Rule2026-01655

Oil and Gas Resources

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
January 28, 2026
Effective
February 27, 2026

Issuing agencies

Agriculture DepartmentForest Service

Abstract

The U.S. Department of Agriculture (USDA or Department) is finalizing revisions to its regulations governing Federal oil and gas resources within the National Forest System (NFS). The Department is making these revisions to update and modernize its existing regulations. In addition, conforming technical amendments to other parts of the Code of Federal Regulations (CFR) affected by this rule are also being updated. The regulations revise the process for analyzing whether the USDA, Forest Service will consent to making certain lands available for oil and gas leasing by the Bureau of Land Management (BLM). The regulations also clarify requirements for conducting lease operations and revise procedures concerning monitoring operator compliance with all applicable terms and conditions of leasing. The revised regulations will apply to operations on both existing and future leases.

Full Text

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<title>Federal Register, Volume 91 Issue 18 (Wednesday, January 28, 2026)</title>
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[Federal Register Volume 91, Number 18 (Wednesday, January 28, 2026)]
[Rules and Regulations]
[Pages 3643-3665]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01655]


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DEPARTMENT OF AGRICULTURE

Forest Service

36 CFR Parts 214, 228, and 261

RIN 0596-AD33


Oil and Gas Resources

AGENCY: Forest Service, Agriculture (USDA).

ACTION: Final rule.

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SUMMARY: The U.S. Department of Agriculture (USDA or Department) is 
finalizing revisions to its regulations governing Federal oil and gas 
resources within the National Forest System (NFS). The Department is 
making these revisions to update and modernize its existing 
regulations. In addition, conforming technical amendments to other 
parts of the Code of Federal Regulations (CFR) affected by this rule 
are also being updated. The regulations revise the process for 
analyzing whether the USDA, Forest Service will consent to making 
certain lands available for oil and gas leasing by the Bureau of Land 
Management (BLM). The regulations also clarify requirements for 
conducting lease operations and revise procedures concerning monitoring 
operator compliance with all applicable terms and conditions of 
leasing. The revised regulations will apply to operations on both 
existing and future leases.

DATES: This rule is effective February 27, 2026.

ADDRESSES: Supplementary documents prepared in conjunction with the 
preparation of this rule, including a regulatory impact analysis and 
environmental assessment, and the public comments received on the rule 
are available at <a href="http://www.regulations.gov">www.regulations.gov</a> at Docket No. FS-2020-0007.

FOR FURTHER INFORMATION CONTACT: Jeffrey Salow, Solid Leasable Minerals 
and Geothermal Resource Specialist, Lands, Minerals and Geology at 435-
636-3596 or by email at <a href="/cdn-cgi/l/email-protection#cea4aba8a8bcabb7e0bdafa2a1b98ebbbdaaafe0a9a1b8"><span class="__cf_email__" data-cfemail="91fbf4f7f7e3f4e8bfe2f0fdfee6d1e4e2f5f0bff6fee7">[email&#160;protected]</span></a>. Individuals who are 
deaf, hard of hearing, or have a speech disability may call 711 to 
reach the Telecommunications Relay Service and then provide the phone 
number of the person named as a point of contact for further 
information.

SUPPLEMENTARY INFORMATION:

Background

    The Forest Service (Agency) is revising its Oil and Gas Resources 
(36 CFR part 228, subpart E) regulations. Acting under established 
legal authorities, the Forest Service regulates surface disturbing 
activities conducted pursuant to a Federal oil and gas lease on 
national forests and grasslands. The existing regulations were first 
promulgated in 1990, with only a minor modification in 2007. Updating 
the regulations affords an opportunity to modernize existing procedures 
to streamline processes and promote efficiency. The Forest Service 
anticipates that updated interpretive guidance for implementing the 
final regulations will be developed in 2025 and set out in the Agency's 
directive system in 2026.
    On June 16, 2023, the BLM promulgated a final rule placing the 
current content of Onshore Order 1, which provided requirements for the 
approval of oil and gas operations, into its regulations at 43 CFR part 
3170, subpart 3171--Approval of Operations. The Office of the Federal 
Register had informed the BLM that it could no longer revise the 
existing Onshore Orders unless the agency codified the Orders in the 
Code of Federal Regulations. While this action has no substantive 
effect on this final rule, they do necessitate citation changes where 
Onshore Order 1 was used in the proposed Forest Service oil and gas 
rule and removing section 228.102(a) (Issuance of Onshore Orders) as 
later described under the heading ``Section-by-Section Description of 
the Final Rule Changes from Existing and Proposed Rules.''
    This rulemaking applies to only Federal oil and gas resources on 
lands managed by the National Forest System, and it does not affect 
nonfederal (such as reserved and outstanding private) oil and gas 
resources.
    The rule will contribute to increasing efficiencies in evaluating 
and managing surface disturbing activities conducted pursuant to 
Federal oil and gas leases and will help the Forest Service achieve its 
strategic goal of delivering benefits to the public. The Agency is 
revising its existing regulations to clarify internal processes related 
to evaluating and approving oil and gas leasing operations, clarifying 
oil and gas operators' responsibility to protect natural resources and 
the environment, clarifying the Agency's procedures regarding 
inspections and compliance, and updating material noncompliance 
procedures to reflect existing Agency practices and better reflect 
requirements of law. The changes to 36 CFR part 228 require minor 
conforming changes to regulations at 36 CFR parts 214 (Post Decisional 
Administrative Review Process for Occupancy or Use of National Forest 
System Lands and Resources) and 261 (Prohibitions).
    The changes finalized in this rule will not materially alter the 
basic responsibilities of either the Forest Service or oil and gas 
operators. The changes aim to clarify procedures, reduce redundancy, 
and promote harmonious interaction with other existing rules. For 
example, one notable change aims to simplify the administrative process 
the Agency follows to determine which lands are available for leasing, 
reduces the amount of time allotted for it to take the Agency to make 
these decisions while at the same time maintaining all environmental 
and human health and safety protections of the current rule.
    The rule also clarifies the procedures that the Forest Service 
follows to require an operator to take corrective actions if operations 
are found to be out of

[[Page 3644]]

compliance with the approved surface use plan of operations, including 
establishing a formal option to refer instances of continued 
noncompliance to the BLM. The rule would retain operator requirements 
for emergency abatement when the Agency acts to remedy emergency 
situations such as fires or spills to which the operator cannot or will 
not respond. The rule would also revise the Agency's material 
noncompliance proceedings by streamlining the process and reflecting 
consequences defined in the Mineral Leasing Act (30 U.S.C. 226(g)). 
These changes would simplify the compliance process in Agency 
inspections, resulting in better management and protection of surface 
resources.
    The rule will promote coordination and efficiency between the 
Forest Service and the BLM. The BLM is the Federal agency primarily 
responsible for managing federally owned minerals, including minerals 
underlying lands managed by the Forest Service. The Forest Service and 
the BLM jointly manage leasing and operations when oil and gas 
activities involve National Forest System lands, and oftentimes project 
proponents operate on lands managed by both agencies. Generally 
speaking, the Secretary of the Interior has the final decision whether 
to issue oil and gas leases on Federal lands, including National Forest 
System lands, subject to Forest Service consent.
    Congress has long recognized the importance of mineral resources 
located on lands within the National Forest System and has repeatedly 
made special provisions for the administration and development of these 
minerals.
    Congress enacted the Mineral Leasing Act of 1920 (30 U.S.C. 181, et 
seq.), directing that the development of Federal oil and gas resources 
would be subject to a leasing system under the direction of the 
Department of the Interior. Initially, the Department of Interior did 
not have to obtain the consent of the Forest Service to issue oil and 
gas leases on National Forest System lands, but that was changed with 
the Mineral Leasing Act for Acquired Lands of 1947 (30 U.S.C. 351 et 
seq.) and the Federal Onshore Oil and Gas Leasing Reform Act of 1987 
(Pub. L. 100-203, the Reform Act), which directed that the Department 
of the Interior may not issue any oil and gas lease on National Forest 
System lands without the ``consent of'' or ``over the objection of'' 
the USDA, respectively. The Mineral Leasing Act for Acquired Lands 
authorized the Secretary of the Interior to lease oil and gas deposits 
on acquired National Forest System lands ``under the same conditions as 
contained in the leasing provisions of the mineral leasing laws'' upon 
obtaining the consent of the Secretary of Agriculture (30 U.S.C. 352). 
The Act also required the Secretary of the Interior to include in such 
leases any conditions prescribed by the Secretary of Agriculture to 
``ensure the adequate utilization of the lands for the primary purposes 
for which they have been acquired or are being administered.'' The 1987 
Reform Act also granted the USDA express authority to regulate all 
surface-disturbing activities conducted pursuant to any oil and gas 
lease on lands managed by the Forest Service. The Mineral Leasing Act, 
as amended, also specifies requirements for inspections and compliance, 
the consequences of noncompliance, and for approvals to operate on 
National Forest System lands.
    In 2005, Congress directed Federal agencies to streamline and 
reduce timeframes for processing proposals to lease and conduct oil and 
gas operations on Federal lands. See Energy Policy Act of 2005 (Pub. L. 
109-58), subtitle F, sections 361, 362, and 390. The BLM is principally 
responsible for tracking applications for operations on Federal oil and 
gas leases and does so through a database called the Automated Fluid 
Minerals Support System (AFMSS II). The Forest Service has access to 
AFMSS II to track surface use plans of operations and master surface 
use plans of operations.
    In 2007, the Forest Service and the BLM jointly established 
coordination procedures for the review and analysis of permits to 
drill, including the surface use plan of operation portion in Onshore 
Order 1, now codified as 43 CFR part 3170, subpart 3171.
    There are currently 5,154 Federal oil and gas leases covering about 
3.8 million acres (about 2 percent) of National Forest System lands. 
Approximately 2,850 of these leases, covering 1.8 million acres across 
39 national forests and grasslands, have producing Federal oil or gas 
wells; however, the footprint of actual operations comprises a small 
percentage (less than 10 percent) of that area. Operating on these 
leases are 2,901 wells, which in 2022 produced over 48 million barrels 
of oils (1.1 percent of the Nation's total) and over 167 billion cubic 
feet of natural gas (0.4 percent of the Nation's total). The production 
was valued at over $4.5 billion and returned approximately $565 million 
in royalties to the U.S. Treasury.
    It is in the national interest to promote clean and safe 
development of our Nation's vast energy resources while preserving the 
surface resources of national forests and grasslands. To that end, the 
Forest Service seeks to facilitate the orderly development of Federal 
oil and gas resources in an environmentally sound manner. The final 
regulatory revisions are consistent with those goals.

Advance Notice of Proposed Rulemaking, Proposed Rule, and Public 
Comment Period

    On September 13, 2018, the USDA issued an advance notice of 
proposed rulemaking (ANPR) in the Federal Register (83 FR 46458), 
inviting public input on key issues regarding the implementation of 
existing oil and gas regulations and other areas of concern. The public 
comment period occurred from September 13 to October 15, 2018, and 
served as the initial scoping period for the environmental analysis. 
The Forest Service received 91 responses, representing a mix of general 
opposition and general support for the proposed rulemaking.
    Stated reasons for general opposition to the rule include the 
destruction of national forests and natural resources for financial or 
political interests; inadequate protection of human and environmental 
health; adverse impacts on recreation opportunities and tourism; and 
unsustainable reliance on fossil fuels.
    Stated reasons for general support of the rule include the 
generation of revenue, large existing demands for oil and gas, 
decreases in regulatory burden on the oil and gas industry, promotion 
of domestic energy production, the creation of a simplified process 
leading to quicker leasing decisions, and the elimination of 
duplication with the BLM.
    Public comments received in response to the ANPR can be found on 
the internet at <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Search for Docket ID: FS-
2018-0053. Responses to the ANPR were considered during preparation of 
the proposed rule, which was published on September 1, 2020 (FR Doc. 
2020-18518) and opened a 60-day comment period. The public submitted 
nearly 80,000 comments during the 60-day comment period. Approximately 
99.5 percent (79,180) of the comments received were form letters 
collected by conservation organizations. Only 439 unique, substantive 
comments or letters were submitted. These comments were from 
unaffiliated private citizens, State agencies, counties, Alaska Native 
Corporations, Tribal agencies, oil and gas owners and operators, 
environmental groups, and business associations.
    All the form letters and most of the unique comments expressed 
opposition

[[Page 3645]]

at some level, whether to oil and gas development in general or to oil 
and gas development on National Forest System lands in particular, or 
to the proposed revisions to 36 CFR part 228 Subpart E or to the 
rulemaking process itself.
    Supportive comments generally applauded the Forest Service's 
efforts to improve clarity and efficiency in the leasing analysis and 
consent decision procedures, reduce redundancies in permitting, improve 
coordination with the BLM, and update procedures addressing 
noncompliance situations. Some supportive comments suggested specific 
edits to regulation text to help improve the efficiency of the process 
or the clarity of regulatory intent.
    A detailed discussion of comments and our responses is contained in 
the ``Summary of and Response to Public Comments'' section.

Summary of Final Rule

    The final rule's revisions are based on Agency experience 
implementing existing regulations and are intended to better align 
these regulations with established joint Forest Service and the BLM 
Onshore Order 1 (now 43 CFR part 3170, subpart 3171) and improve Agency 
coordination for implementing the applicable components of the BLM's 
regulations (43 CFR part 3100).
    The rule clarifies and streamlines the processes for identifying 
National Forest System lands that are available for leasing, while 
emphasizing an operator's responsibilities for compliance and 
clarifying management steps that the Forest Service will take when 
operators do not comply with Forest Service regulations. The rule also 
better aligns Forest Service regulations with those of the BLM 
regarding sundry notices and instances of bonding. The rule clarifies 
the applicability of the existing procedures in 43 CFR part 3170, 
subpart 3171, by which the BLM and the Forest Service jointly respond 
to operating proposals.
    The rule relocates the contents of section 228.110, 
Indemnification, in the current regulations to section 228.105, 
Responsibilities of Operators, thereby reducing the number of sections 
by one. The rule also reorders, renumbers, and retitles various 
sections that would result in the following organization of the 
regulations:

Section 228.100 Scope and Applicability
Section 228.101 Definitions
Section 228.102 Issuance of Notices to Lessees and Operators
Section 228.103 Leasing Analysis and Consent Decision
Section 228.104 Consideration of Requests To Waive, Except, or Modify 
Lease Stipulations
Section 228.105 Responsibilities of Operators
Section 228.106 Operator's Submission of Surface Use Plan of Operations
Section 228.107 Review and Approval of Surface Use Plan of Operations
Section 228.108 Sundry Notices
Section 228.109 Bonds
Section 228.110 Temporary Cessation of Operations
Section 228.111 Compliance and Inspection
Section 228.112 Notice of Noncompliance
Section 228.113 Material Noncompliance
Section 228.114 Posting Requirements
Section 228.115 Information Collection Requirements

Section-by-Section Description of the Final Rule Changes From Existing 
and Proposed Rules

