II 

Calendar No. 464 

109TH CONGRESS 

2D SESSION H. R. 5429 

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2006 

Received 

MAY 26, 2006 

Read the first time 

JUNE 5, 2006 

Read the second time and placed on the calendar 

AN ACT 

To direct the Secretary of the Interior to establish and 

implement 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 of Alaska, 

and for other purposes. 


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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. 

4 This Act may be cited as the ‘‘American-Made En5 ergy and Good Jobs Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

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

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

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

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

12 as otherwise provided, means the Secretary of the 

13 Interior or the Secretary’s designee. 

14 SEC. 3. LEASING PROGRAM FOR LANDS WITHIN THE 

15 COASTAL PLAIN. 

16 (a) IN GENERAL.—The Secretary shall take such ac17 tions as are necessary— 

18 (1) to establish and implement, in accordance 

19 with this Act and acting through the Director of the 

20 Bureau of Land Management in consultation with 

21 the Director of the United States Fish and Wildlife 

22 Service, a competitive oil and gas leasing program 

23 that will result in an environmentally sound program 

24 for the exploration, development, and production of 

25 the oil and gas resources of the Coastal Plain; and 


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1 (2) to administer the provisions of this Act 

2 through regulations, lease terms, conditions, restric3 tions, prohibitions, stipulations, and other provisions 

4 that ensure the oil and gas exploration, development, 

5 and production activities on the Coastal Plain will 

6 result in no significant adverse effect on fish and 

7 wildlife, their habitat, subsistence resources, and the 

8 environment, including, in furtherance of this goal, 

9 by requiring the application of the best commercially 

10 available technology for oil and gas exploration, de11 velopment, and production to all exploration, devel12 opment, and production operations under this Act in 

13 a manner that ensures the receipt of fair market 

14 value by the public for the mineral resources to be 

15 leased. 

16 (b) REPEAL.— 

17 (1) REPEAL.—Section 1003 of the Alaska Na18 tional Interest Lands Conservation Act of 1980 (16 

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

20 (2) CONFORMING AMENDMENT.—The table of 

21 contents in section 1 of such Act is amended by 

22 striking the item relating to section 1003. 

23 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER24 TAIN OTHER LAWS.— 


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1 (1) COMPATIBILITY.—For purposes of the Na2 tional Wildlife Refuge System Administration Act of 

3 1966 (16 U.S.C. 668dd et seq.), the oil and gas 

4 leasing program and activities authorized by this 

5 section in the Coastal Plain are deemed to be com6 patible with the purposes for which the Arctic Na7 tional Wildlife Refuge was established, and no fur8 ther findings or decisions are required to implement 

9 this determination. 

10 (2) ADEQUACY OF THE DEPARTMENT OF THE

11 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

12 STATEMENT.—The ‘‘Final Legislative Environ13 mental Impact Statement’’ (April 1987) on the 

14 Coastal Plain prepared pursuant to section 1002 of 

15 the Alaska National Interest Lands Conservation 

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

17 of the National Environmental Policy Act of 1969 

18 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re19 quirements under the National Environmental Policy 

20 Act of 1969 that apply with respect to prelease ac21 tivities, including actions authorized to be taken by 

22 the Secretary to develop and promulgate the regula23 tions for the establishment of a leasing program au24 thorized by this Act before the conduct of the first 

25 lease sale. 


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1 (3) COMPLIANCE WITH NEPA FOR OTHER AC2 TIONS.—Before conducting the first lease sale under 

3 this Act, the Secretary shall prepare an environ4 mental impact statement under the National Envi5 ronmental Policy Act of 1969 with respect to the ac6 tions authorized by this Act that are not referred to 

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

8 the Secretary is not required to identify nonleasing 

9 alternative courses of action or to analyze the envi10 ronmental effects of such courses of action. The Sec11 retary shall only identify a preferred action for such 

12 leasing and a single leasing alternative, and analyze 

13 the environmental effects and potential mitigation 

14 measures for those two alternatives. The identifica15 tion of the preferred action and related analysis for 

16 the first lease sale under this Act shall be completed 

17 within 18 months after the date of enactment of this 

18 Act. The Secretary shall only consider public com19 ments that specifically address the Secretary’s pre20 ferred action and that are filed within 20 days after 

21 publication of an environmental analysis. Notwith22 standing any other law, compliance with this para23 graph is deemed to satisfy all requirements for the 

24 analysis and consideration of the environmental ef25 fects of proposed leasing under this Act. 


