104TH CONGRESS

1ST SESSION S. 395

AN ACT

To authorize and direct the Secretary of Energy to sell

the Alaska Power Administration, and to authorize the

export of Alaska North Slope crude oil, and for other

purposes.

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

2 SEC. 101. SHORT TITLE.

3 This title may be cited as the ‘‘Alaska Power Admin4 istration Asset Sale and Termination Act’’.

5 SEC. 102. SALE OF SNETTISHAM AND EKLUTNA HYDRO6 ELECTRIC PROJECTS.

7 (a) The Secretary of Energy is authorized and di8 rected to sell the Snettisham Hydroelectric Project (re9 ferred to in this Act as ‘‘Snettisham’’) to the State of

10 Alaska in accordance with the terms of this Act and the

11 February 10, 1989, Snettisham Purchase Agreement, as

12 amended, between the Alaska Power Administration of the

13 United States Department of Energy and the Alaska

14 Power Authority and the Authority’s successors.

15 (b) The Secretary of Energy is authorized and di16 rected to sell the Eklutna Hydroelectric Project (referred

17 to in this Act as ‘‘Eklutna’’) to the Municipality of An18 chorage doing business as Municipal Light and Power, the

19 Chugach Electric Association, Inc., and the Matanuska

20 Electric Association, Inc. (referred to in this Act as

21 ‘‘Eklutna Purchasers’’), in accordance with the terms of

22 this Act and the August 2, 1989, Eklutna Purchase

23 Agreement, as amended, between the Alaska Power Ad24 ministration of the United States Department of Energy

25 and the Eklutna Purchasers.
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1 (c) The heads of other Federal departments and

2 agencies, including the Secretary of the Interior, shall as3 sist the Secretary of Energy in implementing the sales au4 thorized and directed by this Act.

5 (d) Proceeds from the sales required by this title shall

6 be deposited in the Treasury of the United States to the

7 credit of miscellaneous receipts.

8 (e) There are authorized to be appropriated such

9 sums as may be necessary to prepare, survey, and acquire

10 Eklutna and Snettisham assets for sale and conveyance.

11 Such preparations and acquisitions shall provide sufficient

12 title to ensure the beneficial use, enjoyment, and occu13 pancy by the purchaser.

14 SEC. 103. EXEMPTION AND OTHER PROVISIONS.

15 (a)(1) After the sales authorized by this Act occur,

16 Eklutna and Snettisham, including future modifications,

17 shall continue to be exempt from the requirements of the

18 Federal Power Act (16 U.S.C. 791a et seq.) as amended.

19 (2) The exemption provided by paragraph (1) does

20 not affect the Memorandum of Agreement entered into

21 among the State of Alaska, the Eklutna Purchasers, the

22 Alaska Energy Authority, and Federal fish and wildlife

23 agencies regarding the protection, mitigation of, damages

24 to, and enhancement of fish and wildlife, dated August

25 7, 1991, which remains in full force and effect.
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1 (3) Nothing in this title or the Federal Power Act

2 preempts the State of Alaska from carrying out the re3 sponsibilities and authorities of the memorandum of

4 Agreement.

5 (b)(1) The United States District Court for the Dis6 trict of Alaska shall have jurisdiction to review decisions

7 made under the Memorandum of Agreement and to en8 force the provisions of the Memorandum of Agreement,

9 including the remedy of specific performance.

10 (2) An action seeking review of a Fish and Wildlife

11 Program (‘‘Program’’) of the Governor of Alaska under

12 the Memorandum of Agreement or challenging actions of

13 any of the parties to the Memorandum of Agreement prior

14 to the adoption of the Program shall be brought not later

15 than ninety days after the date on which the Program is

16 adopted by the Governor of Alaska, or be barred.

17 (3) An action seeking review of implementation of the

18 Program shall be brought not later than ninety days after

19 the challenged act implementing the Program, or be

20 barred.