    The paragraphs below provide a section-by-section description of 
the final rule, including a description of changes made from the 
proposed rule. The ``Summary of and Response to Public Comments'' 
section of this preamble provides further explanation for changes that 
are or are not included in the final rule.
Section 228.100 Scope and Applicability
    The final rule does not change language from the proposed rule 
except for reference to 43 CFR part 3170, subpart 3171 instead of 
Onshore Order 1. Compared to the existing regulation, the changes or 
additions to the section serve to improve readability and clarity and 
provide specific reference to the applicability of the BLM regulations 
at 43 CFR parts 3160 and 3171.
Section 228.101 Definitions
    One definition was revised for the final rule. For the definition 
of ``conditions of approval,'' the final rule modified language in the 
proposed definition from ``site-specific requirements that may be 
included with the approval of a surface use plan of operations that may 
limit or modify the specific activities covered in the plan'' to 
``site-specific requirements shall be included with the approval of a 
surface use plan of operations where necessary to limit or modify the 
specific activities covered in the plan.'' The change is made in 
response to a public comment that stated the use of ``may'' implies 
arbitrary discretion in the application of conditions of approval.
    Compared to the existing regulation, the final rule adds the 
following terms and their definitions to provide functionality to the 
regulation's text and improve consistency with the BLM terminology: 
acquired lands; agreement; conditions of approval; consent; 
infrastructure or facilities; final abandonment notice; lease; master 
development plan; master surface use plan of operations; material 
noncompliance; Reasonably Foreseeable Development Scenario; 
stipulation; sundry notice; and waiver, exception, or modification.
    The final rule retains as is or with minor wording changes to 
improve clarity the following definitions: authorized Forest Service 
officer; compliance officer; lessee; National Forest System lands; 
Notices to Lessees and Operators; operations; operator; substantial 
modification (described in the definition for waiver, exception, or 
modification); and surface use plan of operations.
    The final rule removes the definitions of the following terms 
because they are redundant, lack applicability to the rule, or do not 
merit a stand-alone definition due to limited use or no special meaning 
beyond the plain English usage within the regulation: leasehold; 
onshore oil and gas order; operating right; operating rights owner; 
person; transfer; and transferee.
    These changes are expected to benefit the regulated community, the 
Forest Service, and the BLM with a more harmonious set of definitions 
between the agencies' regulations.
Section 228.102 Issuance of Onshore Orders and Notices to Lessees and 
Operators
    The final rule removes section 228.102(a)--Onshore Oil and Gas 
Orders and renames the title to Issuance of Notices to Lessees and 
Operators. The use of Onshore Orders has been discontinued based on the 
advice and recommendations of the Office of the Federal Register to the 
Department of the Interior and USDA.
    Compared to the existing regulation, the final rule moves the 
content of the existing section 228.102 regarding leasing analysis and 
decisions to section 228.103. The rule moves the requirements for 
Notices to Lessees and Operators from section 228.105 in the existing 
regulations to paragraph (b) of this section. The rule removes the 
procedure for the Chief of the Forest Service to issue onshore oil and 
gas orders for the same reasons described above regarding Onshore 
Orders. The final rule makes editorial changes to the

[[Page 3646]]

text for clarity and readability that were included in the proposed 
rule.
Section 228.103 Leasing Analysis and Consent Decision
    The final rule carries forward the same language as the proposed 
rule for sections 228.103(a) through (d). The final rule removes 
section 228.103(e) titled Withdrawing Leasing Consent and adds a new 
section 228.103(e) titled Review of Leasing Consent Decision for 
Specific Lands, with the review leading to either a confirmation of the 
leasing consent decision or a withdrawal of consent (based on new 
information necessitating further analysis, for example). Additional 
language directs the Forest Service to provide notification to the BLM 
with the results of the review confirming the leasing consent decision 
for specific lands or withdrawing its leasing consent for specific 
parcels. If the consent is withdrawn, the notification will describe 
the reasons for the withdrawal and provide an anticipated course of 
action.
    The rule removes reference to the former post-decisional appeal 
process governing plan and project decisions (36 CFR part 217) because 
it has been rendered obsolete by subsequent statutory enactments and 
regulations. The change remedies the outdated reference and provides 
direction that 36 CFR part 219, subpart B, will operate as the sole 
process by which the public may file objections concerning the leasing 
analysis and consent decision.
    The final rule streamlines the approach that the Agency follows to 
identify lands open to leasing and stipulations to protect surface 
resources on lands open to leasing by establishing that the Forest 
Service has one decision point, that being consent to leasing made at 
the completion of the leasing analysis. This approach better aligns the 
Forest Service leasing availability analysis methods with those 
followed by the BLM. The rule also clearly states that the Forest 
Service may withdraw its consent to lease prior to the BLM conducting a 
lease sale.
    The rule removes references to other laws and regulatory 
requirements, particularly with respect to complying with the National 
Environmental Policy Act and the Endangered Species Act and their 
implementing regulations, in favor of letting those laws and 
regulations speak for themselves and to reduce the likelihood that 
direction could be confused in the future if other regulations change. 
While several citations to specific laws and regulations have been 
removed, the Forest Service and lessees must still comply with all 
applicable laws and regulations.
    Paragraph (a) of section 228.103 modernizes language regarding 
scheduling leasing analyses. The existing regulation references 
scheduling analyses within 6 months of April 20, 1990, and calls for an 
annual update of the schedule. The rule removes reference to a specific 
date, emphasizes coordination between national forests and grasslands 
and the BLM for scheduling, informs the public that the agencies would 
consider public interest in leasing, and requires an annual update to 
the schedule. The changes help align the efforts of Forest Service and 
the BLM with each other and interested parties in conducting leasing 
analyses.
    Paragraph (b) of section 228.103 defines the required components of 
a leasing consent analysis. The rule maintains the same components of 
analysis but provides additional direction on cooperation with the BLM, 
the development of alternatives, and the use of stipulations. These 
requirements include clarifying how stipulations must be designed to 
carry out provisions of the Energy Policy Act of 2005 (42 U.S.C. 15922) 
to ensure that lease stipulations are applied consistently, coordinated 
between agencies, and are only as restrictive as necessary to protect 
the resource for which the stipulations are applied. This section 
incorporates parts of the existing section 228.102(b) and (c). The 
leasing consent analysis process directs the Forest Service to make a 
single decision identifying lands on which the Agency would consent to 
the BLM's offering oil and gas leases for the affected National Forest 
System lands. The existing regulation directs an administrative review 
by the Forest Service at the time that specific lands, which have 
already been subject to an area or forest-wide leasing analysis, are 
being scheduled for leasing by the BLM. Paragraph 228.103(f) replaces 
that language as described above.
    Paragraph (c) of section 228.103 carries forward the components of 
a leasing consent decision from the existing regulations but is renamed 
Leasing Consent Decision. The paragraph clarifies that the Forest 
Service has one decision point in the process and clearly defines the 
required components of the Forest Service decision: which lands are 
open to leasing and under what conditions (standard lease terms or 
added stipulations); and which lands are closed through exercise of 
management direction, statute, regulation, or withdrawal EOI's on a 
regular and recurring basis.
    Paragraph (d) clarifies the effect of a leasing consent decision.
    Paragraph (e) of the rule codifies the existing practice that the 
Forest Service could withdraw its consent decision prior to a BLM lease 
sale.
    Paragraph (e) emphasizes any additional environmental analysis to 
be conducted of the leasing consent analysis decision. Environmental 
analysis will be consistent with leasing analysis and consent decision 
and conducted in an expeditious manner.
    The addition of paragraph (f) is described above.
Section 228.104 Consideration of Request To Waive, Except or Modify 
Lease Stipulations
    After considering public comment, the language in the final rule is 
the same as in the proposed rule.
    Compared to the existing regulation, the final rule adds direct 
reference regarding the applicability of procedures in 43 CFR part 
3170, subpart 3171 for requesting waivers or exceptions from or 
modifications to a lease stipulation (see regulation text in section 
228.104). The final rule directs the Forest Service to provide notice 
to the BLM on its determination as to whether to grant or deny a 
request for a waiver, exception, or modification. The existing 
regulation directs notification to both the BLM and operator. As the 
administrator of Federal leases, the appropriate notification to the 
operator is from the BLM. The final rule removes statements concerning 
administrative ``appeal'' regulations that are obsolete in light of 
subsequent statutory and regulatory changes, and rather than providing 
redundant regulatory instructions, the final rule will instead rely 
directly on the Agency's existing administrative review regulations at 
36 CFR part 214 and part 218.
    The existing regulation requires the Forest Service to consult with 
other agencies when considering a waiver, exception, or modification to 
a lease stipulation included at the other agency's request. Examples of 
instances when this might occur would be if the Forest Service included 
a stipulation that restricted occupancy in the vicinity of an 
electrical transmission line operated by a Federal power authority, or 
a stipulation to protect threatened or endangered wildlife species 
required by the U.S. Fish and Wildlife Service. The final rule 
maintains this requirement unchanged from the proposed rule.

[[Page 3647]]

Section 228.105 Responsibilities of Operators
    After consideration of public comments, three minor changes were 
made from the proposed rule to the final rule.
    First, in section 228.105(a), the phrase ``and avoids conflicts 
with other land uses'' was added to the general standard of resource 
protection. The clause in section 228.105(a)(1)(vii) ``. . . as 
required by the authorized Forest Service officer'' was removed as 
unnecessary in the final rule.
    Finally, the text in section 228.105(c) was modified to specify 
that an operator must allow access to ``authorized'' Forest Service 
personnel and remove the restriction that access is only related to 
inspection purposes.
    The final rule moves the content of the existing section 228.105 to 
section 228.102. The final rule moves the content of the existing 
section 228.108 to section 228.105 and retitles it as Responsibilities 
of Operators. To improve efficient implementation of the regulations, 
the final rule generally revises the content to not duplicate 
requirements in 43 CFR part 3170, subpart 3171; readers are referred to 
43 CFR part 3170, subpart 3171, as applicable.
    The final rule retains requirements from the existing regulations 
in paragraphs (g), (i), and (j)(2), places them in paragraph (a), and 
reorders them for readability. Paragraph (a) of the final rule 
reinforces existing practices for operators to maximize use of existing 
roads and utility corridors in planning and constructing new 
infrastructure and report to the Forest Service any spills, blowouts, 
fires, or personal injuries that are reported to the BLM under its 
requirements.
    Paragraph (b) of the final rule requires the operator to comply 
with all other applicable State and Federal statutes and regulations. 
Paragraph (c) of the final rule requires the operator to allow the 
Forest Service access to its operations for compliance inspection and 
other authorized purposes. Paragraph (d) of the final rule informs the 
operator of existing requirements that it is responsible for obtaining 
Forest Service permits for uses of National Forest System lands and 
resources not otherwise included in a surface use plan of operation, 
most notably for uses outside an operator's lease area. Paragraph (e) 
of the final rule maintains the requirement that the operator shall 
conduct its activities in a manner that avoids the cause, or minimizes 
the spread, of fire.
    The final rule moves section 228.110 in the existing regulation to 
paragraph (f) of this section and retitles it Liability. The final rule 
maintains the same conditions of liability to the United States for 
injury, loss, or damage, including fire suppression costs incurred by 
the government resulting from the operator and all lessees' activities.
Section 228.106 Operator's Submission of Surface Use Plan of Operations
    No changes were made from the proposed rule to the final rule 
except for changing reference of Onshore Order 1 to 43 CFR part 3170, 
subpart 3171.Compared to the existing regulation, the final rule 
revises language clarifying the applicability of the requirements in 43 
CFR part 3170, subpart 3171 when an operator submits a surface use plan 
of operation and addresses use of master development plans and master 
surface use plans of operations. The final rule revises paragraph (c) 
to emphasize the need for operators to include in their applications a 
description of infrastructure or facilities to the extent known that 
would be used to support their operations such as pipelines or roads, 
and whether it would be within the boundaries of a lease or agreement, 
or outside lease or agreement boundaries. The final rule removes 
paragraph (d) Supplemental Plan, which uses terminology that is 
inconsistent with the BLM regulations and instead addresses sundry 
notices in section 228.108.
Section 228.107 Review and Approval of Surface Use Plan of Operations
    After consideration of public comments, a change was made from the 
proposed rule to the final rule. The proposed rule removed the language 
from 228.107(c) in the existing regulation, which states, ``The 
authorized Forest Service officer shall give public notice of the 
decision on a surface use plan of operations and include in the notice 
that the decision is subject to appeal under 36 CFR part 214 or 215.'' 
The final rule inserts language in 228.107(b) expressly addressing when 
objection and appeal regulations will be available for proposed and 
final decisions concerning surface use plans of operations. Language 
has been added in 228.107(b) identifying that the authorized Forest 
Service officer will provide public notice for the proposed decision on 
a surface use plan of operation expected to be documented in a decision 
notice or record of decision (i.e., environmental assessments and 
environmental impact statements; not categorical exclusions) and 
identify that the proposed decision will be subject to the 36 CFR part 
218 pre decisional objection process. Additionally, 228.107(e) Notice 
of decision now provides that ``The authorized Forest Service officer 
shall give public notice of the final decision on a surface use plan of 
operations and identify in the notice that the decision may only be 
appealed by the applicant under 36 CFR part 214.''
    Compared to the existing regulation, the final rule improves 
references to 43 CFR part 3170, subpart 3171, including the timeframes 
established in the regulation for Agency response. The final rule 
removes existing section 228.107(e), which uses terminology that is 
inconsistent with the BLM's regulations and instead clarifies sundry 
notices in section 228.108.
Section 228.108 Sundry Notices
    Public comments prompted us to look closely at the language in this 
section. The final rule makes some minor changes to place language in 
the correct paragraph and improve clarity.
    Compared to the existing regulation, the final rule moves the 
content of the existing section 228.108 to section 228.105, 
Responsibilities of Operators. The final rule renames this section 
Sundry Notices, replacing references to supplemental plans in sections 
228.106 and 228.107 of the existing regulations. This removes language 
inconsistent with the BLM regulations and aligns the final rule with 
the BLM's procedures. New content regarding sundry notices states that 
the operator must follow the BLM procedures for submitting a sundry 
notice and that Forest Service approval of a sundry notice is required 
if the notice proposes surface-disturbing activities. The final rule 
clarifies that surface-disturbing activities may or may not require 
additional environmental analysis and may be assessed using any of the 
mechanisms provided in the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.).
Section 228.109 Bonds
    The final rule language remains the same as the proposed rule after 
consideration of public comments. The final rule maintains the same 
bond requirement as the existing rule but provides additional 
instruction to Forest Service managers and operators regarding 43 CFR 
part 3170, subpart 3171. The final rule makes general clarifications 
and editorial corrections for readability. The final rule clarifies how 
the Forest Service will coordinate

[[Page 3648]]

with the BLM if an operator chooses to increase its BLM bond to cover 
additional bonding required by the Forest Service for surface 
reclamation purposes. The Forest Service's experience in managing 
Federal oil and gas resources since the existing regulations were 
promulgated in 1990 indicates that in many cases, the BLM lease bonds 
are insufficient to support surface reclamation needs if a lessee or 
operator defaults. Recently, the BLM has updated its regulations 
concerning bonding requirements for leasing, development, and 
production to address shortcomings identified in reports by the 
Government Accountability Office and the Department of the Interior's 
Office of Inspector General (see 89 FR 30916). The final rule retains 
language for the Forest Service to exercise its authority under the 
Mineral Leasing Act to ensure adequate financial assurance is in place 
to reclaim surface disturbance. The final rule adds language that 
describes what factors authorized Forest Service officers would 
consider when determining if BLM lease bonds are adequate. The final 
rule retains language to the effect that the operator may increase the 
BLM performance bond or post a separate surface reclamation bond with 
the Forest Service when the Forest Service determines additional 
bonding is necessary. The final rule adds paragraph (d) to clarify 
methods for posting bonds, and paragraph (e) to clarify methods for 
releasing a Forest Service-held surface reclamation bond.
Section 228.110 Temporary Cessation of Operations
    Compared to the proposed rule, the final rule changes language in 
228.110(b) Interim measures from ``The authorized Forest Service 
officer may require the operator to take reasonable interim reclamation 
or erosion control measures to protect . . .'' to ``The authorized 
Forest Service officer shall require, as necessary, the operator to 
take reasonable interim reclamation or erosion control measures to 
protect . . .''
    Compared to the existing regulation, the final rule moves the 
content of the existing section 228.110 to paragraph (f) of section 
228.105, Responsibilities of Operators, and renames it Liability. The 
final rule places the content from the existing section 228.111 into 
this section. The final rule also makes editorial clarifications.
Section 228.111 Compliance and Inspection
    The final rule language remains the same as the proposed rule. 
Compared to the existing regulation, the final rule moves the content 
of the existing section 228.112, paragraph (c), to section 228.105(b) 
Responsibilities of Operators and simplifies it to reference Compliance 
with Other Statutes. The final rule places the remaining content of the 
existing section 228.112 into this section. The final rule also 
reorders and renames the paragraphs in this section and makes editorial 
corrections to clarify the Agency's responsibility to inspect 
operations for compliance with the terms of applicable approvals and 
the regulations in this subpart.
Section 228.112 Notice of Noncompliance
    The final rule remains largely the same as the proposed rule for 
this section. In section (f) Shut down of operations, paragraphs (1) 
and (2) are changed in order. Also, the criteria for lifting a shutdown 
are simplified to a determination that operations are in compliance 
with the applicable requirements identified in the notice of 
noncompliance. The duplicative clause ``or that it is no longer likely 
that any remaining noncompliance is likely to result in danger to 
public health or safety or in irreparable resource damage'' was 
removed. This second clause is one of the criteria for issuing the 
shutdown in the first place.
    The final rule moves the content of the existing section 228.112 to 
section 228.111. The final rule also moves the content of the existing 
section 228.113 to this section. The final rule then reorders, renames, 
and revises the paragraphs in this section. The final rule streamlines 
the procedures that the Agency would use to notify an operator of 
issues concerning noncompliance with the terms of approvals or the 
regulations in this subpart. The final rule accomplishes the improved 
efficiency by moving from a two-step process to a one-step process. The 
final rule clarifies when the Agency would either engage the BLM to act 
under 43 CFR part 3163, refer a noncompliance action to law 
enforcement, or refer a noncompliance issue to the Agency's material 
noncompliance proceedings. The final rule clarifies an operator's 
opportunity to correct issues of noncompliance and an operator's appeal 
opportunities. The final rule updates the methods for notifying 
operators of noncompliance issues by including electronic means of 
notification.
Section 228.113 Material Noncompliance
    Except for paragraph (c) Notifying the Bureau of Land Management, 
the final rule language in this section remains the same as the 
proposed rule. In paragraph (c), the language ``advising the BLM not to 
issue a lease or approve the assignment of any lease to an entity the 
Forest Service has determined to be in material noncompliance'' was 
removed. The final rule simply requires notification to the BLM of our 
findings. By statute, the BLM administers all questions concerning the 
ineligibility of an entity to acquire a new lease.
    The final rule moves the content of the existing section to section 
228.112 and moves the content of section 228.114 to this section. The 
final rule revises, reorders, and renames the paragraphs in this 
section. The final rule streamlines the procedures that the Agency 
would follow when determining if an operator is in material 
noncompliance with reclamation or other requirements or standards and 
better reflects the requirements and consequences established in the 
Mineral Leasing Act. The 1990 procedures in the existing regulation for 
oil and gas material noncompliance proceedings were designed to be 
consistent with other debarment procedures that are now defunct, thus 
prompting the need to revise these procedures.
Section 228.114 Posting Requirements
    The Posting Requirements text remains the same from the proposed to 
final rule. The final rule moves the content of the existing section 
228.114 to section 228.113; moves the content of section 228.115 to 
section 228.114; retitles this section; and revises it to make the 
timeframes consistent with the timeframes in the BLM's 43 CFR subpart 
3171. The final rule also removes internal direction regarding posting 
decisions, which is addressed in the Agency's regulations for 
implementing the National Environmental Policy Act.
Section 228.115 Information Collection Requirements
    The final rule language is the same as the proposed rule for 
Information Collection Requirements. The final rule moves the content 
of the existing section 228.116 to section 228.115 and retitles it 
Information Collection Requirements. The final rule includes statements 
regarding Office of Management and Budget requirements from the 
existing section 228.116.

