prior lease to 
which such requirements and standards applied. Prior to making 
such determination with respect to any such entity the 
concerned Secretary shall provide such entity with adequate 
notification and an opportunity to comply with such reclamation 
requirements and other standards and shall consider whether any 
administrative or judicial appeal is pending. Once the entity 
has complied with the reclamation requirement or other standard 
concerned an oil or gas lease may be issued to such entity 
under this Act.]
  (g) Bonding Requirements.--
          (1) Definitions.--In this subsection:
                  (A) Interim reclamation plan.--The term 
                ``Interim Reclamation Plan'' means an ongoing 
                plan specifying reclamation steps to be taken 
                on all disturbed areas covered by any lease 
                issued under this Act that are not needed for 
                active operations.
                  (B) Final reclamation plan.--The term ``Final 
                Reclamation Plan'' means a plan describing all 
                reclamation activity to be conducted for all 
                disturbed areas, including locations, 
                facilities, trenches, rights-of-way, roads, and 
                any other surface disturbance covered by a 
                lease issued under this Act prior to final 
                abandonment.
                  (C) Operator.--The term ``operator'' means, 
                with respect to an oil or gas operation, any 
                entity, including the lessee or operating 
                rights owner, that has stated in writing to a 
                relevant authority that such entity is 
                responsible for any portion of such operation.
                  (D) Secretary concerned.--The term 
                ``Secretary concerned'' means--
                          (i) the Secretary of the Interior for 
                        public lands administered by such 
                        Secretary;
                          (ii) the Secretary of Agriculture for 
                        forest service lands.
          (2) In general.--The Secretary concerned 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.
          (3) Reclamation plans required.--
                  (A) Analysis and approval required.--No 
                permit to drill on an oil and gas lease issued 
                under this Act may be granted without the 
                analysis and approval by the Secretary 
                concerned of both an interim reclamation plan 
                and a final reclamation plan covering proposed 
                surface-disturbing activities within the lease 
                area.
                  (B) Plans of operations.--All Federal plans 
                or permits submitted pursuant to this Act with 
                the potential to create surface disturbance 
                shall include an Interim and Final Reclamation 
                Plan.
                  (C) Secretarial review.--The Secretary 
                concerned shall review each Interim Reclamation 
                Plan at regular intervals and shall require 
                such plans to be amended as warranted, subject 
                to the approval of such Secretary.
          (4) Bonding.--
                  (A) In general.--
                          (i) Regulation.--Not later than 180 
                        days after the date of enactment of the 
                        Bonding Reform and Taxpayer Protection 
                        Act of 2021, the Secretary concerned 
                        shall, by regulation, require that an 
                        adequate bond, surety, or other 
                        financial arrangement be established 
                        prior to the commencement of surface-
                        disturbing activities on any lease 
                        under this Act.
                          (ii) Amount of bond.--In determining 
                        the adequacy of a bond, surety, or 
                        other financial instrument required by 
                        regulation under clause (i), the 
                        Secretary shall find that such 
                        arrangement is adequate if it is not 
                        less than the greater of--
                                  (I) the amount necessary 
                                for--
                                          (aa) the complete and 
                                        timely reclamation of 
                                        the lease tract;
                                          (bb) the restoration 
                                        of any lands or surface 
                                        waters adversely 
                                        affected by lease 
                                        operations after the 
                                        abandonment or 
                                        cessation of oil and 
                                        gas operations on the 
                                        lease; or
                                          (cc) in the case of 
                                        an idled well, the 
                                        total plugging and 
                                        reclamation costs for 
                                        each idled well 
                                        controlled by the same 
                                        operator;
                                  (II) $150,000 in the case of 
                                an arrangement for an 
                                individual surface-disturbing 
                                activity of each entity on an 
                                oil or gas lease; or
                                  (III) $500,000 in the case of 
                                an arrangement for all surface-
                                disturbing activities of each 
                                entity in a State.
                          (iii) Adjustment for inflation.--
                                  (I) In general.--In the 
                                application of clause (ii), the 
                                Secretaries concerned shall 
                                jointly at least once every 
                                three years, at the beginning 
                                of the fiscal year, adjust the 
                                dollar amounts in clause (ii) 
                                to account for inflation based 
                                on the Consumer Price Index for 
                                all urban consumer published by 
                                the Department of Labor.
                                  (II) Rounding.--If any amount 
                                as adjusted under subclause (I) 
                                is not a multiple of $1,000, 
                                such amount shall be rounded to 
                                the next higher multiple of 
                                $1000.
                  (B) Prohibition.--The Secretary concerned 
                shall not issue or approve the assignment of 
                any lease under the terms of this section to 
                any person, association, corporation, or any 
                subsidiary, affiliate, or person controlled by 
                or under common control with such person, 
                association, or corporation, during any period 
                in which, as determined by the relevant 
                Secretary, such entity has failed or refused to 
                comply in any material respect with the 
                reclamation requirements and other standards 
                established under this section for any prior 
                lease to which such requirements and standards 
                applied.
                  (C) Notice and opportunity for compliance.--
                Prior to making a determination not to issue or 
                approve the assignment of a lease under 
                subparagraph (B) with respect to an entity the 
                Secretary concerned shall provide such entity 
                with adequate notification and an opportunity 
                to comply with such reclamation requirements 
                and other standards and shall consider whether 
                any administrative or judicial appeal is 
                pending. Once the entity has complied with the 
                reclamation requirement or other standard 
                concerned each oil or gas lease may be issued 
                to such entity under this Act.
                  (D) Review upon transfer.--The Secretary 
                concerned shall review the adequacy of a bond, 
                surety, or other financial instrument anytime a 
                lease or well under this Act is transferred. 
                The Secretary shall find such bond, surety, or 
                other financial instrument adequate if such 
                arrangement--
                          (i) meets the requirement described 
                        in subparagraph (A)(ii); and
                          (ii) is not for a lesser amount than 
                        the amount maintained by the current 
                        operator.
                  (E) Requiring higher bond amounts.--The 
                Secretary concerned shall, at any time that 
                such Secretary determines that a bond, surety, 
                or other financial instrument required by a 
                regulation issued pursuant to subparagraph (A) 
                no longer meets the requirements of clause (ii) 
                of such subparagraph, increase the required 
                amount of such financial arrangement to the 
                level required by subparagraph (A).
                  (F) Phasing-in bond increases.--With respect 
                to a bond increased under subparagraph (E), the 
                Secretary concerned shall require the operator 
                to meet the following deadlines in posting the 
                amount of the increase that results from the 
                operation of such paragraph:
                          (i) 25 percent of the increase by not 
                        later than 1 year after the date on 
                        which the determination was made under 
                        subparagraph (D).
                          (ii) 75 percent of the increase by 
                        not later than 2 years after such date.
                          (iii) 100 percent of the increase by 
                        not later than 3 years after such date.
          (5) Standards.--Not later than 180 days after the 
        date of enactment of the Bonding Reform and Taxpayer 
        Protection Act of 2021, the Secretary of the Interior 
        and the Secretary of Agriculture shall, by regulation, 
        establish uniform standards for all Interim and Final 
        Reclamation Plans. The goal of such plans shall be the 
        restoration of the affected ecosystem to a condition 
        approximating or equal to that which existed prior to 
        the surface disturbance. Such standards shall include 
        restoration of natural vegetation and hydrology, 
        habitat restoration, salvage, storage and reuse of 
        topsoils, erosion control, control of invasive species 
        and noxious weeds and natural contouring.
          (6) Monitoring.--The Secretary concerned shall not 
        approve final abandonment and shall not release any 
        bond required by this Act until the standards and 
        requirement for final reclamation established pursuant 
        to this Act have been met.
          (7) Financial assurances.--The Secretary concerned 
        shall not release the financial assurance established 
        for a lease until the operator has paid the inspection 
        fees required under section 4 for the lease covered by 
        the financial assurance instrument.
          (8) Bond adequacy review.--The Secretary shall 
        conduct bond adequacy reviews as required under 
        paragraph (4)(D) in accordance with Bureau of Land 
        Management Instruction Memorandum No. 2019-014, dated 
        November 15, 2018.
          (9) Orphaned well fee.--The Secretary of the Interior 
        shall collect a per barrel of oil equivalent fee of not 
        less than $0.10 on oil and gas produced from Federal 
        lands for the use of plugging and reclamation of 
        orphaned wells.
  (h) The Secretary of the Interior may not issue any lease on 
National Forest System Lands reserved from the public domain 
over the objection of the Secretary of Agriculture.
  (i) No lease issued under this section which is subject to 
termination because of cessation of production shall be 
terminated for this cause so long as reworking or drilling 
operations which were commenced on the land prior to or within 
sixty days after cessation of production are conducted thereon 
with reasonable diligence, or so long as oil or gas is produced 
in paying quantities as a result of such operations. No lease 
issued under this section shall expire because operations or 
production is suspended under any order, or with the consent, 
of the Secretary. No lease issued under this section covering 
lands on which there is a well capable of producing oil or gas 
in paying quantities shall expire because the lessee fails to 
produce the same unless the lessee is allowed a reasonable 
time, which shall be not less than sixty days after notice by 
registered or certified mail, within which to place such well 
in producing status or unless, after such status is 
established, production is discontinued on the leased premises 
without permission granted by the Secretary under the 
provisions of this Act.
  (j) Whenever it appears to the Secretary that lands owned by 
the United States are being drained of oil or gas by wells 
drilled on adjacent lands, he may negotiate agreements whereby 
the United States, or the United States and its lessees, shall 
be compensated for such drainage. Such agreements shall be made 
with the consent of the lessees, if any, affected thereby. If 
such agreement is entered into, the primary term of any lease 
for which compensatory royalty is being paid, or any extension 
of such primary term, shall be extended for the period during 
which such compensatory royalty is paid and for a period of one 
year from discontinuance of such payment and so long thereafter 
as oil or gas is produced in paying quantities.
  (k) If, during the primary term or any extended term of any 
lease issued under this section, a verified statement is filed 
by any mining claimant pursuant to subsection (c) of section 7 
of the Multiple Mineral Development Act of August 13, 1954 (68 
Stat. 708), as amended (30 U.S.C. 527), whether such filing 
occur prior to enactment of the Mineral Leasing Act Revision of 
1960 or thereafter, asserting the existence of a conflicting 
unpatented mining claim or claims upon which diligent work is 
being prosecuted as to any lands covered by the lease, the 
running of time under such lease shall be suspended as to the 
lands involved from the first day of the month following the 
filing of such verified statement until a final decision is 
rendered in the matter.
  (l) The Secretary of the Interior shall, upon timely 
application therefor, issue a new lease in exchange for any 
lease issued for a term of twenty years, or any renewal 
thereof, or any lease issued prior to August 8, 1946, in 
exchange for a twenty-year lease, such new lease to be for a 
