II 

113TH CONGRESS 

2D SESSION S. 2408 

To authorize the exploration, leasing, development, and production of oil 

and gas in and from the western portion of the Coastal Plain of the 

State of Alaska without surface occupancy, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2014 

Ms. MURKOWSKI introduced the following bill; which was read twice and 

referred to the Committee on Energy and Natural Resources 

A BILL 

To authorize the exploration, leasing, development, and production of oil and gas in and from the western portion 

of the Coastal Plain of the State of Alaska without 

surface occupancy, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘No Surface Occupancy 

5 Western Arctic Coastal Plain Domestic Energy Security 

6 Act’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 


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

2 Plain’’ means the area described in appendix I to 

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

4 (2) FINAL STATEMENT.—The term ‘‘Final 

5 Statement’’ means the final legislative environmental 

6 impact statement on the Coastal Plain, dated April 

7 1987, and prepared pursuant to— 

8 (A) section 1002 of the Alaska National 

9 Interest Lands Conservation Act (16 U.S.C. 

10 3142); and 

11 (B) section 102(2)(C) of the National En12 vironmental Policy Act of 1969 (42 U.S.C. 

13 4332(2)(C)). 

14 (3) MAP.—The term ‘‘map’’ means the map en15 titled ‘‘Arctic National Wildlife Refuge’’, dated Sep16 tember 2005, and prepared by the United States Ge17 ological Survey. 

18 (4) SECRETARY.—The term ‘‘Secretary’’ means 

19 the Secretary of the Interior or the designee of the 

20 Secretary. 

21 (5) WESTERN COASTAL PLAIN.—The term 

22 ‘‘Western Coastal Plain’’ means that area of the 

23 Coastal Plain— 


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1 (A) that borders the land of the State of 

2 Alaska to the west and State of Alaska offshore 

3 waters of the Beaufort Sea on the north; and 

4 (B) from which oil and gas can be pro5 duced through the use of horizontal drilling or 

6 other subsurface technology from sites outside 

7 or underneath the surface of the Coastal Plain. 

8 SEC. 3. LEASING PROGRAM FOR LAND WITHIN THE WEST9 ERN COASTAL PLAIN. 

10 (a) IN GENERAL.— 

11 (1) AUTHORIZATION.—There is authorized the 

12 exploration, leasing, development, and production of 

13 oil and gas from the Western Coastal Plain. 

14 (2) ACTIONS.—The Secretary shall take such 

15 actions as are necessary— 

16 (A) to establish and implement, in accord17 ance with this Act, a competitive oil and gas 

18 leasing program that will result in an environ19 mentally sound program for the exploration, de20 velopment, and production of the oil and gas re21 sources of the Western Coastal Plain; and 

22 (B) to administer this Act through regula23 tions, lease terms, conditions, restrictions, pro24 hibitions, stipulations, and other provisions 

25 that— 


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1 (i) ensure the oil and gas exploration, 

2 development, and production activities on 

3 the Western Coastal Plain will result in no 

4 significant adverse effect on fish and wild5 life, fish and wildlife habitat, subsistence 

6 resources, and the environment; 

7 (ii) prohibit surface occupancy of the 

8 Western Coastal Plain during oil and gas 

9 development and production; and 

10 (iii) require the application of the best 

11 commercially available technology for oil 

12 and gas exploration, development, and pro13 duction to all exploration, development, 

14 and production operations under this Act 

15 in a manner that ensures the receipt of 

16 fair market value by the public for the 

17 mineral resources to be leased. 

18 (b) COMPLIANCE WITH REQUIREMENTS UNDER

19 CERTAIN OTHER LAWS.— 

20 (1) COMPATIBILITY.—For purposes of the Na21 tional Wildlife Refuge System Administration Act of 

22 1966 (16 U.S.C. 668dd et seq.)— 

23 (A) the oil and gas preleasing and leasing 

24 program and activities authorized by this sec25 tion in the Western Coastal Plain shall be conVerDate Mar 15 2010 04:18 Jun 03, 2014 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2408.IS S2408

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1 sidered to be compatible with the purposes for 

2 which the Arctic National Wildlife Refuge was 

3 established; and 

4 (B) no further findings or decisions shall 

5 be required to implement that program and 

6 those activities. 

7 (2) ADEQUACY OF THE LEGISLATIVE ENVIRON8 MENTAL IMPACT STATEMENT OF THE DEPARTMENT

9 OF THE INTERIOR.—The Final Statement shall be 

10 considered to satisfy the requirements of the Na11 tional Environmental Policy Act of 1969 (42 U.S.C. 