Summary of and Response to Public Comments

    A summary of substantive comments and Forest Service responses is 
provided below including descriptions of changes made to the final rule 
based on the analysis of the comments and other administrative 
considerations.

[[Page 3649]]

Rulemaking Process

    1. Comment: Commenters stated the rulemaking process should be 
paused (or the comment period extended) due to COVID-19 pandemic 
impeding the ability for public participation, and that all open public 
comment periods and associated leasing and permitting activities are 
paused during this crisis.
    Agency Response: COVID-19 presented challenges to many normal 
processes. However, the Forest Service declined to extend the public 
comment period because the proposed revisions are not complex, and do 
not materially change the existing analyses and decisions related to 
land use or post-lease permitting. The Forest Service did extend the 
Tribal consultation period from 120 days to 150 days. Any ongoing 
leasing and permitting actions are separate and apart from this 
rulemaking process.
    2. Comment: Several commenters indicate that the programmatic 
environmental assessment (EA) associated with the proposed rule does 
not consider a sufficient range of alternatives, and that additional 
alternatives capable of meeting the purpose and need should be carried 
forward for analysis. Likewise, concern is expressed that the purpose 
and need is defined too narrowly to permit consideration of a 
reasonable range of alternatives. Comments also express concern that 
the programmatic environmental assessment does not take a hard look at 
the environmental and social costs associated with the proposed rule, 
and that additional evidence is needed to support the assessment's 
findings, as well as the stated purpose and need. It is stated that the 
Forest Service should prepare an environmental impact statement for the 
proposed rule to address these concerns.
    Agency Response: A programmatic environmental assessment was 
prepared to determine whether this rule would have a significant impact 
on the quality of the human environment under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). The 
programmatic environmental assessment describes and analyzes two 
alternatives: the rule (proposed action) and continuing with the 
existing regulations (no action). The programmatic environmental 
assessment found no impacts on any natural or cultural resources and 
low, but beneficial socioeconomic benefits. The programmatic 
environmental assessment supports a finding of no significant impact 
for the rule, and preparation of an environmental impact statement 
pursuant to the National Environmental Policy Act is not required.
    3. Comment: With regard to public involvement, some comments stated 
that the overall structure and style of the proposed rule reduces the 
public's ability to meaningfully engage in the rulemaking process. 
Concern is specifically expressed that this will curtail involvement by 
affected communities and indigenous people or affect decisions for 
specific public resources.
    Agency Response: The process provided adequate opportunity for 
meaningful public and Tribal engagement as described in the preceding 
section titled ``Advance Notice of Proposed Rulemaking, Proposed Rule, 
and Public Comment Period.'' The proposed revisions are not overly 
complex, and do not materially change the existing analyses and 
decisions related to land use or post-lease permitting. Formal 
consultation and coordination with Indian Tribal governments was 
conducted as described in the ``Regulatory Certifications'' section of 
this preamble.

Agency Organization

    4. Comment: Concern is expressed that the proposed rule does not 
address training and funding for Agency staff and programs. As one 
commenter states, ``Creating efficient processes is about more than 
revising regulations. Without sufficient funding and qualified resource 
professionals, streamlining regulations is a reaction to symptoms 
instead of addressing the root causes. Congress and the Administration 
must address proper funding, to not only ensure healthier forests, but 
a healthier Forest Service.''
    Agency Response: The rule does not address training and funding for 
Agency staff and programs, and any shortcomings in this area are best 
addressed outside the context of this rulemaking process. Management of 
Federal oil and gas resources on National Forest System lands does 
require an adequate number of qualified resource professionals, and the 
Service does strive to maintain the required staff.

Public Involvement

    5. Comment: Many commenters viewed the proposed rule's removal of 
existing references and citations of required laws, such as the 
National Environmental Policy Act or the Endangered Species Act, in 
several places as reducing transparency and the ability for public 
participation in Forest Service decisions on lands available for 
leasing and approvals of post-leasing activities. For example, one 
commenter stated, ``I am protesting the new rule that allows speedier 
approval of oil and gas drilling in national forests. I believe that 
the new rule unfairly reduces the chance for the public to comment by 
eliminating much of the existing NEPA process.''
    Agency Response: The proposed revisions do not affect the level of 
notifications or public involvement in leasing or post leasing 
activities. In several places, references or citations to mandatory 
laws or regulations were removed in favor of letting them speak for 
themselves and to reduce likelihood that direction could be confused in 
the future if those laws or regulations change. While several citations 
to specific laws and regulations have been removed, the Forest Service 
and lessees must still comply with all applicable laws and regulations.

Protection of Natural and Cultural Resources and Other Land Uses

    6. Comment: Many comments include statements of general opposition 
for the proposed rule, as well as for oil and gas activities on 
National Forest System lands or in general. Stated reasons for 
resource-specific opposition include adverse consequences to varied 
biological resources such as ecosystem health or wildlife, inadequate 
economic benefits and protection of human and environmental health, 
inappropriate use of public lands, adverse impacts on recreation 
opportunities and tourism, air and water pollution, decreased carbon 
sequestration and increased global warming/climate change impacts 
(including wildfires/fire risk, storms, and sea level rise), traffic, 
increased noise, and viewshed changes (such as views of natural gas 
flaring), damage to cultural and Tribal resources, and loss of 
medicinal plants.
    Agency Response: The changes from the existing regulation do not 
alter the high level of protection of natural and cultural resources 
and other land uses affected by impacts of oil and gas development. The 
existing regulation is administrative in nature. It does not make any 
land use decisions or authorize any on-the-ground activity. The same 
holds true for the final rule. The rule does not change any processes 
by which the Forest Service complies with the National Environmental 
Policy Act, Endangered Species Act, cultural laws, or interagency and 
Tribal consultations in making decisions on land uses, leasing 
conditions, or post-leasing surface use decisions. The programmatic 
environmental assessment and regulatory impact analysis along with the 
preamble to the

[[Page 3650]]

draft rule, are essential components of our open and transparent public 
review process. A review of the documents demonstrates that the 
proposed revisions are not highly complex, do not materially change the 
existing analyses and decisions related to land use or post-lease 
permitting, have no adverse impacts on any members of the public, and 
do not alter public ability to participate in these decision-making 
processes.

Support for the Proposed Revisions

    7. Comment: Many commenters stated reasons for general support of 
the proposed rule revisions, including efforts to ``reduce the burden 
of Federal regulations on individuals and businesses, increase 
efficiency, streamline processes, clarify the rule to reduce confusion 
and the potential for litigation and promote consistency between 
agencies all while maintaining health, safety and environmental 
protections.''
    Agency Response: These are the stated reasons why the Forest 
Service decided to undertake the rulemaking effort. In general, the 
existing rule does not impose undue burdens on the industry but the 
Forest Service recognizes the value of providing clarity and improving 
processes and consistency between agencies.

Proposed Rule Section-by-Section Comments

Section 228.100 Scope and Applicability
    8. Comment: Support is expressed for language that clarifies the 
roles of the Forest Service and the BLM in administering mineral 
leasing on National Forest System lands. Comments also state that the 
proposed rule should (1) regulate development of split-estate lands 
(such as nonfederal (reserved and outstanding private)) oil and gas 
resources, and the opposite (2) ensure that this rulemaking only 
affects Federal oil and gas resources on land managed by the Forest 
Service and does not affect nonfederal oil and gas resources.
    Agency Response: The existing regulation and final regulation apply 
only to management of Federal oil and gas resources. The exercise of 
private oil and gas rights beneath lands managed by the Forest Service 
occurs under a different umbrella of laws and policy. Attempting to 
combine the different regimes under one regulation would likely promote 
inefficiencies and less clarity.
    9. Comment: For section 228.100(b), one commenter stated, ``The 
Reform act gives the Secretary of Agriculture authority to regulate all 
surface-disturbing activities conducted pursuant to a lease and does 
not specify those activities must be ``on the lease'' and suggested 
changing ``within such leases'' to ``pursuant to such leases.'' The 
commenter suggested that surface uses associated with oil and gas 
activities that are conducted on lands managed by the Forest Service 
outside a lease or agreement should be covered under one authorization, 
namely the surface use plan of operations.
    Agency Response: As described in section 228.100(c)(3), surface 
uses outside a Federal lease or agreement are subject to Forest Service 
special uses authorizations under regulations set forth elsewhere in 36 
CFR chapter II, including but not limited to the regulations set forth 
in 36 CFR part 251, subpart B, and 36 CFR part 261. The Forest Service 
could not identify any meaningful efficiencies for the Forest Service 
or industry that would be gained by trying to combine authorizations 
permitted under different authorities, different Forest Service 
personnel or offices, or varying from long-standing processes.
Section 228.101 Definitions
    10. Comment: Comments request that for ``conditions of approval,'' 
remove the ``may be'' or ``may'' language and instead provide specific, 
required conditions.
    Agency Response: The definition has been adjusted to remove 
language that may imply arbitrary discretion in application of 
conditions of approval.
    11. Comment: One commenter viewed the definition of ``consent'' as 
reversing the existing requirement that forest staff make an 
affirmative decision following any leasing analysis. The commenter 
interprets the final rule's definition of ``consent'' under both the 
Mineral Leasing Act of 1920 (may not issue a lease ``over the 
objection'' of USDA) and the Mineral Leasing Act for Acquired Lands of 
1947 (no covered mineral deposit ``shall be leased except with the 
consent'' of the agency) as demoting the Forest Service to a weak, 
secondary role relative to oil and gas leasing on public domain lands. 
Other commenters stated the definition would eliminate or reduce 
confusion by the public relative to use of the different terminology. 
Combining implementation of two separate authorities under one common 
terminology improves efficiency and reduces complexity.
    Agency Response: Regardless of whether a leasing analysis is 
conducted for reserved public domain or acquired lands, the Forest 
Service conducts the same analysis and effectively makes the same 
decisions: what lands are unavailable for lease, what lands are 
available, and under what conditions (such as lease stipulations). The 
``consent'' and ``does not object'' language conveying the Forest 
Service's decision to the BLM has the exact same effect. That is made 
clearer with the ``consent'' definition in the proposed rule.
    12. Comment: One commenter recommended the rule include a 
definition of ``reclamation'' as the term is used frequently in the 
proposed rule, but never explicitly defined.
    Agency Response: No specific definition has been added for 
``reclamation.'' The agencies, industry and public have a sufficient 
understanding of its general meaning without providing a more precise 
definition that could inadvertently overlook or exclude needed 
flexibility for specific reclamation actions. What constitutes 
reclamation is determined on a site-by-site case in the ``reclamation 
plan'' of a surface use plan of operations, which is also used to 
evaluate the amount of a reclamation bond.
Section 228.102 Issuance of Onshore Orders and Notices to Lessees and 
Operators
    13. Comment: It would seem advisable that if the authorized Forest 
Service officer issues a specific Notice to Lessees and Operators that 
that information should also be forwarded to the appropriate BLM office 
also, usually the jurisdictional State office.
    Agency Response: The agency agrees and has adjusted the final rule 
to ensure proper notifications occur.
Section 228.103 Leasing Analysis and Consent Decision
    14. Comment: The proposed rule would remove references to other 
laws and regulatory requirements, particularly with respect to 
complying with the National Environmental Policy Act and the Endangered 
Species Act and their implementing regulations, in favor of letting 
those laws and regulations speak for themselves. By removing 
information such as this, it weakens the public's confidence in knowing 
what the oil and gas industry is doing and to what regulatory measures 
they are being held.
    Agency Response: Reference and citation of mandatory laws were 
removed in favor of letting those laws and regulations speak for 
themselves and to reduce likelihood that direction could be confused in 
the future if other regulations change. While several

