No Surface Occupancy Western Arctic Coastal Plain Domestic Energy Security Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Surface Occupancy Western Arctic 
Coastal Plain Domestic Energy Security Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastal plain.--The term ``Coastal Plain'' means the 
        area described in appendix I to part 37 of title 50, Code of 
        Federal Regulations.
            (2) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to--
                    (A) section 1002 of the Alaska National Interest 
                Lands Conservation Act (16 U.S.C. 3142); and
                    (B) section 102(2)(C) of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (3) Map.--The term ``map'' means the map entitled ``Arctic 
        National Wildlife Refuge'', dated September 2005, and prepared 
        by the United States Geological Survey.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior or the designee of the Secretary.
            (5) Western coastal plain.--The term ``Western Coastal 
        Plain'' means that area of the Coastal Plain--
                    (A) that borders the land of the State of Alaska to 
                the west and State of Alaska offshore waters of the 
                Beaufort Sea on the north; and
                    (B) from which oil and gas can be produced through 
                the use of horizontal drilling or other subsurface 
                technology from sites outside or underneath the surface 
                of the Coastal Plain.

SEC. 3. LEASING PROGRAM FOR LAND WITHIN THE WESTERN COASTAL PLAIN.

    (a) In General.--
            (1) Authorization.--There is authorized the exploration, 
        leasing, development, and production of oil and gas from the 
        Western Coastal Plain.
            (2) Actions.--The Secretary shall take such actions as are 
        necessary--
                    (A) to establish and implement, in accordance with 
                this Act, a competitive oil and gas leasing program 
                that will result in an environmentally sound program 
                for the exploration, development, and production of the 
                oil and gas resources of the Western Coastal Plain; and
                    (B) to administer this Act through regulations, 
                lease terms, conditions, restrictions, prohibitions, 
                stipulations, and other provisions that--
                            (i) ensure the oil and gas exploration, 
                        development, and production activities on the 
                        Western Coastal Plain will result in no 
                        significant adverse effect on fish and 
                        wildlife, fish and wildlife habitat, 
                        subsistence resources, and the environment;
                            (ii) prohibit surface occupancy of the 
                        Western Coastal Plain during oil and gas 
                        development and production; and
                            (iii) require the application of the best 
                        commercially available technology for oil and 
                        gas exploration, development, and production to 
                        all exploration, development, and production 
                        operations under this Act in a manner that 
                        ensures the receipt of fair market value by the 
                        public for the mineral resources to be leased.
    (b) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.)--
                    (A) the oil and gas preleasing and leasing program 
                and activities authorized by this section in the 
                Western Coastal Plain shall be considered to be 
                compatible with the purposes for which the Arctic 
                National Wildlife Refuge was established; and
                    (B) no further findings or decisions shall be 
                required to implement that program and those 
                activities.
            (2) Adequacy of the legislative environmental impact 
        statement of the department of the interior.--The Final 
        Statement shall be considered to satisfy the requirements of 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.) that apply with respect to preleasing activities, 
        including exploration programs and actions authorized to be 
        taken by the Secretary to develop and promulgate the 
        regulations for the establishment of a leasing program 
        authorized by this Act before the conduct of the first lease 
        sale.
            (3) Compliance with nepa for other actions.--
                    (A) In general.--Prior to conducting the first 
                lease sale pursuant to this Act, the Secretary shall 
                prepare an environmental impact statement in accordance 
                with the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) with respect to the activities 
                authorized by this Act that are not covered by 
                paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not--
                            (i) identify nonleasing alternative courses 
                        of action; or
                            (ii) analyze the environmental effect of 
                        those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 1 year after the date of enactment of this Act, 
                the Secretary shall identify only a preferred action 
                and a single leasing alternative for the first lease 
                sale conducted pursuant to this Act.
                    (D) Effect of noncompliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy any provision of law or 
                other requirement that requires analysis and 
                consideration of the environmental effects of leasing 
                with respect to the leasing conducted pursuant to this 
                Act.
    (c) Relationship to State and Local Authority.--Nothing in this Act 
expands or limits any State or local regulatory authority.
    (d) Regulations.--Not later than 1 year after the date of enactment 
of this Act, in consultation with the State of Alaska, the North Slope 
Borough, Alaska, and the Arctic Slope Regional Corporation, the 
Secretary shall promulgate such regulations as are necessary to carry 
out this Act.

SEC. 4. LEASE SALES.