12 4321 et seq.) that apply with respect to preleasing 

13 activities, including exploration programs and ac14 tions authorized to be taken by the Secretary to de15 velop and promulgate the regulations for the estab16 lishment of a leasing program authorized by this Act 

17 before the conduct of the first lease sale. 

18 (3) COMPLIANCE WITH NEPA FOR OTHER AC19 TIONS.— 

20 (A) IN GENERAL.—Prior to conducting the 

21 first lease sale pursuant to this Act, the Sec22 retary shall prepare an environmental impact 

23 statement in accordance with the National En24 vironmental Policy Act of 1969 (42 U.S.C. 

25 4321 et seq.) with respect to the activities auVerDate Mar 15 2010 04:18 Jun 03, 2014 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2408.IS S2408

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1 thorized by this Act that are not covered by 

2 paragraph (2). 

3 (B) IDENTIFICATION AND ANALYSIS.— 

4 Notwithstanding any other provision of law, in 

5 carrying out this paragraph, the Secretary shall 

6 not— 

7 (i) identify nonleasing alternative 

8 courses of action; or 

9 (ii) analyze the environmental effect 

10 of those courses of action. 

11 (C) IDENTIFICATION OF PREFERRED AC12 TION.—Not later than 1 year after the date of 

13 enactment of this Act, the Secretary shall iden14 tify only a preferred action and a single leasing 

15 alternative for the first lease sale conducted 

16 pursuant to this Act. 

17 (D) EFFECT OF NONCOMPLIANCE.—Not18 withstanding any other provision of law, compli19 ance with this paragraph shall be considered to 

20 satisfy any provision of law or other require21 ment that requires analysis and consideration of 

22 the environmental effects of leasing with respect 

23 to the leasing conducted pursuant to this Act. 


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1 (c) RELATIONSHIP TO STATE AND LOCAL AUTHOR2 ITY.—Nothing in this Act expands or limits any State or 

3 local regulatory authority. 

4 (d) REGULATIONS.—Not later than 1 year after the 

5 date of enactment of this Act, in consultation with the 

6 State of Alaska, the North Slope Borough, Alaska, and 

7 the Arctic Slope Regional Corporation, the Secretary shall 

8 promulgate such regulations as are necessary to carry out 

9 this Act. 

10 SEC. 4. LEASE SALES. 

11 (a) QUALIFIED LESSEES.—Land may be leased 

12 under this Act to any person qualified to obtain a lease 

13 for deposits of oil and gas under the Mineral Leasing Act 

14 (30 U.S.C. 181 et seq.). 

15 (b) PROCEDURES.—The Secretary shall, by regula16 tion, establish procedures for— 

17 (1) receipt and consideration of sealed nomina18 tions for any area in the Western Coastal Plain for 

19 inclusion in a lease sale; 

20 (2) the holding of lease sales after the nomina21 tion process described in paragraph (1); and 

22 (3) public notice of, and comment on, designa23 tion of areas to be included in, or excluded from, a 

24 lease sale. 


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

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

3 (d) ACREAGE MINIMUM IN FIRST SALE.—For the 

4 first lease sale under this Act, the Secretary shall offer 

5 for lease those tracts the Secretary considers to have the 

6 greatest potential for the discovery of hydrocarbons, tak7 ing into consideration nominations received pursuant to 

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

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

10 shall— 

11 (1) not later than 18 months after the date of 

12 enactment of this Act, conduct the first lease sale 

13 under this Act; 

14 (2) not later than 1 year after the date on 

15 which the first lease sale is conducted under para16 graph (1), conduct a second lease sale under this 

17 Act; and 

18 (3) conduct additional sales at appropriate in19 tervals if sufficient interest in exploration or devel20 opment exists to warrant the conduct of the addi21 tional sales. 

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

23 (a) IN GENERAL.—On payment by a lessee of such 

24 bonus as may be accepted by the Secretary, the Secretary 

25 shall grant to the highest responsible qualified bidder in 


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1 a lease sale conducted pursuant to section 4 a lease for 

2 any land on the Western Coastal Plain. 

3 (b) SUBSEQUENT TRANSFERS.— 

4 (1) IN GENERAL.—No lease issued under this 

5 Act may be sold, exchanged, assigned, sublet, or oth6 erwise transferred except with the approval of the 

7 Secretary. 

8 (2) CONDITION FOR APPROVAL.—Before grant9 ing any approval under paragraph (1), the Secretary 

10 shall consult with, and give due consideration to the 

11 opinion of, the Attorney General. 