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1 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR2 ITY.—Nothing in this Act shall be considered to expand 

3 or limit State and local regulatory authority. 

4 (e) SPECIAL AREAS.— 

5 (1) IN GENERAL.—The Secretary, after con6 sultation with the State of Alaska, the city of 

7 Kaktovik, and the North Slope Borough, may des8 ignate up to a total of 45,000 acres of the Coastal 

9 Plain as a Special Area if the Secretary determines 

10 that the Special Area is of such unique character 

11 and interest so as to require special management 

12 and regulatory protection. The Secretary shall des13 ignate as such a Special Area the Sadlerochit Spring 

14 area, comprising approximately 4,000 acres. 

15 (2) MANAGEMENT.—Each such Special Area 

16 shall be managed so as to protect and preserve the 

17 area’s unique and diverse character including its 

18 fish, wildlife, and subsistence resource values. 

19 (3) EXCLUSION FROM LEASING OR SURFACE

20 OCCUPANCY.—The Secretary may exclude any Spe21 cial Area from leasing. If the Secretary leases a Spe22 cial Area, or any part thereof, for purposes of oil 

23 and gas exploration, development, production, and 

24 related activities, there shall be no surface occu25 pancy of the lands comprising the Special Area. 


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1 (4) DIRECTIONAL DRILLING.—Notwithstanding 

2 the other provisions of this subsection, the Secretary 

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

4 terms that permit the use of horizontal drilling tech5 nology from sites on leases located outside the Spe6 cial Area. 

7 (f) LIMITATION ON CLOSED AREAS.—The Sec8 retary’s sole authority to close lands within the Coastal 

9 Plain to oil and gas leasing and to exploration, develop10 ment, and production is that set forth in this Act. 

11 (g) REGULATIONS.— 

12 (1) IN GENERAL.—The Secretary shall pre13 scribe such regulations as may be necessary to carry 

14 out this Act, including rules and regulations relating 

15 to protection of the fish and wildlife, their habitat, 

16 subsistence resources, and environment of the Coast17 al Plain, by no later than 15 months after the date 

18 of enactment of this Act. 

19 (2) REVISION OF REGULATIONS.—The Sec20 retary shall periodically review and, if appropriate, 

21 revise the rules and regulations issued under sub22 section (a) to reflect any significant biological, envi23 ronmental, or engineering data that come to the Sec24 retary’s attention. 


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1 SEC. 4. LEASE SALES. 

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

3 this Act to any person qualified to obtain a lease for depos4 its of oil and gas under the Mineral Leasing Act (30 

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

6 (b) PROCEDURES.—The Secretary shall, by regula7 tion, establish procedures for— 

8 (1) receipt and consideration of sealed nomina9 tions for any area in the Coastal Plain for inclusion 

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

11 a lease sale; 

12 (2) the holding of lease sales after such nomina13 tion process; and 

14 (3) public notice of and comment on designa15 tion of areas to be included in, or excluded from, a 

16 lease sale. 

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

18 this Act shall be by sealed competitive cash bonus bids. 

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

20 lease sale under this Act, the Secretary shall offer for lease 

21 those tracts the Secretary considers to have the greatest 

22 potential for the discovery of hydrocarbons, taking into 

23 consideration nominations received pursuant to subsection 

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

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

26 shall— 


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1 (1) conduct the first lease sale under this Act 

2 within 22 months after the date of the enactment of 

3 this Act; and 

4 (2) conduct additional sales so long as sufficient 

5 interest in development exists to warrant, in the Sec6 retary’s judgment, the conduct of such sales. 