[[Page 3651]]

citations to specific laws and regulations have been removed, the 
Forest Service and lessees must still comply with all applicable laws 
and regulations.
    15. Comment: In addition to the BLM, one commenter requested that 
State wildlife agencies also be identified and invited to participate 
as a cooperating agency in the leasing consent analysis due to special 
expertise or statutory authorities.
    Agency Response: Although State wildlife agencies and other 
agencies with resource responsibilities are often identified and 
invited to participate, mandating invitations would not be an 
appropriate regulatory requirement. The BLM's role as the final 
authority over oil and gas leasing matters on Federal lands 
distinguishes their participation and warrants a regulatory requirement 
to receive an invitation to be a cooperator in the environmental review 
process. The Forest Service will continue to coordinate and cooperate 
with other Federal and State agencies as appropriate.
    16. Comment: One commenter observed that the justification for the 
change to clarify ``how stipulations must be designed to carry out 
provisions of the Energy Policy Act of 2005'' is questionable. Notably, 
the requirement of the Energy Policy Act of 2005 was for the BLM and 
Forest Service to enter into memorandums of understanding concerning 
oil and gas leasing and operations--nothing more. The commenter 
believes that this requirement has been met and in no way does the 
Energy Policy Act of 2005 require the Forest Service regulations to 
incorporate this direction.
    Agency Response: Though the commenter is technically correct that 
the Energy Policy Act does not ``require'' the Forest Service to 
include specific language in regulation, the concept that lease 
stipulations are consistently applied and coordinated between agencies 
and only as restrictive as necessary to protect the resource or 
resources for which the stipulations are applied is entirely reasonable 
and fully protective of resources. USDA has elected to maintain the 
provision in regulation because it informs Forest Service managers of 
the need to cooperate and develop stipulations that fully provide 
necessary protections but avoid restrictions that only serve to make 
leases less economically attractive.
    17. Comment: Relating to the ``Effect of leasing consent 
decision,'' commenters challenged the Forest Service proposed rule that 
states, ``An authorized Forest Service officer's identification of 
lands as open to leasing . . . does [not] constitute an irretrievable 
or irreversible commitment of resources.''
    Agency Response: The Forest Service consent decision does not 
necessarily lead to leasing as that decision and action belongs to the 
BLM. Further, the Forest Service may withdraw its consent at any time 
prior to a lease sale.
    18. Comments: On the topic of the proposed rule's removal of 
language from the existing regulation for ``Leasing Decisions for 
Specific Lands,'' this proposed change generated the highest number of 
topic-specific comments--mostly unfavorable. Commenters asserted the 
Forest Service was eliminating a step requiring environmental review 
under the NEPA and additional public participation, ceding Forest 
Service authority to the BLM and placing oil and gas leasing above any 
environmental considerations. A few commenters stated removing the 
language would help avoid confusion by the public as to exactly what 
the current provision was calling for and thus avoid unnecessary legal 
challenges.
    Agency Response: Based on public comment, our attempt to refine and 
clarify a single Forest Service decision point and avoid confusion was 
not successful. The draft rule attempted to clarify that the Forest 
Service would make a single decision identifying available lands for 
which the Agency would provide consent to the BLM to offering oil and 
gas leases for sale. The decision was to occur following a forest or 
area-wide leasing analysis. It is notable that the existing regulation 
actually uses the word ``decision'' in the paragraph titled ``Leasing 
decisions for specific lands'' (36 CFR 228.102(e)). However, when 
considering what the existing regulation requires, it is readily 
apparent that this is not a second, independent decision or Federal 
action requiring a more detailed analysis, but rather has been regarded 
as an administrative review verifying that leasing of the specific 
lands being reviewed has been adequately addressed in a NEPA document 
and is consistent with the applicable land management plan. The draft 
rule removed this regulatory text because it duplicates other 
procedures and regulatory requirements. That is, the Forest Service 
inevitably sought to assure that NEPA and other Forest Service 
regulations and policy remained valid at the time specific tracts were 
included in a lease sale. Removal of the text seemed to create more 
confusion. As a result, the final rule includes new text titled 
``Review of Leasing Consent Decision for Specific Lands'' with the 
review leading to either a confirmation of the leasing consent decision 
or a withdrawal of consent (based on new information necessitating 
further analysis, for example). Additional direction was added for the 
Forest Service to provide notification to the BLM of results of the 
review confirming the leasing consent decision for specific lands or 
withdrawing its leasing consent for specific parcels. If the consent is 
withdrawn, the notification will describe the reasons for the 
withdrawal and provide an anticipated course of action.
    19. Comments: Several commenters expressed concern that the Forest 
Service might withdraw its consent any time prior to a BLM lease sale, 
with some suggesting there should be a specified timeframe prior to a 
lease sale citing prospective bidders expending time and money 
evaluating parcels.
    Agency Response: After consideration, the final rule removes 
section 228.103(e)--Withdrawing lease consent. The provision was added 
to the draft rule with the removal of existing 228.102(e)--Leasing 
decision for specific lands from the draft rule. The time between 
Forest Service leasing consent and an actual lease sale could be a 
number of years and conditions could change. A provision of the Forest 
Service's ability to withdraw its consent for specific parcels was 
informative to Forest Service and BLM, industry, and the public. The 
time between a notice from the BLM to the Forest Service that Forest 
Service parcels are scheduled for a lease sale is typically a month to 
several months. The Forest Service retains the discretion to withdraw 
its consent prior to a lease sale.
Section 228.104 Consideration of Requests To Waive, Except, or Modify 
Lease Stipulations
    20. Comment: Commenters expressed support allowing the Forest 
Service discretion to provide waivers, exceptions, or modifications to 
lease stipulations identified in section 228.104. Governments on 
Colorado's Western Slope argued in other rulemaking processes, that one 
size does not fit all, and this will allow the Forest Service to adjust 
accordingly.
    Agency Response: The Department agrees that this longstanding 
procedure is a valuable tool in oil and gas leasing administration. To 
ensure adequate protection is maintained, if the activity would cause 
effects on surface resources not authorized by the currently approved 
surface use plan of operations, the sundry notice is subject to the 
same

[[Page 3652]]

requirements of sections 228.106 and 228.107.
    21. Comment: Comments suggested that section 228.103 Leasing 
Consent Analysis should identify the conditions that could lead to a 
waiver, exception, or modification for each stipulation.
    Agency Response: After consideration, it was determined that this 
section as proposed provides the appropriate criteria for the Forest 
Service to consider waivers, exceptions, or modifications to lease 
stipulations, and that speculating on specific conditions for each 
stipulation during the leasing analysis is not always practical. This 
section provides a reasonable adaptive management tool.
    22. Comment: Some commenters expressed concern that waivers, 
exceptions, or modifications could be approved without analysis and 
believed the section should explicitly define a public comment period 
requirement.
    Agency Response: Any stipulation contained in a Forest Service 
lease has undergone full analysis including public participation. The 
rule defines strict criteria for approval that cannot lower the level 
of resource protection, including a review of the environmental 
consequences. Specifically, a Forest Service officer must find the 
management objectives which led the Forest Service to require the 
inclusion of the stipulation in the lease can be met if the waiver, 
exception, or modification is granted. Also, if a lease stipulation was 
included in a Forest Service lease at the request of another agency, or 
if another agency has specific jurisdiction over the specific resource, 
the authorized Forest Service officer must coordinate with that agency 
prior to approving a waiver, exception, or modification. These 
provisions provide the necessary protections and a universal 
requirement for public participation is not included in the final rule.
    23. Comment: In section 228.104 (d) Coordination with other 
agencies, the Rule specifies that if non-Forest Service agency-proposed 
stipulations were incorporated into a lease, the Forest Service shall 
coordinate with the agency prior to approving a waiver, exception, or 
modification of those stipulations. However, this provision does not 
require the consent of the agency to modify stipulations. This 
provision could negate lease stipulations requested by the agency such 
as seasonal timing restrictions of drilling within big game critical 
winter range, fawning or calving habitat and the agency would have 
little recourse to challenge such decisions.
    Agency Response: The final regulation does require the consent of 
such an agency to the waiver, exception, or modification when such 
consent is independently required by statute or regulation. But even 
given that, for the stipulation to have been included in the lease at 
an agency's request suggests a genuine and effective level of 
cooperation, and the rule requires (for example, Forest Service officer 
shall coordinate . . .) further coordination as the Forest Service 
considers the request. However, when an agency does not have statutory 
or regulatory authority, the regulation recognizes the final decision 
as being with the Forest Service. Agencies do not have the ability to 
pursue predecisional objections concerning proposed Forest Service 
decisions under 36 CFR part 218.
    24. Comment: A commenter requested that the proposed amendments to 
section 228.104 be expanded to provide for waivers, exceptions, or 
modifications of lease stipulations to recognize North Dakota section 
line rights of way (NDCC 24-07-03) on lands acquired by the United 
States obtained by deed through purchase or gift, or through 
condemnation proceedings after North Dakota statehood in 1889.
    Agency Response: Development of stipulations during the leasing 
analysis will conform with the legal obligations of the United States, 
but state specific matters such as the one raised by the comment are 
best addressed on a case-by-case basis rather than through these 
nationwide regulations.
    25. Comment: A commenter stated the change to only notify the BLM 
of the Forest Service decision, and not the operator, would limit 
Forest Service decision making.
    Agency Response: Section 228.104(a)(2) clarifies that where the 
request involves stipulations included in the lease as prescribed by 
the Forest Service, the BLM must obtain approval from the Forest 
Service before granting a request for a waiver, exception, or 
modification. An operator is directed to submit its request to the BLM 
under 43 CFR part 3170, subpart 3171.24, and the BLM is the final 
decision maker on the request. The notification to the operator by only 
the BLM promotes efficiency and does not change Forest Service 
evaluation of the request or limit its decision-making authority.
Section 228.105 Responsibilities of Operators
    26. Comment: Consider changing ``required'' to ``approved'' so that 
it reads ``. . . as approved by the authorized Forest Service 
officer.'' Based on ``Superfund'' litigation relative to phosphate 
mining in Idaho where the Forest Service required specific reclamation 
. . . which resulted in a Comprehensive Environmental Response, 
Compensation, and Liability Act (Superfund) action . . . it was argued 
that the Forest Service was liable since they ``required'' the specific 
reclamation causing the problem. The operator should propose 
reclamation which would be approved by the Forest Service and thereby 
limiting potential taxpayer liability.
    Agency Response: The clause in section 228.105(a)(1)(vii) ``. . . 
as required by the authorized Forest Service officer'' appears to be 
unnecessary and it has been removed from the final rule.
    27. Comment: A commenter takes exception to section 228.104(c) 
which states that the operator must allow Forest Service employees 
access, for inspection purposes stating that if the Forest Service 
employee is not certified (Forest Service Manual 2893) and/or does not 
have proper equipment, the operator may deny access to meet their 
``safety obligation'' as referenced in 228.105(e). The commenter 
references Occupational Safety and Health Administration requiring 
personnel on location to wear flame-resistant clothing at specified 
times and references National Forest System Deputy Chief's letter dated 
November 15, 2010.
    Agency Response: The Department partially agrees. After 
consideration, the text has been modified to specify that an operator 
must allow access to ``authorized'' Forest Service personnel and has 
removed the restriction that access is only related to inspection 
purposes. Forest Service personnel may need to be on location for other 
purposes such as planning new operations. While operators cannot 
ultimately deny access to authorized Forest Service personnel, 
conditions that provide for human health and safety should be in place.
    28. Comment: Another commenter noted that there is no mention of or 
reference to potential investigations by other enforcement entities 
including State law enforcement officers or staff being permitted 
access. This limitation could impede the State's ability to investigate 
reports or clarify questions concerning wildlife or habitat related 
issues.
    Agency Response: If access by State agencies is required under 
their own or other authorities, then it is not necessary to include 
language to that effect in this regulation. The Forest Service is 
committed to cooperating with State agencies to ensure that operations 
are conducted in compliance

[[Page 3653]]

with all Federal, State, and local laws and regulations.
    29. Comment: One comment noted language indicating that the 
operator will ``reshape and revegetate areas disturbed by their 
operations'' is not clear what area that constitutes. It appears that 
the paragraph leaves that decision up to the operator. If the intent is 
that this refers to the surface use plan of operation, the regulations 
should so state; if not, then the area(s) should be defined.
    Agency Response: After considering the comment, that language in 
the final rule remains the same as the proposed rule. This accounts for 
both approved and unapproved disturbance (such as spills that move off 
a surface use plan of operation's approved area of disturbance).
    30. Comment: A commenter recommends this section be further 
clarified by adding language that directs the operator to conduct 
activities (or develop best management practices) in a manner that 
avoids and minimizes effects to all wildlife, regardless of 
designation. Actions such as identifying opportunities to minimize 
potential wildlife/vehicle collisions, presence of wildlife on sites 
due to water or lighting are examples which would also improve site 
safety for operators and their employees. Further, since Forest Service 
lands are designated for multiple use, the commenter further recommends 
language or practices that avoid and/or minimize impacts on public 
recreation (or access to), namely wildlife related recreation (such as 
hunting, angling and wildlife watching) as a result of the activities.
    Agency Response: The Forest Service prefers language that is 
inclusive of all natural and cultural resources rather than calling out 
specific ones, such as wildlife. The words ``conflicts with other land 
uses'' has been added to clarify that the Forest Service considers 
these effects on land management as well as environmental impacts.
Section 228.106 Operator's Submission of Surface Use Plan of Operations
    31. Comment: Comments express support for the requirement for 
operators to include planned infrastructure or facilities in their 
surface use plan of operations, including those located outside of 
lease or agreement boundaries.
    Agency Response: The Department agrees. Though the permitting 
authorities are different and remain separate, the requirement serves 
to facilitate compliance with environmental laws such as the National 
Environmental Policy Act.
    32. Comment: A commenter expressed concern that the proposed rule 
removes existing subsection (d), which requires a supplemental use plan 
if an operator wants to do something that is not covered by the 
currently approved plan. The operator instead is directed to comply 
with sundry notice requirements in section 228.108 which are simpler. 
However, the proposed rule specifically states these changes are to 
prevent inconsistency with the BLM regulations. As addressed above, the 
mission and statutory mandate of the Forest Service is inconsistent 
with the BLM's mission and statutory mandate. Changes should not be 
made to Forest Service regulations to more align with an agency whose 
interests and aims are different than its own.
    Agency Response: The term ``supplemental use plan'' in the existing 
regulations has the same meaning and function as the term ``sundry 
notice'' used in 43 CFR part 3170, subpart 3171 and other relevant the 
BLM regulations and has not been changed.
    33. Comment: A commenter recommends that language in paragraph (b) 
be modified to also encourage the operator to coordinate with the State 
wildlife agency concerning local wildlife activities and wildlife 
recreation resources and uses. The commenter contends that the State 
wildlife agencies have the best data and information regarding wildlife 
and wildlife related recreational activities. Other comments state this 
section implies that there is no requirement to, nor expectation that, 
the lessee or operator will base a surface use plan on the best 
available information from the Forest Service nor any other appropriate 
Federal or State natural resource management agencies. These comments 
suggest that ``encourage'' should be ``require'' instead.
    Agency Response: The Department agrees with the premise that an 
operator's coordination with State agencies responsible for wildlife 
resources, or any resources, is advisable to ensure the best 
information available is used to develop its surface use plan of 
operation. The ``encourage'' language is consistent with 43 CFR part 
3170, subpart 3171 and serves as guidance to the operator for their 
benefit in avoiding unnecessary delays. A Forest Service regulation 
directing one agency to cooperate with another is not appropriate and 
the language has not been changed in the final rule. The Forest Service 
will continue its current practice of coordinating and consulting with 
agencies including the sharing of information.
    34. Comment: A commenter suggested deleting this section since its 
primary purpose is for implementing Onshore Order 1 and the section 
should not duplicate or confuse the regulatory requirements of the 
Order.
    Agency Response: The final rule retains this section as it provides 
direction that is supplemental to 43 CFR part 3170, subpart 3171.
Section 228.107 Review and Approval of Surface Use Plan of Operations
    35. Comment: Comments express opposition to proposed revisions in 
section 228.107 that would eliminate requirements that the authorized 
Forest Service officer give public notice of the Forest Service's 
decision on a surface use plan of operations and include in the notice 
that the decision is subject to appeal. Other commenters viewed the 
removal of the Forest Service's notification of decision on the surface 
use plan of operation as ceding authority to the BLM.
    Agency Response. In consideration of the first comment, new 
language has been added in paragraphs (b) and (e) to the final rule 
directing the Forest Service officer to give public notice of proposed 
and final decisions on a surface use plan of operation including the 
availability of an objection or appeal. The proposed rule in no way 
diminishes Forest Service's decision-making role. The regulation at 43 
CFR part 3170, subpart 3171specifically requires Forest Service 
approval of the surface use plan of operation before the BLM can 
approve an application for permit to drill. Additionally, the BLM 
cannot approve an application for permit to drill until any objection 
or appeal to the Forest Service of its decision on a surface use plan 
of operation is resolved.
    36. Comment: A commenter stated that the Forest Service must be 
able to add additional [lease] stipulations or other environmentally 
protective measures or requirements at the time of review and approval 
of surface use plan of operations and master surface use plans of 
operations. This allows the Forest Service to require up-to-date 
technology or best management practices that will protect public lands 
and to incorporate into the plans of operations protection for new 
sensitive species, locations of species, or sensitive ecosystems that 
have been found since the stipulations were submitted.
    Agency Response: There is no process where the BLM can unilaterally 
add stipulations to a lease once it is issued; except as provided by 
the lease itself.

