PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Natural Resources.
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People & committees
Rep. Ansari, Yassamin [D-AZ-3] · D–AZ
Legislative record
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Referred to the House Committee on Natural Resources.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Oct 14, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-10-05 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Stop Orphaned Wells Act would set financial-guarantee requirements for cleanup of covered federal oil and gas leases and establish rules for inactive wells. It would screen lease transfers and require certification based on financial, environmental, and safety standards. Former leaseholders would remain responsible for obligations accruing before an approved transfer. The supplied record establishes introduction and committee referral, not enactment.
This Act may be cited as the Stop Orphaned Wells Act.
The Secretary shall promulgate regulations to require that a financial assurance shall be provided by an operator prior to the commencement of activities on any lease issued under this Act
The Secretary shall promulgate regulations to reduce the inventory of idled wells and temporarily abandoned and shut-in wells on Federal land
A leaseholder may not transfer a covered lease to any person, regardless of whether the lease was issued before, on, or after the date of enactment of this Act, unless the Secretary approves the transfer under paragraph (2).
The Secretary shall certify a recipient responsible party as fit to operate based on— (A) the past compliance of the recipient responsible party, and any covered entity of the recipient responsible party, with Federal, State, and local environmental and safety laws and regulations, including deadlines and requirements related to environmental reclamation, decommissioning, and worker safety; (B) the financial solvency and capacity of the recipient responsible party, and any covered entity of the recipient responsible party, to weather market shocks and fulfill current and projected decommissioning liabilities
the assignor or transferor will continue to be responsible for lease obligations that accrued before the approval date, whether or not those obligations were identified at the time of the transfer
Source snapshot updated 2026-10-14T19:09:32Z. 2026-10-05: Referred to the House Committee on Natural Resources. 2026-10-05: Introduced in House
Section 2 states Congress's rationale: orphaned wells pose health, safety, and environmental risks, and public taxes frequently finance cleanup when responsible parties cannot be identified. It presents operator-financed cleanup as a goal; these findings do not establish the bill's future effects.
(3) (A) orphaned well sites— (i) pose significant public health, safety, and environmental risks; and (ii) should be remediated; (B) there are no identified responsible parties to provide for the remediation of those sites; and (C) as a consequence, Federal and State taxes are frequently used to provide funding for plugging and reclaiming those sites
additional action is needed to ensure that oil and gas operators, and not taxpayers, are financing timely and adequate reclamation activities for future orphaned wells.
Section 3 would define well conditions for the amended Mineral Leasing Act subsection. An idled well would be nonoperational for at least four years with no anticipated beneficial future use. A shut-in well could produce or inject by opening a valve or activating existing equipment; a temporarily abandoned well would need equipment or servicing but might have a future use. The orphaned-well definition expressly concerns a well or well site under an oil or gas lease issued under the Mineral Leasing Act: the well would either lack both an authorized use and a locatable operator, or have an operator unable to plug it or remediate and reclaim its site.
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is amended—
The term idled well means a well— (i) that has been nonoperational for not less than 4 years; and (ii) for which there is no anticipated beneficial future use.
The term shut-in means a non-operational well that is mechanically capable of producing or injecting by opening a valve or activating existing equipment.
The term temporarily abandoned, with respect to the status of a well, means a non-operational well that— (i) is not physically or mechanically capable of production or injection without additional equipment or servicing of the well; but (ii) may have a future beneficial use.
The term orphaned well, with respect to a well or well site under an oil or gas lease issued under this Act, means a well— (i) (I) that is not used for an authorized purpose, such as production, injection, monitoring, or another approved beneficial use; and (II) for which no operator can be located; or (ii) the operator of which is unable— (I) to plug the well; or (II) to remediate and reclaim the well site.
Operators would have to provide financial assurances—financial guarantees backing cleanup—before beginning activities on covered leases. These would cover complete and timely remediation and reclamation of affected land, water, and other resources after operations end. Nationwide guarantees covering all of an operator's U.S. leases would be prohibited, with existing nationwide guarantees replaced within one year after enactment.
The Secretary shall promulgate regulations to require that a financial assurance shall be provided by an operator prior to the commencement of activities on any lease issued under this Act to ensure the complete and timely remediation and reclamation of any land, water, or other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value) adversely affected by lease activities and operations after the abandonment or cessation of oil and gas operations on the lease.
