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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4529 Introduced in House (IH)]

  2d Session
                                H. R. 4529

To provide for exploration, development, and production of oil and gas 
resources on the Arctic Coastal Plain of Alaska, to resolve outstanding 
 issues relating to the Surface Mining Control and Reclamation Act of 
  1977, to benefit the coal miners of America, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 2004

  Mr. Pombo introduced the following bill; which was referred to the 
 Committee on Resources, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To provide for exploration, development, and production of oil and gas 
resources on the Arctic Coastal Plain of Alaska, to resolve outstanding 
 issues relating to the Surface Mining Control and Reclamation Act of 
  1977, to benefit the coal miners of America, 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 title may be cited as the ``Arctic Coastal Plain and Surface 
Mining Improvement Act of 2004''.

    TITLE I--OIL AND GAS LEASING PROGRAM FOR COASTAL PLAIN OF ALASKA

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Arctic Coastal Plain Domestic 
Energy Security Act of 2004''.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as such in the map entitled ``Arctic National 
        Wildlife Refuge'', dated August 1980, as referenced in section 
        1002(b) of the Alaska National Interest Lands Conservation Act 
        of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately 
        1,549,000 acres, and as described in appendix I to part 37 of 
        title 50, Code of Federal Regulations.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 103. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

    (a) In General.--The Secretary shall take such actions as are 
necessary--
            (1) to establish and implement in accordance with this Act 
        a competitive oil and gas leasing program under the Mineral 
        Leasing Act (30 U.S.C. 181 et seq.) that will result in an 
        environmentally sound program for the exploration, development, 
        and production of the oil and gas resources of the Coastal 
        Plain; and
            (2) to administer the provisions of this title through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that 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 including, in furtherance 
        of this goal, by requiring 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 title in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--Section 1003 of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966, the oil and gas 
        leasing program and activities authorized by this section in 
        the Coastal Plain are deemed to be compatible with the purposes 
        for which the Arctic National Wildlife Refuge was established, 
        and that no further findings or decisions are required to 
        implement this determination.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The ``Final 
        Legislative Environmental Impact Statement'' (April 1987) on 
        the Coastal Plain prepared pursuant to section 1002 of the 
        Alaska National Interest Lands Conservation Act of 1980 (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)) is 
        deemed to satisfy the requirements under the National 
        Environmental Policy Act of 1969 that apply with respect to 
        actions authorized to be taken by the Secretary to develop and 
        promulgate the regulations for the establishment of a leasing 
        program authorized by this title before the conduct of the 
        first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this title, the Secretary 
        shall prepare an environmental impact statement under the 
        National Environmental Policy Act of 1969 with respect to the 
        actions authorized by this title that are not referred to in 
        paragraph (2). Notwithstanding any other law, the Secretary is 
        not required to identify nonleasing alternative courses of 
        action or to analyze the environmental effects of such courses 
        of action. The Secretary shall only identify a preferred action 
        for such leasing and a single leasing alternative, and analyze 
        the environmental effects and potential mitigation measures for 
        those two alternatives. The identification of the preferred 
        action and related analysis for the first lease sale under this 
        title shall be completed within 18 months after the date of the 
        enactment of this Act. The Secretary shall only consider public 
        comments that specifically address the Secretary's preferred 
        action and that are filed within 20 days after publication of 
        an environmental analysis. Notwithstanding any other law, 
        compliance with this paragraph is deemed to satisfy all 
        requirements for the analysis and consideration of the 
        environmental effects of proposed leasing under this title.
    (d) Relationship to State and Local Authority.--Nothing in this 
title shall be considered to expand or limit State and local regulatory 
authority.
    (e) Special Areas.--
            (1) In general.--The Secretary, after consultation with the 
        State of Alaska, the city of Kaktovik, and the North Slope 
        Borough, may designate up to a total of 45,000 acres of the 
        Coastal Plain as a Special Area if the Secretary determines 
        that the Special Area is of such unique character and interest 
        so as to require special management and regulatory protection. 
        The Secretary shall designate as such a Special Area the 
        Sadlerochit Spring area, comprising approximately 4,000 acres 
        as depicted on the map referred to in section 102(1).
            (2) Management.--Each such Special Area shall be managed so 
        as to protect and preserve the area's unique and diverse 
        character including its fish, wildlife, and subsistence 
        resource values.
            (3) Exclusion from leasing or surface occupancy.--The 
        Secretary may exclude any Special Area from leasing. If the 
        Secretary leases a Special Area, or any part thereof, for 
        purposes of oil and gas exploration, development, production, 
        and related activities, there shall be no surface occupancy of 
        the lands comprising the Special Area.
            (4) Directional drilling.--Notwithstanding the other 
        provisions 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 area.
    (f) Limitation on Closed Areas.--The Secretary's sole authority to 
close lands within the Coastal Plain to oil and gas leasing and to 
exploration, development, and production is that set forth in this 
title.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this title, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of the enactment of this Act.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 104. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this title 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 such 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 title shall be 
by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this title, 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) conduct the first lease sale under this title within 22 
        months after the date of the enactment of this Act; and
            (2) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 105. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--The Secretary may grant to the highest responsible 
qualified bidder in a lease sale conducted pursuant to section 104 any 
lands to be leased on the Coastal Plain upon payment by the lessee of 
such bonus as may be accepted by the Secretary.
    (b) Subsequent Transfers.--No lease issued under this title may be 
sold, exchanged, assigned, sublet, or otherwise transferred except with 
the approval of the Secretary. Prior to any such approval the Secretary 
shall consult with, and give due consideration to the views of, the 
Attorney General.