[[Page 3654]]

Otherwise, lease holders must agree to an added stipulation. The 
leasing process provides considerable protection for various resources 
before, during, and after the surface use plan of operations review and 
approval process. First, the Forest Service uses the best available 
information when making leasing decisions. Second, at the time specific 
tracts are to be offered for lease, the Forest Service conducts an 
administrative review of the leasing decision. The review ensures that 
if there is significant new information or a circumstance that requires 
additional environmental analysis be conducted, or leasing would not be 
consistent with the applicable land management plan, the leasing 
consent would be withdrawn. Finally, once a lease is issued, regardless 
of the lack of a stipulation, the BLM, Forest Service, and operators 
are still responsible for compliance with the Endangered Species Act, 
National Historic Preservation Act, among other environmental laws. 
Compliance with these and other laws may lead to specific actions that 
on operator would need to take (or not take) in its conduct of 
operations.
Section 228.108 Sundry Notices
    37. Comment: Comments state that the proposed rule should provide 
specific language that (1) addresses what surface-disturbing activities 
must be considered; and (2) provides provisions requiring protection of 
these resources, including fisheries, wildlife, and plant habitat, and 
a requirement that the discovery of possible historical or cultural 
resources be reported to the Agency (as the current rule does at 
section 228.108(d)), and requirements for protection of habitat for all 
federally listed and proposed species, and Forest Service sensitive 
species and species of conservation concern.
    Agency Response: As required by 228.108(a), any activities that 
would cause effects on surface resources would require the Sundry 
notice to include a surface use plan of operations that is subject to 
the same Forest Service review and approval. The second part of the 
comment has been addressed in other responses to comments, including 
Comment 36.
    38. Comment: The proposed rule revises the sundry notices section 
to grant more authority to the BLM and removes oversight by the Forest 
Service. Again, the proposed rule changes Forest Service regulations to 
better align with--or in some instances mirror--the BLM regulations. 
This grants more authority over the use of forest land to an agency 
that was not established for the purpose of preserving the health and 
quality of forests and wildlife.
    Agency Response: The ``supplemental use plan'' in the existing 
regulation has the same meaning and function as the term ``sundry 
notice'' used in the final rule, 43 CFR part 3170, subpart 3171, and 
other relevant BLM regulations. The final rule's change in terminology 
from ``supplemental use plan'' to ``sundry notice'' and the 
reorganization for a stand-alone section 228.109 Sundry Notices do not 
change the roles and responsibilities of the Forest Service or the BLM.
Section 228.109 Bonds
    39. Comment: A commenter noted that the bond requirement is covered 
by Onshore Order 1 and much in this section is ``how to'' and is more 
appropriate for a Forest Service Manual or Handbook.
    Agency Response: The bonding requirements and procedures in this 
section are specific to the Forest Service and supplemental to 43 CFR 
part 3170, subpart 3171 and are responsive to the 1987 Reform Act. No 
changes have been made to the section from proposed to final rule.
    40. Comment: Many form letter comments stated that the proposed 
rule should require bonds to be posted up front and at sufficient value 
to cover the full cost of reclamation.
    Agency Response: The proposed and final regulation adequately 
provides for both the bond adequacy and posting requirement prior to 
ground-disturbing activities.
Section 228.110 Temporary Cessation of Operations
    41. Comment: A commenter suggested that the cessation of operations 
notification should occur after 30 days, not 45 days, and under (b) the 
Forest Service must require not ``may require'' that ``interim 
measures'' are implemented to protect public lands.
    Agency Response: Operators must notify the Forest Service when it 
becomes apparent that cessation of operations would last longer than 45 
days and that the notification occurs well before operations have 
actually been ceased for 45 days. The language in paragraph (b) has 
been modified, changing the ``may require'' to ``shall require as 
necessary'' interim measures to [protect resources] to remove the 
appearance that the authorize Forest Service officer can make arbitrary 
decisions regarding protection of resources.
Section 228.111 Compliance and Inspection and Section 228.112 Notice of 
Noncompliance
    42. Comment: The Forest Service must maintain a robust inspection 
and compliance regime to protect our resources from oil and gas 
pollution on Forest Service lands. This proposed rule substantially 
absolves both the Forest Service and the oil and gas operators from 
critical aspects of inspections, compliance, and enforcement. 
Troublingly, proposed new 36 CFR 228.111 removes the existing law's 
(228.112(c)) directive that operators must also comply with laws other 
agencies administer. These include many major environmental statutes 
like the Clean Water Act, Clean Air Act, and the Endangered Species 
Act, as well as cultural protection and oil and gas leasing laws. While 
removing this section does not change whether operators must still 
comply, it signals the Forest Service's intent to help operators who 
may be noncompliant with other agency statutes.
    Agency Response: The Department disagrees with this interpretation. 
The inspection and compliance protocols in the proposed regulation are 
clearer, more efficient, and will result in better outcomes. The 
section has been left largely unchanged from the proposed to final 
rules. The minor changes that were made are described in the section-
by-section discussion of changes from proposed to final rule.
    43. Comment: Commenters supported that the proposed rule moves 
notification of noncompliance ``from a two-step process to a one-step 
process'' and supported clarifications to an operator's remedial and 
appeal rights.
    Agency Response: As in our response to the previous comment, the 
Department expects the inspection and compliance protocols in the 
proposed regulation will result in better compliance administration.
    44. Comment: Comments state that the proposed revisions to section 
228.112 should not allow operators to request extensions of compliance 
deadlines when noncompliance results from factors that are within the 
operator's control.
    Agency Response: Noting that the Forest Service has sole discretion 
to extend a compliance deadline, the consideration of extension is 
based on risk of more damage to resources and the logistical ability to 
correct the noncompliance and not so much on the underlying cause.
    45. Comment: Comments state that the Forest Service must be in 
charge of noncompliance cases.

[[Page 3655]]

    Agency Response: Forest Service plays an important role in 
noncompliance issues related to surface uses, but the BLM remains the 
agency that issues and enforces permits.
    46. Comment: Acknowledging that this is a comment related to the 
Forest Service Manual or Handbook, a commenter suggested that in 
addition to a notice of noncompliance, a letter of ``appreciation for 
good compliance'' should be used as a positive management tool. If 
fully compliant operations are noticed and acknowledged, it often leads 
to an exceeding of ``basic compliance.'' Bragging rights in the oil 
patch are a large motivator for marginal operators to improve and 
compete.
    Agency Response: The Department agrees that the concept does not 
belong in this regulation and notes that the majority of operators on 
National Forest System lands diligently comply with the applicable laws 
and regulations and conditions of their permits. At times, operators 
undertake activities not required of them that serve the public's 
interests.
    47. Comment: Comments state that when noncompliance is likely to 
result in danger to public health or safety or in irreparable resource 
damage, operations shall be suspended, and the shut down shall remain 
in effect until operations are in compliance ``or it is unlikely that 
any remaining noncompliance will result in danger to public health, 
safety, or irreparable resource damage.'' The term ``or'' suggests that 
an operator may resume operations without fully coming into compliance 
with the requirements identified in the notice of noncompliance.
    Agency Response: The Department has modified text in the final rule 
to the effect that operations will remain shut down until the 
applicable requirements identified in the notice of noncompliance have 
been achieved.
    48. Comment: Comments express concern that the proposed rule 
removes penalties for continued non-compliance and allows for damage 
without punitive consequences. If operators fail to comply with their 
surface use plan, the proposed regulation establishes a no-harm-no-foul 
penalty structure. This structure is devoid of any substantive punitive 
measure and full of grace for noncompliant operators.
    Agency Response: For the very small percentage of noncompliant 
operators that cannot or will not come into compliance, their continued 
noncompliance could result in civil and criminal penalties under both 
the BLM and Forest Service regulations per paragraphs (e)(1) and (2) 
referrals. The objectives of avoidance of unnecessary impacts and 
diligent correction of violations that do occur can be achieved without 
establishing additional punitive measures.
    49. Comment: A State agency requested that the State wildlife 
agency also be notified of noncompliance for matters that have the 
potential to affect the statutory authority and public trust 
responsibility to manage wildlife. This could also include 
noncompliance for matters that have the potential to affect multiple 
use on Forest Service lands, namely wildlife related recreation (such 
as hunting, angling, and wildlife watching).
    Agency Response: The Forest Service is committed to cooperating 
with all State agencies to ensure that operations are conducted in 
compliance with all Federal, State, and local laws and regulations. 
This cooperation would include engaging State resource specialists when 
their agencies' authorities or responsibilities are relevant to oil and 
gas activities on National Forest System lands. The cooperation often 
occurs in the form of sharing of information and professional opinions.
Section 228.113 Material Noncompliance
    50. Comment: Comments state that proposed revisions to section 
228.113 unduly favor oil and gas by 1) reducing the factors considered 
in determining material non-compliance, and 2) making materiality 
determination and compliance referral largely discretionary. Comments 
also request language in section 228.113(a)(1) to clarify how 
irreparable resource damage will be addressed.
    Agency Response: The 1990 procedures in the existing regulation for 
oil and gas material noncompliance proceedings were designed to be 
consistent with other debarment procedures of the agency that are now 
defunct, thus prompting their replacement. The final rule's procedures 
are fair, reasonable, and consistent with both Forest Service and BLM 
policy. The final rule provides clarity to the procedures to be 
followed for determining if an operator is in material noncompliance 
with reclamation or other requirements or standards to better reflect 
the requirements and consequences established in the Mineral Leasing 
Act. The final rule does not materially change an operator's 
requirements and responsibilities.
    51. Comment: Referring to section 228.113 (c), in cases of material 
noncompliance, ``the Forest Service shall advise the BLM not to issue 
or approve the assignment of any lease to the entity determined to be 
in material noncompliance,'' a commenter suggested the proposed rule 
should be modified to clarify that this advisement is binding until the 
operator comes into compliance. Additionally, relating to section 
228.113 (c) and (d), the commenter suggested a minimum time period 
should be applied during which the operating entity may not be approved 
for a lease, regardless of when they come back into compliance.
    Agency Response: The comment prompted us to review the language of 
the paragraph. The final rule removes the ``advise'' language and 
simply requires the Forest Service to notify the BLM of its findings. 
Per statute, the BLM administers the ineligibility of an entity to 
acquire a new lease. Notably, section 17(g) of the Mineral Leasing Act 
of 1920 as amended (MLA), 30 U.S.C. 226(g), provides: ``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.'' For the 
second part of the comment, the ``minimum time period'' suggestion 
appears punitive and unnecessary as discussed in our response to 
comment 48.-.
Section 228.114 Posting Requirements
    52. Comment: The proposed posting requirements will no longer 
provide direction about posting decisions. The Agency's explanation is 
that the National Environmental Policy Act regulations direct that 
action. Again, this is a situation where the Agency removes a required 
internal procedure in favor of meeting the bare minimum required by the 
National Environmental Policy Act.
    Agency Response: Changes to the minimum posting durations are in 
alignment with BLM's processes. The Department anticipates that the 
public will not perceive any reduction of notifications concerning 
these actions or the ability to engage with the Forest Service.

[[Page 3656]]

Section 228.115 Information Collection Requirements
    53. Comment: USDA requested comments on whether the proposed rule 
would lessen the burden of collecting and reporting information and 
data as advocated by the Paperwork Reduction Act of 1995. Industry 
commenters generally appeared to believe that aligning Forest Service 
oil and gas leasing regulations with BLM regulations, as proposed, 
should decrease the paperwork burdens on lessees, operators and small 
businesses in the oil and gas industry.
    Agency Response: The Department expects there to be some 
efficiencies gained, though small and unquantifiable.

Conforming Technical Amendments

    This final rule makes minor, non-substantive changes to two other 
regulations for purposes of conforming with the modifications being 
made to 36 CFR part 228, subpart E.
    In 36 CFR 214.4(b)(3), the phrase ``request to supplement a surface 
use plan of operation'' is changed to ``requests concerning the surface 
use portion of a sundry notice'' to track language in the final rule. 
The final rule also adds two additional appealable decisions: (1) 
requests for a waiver or exemption from, or modification to, an oil and 
gas lease stipulation, and (2) requests for an extension of the time 
period for taking action in response to a notice of noncompliance.
    In 36 CFR 261.2, which includes definitions applicable to the 
Agency's law enforcement regulations, the definition of ``operating 
plan'' is changed by replacing the phrase ``supplemental surface use 
plan of operation'' with ``surface use portion of a sundry notice.''

Regulatory Certifications

Executive Order 12866 Regulatory Planning and Impact Analysis (Analysis 
of Costs and Benefits)

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs in the Office of Management and 
Budget (OMB) will review all significant regulatory actions. The Office 
of Information and Regulatory Affairs has determined that this rule is 
significant pursuant to section 3(f) of E.O. 12866. Therefore, a 
regulatory impact analysis analyzing the costs and benefits of the 
proposed regulation was needed to comply with E.O. 12866. The potential 
benefits and costs, as well as distributional impacts, associated with 
the proposed rule were analyzed to fulfill the regulatory impact 
analysis requirements, consistent with E.O.12866 and OMB Circular A-4.
    The regulatory impact analysis considers costs and benefits 
associated with updates, modifications, or clarifications to different 
sections of 36 CFR part 228, subpart E, as they relate to key 
procedural steps for oil and gas leasing and permitting on National 
Forest System lands. Changes in costs and benefits are discussed in a 
primarily qualitative manner due to the challenges with quantifying 
costs and benefits at a programmatic level. Quantitative proxies were 
used when feasible to help describe the potential frequency or 
magnitude of activities and corresponding costs affected by the 
proposed rule.
    The direct benefits of the proposed rule identified were reduced 
costs and time spent on identifying available lease areas, approving 
operations, and addressing compliance actions, including costs and time 
incurred by the Agency as well as by proponents engaged in or pursuing 
oil and gas operations on National Forest System lands. Indirect 
benefits can result from expedited access to leasable oil and gas 
resources on National Forest System lands, including time-valued oil 
and gas revenue or returns to operators as well as time-valued bids, 
lease rentals, and royalties paid by operators to the Federal 
government and public.
    Some operators may have to apply for special use authorizations or 
pay an administrative fee to mitigate emergency non-compliance 
situations under the rule; however, these situations are expected to be 
infrequent or involve relatively small incremental costs. Rule 
provisions clarifying considerations for establishing bonds that cover 
the full cost of reclamation, consistent with the existing rule, may 
result in increases in bonds and increases in operator costs for 
obtaining financial guarantees (such as surety bonds) to cover 
incremental bond amounts. The financial risks associated with 
reclamation default are currently borne by the Agency or public when 
bonds do not reflect full reclamation costs, implying this rule helps 
transfer the burden of those financial risks to the operators and 
administer reclamation in a fiscally responsible manner, consistent 
with the intent of the existing rule. These analyses are updated using 
fiscal year 2022 data. The updates do not change the conclusions of the 
draft rule analysis. The final rule is not expected to have a 
significant or measurable impact on rates of oil and gas production on 
National Forest System lands; oil and gas prices and other market 
factors are likely to drive future changes in growth of development and 
production. Because of minimal impacts on production, the rule is 
equally unlikely to have significant distributional impacts on jobs or 
income contributions from oil and gas activities on National Forest 
System lands.
    The rule is expected to result in positive net benefits. Most 
provisions of the rule are expected to reduce the times for reviewing 
and approving leases and permits, thereby saving operator and Agency 
costs and expediting opportunities for production and revenue. 
Exceptions might include cases where some operators may have to apply 
for special use authorizations, pay an administrative fee to mitigate 
emergency non-compliance situations under the rule, or be faced with 
increases in reclamation bond amounts. However, these situations are 
expected to be infrequent, involve relatively small incremental costs, 
or consist of payments that shift financial risk of reclamation default 
back to the operators and away from the public, consistent with the 
intent of the existing rule. The regulatory impact analysis is 
available with the supporting documents at <a href="http://www.regulations.gov">http://www.regulations.gov</a>.

Executive Order 14192 Unleashing Prosperity Through Deregulation

    Executive Order 14192 requires that any new incremental costs 
associated with significant new regulations ``shall, to the extent 
permitted by law, be offset by the elimination of existing costs 
associated with at least 10 prior regulations.'' This final rule is 
expected to be deregulatory under E.O. 14192.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs has determined that 
this rule is not a major rule as defined by 5 U.S.C. 804(2). Findings 
in the regulatory impact analysis for the rule indicate that it is 
unlikely to have significant impacts on job or income contributions 
from oil and gas activities on National Forest System lands. Therefore, 
the revised regulation is not classified as major.

Energy Effects

    The rule was reviewed under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. The rule is not expected to have a measurable 
effect (positive or negative) on oil and/or gas supply or distribution. 
The Agency regulation does not make decisions about which lands are 
open or closed to

[[Page 3657]]

leasing and subsequent development but instead manages the process. The 
rule streamlines the oil and gas leasing process and clarifies 
processing procedures for the surface use plan of operation portion of 
an application for permit to drill on National Forest System lands. The 
streamlining should reduce time and costs of permitting or leasing.
    The rule is not expected to have a significant adverse effect on 
the supply, distribution, or use of energy; on competition or prices; 
or on other agency actions related to energy. The rule is not expected 
to raise novel issues regarding adverse effects on energy. The rule is 
therefore not expected to be a significant energy action or to require 
a statement of energy effects, consistent with Office of Management and 
Budget guidance for implementing Executive Order 13211.