An operator may not provide a financial assurance under clause (i) on a nationwide basis for all leases of the operator in the United States.
With respect to any nationwide financial assurance in effect on the date of enactment of the Stop Orphaned Wells Act, the Secretary shall require that, not later than 1 year after that date of enactment, operators shall post replacement financial assurances in accordance with this Act.
Financial guarantees would have to be sufficient for complete and timely cleanup, with minimums of $200,000 for surface-disturbing activities on an individual oil or gas lease or $650,000 for all an operator's oil and gas leases in a state. If at least half of an operator's wells were idled, counting subsidiary-owned or operated wells, the operator would need a full liability bond covering estimated reclamation and remediation costs for all its operations.
the amount of a financial assurance required under this paragraph shall be the amount determined by the Secretary to be sufficient to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i).
the minimum amount of a financial assurance required under this paragraph shall be not less than, as applicable— (aa) $200,000, in the case of a financial assurance for surface-disturbing activities on an individual oil or gas lease; or (bb) $650,000, in the case of a financial assurance for all oil and gas leases of an operator in a State.
Whenever the total number of idled wells of an operator equals or exceeds 50 percent of the total wells owned or operated by the operator, including wells owned or operated by a subsidiary of the operator, the Secretary shall require from that operator a full liability bond for the estimated reclamation and remediation costs associated with all of the operations of the operator.
Interior would consider higher minimum guarantees for categories of operations with heightened abandonment or environmental risks. Any individual could petition for a higher category minimum. Interior would owe detailed findings and a written decision within 90 days, and would publish an approved increase within 30 days of deciding. Applicable minimums would be adjusted for inflation within one year after enactment and at least annually afterward.
the Secretary shall determine whether higher minimum amounts of financial assurance should be required for any other categories of operations that pose heightened risks of abandonment or environmental harm.
Any individual may, at any time, file a petition with the Secretary, in such a manner and containing such information as the Secretary may require, to establish an increased minimum amount of financial assurance for a specific category of operations.
On receipt of a petition under subitem (AA), the Secretary shall make detailed findings and provide the petitioner a written response and determination not later than 90 days after receipt of the petition.
If the Secretary determines that a specific category of operations requires an increased minimum amount of financial assurance under subitem (BB), the Secretary shall publish in the Federal Register the determination with the increased amount required not later than 30 days after making that determination.
Not later than 1 year after the date of enactment of the Stop Orphaned Wells Act, and not less frequently than annually thereafter, the Secretary shall adjust for inflation the minimum amounts under subclauses (I) and (III), as applicable.
Interior would set guarantees above the minimum when appropriate or necessary for cleanup. It would consider well depth, affected resources, well counts, idled wells on the lease and other leases, operator violations, expected site conditions, cleanup needs, the operator's ability to perform the work, and other relevant factors.
The Secretary shall establish the level of a financial assurance required under this paragraph above the applicable minimum level required under clause (ii) as the Secretary determines to be appropriate or necessary to ensure the complete and timely remediation and reclamation required under subparagraph (A)(i)
(I) The depth of each relevant proposed wellbore. (II) The presence of other resources (including resources with recreation, range, timber, mineral, watershed, fish or wildlife, natural scenic, scientific, or historical value). (III) The number of wells to be drilled on the lease. (IV) The number and percentage of idled wells on— (aa) the applicable lease; and (bb) any other leases held by each applicable operator. (V) Any current or past violations by each operator. (VI) The anticipated condition of the applicable well site and the extent of the remediation and reclamation to be required. (VII) The ability of each operator to fully carry out that remediation and reclamation. (VIII) Such other factors as the Secretary determines to be relevant.
For financial guarantees provided after enactment, Interior would review adequacy at least every five years and before approving a lease assignment, transfer, or operator change. It would have to increase an inadequate guarantee, including an inflation adjustment when appropriate.
With respect to any financial assurance provided after the date of enactment of the Stop Orphaned Wells Act, not less frequently than once every 5 years, and prior to approving an assignment, transfer, or change in operator of a lease, the Secretary shall review the financial assurance
If the Secretary determines under subclause (I) that the amount of a financial assurance is not adequate, the Secretary shall increase the amount of the financial assurance in accordance with subparagraph (B), including making an adjustment for inflation, as appropriate.