21 (c) With respect to Eklutna lands described in Ex22 hibit A of the Eklutna Purchase Agreement:

23 (1) The Secretary of the Interior shall issue

24 rights-of-way to the Alaska Power Administration
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1 for subsequent reassignment to the Eklutna Pur2 chasers—

3 (A) at no cost to the Eklutna Purchasers;

4 (B) to remain effective for a period equal

5 to the life of Eklutna as extended by improve6 ments, repairs, renewals, or replacements; and

7 (C) sufficient for the operation of, mainte8 nance of, repair to, and replacement of, and ac9 cess to, Eklutna facilities located on military

10 lands and lands managed by the Bureau of

11 Land Management, including lands selected by

12 the State of Alaska.

13 (2) If the Eklutna Purchasers subsequently sell

14 or transfer Eklutna to private ownership, the Bu15 reau of Land Management may assess reasonable

16 and customary fees for continued use of the rights17 of-way on lands managed by the Bureau of Land

18 Management and military lands in accordance with

19 existing law.

20 (3) Fee title to lands at Anchorage Substation

21 shall be transferred to Eklutna Purchasers at no ad22 ditional cost if the Secretary of the Interior deter23 mines that pending claims to, and selections of,

24 those lands are invalid or relinquished.
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1 (4) With respect to the Eklutna lands identified

2 in paragraph 1 of Exhibit A of the Eklutna Pur3 chase Agreement, the State of Alaska may select,

4 and the Secretary of the Interior shall convey to the

5 State, improved lands under the selection entitle6 ments in section 6 of the Act of July 7, 1958 (com7 monly referred to as the Alaska Statehood Act, Pub8 lic Law 85–508, 72 Stat. 339, as amended), and the

9 North Anchorage Land Agreement dated January

10 31, 1983. This conveyance shall be subject to the

11 rights-of-way provided to the Eklutna Purchasers

12 under paragraph (1).

13 (d) With respect to the Snettisham lands identified

14 in paragraph 1 of Exhibit A of the Snettisham Purchase

15 Agreement and Public Land Order No. 5108, the State

16 of Alaska may select, and the Secretary of the Interior

17 shall convey to the State of Alaska, improved lands under

18 the selection entitlements in section 6 of the Act of July

19 7, 1958 (commonly referred to as the Alaska Statehood

20 Act, Public Law 85–508, 72 Stat. 339, as amended).

21 (e) Not later than one year after both of the sales

22 authorized in section 102 have occurred, as measured by

23 the Transaction Dates stipulated in the Purchase Agree24 ments, the Secretary of Energy shall—
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1 (1) complete the business of, and close out, the

2 Alaska Power Administration;

3 (2) submit to Congress a report documenting

4 the sales; and

5 (3) return unobligated balances of funds appro6 priated for the Alaska Power Administration to the

7 Treasury of the United States.

8 (f) The Act of July 31, 1950 (64 Stat. 382) is re9 pealed effective on the date, as determined by the Sec10 retary of Energy, that all Eklutna assets have been con11 veyed to the Eklunta Purchasers.

12 (g) Section 204 of the Flood Control Act of 1962 (76

13 Stat. 1193) is repealed effective on the date, as deter14 mined by the Secretary of Energy, that all Snettisham as15 sets have been conveyed to the State of Alaska.

16 (h) As of the later of the two dates determined in

17 subsections (f) and (g), section 302(a) of the Department

18 of Energy Organization Act (42 U.S.C. 7152(a)) is

19 amended—

20 (1) in paragraph (1)—

21 (A) by striking subparagraph (C); and

22 (B) by redesignating subparagraphs (D),

23 (E), and (F) as subparagraphs (C), (D), and

24 (E) respectively; and
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1 (2) in paragraph (2) by striking out ‘‘and the

2 Alaska Power Administration’’ and by inserting

3 ‘‘and’’ after ‘‘Southwestern Power Administration,’’.

4 (i) The Act of August 9, 1955, concerning water re5 sources investigation in Alaska (69 Stat. 618), is repealed.

