Full Title: Oil and Gas: Bureau of Indian Affairs Could Improve Lease Management of Trust and Restricted Land
Author(s): U.S. Government Accountability Office
Publisher(s): U.S. Government Accountability Office
Publication Date: December 19, 2024
Full Text: Download Resource
Description (excerpt):
About 15,000 active oil and gas wells on trust or restricted land contribute to the economies of some Tribes. Interior’s BIA assists tribal governments and citizens in managing, protecting, and developing their land and natural resources. Interior requires lessees to provide bonds to help ensure they meet the responsibilities of their leases—including plugging wells and reclaiming the land.
Lessees may not be able or willing to reclaim the well site at the end of a lease, despite the consequence of losing the bond. When well sites are not fully reclaimed, Tribes may face environmental impacts on their lands or health and safety risks to their people.
GAO was asked to review the status of oil and gas bonding for trust or restricted land. This report examines (1) BIA’s information about bonds and bond claims, (2) BIA’s guidance and processes for managing bonding, (3) the sufficiency of bond minimums, and (4) funding mechanisms to plug and reclaim wells when bonds are inadequate. GAO reviewed laws and regulations, analyzed agency policies and guidance related to bonds, conducted site visits, and interviewed tribal and Interior officials.