I 

108TH CONGRESS 

2D SESSION H. R. 4549 

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, to make related technical 

changes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 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, to make related 

technical changes, and for other purposes. 

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

2 This title may be cited as the ‘‘Arctic Coastal Plain 

3 and Surface Mining Improvement Act’’. 

4 TITLE I—OIL AND GAS LEASING 

5 PROGRAM FOR COASTAL 

6 PLAIN OF ALASKA 

7 SEC. 101. SHORT TITLE. 

8 This title may be cited as the ‘‘Arctic Coastal Plain 

9 Domestic Energy Security Act of 2004’’. 

10 SEC. 102. DEFINITIONS. 

11 In this title: 

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

13 Plain’’ means that area identified as such in the 

14 map entitled ‘‘Arctic National Wildlife Refuge’’, 

15 dated August 1980, as referenced in section 1002(b) 

16 of the Alaska National Interest Lands Conservation 

17 Act of 1980 (16 U.S.C. 3142(b)(1)), comprising ap18 proximately 1,549,000 acres, and as described in ap19 pendix I to part 37 of title 50, Code of Federal Reg20 ulations. 

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

22 as otherwise provided, means the Secretary of the 

23 Interior or the Secretary’s designee. 
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1 SEC. 103. LEASING PROGRAM FOR LANDS WITHIN THE 

2 COASTAL PLAIN. 

3 (a) IN GENERAL.—The Secretary shall take such ac4 tions as are necessary— 

5 (1) to establish and implement in accordance 

6 with this Act a competitive oil and gas leasing pro7 gram under the Mineral Leasing Act (30 U.S.C. 181 

8 et seq.) that will result in an environmentally sound 

9 program for the exploration, development, and pro10 duction of the oil and gas resources of the Coastal 

11 Plain; and 

12 (2) to administer the provisions of this title 

13 through regulations, lease terms, conditions, restric14 tions, prohibitions, stipulations, and other provisions 

15 that ensure the oil and gas exploration, development, 

16 and production activities on the Coastal Plain will 

17 result in no significant adverse effect on fish and 

18 wildlife, their habitat, subsistence resources, and the 

19 environment, and including, in furtherance of this 

20 goal, by requiring the application of the best com21 mercially available technology for oil and gas explo22 ration, development, and production to all explo23 ration, development, and production operations 

24 under this title in a manner that ensures the receipt 

25 of fair market value by the public for the mineral re26 sources to be leased. 
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1 (b) REPEAL.—Section 1003 of the Alaska National 

2 Interest Lands Conservation Act of 1980 (16 U.S.C. 

3 3143) is repealed. 

4 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER5 TAIN OTHER LAWS.— 

6 (1) COMPATIBILITY.—For purposes of the Na7 tional Wildlife Refuge System Administration Act of 

8 1966, the oil and gas leasing program and activities 

9 authorized by this section in the Coastal Plain are 

10 deemed to be compatible with the purposes for which 

11 the Arctic National Wildlife Refuge was established, 

12 and that no further findings or decisions are re13 quired to implement this determination. 

14 (2) ADEQUACY OF THE DEPARTMENT OF THE

15 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

16 STATEMENT.—The ‘‘Final Legislative Environ17 mental Impact Statement’’ (April 1987) on the 

18 Coastal Plain prepared pursuant to section 1002 of 

19 the Alaska National Interest Lands Conservation 

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

21 of the National Environmental Policy Act of 1969 

22 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re23 quirements under the National Environmental Policy 

24 Act of 1969 that apply with respect to actions au25 thorized to be taken by the Secretary to develop and 
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1 promulgate the regulations for the establishment of 

2 a leasing program authorized by this title before the 

3 conduct of the first lease sale. 