6 (j) The sales of Eklutna and Snettisham under this

7 title are not considered disposal of Federal surplus prop8 erty under the Federal Property and Administrative Serv9 ices Act of 1949 (40 U.S.C. 484) or the Act of October

10 3, 1944, popularly referred to as the ‘‘Surplus Property

11 Act of 1944’’ (50 U.S.C. App. 1622).

12 (k) The sales authorized in this title shall occur not

13 later than 1 year after the date of enactment of legislation

14 defining ‘‘first use’’ of Snettisham for purposes of section

15 147(d) of the Internal Revenue Code of 1986, to be con16 sidered to occur pursuant to acquisition of the property

17 by or on behalf of the State of Alaska.

18 SEC. 104. DECLARATION CONCERNING OTHER HYDRO19 ELECTRIC PROJECTS AND THE POWER MAR20 KETING ADMINISTRATIONS.

21 Congress declares that—

22 (1) the circumstances that justify authorization

23 by Congress of the sale of hydroelectric projects

24 under section 102 are unique to those projects and

25 do not pertain to other hydroelectric projects or to
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1 the power marketing administrations in the 48 con2 tiguous States; and

3 (2) accordingly, the enactment of section 102

4 should not be understood as lending support to any

5 proposal to sell any other hydroelectric project or the

6 power marketing administrations.

7 TITLE II

8 SEC. 201. SHORT TITLE.

9 This title may be cited as ‘‘Trans-Alaska Pipeline

10 Amendment Act of 1995’’.

11 SEC. 202. TAPS ACT AMENDMENTS.

12 Section 203 of the Act entitled the ‘‘Trans-Alaska

13 Pipeline Authorization Act’’, as amended (43 U.S.C.

14 1652), is amended by inserting the following new sub15 section (f):

16 ‘‘(f) EXPORTS OF ALASKAN NORTH SLOPE OIL.—

17 ‘‘(1) Subject to paragraphs (2) through (6), of

18 this subsection and notwithstanding any other provi19 sion of law (including any regulation), any oil trans20 ported by pipeline over right-of-way granted pursu21 ant to this section may be exported after October

22 31, 1995 unless the President finds that exportation

23 of this oil is not in the national interest. In evaluat24 ing whether the proposed exportation is in the na25 tional interest, the President—
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1 ‘‘(A) shall determine whether the proposed

2 exportation would diminish the total quantity or

3 quality of petroleum available to the United

4 States;

5 ‘‘(B) shall conduct and complete an appro6 priate environmental review of the proposed ex7 portation, including consideration of appro8 priate measures to mitigate any potential ad9 verse effect on the environment, within four

10 months after the date of enactment of this sub11 section; and

12 ‘‘(C) shall consider, after consultation with

13 the Attorney General and Secretary of Com14 merce, whether anticompetitive activity by a

15 person exporting crude oil under authority of

16 this subsection is likely to cause sustained ma17 terial crude oil supply shortages or sustained

18 crude oil prices significantly above world mar19 ket levels for independent refiners that would

20 cause sustained material adverse employment

21 effects in the United States.

22 The President shall make his national interest deter23 mination within five months after the date of enact24 ment of this subsection or 30 days after completion

25 of the environmental review, whichever is earlier.
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1 The President may make his determination subject

2 to such terms and conditions (other than a volume

3 limitation) as are necessary or appropriate to ensure

4 that the exportation is consistent with the national

5 interest.

6 ‘‘(2) Except in the case of oil exported to a

7 country pursuant to a bilateral international oil sup8 ply agreement entered into by the United States

9 with the country before June 25, 1979, or to a coun10 try pursuant to the International Emergency Oil

11 Sharing Plan of the International Energy Agency,

12 any oil transported by pipeline over right-of-way

13 granted pursuant to this section, shall, when ex14 ported, be transported by a vessel documented under

15 the laws of the United States and owned by a citizen

16 of the United States (as determined in accordance

17 with section 2 of the Shipping Act, 1916 (46 U.S.C.