SEC. 106. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this title 
shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent in amount or value of the production removed or 
        sold from the lease, as determined by the Secretary under the 
        regulations applicable to other Federal oil and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, portions of the Coastal Plain to exploratory drilling 
        activities as necessary to protect caribou calving areas and 
        other species of fish and wildlife;
            (3) require that the lessee of lands within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of lands within the Coastal Plain and any other Federal lands 
        that are 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, the reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for lands 
        required to be reclaimed under this title shall be, as nearly 
        as practicable, a condition capable of supporting the uses 
        which the lands were capable of supporting prior to any 
        exploration, development, or production activities, or upon 
        application by the lessee, to a higher or better use as 
        approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, their habitat, and the environment as 
        required pursuant to section 103(a)(2);
            (7) provide that the lessee, its agents, and its 
        contractors use best efforts to provide a fair share, as 
        determined by the level of obligation previously agreed to in 
        the 1974 agreement implementing section 29 of the Federal 
        Agreement and Grant of Right of Way for the Operation of the 
        Trans-Alaska Pipeline, of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State;
            (8) prohibit the export of oil produced under the lease; 
        and
            (9) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this title and the regulations issued under this title.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this title and in recognizing the 
Government's proprietary interest 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 title and the special concerns of the parties to such leases, 
shall require that the lessee and its agents and contractors negotiate 
to obtain a project labor agreement for the employment of laborers and 
mechanics on production, maintenance, and construction under the lease.

SEC. 107. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard to Govern Authorized 
Coastal Plain Activities.--The Secretary shall, consistent with the 
requirements of section 103, administer the provisions of this title 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that--
            (1) 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, 
        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 that the maximum amount of surface acreage 
        covered 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 
also require, with respect to any proposed drilling and related 
activities, 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, their habitat, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the extent practicable) any significant 
        adverse effect identified under paragraph (1); and
            (3) the development of the plan shall occur after 
        consultation with the agency or agencies having jurisdiction 
        over matters mitigated by the plan.
    (c) Regulations to Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this title, the Secretary shall 
prepare and promulgate regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other measures designed 
to ensure that the activities undertaken on the Coastal Plain under 
this title are conducted in a manner consistent with the purposes and 
environmental requirements of this title.
    (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 title shall require compliance with all applicable 
provisions of Federal and State environmental law and shall also 
require the following:
            (1) Standards at least as effective as the safety and 
        environmental mitigation measures set forth in items 1 through 
        29 at pages 167 through 169 of the ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain.
            (2) Seasonal limitations on exploration, development, and 
        related activities, where necessary, to avoid significant 
        adverse effects during periods of concentrated fish and 
        wildlife breeding, denning, nesting, spawning, and migration.
            (3) That exploration activities, except for surface 
        geological studies, be limited to the period between 
        approximately November 1 and May 1 each year and that 
        exploration activities shall be supported by ice roads, winter 
        trails with adequate snow cover, ice pads, ice airstrips, and 
        air transport methods, except that such exploration activities 
        may occur at other times, if the Secretary finds that such 
        exploration will have no significant adverse effect on the fish 
        and wildlife, their habitat, and the environment of the Coastal 
        Plain.
            (4) Design safety and construction standards for all 
        pipelines and any access and service roads, that--
                    (A) minimize, to the maximum extent possible, 
                adverse effects upon the passage of migratory species 
                such as caribou; and
                    (B) minimize adverse effects upon the flow of 
                surface water by requiring the use of culverts, 
                bridges, and other structural devices.
            (5) Prohibitions on public access and use on all pipeline 
        access and service roads.
            (6) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this title, 
        requiring the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
            (7) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (9) Consolidation of facility siting.
            (10) Appropriate prohibitions or restrictions on use of 
        explosives.
            (11) Avoidance, to the extent practicable, of springs, 
        streams, and river system; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
            (12) Avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife.
            (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
            (14) Fuel storage and oil spill contingency planning.
            (15) Research, monitoring, and reporting requirements.
            (16) Field crew environmental briefings.
            (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (18) Compliance with applicable air and water quality 
        standards.
            (19) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (20) Reasonable stipulations for protection of cultural and 
        archeological resources.
            (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
    (e) Considerations.--In preparing and promulgating regulations, 
lease terms, conditions, restrictions, prohibitions, and stipulations 
under this section, the Secretary shall consider the following:
            (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 to 37.33 of title 50, Code of Federal Regulations.
            (3) The land use stipulations for exploratory drilling on 
        the KIC-ASRC private lands that are set forth in Appendix 2 of 
        the August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
    (f) Facility Consolidation Planning.--
            (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
            (2) Objectives.--The plan shall have the following 
        objectives:
                    (A) Avoiding unnecessary duplication of facilities 
                and activities.
                    (B) Encouraging consolidation of common facilities 
                and activities.
                    (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                    (D) Utilizing existing facilities wherever 
                practicable.
                    (E) Enhancing compatibility between wildlife values 
                and development activities.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        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 lands in the Coastal Plain for traditional 
        uses.

SEC. 108. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this title or any 
        action of the Secretary under this title shall be filed in any 
        appropriate district court of the United States--
                    (A) except as provided in subparagraph (B), within 
                the 90-day period beginning on the date of the action 
                being challenged; or
                    (B) in the case of a complaint based solely on 
                grounds arising after such period, within 90 days after 
                the complainant knew or reasonably should have known of 
                the grounds for the complaint.
            (2) Venue.--Any complaint seeking judicial review of an 
        action of the Secretary under this title may be filed only in 
        the United States Court of Appeals for the District of 
        Columbia.
            (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        title, including the environmental analysis thereof, shall be 
        limited to whether the Secretary has complied with the terms of 
        this title and shall be based upon the administrative record of 
        that decision. The Secretary's identification of a preferred 
        course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this title 
        shall be presumed to be correct unless shown otherwise by clear 
        and convincing evidence to the contrary.
    (b) Limitation on Other Review.--Actions of the Secretary with 
respect to which review could have been obtained under this section 
shall not be subject to judicial review in any civil or criminal 
proceeding for enforcement.