primary term of five years and so long thereafter as oil or gas 
is produced in paying quantities and at a royalty rate of not 
less than 12\1/2\ per centum in amount of value of the 
production removed or sold from such leases, except that the 
royalty rate shall be 12\1/2\ per centum in amount or value of 
the production removed or sold from said leases as to (1) such 
leases, or such parts of the lands subject thereto and the 
deposits underlying the same, as are not believed to be within 
the productive limits of any producing oil or gas deposit, as 
such productive limits are found by the Secretary to have 
existed on August 8, 1946; and (2) any production on a lease 
from an oil or gas deposit which was discovered after May 27, 
1941, by a well or wells drilled within the boundaries of the 
lease, and which is determined by the Secretary to be a new 
deposit; and (3) any production on or allocated to a lease 
pursuant to an approved cooperative or unit plan of development 
or operation from an oil or gas deposit which was discovered 
after May 27, 1941, on land committed to such plan, and which 
is determined by the Secretary to be a new deposit, where such 
lease, or a lease for which it is exchanged, was included in 
such plan at the time of discovery or was included in a duly 
executed and filed application for the approval of such plan at 
the time of discovery.
  (m) For the purpose of more properly conserving the natural 
resources of any oil or gas pool, field, or like area, or any 
part thereof (whether or not any part of said oil or gas pool, 
field, or like area, is then subject to any cooperative or unit 
plan of development or operation), lessees thereof and their 
representatives may unite with each other, or jointly or 
separately with others, in collective adopting and operating 
under a cooperative or unit plan of development or operation of 
such pool, field, or like area, or any part thereof, whenever 
determined and certified by the Secretary of the Interior to be 
necessary or advisable in the public interest. The Secretary is 
thereunto authorized, in his discretion, with the consent of 
the holders of leases involved, to establish, alter, change, or 
revoke drilling, producing, rental, minimum royalty, and 
royalty requirements of such leases and to make such 
regulations with reference to such leases, with like consent on 
the part of the lessees, in connection with the institution and 
operation of any such cooperative or unit plan as he may deem 
necessary or proper to secure the proper protection of the 
public interest. The Secretary may provide that oil and gas 
leases hereafter issued under this Act shall contain a 
provision requiring the lessee to operate under such a 
reasonable cooperative or unit plan, and he may prescribe such 
a plan under which such lessee shall operate, which shall 
adequately protect the rights of all parties in interest, 
including the United States.
  Any plan authorized by the preceding paragraph which includes 
lands owned by the United States may, in the discretion of the 
Secretary, contain a provision whereby authority is vested in 
the Secretary of the Interior, or any such person, committee, 
or State or Federal officer or agency as may be designated in 
the plan, to alter or modify from time to time the rate of 
prospecting and development and the quantity and rate of 
production under such plan. All leases operated under any such 
plan approved or prescribed by the Secretary shall be excepted 
in determining holdings or control under the provisions of any 
section of this Act.
  When separate tracts cannot be independently developed and 
operated in conformity with an established well-spacing or 
development program, any lease, or a portion thereof, may be 
pooled with other lands, whether or not owned by the United 
States, under a communitization or drilling agreement providing 
for an apportionment of production or royalties among the 
separate tracts of land comprising the drilling or spacing unit 
when determined by the Secretary of the Interior to be in the 
public interest, and operations or production pursuant to such 
an agreement shall be deemed to be operations or production as 
to each such lease committed thereto.
  Any lease issued for a term of twenty years, or any renewal 
thereof, or any portion of such lease that has become the 
subject of a cooperative or unit plan of development or 
operation of a pool, field, or like area, which plan has the 
approval of the Secretary of the Interior, shall continue in 
force until the termination of such plan. Any other lease 
issued under any section of this Act which has heretofore or 
may hereafter be committed to any such plan that contains a 
general provision for allocation of oil or gas shall continue 
in force and effect as to the land committed so long as the 
lease remains subject to the plan: Provided, That production is 
had in paying quantities under the plan prior to the expiration 
date of the term of such lease. Any lease heretofore or 
hereafter committed to any such plan embracing lands that are 
in part within and in part outside of the area covered by any 
such plan shall be segregated into separate leases as to the 
lands committed and the lands not committed as of the effective 
date of unitization: Provided, however, That any such lease as 
to the nonunitized portion shall continue in force and effect 
for the term thereof but for not less than two years from the 
date of such segregation and so long thereafter as oil or gas 
is produced in paying quantities. The minimum royalty or 
discovery rental under any lease that has become subject to any 
cooperative or unit plan of development or operation, or other 
plan that contains a general provision for allocation of oil or 
gas, shall be payable only with respect to the lands subject to 
such lease to which oil or gas shall be allocated under such 
plan. Any lease which shall be eliminated from any such 
approved or prescribed plan, or from any communitization or 
drilling agreement authorized by this section, and any lease 
which shall be in effect at the termination of any such 
approved or prescribed plan, or at the termination of any such 
communitization or drilling agreement, unless relinquished, 
shall continue in effect for the original term thereof, but for 
not less than two years, and so long thereafter as oil or gas 
is produced in paying quantities.
  The Secretary of the Interior is hereby authorized, on such 
conditions as he may prescribe, to approve operating, drilling, 
or development contracts made by one or more lessees of oil or 
gas leases, with one or more persons, associations, or 
corporations whenever, in his discretion, the conservation of 
natural products or the public convenience or necessity may 
require it or the interests of the United States may be best 
subserved thereby. All leases operated under such approved 
operating, drilling, or development contracts, and interests 
thereunder, shall be excepted in determining holdings or 
control under the provisions of this Act.
  The Secretary of the Interior, to avoid waste or to promote 
conservation of natural resources, may authorize the subsurface 
storage of oil or gas, whether or not produced from federally 
owned lands, in lands leased or subject to lease under this 
Act. Such authorization may provide for the payment of a 
storage fee or rental on such stored oil or gas or, in lieu of 
such fee or rental, for a royalty other than that prescribed in 
the lease when such stored oil or gas is produced in 
conjunction with oil or gas not previously produced. Any lease 
on which storage is so authorized shall be extended at least 
for the period of storage and so long thereafter as oil or gas 
not previously produced is produced in paying quantities.
  (n)(1)(A) The owner of (1) an oil and gas lease issued prior 
to the date of enactment of the Combined Hydrocarbon Leasing 
Act of 1981 or (2) a valid claim to any hydrocarbon resources 
leasable under this section based on a mineral location made 
prior to January 21, 1926, and located within a special tar 
sand area shall be entitled to convert such lease or claim to a 
combined hydrocarbon lease for a primary term of ten years upon 
the filing of an application within two years from the date of 
enactment of that Act containing an acceptable plan of 
operations which assures reasonable protection of the 
environment and diligent development of those resources 
requiring enhanced recovery methods of development or mining. 
For purposes of conversion, no claim shall be deemed invalid 
solely because it was located as a placer location rather than 
a lode location or vice versa, notwithstanding any previous 
adjudication on that issue.
  (B) The Secretary shall issue final regulations to implement 
this section within six months of the effective date of this 
Act. If any oil and gas lease eligible for conversion under 
this section would otherwise expire after the date of this Act 
and before six months following the issuance of implementing 
regulations, the lessee may preserve his conversion right under 
such lease for a period ending six months after the issuance of 
implementing regulations by filing with the Secretary, before 
the expiration of the lease, a notice of intent to file an 
application for conversion. Upon submission of a complete plan 
of operations in substantial compliance with the regulations 
promulgated by the Secretary for the filing of such plans, the 
Secretary shall suspend the running of the term of any oil and 
gas lease proposed for conversion until the plan is finally 
approved or disapproved. The Secretary shall act upon a 
proposed plan of operations within fifteen months of its 
submittal.
  (C) When an existing oil and gas lease is converted to a 
combined hydrocarbon lease, the royalty shall be that provided 
for in the original oil and gas lease and for a converted 
mining claim, 12\1/2\ per centum in amount or value of 
production removed or sold from the lease.
  (2) Except as provided in this section, nothing in the 
Combined Hydrocarbon Leasing Act of 1981 shall be construed to 
diminish or increase the rights of any lessee under any oil and 
gas lease issued prior to the enactment of such Act.
  (o) Certain Outstanding Oil and Gas.--(1) Prior to the 
commencement of surface-disturbing activities relating to the 
development of oil and gas deposits on lands described under 
paragraph (5), the Secretary of Agriculture shall require, 
pursuant to regulations promulgated by the Secretary, that such 
activities be subject to terms and conditions as provided under 
paragraph (2).
  (2) The terms and conditions referred to in paragraph (1) 
shall require that reasonable advance notice be furnished to 
the Secretary of Agriculture at least 60 days prior to the 
commencement of surface disturbing activities.
  (3) Advance notice under paragraph (2) shall include each of 
the following items of information:
          (A) A designated field representative.
          (B) A map showing the location and dimensions of all 
        improvements, including but not limited to, well sites 
        and road and pipeline accesses.
          (C) A plan of operations, of an interim character if 
        necessary, setting forth a schedule for construction 
        and drilling.
          (D) A plan of erosion and sedimentation control.
          (E) Proof of ownership of mineral title.
Nothing in this subsection shall be construed to affect any 
authority of the State in which the lands concerned are located 
to impose any requirements with respect to such oil and gas 
operations.
  (4) The person proposing to develop oil and gas deposits on 
lands described under paragraph (5) shall either--
          (A) permit the Secretary to market merchantable 
        timber owned by the United States on lands subject to 
        such activities; or
          (B) arrange to purchase merchantable timber on lands 
        subject to such surface disturbing activities from the 
        Secretary of Agriculture, or otherwise arrange for the 
        disposition of such merchantable timber, upon such 
        terms and upon such advance notice of the items 
        referred to in subparagraphs (A) through (E) of 
        paragraph (3) as the Secretary may accept.
  (5)(A) The lands referred to in this subsection are those 
lands referenced in subparagraph (B) which are under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following), but does not 
have an interest in oil and gas deposits that may be present 
under such lands. This subsection does not apply to any such 
lands where, under the provisions of its acquisition of an 
interest in the lands, the United States is to acquire any oil 
and gas deposits that may be present under such lands in the 
future but such interest has not yet vested with the United 
States.
  (B) This subsection shall only apply in the Allegheny 
National Forest.
  (p) Deadlines for Consideration of Applications for 
Permits.--
          (1) In general.--Not later than 10 days after the 
        date on which the Secretary receives an application for 
        any permit to drill, the Secretary shall--
                  (A) notify the applicant that the application 
                is complete; or
                  (B) notify the applicant that information is 
                missing and specify any information that is 
                required to be submitted for the application to 
                be complete.
          (2) Issuance or deferral.--Not later than 30 days 
        after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                  (A) issue the permit, if the requirements 
                under the National Environmental Policy Act of 
                1969 and other applicable law have been 
                completed within such timeframe; or
                  (B) defer the decision on the permit and 
                provide to the applicant a notice--
                          (i) that specifies any steps that the 
                        applicant could take for the permit to 
                        be issued; and
                          (ii) a list of actions that need to 
                        be taken by the agency to complete 
                        compliance with applicable law together 
                        with timelines and deadlines for 
                        completing such actions.
          (3) Requirements for deferred applications.--
                  (A) In general.--If the Secretary provides 
                notice under paragraph (2)(B), the applicant 
                shall have a period of 2 years from the date of 
                receipt of the notice in which to complete all 
                requirements specified by the Secretary, 
                including providing information needed for 
                compliance with the National Environmental 
                Policy Act of 1969.
                  (B) Issuance of decision on permit.--If the 
                applicant completes the requirements within the 
                period specified in subparagraph (A), the 
                Secretary shall issue a decision on the permit 
                not later than 10 days after the date of 
                completion of the requirements described in 
                subparagraph (A), unless compliance with the 
                National Environmental Policy Act of 1969 and 
                other applicable law has not been completed 
                within such timeframe.
                  (C) Denial of permit.--If the applicant does 
                not complete the requirements within the period 
                specified in subparagraph (A) or if the 
                applicant does not comply with applicable law, 
                the Secretary shall deny the permit.