4 (3) COMPLIANCE WITH NEPA FOR OTHER AC5 TIONS.—Before conducting the first lease sale under 

6 this title, the Secretary shall prepare an environ7 mental impact statement under the National Envi8 ronmental Policy Act of 1969 with respect to the ac9 tions authorized by this title that are not referred to 

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

11 the Secretary is not required to identify nonleasing 

12 alternative courses of action or to analyze the envi13 ronmental effects of such courses of action. The Sec14 retary shall only identify a preferred action for such 

15 leasing and a single leasing alternative, and analyze 

16 the environmental effects and potential mitigation 

17 measures for those two alternatives. The identifica18 tion of the preferred action and related analysis for 

19 the first lease sale under this title shall be completed 

20 within 18 months after the date of the enactment of 

21 this Act. The Secretary shall only consider public 

22 comments that specifically address the Secretary’s 

23 preferred action and that are filed within 20 days 

24 after publication of an environmental analysis. Not25 withstanding any other law, compliance with this 
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1 paragraph is deemed to satisfy all requirements for 

2 the analysis and consideration of the environmental 

3 effects of proposed leasing under this title. 

4 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR5 ITY.—Nothing in this title shall be considered to expand 

6 or limit State and local regulatory authority. 

7 (e) SPECIAL AREAS.— 

8 (1) IN GENERAL.—The Secretary, after con9 sultation with the State of Alaska, the city of 

10 Kaktovik, and the North Slope Borough, may des11 ignate up to a total of 45,000 acres of the Coastal 

12 Plain as a Special Area if the Secretary determines 

13 that the Special Area is of such unique character 

14 and interest so as to require special management 

15 and regulatory protection. The Secretary shall des16 ignate as such a Special Area the Sadlerochit Spring 

17 area, comprising approximately 4,000 acres as de18 picted on the map referred to in section 102(1). 

19 (2) MANAGEMENT.—Each such Special Area 

20 shall be managed so as to protect and preserve the 

21 area’s unique and diverse character including its 

22 fish, wildlife, and subsistence resource values. 

23 (3) EXCLUSION FROM LEASING OR SURFACE

24 OCCUPANCY.—The Secretary may exclude any Spe25 cial Area from leasing. If the Secretary leases a Spe-
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1 cial Area, or any part thereof, for purposes of oil 

2 and gas exploration, development, production, and 

3 related activities, there shall be no surface occu4 pancy of the lands comprising the Special Area. 

5 (4) DIRECTIONAL DRILLING.—Notwithstanding 

6 the other provisions of this subsection, the Secretary 

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

8 terms that permit the use of horizontal drilling tech9 nology from sites on leases located outside the area. 

10 (f) LIMITATION ON CLOSED AREAS.—The Sec11 retary’s sole authority to close lands within the Coastal 

12 Plain to oil and gas leasing and to exploration, develop13 ment, and production is that set forth in this title. 

14 (g) REGULATIONS.— 

15 (1) IN GENERAL.—The Secretary shall pre16 scribe such regulations as may be necessary to carry 

17 out this title, including rules and regulations relating 

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

19 subsistence resources, and environment of the Coast20 al Plain, by no later than 15 months after the date 

21 of the enactment of this Act. 

22 (2) REVISION OF REGULATIONS.—The Sec23 retary shall periodically review and, if appropriate, 

24 revise the rules and regulations issued under sub25 section (a) to reflect any significant biological, envi-
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1 ronmental, or engineering data that come to the Sec2 retary’s attention. 

3 SEC. 104. LEASE SALES. 

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

5 this title to any person qualified to obtain a lease for de6 posits of oil and gas under the Mineral Leasing Act (30 

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

8 (b) PROCEDURES.—The Secretary shall, by regula9 tion, establish procedures for— 

10 (1) receipt and consideration of sealed nomina11 tions for any area in the Coastal Plain for inclusion 

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

13 a lease sale; 

14 (2) the holding of lease sales after such nomina15 tion process; and 

16 (3) public notice of and comment on designa17 tion of areas to be included in, or excluded from, a 

18 lease sale. 

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

20 this title shall be by sealed competitive cash bonus bids. 

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

22 lease sale under this title, the Secretary shall offer for 

23 lease those tracts the Secretary considers to have the 

24 greatest potential for the discovery of hydrocarbons, tak-
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1 ing into consideration nominations received pursuant to 

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

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

4 shall— 

5 (1) conduct the first lease sale under this title 

6 within 22 months after the date of the enactment of 

7 this Act; and 

8 (2) conduct additional sales so long as sufficient 

9 interest in development exists to warrant, in the Sec10 retary’s judgment, the conduct of such sales. 

