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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1891 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1891

  To authorize the leasing, development, production, and economically 
  feasible and prudent transportation of oil and gas in and from the 
                 Coastal Plain, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 19, 2005

  Ms. Murkowski (for herself, Mr. Stevens, Mr. Akaka, and Mr. Inouye) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
  To authorize the leasing, development, production, and economically 
  feasible and prudent transportation of oil and gas in and from the 
                 Coastal Plain, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Arctic Coastal Plain Domestic Energy 
Security Act of 2005''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as the ``1002 Coastal Plain Area'' on the map.
            (2) Federal agreement.--The term ``Federal Agreement'' 
        means the Federal Agreement and Grant Right-of-Way for the 
        Trans-Alaska Pipeline issued on January 23, 1974, in accordance 
        with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and 
        the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et 
        seq.).
            (3) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to 
        section 1002 of the Alaska National Interest Lands Conservation 
        Act (16 U.S.C. 3142) and section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (4) Map.--The term ``map'' means the map entitled ``Arctic 
        National Wildlife Refuge'', dated September 2005, and prepared 
        by the United States Geological Survey.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior (or the designee of the Secretary), acting 
        through the Director of the Bureau of Land Management in 
        consultation with the Director of the United States Fish and 
        Wildlife Service and in coordination with a State coordinator 
        appointed by the Governor of the State of Alaska.

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

    (a) In General.--
            (1) Authorization.--Congress authorizes the leasing, 
        development, production, and economically feasible and prudent 
        transportation of oil and gas in and from the 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 Coastal Plain while taking 
                into consideration the interests and concerns of 
                residents of the Coastal Plain, which is the homeland 
                of the Kaktovikmiut Inupiat; 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 
                        Coastal Plain will result in no significant 
                        adverse effect on fish and wildlife, their 
                        habitat, subsistence resources, and the 
                        environment; and
                            (ii) 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) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents contained 
        in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
        striking the item relating to section 1003.
    (c) 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 leasing program and activities 
                authorized by this section in the 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 department of the interior's 
        legislative environmental impact statement.--The Final 
        Statement shall be considered to satisfy the requirements under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.) that apply with respect to prelease activities, 
        including 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.--Before conducting the first lease 
                sale under 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 actions authorized by 
                this Act that are not referred to in paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not be required--
                            (i) to identify nonleasing alternative 
                        courses of action; or
                            (ii) to analyze the environmental effects 
                        of those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 18 months after the date of enactment of this Act, 
                the Secretary shall--
                            (i) identify only a preferred action and a 
                        single leasing alternative for the first lease 
                        sale authorized under this Act; and
                            (ii) analyze the environmental effects and 
                        potential mitigation measures for those 2 
                        alternatives.
                    (D) Public comments.--In carrying out this 
                paragraph, the Secretary shall consider only public 
                comments that specifically address the preferred action 
                of the Secretary that are filed not later than 20 days 
                after the date of publication of an environmental 
                analysis.
                    (E) Effect of compliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy all requirements for the 
                analysis and consideration of the environmental effects 
                of proposed leasing under this Act.
    (d) Relationship to State and Local Authority.--Nothing in this Act 
expands or limits any State or local regulatory authority.
    (e) Special Areas.--
            (1) Designation.--
                    (A) In general.--The Secretary, after consultation 
                with the State of Alaska, the City of Kaktovik, Alaska, 
                and the North Slope Borough, Alaska, may designate not 
                more than 45,000 acres of the Coastal Plain as a 
                special area if the Secretary determines that the 
                special area would be of such unique character and 
                interest as to require special management and 
                regulatory protection.
                    (B) Sadlerochit spring area.--The Secretary shall 
                designate as a special area in accordance with 
                subparagraph (A) the Sadlerochit Spring area, 
                comprising approximately 4,000 acres as depicted on the 
                map.
            (2) Management.--The Secretary shall manage each special 
        area designated under this subsection in a manner that--
                    (A) respects and protects the Native people of the 
                area; and
                    (B) preserves the unique and diverse character of 
                the area, including fish, wildlife, subsistence 
                resources, and cultural values of the area.
            (3) Exclusion from leasing or surface occupancy.--
                    (A) In general.--The Secretary may exclude any 
                special area designated under this subsection from 
                leasing.
                    (B) No surface occupancy.--If the Secretary leases 
                all or a portion of a special area for the purposes of 
                oil and gas exploration, development, production, and 
                related activities, there shall be no surface occupancy 
                of the land comprising the special area.
            (4) Directional drilling.--Notwithstanding any other 
        provision of this subsection, the Secretary may lease all or a 
        portion of a special area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the special area.
    (f) Limitation on Closed Areas.--The Secretary may not close land 
within the Coastal Plain to oil and gas leasing or to exploration, 
development, or production except in accordance with this Act.
    (g) Regulations.--
            (1) In general.--Not later than 15 months after the date of 
        enactment of this Act, in consultation with appropriate 
        agencies of the State of Alaska, the North Slope Borough, 
        Alaska, and the City of Kaktovik, Alaska (to ensure that 
        impacts on the residents of the Coastal Plain are considered), 
        the Secretary shall issue such regulations as are necessary to 
        carry out this Act, including rules and regulations relating to 
        protection of the fish and wildlife, fish and wildlife habitat, 
        subsistence resources, and environment of the Coastal Plain.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, as appropriate, revise the rules and 
        regulations issued under paragraph (1) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the attention of the Secretary.