           *       *       *       *       *       *       *

  Sec. 35. (a) All money received from sales, bonuses, 
royalties including interest charges collected under the 
Federal Oil and Gas Royalty Management Act of 1982, and rentals 
of the public lands under the provisions of this Act and the 
Geothermal Steam Act of 1970, shall be paid into the Treasury 
of the United States; 50 per centum thereof shall be paid by 
the Secretary of the Treasury to the State other than Alaska 
within the boundaries of which the leased lands or deposits are 
or were located; said moneys paid to any of such States on or 
after January 1, 1976, to be used by such State and its 
subdivisions, as the legislature of the State may direct giving 
priority to those subdivisions of the State socially or 
economically impacted by development of minerals leased under 
this Act, for (i) planning, (ii) construction and maintenance 
of public facilities, and (iii) provision of public service; 
and excepting those from Alaska, 40 per centum thereof shall be 
paid into, reserved, appropriated, as part of the reclamation 
fund created by the Act of Congress known as the Reclamation 
Act, approved June 17, 1902, and of those from Alaska as soon 
as practicable after March 31 and September 30 of each year, 90 
per centum thereof shall be paid to the State of Alaska for 
disposition by the legislature thereof: Provided, That all 
moneys which may accrue to the United States under the 
provisions of this Act and the Geothermal Steam Act of 1970 
from lands within the naval petroleum reserves shall be 
deposited in the Treasury as ``miscellaneous receipts'', as 
provided by section 8733(b) of title 10, United States Code. 
All moneys received under the provisions of this Act and the 
Geothermal Steam Act of 1970 not otherwise disposed of by this 
section shall be credited to miscellaneous receipts. Payments 
to States under this section with respect to any moneys 
received by the United States, shall be made not later than the 
last business day of the month in which such moneys are 
warranted by the United States Treasury to the Secretary as 
having been received, except for any portion of such moneys 
which is under challenge and placed in a suspense account 
pending resolution of a dispute. Such warrants shall be issued 
by the United States Treasury not later than 10 days after 
receipt of such moneys by the Treasury. Moneys placed in a 
suspense account which are determined to be payable to a State 
shall be made not later than the last business day of the month 
in which such dispute is resolved. Any such amount placed in a 
suspense account pending resolution shall bear interest until 
the dispute is resolved.
  (b) Deduction for Administrative Costs.--In determining the 
amount of payments to the States under this section, beginning 
in fiscal year 2014 and for each year thereafter, the amount of 
such payments shall be reduced by 2 percent for any 
administrative or other costs incurred by the United States in 
carrying out the program authorized by this Act, and the amount 
of such reduction shall be deposited to miscellaneous receipts 
of the Treasury.
  (c)(1) Notwithstanding the first sentence of subsection (a), 
any rentals received from leases in any State (other than the 
State of Alaska) on or after the date of enactment of this 
subsection shall be deposited in the Treasury, to be allocated 
in accordance with paragraph (2).
  (2) Of the amounts deposited in the Treasury under paragraph 
(1)--
          (A) 50 percent shall be paid by the Secretary of the 
        Treasury to the State within the boundaries of which 
        the leased land is located or the deposits were 
        derived; and
          (B) 50 percent shall be deposited in a special fund 
        in the Treasury, to be known as the ``[BLM Permit 
        Processing Improvement Fund] BLM Administration and 
        Accountability Fund'' (referred to in this subsection 
        as the ``Fund'').
          (3) Use of fund.--
                  (A) In general.--The Fund shall be available 
                to the Secretary of the Interior for 
                expenditure, without further appropriation and 
                without fiscal year limitation, for the 
                coordination and processing of oil and gas use 
                authorizations on onshore Federal and Indian 
                trust mineral estate land.Such coordination and 
                processing shall include--
                          (i) the coordination and review 
                        process for financial assurances for 
                        oil and gas leases and bond releases 
                        for oil and gas leases; 
                          (ii) the inventory of orphaned wells 
                        and coordinate the processing of 
                        requests for delays in the permanent 
                        closure of inactive wells; and 
                          (iii) coordination and processing 
                        related to environmental and cultural 
                        resources reviews applicable to oil and 
                        gas activities. 
                  (B) Accounts.--The Secretary shall divide the 
                Fund into--
                          (i) a Rental Account (referred to in 
                        this subsection as the ``Rental 
                        Account'') comprised of rental receipts 
                        collected under this section; and
                          (ii) a Fee Account (referred to in 
                        this subsection as the ``Fee Account'') 
                        comprised of fees collected under 
                        subsection (d).
          (4) Rental account.--
                  (A) In general.--The Secretary shall use the 
                Rental Account for--
                          (i) the coordination and processing 
                        of oil and gas use authorizations on 
                        onshore Federal and Indian trust 
                        mineral estate land under the 
                        jurisdiction of the Project offices 
                        identified under section 365(d) of the 
                        Energy Policy Act of 2005 (42 U.S.C. 
                        15924(d)); and
                          (ii) training programs for 
                        development of expertise related to 
                        coordinating and processing oil and gas 
                        use authorizations.
                  (B) Allocation.--In determining the 
                allocation of the Rental Account among Project 
                offices for a fiscal year, the Secretary shall 
                consider--
                          (i) the number of applications for 
                        permit to drill received in a Project 
                        office during the previous fiscal year;
                          (ii) the backlog of applications 
                        described in clause (i) in a Project 
                        office;
                          (iii) publicly available industry 
                        forecasts for development of oil and 
                        gas resources under the jurisdiction of 
                        a Project office; and
                          (iv) any opportunities for 
                        partnership with local industry 
                        organizations and educational 
                        institutions in developing training 
                        programs to facilitate the coordination 
                        and processing of oil and gas use 
                        authorizations.
          (5) Fee account.--
                  (A) In general.--The Secretary shall use the 
                Fee Account for the coordination and processing 
                of oil and gas use authorizations on onshore 
                Federal and Indian trust mineral estate land.
                  (B) Allocation.--The Secretary shall transfer 
                not less than 75 percent of the revenues 
                collected by an office for the processing of 
                applications for permits to the State office of 
                the State in which the fees were collected.
  (d) BLM Oil and Gas Permit Processing Fee.--
          (1) In general.--Notwithstanding any other provision 
        of law, for each of fiscal years 2016 through 2026, the 
        Secretary, acting through the Director of the Bureau of 
        Land Management, shall collect a fee for each new 
        application for a permit to drill that is submitted to 
        the Secretary.
          (2) Amount.--The amount of the fee shall be $9,500 
        for each new application, as indexed for United States 
        dollar inflation from October 1, 2015 (as measured by 
        the Consumer Price Index).
          (3) Use.--Of the fees collected under this subsection 
        for a fiscal year, the Secretary shall transfer--
                  (A) for each of fiscal years 2016 through 
                2019--
                          (i) 15 percent to the field offices 
                        that collected the fees and used to 
                        process protests, leases, and permits 
                        under this Act, subject to 
                        appropriation; and
                          (ii) 85 percent to the BLM Permit 
                        Processing Improvement Fund established 
                        under subsection (c)(2)(B) (referred to 
                        in this subsection as the ``Fund''); 
                        and
                  (B) for each of fiscal years 2020 through 
                2026, all of the fees to the Fund.
          (4) Additional costs.--During each of fiscal years of 
        2016 through 2026, the Secretary shall not implement a 
        rulemaking that would enable an increase in fees to 
        recover additional costs related to processing 
        applications for permits to drill.