11 SEC. 105. GRANT OF LEASES BY THE SECRETARY. 

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

13 highest responsible qualified bidder in a lease sale con14 ducted pursuant to section 104 any lands to be leased on 

15 the Coastal Plain upon payment by the lessee of such 

16 bonus as may be accepted by the Secretary. 

17 (b) SUBSEQUENT TRANSFERS.—No lease issued 

18 under this title may be sold, exchanged, assigned, sublet, 

19 or otherwise transferred except with the approval of the 

20 Secretary. Prior to any such approval the Secretary shall 

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

22 the Attorney General. 

23 SEC. 106. LEASE TERMS AND CONDITIONS. 

24 (a) IN GENERAL.—An oil or gas lease issued pursu25 ant to this title shall— 
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1 (1) provide for the payment of a royalty of not 

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

3 production removed or sold from the lease, as deter4 mined by the Secretary under the regulations appli5 cable to other Federal oil and gas leases; 

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

7 seasonal basis, portions of the Coastal Plain to ex8 ploratory drilling activities as necessary to protect 

9 caribou calving areas and other species of fish and 

10 wildlife; 

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

12 Coastal Plain shall be fully responsible and liable for 

13 the reclamation of lands within the Coastal Plain 

14 and any other Federal lands that are adversely af15 fected in connection with exploration, development, 

16 production, or transportation activities conducted 

17 under the lease and within the Coastal Plain by the 

18 lessee or by any of the subcontractors or agents of 

19 the lessee; 

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

21 convey, by contract or otherwise, the reclamation re22 sponsibility and liability to another person without 

23 the express written approval of the Secretary; 

24 (5) provide that the standard of reclamation for 

25 lands required to be reclaimed under this title shall 
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1 be, as nearly as practicable, a condition capable of 

2 supporting the uses which the lands were capable of 

3 supporting prior to any exploration, development, or 

4 production activities, or upon application by the les5 see, to a higher or better use as approved by the Sec6 retary; 

7 (6) contain terms and conditions relating to 

8 protection of fish and wildlife, their habitat, and the 

9 environment as required pursuant to section 

10 103(a)(2); 

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

12 contractors use best efforts to provide a fair share, 

13 as determined by the level of obligation previously 

14 agreed to in the 1974 agreement implementing sec15 tion 29 of the Federal Agreement and Grant of 

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

17 Pipeline, of employment and contracting for Alaska 

18 Natives and Alaska Native Corporations from 

19 throughout the State; 

20 (8) prohibit the export of oil produced under 

21 the lease; and 

22 (9) contain such other provisions as the Sec23 retary determines necessary to ensure compliance 

24 with the provisions of this title and the regulations 

25 issued under this title. 
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1 (b) PROJECT LABOR AGREEMENTS.—The Secretary, 

2 as a term and condition of each lease under this title and 

3 in recognizing the Government’s proprietary interest in 

4 labor stability and in the ability of construction labor and 

5 management to meet the particular needs and conditions 

6 of projects to be developed under the leases issued pursu7 ant to this title and the special concerns of the parties 

8 to such leases, shall require that the lessee and its agents 

9 and contractors negotiate to obtain a project labor agree10 ment for the employment of laborers and mechanics on 

11 production, maintenance, and construction under the 

12 lease. 