7 SEC. 5. GRANT OF LEASES BY THE SECRETARY. 

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

9 highest responsible qualified bidder in a lease sale con10 ducted pursuant to section 4 any lands to be leased on 

11 the Coastal Plain upon payment by the lessee of such 

12 bonus as may be accepted by the Secretary. 

13 (b) SUBSEQUENT TRANSFERS.—No lease issued 

14 under this Act may be sold, exchanged, assigned, sublet, 

15 or otherwise transferred except with the approval of the 

16 Secretary. Prior to any such approval the Secretary shall 

17 consult with, and give due consideration to the views of, 

18 the Attorney General. 

19 SEC. 6. LEASE TERMS AND CONDITIONS. 

20 (a) IN GENERAL.—An oil or gas lease issued pursu21 ant to this Act shall— 

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

less than 121 23 ⁄2 percent in amount or value of the 

24 production removed or sold from the lease, as deterVerDate Aug 31 2005 05:33 Jun 06, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5429.PCS H5429

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1 mined by the Secretary under the regulations appli2 cable to other Federal oil and gas leases; 

3 (2) provide that the Secretary may close, on a 

4 seasonal basis, portions of the Coastal Plain to ex5 ploratory drilling activities as necessary to protect 

6 caribou calving areas and other species of fish and 

7 wildlife; 

8 (3) require that the lessee of lands within the 

9 Coastal Plain shall be fully responsible and liable for 

10 the reclamation of lands within the Coastal Plain 

11 and any other Federal lands that are adversely af12 fected in connection with exploration, development, 

13 production, or transportation activities conducted 

14 under the lease and within the Coastal Plain by the 

15 lessee or by any of the subcontractors or agents of 

16 the lessee; 

17 (4) provide that the lessee may not delegate or 

18 convey, by contract or otherwise, the reclamation re19 sponsibility and liability to another person without 

20 the express written approval of the Secretary; 

21 (5) provide that the standard of reclamation for 

22 lands required to be reclaimed under this Act shall 

23 be, as nearly as practicable, a condition capable of 

24 supporting the uses which the lands were capable of 

25 supporting prior to any exploration, development, or 


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1 production activities, or upon application by the les2 see, to a higher or better use as approved by the 

3 Secretary; 

4 (6) contain terms and conditions relating to 

5 protection of fish and wildlife, their habitat, subsist6 ence resources, and the environment as required 

7 pursuant to section 3(a)(2); 

8 (7) provide that the lessee, its agents, and its 

9 contractors use best efforts to provide a fair share, 

10 as determined by the level of obligation previously 

11 agreed to in the 1974 agreement implementing sec12 tion 29 of the Federal Agreement and Grant of 

13 Right of Way for the Operation of the Trans-Alaska 

14 Pipeline, of employment and contracting for Alaska 

15 Natives and Alaska Native Corporations from 

16 throughout the State; 

17 (8) prohibit the export of oil produced under 

18 the lease; and 

19 (9) contain such other provisions as the Sec20 retary determines necessary to ensure compliance 

21 with the provisions of this Act and the regulations 

22 issued under this Act. 

23 (b) PROJECT LABOR AGREEMENTS.—The Secretary, 

24 as a term and condition of each lease under this Act and 

25 in recognizing the Government’s proprietary interest in 


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1 labor stability and in the ability of construction labor and 

2 management to meet the particular needs and conditions 

3 of projects to be developed under the leases issued pursu4 ant to this Act and the special concerns of the parties to 

5 such leases, shall require that the lessee and its agents 

6 and contractors negotiate to obtain a project labor agree7 ment for the employment of laborers and mechanics on 

8 production, maintenance, and construction under the 

9 lease. 