           *       *       *       *       *       *       *

                              ----------                              


           FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982



           *       *       *       *       *       *       *
TITLE I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

           *       *       *       *       *       *       *


                              inspections

  Sec. 108. (a)(1) On any lease site on Federal or Indian 
lands, any authorized and properly identified representative of 
the Secretary may stop and inspect any motor vehicle that he 
has probable cause to believe is carrying oil from a lease site 
on Federal or Indian lands or allocated to such a lease site, 
for the purpose of determining whether the driver of such 
vehicle has documentation related to such oil as required by 
law.
  (2) Any authorized and properly identified representative of 
the Secretary, accompanied by any appropriate law enforcement 
officer, or an appropriate law enforcement officer alone, may 
stop and inspect any motor vehicle which is not on a lease site 
if he has probable cause to believe the vehicle is carrying oil 
from a lease site on Federal or Indian lands or allocated to 
such a lease site. Such inspection shall be for the purpose of 
determining whether the driver of such vehicle has the 
documentation required by law.
  (b) Authorized and properly identified representatives of the 
Secretary may without advance notice, enter upon, travel across 
and inspect lease sites on Federal or Indian lands and may 
obtain from the operator immediate access to secured facilities 
on such lease sites, for the purpose of making any inspection 
or investigation for determining whether there is compliance 
with the requirements of the mineral leasing laws and this Act. 
The Secretary shall develop guidelines setting forth the 
coverage and the frequency of such inspections.
  (c) For the purpose of making any inspection or investigation 
under this Act, the Secretary shall have the same right to 
enter upon or travel across any lease site as the lessee or 
operator has acquired by purchase, condemnation, or otherwise.
  (d) Inspection Fees.--
          (1) In general.--Except as provided in paragraph (5), 
        the designated operator under each oil and gas lease on 
        Federal or Indian lands, or each unit and 
        communitization agreement that includes one or more 
        such Federal or Indian leases, that is subject to 
        inspection under subsection (b) and that is in force at 
        the start of the fiscal year 2021, shall pay a 
        nonrefundable annual inspection fee in an amount that, 
        except as provided in paragraph (2), is established by 
        the Secretary by regulation and is sufficient to 
        recover the full costs incurred by the United States 
        for inspection and enforcement with respect to such 
        leases.
          (2) Amount.--Until the effective date of regulations 
        under paragraph (1), the amount of the fee shall be--
                  (A) $700 for each lease or unit or 
                communitization agreement with no active or 
                inactive wells, but with surface use, 
                disturbance or reclamation;
                  (B) $1,225 for each lease or unit or 
                communitization agreement with 1 to 10 wells, 
                with any combination of active or inactive 
                wells;
                  (C) $4,900 for each lease or unit or 
                communitization agreement with 11 to 50 wells, 
                with any combination of active or inactive 
                wells; and
                  (D) $9,800 for each lease or unit or 
                communitization agreement with more than 50 
                wells, with any combination of active or 
                inactive wells.
          (3) Due date.--Payment of the fee under this section 
        shall be due, annually, not later than 30 days after 
        the Secretary provides notice of the assessment of the 
        fee.
          (4) Penalty.--If the designated operator fails to pay 
        the full amount of the fee as prescribed in this 
        section, the Secretary may, in addition to utilizing 
        any other applicable enforcement authority, assess 
        civil penalties against the operator under section 109 
        in the same manner as if this section were a mineral 
        leasing law.
          (5) Exemption for tribal operators.--An operator that 
        is a Tribe or is controlled by a Tribe is not subject 
        to paragraph (1) with respect to a lease, unit, or 
        communitization agreement that is located entirely on 
        the lands of such Tribe.
          (6) Adjustment for inflation.--In the application of 
        paragraph (2), the Secretaries shall at least once 
        every three years, at the beginning of the fiscal year, 
        adjust the dollar amounts in paragraph (2) to account 
        for inflation based on the Consumer Price Index for all 
        urban consumer published by the Department of Labor.

           *       *       *       *       *       *       *

                              ----------                              


       NATIONAL WILDLIFE REFUGE SYSTEM ADMINISTRATION ACT OF 1966



           *       *       *       *       *       *       *
  Sec. 4. (a)(1) For the purpose of consolidating the 
authorities relating to the various categories of areas that 
are administered by the Secretary for the conservation of fish 
and wildlife, including species that are threatened with 
extinction, all lands, waters, and interests therein 
administered by the Secretary as wildlife refuges, areas for 
the protection and conservation of fish and wildlife that are 
threatened with extinction, wildlife ranges, game ranges, 
wildlife management areas, or waterfowl production areas are 
hereby designated as the ``National Wildlife Refuge System'' 
(referred to herein as the ``System''), which shall be subject 
to the provisions of this section, and shall be administered by 
the Secretary through the United States Fish and Wildlife 
Service. With respect to refuge lands in the State of Alaska, 
those programs relating to the management of resources for 
which any other agency of the Federal Government exercises 
administrative responsibility through cooperative agreement 
shall remain in effect, subject to the direct supervision of 
the United States Fish and Wildlife Service, as long as such 
agency agrees to exercise such responsibility.
  (2) The mission of the System is to administer a national 
network of lands and waters for the conservation, management, 
and where appropriate, restoration of the fish, wildlife, and 
plant resources and their habitats within the United States for 
the benefit of present and future generations of Americans.
  (3) With respect to the System, it is the policy of the 
United States that--
          (A) each refuge shall be managed to fulfill the 
        mission of the System, as well as the specific purposes 
        for which that refuge was established;
          (B) compatible wildlife-dependent recreation is a 
        legitimate and appropriate general public use of the 
        System, directly related to the mission of the System 
        and the purposes of many refuges, and which generally 
        fosters refuge management and through which the 
        American public can develop an appreciation for fish 
        and wildlife;
          (C) compatible wildlife-dependent recreational uses 
        are the priority general public uses of the System and 
        shall receive priority consideration in refuge planning 
        and management; and
          (D) when the Secretary determines that a proposed 
        wildlife-dependent recreational use is a compatible use 
        within a refuge, that activity should be facilitated, 
        subject to such restrictions or regulations as may be 
        necessary, reasonable, and appropriate.
  (4) In administering the System, the Secretary shall--
          (A) provide for the conservation of fish, wildlife, 
        and plants, and their habitats within the System;
          (B) ensure that the biological integrity, diversity, 
        and environmental health of the System are maintained 
        for the benefit of present and future generations of 
        Americans;
          (C) plan and direct the continued growth of the 
        System in a manner that is best designed to accomplish 
        the mission of the System, to contribute to the 
        conservation of the ecosystems of the United States, to 
        complement efforts of States and other Federal agencies 
        to conserve fish and wildlife and their habitats, and 
        to increase support for the System and participation 
        from conservation partners and the public;
          (D) ensure that the mission of the System described 
        in paragraph (2) and the purposes of each refuge are 
        carried out, except that if a conflict exists between 
        the purposes of a refuge and the mission of the System, 
        the conflict shall be resolved in a manner that first 
        protects the purposes of the refuge, and, to the extent 
        practicable, that also achieves the mission of the 
        System;
          (E) ensure effective coordination, interaction, and 
        cooperation with owners of land adjoining refuges and 
        the fish and wildlife agency of the States in which the 
        units of the System are located;
          (F) assist in the maintenance of adequate water 
        quantity and water quality to fulfill the mission of 
        the System and the purposes of each refuge;
          (G) acquire, under State law, water rights that are 
        needed for refuge purposes;
          (H) recognize compatible wildlife-dependent 
        recreational uses as the priority general public uses 
        of the System through which the American public can 
        develop an appreciation for fish and wildlife;
          (I) ensure that opportunities are provided within the 

