I 

111TH CONGRESS 

1ST SESSION H. R. 2539 

To secure unrestricted reliable energy for American consumption and 

transmission. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2009 

Mr. THORNBERRY introduced the following bill; which was referred to the 

Committee on Natural Resources, and in addition to the Committees on 

Ways and Means and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To secure unrestricted reliable energy for American 

consumption and transmission. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘No More Excuses Energy Act of 2009’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—REFINERIES 


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Sec. 102. Tax-exempt financing of domestic use oil refinery facilities. 

Sec. 103. Designation and availability of Federal lands for oil and natural gas 

refineries. 

TITLE II—ALTERNATIVE ENERGY 

Sec. 201. Extension of credit for electricity produced from certain renewable resources. 

Sec. 202. Extension of energy credit for solar. 

Sec. 203. Equalization of excise tax on liquefied natural gas and per energy 

equivalent of diesel. 

Sec. 204. Extension of alternative fuel credit. 

TITLE III—NUCLEAR ENERGY 

Sec. 301. Waste Confidence. 

Sec. 302. ASME Nuclear Certification credit. 

TITLE IV—DRILLING 

Subtitle A—Tax Provisions 

Sec. 401. Credit for producing fuel from nonconventional sources to apply to 

gas produced onshore from formations more than 15,000 feet 

deep. 

Sec. 402. Repeal of minimum capture requirement for carbon dioxide sequestration credit. 

Subtitle B—Oil and Gas Development on the Coastal Plain of Alaska 

Sec. 421. Short title. 

Sec. 422. Definitions. 

Sec. 423. Leasing program for lands within the Coastal Plain. 

Sec. 424. Lease sales. 

Sec. 425. Grant of leases by the Secretary. 

Sec. 426. Lease terms and conditions. 

Sec. 427. Coastal plain environmental protection. 

Sec. 428. Expedited judicial review. 

Sec. 429. Federal and State distribution of revenues. 

Sec. 430. Rights-of-way across the Coastal Plain. 

Sec. 431. Conveyance. 

Sec. 432. Local government impact aid and community service assistance. 

1 TITLE I—REFINERIES 

2 SEC. 102. TAX-EXEMPT FINANCING OF DOMESTIC USE OIL 

3 REFINERY FACILITIES. 

4 (a) IN GENERAL.— 

5 (1) TREATMENT AS EXEMPT FACILITY BOND.— 

6 Subsection (a) of section 142 of the Internal Rev7 enue Code of 1986 (relating to exempt facility bond) 


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1 is amended by striking ‘‘or’’ at the end of paragraph 

2 (14), by striking the period at the end of paragraph 

3 (15) and inserting ‘‘, and’’, and by inserting at the 

4 end the following new paragraph: 

5 ‘‘(16) domestic use oil refinery facilities.’’. 

6 (2) DOMESTIC USE OIL REFINERY FACILI7 TIES.—Section 142 is amended by adding at the end 

8 the following new subsection: 

9 ‘‘(n) DOMESTIC USE OIL REFINERY FACILITIES.— 

10 ‘‘(1) IN GENERAL.—For purposes of subsection 

11 (a)(16), the term ‘domestic use oil refinery facility’ 

12 means any facility in the United States— 

13 ‘‘(A) which processes liquid fuel from 

14 crude oil, and 

15 ‘‘(B) all of the output of which it is rea16 sonably certain ultimate consumption will occur 

17 in the United States. 

18 ‘‘(2) ELECTION TO TERMINATE TAX-EXEMPT

19 BOND FINANCING BY CERTAIN REFINERIES.—In the 

20 case of a facility financed with bonds which would 

21 cease to be tax-exempt by reason of the failure to 

22 meet the domestic use requirement of this sub23 section, rules similar to the rules of subsection (f)(4) 

24 shall apply for purposes of this section.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to bonds issued after the date of 

3 the enactment of this Act. 

4 SEC. 103. DESIGNATION AND AVAILABILITY OF FEDERAL 

5 LANDS FOR OIL AND NATURAL GAS REFIN6 ERIES. 

7 (a) DESIGNATION.—Within 18 months after the date 

8 of enactment of this Act, the President shall designate at 

9 least 10 sites on Federal lands that are suitable for the 

10 siting of an oil refinery or natural gas refinery (or both). 

11 (b) AVAILABILITY OF LANDS.—Within 24 months 

12 after the date of enactment of this Act, the President shall 

13 make each site designated under subsection (a) available 

14 to the private sector for construction of an oil refinery or 

15 natural gas refinery (or both), as appropriate. 

16 TITLE II—ALTERNATIVE 

17 ENERGY 

18 SEC. 201. EXTENSION OF CREDIT FOR ELECTRICITY PRO19 DUCED FROM CERTAIN RENEWABLE RE20 SOURCES. 

21 (a) IN GENERAL.—Subsection (d) of section 45 of the 

22 Internal Revenue Code of 1986 is amended— 

23 (1) by striking ‘‘January 1, 2013’’ in paragraph 

24 (1) and inserting ‘‘January 1, 2023’’, 


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1 (2) by striking ‘‘January 1, 2014’’ each place 

2 it appears in paragraphs (2), (3), (4), (6), (7), (9), 

3 and (11) and inserting ‘‘January 1, 2019’’, and 

4 (3) by striking ‘‘January 1, 2010’’ in paragraph 

5 (8) and inserting ‘‘January 1, 2015’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to property originally placed in 

8 service on or after January 1, 2010. 