10 SEC. 7. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

11 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

12 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

13 The Secretary shall, consistent with the requirements of 

14 section 3, administer the provisions of this Act through 

15 regulations, lease terms, conditions, restrictions, prohibi16 tions, stipulations, and other provisions that— 

17 (1) ensure the oil and gas exploration, develop18 ment, and production activities on the Coastal Plain 

19 will result in no significant adverse effect on fish 

20 and wildlife, their habitat, and the environment; 

21 (2) require the application of the best commer22 cially available technology for oil and gas explo23 ration, development, and production on all new ex24 ploration, development, and production operations; 

25 and 


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1 (3) ensure that the maximum amount of sur2 face acreage covered by production and support fa3 cilities, including airstrips and any areas covered by 

4 gravel berms or piers for support of pipelines, does 

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

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

7 The Secretary shall also require, with respect to any pro8 posed drilling and related activities, that— 

9 (1) a site-specific analysis be made of the prob10 able effects, if any, that the drilling or related activi11 ties will have on fish and wildlife, their habitat, sub12 sistence resources, and the environment; 

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

14 and mitigate (in that order and to the extent prac15 ticable) any significant adverse effect identified 

16 under paragraph (1); and 

17 (3) the development of the plan shall occur 

18 after consultation with the agency or agencies hav19 ing jurisdiction over matters mitigated by the plan. 

20 (c) REGULATIONS TO PROTECT COASTAL PLAIN

21 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

22 AND THE ENVIRONMENT.—Before implementing the leas23 ing program authorized by this Act, the Secretary shall 

24 prepare and promulgate regulations, lease terms, condi25 tions, restrictions, prohibitions, stipulations, and other 


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1 measures designed to ensure that the activities undertaken 

2 on the Coastal Plain under this Act are conducted in a 

3 manner consistent with the purposes and environmental 

4 requirements of this Act. 

5 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI6 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

7 proposed regulations, lease terms, conditions, restrictions, 

8 prohibitions, and stipulations for the leasing program 

9 under this Act shall require compliance with all applicable 

10 provisions of Federal and State environmental law, and 

11 shall also require the following: 

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

13 and environmental mitigation measures set forth in 

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

15 ‘‘Final Legislative Environmental Impact State16 ment’’ (April 1987) on the Coastal Plain. 

17 (2) Seasonal limitations on exploration, develop18 ment, and related activities, where necessary, to 

19 avoid significant adverse effects during periods of 

20 concentrated fish and wildlife breeding, denning, 

21 nesting, spawning, and migration. 

22 (3) That exploration activities, except for sur23 face geological studies, be limited to the period be24 tween approximately November 1 and May 1 each 

25 year and that exploration activities shall be supVerDate Aug 31 2005 05:33 Jun 06, 2006 Jkt 049200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H5429.PCS H5429

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1 ported, if necessary, by ice roads, winter trails with 

2 adequate snow cover, ice pads, ice airstrips, and air 

3 transport methods, except that such exploration ac4 tivities may occur at other times if the Secretary 

5 finds that such exploration will have no significant 

6 adverse effect on the fish and wildlife, their habitat, 

7 and the environment of the Coastal Plain. 

8 (4) Design safety and construction standards 

9 for all pipelines and any access and service roads, 

10 that— 

11 (A) minimize, to the maximum extent pos12 sible, adverse effects upon the passage of mi13 gratory species such as caribou; and 

14 (B) minimize adverse effects upon the flow 

15 of surface water by requiring the use of cul16 verts, bridges, and other structural devices. 

17 (5) Prohibitions on general public access and 

18 use on all pipeline access and service roads. 

19 (6) Stringent reclamation and rehabilitation re20 quirements, consistent with the standards set forth 

21 in this Act, requiring the removal from the Coastal 

22 Plain of all oil and gas development and production 

23 facilities, structures, and equipment upon completion 

24 of oil and gas production operations, except that the 

25 Secretary may exempt from the requirements of this 


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1 paragraph those facilities, structures, or equipment 

2 that the Secretary determines would assist in the 

3 management of the Arctic National Wildlife Refuge 

4 and that are donated to the United States for that 

5 purpose. 