Reducing Regulation and Controlling Regulatory Costs (Executive Order 
13771)

    The Agency has reviewed this rule under U.S. Department of 
Agriculture procedures and Executive Order 13771, issued January 30, 
2017. The Office of Management and Budget has reviewed this rule and 
designated it as significant per Executive Order 12866. Executive Order 
13771 requires that agencies account for the incurred costs that a 
significant regulatory action may have on the public and offset such 
costs with the removal of two other significant regulatory actions.
    The total or aggregate net benefits associated with the rule cannot 
be quantified; however, they are expected to be small or slightly more 
than the estimated Agency cost savings. Thus, the rule is considered a 
deregulatory action per Executive Order 13771.

National Environmental Policy Act

    The Agency prepared a programmatic environmental assessment to 
determine whether this rule would have a significant impact on the 
quality of the human environment under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.). The programmatic 
environmental assessment describes and analyzes two alternatives: the 
rule (proposed action) and continuing with the existing regulations (no 
action). The programmatic environmental assessment is available for 
review with the supporting documents for this regulation at <a href="http://www.regulations.gov">http://www.regulations.gov</a>. The final programmatic environmental assessment 
supports a finding of no significant impact for the rule; therefore, 
preparation of an environmental impact statement pursuant to the 
National Environmental Policy Act is not required.

Consultation and Coordination With Indian Tribal Governments (Executive 
Order 13175)

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175. Executive Order 13175 requires Federal agencies 
to consult and coordinate with Tribes on a government-to-government 
basis on policies that have Tribal implications (including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions) that have substantial direct effects on one or 
more Indian Tribes, on the relationship between the Federal government 
and Indian Tribes, or on the distribution of power and responsibilities 
between the Federal government and Indian Tribes. To ensure Tribal 
perspectives were heard and fully considered during rulemaking, the 
Agency contacted all federally recognized Indian Tribes and Alaska 
Native Corporations in accordance with Executive Order 13175, 
(Consultation and Coordination with Indian Tribal Governments); USDA 
Departmental Regulation 1350-02 (Tribal Consultation, Coordination and 
Collaboration); and Forest Service Handbook 1509.13, chapter 10 
(Consultation with Indian Tribes and Alaska Native Corporations). The 
Agency initiated formal consultation on the rulemaking by contacting 
the Indian Tribes and Alaska Native Corporations by mail.
    The consultation period began in September 2018 and continued until 
January 2, 2021, or 60-days beyond the close of the 60-day public 
comment period on the proposed rule. Consultation materials included 
the advance notice of proposed rulemaking, briefing documents that 
outline possible revisions of the existing regulations and the reasons 
why these changes are being proposed, a list of frequently asked 
questions, and two webinars.
    The consultation process included two in-person regional Tribal 
consultation meetings in the Forest Service's Southwest Region: one was 
held on October 29, 2018, in Albuquerque, New Mexico, and the other on 
October 31, 2018, in Flagstaff, Arizona. During the consultation 
meeting on October 31, 2018, the Hopi Tribe requested additional face-
to-face consultation with the Regional Forester. The Agency also 
received written comments from the Hopi Tribe and the Rincon Band of 
Luiseno Indians by letter and from the Federated Indians of Graton 
Rancheria by email. Most comments stated that the Tribes will be 
provided additional review and comment once the Agency releases the 
proposed rule, as part of the consultation process.
    An invitation to consult on the proposed revisions to our Oil and 
Gas Resources regulations was sent to all Tribal leaders or their 
representative on the September 1, 2020, date of the proposed rule's 
publication. The invitation included information about two upcoming 
webinars on September 22 and 23, 2020, as well as a 228E change 
comparison table and a summary analysis of the proposed rule.
    Tribal comments were received and considered on the proposed rule 
through consultation efforts. Tribal communications centered around 
acknowledgement of the proposed regulations and included requests for 
extension of the public comment time. Though the Forest Service 
declined to extend the 60-day public comment period, the Agency 
responded to requests for an extension by clarifying that the Tribal 
consultation period was open until January 2, 2021, or 60-days beyond 
the 60-day public comment period. Additional comments were not 
submitted during that time.
    The Director of the Office of Tribal Relations certified by 
signature that the review and analysis of the 228E regulation revision 
was conducted in accordance with Departmental Regulation 1350-002, 
Tribal Consultation and Executive Order 13175, Consultation and 
Coordination with Indian Tribal Governments.

Regulatory Flexibility Act and Small Business Analysis

    The Agency considered the impacts of the rule on small entities, 
consistent with requirements of the Regulatory Flexibility Act, as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, and Executive Orders 13272 and 13563 (Proper Consideration of 
Small Entities in Agency Rulemaking). Under the Regulatory Flexibility 
Act, whenever an agency is required to publish a notice of rulemaking 
for any proposed or final rule, it must prepare and make available for 
public comment a regulatory flexibility analysis that describes the 
effects of the rule on small entities (such as small businesses, small 
organizations, and small government jurisdictions). However, no 
regulatory flexibility analysis is required if the head of the agency 
certifies the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities potentially 
impacted by the proposed rule include small

[[Page 3658]]

businesses (firms) involved in oil and gas extraction operations (North 
American Industry Classification System (NAICS) 211120 (crude petroleum 
extraction) and NAICS 211130 (natural gas extraction)), drilling oil 
and gas wells (NAICS 213111), and support activities for oil and gas 
operations (NAICS 213112). The rule does not affect the terms, 
conditions, and stipulation of existing leases. The rule can impact 
businesses that express interest in or decide to bid on new leases or 
otherwise decide to engage in oil and gas development and operations on 
National Forest System lands currently under lease or that may come 
under lease in the future. The rule provides both direct and indirect 
benefits to small businesses depending on whether the business holds 
leases or provides drilling and other support services.
    There were 260 different firms operating oil and gas producing 
wells on National Forest System lands as of September 2022, of which 
249 (96 percent) are estimated to be small businesses based on the 
Small Business Administration small business criterion of 1,250 
employees for NAICS 211120 and NAICS 211130. The rule will primarily 
impact a subset of operators that express interest in leasing National 
Forest System lands or applying for permits to drill new wells on lands 
managed by the Forest Service in the future. As an estimate for the 
subset of affected small businesses, the Forest Service used the 
average of 75 surface plans of operations for new wells that were 
approved annually, from 2018 through 2022, and assumed each new surface 
use plan of operations is submitted by a different firm (which is 
unlikely and provides a high side estimate). Other aspects of the rule 
will likely go unnoticed by operators. For example, compliant operators 
will likely experience no effects from new procedures that the Agency 
will follow to monitor for compliance. For comparison to the effect on 
75 small businesses annually, the estimated number of small firms 
associated with the oil and gas extraction sector (NAICS 211120 and 
NAICS 211130) for the Nation is approximately 4,500 based on Census 
Bureau, 2020 statistics for U.S. businesses. Therefore, the percent of 
small businesses impacted by the rule on an annual basis is projected 
to be small (75 of 4,500 is 1.7 percent).
    The aggregate impact of the rule, compared to baseline regulatory 
conditions, is expected to be positive for a majority of the entities 
involved in oil and gas leasing, development, and operations on 
National Forest System lands, as noted in the regulatory impact 
analysis. Provisions of the rule are expected to reduce the times for 
reviewing and approving leases and permits, thereby saving operator 
costs and expediting opportunities for production and revenue. 
Exceptions might include cases where some operators (i) may be faced 
with increases in costs to obtain financial guarantees (such as surety 
bonds) to cover incremental increases in bond amounts to help cover 
full reclamation costs consistent with the existing rule, (ii) have to 
apply for special use authorizations, or (iii) pay an administrative 
fee to mitigate emergency non-compliance situations under the rule 
(however, these situations are expected to be infrequent, involve 
relatively small incremental costs, or reflect transfers of financial 
risk back to operators as intended by the existing rule). Based on the 
evidence summarized above, the rule is expected to increase 
opportunities for net benefits to small entities on average. The number 
of small entities that would be impacted is not likely to be 
substantial. The Department therefore certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities indicating that an initial regulatory flexibility analysis is 
not required.
    More information on the Regulatory Flexibility Act and Small 
Business Regulatory Enforcement Fairness Act determination is available 
with the supporting documents for this regulation at <a href="http://www.regulations.gov">http://www.regulations.gov</a>.

Federalism

    The Agency considered this rule under the requirements of Executive 
Order 13132, Federalism. The Agency has concluded that the rule 
conforms to the federalism principles set out in this Executive Order. 
It will not impose any compliance costs on the States and will not have 
substantial direct effects on the States or the relationship between 
the National Government and the States, or on the distribution of power 
and responsibilities among the various levels of government. Therefore, 
the Agency has determined that no further assessment of federalism 
implications is necessary.

Taking of Private Property (Executive Order 12630)

    This rule has been analyzed in accordance with the principles and 
criteria contained in Executive Order 12630, Governmental Actions and 
Interference with Constitutionally Protected Property Rights, and it 
has been determined that the rule does not pose the risk of a taking of 
protected private property. This rule affects management of Federal oil 
and gas resources and does not apply to privately held oil and gas 
rights.

Civil Justice Reform (Executive Order 12988)

    This rule complies with the requirements of Executive Order 12988. 
More specifically, this rule meets the criteria of section 3(a), which 
requires agencies to review all regulations to eliminate errors and 
ambiguity and to write all regulations to minimize litigation. This 
rule also meets the criteria of section 3(b)(2), which requires 
agencies to write all regulations in clear language with clear legal 
standards.

Unfunded Mandates Reform Act

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1531-1538), the Agency has assessed the effects of the rule on 
State, local, and Tribal governments, and on the private sector. This 
rule would not compel the expenditure of $100 million or more by State, 
local, or Tribal governments, in the aggregate, or by the private 
sector. Therefore, this rule is not subject to the requirements of 
sections 202 and 205 of the Unfunded Mandates Reform Act.

Paperwork Reduction Act

    This final rule contains a collection of information for which the 
Agency is following the requirements of the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.). The final rule does not establish any new 
information collection requirements.

List of Subjects

36 CFR Part 214

    Administrative practice and procedure, National forests.

36 CFR Part 228

    Environmental protection, Mines, National forests, Oil and gas 
exploration, Lands--mineral resources, Public lands--rights-of-way, 
Reporting and recordkeeping requirements, Surety bonds, Wilderness 
areas.

36 CFR Part 261

    Law enforcement, National forests.

    Therefore, for the reasons set forth in the preamble, the Forest 
Service is amending chapter II of title 36 of the Code of Federal 
Regulations as follows:

[[Page 3659]]

PART 214--POST-DECISIONAL ADMINISTRATIVE REVIEW PROCESS FOR 
OCCUPANCY OR USE OF NATIONAL FOREST SYSTEM LANDS AND RESOURCES

0
1. The authority citation for part 214 continues to read as follows:

    Authority: 7 U.S.C. 1011(f); 16 U.S.C. 472, 551.


0
2. Amend Sec.  214.4 by revising paragraph (b)(3) to read as follows:


Sec.  214.4  Decisions that are appealable.

* * * * *
    (b) * * *
    (3) Approval or denial of a surface use plan of operations, request 
concerning the surface use portion of a sundry notice, request for a 
waiver or exception from or modification to an oil and gas lease 
stipulation, shut down of oil and gas operations, issuance of a notice 
of noncompliance, or denial of a request for noncompliance notice 
deadline extension pursuant to 36 CFR part 228, subpart E;
* * * * *

PART 228--MINERALS

0
3. The authority citation for part 228 continues to read as follows:

    Authority: 16 U.S.C. 478, 551; 30 U.S.C. 226, 352, 601, 611; 94 
Stat. 2400.


0
4. Revise subpart E to read as follows:
Subpart E--Oil and Gas Resources
Sec.
228.100 Scope and applicability.
228.101 Definitions.
228.102 Issuance of notices to lessees and operators.
228.103 Leasing analysis and consent decision.
228.104 Consideration of requests to waive, except, or modify lease 
stipulations.
228.105 Responsibilities of operators.
228.106 Operator's submission of surface use plan of operations.
228.107 Review and approval of surface use plan of operations.
228.108 Sundry notices.
228.109 Bonds.
228.110 Temporary cessation of operations.
228.111 Compliance and inspection.
228.112 Notice of noncompliance.
228.113 Material noncompliance.
228.114 Posting requirements.
228.115 Information collection requirements.

    Authority: 16 U.S.C. 478, 551; 30 U.S.C. 226, 352, 601, 611.

Subpart E--Oil and Gas Resources


Sec.  228.100  Scope and applicability.

    (a) Scope. This subpart sets forth the rules and procedures by 
which the Forest Service, United States Department of Agriculture will 
carry out its statutory responsibilities for the conservation of 
surface resources associated with oil and gas leasing on National 
Forest System lands, for approving surface use requirements related to 
exploration and development on National Forest System lands, for 
inspecting surface-disturbing operations on such leases, and for 
enforcing surface use and reclamation requirements. This subpart also 
establishes requirements for lessees and/or operators to minimize, 
mitigate, or prevent unnecessary or unreasonable impacts on National 
Forest System lands and resources.
    (b) Applicability. The rules of this subpart apply to National 
Forest System lands subject to Federal oil and gas leases, and to 
operations that are conducted within such leases. The regulations in 
this subpart do not apply to the development of non-Federal oil and gas 
interests pursuant to reserved and outstanding rights.
    (c) Applicability of other rules. Other rules that apply are:
    (1) Application requirements for proposing oil or gas wells, along 
with the procedures the Federal agencies follow for approving oil and 
gas wells, certain subsequent well operations, and abandonment, are 
established in the Forest Service and Bureau of Land Management joint 
rule, Onshore Oil and Gas Order Number 1, now codified in 43 CFR part 
3170, subpart 3171.
    (2) The Bureau of Land Management regulations at 43 CFR parts 3160 
and 3170, and Bureau of Land Management-issued Notices to Lessees and 
Operators also apply to oil and gas leasing and operations on National 
Forest System lands, where applicable.
    (3) Surface uses associated with oil and gas activities that are 
conducted on National Forest System lands outside a lease or agreement 
are subject to Forest Service authorization under regulations set forth 
elsewhere in this chapter, including but not limited to the regulations 
set forth in 36 CFR part 251, subpart B, and 36 CFR part 261.


Sec.  228.101  Definitions.

    For the purposes of this subpart, the terms listed in this section 
have the following meaning:
    Acquired lands. Lands that are obtained by purchase, donation, or 
other mechanism, and which have previously been patented and which have 
been reacquired by the United States.
    Agreement. A Bureau of Land Management-approved Oil and Gas Unit 
Agreement or Communitization Agreement (see 43 CFR 3100.5).
    Authorized Forest Service officer. The Forest Service line officer 
who has the delegated authority to take the action described in this 
subpart is generally, depending on the scope and level of the duty to 
be performed, a regional forester; a forest, grassland, or prairie 
supervisor; or a district ranger.
    Compliance Officer. The Deputy Chief, National Forest System; or 
the Associate Deputy Chief, or other line officer designated to act in 
the absence of the Deputy Chief.
    Conditions of approval. Site-specific requirements shall be 
included with the approval of a surface use plan of operations where 
necessary to limit or modify the specific activities covered in the 
plan. Conditions of approval minimize, mitigate, or prevent impacts on 
National Forest System lands, resources, and interests.
    Consent. For the purposes of this subpart means to notify the 
Bureau of Land Management that either the Forest Service does not 
object to leasing specific National Forest System lands reserved from 
the public domain or consents to leasing on specific acquired lands, 
subject to general terms and conditions and specified stipulations.
    Final Abandonment Notice (FAN). An operator submits a FAN to notify 
the Bureau of Land Management and the surface management agency that 
final reclamation has been completed, that the surface has been 
reclaimed in accordance with previous approval(s), and that the well 
site or other facility is ready for inspection and consideration for 
release from liability under the bond.
    Infrastructure or facilities. The basic physical components (such 
as buildings, roads, power supply, equipment, pipelines, storage tanks) 
associated with the development and production of oil and gas, whether 
located within or outside a lease or agreement boundary.
    Lease. Any contract or other agreement issued or approved by the 
United States under a mineral leasing law that authorizes exploration 
for, extraction of, or removal of oil or gas.
    Lessee. A person or entity holding record title in a lease issued 
by the United States. A lessee also may be an operating rights owner if 
the operating rights in a lease or portion thereof have not been 
severed from record title (see 43 CFR 3100.5).
    Master development plan. A plan submitted by an operator(s) to the 
Bureau of Land Management that contains information common to multiple 
planned wells, including drilling plans, surface use plans of 
operations, and plans for future production.
    Master surface use plan of operations. A plan for surface use, 
disturbance, and reclamation for two or more wells.