18 App. 802)).

19 ‘‘(3) Nothing in this subsection shall restrict

20 the authority of the President under the Constitu21 tion, the International Emergency Economic Powers

22 Act (50 U.S.C. 1701 et seq.), or the National Emer23 gencies Act (50 U.S.C. 1601 et seq.) to prohibit ex24 portation of the oil.
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1 ‘‘(4) The Secretary of Commerce shall issue any

2 rules necessary for implementation, including any li3 censing requirements and conditions, of the Presi4 dent’s national interest determination within 30 days

5 of the date of such determination by the President.

6 The Secretary of Commerce shall consult with the

7 Secretary of Energy in administering the provisions

8 of this subsection.

9 ‘‘(5) If the Secretary of Commerce finds that

10 anticompetitive activity by a person exporting crude

11 oil under authority of this subsection has caused

12 sustained material crude oil supply shortages or sus13 tained crude oil prices significantly above world mar14 ket levels and further finds that these supply short15 ages or price increases have caused sustained mate16 rial adverse employment effects in the United

17 States, the Secretary of Commerce may recommend

18 to the President who may take appropriate action

19 against such person, which may include modification

20 or revocation of the authorization to export crude

21 oil.

22 ‘‘(6) Administrative action with respect to an

23 authorization under this subsection is not subject to

24 sections 551 and 553 through 559 of title 5, United

25 States Code.’’.
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1 SEC. 203. ANNUAL REPORT.

2 Section 103(f) of the Energy Policy and Conservation

3 Act (42 U.S.C. 6212(f)) is amended by adding at the end

4 thereof the following:

5 ‘‘In the first quarter report for each new calendar

6 year, the President shall indicate whether independent re7 finers in Petroleum Administration for Defense District

8 V have been unable to secure adequate supplies of crude

9 oil as a result of exports of Alaskan North Slope crude

10 oil in the prior calendar year and shall make such rec11 ommendations to the Congress as may be appropriate.’’.

12 SEC. 204. GAO REPORT.

13 The Comptroller General of the United States shall

14 conduct a review of energy production in California and

15 Alaska and the effects of Alaskan North Slope crude oil

16 exports, if any, on consumers, independent refiners, and

17 shipbuilding and ship repair yards on the West Coast. The

18 Comptroller General shall commence this review four years

19 after the date of enactment of this Act and, within one

20 year after commencing the review, shall provide a report

21 to the Committee on Energy and Natural Resources in

22 the Senate and the Committee on Resources in the House

23 of Representatives. The report shall contain a statement

24 of the principal findings of the review and such rec25 ommendations for consideration by the Congress as may

26 be appropriate.
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1 SEC. 205. RETIREMENT OF CERTAIN COSTS INCURRED FOR

2 THE CONSTRUCTION OF NON-FEDERAL PUB3 LICLY OWNED SHIPYARDS.

4 (a) IN GENERAL.—The Secretary of Energy shall—

5 (1) deposit proceeds of sales out of the Naval

6 Petroleum Reserve in a special account in amounts

7 sufficient to make payments under subsections (b)

8 and (c); and

9 (2) out of the account described in paragraph

10 (1), provide, in accordance with subsections (b) and

11 (c), financial assistance to a port authority that—

12 (A) manages a non-Federal publicly owned

13 shipyard on the United States west coast that

14 is capable of handling very large crude carrier

15 tankers; and

16 (B) has obligations outstanding as of May

17 15, 1995, that were dated as of June 1, 1977,

18 and are related to the acquisition of non-Fed19 eral publicly owned dry docks that were origi20 nally financed through public bonds.

21 (b) ACQUISITION AND REFURBISHMENT OF INFRA22 STRUCTURE.—The Secretary shall provide, for acquisition

23 of infrastructure and refurbishment of existing infrastruc24 ture, $10,000,000 in fiscal year 1996.