9 SEC. 202. EXTENSION OF ENERGY CREDIT FOR SOLAR. 

10 (a) IN GENERAL.—Paragraphs (2)(A)(i)(II) and 

11 (3)(A)(ii) of section 48 of the Internal Revenue Code of 

12 1986 are each amended by striking ‘‘January 1, 2017’’ 

13 and inserting ‘‘January 1, 2019’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall take effect on the date of the enactment 

16 of this Act. 

17 SEC. 203. EQUALIZATION OF EXCISE TAX ON LIQUEFIED 

18 NATURAL GAS AND PER ENERGY EQUIVA19 LENT OF DIESEL. 

20 (a) IN GENERAL.—Subparagraph (B) of section 

21 4041(a)(2) of the Internal Revenue Code of 1986 is 

22 amended by striking the period at the end of clause (ii) 

23 and inserting ‘‘, and’’, and by inserting after clause (ii) 

24 the following new clause: 


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1 ‘‘(iii) in the case of liquefied natural 

2 gas, 24.3 cents per energy equivalent of a 

3 gallon of diesel.’’. 

4 (b) ENERGY EQUIVALENT OF A GALLON OF DIESEL

5 AND ADMINISTRATIVE PROVISION.—Paragraph (2) of sec6 tion 4041(a) of such Code is amended by adding at the 

7 end the following: 

8 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

9 OF DIESEL.—For purposes of this paragraph, 

10 the term ‘energy equivalent of a gallon of diesel’ 

11 means, with respect to a liquefied natural gas 

12 fuel, the amount of such fuel having a Btu con13 tent of 137,380 (higher heating value). 

14 ‘‘(D) ADMINISTRATIVE PROVISIONS.—For 

15 purposes of applying this title with respect to 

16 the taxes imposed by this subsection, references 

17 to any liquid subject to tax under this sub18 section shall be treated as including references 

19 to liquefied natural gas subject to tax under 

20 this paragraph.’’. 

21 (c) CONFORMING AMENDMENTS.—Section 

22 4041(a)(2)(B)(ii) of such Code is amended— 

23 (1) by striking ‘‘liquefied natural gas,’’, and 

24 (2) by striking ‘‘peat), and’’ and inserting 

25 ‘‘peat) and’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to any sale or use of liquefied nat3 ural gas after 14 days after the date of the enactment 

4 of this Act. 

5 SEC. 204. EXTENSION OF ALTERNATIVE FUEL CREDIT. 

6 (a) IN GENERAL.—Paragraph (5) of section 6426(d) 

7 of the Internal Revenue Code of 1986 (relating to alter8 native fuel credit) is amended by striking ‘‘December 31, 

9 2009’’ and inserting ‘‘December 31, 2010’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to fuel sold or used after December 

12 31, 2009. 

13 TITLE III—NUCLEAR ENERGY 

14 SEC. 301. WASTE CONFIDENCE. 

15 The Nuclear Regulatory Commission may not deny 

16 an application for a license, permit, or other authorization 

17 under the Atomic Energy Act of 1954 on the grounds that 

18 sufficient capacity does not exist, or will not become avail19 able on a timely basis, for disposal of spent nuclear fuel 

20 or high-level radioactive waste from the facility for which 

21 the license, permit, or other authorization is sought. 

22 SEC. 302. ASME NUCLEAR CERTIFICATION CREDIT. 

23 (a) IN GENERAL.—Subpart D of part IV of sub24 chapter A of chapter 1 (relating to business related credVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 its) is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 45R. ASME NUCLEAR CERTIFICATION CREDIT. 

4 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

5 ASME Nuclear Certification credit determined under this 

6 section for any taxable year is an amount equal to 15 per7 cent of the qualified nuclear expenditures paid or incurred 

8 by the taxpayer. 

9 ‘‘(b) QUALIFIED NUCLEAR EXPENDITURES.—For 

10 purposes of this section, the term ‘qualified nuclear ex11 penditures’ means any expenditure related to— 

12 ‘‘(1) obtaining a certification under the Amer13 ican Society of Mechanical Engineers Nuclear Com14 ponent Certification program, or 

15 ‘‘(2) increasing the taxpayer’s capacity to con16 struct, fabricate, assemble, or install components— 

17 ‘‘(A) for any facility which uses nuclear en18 ergy to produce electricity, and 

19 ‘‘(B) with respect to the construction, fab20 rication, assembly, or installation of which the 

21 taxpayer is certified under such program. 

22 ‘‘(c) TIMING OF CREDIT.—The credit allowed under 

23 subsection (a) for any expenditures shall be allowed— 


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1 ‘‘(1) in the case of a qualified nuclear expendi2 ture described in subsection (b)(1), for the taxable 

3 year of such certification, and 

4 ‘‘(2) in the case of any other qualified nuclear 

5 expenditure, for the taxable year in which such ex6 penditure is paid or incurred. 