        System for compatible wildlife-dependent recreational 
        uses;
          (J) ensure that priority general public uses of the 
        System receive enhanced consideration over other 
        general public uses in planning and management within 
        the System;
          (K) provide increased opportunities for families to 
        experience compatible wildlife-dependent recreation, 
        particularly opportunities for parents and their 
        children to safely engage in traditional outdoor 
        activities, such as fishing and hunting;
          (L) continue, consistent with existing laws and 
        interagency agreements, authorized or permitted uses of 
        units of the System by other Federal agencies, 
        including those necessary to facilitate military 
        preparedness;
          (M) ensure timely and effective cooperation and 
        collaboration with Federal agencies and State fish and 
        wildlife agencies during the course of acquiring and 
        managing refuges; and
          (N) monitor the status and trends of fish, wildlife, 
        and plants in each refuge.
  (5) No acquired lands which are or become a part of the 
System may be transferred or otherwise disposed of under any 
provision of law (except by exchange pursuant to subsection 
(b)(3) of this section) unless--
          (A) the Secretary determines with the approval of the 
        Migratory Bird Conservation Commission that such lands 
        are no longer needed for the purposes for which the 
        System was established; and
          (B) such lands are transferred or otherwise disposed 
        of for an amount not less than--
                  (i) the acquisition costs of such lands, in 
                the case of lands of the system which were 
                purchased by the United States with funds from 
                the migratory bird conservation fund, or fair 
                market value, whichever is greater; or
                  (ii) the fair market value of such lands (as 
                determined by the Secretary as of the date of 
                the transfer or disposal), in the case of lands 
                of the System which were donated to the System.
The Secretary shall pay into the migratory bird conservation 
fund the aggregate amount of the proceeds of any transfer or 
disposal referred to in the preceding sentence.
  (6) Each area which is included within the System on January 
1, 1975, or thereafter, and which was or is--
          (A) designated as an area within such System by law, 
        Executive order, or secretarial order; or
          (B) so included by public land withdrawal, donation, 
        purchase, exchange, or pursuant to a cooperative 
        agreement with any State or local government, any 
        Federal department or agency, or any other governmental 
        entity,
shall continue to be a part of the System until otherwise 
specified by Act of Congress, except that nothing in this 
paragraph shall be construed as precluding--
          