SEC. 109. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from oil and gas 
leasing and operations authorized under this title--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) except as provided in section 112(d) and title II, the 
        balance shall be deposited into the Treasury as miscellaneous 
        receipts.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 110. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) Exemption.--Title XI of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to 
the issuance by the Secretary under section 28 of the Mineral Leasing 
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal 
Plain for the transportation of oil and gas.
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement referred to in subsection (a) such terms and 
conditions as may be necessary to ensure that transportation of oil and 
gas does not result in a significant adverse effect on the fish and 
wildlife, subsistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be sited or 
designed so as to avoid unnecessary duplication of roads and pipelines.
    (c) Regulations.--The Secretary shall include in regulations under 
section 103(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 111. CONVEYANCE.

    In order to maximize Federal revenues by removing clouds on title 
to lands and clarifying land ownership patterns within the Coastal 
Plain, the Secretary, notwithstanding the provisions of section 
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3192(h)(2)), shall convey--
            (1) to the Kaktovik Inupiat Corporation the surface estate 
        of the lands described in paragraph 1 of Public Land Order 
        6959, to the extent necessary to fulfill the Corporation's 
        entitlement under section 12 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1611) in accordance with the terms 
        and conditions of the Agreement between the Department of the 
        Interior, the United States Fish and Wildlife Service, the 
        Bureau of Land Management, and the Kaktovik Inupiat Corporation 
        effective January 22, 1993; and
            (2) to the Arctic Slope Regional Corporation the remaining 
        subsurface estate to which it is entitled pursuant to the 
        August 9, 1983, agreement between the Arctic Slope Regional 
        Corporation and the United States of America.

SEC. 112. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Financial Assistance Authorized.--
            (1) In general.--The Secretary may use amounts available 
        from the Coastal Plain Local Government Impact Aid Assistance 
        Fund established by subsection (d) to provide timely financial 
        assistance to entities that are eligible under paragraph (2) 
        and that are directly impacted by the exploration for or 
        production of oil and gas on the Coastal Plain under this 
        title.
            (2) Eligible entities.--The North Slope Borough, Kaktovik, 
        and other boroughs, municipal subdivisions, villages, and any 
        other community organized under Alaska State law shall be 
        eligible for financial assistance under this section.
    (b) Use of Assistance.--Financial assistance under this section may 
be used only for--
            (1) planning for mitigation of the potential effects of oil 
        and gas exploration and development on environmental, social, 
        cultural, recreational and subsistence values;
            (2) implementing mitigation plans and maintaining 
        mitigation projects;
            (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including firefighting, police, water, waste 
        treatment, medivac, and medical services; and
            (4) establishment of a coordination office, by the North 
        Slope Borough, in the City of Kaktovik, which shall--
                    (A) coordinate with and advise developers on local 
                conditions, impact, and history of the areas utilized 
                for development; and
                    (B) provide to the Committee on Resources of the 
                Senate and the Committee on Energy and Resources of the 
                Senate an annual report on the status of coordination 
                between developers and the communities affected by 
                development.
    (c) Application.--
            (1) In general.--Any community that is eligible for 
        assistance under this section may submit an application for 
        such assistance to the Secretary, in such form and under such 
        procedures as the Secretary may prescribe by regulation.
            (2) North slope borough communities.--A community located 
        in the North Slope Borough may apply for assistance under this 
        section either directly to the Secretary or through the North 
        Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist the North Slope Borough and other 
        communities eligible for assistance under this section in 
        developing and submitting applications for assistance under 
        this section.
    (d) Establishment of Fund.--
            (1) In general.--There is established in the Treasury the 
        Coastal Plain Local Government Impact Aid Assistance Fund.
            (2) Use.--Amounts in the fund may be used only for 
        providing financial assistance under this section.
            (3) Deposits.--Subject to paragraph (4), there shall be 
        deposited into the fund amounts received by the United States 
        as revenues derived from rents, bonuses, and royalties under on 
        leases and lease sales authorized under this title.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $11,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the fund in interest bearing government 
        securities.
    (e) Authorization of Appropriations.--To provide financial 
assistance under this section there is authorized to be appropriated to 
the Secretary from the Coastal Plain Local Government Impact Aid 
Assistance Fund $5,000,000 for each fiscal year.

           TITLE II--ABANDONED MINE LANDS RECLAMATION REFORM

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Abandoned Mine Lands Reclamation 
Reform Act of 2004''.

SEC. 202. AMENDMENTS TO SURFACE MINING ACT.