7 ‘‘(d) SPECIAL RULES.— 

8 ‘‘(1) BASIS ADJUSTMENT.—For purposes of 

9 this subtitle, if a credit is allowed under this section 

10 for an expenditure, the increase in basis which would 

11 result (but for this subsection) for such expenditure 

12 shall be reduced by the amount of the credit allowed 

13 under this section. 

14 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc15 tion shall be allowed under this chapter for any 

16 amount taken into account in determining the credit 

17 under this section. 

18 ‘‘(e) TERMINATION.—This section shall not apply to 

19 any expenditures paid or incurred in taxable years begin20 ning after December 31, 2019.’’. 

21 (b) CONFORMING AMENDMENTS.—(1) Subsection (b) 

22 of section 38 is amended by striking ‘‘plus’’ at the end 

23 of paragraph (34), by striking the period at the end of 

24 paragraph (335) and inserting ‘‘, plus’’, and by adding 

25 at the end the following new paragraph: 


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1 ‘‘(36) the ASME Nuclear Certification credit 

2 determined under section 45R(a).’’. 

3 (2) Subsection (a) of section 1016 (relating to adjust4 ments to basis) is amended by striking ‘‘and’’ at the end 

5 of paragraph (36), by striking the period at the end of 

6 paragraph (37) and inserting ‘‘, and’’, and by adding at 

7 the end the following new paragraph: 

8 ‘‘(38) to the extent provided in section 

9 45R(e)(1).’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to expenditures paid or incurred 

12 in taxable years beginning after December 31, 2008. 

13 TITLE IV—DRILLING 

14 Subtitle A—Tax Provisions 

15 SEC. 401. CREDIT FOR PRODUCING FUEL FROM NON16 CONVENTIONAL SOURCES TO APPLY TO GAS 

17 PRODUCED ONSHORE FROM FORMATIONS 

18 MORE THAN 15,000 FEET DEEP. 

19 (a) IN GENERAL.—Subparagraph (B) of section 

20 45K(c)(1) is amended by striking ‘‘or’’ at the end of clause 

21 (i), by striking ‘‘and’’ at the end of clause (ii) and insert22 ing ‘‘or’’, and by inserting after clause (ii) the following 

23 new clause: 

24 ‘‘(iii) an onshore well from a forma25 tion more than 15,000 feet deep, and’’. 


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1 (b) ELIGIBLE DEEP GAS WELLS.—Section 45K is 

2 amended by adding at the end the following new sub3 section: 

4 ‘‘(h) ELIGIBLE DEEP GAS WELLS.—In the case of 

5 a well producing qualified fuel described in subsection 

6 (c)(1)(B)(iii)— 

7 ‘‘(1) for purposes of subsection (e)(1)(A), such 

8 well shall be treated as drilled before January 1, 

9 1993, if such well is drilled after the date of the en10 actment of this subsection, and 

11 ‘‘(2) subsection (e)(2) shall not apply.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years ending after the 

14 date of the enactment of this Act. 

15 SEC. 402. REPEAL OF MINIMUM CAPTURE REQUIREMENT 

16 FOR CARBON DIOXIDE SEQUESTRATION 

17 CREDIT. 

18 (a) IN GENERAL.—Subsection (c) of section 45Q of 

19 the Internal Revenue Code of 1986 is amended by insert20 ing ‘‘and’’ at the end of paragraph (1), by striking ‘‘, and’’ 

21 at the end of paragraph (2) and inserting a period, and 

22 by striking paragraph (3). 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to carbon dioxide captured after 

25 the date of the enactment of this Act. 


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1 Subtitle B—Oil and Gas Develop2 ment on the Coastal Plain of 

3 Alaska 

4 SEC. 421. SHORT TITLE. 

5 This subtitle may be cited as the ‘‘American-Made 

6 Energy and Good Jobs Act’’. 

7 SEC. 422. DEFINITIONS. 

8 In this subtitle: 

9 (1) COASTAL PLAIN.—The term ‘‘Coastal 

10 Plain’’ means that area described in appendix I to 

11 part 37 of title 50, Code of Federal Regulations. 

12 (2) SECRETARY.—The term ‘‘Secretary’’, except 

13 as otherwise provided, means the Secretary of the 

14 Interior or the Secretary’s designee. 

15 SEC. 423. LEASING PROGRAM FOR LANDS WITHIN THE 

16 COASTAL PLAIN. 

17 (a) IN GENERAL.—The Secretary shall take such ac18 tions as are necessary— 

19 (1) to establish and implement, in accordance 

20 with this subtitle and acting through the Director of 

21 the Bureau of Land Management in consultation 

22 with the Director of the United States Fish and 

23 Wildlife Service, a competitive oil and gas leasing 

24 program that will result in an environmentally sound 

25 program for the exploration, development, and proVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 duction of the oil and gas resources of the Coastal 

2 Plain; and 

3 (2) to administer the provisions of this subtitle 

4 through regulations, lease terms, conditions, restric5 tions, prohibitions, stipulations, and other provisions 

6 that ensure the oil and gas exploration, development, 

7 and production activities on the Coastal Plain will 

8 result in no significant adverse effect on fish and 

9 wildlife, their habitat, subsistence resources, and the 

10 environment, including, in furtherance of this goal, 

11 by requiring the application of the best commercially 

12 available technology for oil and gas exploration, de13 velopment, and production to all exploration, devel14 opment, and production operations under this sub15 title in a manner that ensures the receipt of fair 

16 market value by the public for the mineral resources 

17 to be leased. 