                  (i) the transfer or disposal of acquired 
                lands within any such area pursuant to 
                paragraph (5) of this subsection;
                  (ii) the exchange of lands within any such 
                area pursuant to subsection (b)(3) of this 
                section; or
                  (iii) the disposal of any lands within any 
                such area pursuant to the terms of any 
                cooperative agreement referred to in 
                subparagraph (B) of this paragraph.
  (b) In administering the System, the Secretary is authorized 
to take the following actions:
          (1) Enter into contracts with any person or public or 
        private agency through negotiation for the provision of 
        public accommodations when, and in such locations, and 
        to the extent that the Secretary determines will not be 
        inconsistent with the primary purpose for which the 
        affected area was established.
          (2) Accept donations of funds and to use such funds 
        to acquire or manage lands or interests therein.
          (3) Acquire lands or interests therein by exchange 
        (A) for acquired lands or public lands, or for 
        interests in acquired or public lands, under his 
        jurisdiction which he finds to be suitable for 
        disposition, or (B) for the right to remove, in 
        accordance with such terms and conditions as he may 
        prescribe, products from the acquired or public lands 
        within the System. The values of the properties so 
        exchanged either shall be approximately equal, or if 
        they are not approximately equal the values shall be 
        equalized by the payment of cash to the grantor or to 
        the Secretary as the circumstances require.
          (4) Subject to standards established by and the 
        overall management oversight of the Director, and 
        consistent with standards established by this Act, to 
        enter into cooperative agreements with State fish and 
        wildlife agencies for the management of programs on a 
        refuge.
          (5) Issue regulations to carry out this Act.
  (c) No person shall disturb, injure, cut, burn, remove, 
destroy, or possess any real or personal property of the United 
States, including natural growth, in any area of the System; or 
take or possess any fish, bird, mammal, or other wild 
vertebrate or invertebrate animals or part or nest or egg 
thereof within any such area; or enter, use, or otherwise 
occupy any such area for any purpose; unless such activities 
are performed by persons authorized to manage such area, or 
unless such activities are permitted either under subsection 
(d) of this section or by express provision of the law, 
proclamation, Executive order, or public land order 
establishing the area, or amendment thereof: Provided, That the 
United States mining and mineral leasing laws shall continue to 
apply to any lands within the System to the same extent they 
apply prior to the effective date of this Act unless 
subsequently withdrawn under other authority of law. With the 
exception of endangered species and threatened species listed 
by the Secretary pursuant to section 4 of the Endangered 
Species Act of 1973 in States wherein a cooperative agreement 
does not exist pursuant to section 6(c) of that Act, nothing in 
this Act shall be construed to authorize the Secretary to 
control or regulate hunting or fishing of resident fish and 
wildlife on lands not within the system. The regulations 
permitting hunting and fishing of resident fish and wildlife 
within the System shall be, to the extent practicable, 
consistent with State fish and wildlife laws and regulations.
  (d)(1) The Secretary is authorized, under such regulations as 
he may prescribe, to--
          (A) permit the use of any area within the System for 
        any purpose, including but not limited to hunting, 
        fishing, public recreation and accommodations, and 
        access whenever he determines that such uses are 
        compatible with the major purposes for which such areas 
        were established: Provided, That not to exceed 40 per 
        centum at any one time of any area that has been, or 
        hereafter may be acquired, reserved, or set apart as an 
        inviolate sanctuary for migratory birds, under any law, 
        proclamation, Executive order, or public land order may 
        be administered by the Secretary as an area within 
        which the taking of migratory game birds may be 
        permitted under such regulations as he may prescribe 
        unless the Secretary finds that the taking of any 
        species of migratory game birds in more than 40 percent 
        of such area would be beneficial to the species; and
          (B) permit the use of, or grant easements in, over, 
        across, upon, through, or under any areas within the 
        System for purposes such as but not necessarily limited 
        to, powerlines, telephone lines, canals, ditches, 
        pipelines, and roads, including the construction, 
        operation, and maintenance thereof, whenever he 
        determines that such uses are compatible with the 
        purposes for which these areas are established.
  (2) Notwithstanding any other provision of law, the Secretary 
may not grant to any Federal, State, or local agency or to any 
private individual or organization any right-of-way, easement, 
or reservation in, over, across, through, or under any area 
within the system in connection with any use permitted by him 
under paragraph (1)(B) of this subsection unless the grantee 
pays to the Secretary, at the option of the Secretary, either 
(A) in lump sum the fair market value (determined by the 
Secretary as of the date of conveyance to the grantee) of the 
right-of-way, easement, or reservation; or (B) annually in 
advance the fair market rental value (determined by the 
Secretary) of the right-of-way, easement, or reservation. If 
any Federal, State, or local agency is exempted from such 
payment by any other provision of Federal law, such agency 
shall otherwise compensate the Secretary by any other means 
agreeable to the Secretary, including, but not limited to, 
making other land available or the loan of equipment or 
personnel; except that (A) any such compensation shall relate 
to, and be consistent with, the objectives of the National 
Wildlife Refuge System, and (B) the Secretary may waive such 
requirement for compensation if he finds such requirement 
impracticable or unnecessary. All sums received by the 
Secretary pursuant to this paragraph shall, after payment of 
any necessary expenses incurred by him in administering this 
paragraph, be deposited into the Migratory Bird Conservation 
Fund and shall be available to carry out the provisions for 
land acquisition of the Migratory Bird Conservation Act (16 
U.S.C. 715 et seq.) and the Migratory Bird Hunting Stamp Act 
(16 U.S.C. 718 et seq.).
  (3)(A)(i) Except as provided in clause (iv), the Secretary 
shall not initiate or permit a new use of a refuge or expand, 
renew, or extend an existing use of a refuge, unless the 
Secretary has determined that the use is a compatible use and 
that the use is not inconsistent with public safety. The 
Secretary may make the determinations referred to in this 
paragraph for a refuge concurrently with development of a 
conservation plan under subsection (e).
  (ii) On lands added to the System after March 25, 1996, the 
Secretary shall identify, prior to acquisition, withdrawal, 
transfer, reclassification, or donation of any such lands, 
existing compatible wildlife-dependent recreational uses that 
the Secretary determines shall be permitted to continue on an 
interim basis pending completion of the comprehensive 
conservation plan for the refuge.
  (iii) Wildlife-dependent recreational uses may be authorized 
on a refuge when they are compatible and not inconsistent with 
public safety. Except for consideration of consistency with 
State laws and regulations as provided for in subsection (m), 
no other determinations or findings are required to be made by 
the refuge official under this Act or the Refuge Recreation Act 
for wildlife-dependent recreation to occur.
  (iv) Compatibility determinations in existence on the date of 
enactment of the National Wildlife Refuge System Improvement 
Act of 1997 shall remain in effect until and unless modified.
  (B) Not later than 24 months after the date of the enactment 
of the National Wildlife Refuge System Improvement Act of 1997, 
the Secretary shall issue final regulations establishing the 
process for determining under subparagraph (A) whether a use of 
a refuge is a compatible use. These regulations shall--
          (i) designate the refuge official responsible for 
        making initial compatibility determinations;
          (ii) require an estimate of the timeframe, location, 
        manner, and purpose of each use;
          (iii) identify the effects of each use on refuge 
        resources and purposes of each refuge;
          (iv) require that compatibility determinations be 
        made in writing;
          (v) provide for the expedited consideration of uses 
        that will likely have no detrimental effect on the 
        fulfillment of the purposes of a refuge or the mission 
        of the System;
          (vi) provide for the elimination or modification of 
        any use as expeditiously as practicable after a 
        determination is made that the use is not a compatible 
        use;
          (vii) require, after an opportunity for public 
        comment, reevaluation of each existing use, other than 
        those uses 
        specified in clause (viii), if conditions under which 
        the use is permitted change significantly or if there 
        is significant new information regarding the effects of 
        the use, but not less frequently than once every 10 
        years, to ensure that the use remains a compatible use, 
        except that, in the case of any use authorized for a 
        period longer than 10 years (such as an electric 
        utility right-of-way), the reevaluation required by 
        this clause shall examine compliance with the terms and 
        conditions of the authorization, not examine the 
        authorization itself;
          (viii) require, after an opportunity for public 
        comment, reevaluation of each compatible wildlife-
        dependent recreational use when conditions under which 
        the use is permitted change significantly or if there 
        is significant new information regarding the effects of 
        the use, but not less frequently than in conjunction 
        with each preparation or revision of a conservation 
        plan under subsection (e) or at least every 15 years, 
        whichever is earlier; and
          (ix) provide an opportunity for public review and 
        comment on each evaluation of a use, unless an 
        opportunity for public review and comment on the 
        evaluation of the use has already been provided during 
        the development or revision of a conservation plan for 
        the refuge under subsection (e) or has otherwise been 
        provided during routine, periodic determinations of 
        compatibility for wildlife-dependent recreational uses.