    (a) Amendments to Section 401.--(1) Section 401 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231) is amended 
as follows:
            (A) In subsection (c) by striking paragraphs (2) and (6) 
        and redesignating paragraphs (3) through (13) in order as 
        paragraphs (2) through (11).
            (B) In subsection (e)--
                    (i) in the second sentence, by striking ``the needs 
                of such fund'' and inserting ``achieving the purposes 
                of the payments under section 402(h)''; and
                    (ii) in the third sentence, by inserting before the 
                period the following: ``for the purpose of the payments 
                under section 402(h)''.
            (2) Section 712(b) of the Surface Mining Control and 
        Reclamation Act of 1977 (30 U.S.C. 1302(b)) is amended by 
        striking ``section 401(c)(11)'' and inserting ``section 
        401(c)(9)''.
    (b) Amendments to Section 402.--Section 402 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1232) is amended as 
follows:
            (1) In subsection (a)--
                    (A) by striking ``35'' and inserting ``28'';
                    (B) by striking ``15'' and inserting ``12''; and
                    (C) by striking ``10 cents'' and inserting ``8 
                cents''.
            (2) In subsection (b) by striking ``2004'' and all that 
        follows through the end of the sentence and inserting 
        ``2019.''.
            (3) In subsection (g)(1)(D) by striking ``in any area under 
        paragraph (2), (3), (4), or (5)'' and inserting ``under 
        paragraph (5)''.
            (4) Subsection (g)(2) is amended to read as follows:
            ``(2) In making the grants referred to in paragraph (1)(C) 
        and the grants referred to in paragraph (5), the Secretary 
        shall ensure strict compliance by the States and Indian tribes 
        with the priorities set forth in section 403(a) until a 
        certification is made under section 411(a).''.
            (5) In subsection (g)(3)--
                    (A) in the matter preceding subparagraph (A) by 
                striking ``paragraphs (2) and'' and inserting 
                ``paragraph'';
                    (B) in subparagraph (A) by striking ``401(c)(11)'' 
                and inserting ``401(c)(9)''; and
                    (C) by adding at the end the following:
            ``(E) For the purpose of paragraph (8).''.
            (6) In subsection (g)(5)--
                    (A) by inserting ``(A)'' before the first sentence;
                    (B) in the first sentence by striking ``40'' and 
                inserting ``60'';
                    (C) in the last sentence by striking ``Funds 
                allocated or expended by the Secretary under paragraphs 
                (2), (3), or (4),'' and inserting ``Funds made 
                available under paragraph (3) or (4)''; and
                    (D) by adding at the end the following:
    ``(B) Any amount that is reallocated and available under section 
411(h)(3) shall be in addition to amounts that are allocated under 
subparagraph (A).''.
            (7) Subsection (g)(6) is amended to read as follows:
    ``(6)(A) Any State with an approved abandoned mine reclamation 
program pursuant to section 405 may receive and retain, without regard 
to the 3-year limitation referred to in paragraph (1)(D), up to 10 
percent of the total of the grants made annually to such State under 
paragraphs (1) and (5) if such amounts are deposited into an acid mine 
drainage abatement and treatment fund established under State law, from 
which amounts (together with all interest earned on such amounts) are 
expended by the State for the abatement of the causes and the treatment 
of the effects of acid mine drainage in a comprehensive manner within 
qualified hydrologic units affected by coal mining practices.
    ``(B) For the purposes of this paragraph, the term `qualified 
hydrologic unit' means a hydrologic unit--
            ``(i) in which the water quality has been significantly 
        affected by acid mine drainage from coal mining practices in a 
        manner that adversely impacts biological resources; and
            ``(ii) that contains lands and waters that are--
                    ``(I) eligible pursuant to section 404 and include 
                any of the priorities set forth in section 403(a); and
                    ``(II) the subject of expenditures by the State 
                from the forfeiture of bonds required under section 509 
                or from other States sources to abate and treat acid 
                mine drainage.''.
            (8) Subsection (g)(7) is amended to read as follows:
    ``(7) In complying with the priorities set forth in section 403(a), 
any State or Indian tribe may use amounts available in grants made 
annually to such State or tribe under paragraphs (1) and (5) for the 
reclamation of eligible lands and waters set forth in section 403(a)(3) 
prior to the completion of reclamation projects under paragraphs (1) 
and (2) of section 403(a) only if the expenditure of funds for such 
reclamation is done in conjunction with the expenditure of funds for 
reclamation projects under paragraphs (1) and (2) of section 403(a).''.
            (9) Subsection (g)(8) is amended to read as follows:
    ``(8) In making the grants referred to in paragraph (1)(C), the 
Secretary, using amounts allocated to a State or Indian tribe under 
subparagraphs (A) or (B) of paragraph (1) or as necessary amounts 
available to the Secretary under paragraph (3), shall assure total 
grant awards of not less than $2,000,000 annually to each State, 
including Tennessee, and each Indian tribe.''.
            (10) By amending subsection (h) to read as follows:
    ``(h) Payment of Funds for Benefit Payments.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, at the beginning of each fiscal year, the Secretary 
        of the Interior shall pay from the fund--
                    ``(A) the amount described in paragraph (3) for 
                such year to the Combined Fund,
                    ``(B) the amount described in paragraph (4) for 
                such year to the 1992 Plan, and
                    ``(C) the amount described in paragraph (5) for 
                such year to the 1993 Plan.
            ``(2) Payments may not exceed aggregate interest received 
        by fund.--The aggregate amount paid under paragraph (1) for any 
        fiscal year shall not exceed the lesser of--
                    ``(A) the excess of--
                            ``(i) the aggregate interest received by 
                        the fund during all preceding fiscal years, 
                        over
                            ``(ii) the aggregate payments made under 
                        paragraph (1) for all preceding fiscal years, 
                        or
                    ``(B) the unobligated balance of the fund as of the 
                close of the preceding fiscal year.
            ``(3) Payments to combined fund.--
                    ``(A) In general.--The amount described in this 
                paragraph for any fiscal year is an amount equal to the 
                sum of--
                            ``(i) the estimated expenditures to be 
                        debited against the unassigned beneficiaries 
                        premium account under section 9704(e) of the 
                        Internal Revenue Code of 1986 for such fiscal 
                        year, plus
                            ``(ii) the estimated amount needed to 
                        offset the amount of any deficit (as of the 
                        close of the preceding fiscal year) in net 
                        assets in the Combined Fund.
                    ``(B) Certain pre-2001 premiums.--
                            ``(i) In general.--The amount described in 
                        this paragraph (without regard to this 
                        subparagraph) for fiscal year 2004 shall be 
                        increased by $36,000,000.
                            ``(ii) Refunds.--Not later than January 31, 
                        2005, the trustees of the Combined Fund shall 
                        pay to each coal industry operator described in 
                        clause (iii) (and to each related person with 
                        respect to such an operator) an amount equal to 
                        the aggregate amount paid by such operator (or 
                        such related person) to the Combined Fund on or 
                        before September 7, 2000, and not previously 
                        refunded or credited, plus interest on such 
                        amount calculated at the rate of 7.5 percent 
                        per year. The aggregate amount paid under this 
                        subparagraph shall not exceed $36,000,000.
                            ``(iii) Coal industry operator described.--
                        A coal industry operator is described in this 
                        clause if--