18 (b) REPEAL.— 

19 (1) REPEAL.—Section 1003 of the Alaska Na20 tional Interest Lands Conservation Act of 1980 (16 

21 U.S.C. 3143) is repealed. 

22 (2) CONFORMING AMENDMENT.—The table of 

23 contents in section 1 of such Act is amended by 

24 striking the item relating to section 1003. 


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1 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER2 TAIN OTHER LAWS.— 

3 (1) COMPATIBILITY.—For purposes of the Na4 tional Wildlife Refuge System Administration Act of 

5 1966 (16 U.S.C. 668dd et seq.), the oil and gas 

6 leasing program and activities authorized by this 

7 section in the Coastal Plain are deemed to be com8 patible with the purposes for which the Arctic Na9 tional Wildlife Refuge was established, and no fur10 ther findings or decisions are required to implement 

11 this determination. 

12 (2) ADEQUACY OF THE DEPARTMENT OF THE

13 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

14 STATEMENT.—The ‘‘Final Legislative Environ15 mental Impact Statement’’ (April 1987) on the 

16 Coastal Plain prepared pursuant to section 1002 of 

17 the Alaska National Interest Lands Conservation 

18 Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 

19 of the National Environmental Policy Act of 1969 

20 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re21 quirements under the National Environmental Policy 

22 Act of 1969 that apply with respect to prelease ac23 tivities, including actions authorized to be taken by 

24 the Secretary to develop and promulgate the regula25 tions for the establishment of a leasing program auVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 thorized by this subtitle before the conduct of the 

2 first lease sale. 

3 (3) COMPLIANCE WITH NEPA FOR OTHER AC4 TIONS.—Before conducting the first lease sale under 

5 this subtitle, the Secretary shall prepare an environ6 mental impact statement under the National Envi7 ronmental Policy Act of 1969 with respect to the ac8 tions authorized by this Act that are not referred to 

9 in paragraph (2). Notwithstanding any other law, 

10 the Secretary is not required to identify nonleasing 

11 alternative courses of action or to analyze the envi12 ronmental effects of such courses of action. The Sec13 retary shall only identify a preferred action for such 

14 leasing and a single leasing alternative, and analyze 

15 the environmental effects and potential mitigation 

16 measures for those two alternatives. The identifica17 tion of the preferred action and related analysis for 

18 the first lease sale under this subtitle shall be com19 pleted within 18 months after the date of enactment 

20 of this Act. The Secretary shall only consider public 

21 comments that specifically address the Secretary’s 

22 preferred action and that are filed within 20 days 

23 after publication of an environmental analysis. Not24 withstanding any other law, compliance with this 

25 paragraph is deemed to satisfy all requirements for 


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1 the analysis and consideration of the environmental 

2 effects of proposed leasing under this subtitle. 

3 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR4 ITY.—Nothing in this subtitle shall be considered to ex5 pand or limit State and local regulatory authority. 

6 (e) SPECIAL AREAS.— 

7 (1) IN GENERAL.—The Secretary, after con8 sultation with the State of Alaska, the city of 

9 Kaktovik, and the North Slope Borough, may des10 ignate up to a total of 45,000 acres of the Coastal 

11 Plain as a Special Area if the Secretary determines 

12 that the Special Area is of such unique character 

13 and interest so as to require special management 

14 and regulatory protection. The Secretary shall des15 ignate as such a Special Area the Sadlerochit Spring 

16 area, comprising approximately 4,000 acres. 

17 (2) MANAGEMENT.—Each such Special Area 

18 shall be managed so as to protect and preserve the 

19 area’s unique and diverse character including its 

20 fish, wildlife, and subsistence resource values. 

21 (3) EXCLUSION FROM LEASING OR SURFACE

22 OCCUPANCY.—The Secretary may exclude any Spe23 cial Area from leasing. If the Secretary leases a Spe24 cial Area, or any part thereof, for purposes of oil 

25 and gas exploration, development, production, and 


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1 related activities, there shall be no surface occu2 pancy of the lands comprising the Special Area. 

3 (4) DIRECTIONAL DRILLING.—Notwithstanding 

4 the other provisions of this subsection, the Secretary 

5 may lease all or a portion of a Special Area under 

6 terms that permit the use of horizontal drilling tech7 nology from sites on leases located outside the Spe8 cial Area. 

9 (f) LIMITATION ON CLOSED AREAS.—The Sec10 retary’s sole authority to close lands within the Coastal 

11 Plain to oil and gas leasing and to exploration, develop12 ment, and production is that set forth in this subtitle. 

13 (g) REGULATIONS.— 

14 (1) IN GENERAL.—The Secretary shall pre15 scribe such regulations as may be necessary to carry 

16 out this subtitle, including rules and regulations re17 lating to protection of the fish and wildlife, their 

18 habitat, subsistence resources, and environment of 

19 the Coastal Plain, by no later than 15 months after 

20 the date of enactment of this Act. 