[[Page 3660]]

    Material noncompliance. A Forest Service determination that an 
operator or lessee has materially failed or refused to take necessary 
corrective actions, complete reclamation, maintain required bonds, or 
reimburse the Agency for the costs of abating an emergency, as further 
described in Sec.  228.113, in a timely manner.
    National Forest System lands. All lands, waters, or interests 
therein administered by the U.S. Department of Agriculture (USDA) 
Forest Service as provided in 16 U.S.C. 1609.
    Notices to Lessees and Operators. A written notice issued by the 
authorized Forest Service officer or the Bureau of Land Management. 
Notices to Lessees and Operators serve as requirements related to 
specific item(s) of importance within a State, Forest Service region, 
national forest, grassland or prairie, or ranger district, or other 
area.
    Operator. Any person or entity, including, but not limited to, the 
lessee or operating rights owner, who has stated in writing to the 
authorized officer of the Bureau of Land Management that the person or 
entity is responsible under the terms and conditions of the lease for 
the operations conducted on the leased lands or a portion thereof.
    Reasonably Foreseeable Development Scenario (RFDS). A projection of 
oil and gas exploration, development, production, and reclamation 
activity. The RFDS estimates the oil and gas activity in a defined area 
for a specified period of time. The RFDS projects a baseline scenario 
of activity assuming all potentially productive areas are open to lease 
under standard lease terms, except those areas designated as closed to 
leasing by statute or regulation or areas withdrawn by the Secretary of 
the Interior.
    Stipulation. A provision that modifies standard lease terms and is 
attached to, and made a part of, the lease by the Bureau of Land 
Management. The Forest Service may include stipulations as part of its 
consent to lease determination to conserve surface resources and to 
minimize, mitigate, or prevent adverse impacts on lands and resources. 
Stipulations constrain where, when, or how the surface lands may be 
used for exploration and development activities.
    Sundry notice. An operator's request submitted to the Bureau of 
Land Management to perform work or conduct lease operations not covered 
by another type of permit or authorization, or to change operations in 
a previously approved permit; or a subsequent report of completed 
activities; or a final abandonment notice.
    Surface use plan of operations. A plan for surface use, 
disturbance, and reclamation, and is a component of an application for 
permit to drill or sundry notice. The requirements for the surface use 
plan of operations are described in detail in 36 CFR 228.107, as well 
as 43 CFR part 3170, subpart 3171.
    Waiver, exception, or modification. Refers to a change to a lease 
stipulation including:
    (1) Waiver. Permanent exemption from a lease stipulation. The 
stipulation no longer applies anywhere within the lease.
    (2) Exception. Case-by-case exemption from a lease stipulation. The 
stipulation continues to apply to all other sites within the lease to 
which the restrictive criteria, as described in the lease stipulation, 
apply.
    (3) Modification. A change to the provisions of a lease 
stipulation, either temporarily or for the term of the lease. A 
modification may, therefore, include an exemption from or alteration to 
a stipulated requirement. Depending on the specific modification, the 
stipulation may or may not apply to all other sites on the lease to 
which the restrictive criteria, as described in the lease stipulation, 
apply.


Sec.  228.102  Issuance of notices to lessees and operators.

    The authorized Forest Service officer may issue Notices to Lessees 
and Operators necessary to implement the regulations of this subpart 
either independently with notification to the Bureau of Land Management 
or jointly with the Bureau of Land Management. Notices to Lessees and 
Operators apply to all operations conducted by Federal lessees on 
National Forest System lands supervised by the authorized Forest 
Service officer who issued such notice.


Sec.  228.103  Leasing analysis and consent decision.

    (a) Scheduling leasing consent analysis. The Forest Service 
Washington Office shall develop, in cooperation with the Bureau of Land 
Management, Forest Service regional offices, and national forest and 
grassland units, a schedule for analyzing all National Forest System 
lands with oil and gas resource potential for leasing in consideration 
of the following:
    (1) The schedule shall identify whether each analysis will be part 
of a land management plan or will be a separate leasing analysis.
    (2) Scheduling shall consider the level of leasing interest 
expressed by the public.
    (3) The Forest Service shall review, revise, or make additions to 
the schedule at least annually.
    (b) Leasing consent analysis. The authorized Forest Service officer 
shall conduct a forest-wide or area-specific leasing analysis in either 
a land management plan or a separate leasing analysis. The Bureau of 
Land Management shall be invited to participate as a cooperating agency 
in the leasing consent analysis. In determining lands open or closed 
for leasing, the authorized Forest Service officer shall:
    (1) Identify and exclude from further review the lands which are 
ineligible for leasing by statute, regulation, or withdrawal by the 
Secretary of the Interior.
    (2) Consider a Reasonably Foreseeable Development Scenario that 
projects the type/amount of post-leasing activity that is reasonably 
foreseeable on eligible lands within the analysis area.
    (3) Develop reasonable alternatives, including a no-leasing 
alternative. The alternatives must include lease stipulations that 
would be applied.
    (4) Analyze the impacts of post-leasing activity projected under 
this paragraph (b)(4).
    (5) Develop lease stipulations that are consistently applied and 
coordinated between agencies and are only as restrictive as necessary 
to protect the resource or resources for which the stipulations are 
applied.
    (6) Include, in the analysis, maps showing lands open to leasing, 
lands closed to leasing, and applicable stipulations for each 
alternative.
    (c) Leasing consent decision. (1) Upon completion of the leasing 
consent analysis, the authorized Forest Service officer shall issue a 
leasing consent decision to the authorized officer of the Bureau of 
Land Management that identifies all National Forest System lands 
covered by the leasing consent analysis as:
    (i) Open to leasing, subject to the terms and conditions of the 
standard oil and gas lease form (including an explanation of the 
typical standards and objectives to be enforced under the standard 
lease terms);
    (ii) Open to leasing, subject to constraints that will require the 
use of lease stipulations; or
    (iii) Closed to leasing, distinguishing between those areas that 
are being closed through exercise of management direction and those 
areas that are closed by virtue of a statute, regulation, or 
withdrawal.
    (2) Leasing consent decisions made pursuant to this subpart shall 
be subject to a predecisional objection process conducted in accordance 
with the procedures set forth in 36 CFR part 219, subpart B, whether 
the leasing consent

[[Page 3661]]

decision is made as part of a land management plan or separately.
    (d) Effect of leasing consent decision. An authorized Forest 
Service officer's identification of lands as open to leasing does not 
commit the Bureau of Land Management to future leasing actions, nor 
does it constitute an irretrievable or irreversible commitment of 
resources.
    (e) Review of leasing consent availability decision for specific 
lands. (1) At the time specific lands identified under paragraph (c) of 
this section are scheduled for leasing by the Bureau of Land 
Management, the Forest Service shall review the leasing consent 
availability decision to:
    (i) Verify that oil and gas leasing of the specific lands has been 
adequately addressed in a National Environmental Policy Act (NEPA) 
document and is consistent with the applicable land management plan;
    (ii) Ensure lease stipulations are applied consistent with the 
leasing consent decision and reflect resource conditions on the lands 
in the nomination; and
    (iii) Determine that operations and development could be allowed 
somewhere on each proposed lease, except where stipulations will 
prohibit all surface occupancy.
    (2) If there is significant new information or a circumstance that 
requires additional environmental analysis be conducted, or leasing 
would not be consistent with the applicable land management plan, 
leasing consent will not be provided or will be withdrawn.
    (3) The Forest Service will provide notification to the Bureau of 
Land Management of results of the review confirming the Forest Service 
consent decision for specific lands or withdrawing its leasing consent 
for specific parcels. If the consent is withdrawn, the notification 
will describe the reasons for the withdrawal and provide an anticipated 
course of action, including any additional environmental analysis to be 
conducted of the leasing consent analysis decision as expeditiously as 
possible consistent with paragraph (a) of this section.
    (4) Verification or withdrawal of a leasing consent determination 
made pursuant to this paragraph (e) is not subject administrative 
appeal or objection.


Sec.  228.104  Consideration of requests to waive, except, or modify 
lease stipulations.

    (a) General. (1) The Bureau of Land Management's oil and gas 
leasing regulations at 43 CFR 3101.14 and 3171.24 outline requirements 
for the lessee or their designated operators to request waivers, 
exceptions, or modifications to lease stipulations.
    (2) Where the request involves stipulations included in the lease 
as prescribed by the Forest Service, the Bureau of Land Management must 
obtain approval from the Forest Service before granting a request for a 
waiver, exception, or modification.
    (b) Requesting a waiver, exception, or modification. Requests to 
waive, except, or modify a lease stipulation are subject to procedures 
in 43 CFR part 3170, subpart 3171. In addition to information required 
in 43 CFR part 3170, subpart 3171, the operator should submit any 
information that might assist the authorized Forest Service officer in 
assessing whether or not to approve a waiver, exception, or 
modification.
    (c) Criteria for approval. A request for a waiver, exception, or 
modification to a lease stipulation may be approved by the authorized 
Forest Service officer if the officer determines the following, after 
reviewing the present condition of the surface resources involved and 
the nature, location, timing, and design of the proposed operations:
    (1) The action would be consistent with applicable Federal laws.
    (2) The action would be consistent with the current land management 
plan.
    (3) The management objectives which led the Forest Service to 
require the inclusion of the stipulation in the lease can be met if the 
waiver, exception, or modification is granted.
    (4) The action is acceptable to the authorized Forest Service 
officer based upon a review of the environmental consequences.
    (d) Coordination with other agencies. If a lease stipulation was 
included in a lease by the Forest Service at the request of another 
agency, or if another agency has specific jurisdiction over the 
specific resource, the authorized Forest Service officer shall 
coordinate with that agency prior to approving a waiver, exception, or 
modification. This paragraph (d) does not require the consent of such 
an agency to the waiver, exception, or modification unless such consent 
is independently required by statute or regulation.
    (e) Notice of determination. The authorized Forest Service officer 
shall notify the Bureau of Land Management in writing whether or not 
the request should be granted and shall provide all information used to 
make the determination.


Sec.  228.105  Responsibilities of operators.

    (a) General. The lessee or operator shall conduct operations on 
National Forest System lands in a manner that minimizes effects on 
surface resources and reduces conflicts with other land uses by 
avoiding unnecessary or unreasonable surface resource disturbance.
    (1) At a minimum, the operator must:
    (i) Control soil erosion and mitigate land instability caused by 
their operations;
    (ii) Control water runoff from their operations;
    (iii) Remove, or control, solid wastes, toxic substances, and 
hazardous substances attributable to their operations;
    (iv) Reshape and revegetate areas disturbed by their operations;
    (v) Remove structures, improvements, facilities, and equipment no 
longer needed in the conduct of operations, unless otherwise 
authorized;
    (vi) Take measures to preclude introduction of nonnative invasive 
species that could otherwise result from their operations;
    (vii) Take measures to reclaim surface areas disturbed by their 
operations;
    (viii) Unless otherwise approved by the authorized Forest Service 
officer, initiate interim reclamation activity within 1 year of 
completion of operations on the affected area. Interim reclamation 
shall be conducted concurrently with other operations; and
    (ix) Promptly clean up and remove from National Forest System 
lands, waters, or interests therein which are administered by the 
Forest Service or are designated for administration through the Forest 
Service as a part of the system (16 U.S.C. 1609) any released oil, 
produced water, toxic substances, or other contaminating substances 
attributable to their operations in accordance with all applicable 
Federal, State, and local laws and regulations.
    (2) Operators shall use existing roads and utility corridors 
wherever possible.
    (3) All spills or leakages of oil, gas, produced water, toxic 
liquids, or waste materials; blowouts; fires; personal injuries; and 
fatalities that are reported to the Bureau of Land Management according 
to applicable orders, notices to lessee, and/or approved surface use 
plan of operations shall also be reported to the authorized Forest 
Service officer.
    (b) Compliance with other statutes and regulations. The operator is 
responsible for complying with applicable Federal and State laws and 
regulations. The operator must also comply with notices to lessees 
issued pursuant to this subpart.
    (c) Access. Operators must allow authorized Forest Service 
employees access to drilling and production sites and to any other 
locations on National Forest System lands where operations pursuant to 
a lease are being conducted.

[[Page 3662]]

    (d) Other Forest Service authorizations. To the extent required by 
applicable statutes and regulations, the operator shall obtain other 
Forest Service authorizations such as timber contracts, road use 
permits, or special use authorizations for other uses of National 
Forest System lands.
    (e) Safety measures. (1) The operator must maintain structures, 
facilities, improvements, and equipment located on the area of 
operation in a safe and well-maintained manner and in accordance with 
the applicable approval(s).
    (2) The operator must take appropriate measures in accordance with 
applicable Federal and State laws and regulations to protect the public 
from hazardous sites or conditions resulting from the operations. Such 
measures may include, but are not limited to, posting signs, building 
fences, or otherwise identifying a hazardous site or condition.
    (3) The operator shall conduct its activities in a manner that 
avoids the cause or minimizes the spread of fire.
    (f) Liability. The operator and lessee are jointly and severally 
liable in accordance with Federal and State laws to the United States 
for:
    (1) Injury, loss, or damage, including fire suppression costs, 
incurred by the United States as a result of the operations; and
    (2) Payments made by the United States in satisfaction of claims, 
demands, or judgments for an injury, loss, or damage, including fire 
suppression costs, incurred as a result of the operations.


Sec.  228.106  Operator's submission of surface use plan of operations.

    (a) General. (1) The provisions of this section apply to both 
surface use plans of operations and master surface use plans of 
operations. Operators shall submit Applications for Permit to Drill or 
master development plans in accordance with 43 CFR part 3170, subpart 
3171, to the Bureau of Land Management. The application for permit to 
drill or master development plan shall include the surface use plan of 
operations or master surface use plan of operations.
    (2) A master surface use plan of operations can be submitted with a 
master development plan or with an individual application for permit to 
drill. If a master surface use plan of operations has been submitted, 
then subsequent Applications for Permit to Drill can reference the 
master surface use plan of operations if they are consistent with the 
master surface use plan of operations.
    (b) Preparation of the surface use plan of operations. In preparing 
a surface use plan of operations, the operator must ensure that it 
contains the mandatory components of 43 CFR part 1370, subpart 3171, 
and provisions of Sec.  228.105. The operator is also encouraged to 
contact the local Forest Service office to make use of such information 
as is available from the Forest Service concerning surface resources 
and uses, standard conditions of approval, environmental 
considerations, and local reclamation procedures. The surface use plan 
of operations must be consistent with lease terms and stipulations.
    (c) Content of surface use plan of operations. The type, size, and 
intensity of the proposed operations and the sensitivity of the 
affected surface resources by the proposed operations determine the 
level of detail and the amount of information which the operator 
includes in a proposed surface use plan of operations. The surface use 
plan of operations shall also include planned infrastructure or 
facilities, to the extent known, to be used to execute the surface use 
plan of operations. This submission should specify what facilities or 
infrastructure are located within lease or agreement boundaries, and 
those that are located outside lease or agreement boundaries.


Sec.  228.107  Review and approval of surface use plan of operations.