                                    ``(I) the operator's beneficiary 
                                assignments have been voided by the 
                                Commissioner of the Social Security 
                                Administration; and
                                    ``(II) the operator brought an 
                                action prior to September 7, 2000, 
                                claiming that the assignment of 
                                beneficiaries under section 9706 of the 
                                Internal Revenue Code of 1986 was 
                                unconstitutional as applied to such 
                                operator and received a final judgment 
                                or final settlement against such claim.
            ``(4) Payments to 1992 plan.--The amount described in this 
        paragraph for any fiscal year is an amount equal to the excess 
        of--
                    ``(A) the estimated expenditures from the 1992 Plan 
                during such fiscal year to provide benefits required 
                under section 9712(c) of such Code, over
                    ``(B) the estimated receipts of the 1992 Plan for 
                such fiscal year from payments required under 
                paragraphs (1)(B) and (3) of section 9712(d) of such 
                Code and from any security provided to the 1992 Plan 
                pursuant to section 9712(d)(1)(C) of such Code that is 
                available for use in the provision of benefits.
            ``(5) Payments to 1993 plan.--
                    ``(A) In general.--The amount described in this 
                paragraph for any fiscal year is an amount equal to the 
                excess of--
                            ``(i) the estimated expenditures from the 
                        1993 Plan during such fiscal year to continue 
                        to provide benefits at levels no greater than 
                        those in effect on the date of enactment of 
                        this paragraph, under the eligibility criteria 
                        in effect on the date of enactment of this 
                        paragraph, over
                            ``(ii) the estimated income of the 1993 
                        Plan for such fiscal year.
                    ``(B) Limitation.--A payment shall not be made 
                under this paragraph for any fiscal year unless the 
                entities that are obligated as of the beginning of such 
                fiscal year to contribute to the 1993 Plan remain 
                obligated throughout such year to make such 
                contributions at rates that are no less than those in 
                effect on the date of enactment of this paragraph.
            ``(6) Ordering rules where specified payments exceed 
        limitation.--
                    ``(A) In general.--Amounts shall be paid under 
                paragraphs (4) and (5) for any fiscal year only to the 
                extent that the limitation under paragraph (2) for such 
                year exceeds the sum of--
                            ``(i) the estimated payments to be made 
                        under paragraph (3) for such year, and
                            ``(ii) the estimated payments to be made 
                        under paragraph (3) for the succeeding fiscal 
                        year.
                    ``(B) Proportional reduction.--Payments under 
                paragraphs (4) and (5) shall be proportionally reduced 
                to the extent the full amount of such payments may not 
                be made by reason of subparagraph (A).
            ``(7) Estimates and adjustments.--
                    ``(A) Estimates.--Estimated amounts with respect to 
                any fund or plan shall be made by the trustees thereof.
                    ``(B) Adjustments.--If, for any fiscal year, the 
                amount paid under parragraph (3), (4), or (5) is more 
                or less than the amount required to be paid, the 
                Secretary of the Interior shall appropriately adjust 
                the amount paid under that paragraph for the next 
                fiscal year.
            ``(8) Definitions.--For purposes of this subsection--
                    ``(A) Combined fund.--The term `Combined Fund' 
                means the United Mine Workers of America Combined 
                Benefit Fund established under section 9702 of the 
                Internal Revenue Code of 1986.
                    ``(B) 1992 plan.--The term `1992 Plan' means the 
                United Mine Workers of America 1992 Benefit Plan 
                established under section 9712 of such Code.
                    ``(C) 1993 plan.--The term `1993 Plan' means the 
                multiemployer health benefit plan established after 
                July 20, 1992, by the persons referred to in section 
                9701(b)(2) of such Code.''.
    (c) Amendments to Section 403.--Section 403 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1233(a)) is amended as 
follows:
            (1) In subsection (a)--
                    (A) in paragraph (1) by striking ``general 
                welfare,'';
                    (B) in paragraph (2) by striking ``health, safety, 
                and general welfare'' and inserting ``health and 
                safety'', and inserting ``and'' after the semicolon at 
                the end;
                    (C) in paragraph (3) by striking the semicolon at 
                the end and inserting a period; and
                    (D) by striking paragraphs (4) and (5).
            (2) In subsection (b)--
                    (A) by striking the heading and inserting ``Water 
                Supply Restoration.--''; and
                    (B) in paragraph (1) by striking ``up to 30 percent 
                of the''.
            (3) In subsection (c) by inserting ``, subject to the 
        approval of the Secretary,'' after ``amendments''.
    (d) Amendment to Section 406.--Section 406(h) of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is amended by 
striking ``Soil Conservation Service'' and inserting ``Natural 
Resources Conservation Service''.
    (e) Further Amendment to Section 406.--Section 406 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1236) is amended 
by adding at the end the following:
    ``(i) There is authorized to be appropriated to the Secretary of 
Agriculture, from amounts in the Treasury other than amounts in the 
fund, such sums as may be necessary to carry out this section.''.
    (f) Amendment to Section 408.--Section 408(a) of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1238) is amended by 
striking ``who owned the surface prior to May 2, 1977, and''.
    (g) Amendments to Section 411.--Section 411 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1240a) is amended as 
follows:
            (1) In subsection (a) by inserting ``(1)'' before the first 
        sentence, and by adding at the end the following:
    ``(2) The Secretary may, on the Secretary's own volition, make the 
certification referred to in paragraph (1) on behalf of any State or 
Indian tribe referred to in paragraph (1) if on the basis of the 
inventory referred to in section 403(c) all reclamation projects 
relating to the priorities set forth in section 403(a) for eligible 
lands and water pursuant to section 404 in such State or tribe have 
been completed. The Secretary shall only make such certification after 
notice in the Federal Register and opportunity for public comment.''.
            (2) By adding at the end the following:
    ``(h) State Share for Certain Certified States.--(1)(A) From moneys 
referred to in subsection (a) of section 35 of the Mineral Leasing Act 
(30 U.S.C. 191(a)) that are paid into the Treasury after the date of 
the enactment of this subsection and that are not paid to States under 
section 35 of the Mineral Leasing Act or reserved as part of the 
reclamation fund under such section, the Secretary of the Interior 
shall pay to each qualified State, on a proportional basis, an amount 
equal to the sum of the aggregate unappropriated amount allocated to 
such qualified State under section 402(g)(1)(A).
    ``(B) In this paragraph the term `qualified State' means a State 
for which a certification is made under subsection (a) and in which 
there are public domain lands available for leasing under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.).
    ``(2) Payments to States under this subsection shall be made, 
without regard to any limitation in section 401(d), in the same manner 
as if paid under section 35 of the Mineral Leasing Act (30 U.S.C. 191) 
and concurrently with payments to States under that section. The funds 
distributed under this section shall be referred to as the `Cubin-
Thomas Mineral Fund'.
    ``(3) The amount allocated to any State under section 402(g)(1)(A) 
that is paid to such State as a result of a payment under paragraph (1) 
of this subsection shall be reallocated and available for grants under 
section 402(g)(5).''.