21 (2) REVISION OF REGULATIONS.—The Sec22 retary shall periodically review and, if appropriate, 

23 revise the rules and regulations issued under sub24 section (a) to reflect any significant biological, enviVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 ronmental, or engineering data that come to the Sec2 retary’s attention. 

3 SEC. 424. LEASE SALES. 

4 (a) IN GENERAL.—Lands may be leased pursuant to 

5 this subtitle to any person qualified to obtain a lease for 

6 deposits of oil and gas under the Mineral Leasing Act (30 

7 U.S.C. 181 et seq.). 

8 (b) PROCEDURES.—The Secretary shall, by regula9 tion, establish procedures for— 

10 (1) receipt and consideration of sealed nomina11 tions for any area in the Coastal Plain for inclusion 

12 in, or exclusion (as provided in subsection (c)) from, 

13 a lease sale; 

14 (2) the holding of lease sales after such nomina15 tion process; and 

16 (3) public notice of and comment on designa17 tion of areas to be included in, or excluded from, a 

18 lease sale. 

19 (c) LEASE SALE BIDS.—Bidding for leases under 

20 this subtitle shall be by sealed competitive cash bonus bids. 

21 (d) ACREAGE MINIMUM IN FIRST SALE.—In the first 

22 lease sale under this subtitle, the Secretary shall offer for 

23 lease those tracts the Secretary considers to have the 

24 greatest potential for the discovery of hydrocarbons, takVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 ing into consideration nominations received pursuant to 

2 subsection (b)(1), but in no case less than 200,000 acres. 

3 (e) TIMING OF LEASE SALES.—The Secretary 

4 shall— 

5 (1) conduct the first lease sale under this sub6 title within 22 months after the date of the enact7 ment of this Act; and 

8 (2) conduct additional sales so long as sufficient 

9 interest in development exists to warrant, in the Sec10 retary’s judgment, the conduct of such sales. 

11 SEC. 425. GRANT OF LEASES BY THE SECRETARY. 

12 (a) IN GENERAL.—The Secretary may grant to the 

13 highest responsible qualified bidder in a lease sale con14 ducted pursuant to section 424 any lands to be leased on 

15 the Coastal Plain upon payment by the lessee of such 

16 bonus as may be accepted by the Secretary. 

17 (b) SUBSEQUENT TRANSFERS.—No lease issued 

18 under this subtitle may be sold, exchanged, assigned, sub19 let, or otherwise transferred except with the approval of 

20 the Secretary. Prior to any such approval the Secretary 

21 shall consult with, and give due consideration to the views 

22 of, the Attorney General. 

23 SEC. 426. LEASE TERMS AND CONDITIONS. 

24 An oil or gas lease issued pursuant to this subtitle 

25 shall— 


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1 (1) provide for the payment of a royalty of not 

less than 121 2 ⁄2 percent in amount or value of the 

3 production removed or sold from the lease, as deter4 mined by the Secretary under the regulations appli5 cable to other Federal oil and gas leases; 

6 (2) require that the lessee of lands within the 

7 Coastal Plain shall be fully responsible and liable for 

8 the reclamation of lands within the Coastal Plain 

9 and any other Federal lands that are adversely af10 fected in connection with exploration, development, 

11 production, or transportation activities conducted 

12 under the lease and within the Coastal Plain by the 

13 lessee or by any of the subcontractors or agents of 

14 the lessee; 

15 (3) provide that the lessee may not delegate or 

16 convey, by contract or otherwise, the reclamation re17 sponsibility and liability to another person without 

18 the express written approval of the Secretary; 

19 (4) provide that the standard of reclamation for 

20 lands required to be reclaimed under this subtitle 

21 shall be, as nearly as practicable, a condition capable 

22 of supporting the uses which the lands were capable 

23 of supporting prior to any exploration, development, 

24 or production activities, or upon application by the 


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1 lessee, to a higher or better use as approved by the 

2 Secretary; 

3 (5) include requirements and restrictions to 

4 provide for reasonable protection of fish and wildlife, 

5 their habitat, subsistence resources, and the environ6 ment as determined by the Secretary; 

7 (6) prohibit the export of oil produced under 

8 the lease; and 

9 (7) contain such other provisions as the Sec10 retary determines necessary to ensure compliance 

11 with the provisions of this subtitle and the regula12 tions issued under this subtitle. 

13 SEC. 427. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

14 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

15 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

16 The Secretary shall, consistent with the requirements of 

17 section 423, administer the provisions of this subtitle 

18 through regulations, lease terms, conditions, restrictions, 

19 prohibitions, stipulations, and other provisions that— 

20 (1) ensure the oil and gas exploration, develop21 ment, and production activities on the Coastal Plain 

22 will result in no significant adverse effect on fish 

23 and wildlife, their habitat, and the environment; 

24 (2) require the application of the best commer25 cially available technology for oil and gas exploVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 ration, development, and production on all new ex2 ploration, development, and production operations; 

3 and 

4 (3) ensure that the maximum amount of sur5 face acreage covered by production and support fa6 cilities, including airstrips and any areas covered by 

7 gravel berms or piers for support of pipelines, does 

8 not exceed 2,000 acres on the Coastal Plain. 