SEC. 4. LEASE SALES.

    (a) In General.--Land may be leased pursuant to 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 Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after that nomination 
        process; 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 22 months after the date of enactment of 
        this Act, conduct the first lease sale under this Act;
            (2) not later than September 30, 2010, conduct a second 
        lease sale under this Act; and
            (3) conduct additional sales at appropriate intervals if, 
        as determined by the Secretary, sufficient interest in 
        development exists to warrant the conduct of the additional 
        sales.

SEC. 5. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--Upon payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary may grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 4 a lease for any land on the 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 
        described in 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 amount 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 may close, on a seasonal 
        basis, such portions of the 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 Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of land within the Coastal Plain and any other Federal land 
        that is adversely affected in connection with exploration, 
        development, production, or transportation activities conducted 
        under the lease and within the 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, that reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for land 
        required to be reclaimed under this Act shall be, to the 
        maximum extent practicable--
                    (A) a condition capable of supporting the uses that 
                the land was capable of supporting prior to any 
                exploration, development, or production activities; or
                    (B) upon application by the lessee, to a higher or 
                better standard, as approved by the Secretary;
            (6) 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);
            (7) provide that each lessee, and each agent and contractor 
        of a lessee, use their best efforts 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; and
            (8) contain such other provisions as the Secretary 
        determines to be necessary to ensure compliance with this Act 
        and regulations issued under this Act.
    (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. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard to Govern Authorized 
Coastal Plain Activities.--In accordance with section 3, the Secretary 
shall administer this Act through regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other provisions that--
            (1) ensure, to the maximum extent practicable, that oil and 
        gas exploration, development, and production activities on the 
        Coastal Plain will result in no significant adverse effect on 
        fish and wildlife, fish and wildlife habitat, and the 
        environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure, to the maximum extent practicable, that the 
        maximum surface acreage covered in connection with the leasing 
        program by production and support facilities, including 
        airstrips and any areas covered by gravel berms or piers for 
        support of pipelines, does not exceed 2,000 acres on the 
        Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
require, with respect to any proposed drilling and related activities 
on the Coastal Plain, that--
            (1) a site-specific analysis be made of the probable 
        effects, if any, that the drilling or related activities will 
        have on fish and wildlife, fish and wildlife habitat, 
        subsistence resources, subsistence uses, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the maximum extent practicable) any 
        significant adverse effect identified under paragraph (1); and
            (3) the development of the plan occur after consultation 
        with--
                    (A) each agency having jurisdiction over matters 
                mitigated by the plan;
                    (B) the State of Alaska;
                    (C) the City of Kaktovik, Alaska; and
                    (D) North Slope Borough, Alaska.
    (c) Regulations To Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this Act, the Secretary shall prepare 
and issue regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other measures designed to ensure, to 
the maximum extent practicable, that the activities carried out on the 
Coastal Plain under this Act are conducted in a manner consistent with 
the purposes and environmental requirements of this Act.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this Act shall require--
            (1) compliance with all applicable provisions of Federal 
        and State environmental law (including regulations);
            (2) implementation of and compliance with--
                    (A) standards that are at least as effective as the 
                safety and environmental mitigation measures, as 
                described in items 1 through 29 on pages 167 through 
                169 of the Final Statement, on the Coastal Plain;
                    (B) seasonal limitations on exploration, 
                development, and related activities, as necessary, to 
                avoid significant adverse effects during periods of 
                concentrated fish and wildlife breeding, denning, 
                nesting, spawning, and migration;
                    (C) design safety and construction standards for 
                all pipelines and any access and service roads that 
                minimize, to the maximum extent practicable, adverse 
                effects on--
                            (i) the passage of migratory species (such 
                        as caribou); and
                            (ii) the flow of surface water by requiring 
                        the use of culverts, bridges, and other 