13 SEC. 107. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

14 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

15 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

16 The Secretary shall, consistent with the requirements of 

17 section 103, administer the provisions of this title through 

18 regulations, lease terms, conditions, restrictions, prohibi19 tions, stipulations, and other provisions that— 

20 (1) ensure the oil and gas exploration, develop21 ment, and production activities on the Coastal Plain 

22 will result in no significant adverse effect on fish 

23 and wildlife, their habitat, and the environment; 

24 (2) require the application of the best commer25 cially available technology for oil and gas explo-
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1 ration, development, and production on all new ex2 ploration, development, and production operations; 

3 and 

4 (3) ensure that the maximum amount of sur5 face acreage covered by production and support fa6 cilities, including airstrips and any areas covered by 

7 gravel berms or piers for support of pipelines, does 

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

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

10 The Secretary shall also require, with respect to any pro11 posed drilling and related activities, that— 

12 (1) a site-specific analysis be made of the prob13 able effects, if any, that the drilling or related activi14 ties will have on fish and wildlife, their habitat, and 

15 the environment; 

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

17 and mitigate (in that order and to the extent prac18 ticable) any significant adverse effect identified 

19 under paragraph (1); and 

20 (3) the development of the plan shall occur 

21 after consultation with the agency or agencies hav22 ing jurisdiction over matters mitigated by the plan. 

23 (c) REGULATIONS TO PROTECT COASTAL PLAIN

24 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

25 AND THE ENVIRONMENT.—Before implementing the leas-
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1 ing program authorized by this title, the Secretary shall 

2 prepare and promulgate regulations, lease terms, condi3 tions, restrictions, prohibitions, stipulations, and other 

4 measures designed to ensure that the activities undertaken 

5 on the Coastal Plain under this title are conducted in a 

6 manner consistent with the purposes and environmental 

7 requirements of this title. 

8 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI9 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

10 proposed regulations, lease terms, conditions, restrictions, 

11 prohibitions, and stipulations for the leasing program 

12 under this title shall require compliance with all applicable 

13 provisions of Federal and State environmental law and 

14 shall also require the following: 

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

16 and environmental mitigation measures set forth in 

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

18 ‘‘Final Legislative Environmental Impact State19 ment’’ (April 1987) on the Coastal Plain. 

20 (2) Seasonal limitations on exploration, develop21 ment, and related activities, where necessary, to 

22 avoid significant adverse effects during periods of 

23 concentrated fish and wildlife breeding, denning, 

24 nesting, spawning, and migration. 
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1 (3) That exploration activities, except for sur2 face geological studies, be limited to the period be3 tween approximately November 1 and May 1 each 

4 year and that exploration activities shall be sup5 ported by ice roads, winter trails with adequate snow 

6 cover, ice pads, ice airstrips, and air transport meth7 ods, except that such exploration activities may 

8 occur at other times, if the Secretary finds that such 

9 exploration will have no significant adverse effect on 

10 the fish and wildlife, their habitat, and the environ11 ment of the Coastal Plain. 

12 (4) Design safety and construction standards 

13 for all pipelines and any access and service roads, 

14 that— 

15 (A) minimize, to the maximum extent pos16 sible, adverse effects upon the passage of mi17 gratory species such as caribou; and 

18 (B) minimize adverse effects upon the flow 

19 of surface water by requiring the use of cul20 verts, bridges, and other structural devices. 

21 (5) Prohibitions on public access and use on all 

22 pipeline access and service roads. 

23 (6) Stringent reclamation and rehabilitation re24 quirements, consistent with the standards set forth 

25 in this title, requiring the removal from the Coastal 
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1 Plain of all oil and gas development and production 

2 facilities, structures, and equipment upon completion 

3 of oil and gas production operations, except that the 

4 Secretary may exempt from the requirements of this 

5 paragraph those facilities, structures, or equipment 

6 that the Secretary determines would assist in the 

7 management of the Arctic National Wildlife Refuge 

8 and that are donated to the United States for that 

9 purpose. 

10 (7) Appropriate prohibitions or restrictions on 

11 access by all modes of transportation. 

12 (8) Appropriate prohibitions or restrictions on 

13 sand and gravel extraction. 

14 (9) Consolidation of facility siting. 

15 (10) Appropriate prohibitions or restrictions on 

16 use of explosives. 

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

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

19 natural surface drainage patterns, wetlands, and ri20 parian habitats; and the regulation of methods or 

21 techniques for developing or transporting adequate 

22 supplies of water for exploratory drilling. 