9 (b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 

10 The Secretary shall also require, with respect to any pro11 posed drilling and related activities, that— 

12 (1) a site-specific analysis be made of the prob13 able effects, if any, that the drilling or related activi14 ties will have on fish and wildlife, their habitat, sub15 sistence resources, and the environment; 

16 (2) a plan be implemented to avoid, minimize, 

17 and mitigate (in that order and to the extent prac18 ticable) any significant adverse effect identified 

19 under paragraph (1); and 

20 (3) the development of the plan shall occur 

21 after consultation with the agency or agencies hav22 ing jurisdiction over matters mitigated by the plan. 

23 (c) REGULATIONS TO PROTECT COASTAL PLAIN

24 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

25 AND THE ENVIRONMENT.—Before implementing the leasVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 ing program authorized by this subtitle, the Secretary 

2 shall prepare and promulgate regulations, lease terms, 

3 conditions, restrictions, prohibitions, stipulations, and 

4 other measures designed to ensure that the activities un5 dertaken on the Coastal Plain under this subtitle are con6 ducted in a manner consistent with the purposes and envi7 ronmental requirements of this subtitle. 

8 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI9 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

10 proposed regulations, lease terms, conditions, restrictions, 

11 prohibitions, and stipulations for the leasing program 

12 under this subtitle shall require compliance with all appli13 cable provisions of Federal and State environmental law, 

14 and shall also require the following: 

15 (1) Standards at least as effective as the safety 

16 and environmental mitigation measures set forth in 

17 items 1 through 29 at pages 167 through 169 of the 

18 ‘‘Final Legislative Environmental Impact State19 ment’’ (April 1987) on the Coastal Plain. 

20 (2) Seasonal limitations on exploration, develop21 ment, and related activities, where necessary, to 

22 avoid significant adverse effects during periods of 

23 concentrated fish and wildlife breeding, denning, 

24 nesting, spawning, and migration. 


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1 (3) Design safety and construction standards 

2 for all pipelines and any access and service roads, 

3 that— 

4 (A) minimize, to the maximum extent pos5 sible, adverse effects upon the passage of mi6 gratory species such as caribou; and 

7 (B) minimize adverse effects upon the flow 

8 of surface water by requiring the use of cul9 verts, bridges, and other structural devices. 

10 (4) Prohibitions on general public access and 

11 use on all pipeline access and service roads. 

12 (5) Stringent reclamation and rehabilitation re13 quirements, consistent with the standards set forth 

14 in this subtitle, requiring the removal from the 

15 Coastal Plain of all oil and gas development and 

16 production facilities, structures, and equipment upon 

17 completion of oil and gas production operations, ex18 cept that the Secretary may exempt from the re19 quirements of this paragraph those facilities, struc20 tures, or equipment that the Secretary determines 

21 would assist in the management of the Arctic Na22 tional Wildlife Refuge and that are donated to the 

23 United States for that purpose. 

24 (6) Appropriate prohibitions or restrictions on 

25 access by all modes of transportation. 


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1 (7) Appropriate prohibitions or restrictions on 

2 sand and gravel extraction. 

3 (8) Consolidation of facility siting. 

4 (9) Appropriate prohibitions or restrictions on 

5 use of explosives. 

6 (10) Avoidance, to the extent practicable, of 

7 springs, streams, and river system; the protection of 

8 natural surface drainage patterns, wetlands, and ri9 parian habitats; and the regulation of methods or 

10 techniques for developing or transporting adequate 

11 supplies of water for exploratory drilling. 

12 (11) Avoidance or minimization of air traffic-re13 lated disturbance to fish and wildlife. 

14 (12) Treatment and disposal of hazardous and 

15 toxic wastes, solid wastes, reserve pit fluids, drilling 

16 muds and cuttings, and domestic wastewater, includ17 ing an annual waste management report, a haz18 ardous materials tracking system, and a prohibition 

19 on chlorinated solvents, in accordance with applica20 ble Federal and State environmental law. 

21 (13) Fuel storage and oil spill contingency plan22 ning. 

23 (14) Research, monitoring, and reporting re24 quirements. 

25 (15) Field crew environmental briefings. 


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1 (16) Avoidance of significant adverse effects 

2 upon subsistence hunting, fishing, and trapping by 

3 subsistence users. 

4 (17) Compliance with applicable air and water 

5 quality standards. 

6 (18) Appropriate seasonal and safety zone des7 ignations around well sites, within which subsistence 

8 hunting and trapping shall be limited. 

9 (19) Reasonable stipulations for protection of 

10 cultural and archeological resources. 

11 (20) All other protective environmental stipula12 tions, restrictions, terms, and conditions deemed 

13 necessary by the Secretary. 

14 (e) CONSIDERATIONS.—In preparing and promul15 gating regulations, lease terms, conditions, restrictions, 

16 prohibitions, and stipulations under this section, the Sec17 retary shall consider the following: 

18 (1) The stipulations and conditions that govern 

19 the National Petroleum Reserve-Alaska leasing pro20 gram, as set forth in the 1999 Northeast National 

21 Petroleum Reserve-Alaska Final Integrated Activity 

22 Plan/Environmental Impact Statement. 

23 (2) The environmental protection standards 

24 that governed the initial Coastal Plain seismic exploVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 ration program under parts 37.31 to 37.33 of title 

2 50, Code of Federal Regulations. 