    (a) Qualified Lessees.--Land may be leased under this Act to any 
person qualified to obtain a lease for deposits of oil and gas under 
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Western Coastal Plain for inclusion in a lease 
        sale;
            (2) the holding of lease sales after the nomination process 
        described in paragraph (1); and
            (3) public notice of, and comment on, designation of areas 
        to be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this Act shall be by 
sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this Act, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 18 months after the date of enactment of 
        this Act, conduct the first lease sale under this Act;
            (2) not later than 1 year after the date on which the first 
        lease sale is conducted under paragraph (1), conduct a second 
        lease sale under this Act; and
            (3) conduct additional sales at appropriate intervals if 
        sufficient interest in exploration or development exists to 
        warrant the conduct of the additional sales.

SEC. 5. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--On payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary shall grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 4 a lease for any land on the Western Coastal Plain.
    (b) Subsequent Transfers.--
            (1) In general.--No lease issued under this Act may be 
        sold, exchanged, assigned, sublet, or otherwise transferred 
        except with the approval of the Secretary.
            (2) Condition for approval.--Before granting any approval 
        under paragraph (1), the Secretary shall consult with, and give 
        due consideration to the opinion of, the Attorney General.

SEC. 6. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this Act 
shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent of the quantity or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary, after consultation with the 
        State of Alaska, North Slope Borough, Alaska, and the Arctic 
        Slope Regional Corporation, may close, on a seasonal basis, 
        such portions of the Western Coastal Plain to exploratory 
        drilling activities as are necessary to protect caribou calving 
        areas and other species of fish and wildlife;
            (3) require that each lessee of land within the Western 
        Coastal Plain shall be fully responsible and liable for the 
        reclamation of land within the Western Coastal Plain and any 
        other Federal land that is adversely affected in connection 
        with exploration activities conducted under the lease and 
        within the Western Coastal Plain by the lessee or by any of the 
        subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability described in paragraph (3) to another person without 
        the express written approval of the Secretary;
            (5) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        3(a)(2); and
            (6) provide that each lessee, and each agent and contractor 
        of a lessee, shall use the best efforts of the lessee to 
        provide a fair share of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State, as determined by the level of obligation previously 
        agreed to in the Federal Agreement.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this Act, and in recognizing the 
proprietary interest of the Federal Government in labor stability and 
in the ability of construction labor and management to meet the 
particular needs and conditions of projects to be developed under the 
leases issued pursuant to this Act (including the special concerns of 
the parties to those leases), shall require that each lessee, and each 
agent and contractor of a lessee, under this Act negotiate to obtain a 
project labor agreement for the employment of laborers and mechanics on 
production, maintenance, and construction under the lease.

SEC. 7. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of bonus, rental, and royalty revenues from oil and gas leasing 
and operations authorized by this Act--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) the balance shall be deposited in the Treasury of the 
        United States.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made on a monthly basis.

SEC. 8. CONVEYANCE.

    Notwithstanding section 1302(h)(2) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on 
title to land, and to clarify land ownership patterns in the Coastal 
Plain, the Secretary shall--
            (1) to the extent necessary to fulfill the entitlement of 
        the Kaktovik Inupiat Corporation under sections 12 and 14 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), 
        as determined by the Secretary, convey to that Corporation the 
        surface estate of the land described in paragraph (1) of Public 
        Land Order 6959, in accordance with the terms and conditions of 
        the agreement between the Secretary, the United States Fish and 
        Wildlife Service, the Bureau of Land Management, and the 
        Kaktovik Inupiat Corporation, dated January 22, 1993; and
            (2) convey to the Arctic Slope Regional Corporation the 
        remaining subsurface estate to which that Corporation is 
        entitled under the agreement between that corporation and the 
        United States, dated August 9, 1983.

Summary: No Surface Occupancy Western Arctic Coastal Plain Domestic Energy Security Act - Authorizes the exploration, leasing, development and production of oil and gas on the Western Coastal Plain of Alaska. Directs the Secretary of the Interior to: (1) establish a competitive oil and gas leasing program for oil and gas exploration, development, and production on the Western Coastal Plain. And (2) prohibit surface occupancy of the Western Coastal Plain during any oil and gas development and production States that, in connection with specified environmental protection laws, the Secretary shall neither: (1) identify nonleasing alternative courses of action, nor (2) analyze the environmental effect of those courses of action. Requires the Secretary, within one year after the first lease sale is conducted under this Act, to conduct a second lease sale . Sets forth procedures for: (1) lease sales and lease grants on the Western Coastal Plain, and (2) Western Coastal Plain environmental protection. Prescribes a revenue allocation scheme derived from bonus, rental, and royalty revenues from federal oil and gas leasing and operations authorized under this Act, including monthly payments to the state of Alaska. Requires the Secretary to convey to: (1) the Kaktovik Inupiat Corporation the surface estate of certain land, and (2) the Arctic Slope Regional Corporation the remaining subsurface estate to which that Corporation is entitled under a specified agreement.