25 (c) RETIREMENT OF OBLIGATIONS.—The Secretary

26 shall provide, for retirement of obligations outstanding as
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1 of May 15, 1995, that were dated as of June 1, 1977,

2 and are related to the acquisition of non-Federal publicly

3 owned dry docks that were originally financed through

4 public bonds—

5 (1) $6,000,000 in fiscal year 1996;

6 (2) $13,000,000 in fiscal year 1997;

7 (3) $10,000,000 in fiscal year 1998;

8 (4) $8,000,000 in fiscal year 1999;

9 (5) $6,000,000 in fiscal year 2000;

10 (6) $3,500,000 in fiscal year 2001; and

11 (7) $3,500,000 in fiscal year 2002.

12 SEC. 206. OIL POLLUTION ACT OF 1990.

13 Title VI of the Oil Pollution Act of 1990 (Public Law

14 101–380; 104 Stat. 554) is amended by adding at the end

15 thereof the following new section:

16 ‘‘SEC. 6005. TOWING VESSEL REQUIRED.

17 ‘‘(a) IN GENERAL.—In addition to the requirements

18 for response plans for vessels established in section 311(j)

19 of the Federal Water Pollution Control Act, as amended

20 by this Act, a response plan for a vessel operating within

21 the boundaries of the Olympic Coast National Marine

22 Sanctuary or the Strait of Juan de Fuca shall provide for

23 a towing vessel to be able to provide assistance to such

24 vessel within six hours of a request for assistance. The

25 towing vessel shall be capable of—
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1 ‘‘(1) towing the vessel to which the response

2 plan applies;

3 ‘‘(2) initial firefighting and oilspill response ef4 forts; and

5 ‘‘(3) coordinating with other vessels and respon6 sible authorities to coordinate oilspill response, fire7 fighting, and marine salvage efforts.

8 ‘‘(b) EFFECTIVE DATE.—The Secretary of Transpor9 tation shall promulgate a final rule to implement this sec10 tion by September 1, 1995.’’.

11 SEC. 207. EFFECTIVE DATE.

12 This title and the amendments made by it shall take

13 effect on the date of enactment.

14 TITLE III

15 SEC. 301. SHORT TITLE.

16 This Title may be referred to as the ‘‘Outer Continen17 tal Shelf Deep Water Royalty Relief Act’’.

18 SEC. 302. AMENDMENTS TO THE OUTER CONTINENTAL

19 SHELF LANDS ACT.

20 Section 8(a) of the Outer Continental Shelf Lands

21 Act (43 U.S.C. 1337(a)(3)), is amended by striking para22 graph (3) in its entirety and inserting the following:

23 ‘‘(3)(A) The Secretary may, in order to—
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1 ‘‘(i) promote development or increased pro2 duction on producing or non-producing leases;

3 or

4 ‘‘(ii) encourage production of marginal re5 sources on producing or non-producing leases;

6 through primary, secondary, or tertiary recov7 ery means, reduce or eliminate any royalty or

8 net profit share set forth in the lease(s). With

9 the lessee’s consent, the Secretary may make

10 other modifications to the royalty or net profit

11 share terms of the lease in order to achieve

12 these purposes.

13 ‘‘(B)(i) Notwithstanding the provisions of this

14 Act other than this subparagraph, with respect to

15 any lease or unit in existence on the date of enact16 ment of the Outer Continental Shelf Deep Water

17 Royalty Relief Act meeting the requirements of this

18 subparagraph, no royalty payments shall be due on

19 new production, as defined in clause (iv) of this sub20 paragraph, from any lease or unit located in water

21 depths of 200 meters or greater in the Western and

22 Central Planning Areas of the Gulf of Mexico, in23 cluding that portion of the Eastern Planning Area

24 of the Gulf of Mexico encompassing whole lease

25 blocks lying west of 87 degrees, 30 minutes West
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1 longitude, until such volume of production as deter2 mined pursuant to clause (ii) has been produced by

3 the lessee.