23 (12) Avoidance or reduction of air traffic-re24 lated disturbance to fish and wildlife. 
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1 (13) Treatment and disposal of hazardous and 

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

3 muds and cuttings, and domestic wastewater, includ4 ing an annual waste management report, a haz5 ardous materials tracking system, and a prohibition 

6 on chlorinated solvents, in accordance with applica7 ble Federal and State environmental law. 

8 (14) Fuel storage and oil spill contingency plan9 ning. 

10 (15) Research, monitoring, and reporting re11 quirements. 

12 (16) Field crew environmental briefings. 

13 (17) Avoidance of significant adverse effects 

14 upon subsistence hunting, fishing, and trapping by 

15 subsistence users. 

16 (18) Compliance with applicable air and water 

17 quality standards. 

18 (19) Appropriate seasonal and safety zone des19 ignations around well sites, within which subsistence 

20 hunting and trapping shall be limited. 

21 (20) Reasonable stipulations for protection of 

22 cultural and archeological resources. 

23 (21) All other protective environmental stipula24 tions, restrictions, terms, and conditions deemed 

25 necessary by the Secretary. 
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1 (e) CONSIDERATIONS.—In preparing and promul2 gating regulations, lease terms, conditions, restrictions, 

3 prohibitions, and stipulations under this section, the Sec4 retary shall consider the following: 

5 (1) The stipulations and conditions that govern 

6 the National Petroleum Reserve-Alaska leasing pro7 gram, as set forth in the 1999 Northeast National 

8 Petroleum Reserve-Alaska Final Integrated Activity 

9 Plan/Environmental Impact Statement. 

10 (2) The environmental protection standards 

11 that governed the initial Coastal Plain seismic explo12 ration program under parts 37.31 to 37.33 of title 

13 50, Code of Federal Regulations. 

14 (3) The land use stipulations for exploratory 

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

16 forth in Appendix 2 of the August 9, 1983, agree17 ment between Arctic Slope Regional Corporation and 

18 the United States. 

19 (f) FACILITY CONSOLIDATION PLANNING.— 

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

21 providing for public notice and comment, prepare 

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

23 direct the siting and construction of facilities for the 

24 exploration, development, production, and transpor25 tation of Coastal Plain oil and gas resources. 
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1 (2) OBJECTIVES.—The plan shall have the fol2 lowing objectives: 

3 (A) Avoiding unnecessary duplication of fa4 cilities and activities. 

5 (B) Encouraging consolidation of common 

6 facilities and activities. 

7 (C) Locating or confining facilities and ac8 tivities to areas that will minimize impact on 

9 fish and wildlife, their habitat, and the environ10 ment. 

11 (D) Utilizing existing facilities wherever 

12 practicable. 

13 (E) Enhancing compatibility between wild14 life values and development activities. 

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

16 shall— 

17 (1) manage public lands in the Coastal Plain 

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

19 the Alaska National Interest Lands Conservation 

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

21 (2) ensure that local residents shall have rea22 sonable access to public lands in the Coastal Plain 

23 for traditional uses. 

24 SEC. 108. EXPEDITED JUDICIAL REVIEW. 

25 (a) FILING OF COMPLAINT.— 
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1 (1) DEADLINE.—Subject to paragraph (2), any 

2 complaint seeking judicial review of any provision of 

3 this title or any action of the Secretary under this 

4 title shall be filed in any appropriate district court 

5 of the United States— 

6 (A) except as provided in subparagraph 

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

8 date of the action being challenged; or 

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

10 on grounds arising after such period, within 90 

11 days after the complainant knew or reasonably 

12 should have known of the grounds for the com13 plaint. 

14 (2) VENUE.—Any complaint seeking judicial re15 view of an action of the Secretary under this title 

16 may be filed only in the United States Court of Ap17 peals for the District of Columbia. 

18 (3) LIMITATION ON SCOPE OF CERTAIN RE19 VIEW.—Judicial review of a Secretarial decision to 

20 conduct a lease sale under this title, including the 

21 environmental analysis thereof, shall be limited to 

22 whether the Secretary has complied with the terms 

23 of this title and shall be based upon the administra24 tive record of that decision. The Secretary’s identi25 fication of a preferred course of action to enable 
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1 leasing to proceed and the Secretary’s analysis of en2 vironmental effects under this title shall be presumed 

3 to be correct unless shown otherwise by clear and 

4 convincing evidence to the contrary. 