                        structural devices;
                    (D) prohibitions on general public access to, and 
                use of, all pipeline access and service roads;
                    (E) stringent reclamation and rehabilitation 
                requirements in accordance with this Act for the 
                removal from the Coastal Plain of all oil and gas 
                development and production facilities, structures, and 
                equipment on completion of oil and gas production 
                operations, except in a case in which the Secretary 
                determines that those facilities, structures, or 
                equipment--
                            (i) would assist in the management of the 
                        Arctic National Wildlife Refuge; and
                            (ii) are donated to the United States for 
                        that purpose;
                    (F) appropriate prohibitions or restrictions on--
                            (i) access by all modes of transportation;
                            (ii) sand and gravel extraction; and
                            (iii) use of explosives;
                    (G) reasonable stipulations for protection of 
                cultural and archaeological resources;
                    (H) measures to protect groundwater and surface 
                water, including--
                            (i) avoidance, to the maximum extent 
                        practicable, of springs, streams, and river 
                        systems;
                            (ii) the protection of natural surface 
                        drainage patterns, wetland, and riparian 
                        habitats; and
                            (iii) the regulation of methods or 
                        techniques for developing or transporting 
                        adequate supplies of water for exploratory 
                        drilling; and
                    (I) research, monitoring, and reporting 
                requirements;
            (3) that exploration activities (except surface geological 
        studies) be limited to the period between approximately 
        November 1 and May 1 of each year and be supported, if 
        necessary, by ice roads, winter trails with adequate snow 
        cover, ice pads, ice airstrips, and air transport methods 
        (except that those exploration activities may be permitted at 
        other times if the Secretary determines that the exploration 
        will have no significant adverse effect on fish and wildlife, 
        fish and wildlife habitat, subsistence resources, and the 
        environment of the Coastal Plain);
            (4) consolidation of facility siting;
            (5) avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife;
            (6) treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including, in accordance with 
        applicable Federal and State environmental laws (including 
        regulations)--
                    (A) preparation of an annual waste management 
                report;
                    (B) development and implementation of a hazardous 
                materials tracking system; and
                    (C) prohibition on the use of chlorinated solvents;
            (7) fuel storage and oil spill contingency planning;
            (8) conduct of periodic field crew environmental briefings;
            (9) avoidance of significant adverse effects on subsistence 
        hunting, fishing, and trapping;
            (10) compliance with applicable air and water quality 
        standards;
            (11) appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited; and
            (12) development and implementation of such other 
        protective environmental requirements, restrictions, terms, and 
        conditions as the Secretary, after consultation with the State 
        of Alaska, the City of Kaktovik, Alaska, and North Slope 
        Borough, Alaska, determines to be necessary.
    (e) Considerations.--In preparing and issuing regulations, lease 
terms, conditions, restrictions, prohibitions, and stipulations under 
this section, the Secretary shall take into consideration--
            (1) the stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement;
            (2) the environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 through 37.33 of title 50, Code of Federal 
        Regulations (or successor regulations); and
            (3) the land use stipulations for exploratory drilling on 
        the KIC-ASRC private land described in Appendix 2 of the 
        agreement between Arctic Slope Regional Corporation and the 
        United States dated August 9, 1983.
    (f) Facility Consolidation Planning.--
            (1) In general.--After providing for public notice and 
        comment, the Secretary shall prepare and periodically update a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of oil and gas resources from the Coastal Plain.
            (2) Objectives.--The objectives of the plan shall be--
                    (A) the avoidance of unnecessary duplication of 
                facilities and activities;
                    (B) the encouragement of consolidation of common 
                facilities and activities;
                    (C) the location or confinement of facilities and 
                activities to areas that will minimize impact on fish 
                and wildlife, fish and wildlife habitat, subsistence 
                resources, and the environment;
                    (D) the use of existing facilities, to the maximum 
                extent practicable; and
                    (E) the enhancement of compatibility between 
                wildlife values and development activities.
    (g) Access to Public Land.--The Secretary shall--
            (1) manage public land in the Coastal Plain in accordance 
        with subsections (a) and (b) of section 811 of the Alaska 
        National Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public land in the Coastal Plain for traditional 
        uses.

