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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
Interior Department (or your agency) with respect to
violations or default of contract provisions regarding
protection of other resources or environmental quality,
or land reclamation? Does the Federal government have

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
new authority contain?

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

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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
the environment.

Section (5) of the OCS Lands Act provides the
Secretary broad discretionary authority to

prescribe such rules and regulations as may be
necessary to administer leasing on the OCS.

(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
suspension of operations, including production,

which in the Department's judgment threatens

immediate, serious, or irreparable harm to the
environment.

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
by judicial proceedings.

We believe the Department presently has ample authority
to suspend operations and/or cancel a lease.

(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
acreage offered for lease. In order for the Department
to fully comply with the requirements of NEPA as it has
been interpreted in recent court decisions, a further
increase of this time frame has been necessary.

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
authority of the Secretary. However, the Mineral Leasing Act
states in 30 U.S.C. 187, as a general principle, that leases
shall contain provisions for exercising care in the operation of
properties and for safeguarding the public. Moreover, the National
Environmental Policy Act specifically requires that all other
statutes and regulations be administered and interpreted "to the
fullest extent possible" in accordance with its policies.

(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

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