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

6 Secretary with respect to which review could have been 

7 obtained under this section shall not be subject to judicial 

8 review in any civil or criminal proceeding for enforcement. 

9 SEC. 109. FEDERAL AND STATE DISTRIBUTION OF REVE10 NUES. 

11 (a) IN GENERAL.—Notwithstanding any other provi12 sion of law, of the amount of adjusted bonus, rental, and 

13 royalty revenues from oil and gas leasing and operations 

14 authorized under this title— 

15 (1) 50 percent shall be paid to the State of 

16 Alaska; and 

17 (2) except as provided in section 112(d) and 

18 title II, the balance shall be deposited into the 

19 Treasury as miscellaneous receipts. 

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

21 of Alaska under this section shall be made semiannually. 

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

23 (a) EXEMPTION.—Title XI of the Alaska National In24 terest Lands Conservation Act of 1980 (16 U.S.C. 3161 

25 et seq.) shall not apply to the issuance by the Secretary 
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1 under section 28 of the Mineral Leasing Act (30 U.S.C. 

2 185) of rights-of-way and easements across the Coastal 

3 Plain for the transportation of oil and gas. 

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

5 include in any right-of-way or easement referred to in sub6 section (a) such terms and conditions as may be necessary 

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

8 in a significant adverse effect on the fish and wildlife, sub9 sistence resources, their habitat, and the environment of 

10 the Coastal Plain, including requirements that facilities be 

11 sited or designed so as to avoid unnecessary duplication 

12 of roads and pipelines. 

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

14 regulations under section 103(g) provisions granting 

15 rights-of-way and easements described in subsection (a) 

16 of this section. 

17 SEC. 111. CONVEYANCE. 

18 In order to maximize Federal revenues by removing 

19 clouds on title to lands and clarifying land ownership pat20 terns within the Coastal Plain, the Secretary, notwith21 standing the provisions of section 1302(h)(2) of the Alas22 ka National Interest Lands Conservation Act (16 U.S.C. 

23 3192(h)(2)), shall convey— 

24 (1) to the Kaktovik Inupiat Corporation the 

25 surface estate of the lands described in paragraph 1 
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1 of Public Land Order 6959, to the extent necessary 

2 to fulfill the Corporation’s entitlement under section 

3 12 of the Alaska Native Claims Settlement Act (43 

4 U.S.C. 1611) in accordance with the terms and con5 ditions of the Agreement between the Department of 

6 the Interior, the United States Fish and Wildlife 

7 Service, the Bureau of Land Management, and the 

8 Kaktovik Inupiat Corporation effective January 22, 

9 1993; and 

10 (2) to the Arctic Slope Regional Corporation 

11 the remaining subsurface estate to which it is enti12 tled pursuant to the August 9, 1983, agreement be13 tween the Arctic Slope Regional Corporation and the 

14 United States of America. 

15 SEC. 112. LOCAL GOVERNMENT IMPACT AID AND COMMU16 NITY SERVICE ASSISTANCE. 

17 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

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

19 amounts available from the Coastal Plain Local Gov20 ernment Impact Aid Assistance Fund established by 

21 subsection (d) to provide timely financial assistance 

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

23 that are directly impacted by the exploration for or 

24 production of oil and gas on the Coastal Plain under 

25 this title. 
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1 (2) ELIGIBLE ENTITIES.—The North Slope 

2 Borough, Kaktovik, and other boroughs, municipal 

3 subdivisions, villages, and any other community or4 ganized under Alaska State law shall be eligible for 

5 financial assistance under this section. 