SEC. 8. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaints.--
            (1) Deadline.--A complaint seeking judicial review of a 
        provision of this Act or an action of the Secretary under this 
        Act shall be filed--
                    (A) except as provided in subparagraph (B), during 
                the 90-day period beginning on the date on which the 
                action being challenged was carried out; or
                    (B) in the case of a complaint based solely on 
                grounds arising after the 90-day period described in 
                subparagraph (A), by not later than 90 days after the 
                date on which the complainant knew or reasonably should 
                have known about the grounds for the complaint.
            (2) Venue.--A complaint seeking judicial review of a 
        provision of this Act or an action of the Secretary under this 
        Act shall be filed in the United States Court of Appeals for 
        the District of Columbia.
            (3) Scope.--
                    (A) In general.--Judicial review of a decision of 
                the Secretary relating to a lease sale under this Act 
                (including an environmental analysis of such a lease 
                sale) shall be--
                            (i) limited to a review of whether the 
                        decision is in accordance with this Act; and
                            (ii) based on the administrative record of 
                        the decision.
                    (B) Presumptions.--Any identification by the 
                Secretary of a preferred course of action relating to a 
                lease sale, and any analysis by the Secretary of 
                environmental effects, under this Act shall be presumed 
                to be correct unless proven otherwise by clear and 
                convincing evidence.
    (b) Limitation on Other Review.--Any action of the Secretary that 
is subject to judicial review under this section shall not be subject 
to judicial review in any civil or criminal proceeding for enforcement.

SEC. 9. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    Notwithstanding any other provision of law, of the amount of 
adjusted bonus, rental, and royalty revenues from oil and gas leasing 
and operations under this Act--
            (1) 50 percent shall be paid semiannually to the State of 
        Alaska; and
            (2) the balance of the amount shall be deposited in 
        accordance with sections 12 and 13.

SEC. 10. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

    (a) Exemption.--Sections 1101 through 1108 of the Alaska National 
Interest Lands Conservation Act (16 U.S.C. 3161 et seq.) shall not 
apply to any right-of-way or easement across the Coastal Plain for the 
transportation of oil and gas issued by the Secretary under section 28 
of the Mineral Leasing Act (30 U.S.C. 185).
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement described in subsection (a) such terms and 
conditions as the Secretary determines to be necessary to ensure that 
the transportation of oil or gas does not significantly adversely 
affect any fish, wildlife, subsistence resource, or habitat, or the 
environment, of the Coastal Plain, including terms and conditions 
requiring facilities to be sited or designed to avoid any unnecessary 
duplication of roads or pipelines.
    (c) Regulations.--In promulgating regulations pursuant to section 
3(g), the Secretary shall include provisions for rights-of-way and 
easements described in subsection (a).

SEC. 11. CONVEYANCE.