    (a) General. The provisions of this section apply to both surface 
use plans of operations and master surface use plans of operations. An 
operator must obtain an approved application for permit to drill from 
the Bureau of Land Management before conducting operations. No permit 
to drill on National Forest System lands may be granted without a 
Forest Service-approved surface use plan of operations covering 
proposed surface-disturbing activities. Approval or denial of a surface 
use plan of operations proposed to be documented in a Decision Notice 
or Record of Decision is subject to the predecisional objection process 
set forth in 36 CFR part 218 and post-decisional appeal process as 
provided in 36 CFR 214.4(b)(3).
    (b) Review. The authorized Forest Service officer shall give public 
notice of any proposed decision on a surface use plan of operations to 
be documented in a Decision Notice or Record of Decision and identify 
that the proposed decision is subject to the 36 CFR part 218 pre 
decisional objection process. The authorized Forest Service officer 
shall review the surface use plan of operations following the 
procedures in 43 CFR part 3170, subpart 3171, to ensure that:
    (1) The surface use plan of operations contains the mandatory 
components of 43 CFR part 1370, subpart 3171, and Sec.  228.105;
    (2) The surface use plan of operations is consistent with the 
lease, including the lease stipulations, and applicable Federal laws; 
and
    (3) To the extent consistent with the rights conveyed by the lease, 
the surface use plan of operations is consistent with, or can be 
modified to be consistent with, the applicable land management plan.
    (c) Analysis and decision. When the review of the surface use plan 
of operations is completed, the authorized Forest Service officer 
shall:
    (1) Approve the surface use plan of operations as submitted; or
    (2) Approve the surface use plan of operations subject to specified 
conditions of approval; or,
    (3) Deny the surface use plan of operations for the reasons stated.
    (d) Timing of decision. If a decision on a surface use plan of 
operation cannot be made within 30 days of a complete application, the 
authorized Forest Service officer shall advise the appropriate Bureau 
of Land Management office as soon as it becomes apparent that 
additional time will be needed to process the plan. The authorized 
Forest Service officer shall follow procedures described in 43 CFR part 
1370, subpart 3171, to explain why additional time is needed and 
project the date by which a decision on the surface use plan of 
operation will likely be made. The authorized Forest Service officer 
shall also notify the applicant of any action the applicant could take 
that would enable the Forest Service officer to issue a final decision 
on the surface use plan of operations.
    (e) Notice of decision. The authorized Forest Service officer shall 
give public notice of the final decision on a surface use plan of 
operations and identify in the notice that the decision may only be 
appealed by the applicant under 36 CFR part 214.
    (f) Notifying the Bureau of Land Management. The authorized Forest 
Service officer shall promptly notify the Bureau of Land Management if 
a surface use plan of operations is approved, including conditions of 
approval, if any, or whether it has been denied. This transmittal shall 
include the estimated additional surface use bond amount to be required 
(Sec.  228.109), if any.


Sec.  228.108  Sundry notices.

    (a) General. For activities that require a sundry notice under 
Bureau of Land

[[Page 3663]]

Management regulations (43 CFR 3162.3-2), the operator must submit the 
sundry notice to and obtain approval from the Bureau of Land 
Management. If the activity would cause effects on surface resources, 
the sundry notice must include a surface use plan of operations that is 
subject to Forest Service approval. The sundry notice need only address 
those operations that differ from those authorized by the current 
approved surface use plan of operations.
    (b) Review and approval. If Forest Service approval is required, 
the authorized Forest Service officer shall determine whether the 
activity would be subject to additional environmental review or 
analysis. If the activity would cause effects on surface resources not 
authorized by the currently approved surface use plan of operations, 
the sundry notice is subject to the same requirements of Sec. Sec.  
228.106 and 228.107. Following review or analysis, the authorized 
Forest Service officer shall notify the Bureau of Land Management 
whether the Forest Service approves the new surface use plan of 
operations.


Sec.  228.109  Bonds.

    (a) General. (1) As part of the review of a proposed surface use 
plan of operations, the authorized Forest Service officer shall review 
existing bond amount(s) to determine if they are sufficient to ensure 
complete and timely reclamation of surface disturbances and restoration 
of any lands or surface waters adversely affected by lease operations. 
The review shall include a determination of whether the performance 
bond held by the Bureau of Land Management is adequate to meet the 
requirements of this paragraph (a)(1).
    (2) If at any time prior to, or during the conduct of operations, 
the authorized Forest Service officer determines that the performance 
bond amount held by the Bureau of Land Management is not adequate to 
ensure complete and timely reclamation and restoration of National 
Forest System lands, the authorized Forest Service officer may review 
and require a bond amount specifically for reclaiming surface 
disturbance.
    (b) Considerations for reviewing bond adequacy. In assessing 
whether a bond is sufficient, the authorized Forest Service officer:
    (1) Shall consider the scope and full extent of the operator's 
proposed operations, associated surface disturbance, and 
infrastructure, and performance history and risk posed by the operator.
    (2) Shall consider the costs to the Forest Service to undertake 
reclamation or restoration actions in case of operator default.
    (c) Determining level of bond amount. If additional bonding is 
determined necessary, the authorized Forest Service officer may specify 
a bond amount to any level, provided that the amount does not exceed 
the total estimated cost of reclamation based on surface disturbance.
    (d) Posting bonds. If the authorized Forest Service officer 
determines that additional bonding is necessary, the officer shall give 
the operator the option of either increasing the bond held by the 
Bureau of Land Management or filing a separate reclamation bond with 
the Forest Service in the amount deemed adequate. The Forest Service 
must notify the Bureau of Land Management if the operator chooses to 
increase its Bureau of Land Management bond. If an additional surface 
use bond is determined to be necessary, the bond must be posted prior 
to commencing any surface-disturbing activities.
    (e) Bond release. When the Forest Service holds a bond, the 
operator may request that the Forest Service authorize an incremental 
reduction in bond amount at any time during operations as restoration 
or reclamation activities are completed. When the Bureau of Land 
Management holds the bond, an operator may request the authorized 
Forest Service officer to notify the Bureau of Land Management to 
reduce the bond amount. The authorized Forest Service officer shall, if 
appropriate, notify the Bureau of Land Management of the amount by 
which the bond may be reduced.


Sec.  228.110  Temporary cessation of operations.

    (a) General. As soon as it becomes apparent that there will be a 
temporary cessation of operations for a period of 45 days or more, the 
operator must verbally notify and subsequently file a written statement 
with the authorized Forest Service officer verifying the operator's 
intent to maintain structures, facilities, improvements, and equipment 
that will remain on the area of operation during the cessation of 
operations, and specifying the expected date by which operations will 
be resumed.
    (b) Interim measures. The authorized Forest Service officer shall 
require, as necessary, the operator to take reasonable interim 
reclamation or erosion control measures to protect surface resources 
during temporary cessation of operations, including during cessation of 
operations resulting from adverse weather conditions.
    (c) Notice of operations. The operator shall notify the authorized 
Forest Service officer at least 48 hours prior to resuming operations 
following a temporary cessation of 45 days or more.


Sec.  228.111  Compliance and inspection.

    (a) General. Operations must be conducted in accordance with this 
subpart, the applicable lease (including stipulations made part of the 
lease at the direction of the Forest Service), an approved surface use 
plan of operations, applicable Bureau of Land Management regulations at 
43 CFR part 3170, and applicable Notices to Lessees and Operators 
(Sec.  228.102).
    (b) Inspection of operations. The Forest Service shall periodically 
inspect the area of operations to determine and document whether 
operations are being conducted in compliance with the requirements in 
paragraph (a) of this section.
    (c) Inspection of reclamation. The Forest Service shall inspect 
sites for reclamation compliance when a Final Abandonment Notice is 
submitted. The Forest Service shall ensure that reclamation meets the 
requirements of the approved surface use plan of operations and Sec.  
228.105. The Forest Service shall promptly notify the Bureau of Land 
Management in writing when reclamation is satisfactory.
    (d) Penalties. If surface-disturbing operations are being conducted 
that are not authorized by an approved surface use plan of operations, 
or that violate a term or operating condition of an approved surface 
use plan of operations, the entity conducting those operations is 
subject to the applicable prohibitions and penalties under 36 CFR part 
261 (see also Sec.  228.112).


Sec.  228.112  Notice of noncompliance.

    (a) General. When an authorized Forest Service officer finds that 
operations are not being conducted in accordance with regulations of 
this subpart, the lease (including stipulations made part of the lease 
at the direction of the Forest Service), an approved surface use plan 
of operations, applicable Bureau of Land Management regulations at 43 
CFR part 3170, and applicable Notices to Lessees and Operators, the 
operator shall be notified and given opportunity to come into 
compliance according to paragraph (b) of this section. The Forest 
Service shall provide courtesy copies to the local Bureau of Land 
Management office when a written notice of noncompliance is sent to an 
operator.
    (b) Notice of noncompliance. Upon finding that an operator is in 
noncompliance, the authorized Forest

[[Page 3664]]

Service officer shall send the operator written notification by 
certified mail that:
    (1) Describes the requirement(s) with which the operator is in 
noncompliance;
    (2) Describes the measure(s) that are required to correct the 
noncompliance;
    (3) Specifies a reasonable period of time within which the 
noncompliance(s) must be corrected;
    (4) Describes the possible consequences of continued noncompliance 
as described in paragraph (e) of this section; and
    (5) Provides notification that the authorized Forest Service 
officer is willing to work cooperatively with the operator to resolve 
the noncompliance.
    (c) Extension of deadlines. The operator may request an extension 
of a deadline specified in a notice of noncompliance if the operator is 
unable to come into compliance by the deadline. The operator must 
provide written rationale for delaying compliance. The authorized 
Forest Service officer has sole discretion to extend compliance 
deadlines, subject to provisions for appeal as noted in paragraph (d) 
of this section.
    (d) Appeal. An operator may appeal a notice of noncompliance issued 
under paragraph (b) of this section or a denial of a request for 
extension under paragraph (c) of this section, as provided for in 36 
CFR part 214.
    (e) Continued noncompliance. If an operator fails or refuses to 
comply with a notice of noncompliance, the authorized Forest Service 
officer may take action in one or more of the following ways:
    (1) Refer the issue to the local Bureau of Land Management office 
for action under 43 CFR part 3163.
    (2) Refer the issue to a Forest Service law enforcement officer if 
the noncompliance also constitutes a violation of the prohibitions in 
36 CFR part 261.
    (3) Refer the issue to the Compliance Officer for a determination 
of material noncompliance per Sec.  228.113.
    (f) Shut down of operations. When the noncompliance is likely to 
result in danger to public health or safety or in irreparable resource 
damage, the authorized Forest Service officer shall, in coordination 
with the Bureau of Land Management, shut down the operations, in whole 
or in part.
    (1) The authorized Forest Service officer shall serve decisions 
shutting down operations upon the operator in person, by certified 
mail, electronic mail or by telephone. If notice is initially provided 
in person, by electronic mail, or by telephone, the authorized Forest 
Service officer shall send the operator written confirmation of the 
decision by certified mail.
    (2) Shut down of operations shall remain in effect until the 
authorized Forest Service officer determines that the operations are in 
compliance with the applicable requirement(s) identified in the notice 
of noncompliance.
    (g) Abatement of emergencies. When the noncompliance is resulting 
in an emergency, the authorized Forest Service officer may take action 
as necessary to abate the emergency. The total cost to the Forest 
Service of taking actions to abate an emergency becomes an obligation 
of the operator.
    (1) Emergency situations include, but are not limited to, imminent 
dangers to public health or safety or irreparable resource damage.
    (2) The authorized Forest Service officer shall promptly serve a 
bill for such costs upon the operator by certified mail.


Sec.  228.113  Material noncompliance.

    (a) General. The authorized Forest Service officer shall refer 
actions to the Compliance Officer for a determination of material 
noncompliance when the operator or lessee has failed or refused to:
    (1) Comply with necessary corrective actions directed according to 
the procedures in Sec.  228.112 in cases where the noncompliance 
resulted in danger to public health or safety; caused irreparable 
resource damage; or resulted in an emergency;
    (2) Complete reclamation;
    (3) Maintain an additional bond in the amount required by the 
authorized Forest Service officer during the period of operation; and
    (4) Reimburse the Forest Service in a timely manner for the cost of 
abating an emergency.
    (b) Compliance Officer determination of material noncompliance. 
When determining whether an operator or lessee has failed or refused to 
comply in a material respect with reclamation requirements or other 
requirements or standards identified in paragraph (a) of this section, 
the Compliance Officer shall:
    (1) Inform the operator or lessee by certified mail of the 
authorized Forest Service officer's material noncompliance referral and 
the Compliance Officer's intent to proceed with a material 
noncompliance review.
    (2) Inform the operator or lessee of the opportunity to submit a 
written response to the referral and/or to request an oral presentation 
with the Compliance Officer within 30 calendar days of receipt of the 
certified letter.
    (3) Ensure that:
    (i) Opportunities for corrective action according to Sec.  
228.112(b) have been pursued;
    (ii) Consideration is given to the status of any noncompliance 
referrals sent to the Bureau of Land Management for action per Sec.  
228.112(e); and
    (iii) Consideration is given to the seriousness of the effects 
caused by the operator's failure or refusal to comply.
    (4) Consider any pending judicial or administrative appeals 
involving the operator, including those within the purview of the 
Bureau of Land Management.
    (5) Notify the operator or lessee by certified mail of the outcome 
of the material noncompliance referral review. If material 
noncompliance was determined, the notice shall inform the operator that 
the Bureau of Land Management may not issue a lease or approve the 
assignment of any lease to the entity. The notification shall also 
state that the decision is the final administrative determination of 
the Department of Agriculture.
    (c) Notifying the Bureau of Land Management. Upon completion of a 
material noncompliance review, the Compliance Officer shall notify the 
Bureau of Land Management in writing of the outcome of the review.
    (d) Notification that material compliance has occurred. If an 
entity found to be in material noncompliance subsequently comes into 
material compliance with reclamation requirements or other requirements 
or standards identified in paragraph (a) of this section, the 
Compliance Officer shall advise the Bureau of Land Management that the 
entity has come into material compliance.


Sec.  228.114  Posting requirements.

    The affected National Forest or Grassland ranger district office 
shall promptly post notices provided by the Bureau of Land Management 
of:
    (a) Competitive lease sales which the Bureau of Land Management 
plans to conduct that include National Forest System lands. These must 
be posted for a minimum of 45 days prior to the sale;
    (b) Substantial modifications in the terms which the Bureau of Land 
Management proposes to make for leases on National Forest System lands 
(43 CFR 3101.14). These must be posted for a minimum of 30 days; and,
    (c) Applications for Permits to Drill, which the Bureau of Land 
Management has received involving leases or agreements located on 
National Forest System lands according to provisions of 43 CFR part 
3170, subpart 3171. These must be posted for a minimum of 30 days.

[[Page 3665]]

Sec.  228.115  Information collection requirements.

    The Office of Management and Budget (OMB) reviewed and approved the 
information collection requirements contained in this subpart and 
assigned OMB Control No. 0596-0101. The collection of information 
allows the Forest Service to approve or take other appropriate actions 
on surface use plans of operations; requests to waive, except, or 
modify lease stipulations; requests for reduction in reclamation 
liability; noncompliance issues; and notices of cessation of 
operations. The information collection requirements of this subpart are 
supplemental to the Bureau of Land Management's various Office of 
Management and Budget information collection approvals for issuing and 
managing Federal oil and gas leases, but primarily to the following: 
OMB Control No. 1004-0134 for 43 CFR 3162.3; and OMB Control No. 1004-
0136 for Form 3160-3, Application for Permit to Drill.

PART 261--PROHIBITIONS

0
5. The authority citation for part 261 continues to read as follows:

    Authority: 7 U.S.C. 1011(f); 16 U.S.C. 460l-6d, 472, 551, 
620(f), 1133(c)-(d)(1), 1246(i).


0
6. Amend Sec.  261.2 by revising the definition for ``Operating plan'' 
to read as follows:


Sec.  261.2  Definitions.

* * * * *
    Operating plan means the following documents, providing that the 
document has been issued or approved by the Forest Service: A plan of 
operations as provided for in 36 CFR part 228, subparts A and D, and 36 
CFR part 292, subparts C and G; a supplemental plan of operations as 
provided for in 36 CFR part 228, subpart A, and 36 CFR part 292, 
subpart G; an operating plan as provided for in 36 CFR part 228, 
subpart C, and 36 CFR part 292, subpart G; an amended operating plan 
and a reclamation plan as provided for in 36 CFR part 292, subpart G; a 
surface use plan of operations as provided for in 36 CFR part 228, 
subpart E; a surface use portion of a sundry notice as provided for in 
36 CFR part 228, subpart E; a permit as provided for in 36 CFR 251.15; 
and an operating plan and a letter of authorization as provided for in 
36 CFR part 292, subpart D.
* * * * *

Courtney Stevens,
Acting Deputy Under Secretary, Natural Resources and Environment.
[FR Doc. 2026-01655 Filed 1-27-26; 8:45 am]
BILLING CODE 3411-15-P


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Indexed from Federal Register on January 28, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.