6 (b) USE OF ASSISTANCE.—Financial assistance 

7 under this section may be used only for— 

8 (1) planning for mitigation of the potential ef9 fects of oil and gas exploration and development on 

10 environmental, social, cultural, recreational and sub11 sistence values; 

12 (2) implementing mitigation plans and main13 taining mitigation projects; 

14 (3) developing, carrying out, and maintaining 

15 projects and programs that provide new or expanded 

16 public facilities and services to address needs and 

17 problems associated with such effects, including fire18 fighting, police, water, waste treatment, medivac, 

19 and medical services; and 

20 (4) establishment of a coordination office, by 

21 the North Slope Borough, in the City of Kaktovik, 

22 which shall— 

23 (A) coordinate with and advise developers 

24 on local conditions, impact, and history of the 

25 areas utilized for development; and 
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1 (B) provide to the Committee on Resources 

2 of the Senate and the Committee on Energy 

3 and Resources of the Senate an annual report 

4 on the status of coordination between devel5 opers and the communities affected by develop6 ment. 

7 (c) APPLICATION.— 

8 (1) IN GENERAL.—Any community that is eligi9 ble for assistance under this section may submit an 

10 application for such assistance to the Secretary, in 

11 such form and under such procedures as the Sec12 retary may prescribe by regulation. 

13 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

14 community located in the North Slope Borough may 

15 apply for assistance under this section either directly 

16 to the Secretary or through the North Slope Bor17 ough. 

18 (3) APPLICATION ASSISTANCE.—The Secretary 

19 shall work closely with and assist the North Slope 

20 Borough and other communities eligible for assist21 ance under this section in developing and submitting 

22 applications for assistance under this section. 

23 (d) ESTABLISHMENT OF FUND.— 
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1 (1) IN GENERAL.—There is established in the 

2 Treasury the Coastal Plain Local Government Im3 pact Aid Assistance Fund. 

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

5 only for providing financial assistance under this 

6 section. 

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

8 shall be deposited into the fund amounts received by 

9 the United States as revenues derived from rents, 

10 bonuses, and royalties under on leases and lease 

11 sales authorized under this title. 

12 (4) LIMITATION ON DEPOSITS.—The total 

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

14 (5) INVESTMENT OF BALANCES.—The Sec15 retary of the Treasury shall invest amounts in the 

16 fund in interest bearing government securities. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro18 vide financial assistance under this section there is author19 ized to be appropriated to the Secretary from the Coastal 

20 Plain Local Government Impact Aid Assistance Fund 

21 $5,000,000 for each fiscal year. 
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1 TITLE II—ABANDONED MINE 

2 LANDS RECLAMATION REFORM 

3 SEC. 201. SHORT TITLE. 

4 This title may be cited as the ‘‘Abandoned Mine 

5 Lands Reclamation Reform Act of 2004’’. 

6 SEC. 202. AMENDMENTS TO SURFACE MINING ACT. 

7 (a) AMENDMENTS TO SECTION 401.—(1) Section 

8 401 of the Surface Mining Control and Reclamation Act 

9 of 1977 (30 U.S.C. 1231) is amended as follows: 

10 (A) In subsection (c) by striking paragraphs (2) 

11 and (6) and redesignating paragraphs (3) through 

12 (13) in order as paragraphs (2) through (11). 

13 (B) In subsection (e)— 

14 (i) in the second sentence, by striking ‘‘the 

15 needs of such fund’’ and inserting ‘‘achieving 

16 the purposes of the payments under section 

17 402(h)’’; and 

18 (ii) in the third sentence, by inserting be19 fore the period the following: ‘‘for the purpose 

20 of the payments under section 402(h)’’. 

21 (2) Section 712(b) of the Surface Mining Control and 

22 Reclamation Act of 1977 (30 U.S.C. 1302(b)) is amended 

23 by striking ‘‘section 401(c)(11)’’ and inserting ‘‘section 

24 401(c)(9)’’. 
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1 (b) AMENDMENTS TO SECTION 402.—Section 402 of 

2 the Surface Mining Control and Reclamation Act of 1977 

3 (30 U.S.C. 1232) is amended as follows: 

4 (1) In subsection (a)— 

5 (A) by striking ‘‘35’’ and inserting ‘‘28’’; 

6 (B) by striking ‘‘15’’ and inserting ‘‘12’’; 

7 and 

8 (C) by striking ‘‘10 cents’’ and inserting 

9 ‘‘8 cents’’. 