SEC. 203. USE OF REVENUES FROM COASTAL PLAIN.

    (a) Use of Revenues.--Title IV of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1231 et seq.) is amended by adding 
at the end the following:

``SEC. 415. USE OF REVENUES FROM COASTAL PLAIN OF ALASKA.

    ``(a) Coal Mining Fairness Fund.--There is established in the 
Treasury a separate account to be known as the `Coal Mining Fairness 
Fund' (hereafter in this section referred to as the `Account').
    ``(b) Appropriations to Account.--
            ``(1) In general.--There are hereby appropriated to the 
        Account amounts equivalent to the amounts received by the 
        United States as bonuses, rents, or royalties from the 
        exploration, development, and production of the oil and gas 
        resources of the Coastal Plain, that are not required to be 
        otherwise paid or deposited under section 109(a) or 112(d) of 
        the Arctic Coastal Plain Domestic Energy Security Act of 2004.
            ``(2) Repayable advances.--
                    ``(A) In general.--There are hereby appropriated to 
                the Account for each fiscal year as a repayable advance 
                an amount equal to the excess (if any) of--
                            ``(i) the expenditures required under 
                        subsection (c) for such year, over
                            ``(ii) the amount appropriated by paragraph 
                        (1) for such year.
                    ``(B) Repayment of advances.--
                            ``(i) In general.--Advances made to the 
                        Account shall be repaid, and interest on such 
                        advances shall be paid, to the general fund of 
                        the Treasury when the Secretary of the Interior 
                        determines that moneys are available for such 
                        purposes in the Account.
                            ``(ii) Final repayment.--No advance shall 
                        be made to the Account after December 31, 2007, 
                        and all advances to the Account shall be repaid 
                        on or before September 30, 2009.
                    ``(C) Rate of interest.--Interest on advances made 
                to the Account shall be at a rate determined by the 
                Secretary of the Treasury (as of the close of the 
                calendar month preceding the month in which the advance 
                is made) to be equal to the current average market 
                yield on outstanding marketable obligations of the 
                United States with remaining periods to maturity 
                comparable to the anticipated period during which the 
                advance will be outstanding and shall be compounded 
                annually.
    ``(c) Expenditures.--
            ``(1) Combined fund.--The Secretary of the Interior shall 
        pay from the Account to the Combined Fund amounts necessary 
        (after the payments under section 402(h)) to meet the 
        obligations of the Combined Fund.
            ``(2) Refunds of 2004 premiums, etc.--Not later than 
        December 1, 2004, the Secretary of the Interior shall pay from 
        the Account to each specified person an amount equal to the 
        amount of premiums or assigned operator contributions paid by 
        such person for fiscal year 2004.
            ``(3) Premiums, etc. otherwise payable after 2004.--
                    ``(A) In general.--At the beginning of each fiscal 
                year after fiscal year 2004, the Secretary of the 
                Interior shall pay from the Account to the Combined 
                Fund an amount equal to the amount of premiums or 
                assigned operator contributions which would (but for 
                subparagraph (B)) be required to be paid by specified 
                persons for such fiscal year.
                    ``(B) Waiver of liability.--For waiver of liability 
                for amounts paid under subparagraph (A), see section 
                9704(j) of the Internal Revenue Code of 1986.
            ``(4) 1992 plan.--The Secretary of the Interior shall pay 
        from the Account to the 1992 Plan (as defined in section 
        402(h)) amounts necessary (after the appropriations under 
        section 402(h)) to pay the amounts described in section 
        402(h)(4).
            ``(5) 1993 plan.--The Secretary of the Interior shall pay 
        from the Account to the 1993 Plan amounts necessary (after the 
        appropriations under section 402(h)) to pay the amounts 
        described in section 402(h)(5).
            ``(6) Qualified states.--
                    ``(A) In general.--The Secretary of the Interior 
                shall pay from the Account to each qualified State an 
                amount equal to the sum of the aggregate unappropriated 
                amount allocated to such qualified State under 
                subparagraph (A) or (B), as applicable, of section 
                402(g)(1).
                    ``(B) Reallocation.--The amount allocated to any 
                qualified State under section 402(g)(1) that is paid to 
                such qualified State as a result of a payment under 
                subparagraph (A) shall be reallocated and available for 
                grants under section 402(g)(5).
    ``(d) Definitions.--For purposes of this section--
            ``(1) Coastal plain.--The term `Coastal Plain' has the 
        meaning given that term in section 102 of the Arctic Coastal 
        Plain Domestic Energy Security Act of 2004.
            ``(2) Specified person.--The term `specified person' means 
        an assigned operator (as defined in section 9701(c)(5) of the 
        Internal Revenue Code of 1986), a related person of such 
        assigned operator, and a successor-in-interest of such operator 
        or person, if according to the records of the Combined Fund 
        such assigned operator--
                    ``(A) was assessed or is otherwise liable for 
                premiums to the Combined Fund in October 2001, and
                    ``(B) was not--
                            ``(i) a signatory to the 1988 or any later 
                        National Bituminous Coal Wage Agreement,
                            ``(ii) a signatory to an agreement (other 
                        than the National Coal Mine Construction 
                        Agreement or the Coal Haulers' Agreement) 
                        containing pension and health care contribution 
                        and benefit provisions that are identical to 
                        those contained in the 1988 National Bituminous 
                        Coal Wage Agreement, or
                            ``(iii) an employer from which 
                        contributions were actually received after 1987 
                        and before July 20, 1992, by the 1950 United 
                        Mine Workers of America Benefit Plan Benefit 
                        Plan or the 1974 United Mine Workers of America 
                        Benefit Plan in connection with employment in 
                        the coal industry during the period covered by 
                        the 1988 National Bituminous Coal Wage 
                        Agreement.
            ``(3) Combined fund.--The term `Combined Fund' means the 
        United Mine Workers of America of America Combined Benefit Fund 
        established under section 9702 of the Internal Revenue Code of 
        1986.
            ``(4) Qualified state.--The term `qualified State' means a 
        State--
                    ``(A) for which a certification is made under 
                subsection 411(a); and
                    ``(B) in which there are no public domain lands, in 
                the case of a State.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of such Act is amended by inserting after the item relating to section 
414 the following:

``415. Use of revenues from Coastal Plain of Alaska.''.

SEC. 204. PROVISIONS RELATING TO THE IMPLEMENTATION OF THIS TITLE.

    (a) Transition Rules.--(1) Amounts allocated under section 
402(g)(2) of the Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1232(g)(2)) (excluding interest) prior to the date of enactment 
of this Act for the program set forth under section 406 of that Act (30 
U.S.C. 1236), but not appropriated prior to such date, shall be 
available in fiscal year 2005 and thereafter for the payments referred 
to in paragraph (1)(A) of section 402(h) of such Act (30 U.S.C. 
1232(h)), as amended by this Act, in the same manner as are other 
amounts available for such payments, to the extent necessary to meet 
the obligations of the Combined Fund (as that term is used in that 
section).
    (2) Notwithstanding any other provision of law, interest credited 
to the fund established by section 401 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1231) that is not transferred to 
the Combined Fund referred to in section 402(h) of such Act (30 U.S.C. 
1232(h)), as amended by this Act, prior to the date of enactment of 
this Act shall be available in fiscal year 2004 and thereafter for the 
payments referred to in paragraph (1)(A) of section 402(h) of such Act 
(30 U.S.C. 1232(h)), as amended by this Act, in the same manner as are 
other amounts available for such payments, to the extent necessary to 
meet the obligations of the Combined Fund.
    (b) Inventory.--Within one year after the date of enactment of this 
Act, the Secretary of the Interior shall complete a review of all 
additions made, pursuant to amendments offered by States and Indians 
tribes after December 31, 1998, to the inventory referred to in section 
403(c) of the Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1233(c)) to ensure that such additions reflect eligible lands 
and waters pursuant to section 404 of such Act (30 U.S.C. 1234) that 
meet the priorities set forth in paragraphs (1) and (2) of section 
403(a) of such Act (30 U.S.C. 1233(a)(1) and (2)), and are correctly 
identified pursuant to such priorities. Any lands or waters that were 
included in the inventory pursuant to the general welfare standard set 
forth in section 403(a) of such Act (30 U.S.C. 1233(a)) before the date 
of enactment of this Act that are determined in the review to no longer 
meet the criteria set forth in paragraphs (1) and (2) of section 403(a) 
of such Act, as amended by this Act, shall be removed from the 
inventory.
    (c) Clarification.--For the purposes of section 528(2) of the 
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1278(2)), 
the term ``government-financed'' shall not include funds made available 
under title IV of such Act.
    (d) Payment of Tribal Allocation.--(1) Notwithstanding any other 
provision of law and by not later than December 31, 2004, the Secretary 
of the Interior shall use amounts allocated under section 402(g)(2) of 
the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1232(g)(2)) (excluding interest) prior to the date of enactment of this 
Act for the program set forth under section 406 of that Act (30 U.S.C. 
1236), but not appropriated prior to such date, to pay an amount 
determined in accordance with paragraph (2) to any Indian tribe that 
has made the certification referred to in section 411 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1240a).
    (2) The payment to an Indian tribe under paragraph (1) shall be 
proportional to the sum of the aggregate unappropriated amount 
allocated to such tribe under section 402(g)(1)(B) of such Act (43 
U.S.C. 1232(g)(1)(B)), and shall be made in lieu of payment of such 
aggregate allocated amount.
    (3) The total amount of payments under this subsection shall be 
$41,502,991.
    (e) Remining.--
            (1) Extension of authority.--Section 511(e) of the Surface 
        Mining Control and Reclamation Act of 1977 (30 U.S.C. 1260(e)) 
        is amended by striking ``2004'' and inserting ``2019''.
            (2) Savings clause.--Except as provided in paragraph (1), 
        nothing in this section shall be considered to modify or amend 
        any provision of law governing coal remining.
    (f) Ensuring Availability of Mineral Leasing Act Revenues.--Section 
949(a)(1) of the Energy Policy Act of 2003 is amended by inserting 
``(A)'' before the first sentence, and by adding at the end the 
following:
            ``(B) Amounts derived from leases issued under the Mineral 
        Leasing Act shall be deposited under subparagraph (A) for a 
        fiscal year only to the extent that amounts derived from leases 
        issued under the Outer Continental Shelf Lands Act and 
        available for such deposit for the fiscal year (after 
        distribution of any such funds as described in subsection (c)) 
        are less than $150,000,000.''.

         TITLE III--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

SEC. 301. WAIVER OF PREMIUMS FOR CERTAIN OPERATORS.