4 ‘‘(ii) Upon submission of a complete application

5 by the lessee, the Secretary shall determine within

6 180 days of such application whether new produc7 tion from such lease or unit would be economic in

8 the absence of the relief from the requirement to pay

9 royalties provided for by clause (i) of this subpara10 graph. In making such determination, the Secretary

11 shall consider the increased technological and finan12 cial risk of deep water development and all costs as13 sociated with exploring, developing, and producing

14 from the lease. The lessee shall provide information

15 required for a complete application to the Secretary

16 prior to such determination. The Secretary shall

17 clearly define the information required for a com18 plete application under this section. Such application

19 may be made on the basis of an individual lease or

20 unit. If the Secretary determines that such new pro21 duction would be economic in the absence of the re22 lief from the requirement to pay royalties provided

23 for by clause (i) of this subparagraph, the provisions

24 of clause (i) shall not apply to such production. If

25 the Secretary determines that such new production
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1 would not be economic in the absence of the relief

2 from the requirement to pay royalties provided for

3 by clause (i), the Secretary must determine the vol4 ume of production from the lease or unit on which

5 no royalties would be due in order to make such new

6 production economically viable; except that for new

7 production as defined in clause (iv)(aa), in no case

8 will that volume be less than 17.5 million barrels of

9 oil equivalent in water depths of 200 to 400 meters,

10 52.5 million barrels of oil equivalent in 400–800 me11 ters of water, and 87.5 million barrels of oil equiva12 lent in water depths greater than 800 meters. Rede13 termination of the applicability of clause (i) shall be

14 undertaken by the Secretary when requested by the

15 lessee prior to the commencement of the new pro16 duction and upon significant change in the factors

17 upon which the original determination was made.

18 The Secretary shall make such redetermination with19 in 120 days of submission of a complete application.

20 The Secretary may extend the time period for mak21 ing any determination or redetermination under this

22 clause for 30 days, or longer if agreed to by the ap23 plicant, if circumstances so warrant. The lessee shall

24 be notified in writing of any determination or rede25 termination and the reasons for and assumptions
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1 used for such determination. Any determination or

2 redetermination under this clause shall be a final

3 agency action. The Secretary’s determination or re4 determination shall be judicially reviewable under

5 section 10(a) of the Administrative Procedures Act

6 (5 U.S.C. 702), only for actions filed within 30 days

7 of the Secretary’s determination or redetermination.

8 ‘‘(iii) In the event that the Secretary fails to

9 make the determination or redetermination called

10 for in clause (ii) upon application by the lessee with11 in the time period, together with any extension

12 thereof, provided for by clause (ii), no royalty pay13 ments shall be due on new production as follows:

14 ‘‘(I) For new production, as defined in

15 clause (iv)(I) of this subparagraph, no royalty

16 shall be due on such production according to

17 the schedule of minimum volumes specified in

18 clause (ii) of this subparagraph.

19 ‘‘(II) For new production, as defined in

20 clause (iv)(II) of this subparagraph, no royalty

21 shall be due on such production for one year

22 following the start of such production.

23 ‘‘(iv) For purposes of this subparagraph, the

24 term ‘new production’ is—
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1 ‘‘(I) any production from a lease from

2 which no royalties are due on production, other

3 than test production, prior to the date of enact4 ment of the Outer Continental Shelf Deep

5 Water Royalty Relief Act; or

6 ‘‘(II) any production resulting from lease

7 development activities pursuant to a Develop8 ment Operations Coordination Document, or

9 supplement thereto that would expand produc10 tion significantly beyond the level anticipated in

11 the Development Operations Coordination Doc12 ument, approved by the Secretary after the date

13 of enactment of the Outer Continental Shelf

14 Deep Water Royalty Relief Act.

15 ‘‘(v) During the production of volumes deter16 mined pursuant to clauses (ii) or (iii) of this sub17 paragraph, in any year during which the arithmetic

18 average of the closing prices on the New York Mer19 cantile Exchange for light sweet crude oil exceeds

20 $28.00 per barrel, any production of oil will be sub21 ject to royalties at the lease stipulated royalty rate.