6 (7) Appropriate prohibitions or restrictions on 

7 access by all modes of transportation. 

8 (8) Appropriate prohibitions or restrictions on 

9 sand and gravel extraction. 

10 (9) Consolidation of facility siting. 

11 (10) Appropriate prohibitions or restrictions on 

12 use of explosives. 

13 (11) Avoidance, to the extent practicable, of 

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

15 natural surface drainage patterns, wetlands, and ri16 parian habitats; and the regulation of methods or 

17 techniques for developing or transporting adequate 

18 supplies of water for exploratory drilling. 

19 (12) Avoidance or minimization of air traffic-re20 lated disturbance to fish and wildlife. 

21 (13) Treatment and disposal of hazardous and 

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

23 muds and cuttings, and domestic wastewater, includ24 ing an annual waste management report, a haz25 ardous materials tracking system, and a prohibition 


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1 on chlorinated solvents, in accordance with applica2 ble Federal and State environmental law. 

3 (14) Fuel storage and oil spill contingency plan4 ning. 

5 (15) Research, monitoring, and reporting re6 quirements. 

7 (16) Field crew environmental briefings. 

8 (17) Avoidance of significant adverse effects 

9 upon subsistence hunting, fishing, and trapping by 

10 subsistence users. 

11 (18) Compliance with applicable air and water 

12 quality standards. 

13 (19) Appropriate seasonal and safety zone des14 ignations around well sites, within which subsistence 

15 hunting and trapping shall be limited. 

16 (20) Reasonable stipulations for protection of 

17 cultural and archeological resources. 

18 (21) All other protective environmental stipula19 tions, restrictions, terms, and conditions deemed 

20 necessary by the Secretary. 

21 (e) CONSIDERATIONS.—In preparing and promul22 gating regulations, lease terms, conditions, restrictions, 

23 prohibitions, and stipulations under this section, the Sec24 retary shall consider the following: 


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1 (1) The stipulations and conditions that govern 

2 the National Petroleum Reserve-Alaska leasing pro3 gram, as set forth in the 1999 Northeast National 

4 Petroleum Reserve-Alaska Final Integrated Activity 

5 Plan/Environmental Impact Statement. 

6 (2) The environmental protection standards 

7 that governed the initial Coastal Plain seismic explo8 ration program under parts 37.31 to 37.33 of title 

9 50, Code of Federal Regulations. 

10 (3) The land use stipulations for exploratory 

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

12 forth in Appendix 2 of the August 9, 1983, agree13 ment between Arctic Slope Regional Corporation and 

14 the United States. 

15 (f) FACILITY CONSOLIDATION PLANNING.— 

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

17 providing for public notice and comment, prepare 

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

19 direct the siting and construction of facilities for the 

20 exploration, development, production, and transpor21 tation of Coastal Plain oil and gas resources. 

22 (2) OBJECTIVES.—The plan shall have the fol23 lowing objectives: 

24 (A) Avoiding unnecessary duplication of fa25 cilities and activities. 


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1 (B) Encouraging consolidation of common 

2 facilities and activities. 

3 (C) Locating or confining facilities and ac4 tivities to areas that will minimize impact on 

5 fish and wildlife, their habitat, and the environ6 ment. 

7 (D) Utilizing existing facilities wherever 

8 practicable. 

9 (E) Enhancing compatibility between wild10 life values and development activities. 

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

12 shall— 

13 (1) manage public lands in the Coastal Plain 

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

15 the Alaska National Interest Lands Conservation 

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

17 (2) ensure that local residents shall have rea18 sonable access to public lands in the Coastal Plain 

19 for traditional uses. 