Existing bonds below the applicable minimum would have phased deadlines: nationwide bonds would be replaced with individual-lease or statewide bonds within one year after enactment; statewide bonds would be increased or replaced within two years; and individual-lease bonds within three years. The retrospective provision also directs Interior to increase assurances it determines are inadequate, including an inflation adjustment when appropriate.
Operators shall increase or replace all bonds that do not meet the appropriate minimum amount of financial assurance required under subparagraph (B)(ii) not later than— (aa) for nationwide bonds, which shall be replaced with individual lease or Statewide bonds, 1 year after the date of enactment of the Stop Orphaned Wells Act; (bb) for Statewide bonds, 2 years after the date of enactment of the Stop Orphaned Wells Act; and (cc) for individual oil and gas lease bonds, 3 years after the date of enactment of the Stop Orphaned Wells Act.
(II) Authority to increase If the Secretary determines under subclause (I) that the amount of a financial assurance is not adequate, the Secretary shall increase the amount of the financial assurance in accordance with subparagraph (B), including making an adjustment for inflation, as appropriate.
Interior could release all or part of a financial guarantee on request after inspection, if the covered remediation, reclamation, or permanent plugging met applicable standards and all other applicable federal requirements were met. For National Forest System activities, Interior would consult Agriculture before decisions under the financial-guarantee, inactive-well, and noncompliance provisions. Agriculture could require additional guarantees.
On request, and after inspection by the Secretary, the Secretary may release, in whole or in part, the financial assurance required for a lease under this paragraph if the Secretary determines that— (i) the remediation, reclamation, or permanent plugging covered by the financial assurance has been completed in accordance with applicable standards; and (ii) all other applicable Federal requirements have been met.
The Secretary shall consult with the Secretary of Agriculture prior to making any determination under paragraphs (4), (5), or (6) related to activities on National Forest System land.
Nothing in this section prevents the Secretary of Agriculture from requiring additional financial assurances with respect to activities on National Forest System land.
Interior would issue rules to reduce idled, temporarily abandoned, and shut-in wells on federal land. It would review and could approve requests for temporary-abandonment designations lasting more than 30 consecutive days. Approved designations would last one year. Operators could request unlimited further one-year designations, subject to approval, but could submit renewal requests no earlier than 10 days before expiration. Requests would require detailed justification, verification of the well's mechanical integrity, and isolation of its completed intervals before abandonment.
The Secretary shall promulgate regulations to reduce the inventory of idled wells and temporarily abandoned and shut-in wells on Federal land, including by enhancing oversight of wells that have been temporarily abandoned or shut-in.
The Secretary shall review and may approve a request from an operator to designate a well as temporarily abandoned for a period greater than 30 consecutive days.
A well designated as temporarily abandoned under subclause (I) shall retain that designation for a 1-year period, subject to renewal under item (bb).
Not earlier than 10 days before a designation under subclause (I) is set to expire, an operator may submit to the Secretary a subsequent request to designate the well for another 1-year period as temporarily abandoned.
There is no limit on the number of subsequent requests an operator may submit under this item for approval by the Secretary under subclause (I).
In submitting a request under subclause (I), an operator shall— (aa) include— (AA) adequate and detailed justification for temporarily abandoning the well; and (BB) verification of the mechanical integrity of the well; and (bb) isolate the completed intervals prior to temporarily abandoning the well.
Within four years of temporary abandonment, an operator would have to complete required reclamation unless a delay was approved, resume production in paying quantities or begin injection or disposal, or submit a detailed plan and timeline for future beneficial use. Interior would grant a one-year delay after finding a legitimate future use, conditioned on confirmation of that use and verifiable progress toward it.
Not later than 4 years after the temporary abandonment of a well under subclause (I), the operator shall— (AA) fully complete reclamation, as required by applicable requirements, unless the Secretary has approved a request to delay under item (bb)(BB); (BB) resume production in paying quantities or commence using the well for injection or disposal; or (CC) submit to the Secretary a detailed plan and timeline for future beneficial use of the well.
On submission of a plan and timeline to the Secretary under item (aa)(CC), the Secretary shall— (AA) make a determination regarding whether there is a legitimate future beneficial use of the well; and (BB) subject to a determination that there is a legitimate future beneficial use of the well under subitem (AA), grant the operator a 1-year delay, subject to the condition that the operator confirms the future beneficial use of the well and is making verifiable progress on returning the well to that beneficial use.