22 Any production subject to this clause shall be count23 ed toward the production volume determined pursu24 ant to clause (ii) or (iii). Estimated royalty pay25 ments will be made if such average of the closing
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1 prices for the previous year exceeds $28.00. After

2 the end of the calendar year, when the new average

3 price can be calculated, lessees will pay any royalties

4 due, with interest but without penalty, or can apply

5 for a refund, with interest, of any overpayment.

6 ‘‘(vi) During the production of volumes deter7 mined pursuant to clause (ii) or (iii) of this subpara8 graph, in any year during which the arithmetic aver9 age of the closing prices on the New York Mer10 cantile Exchange for natural gas exceeds $3.50 per

11 million British thermal units, any production of nat12 ural gas will be subject to royalties at the lease stip13 ulated royalty rate. Any production subject to this

14 clause shall be counted toward the production vol15 ume determined pursuant to clauses (ii) or (iii). Es16 timated royalty payments will be made if such aver17 age of the closing prices for the previous year ex18 ceeds $3.50. After the end of the calendar year,

19 when the new average price can be calculated, les20 sees will pay any royalties due, with interest but

21 without penalty, or can apply for a refund, with in22 terest, of any overpayment.

23 ‘‘(vii) The prices referred to in clauses (v) and

24 (vi) of this subparagraph shall be changed during

25 any calendar year after 1994 by the percentage, if
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1 any, by which the implicit price deflator for the

2 gross domestic product changed during the preced3 ing calendar year.’’.

4 SEC. 303. NEW LEASES.

5 Section 8(a)(1) of the Outer Continental Shelf Lands

6 Act, as amended (43 U.S.C. 1337(a)(1)) is amended as

7 follows:

8 (1) Redesignate section 8(a)(1)(H) as section

9 8(a)(1)(I); and

10 (2) Add a new section 8(a)(1)(H) as follows:

11 ‘‘(H) cash bonus bid with royalty at no less

than 12 and 1 12 ⁄2 per centum fixed by the Sec13 retary in amount or value of production saved,

14 removed, or sold, and with suspension of royal15 ties for a period, volume, or value of production

16 determined by the Secretary. Such suspensions

17 may vary based on the price of production from

18 the lease.’’.

19 SEC. 304. LEASE SALES.

20 For all tracts located in water depths of 200 meters

21 or greater in the Western and Central Planning Area of

22 the Gulf of Mexico, including that portion of the Eastern

23 Planning Area of the Gulf of Mexico encompassing whole

24 lease blocks lying west of 87 degrees, 30 minutes West

25 longitude, any lease sale within five years of the date of
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1 enactment of this title, shall use the bidding system au2 thorized in section 8(a)(1)(H) of the Outer Continental

3 Shelf Lands Act, as amended by this title, except that the

4 suspension of royalties shall be set at a volume of not less

5 than the following:

6 (1) 17.5 million barrels of oil equivalent for

7 leases in water depths of 200 to 400 meters;

8 (2) 52.5 million barrels of oil equivalent for

9 leases in 400 to 800 meters of water; and

10 (3) 87.5 million barrels of oil equivalent for

11 leases in water depths greater than 800 meters.

12 SEC. 305. REGULATIONS.

13 The Secretary shall promulgate such rules and regu14 lations as are necessary to implement the provisions of this

15 title within 180 days after the enactment of this Act.

Passed the Senate May 16 (legislative day, May 15),

1995.

Attest:

Secretary.
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104TH CONGRESS

1ST SESSION S. 395

AN ACT

To authorize and direct the Secretary of Energy to

oil, and for other purposes.thorize the export of Alaska North Slope crudesell the Alaska Power Administration, and to au-