20 SEC. 8. EXPEDITED JUDICIAL REVIEW. 

21 (a) FILING OF COMPLAINT.— 

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

23 complaint seeking judicial review of any provision of 

24 this Act or any action of the Secretary under this 

25 Act shall be filed— 


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1 (A) except as provided in subparagraph 

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

3 date of the action being challenged; or 

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

5 on grounds arising after such period, within 90 

6 days after the complainant knew or reasonably 

7 should have known of the grounds for the com8 plaint. 

9 (2) VENUE.—Any complaint seeking judicial re10 view of any provision of this Act or any action of the 

11 Secretary under this Act may be filed only in the 

12 United States Court of Appeals for the District of 

13 Columbia. 

14 (3) LIMITATION ON SCOPE OF CERTAIN RE15 VIEW.—Judicial review of a Secretarial decision to 

16 conduct a lease sale under this Act, including the en17 vironmental analysis thereof, shall be limited to 

18 whether the Secretary has complied with the terms 

19 of this Act and shall be based upon the administra20 tive record of that decision. The Secretary’s identi21 fication of a preferred course of action to enable 

22 leasing to proceed and the Secretary’s analysis of 

23 environmental effects under this Act shall be pre24 sumed to be correct unless shown otherwise by clear 

25 and convincing evidence to the contrary. 


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

2 Secretary with respect to which review could have been 

3 obtained under this section shall not be subject to judicial 

4 review in any civil or criminal proceeding for enforcement. 

5 SEC. 9. FEDERAL AND STATE DISTRIBUTION OF REVENUES. 

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, of the amount of adjusted bonus, rental, and 

8 royalty revenues from Federal oil and gas leasing and op9 erations authorized under this Act— 

10 (1) 50 percent shall be paid to the State of 

11 Alaska; and 

12 (2) except as provided in section 12(d), the bal13 ance shall be deposited into the Treasury as mis14 cellaneous receipts. 

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

16 of Alaska under this section shall be made semiannually. 

17 SEC. 10. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 

18 (a) IN GENERAL.—The Secretary shall issue rights19 of-way and easements across the Coastal Plain for the 

20 transportation of oil and gas— 

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

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

23 185), without regard to title XI of the Alaska Na24 tional Interest Lands Conservation Act (30 U.S.C. 

25 3161 et seq.); and 


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1 (2) under title XI of the Alaska National Inter2 est Lands Conservation Act (30 U.S.C. 3161 et 

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

4 1111 of that Act (16 U.S.C. 3170 and 3171). 

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

6 include in any right-of-way or easement issued under sub7 section (a) such terms and conditions as may be necessary 

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

9 in a significant adverse effect on the fish and wildlife, sub10 sistence resources, their habitat, and the environment of 

11 the Coastal Plain, including requirements that facilities be 

12 sited or designed so as to avoid unnecessary duplication 

13 of roads and pipelines. 

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

15 regulations under section 3(g) provisions granting rights16 of-way and easements described in subsection (a) of this 

17 section. 

18 SEC. 11. CONVEYANCE. 

19 In order to maximize Federal revenues by removing 

20 clouds on title to lands and clarifying land ownership pat21 terns within the Coastal Plain, the Secretary, notwith22 standing the provisions of section 1302(h)(2) of the Alas23 ka National Interest Lands Conservation Act (16 U.S.C. 

24 3192(h)(2)), shall convey— 


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1 (1) to the Kaktovik Inupiat Corporation the 

2 surface estate of the lands described in paragraph 1 

3 of Public Land Order 6959, to the extent necessary 

4 to fulfill the Corporation’s entitlement under sec5 tions 12 and 14 of the Alaska Native Claims Settle6 ment Act (43 U.S.C. 1611 and 1613) in accordance 

7 with the terms and conditions of the Agreement be8 tween the Department of the Interior, the United 

9 States Fish and Wildlife Service, the Bureau of 

10 Land Management, and the Kaktovik Inupiat Cor11 poration effective January 22, 1993; and 

12 (2) to the Arctic Slope Regional Corporation 

13 the remaining subsurface estate to which it is enti14 tled pursuant to the August 9, 1983, agreement be15 tween the Arctic Slope Regional Corporation and the 

16 United States of America. 

17 SEC. 12. LOCAL GOVERNMENT IMPACT AID AND COMMU18 NITY SERVICE ASSISTANCE. 

19 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

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

21 amounts available from the Coastal Plain Local Gov22 ernment Impact Aid Assistance Fund established by 

23 subsection (d) to provide timely financial assistance 

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

25 that are directly impacted by the exploration for or 


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1 production of oil and gas on the Coastal Plain under 

2 this Act. 