3 (3) The land use stipulations for exploratory 

4 drilling on the KIC–ASRC private lands that are set 

5 forth in appendix 2 of the August 9, 1983, agree6 ment between Arctic Slope Regional Corporation and 

7 the United States. 

8 (f) FACILITY CONSOLIDATION PLANNING.— 

9 (1) IN GENERAL.—The Secretary shall, after 

10 providing for public notice and comment, prepare 

11 and update periodically a plan to govern, guide, and 

12 direct the siting and construction of facilities for the 

13 exploration, development, production, and transpor14 tation of Coastal Plain oil and gas resources. 

15 (2) OBJECTIVES.—The plan shall have the fol16 lowing objectives: 

17 (A) Avoiding unnecessary duplication of fa18 cilities and activities. 

19 (B) Encouraging consolidation of common 

20 facilities and activities. 

21 (C) Locating or confining facilities and ac22 tivities to areas that will minimize impact on 

23 fish and wildlife, their habitat, and the environ24 ment. 


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1 (D) Utilizing existing facilities wherever 

2 practicable. 

3 (E) Enhancing compatibility between wild4 life values and development activities. 

5 (g) ACCESS TO PUBLIC LANDS.—The Secretary 

6 shall— 

7 (1) manage public lands in the Coastal Plain 

8 subject to subsections (a) and (b) of section 811 of 

9 the Alaska National Interest Lands Conservation 

10 Act (16 U.S.C. 3121); and 

11 (2) ensure that local residents shall have rea12 sonable access to public lands in the Coastal Plain 

13 for traditional uses. 

14 SEC. 428. EXPEDITED JUDICIAL REVIEW. 

15 (a) FILING OF COMPLAINT.— 

16 (1) DEADLINE.—Subject to paragraph (2), any 

17 complaint seeking judicial review of any provision of 

18 this Act or any action of the Secretary under this 

19 subtitle shall be filed— 

20 (A) except as provided in subparagraph 

21 (B), within the 90-day period beginning on the 

22 date of the action being challenged; or 

23 (B) in the case of a complaint based solely 

24 on grounds arising after such period, within 90 

25 days after the complainant knew or reasonably 


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1 should have known of the grounds for the com2 plaint. 

3 (2) VENUE.—Any complaint seeking judicial re4 view of any provision of this subtitle or any action 

5 of the Secretary under this subtitle may be filed only 

6 in the United States Court of Appeals for the Dis7 trict of Columbia. 

8 (3) LIMITATION ON SCOPE OF CERTAIN RE9 VIEW.—Judicial review of a Secretarial decision to 

10 conduct a lease sale under this subtitle, including 

11 the environmental analysis thereof, shall be limited 

12 to whether the Secretary has complied with the 

13 terms of this subtitle and shall be based upon the 

14 administrative record of that decision. The Sec15 retary’s identification of a preferred course of action 

16 to enable leasing to proceed and the Secretary’s 

17 analysis of environmental effects under this subtitle 

18 shall be presumed to be correct unless shown other19 wise by clear and convincing evidence to the con20 trary. 

21 (b) LIMITATION ON OTHER REVIEW.—Actions of the 

22 Secretary with respect to which review could have been 

23 obtained under this section shall not be subject to judicial 

24 review in any civil or criminal proceeding for enforcement. 


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1 SEC. 429. FEDERAL AND STATE DISTRIBUTION OF REVE2 NUES. 

3 (a) IN GENERAL.—Notwithstanding any other provi4 sion of law, of the amount of adjusted bonus, rental, and 

5 royalty revenues from Federal oil and gas leasing and op6 erations authorized under this subtitle— 

7 (1) 25 percent shall be paid to the State of 

8 Alaska; and 

9 (2) except as provided in section 432(d), the 

10 balance shall be deposited into the Treasury as mis11 cellaneous receipts. 

12 (b) PAYMENTS TO ALASKA.—Payments to the State 

13 of Alaska under this section shall be made semiannually. 

14 SEC. 430. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

15 (a) IN GENERAL.—The Secretary shall issue rights16 of-way and easements across the Coastal Plain for the 

17 transportation of oil and gas— 

18 (1) except as provided in paragraph (2), under 

19 section 28 of the Mineral Leasing Act (30 U.S.C. 

20 185), without regard to title XI of the Alaska Na21 tional Interest Lands Conservation Act (30 U.S.C. 

22 3161 et seq.); and 

23 (2) under title XI of the Alaska National Inter24 est Lands Conservation Act (30 U.S.C. 3161 et 

25 seq.), for access authorized by sections 1110 and 

26 1111 of that Act (16 U.S.C. 3170 and 3171). 


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1 (b) TERMS AND CONDITIONS.—The Secretary shall 

2 include in any right-of-way or easement issued under sub3 section (a) such terms and conditions as may be necessary 

4 to ensure that transportation of oil and gas does not result 

5 in a significant adverse effect on the fish and wildlife, sub6 sistence resources, their habitat, and the environment of 

7 the Coastal Plain, including requirements that facilities be 

8 sited or designed so as to avoid unnecessary duplication 

9 of roads and pipelines. 