For shut-in wells, operators would verify mechanical integrity and continued ability to produce in paying quantities within three years of designation. Within four years after the well was shut in, they would have to permanently abandon it unless a delay was approved, resume production in paying quantities, or submit a future-use plan and timeline. Interior would grant a one-year delay after finding a legitimate future use, conditioned on confirmation of that use and verifiable progress toward it.
Not later than 3 years after a well is designated as shut-in, the operator shall submit to the Secretary a verification of the mechanical integrity of the well and confirm that the well remains capable of producing in paying quantities.
Not later than 4 years after a well shut-in, the operator shall— (AA) permanently abandon the shut-in well, unless the Secretary has approved a request to delay under item (bb)(BB); (BB) resume production in paying quantities; or (CC) submit to the Secretary a detailed plan and timeline for future beneficial use of the well.
subject to a determination that there is a legitimate future beneficial use of the well under subitem (AA), grant the operator a 1-year delay, subject to the condition that the operator confirms the future beneficial use of the well and is making verifiable progress on returning the well to that beneficial use.
Interior would annually update and publicly publish a database of idled, temporarily abandoned, and shut-in wells under its jurisdiction.
The Secretary shall annually update and publicly publish a database of idled wells and temporarily abandoned and shut-in wells under the jurisdiction of the Secretary.
Interior would be barred from issuing leases or approving transfers or assignments to an operator or entity that Interior determined had materially failed or refused to comply with applicable reclamation requirements or other standards established under the amended section on another lease. The restriction would also reach its subsidiaries, affiliates, and persons under its control or common control. Section 3 would revise the notice-and-opportunity-to-comply language to refer expressly to an operator or other entity. It would likewise substitute operator-or-other-entity wording in the following sentence and label it 'Issuance of lease after compliance.' The full retained notice and post-compliance language is not supplied, so its complete operation cannot be determined here.
The Secretary shall not issue, or approve the transfer or assignment of, any lease under this section to any operator or other entity, or any subsidiary, affiliate, or person controlled by or under common control of that operator or other entity, during any period in which, as determined by the Secretary, the operator or other entity has failed or refused to comply in any material respect with a reclamation requirement or other standard established under this section that is applicable to any other lease of the operator or other entity.
(2) in the fifth sentence, by striking Prior to making such determination with respect to any such entity the concerned Secretary shall provide such entity with and inserting the following: (B) Requirement for notice and opportunity to comply Before making a determination under subparagraph (A) with respect to any operator or other entity, the Secretary shall provide to the operator or other entity
(1) in the sixth sentence— (A) by striking such entity and inserting the operator or other entity; and (B) by striking Once the entity and inserting the following: (C) Issuance of lease after compliance Once the operator or other entity
Section 3 would define 'operator' to include an individual or entity, including a lessee or operating-rights owner, that has given a relevant authority a written statement accepting responsibility for all or part of an operation. It would define 'Secretary' as the Secretary of the Interior. Its textual changes to the existing activity-regulation and permit sentences expressly name the Secretary of Agriculture for National Forest System land and add an 'Analysis and approval required' heading before 'No permit.' Because the retained statutory language is absent, these changes alone do not establish the full regulatory or permit requirements.
The term operator, with respect to an oil or gas operation, means any individual or entity (including a lessee or operating rights owner) that has provided to a relevant authority a written statement that the individual or entity is responsible for the operation (or any portion of the operation).
The term Secretary means the Secretary of the Interior.
(5) in the second sentence— (A) by striking Secretary concerned and inserting Secretary, or the Secretary of Agriculture with respect to National Forest System land,; and (B) by striking No permit and inserting the following: (3) Analysis and approval required No permit
(2) Regulation of activities The Secretary, or the Secretary of Agriculture with respect to National Forest System land,
Section 4 would require regulations within 60 days after enactment addressing lessees' and sublessees' well-plugging and facility-removal obligations. They would remain responsible for lease obligations until Interior approved an assignment of record title or transfer of operating rights. After approval, the transferring party would remain responsible for obligations accruing before approval, even if then unidentified, including compensatory royalties for drainage, plugging drilled wells, and removing facilities installed or used before the assignment or transfer's effective date.