3 (2) ELIGIBLE ENTITIES.—The North Slope 

4 Borough, the City of Kaktovik, and any other bor5 ough, municipal subdivision, village, or other com6 munity in the State of Alaska that is directly im7 pacted by exploration for, or the production of, oil 

8 or gas on the Coastal Plain under this Act, as deter9 mined by the Secretary, shall be eligible for financial 

10 assistance under this section. 

11 (b) USE OF ASSISTANCE.—Financial assistance 

12 under this section may be used only for— 

13 (1) planning for mitigation of the potential ef14 fects of oil and gas exploration and development on 

15 environmental, social, cultural, recreational, and sub16 sistence values; 

17 (2) implementing mitigation plans and main18 taining mitigation projects; 

19 (3) developing, carrying out, and maintaining 

20 projects and programs that provide new or expanded 

21 public facilities and services to address needs and 

22 problems associated with such effects, including fire23 fighting, police, water, waste treatment, medivac, 

24 and medical services; and 


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1 (4) establishment of a coordination office, by 

2 the north slope borough, in the city of kaktovik, 

3 which shall— 

4 (A) coordinate with and advise developers 

5 on local conditions, impact, and history of the 

6 areas utilized for development; and 

7 (B) provide to the Committee on Resources 

8 of the House of Representatives and the Com9 mittee on Energy and Natural Resources of the 

10 Senate an annual report on the status of co11 ordination between developers and the commu12 nities affected by development. 

13 (c) APPLICATION.— 

14 (1) IN GENERAL.—Any community that is eligi15 ble for assistance under this section may submit an 

16 application for such assistance to the Secretary, in 

17 such form and under such procedures as the Sec18 retary may prescribe by regulation. 

19 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

20 community located in the North Slope Borough may 

21 apply for assistance under this section either directly 

22 to the Secretary or through the North Slope Bor23 ough 

24 (3) APPLICATION ASSISTANCE.—The Secretary 

25 shall work closely with and assist the North Slope 


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26 

HR 5429 PCS 

1 Borough and other communities eligible for assist2 ance under this section in developing and submitting 

3 applications for assistance under this section. 

4 (d) ESTABLISHMENT OF FUND.— 

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

6 Treasury the Coastal Plain Local Government Im7 pact Aid Assistance Fund. 

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

9 only for providing financial assistance under this 

10 section. 

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

12 shall be deposited into the fund amounts received by 

13 the United States as revenues derived from rents, 

14 bonuses, and royalties from Federal leases and lease 

15 sales authorized under this Act. 

16 (4) LIMITATION ON DEPOSITS.—The total 

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

18 (5) INVESTMENT OF BALANCES.—The Sec19 retary of the Treasury shall invest amounts in the 

20 fund in interest bearing government securities. 

21 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro22 vide financial assistance under this section there is author23 ized to be appropriated to the Secretary from the Coastal 


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27 

HR 5429 PCS 

1 Plain Local Government Impact Aid Assistance Fund 

2 $5,000,000 for each fiscal year. 

Passed the House of Representatives May 25, 2006. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 464 

109TH CONGRESS 

2D SESSION H. R. 5429 

AN ACT 

To direct the Secretary of the Interior to establish 

poses. the Coastal Plain of Alaska, and for other purand production of the oil and gas resources of sound program for the exploration, development, program that will result in an environmentally and implement a competitive oil and gas leasing 

JUNE 5, 2006 

Read the second time and placed on the calendar 


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