  (4) The provisions of this Act relating to determinations of 
the compatibility of a use shall not apply to--
          (A) overflights above a refuge; and
          (B) activities authorized, funded, or conducted by a 
        Federal agency (other than the United States Fish and 
        Wildlife Service) which has primary jurisdiction over a 
        refuge or a portion of a refuge, if the management of 
        those activities is in accordance with a memorandum of 
        understanding between the Secretary or the Director and 
        the head of the Federal agency with primary 
        jurisdiction over the refuge governing the use of the 
        refuge.
  (e)(1)(A) Except with respect to refuge lands in Alaska 
(which shall be governed by the refuge planning provisions of 
the Alaska National Interest Lands Conservation Act (16 U.S.C. 
3101 et seq.)), the Secretary shall--
          (i) propose a comprehensive conservation plan for 
        each refuge or related complex of refuges (referred to 
        in this 
        subsection as a ``planning unit'') in the System;
          (ii) publish a notice of opportunity for public 
        comment in the Federal Register on each proposed 
        conservation plan;
          (iii) issue a final conservation plan for each 
        planning unit consistent with the provisions of this 
        Act and, to the extent practicable, consistent with 
        fish and wildlife conservation plans of the State in 
        which the refuge is located; and
          (iv) not less frequently than 15 years after the date 
        of issuance of a conservation plan under clause (iii) 
        and every 15 years thereafter, revise the conservation 
        plan as may be necessary.
  (B) The Secretary shall prepare a comprehensive conservation 
plan under this subsection for each refuge within 15 years 
after the date of enactment of the National Wildlife Refuge 
System Improvement Act of 1997.
  (C) The Secretary shall manage each refuge or planning unit 
under plans in effect on the date of enactment of the National 
Wildlife Refuge System Improvement Act of 1997, to the extent 
such plans are consistent with this Act, until such plans are 
revised or superseded by new comprehensive conservation plans 
issued under this subsection.
  (D) Uses or activities consistent with this Act may occur on 
any refuge or planning unit before existing plans are revised 
or new comprehensive conservation plans are issued under this 
subsection.
  (E) Upon completion of a comprehensive conservation plan 
under this subsection for a refuge or planning unit, the 
Secretary shall manage the refuge or planning unit in a manner 
consistent with the plan and shall revise the plan at any time 
if the Secretary determines that conditions that affect the 
refuge or planning unit have changed significantly.
  (2) In developing each comprehensive conservation plan under 
this subsection for a planning unit, the Secretary, acting 
through the Director, shall identify and describe--
          (A) the purposes of each refuge comprising the 
        planning unit;
          (B) the distribution, migration patterns, and 
        abundance of fish, wildlife, and plant populations and 
        related habitats within the planning unit;
          (C) the archaeological and cultural values of the 
        planning unit;
          (D) such areas within the planning unit that are 
        suitable for use as administrative sites or visitor 
        facilities;
          (E) significant problems that may adversely affect 
        the populations and habitats of fish, wildlife, and 
        plants within the planning unit and the actions 
        necessary to correct or 
        mitigate such problems; and
          (F) opportunities for compatible wildlife-dependent 
        recreational uses.
  (3) In preparing each comprehensive conservation plan under 
this subsection, and any revision to such a plan, the 
Secretary, acting through the Director, shall, to the maximum 
extent 
practicable and consistent with this Act--
          (A) consult with adjoining Federal, State, local, and 
        private landowners and affected State conservation 
        agencies; and
          (B) coordinate the development of the conservation 
        plan or revision with relevant State conservation plans 
        for fish and wildlife and their habitats.
  (4)(A) In accordance with subparagraph (B), the Secretary 
shall develop and implement a process to ensure an opportunity 
for active public involvement in the preparation and revision 
of comprehensive conservation plans under this subsection. At a 
minimum, the Secretary shall require that publication of any 
final plan shall include a summary of the comments made by 
States, owners of adjacent or potentially affected land, local 
governments, and any other affected persons, and a statement of 
the disposition of concerns expressed in those comments.
  (B) Prior to the adoption of each comprehensive conservation 
plan under this subsection, the Secretary shall issue public 
notice of the draft proposed plan, make copies of the plan 
available at the affected field and regional offices of the 
United States Fish and Wildlife Service, and provide 
opportunity for public comment.
  (f) Penalties.--
          (1) Knowing violations.--Any person who knowingly 
        violates or fails to comply with any of the provisions 
        of this Act or any regulations issued thereunder shall 
        be fined under title 18, United States Code, or 
        imprisoned for not more than 1 year, or both.
          (2) Other violations.--Any person who otherwise 
        violates or fails to comply with any of the provisions 
        of this Act (including a regulation issued under this 
        Act) shall be fined under title 18, United States Code, 
        or imprisoned not more than 180 days, or both.
  (g) Any person authorized by the Secretary to enforce the 
provisions of this Act or any regulations issued thereunder, 
may, without a warrant, arrest any person violating this Act or 
regulations in his presence or view, and may execute any 
warrant or other process issued by an officer or court of 
competent jurisdiction to enforce the provisions of this Act or 
regulations, and may with a search warrant search for and seize 
any property, fish, bird, mammal, or other wild vertebrate or 
invertebrate animals or part or nest or egg thereof, taken or 
possessed in violation of this Act or the regulations issued 
thereunder. Any property, fish, bird, mammal, or other wild 
vertebrate or invertebrate animals or part or egg thereof 
seized with or without a search warrant shall be held by such 
person or by a United States marshal, and upon conviction, 
shall be forfeited to the United States and disposed of by the 
Secretary, in accordance with law. The Director of the United 
States Fish and Wildlife Service is authorized to utilize by 
agreement, with or without reimbursement, the personnel and 
services of any other Federal or State agency for purposes of 
enhancing the enforcement of this Act.
  (h) Reclamation, Damages, and Financial Assurance for Oil and 
Gas Operations on Refuge Lands.--
          (1) The Secretary, acting through the Director, shall 
        obtain adequate financial assurances from non-Federal 
        entities to repair potential damages to refuge 
        resources, prior to the commencement of surface-
        disturbing activities as part of the development of 
        non-Federal minerals below refuge surface estate, 
        including--
                  (A) to ensure the complete and timely 
                reclamation of the land, and the restoration of 
                any lands or surface waters adversely affected 
                by operations after the abandonment or 
                cessation of oil and gas operations on the 
                land; and
                  (B) to meet potential response and assessment 
                costs and other damages to refuge resources as 
                a result of oil and gas operations.
          (2) Financial assurances forfeited by a non-Federal 
        entity under this subsection shall be retained and 
        available to the Secretary, without further 
        appropriation, and shall remain available until 
        expended, for--
                  (A) plugging and abandoning wells;
                  (B) removing structures, equipment, 
                materials, and other infrastructure;
                  (C) response costs and damage assessments 
                conducted;
                  (D) restoration, replacement, or acquisition 
                of the equivalent refuge resources; and
                  (E) monitoring and studying affected refuge 
                resources.
  [(h)] (i) Regulations applicable to areas of the System that 
are in effect on the date of enactment of this Act shall 
continue in effect until modified or rescinded.
  [(i)] (j) Nothing in this section shall be construed to 
amend, repeal, or otherwise modify the provision of the Act of 
September 28, 1962 (76 Stat. 653; 16 U.S.C. 460K--460K-4) which 
authorizes the Secretary to administer the areas within the 
System for public recreation. The provisions of this section 
relating to recreation shall be administered in accordance with 
the provisions of said Act.
  [(j)] (k) Nothing in this Act shall constitute an express or 
implied claim or denial on the part of the Federal Government 
as to exemption from State water laws.
  [(k)] (l) Notwithstanding any other provision of this Act, 
the Secretary may temporarily suspend, allow, or initiate any 
activity in a refuge in the System if the Secretary determines 
it is necessary to protect the health and safety of the public 
or any fish or wildlife population.
  [(l)] (m) Nothing in this Act shall be construed to authorize 
the Secretary to control or regulate hunting or fishing of fish 
and resident wildlife on lands or waters that are not within 
the System.
  [(m)] (n) Nothing in this Act shall be construed as affecting 
the authority, jurisdiction, or responsibility of the several 
States to manage, control, or regulate fish and resident 
wildlife under State law or regulations in any area within the 
System. Regulations permitting hunting or fishing of fish and 
resident wildlife within the System shall be, to the extent 
practicable, consistent with State fish and wildlife laws, 
regulations, and management plans.
  [(n)] (o)(1) Nothing in this Act shall--
          (A) create a reserved water right, express or 
        implied, in the United States for any purpose;
          (B) affect any water right in existence on the date 
        of enactment of the National Wildlife Refuge System 
        Improvement Act of 1997; or
          (C) affect any Federal or State law in existence on 
        the date of the enactment of the National Wildlife 
        Refuge System Improvement Act of 1997 regarding water 
        quality or water quantity.
  (2) Nothing in this Act shall diminish or affect the ability 
to join the United States in the adjudication of rights to the 
use of water pursuant to the McCarran Act (43 U.S.C. 666).
  [(o)] (p) Coordination with State fish and wildlife agency 
personnel or with personnel of other affected State agencies 
pursuant to this Act shall not be subject to the Federal 
Advisory Committee Act (5 U.S.C. App.).