Not later than 60 days after the date of enactment of the Stop Orphaned Wells Act, the Secretary shall promulgate regulations addressing lessee and sublessee responsibility and liability for performing all obligations relating to plugging a well drilled, and removing a facility installed, pursuant to— (A) a lease issued under this Act; and (B) other applicable law.
the lessee or sublessee, as applicable, shall remain responsible for performing all obligations under the lease until the date that the Secretary approves an assignment of record title interest or transfer of operating rights
after the Secretary approves the assignment or transfer under subparagraph (A), the assignor or transferor will continue to be responsible for lease obligations that accrued before the approval date, whether or not those obligations were identified at the time of the transfer, including— (i) paying compensatory royalties for drainage; (ii) responsibility for plugging drilled wells; and (iii) removing facilities installed or used before the effective date of the assignment or transfer.
Section 5 would require Interior approval before transferring an oil or gas lease, or an interest in one, issued under either the Mineral Leasing Act or the Mineral Leasing Act for Acquired Lands. This would apply regardless of when the lease was issued.
The term covered lease means— (A) an oil or gas lease issued pursuant to the Mineral Leasing Act (30 U.S.C. 181 et seq.), and any interest in that lease; and (B) an oil or gas lease issued pursuant to the Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), and any interest in that lease.
A leaseholder may not transfer a covered lease to any person, regardless of whether the lease was issued before, on, or after the date of enactment of this Act, unless the Secretary approves the transfer under paragraph (2).
Transfer applications would need a financial risk assessment of the proposed lessee, including its financial assurances, credit rating or lack of one, and bonds. They would also need complete lists of its oil and gas leases and wells, well operating status, past and ongoing legal violations involving its oil and gas operations, and any additional information Interior required.
Prior to transferring a covered lease, a leaseholder shall submit to the Secretary an application containing— (i) a financial risk assessment of the proposed lessee, including an assessment of the adequacy of the proposed financial assurances, credit rating (or lack thereof), and bonding of the lessee; (ii) a complete list of oil and gas leases and wells owned or operated by the proposed lessee, along with the operational status of the wells, including whether any of the wells are idled wells, temporarily abandoned, or shut-in (as those terms are defined in section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g))); (iii) a complete list of past and ongoing violations of Federal, State, or local laws and regulations applicable to any of the oil and gas operations of the proposed lessee; and (iv) any other information that the Secretary may require.
Interior would immediately post a proposed transfer online, invite public comments for at least 30 days, and approve, conditionally approve, or deny the application within 90 days of receipt, subject to the additional-bonding and mandatory-denial provisions. It would publish its reasons, including whether the decision relied on information from the public. Within five days of deciding, it would notify the leaseholder and post the decision.
After receiving an application submitted under subparagraph (A), the Secretary shall, subject to subparagraphs (D) and (E)— (i) immediately post the proposed transfer on the website of the Department of the Interior; (ii) invite public comment on the proposed transfer for not less than 30 days; and (iii) not later than 90 days after receiving the application— (I) approve, conditionally approve, or deny that application; and (II) publicly post on the website of the Department of the Interior the reasoning for the approval, conditional approval, or denial, to include whether the decision was based on information provided by the public under clause (ii).
Not later than 5 days after making a decision under subparagraph (B), the Secretary shall— (i) notify the leaseholder of that decision; and (ii) post the decision on the website of the Department of the Interior.
Section 5 directs Interior to conditionally approve a transfer on the leaseholder obtaining additional bonds to offset financial risks identified in review. Separate mandatory-denial rules would still apply. The text does not fully explain how the conditional-approval command interacts with the broader authority to approve or deny applications.
The Secretary shall conditionally approve an application under subparagraph (B), subject to the condition that the leaseholder acquires additional bonding to offset any financial risks identified during the review of the application by the Secretary.
The Secretary shall deny an application under subparagraph (B) if the proposed lessee—
approve, conditionally approve, or deny that application
Interior would have to deny a transfer if the proposed lessee had filed a federal bankruptcy petition, failed the specified investment-grade credit-rating requirement applying to it and any parent company, or had no record of safe and compliant oil or gas production operations during the preceding five years. The rating must come from a nationally recognized statistical rating organization as defined in referenced law; that definition is not supplied.
