QUESTION 6--For each resource, what conditions regarding land reclamation, protection of other resources, or environmental quality, are currently required for exploration or energy resource production on the public lands? a) To what extent are such conditions prescribed or proscribed by law, or within the discretionary authority of the Interior Department? b) In what instances, if any, does the law permit or require bonding or other assurance of financial responsibility for environmental protection or performance? c) What, if any, recourse or enforcement authority has the authority to cancel a lease permit, or other resource right in such an instance? Is additional authority needed at this time? If so, what provisions should such d) What has been the specific effect of environmental laws, regulations, and requirements on the level of exploration and production of energy minerals on the public lands? 85-197 O-73-4 ANSWER 6 - Oil and Gas on the OCS All oil and gas lease sales on the OCS are considered major actions which can significantly affect the quality of the human environment and consequently require the preparation of environmental impact statements. Compliance with detailed lease stipulations, operating regulations and orders designed to protect the environment is required of all lessees and operators on the OCS. (a) Section 102(c) of NEPA prescribes the specific minimal content of environmental impact state ments required of all major actions affecting Section (5) of the OCS Lands Act provides the prescribe such rules and regulations as may be (b) The OCS leasing regulations provide for bonding all lessees, these bonds are being conditioned on compliance with all terms of the lease. (c) The OCS operating regulations provide for the which in the Department's judgment threatens immediate, serious, or irreparable harm to the Any non-producing lease may be cancelled administratively whenever the lessee fails to comply with any provision of the OCS Act or lease or applicable regulations in force and effect on the date of issuance of the lease. Pro ducing leases may be cancelled for such failure only We believe the Department presently has ample authority (d) The net effects of strengthened environmental laws has been an increase in the time required to implement operational steps which necessarily precede and lead up to an OCS sale and some reduction in the Onshore Minerals--Under 43 CFR 23.5(a) (1) Departmental regulations and BLM manual procedures, before a permit for exploratory activity is issued, a technical examination is made to determine the probable effect of prospecting activity on the environment. The examination takes into consideration the need for the "preservation and protection of other resources including recreational, scenic, historic, and ecological values; the control of erosion, flooding and pollution of water; the isolation of toxic materials; the prevention of air pollution; the reclamation by revegetation, replacement of soil, or by other means, of lands affected by the exploration or mining operations; the prevention of slides; the protection of fish and wildlife and their habitat; and the prevention of hazards to public health and safety". (43 CFR 23. 5(a)(1) Stipulations to protect the environment are incorporated in the permit. If the technical examination reveals that operations cannot feasibly be conducted to avoid certain specified damages to the environment, operations may be prohibited or restricted in the area under application. For onshore oil and gas, a BLM manual 3109/3509 prescribes that the same type procedures followed under 43 CFR 23 for other minerals will also be followed before the issuance of oil and gas leases. With respect to those nuclear (uranium and thorium) deposits which are subject to the location-patent system, the Mining Law of 1872 does not provide for the Government's control of environmental impacts. The authority of the Secretary to impose environmental controls on activities under the mining law is now under study by the Department. Mining operations would be subject to applicable state water and air quality and surface restoration controls and to various surface management authorities of the Federal resources management agencies. AEC, in its procedures to license uranium ore processing plants, requires as part of the 102 Environmental Impact Statement a description of the environmental impact of associated mining operations. (a) The above described procedures for controlling environmental impacts for leasable minerals are within the discretionary (b) The leasing acts provide that the Secretary shall prescribe such rulcs and regulations as he may deem appropriate to carry out the provisions of the acts, including bonding requirements for environmental protection or performance. For nuclear minerals, the Mining Law does not make provisions for bonding requirements. (c) The Department does not have the authority to cancel leases (except geothermal steam and nonproducing oil and gas leases) for violations or default of contract provisions regarding protection of other resources, environmental quality, or land reclamation. Nonproducing oil and gas and geothermal steam leases can be cancelled administratively for violations by the Department. Other leases can be cancelled only by Federal Courts. The Department does have the authority to cancel all permits for non-compliance with the terms and conditions. Additional authority is not needed with respect to the cancellation of any permit. However, the Department does need the authority to |