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    H.R. 1505, sponsored by Rep. Lowenthal, would prohibit the 
Secretary of the Interior from issuing an Application for 
Permit to Drill (APD) to an oil and gas operator on federal 
lands until the Secretary concerned (Secretary of Agriculture 
on Forest Service lands and the Secretary of the Interior on 
Bureau of Land Management lands) approves a interim reclamation 
plan specifying reclamation steps to be taken on all disturbed 
areas on any lease not needed for active operations and a final 
reclamation plan describing all reclamation activity to be 
conducted for all disturbed areas.
    H.R. 1505 would also increase the minimum requirement for 
providing a bond, surety, or other financial arrangement to at 
least $150,000 for an individual surface disturbing activity or 
$500,000 for all surface disturbing activities within a given 
state and eliminates the option to provide financial assurance 
to cover nationwide activities. Under this bill, the 
Secretaries of Agriculture and Interior would have to jointly 
adjust these amounts for inflation every 3 years based on the 
Consumer Price Index. The bill would also require oil and gas 
operators to pay new inspection fees for drilling activities on 
federal lands.
    The Department of the Interior (DOI) requires lessees to 
provide bonds to cover the reclamation of any lands impacted by 
oil and gas development before any surface disturbance can 
occur.\1\ Currently, operators may post individual bonds of at 
least $10,000 covering operations for one lease, at least 
$25,000 covering all operations within a particular state, or 
at least $150,000 to cover all operations nationwide. Operators 
may submit surety bonds or personal bonds. Surety bonds must be 
approved by the Department of Treasury as an acceptable surety. 
Personal bonds may be backed by a cashier's check, a certified 
check, negotiable Treasury security, or a certificate of 
deposit payable to DOI.\2\ For federal wells, the bonds are 
held by the Bureau of Land Management (BLM) until the 
reclamation requirements are met. If an operator does not 
fulfill their reclamation responsibilities, and the bond 
provided to the federal government does not cover the cost of 
restoration, the wells become orphaned and the BLM is 
responsible for cleaning up the well.
---------------------------------------------------------------------------
    \1\U.S. Department of the Interior. Bureau of Land Management. 
Bonding. https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/
leasing/bonding.
    \2\Id.
---------------------------------------------------------------------------
    While there are a few bad actors who leave orphaned wells 
for the BLM to clean up, most operators complete their 
reclamation responsibilities. According to the U.S. Government 
Accountability Office (GAO), of the 96,199 wells on federal 
lands, only 296 have been left to BLM to reclaim, roughly 0.3 
percent.\3\ BLM spends about $267,600 per year on reclamation, 
while the onshore oil and gas program returned $4.3 billion in 
revenues in 2019.\4\ H.R. 1505 would drastically raise bond 
levels for all operators, forcing them to tie up significant 
amounts of capital in unproductive operations, which could 
reduce production and revenues overall.
---------------------------------------------------------------------------
    \3\U.S. Government Accountability Office. Oil and Gas: Bureau of 
Land Management Should Address Risks from Insufficient Bonds to Reclaim 
Wells. GAO-19-615: Published: Sep 18, 2019. https://www.gao.gov/
products/GAO-19-615.
    \4\US Department of the Interior. Office of Natural Resources 
Revenue. Natural Resources Revenue.
---------------------------------------------------------------------------
    H.R. 1505 aims to make providing bond coverage for 
reclamation activities more costly for operators, which 
disproportionately impacts small operators and could prevent 
them from accessing federal lands. We should ensure that all 
operators meet their obligations under the law, but this bill 
would punish all operators for the actions of a few.
    For these reasons, I am opposed to H.R. 1505.

                                                   Bruce Westerman.

                                [all]