The Secretary shall deny an application under subparagraph (B) if the proposed lessee— (i) has filed a petition for bankruptcy under title 11, United States Code; (ii) does not, along with any parent company of the proposed lessee, possess an investment grade credit rating from a nationally recognized statistical rating organization (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))); (iii) has no prior record of safe and compliant oil or gas production operations within the preceding 5 years
A proposed lessee that was a subsidiary would also face denial if it failed to demonstrate a debt-to-equity ratio below 2 to 1. An exception would apply to that ground if its parent company unconditionally guaranteed all liabilities under the covered lease.
(iv) is a subsidiary company of a parent company and fails to demonstrate a debt-to-equity ratio of less than 2 to 1, unless the parent company provides an unconditional corporate guarantee for all liabilities under the covered lease.
Section 6 would require fitness-to-operate certification before Interior issued, extended, or approved transfer of covered oil and gas leases, rights-of-way, permits, or other authorizations on federal land. This requirement would start when Interior issued or revised implementing regulations, which would be due within one year after enactment. Those regulations would establish certification standards and a process for requesting certification.
Beginning on the date on which the Secretary issues or revises regulations under subsection (c)(4), the Secretary may not issue, extend the term of, or approve the transfer of, a lease, right-of-way, permit, or other authorization for oil or gas exploration, development, or production on Federal land subject to this Act with respect to a recipient responsible party, unless the recipient responsible party is certified as fit to operate in accordance with subsection (c).
Not later than 1 year after the date of enactment of the Stop Orphaned Wells Act, the Secretary shall promulgate or revise regulations— (A) to establish standards, in accordance with this section, that the Secretary shall use to determine whether to certify a recipient responsible party as fit to operate; (B) to establish a process for recipient responsible parties to request such certification; and (C) to carry out any other requirements of this section.
Certification would consider environmental and safety compliance, financial solvency and capacity to withstand market shocks and fulfill current and projected decommissioning liabilities, and other criteria Interior determined appropriate. Review would cover the applicant and specified connected entities: parents, subsidiaries, contractors constructing, developing, maintaining, or operating facilities on covered federal land, entities sharing officers, directors, or key managers with parents or subsidiaries, and predecessors of parents or subsidiaries.
The term covered entity, with respect to a recipient responsible party, means— (A) any parent company of the recipient responsible party; (B) any subsidiary company of the recipient responsible party; (C) any entity with which the recipient responsible party enters into a contract to construct, develop, maintain, or operate a facility on Federal land subject to this Act; and (D) any entity that— (i) shares officers, directors, or key managerial personnel with any entity described in subparagraph (A) or (B); or (ii) is a predecessor to any entity described in subparagraph (A) or (B).
The Secretary shall certify a recipient responsible party as fit to operate based on— (A) the past compliance of the recipient responsible party, and any covered entity of the recipient responsible party, with Federal, State, and local environmental and safety laws and regulations, including deadlines and requirements related to environmental reclamation, decommissioning, and worker safety; (B) the financial solvency and capacity of the recipient responsible party, and any covered entity of the recipient responsible party, to weather market shocks and fulfill current and projected decommissioning liabilities; and (C) any other criteria with respect to the recipient responsible party, and any covered entity of the recipient responsible party, as the Secretary determines appropriate.
For these fitness standards, decommissioning would mean ending operations, permanently plugging wells, monitoring whether shutdown and plugging remain safe and effective, and restoring the area to the environmental reclamation requirements of Interior and other federal agencies with jurisdiction.
The term decommissioning, with respect to oil and gas infrastructure on Federal land subject to this Act, means— (A) ending an oil and gas operation; (B) permanently plugging a well; (C) monitoring the efficacy of activities to end an oil and gas operation, including monitoring the safety and soundness of a plugged well; and (D) returning the area subject to the lease, right-of-way, permit, or other authorization to a condition that meets the environmental reclamation requirements of the Department of the Interior and any other Federal agency that has jurisdiction over the oil and gas operation.
Holders of covered authorizations issued, extended, or transferred after the fitness regulations were issued or revised would have to maintain certification. Interior would assess compliance annually. Noncompliance would require suspension of certification and at least one specified penalty until compliance was restored.