12 SEC. 6. LEASE TERMS AND CONDITIONS. 

13 (a) IN GENERAL.—An oil or gas lease issued pursu14 ant to this Act shall— 

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

less than 121 16 ⁄2 percent of the quantity or value of 

17 the production removed or sold from the lease, as 

18 determined by the Secretary in accordance with reg19 ulations applicable to other Federal oil and gas 

20 leases; 

21 (2) provide that the Secretary, after consulta22 tion with the State of Alaska, North Slope Borough, 

23 Alaska, and the Arctic Slope Regional Corporation, 

24 may close, on a seasonal basis, such portions of the 

25 Western Coastal Plain to exploratory drilling activiVerDate Mar 15 2010 04:18 Jun 03, 2014 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2408.IS S2408

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1 ties as are necessary to protect caribou calving areas 

2 and other species of fish and wildlife; 

3 (3) require that each lessee of land within the 

4 Western Coastal Plain shall be fully responsible and 

5 liable for the reclamation of land within the Western 

6 Coastal Plain and any other Federal land that is ad7 versely affected in connection with exploration activi8 ties conducted under the lease and within the West9 ern Coastal Plain by the lessee or by any of the sub10 contractors or agents of the lessee; 

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

12 convey, by contract or otherwise, the reclamation re13 sponsibility and liability described in paragraph (3) 

14 to another person without the express written ap15 proval of the Secretary; 

16 (5) contain terms and conditions relating to 

17 protection of fish and wildlife, fish and wildlife habi18 tat, subsistence resources, and the environment as 

19 required under section 3(a)(2); and 

20 (6) provide that each lessee, and each agent 

21 and contractor of a lessee, shall use the best efforts 

22 of the lessee to provide a fair share of employment 

23 and contracting for Alaska Natives and Alaska Na24 tive Corporations from throughout the State, as deVerDate Mar 15 2010 04:18 Jun 03, 2014 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2408.IS S2408

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1 termined by the level of obligation previously agreed 

2 to in the Federal Agreement. 

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

4 as a term and condition of each lease under this Act, and 

5 in recognizing the proprietary interest of the Federal Gov6 ernment in labor stability and in the ability of construction 

7 labor and management to meet the particular needs and 

8 conditions of projects to be developed under the leases 

9 issued pursuant to this Act (including the special concerns 

10 of the parties to those leases), shall require that each les11 see, and each agent and contractor of a lessee, under this 

12 Act negotiate to obtain a project labor agreement for the 

13 employment of laborers and mechanics on production, 

14 maintenance, and construction under the lease. 

15 SEC. 7. FEDERAL AND STATE DISTRIBUTION OF REVENUES. 

16 (a) IN GENERAL.—Notwithstanding any other provi17 sion of law, of the amount of bonus, rental, and royalty 

18 revenues from oil and gas leasing and operations author19 ized by this Act— 

20 (1) 50 percent shall be paid to the State of 

21 Alaska; and 

22 (2) the balance shall be deposited in the Treas23 ury of the United States. 


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

2 of Alaska under this section shall be made on a monthly 

3 basis. 

4 SEC. 8. CONVEYANCE. 

5 Notwithstanding section 1302(h)(2) of the Alaska 

6 National Interest Lands Conservation Act (16 U.S.C. 

7 3192(h)(2)), to remove any cloud on title to land, and to 

8 clarify land ownership patterns in the Coastal Plain, the 

9 Secretary shall— 

10 (1) to the extent necessary to fulfill the entitle11 ment of the Kaktovik Inupiat Corporation under sec12 tions 12 and 14 of the Alaska Native Claims Settle13 ment Act (43 U.S.C. 1611, 1613), as determined by 

14 the Secretary, convey to that Corporation the sur15 face estate of the land described in paragraph (1) of 

16 Public Land Order 6959, in accordance with the 

17 terms and conditions of the agreement between the 

18 Secretary, the United States Fish and Wildlife Serv19 ice, the Bureau of Land Management, and the 

20 Kaktovik Inupiat Corporation, dated January 22, 

21 1993; and 

22 (2) convey to the Arctic Slope Regional Cor23 poration the remaining subsurface estate to which 

24 that Corporation is entitled under the agreement beVerDate Mar 15 2010 04:18 Jun 03, 2014 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S2408.IS S2408

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1 tween that corporation and the United States, dated 

2 August 9, 1983. 

Æ 


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