10 (c) REGULATIONS.—The Secretary shall include in 

11 regulations under section 423(g) provisions granting 

12 rights-of-way and easements described in subsection (a) 

13 of this section. 

14 SEC. 431. CONVEYANCE. 

15 In order to maximize Federal revenues by removing 

16 clouds on title to lands and clarifying land ownership pat17 terns within the Coastal Plain, the Secretary, notwith18 standing the provisions of section 1302(h)(2) of the Alas19 ka National Interest Lands Conservation Act (16 U.S.C. 

20 3192(h)(2)), shall convey— 

21 (1) to the Kaktovik Inupiat Corporation the 

22 surface estate of the lands described in paragraph 1 

23 of Public Land Order 6959, to the extent necessary 

24 to fulfill the Corporation’s entitlement under sec25 tions 12 and 14 of the Alaska Native Claims SettleVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 ment Act (43 U.S.C. 1611 and 1613) in accordance 

2 with the terms and conditions of the Agreement be3 tween the Department of the Interior, the United 

4 States Fish and Wildlife Service, the Bureau of 

5 Land Management, and the Kaktovik Inupiat Cor6 poration effective January 22, 1993; and 

7 (2) to the Arctic Slope Regional Corporation 

8 the remaining subsurface estate to which it is enti9 tled pursuant to the August 9, 1983, agreement be10 tween the Arctic Slope Regional Corporation and the 

11 United States of America. 

12 SEC. 432. LOCAL GOVERNMENT IMPACT AID AND COMMU13 NITY SERVICE ASSISTANCE. 

14 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

15 (1) IN GENERAL.—The Secretary may use 

16 amounts available from the Coastal Plain Local Gov17 ernment Impact Aid Assistance Fund established by 

18 subsection (d) to provide timely financial assistance 

19 to entities that are eligible under paragraph (2) and 

20 that are directly impacted by the exploration for or 

21 production of oil and gas on the Coastal Plain under 

22 this subtitle. 

23 (2) ELIGIBLE ENTITIES.—The North Slope 

24 Borough, the City of Kaktovik, and any other bor25 ough, municipal subdivision, village, or other comVerDate Nov 24 2008 00:03 May 27, 2009 Jkt 079200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H2539.IH H2539

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1 munity in the State of Alaska that is directly im2 pacted by exploration for, or the production of, oil 

3 or gas on the Coastal Plain under this Act, as deter4 mined by the Secretary, shall be eligible for financial 

5 assistance under this section. 

6 (b) USE OF ASSISTANCE.—Financial assistance 

7 under this section may be used only for— 

8 (1) planning for mitigation of the potential ef9 fects of oil and gas exploration and development on 

10 environmental, social, cultural, recreational, and sub11 sistence values; 

12 (2) implementing mitigation plans and main13 taining mitigation projects; 

14 (3) developing, carrying out, and maintaining 

15 projects and programs that provide new or expanded 

16 public facilities and services to address needs and 

17 problems associated with such effects, including fire18 fighting, police, water, waste treatment, medivac, 

19 and medical services; and 

20 (4) establishment of a coordination office, by 

21 the north slope borough, in the City of Kaktovik, 

22 which shall— 

23 (A) coordinate with and advise developers 

24 on local conditions, impact, and history of the 

25 areas utilized for development; and 


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1 (B) provide to the Committee on Resources 

2 of the House of Representatives and the Com3 mittee on Energy and Natural Resources of the 

4 Senate an annual report on the status of co5 ordination between developers and the commu6 nities affected by development. 

7 (c) APPLICATION.— 

8 (1) IN GENERAL.—Any community that is eligi9 ble for assistance under this section may submit an 

10 application for such assistance to the Secretary, in 

11 such form and under such procedures as the Sec12 retary may prescribe by regulation. 

13 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

14 community located in the North Slope Borough may 

15 apply for assistance under this section either directly 

16 to the Secretary or through the North Slope Bor17 ough. 

18 (3) APPLICATION ASSISTANCE.—The Secretary 

19 shall work closely with and assist the North Slope 

20 Borough and other communities eligible for assist21 ance under this section in developing and submitting 

22 applications for assistance under this section. 

23 (d) ESTABLISHMENT OF FUND.— 


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1 (1) IN GENERAL.—There is established in the 

2 Treasury the Coastal Plain Local Government Im3 pact Aid Assistance Fund. 

4 (2) USE.—Amounts in the fund may be used 

5 only for providing financial assistance under this 

6 section. 

7 (3) DEPOSITS.—Subject to paragraph (4), there 

8 shall be deposited into the fund amounts received by 

9 the United States as revenues derived from rents, 

10 bonuses, and royalties from Federal leases and lease 

11 sales authorized under this subtitle. 

12 (4) LIMITATION ON DEPOSITS.—The total 

13 amount in the fund may not exceed $11,000,000. 

14 (5) INVESTMENT OF BALANCES.—The Sec15 retary of the Treasury shall invest amounts in the 

16 fund in interest bearing government securities. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro18 vide financial assistance under this section there is author19 ized to be appropriated to the Secretary from the Coastal 

20 Plain Local Government Impact Aid Assistance Fund 

21 $5,000,000 for each fiscal year. 

Æ 


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