A certification that the holder of a lease, right-of-way, permit, or other authorization for oil or gas exploration, development, or production on Federal land subject to this Act issued, extended, or transferred after the date on which the Secretary issues or revises regulations under paragraph (4) is fit to operate shall be maintained in accordance with subparagraph (B).
The Secretary shall annually assess whether each holder of a lease, right-of-way, permit, or other authorization described in subparagraph (A) remains in compliance with standards established pursuant to paragraph (4).
the Secretary shall suspend the certification and impose 1 or more of the following penalties until that holder complies with the standards
Available penalties would include suspending the authorization, fines or other civil penalties, supplemental guarantees equal to total expected decommissioning costs, or an order to begin decommissioning and submit a plan for approval. The last option would also require notice to previous holders to commence joint and several liability proceedings. The referenced suspension and decommissioning-plan provisions are not supplied, so their procedures and the resulting liability cannot be fully described from this text alone.
(I) Suspend the applicable lease, right-of-way, permit, or other authorization pursuant to section 5(a)(1). (II) Issue a fine or other civil penalties. (III) Require supplemental financial assurance in an amount equal to the total expected cost of decommissioning, as applicable. (IV) Issue an order to the holder of the lease, right-of-way, permit, or other authorization to commence decommissioning, including a requirement that the entity develop and submit a decommissioning plan pursuant to section 3162.3–4 of title 43, Code of Federal Regulations (or a successor regulation), for approval by the Secretary, and issue a notice to any previous holders of the lease, right-of-way, permit, or other authorization to commence joint and several liability proceedings.
Interior would report to Congress within one year after issuing or revising the fitness regulations and annually afterward. Reports would summarize assessments and identify noncompliant holders of active or inactive authorizations, the standards they failed by holder and authorization, and enforcement actions.
Not later than 1 year after the Secretary issues or revises regulations under subsection (c)(4), and annually thereafter, the Secretary shall submit to Congress a report that includes a summary of the most recent assessments made under subsection (c)(3)(B), including a list of— (1) each person that holds an active or inactive lease, right-of-way, permit, or other authorization for oil or gas exploration, development, or production on Federal land subject to this Act that failed to meet any of the standards established pursuant to subsection (c)(4); (2) the specific standards for which the person is or was non-compliant, disaggregated by— (A) person; and (B) lease, right-of-way, permit, and other authorizations; and (3) enforcement actions taken by the Secretary against each person identified under paragraph (1).
Section 6 would authorize $30 million for each fiscal year from 2028 through 2032 to carry out the fitness-to-operate section. This authorizes future appropriations; it does not itself provide the money. The stated fiscal-year limit applies to the funding authorization, without specifying an end date for the standards.
There is authorized to be appropriated to the Secretary to carry out this section $30,000,000 for each of fiscal years 2028 through 2032.
The supplied official-actions snapshot, updated October 14, 2026, records introduction in the House and referral to the House Committee on Natural Resources on October 5, 2026. It does not establish later legislative action or enactment.
Source snapshot updated 2026-10-14T19:09:32Z. 2026-10-05: Referred to the House Committee on Natural Resources. 2026-10-05: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-10-05. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy rider attached to appropriations was identified after reviewing the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials, or establish any amendment attachment history.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular recipient or place was identified after reviewing the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials. Missing disclosures and committee materials limit any broader formal-earmark assessment.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains a narrow conditional exception to financial screening. This classification does not establish improper favoritism.
Subsidiary companies seeking a lease transfer could avoid denial for failing to demonstrate a debt-to-equity ratio below 2 to 1 if their parent unconditionally guaranteed all liabilities under the lease. This provides a narrow alternative within the bill's financial screening policy; it would not expressly waive the other mandatory-denial grounds.
The Secretary shall deny an application under subparagraph (B) if the proposed lessee— (i) has filed a petition for bankruptcy under title 11, United States Code; (ii) does not, along with any parent company of the proposed lessee, possess an investment grade credit rating from a nationally recognized statistical rating organization (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))); (iii) has no prior record of safe and compliant oil or gas production operations within the preceding 5 years; or (iv) is a subsidiary company of a parent company and fails to demonstrate a debt-to-equity ratio of less than 2 to 1, unless the parent company provides an unconditional corporate guarantee for all liabilities under the covered lease.
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