    Notwithstanding section 1302(h)(2) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any impediment 
on a 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 section 12 of the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1611), 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.

SEC. 12. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Establishment of Fund.--
            (1) In general.--There is established in the Treasury a 
        fund, to be known as the ``Coastal Plain Local Government 
        Impact Aid Assistance Fund'' (referred to in this section as 
        the ``Fund'').
            (2) Deposits.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary of the Treasury shall deposit into the Fund 
                an amount equal to 49 percent of the amount of adjusted 
                bonus, rental, and royalty revenues from oil and gas 
                leasing and operations under this Act.
                    (B) Limitation.--The total amount in the Fund shall 
                not exceed $15,000,000.
            (3) Investment.--The Secretary of the Treasury shall invest 
        amounts in the Fund in interest-bearing securities of the 
        United States.
            (4) Availability of funds.--Not later than September 30, 
        2006, and annually thereafter, the Secretary of the Treasury 
        shall make available to the Secretary not less than $7,500,000 
        to provide assistance to communities under subsection (b).
    (b) Assistance.--The Secretary, in cooperation with the Mayor of 
the North Slope Borough, shall use amounts in the Fund to provide 
assistance to the City of Kaktovik, Alaska, North Slope Borough, 
Alaska, and any other borough, municipal subdivision, village, or other 
community in the State of Alaska that is directly impacted by an 
exploration for, or the production of, oil or gas on the Coastal Plain 
under this Act, as determined by the Secretary.
    (c) Application.--
            (1) In general.--To receive assistance under subsection 
        (b), a community described in that subsection shall submit to 
        the Secretary, or to the Mayor of the North Slope Borough, an 
        application in such time, in such manner, and containing such 
        information as the Secretary may require.
            (2) Action by north slope borough.--The Mayor of the North 
        Slope Borough shall submit to the Secretary each application 
        received under paragraph (1) as soon as practicable after the 
        date on which the application is received.
            (3) Assistance of secretary.--The Secretary shall assist 
        communities in submitting applications under this subsection, 
        to the maximum extent practicable.
    (d) Use of Funds.--A community that receives funds under subsection 
(b) may use the funds--
            (1) to plan for mitigation, implement a mitigation plan, or 
        maintain a mitigation project to address the potential effects 
        of oil and gas exploration and development on environmental, 
        social, cultural, recreational, and subsistence resources of 
        the community;
            (2) to develop, carry out, and maintain--
                    (A) a project to provide new or expanded public 
                facilities; or
                    (B) services to address the needs and problems 
                associated with the effects described in paragraph (1), 
                including firefighting, police, water and waste 
                treatment, first responder, and other medical services;
            (3) to compensate residents of the Coastal Plain for 
        significant damage to environmental, social, cultural, 
        recreational, or subsistence resources; and
            (4) in the City of Kaktovik, Alaska--
                    (A) to develop a mechanism for providing members of 
                the Kaktovikmiut Inupiat community an opportunity to--
                            (i) monitor development on the Coastal 
                        Plain; and
                            (ii) provide information and 
                        recommendations to the Secretary based on 
                        traditional aboriginal knowledge of the natural 
                        resources, flora, fauna, and ecological 
                        processes of the Coastal Plain; and
                    (B) to establish a local coordination office, to be 
                managed by the Mayor of the North Slope Borough, in 
                coordination with the City of Kaktovik, Alaska--
                            (i) to coordinate with and advise 
                        developers on local conditions and the history 
                        of areas affected by development;
                            (ii) to provide to the Committee on 
                        Resources of the House of Representatives and 
                        the Committee on Energy and Natural Resources 
                        of the Senate annual reports on the status of 
                        the coordination between developers and 
                        communities affected by development;
                            (iii) to collect from residents of the 
                        Coastal Plain information regarding the impacts 
                        of development on fish, wildlife, habitats, 
                        subsistence resources, and the environment of 
                        the Coastal Plain; and
                            (iv) to ensure that the information 
                        collected under clause (iii) is submitted to--
                                    (I) developers; and
                                    (II) any appropriate Federal 
                                agency.
                                 <all>
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