    (a) In General.--Section 9704 of the Internal Revenue Code of 1986 
(relating to liability of assigned operators) is amended by adding at 
the end the following new subsection:
    ``(j) Waiver of Premiums for Certain Operators.--No premium shall 
be required to be paid under this section to the extent of the amount 
of such premium which is paid under section 415 of the Surface Mining 
Control and Reclamation Act of 1977.''.
    (b) Use of Amounts Paid From Abandoned Mine Reclamation Fund.--
Paragraph (2) of section 9705(b) of such Code is amended to read as 
follows:
            ``(2) Use of funds.--Any amount transferred under paragraph 
        (1) for any fiscal year shall be used as provided in such 
        section 402(h) (as in effect on the date of the enactment of 
        the Abandoned Mine Lands Reclamation Reform Act of 2004).''.

SEC. 302. PREPAYMENT OF PREMIUM LIABILITY FOR COAL INDUSTRY HEALTH 
              BENEFITS.

    (a) In General.--Section 9704 of the Internal Revenue Code of 1986 
(relating to liability of assigned operators) is amended by adding at 
the end the following new subsection:
    ``(j) Prepayment of Premium Liability.--
            ``(1) In general.--If--
                    ``(A) a payment meeting the requirements of 
                paragraph (j)(2) is made to the Combined Fund by or on 
                behalf of any assigned operator who is a member of a 
                controlled group of corporations (within the meaning of 
                section 52(a)), or by or on behalf of any related 
                person to any assigned operator within that controlled 
                group of corporations; and
                    ``(B) the common parent of such group is jointly 
                and severally liable for any premium which would (but 
                for this subsection) be required to be paid by any such 
                operator, then no person (other than such common 
                parent) shall be liable for any premium for which any 
                operator within that controlled group of corporations 
                would otherwise be liable.
            ``(2) Requirements.--A payment meets the requirements of 
        this paragraph if--
                    ``(A) the amount of the payment is not less than 
                the present value of the total premium liability of the 
                assigned operator or operators within that controlled 
                group of corporations for its or their assignees under 
                this chapter with respect to the Combined Fund (as 
                determined by the operator's enrolled actuary, as 
                defined in section 7701(a)(35)), using actuarial 
                methods and assumptions each of which is reasonable and 
                which are reasonable in the aggregate, as determined by 
                such enrolled actuary;
                    ``(B) a signed actuarial report is filed with the 
                Secretary of Labor by such enrolled actuary 
                containing--
                            ``(i) the date of the actuarial valuation 
                        applicable to the report; and
                            ``(ii) a statement by the enrolled actuary 
                        signing the report that to the best of the 
                        actuary's knowledge the report is complete and 
                        accurate and that in the actuary's opinion the 
                        actuarial assumptions used are in the aggregate 
                        reasonably related to the experience of the 
                        operator and to reasonable expectations; and
                    ``(C) 30 calendar days have elapsed after the 
                report required by subparagraph (B), and the 
                description required by subparagraph (C), are filed 
                with the Secretary of Labor, and the Secretary of Labor 
                has not notified the assigned operator in writing that 
                the requirements of this paragraph have not been 
                satisfied.
            ``(3) Use of prepayment.--The Combined Fund shall establish 
        and maintain an account for each assigned operator making such 
        payment or on behalf of which such payment was made (with 
        earnings thereon) and use all amounts in such account 
        exclusively to pay premium that would (but for this subsection) 
        be required to be paid by the assigned operator. Upon 
        termination of the obligations for premium liability of any 
        assigned operator for which such account is maintained, all 
        funds remaining in such account (and earnings thereon) shall be 
        refunded to such entity as may be designated by the common 
        parent described in paragraph (1)(B).''.
    (b) Joint and Several Liability of Related Persons.--Section 
9711(c) of such Code is amended to read as follows:
    ``(c) Joint and Several Liability of Related Persons.--
            ``(1) Each related person of a last signatory operator to 
        which subsection (a) or (b) applies shall be jointly and 
        severally liable with the last signatory operator for the 
        provision of health care coverage described in subsection (a) 
        or (b), provided, however, that an assigned operator who is a 
        last signatory operator under section 9711 and a member of a 
        controlled group of corporations (within the meaning of section 
        52(a)) or a related person to any assigned operator within that 
        controlled group of corporations, that has met the requirements 
        of section 9704(j) (1) and (2) and has provided security 
        described in paragraph 9711(c)(2), shall be relieved of all 
        such joint and several liability as of the date upon which such 
        requirements are met, provided, however, that the common parent 
        of such controlled group of corporations shall remain liable 
        for the provision of benefits required to be provided under 
        subsection (a) or (b).
            ``(2) Security meets the requirements of this paragraph 
        if--
                    ``(A) the security (in the form of a bond, letter 
                of credit or cash escrow) is provided to the trustees 
                of the 1992 UMWA Benefit Plan, solely for the purpose 
                of paying premiums for beneficiaries described in 
                section 9712(b)(2)(B), equal in amount to 1 year's 
                liability of the last signatory operator under section 
                9711, determined by using the average cost of such 
                operator's liability during its prior 3 calendar years;
                    ``(B) the security is in addition to any other 
                security required under any other provision of this 
                Act; and
                    ``(C) the security remains in place for 5 years.
            ``(3) Upon termination of the obligations of the last 
        signatory operator providing such security or the expiration of 
        5 years, whichever occurs first, the full amount of such 
        security (and earnings thereon) shall be refunded to the last 
        signatory operator.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 303. DEFINITION OF SUCCESSOR IN INTEREST.

    (a) In General.--Subsection (c) of section 9701 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(8) Successor in interest.--
                    ``(A) Safe harbor.--The term `successor in 
                interest' shall not include any person--
                            ``(i) who is an unrelated person to a 
                        seller; and
                            ``(ii) who purchases for fair market value 
                        assets, or all the stock of a related person, 
                        in a bona fide, arm's-length sale which is 
                        subject to section 5 of the Securities Act of 
                        1933 (15 U.S.C. 77f et seq.) or the Securities 
                        Exchange Act of 1934 (15 U.S.C. 78a et seq.).
                    ``(B) Unrelated person.--The term `unrelated 
                person' means a purchaser who does not bear a 
                relationship to the seller described in section 
                267(b).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to transactions after the date of the enactment of this Act.
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