10 (2) In subsection (b) by striking ‘‘2004’’ and all 

11 that follows through the end of the sentence and in12 serting ‘‘2019.’’. 

13 (3) In subsection (g)(1)(D) by striking ‘‘in any 

14 area under paragraph (2), (3), (4), or (5)’’ and in15 serting ‘‘under paragraph (5)’’. 

16 (4) Subsection (g)(2) is amended to read as fol17 lows: 

18 ‘‘(2) In making the grants referred to in para19 graph (1)(C) and the grants referred to in para20 graph (5), the Secretary shall ensure strict compli21 ance by the States and Indian tribes with the prior22 ities set forth in section 403(a) until a certification 

23 is made under section 411(a).’’. 

24 (5) In subsection (g)(3)— 
29 

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1 (A) in the matter preceding subparagraph 

2 (A) by striking ‘‘paragraphs (2) and’’ and in3 serting ‘‘paragraph’’; 

4 (B) in subparagraph (A) by striking 

5 ‘‘401(c)(11)’’ and inserting ‘‘401(c)(9)’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(E) For the purpose of paragraph (8).’’. 

8 (6) In subsection (g)(5)— 

9 (A) by inserting ‘‘(A)’’ before the first sen10 tence; 

11 (B) in the first sentence by striking ‘‘40’’ 

12 and inserting ‘‘60’’; 

13 (C) in the last sentence by striking ‘‘Funds 

14 allocated or expended by the Secretary under 

15 paragraphs (2), (3), or (4),’’ and inserting 

16 ‘‘Funds made available under paragraph (3) or 

17 (4)’’; and 

18 (D) by adding at the end the following: 

19 ‘‘(B) Any amount that is reallocated and available 

20 under section 411(h)(3) shall be in addition to amounts 

21 that are allocated under subparagraph (A).’’. 

22 (7) Subsection (g)(6) is amended to read as fol23 lows: 

24 ‘‘(6)(A) Any State with an approved abandoned mine 

25 reclamation program pursuant to section 405 may receive 
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1 and retain, without regard to the 3-year limitation re2 ferred to in paragraph (1)(D), up to 10 percent of the 

3 total of the grants made annually to such State under 

4 paragraphs (1) and (5) if such amounts are deposited into 

5 an acid mine drainage abatement and treatment fund es6 tablished under State law, from which amounts (together 

7 with all interest earned on such amounts) are expended 

8 by the State for the abatement of the causes and the treat9 ment of the effects of acid mine drainage in a comprehen10 sive manner within qualified hydrologic units affected by 

11 coal mining practices. 

12 ‘‘(B) For the purposes of this paragraph, the term 

13 ‘qualified hydrologic unit’ means a hydrologic unit— 

14 ‘‘(i) in which the water quality has been signifi15 cantly affected by acid mine drainage from coal min16 ing practices in a manner that adversely impacts bi17 ological resources; and 

18 ‘‘(ii) that contains lands and waters that are— 

19 ‘‘(I) eligible pursuant to section 404 and 

20 include any of the priorities set forth in section 

21 403(a); and 

22 ‘‘(II) the subject of expenditures by the 

23 State from the forfeiture of bonds required 

24 under section 509 or from other State sources 

25 to abate and treat acid mine drainage.’’. 
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1 (8) Subsection (g)(7) is amended to read as fol2 lows: 

3 ‘‘(7) In complying with the priorities set forth in sec4 tion 403(a), any State or Indian tribe may use amounts 

5 available in grants made annually to such State or tribe 

6 under paragraphs (1) and (5) for the reclamation of eligi7 ble lands and waters set forth in section 403(a)(3) prior 

8 to the completion of reclamation projects under para9 graphs (1) and (2) of section 403(a) only if the expendi10 ture of funds for such reclamation is done in conjunction 

11 with the expenditure of funds for reclamation projects 

12 under paragraphs (1) and (2) of section 403(a).’’. 

13 (9) Subsection (g)(8) is amended to read as fol14 lows: 

15 ‘‘(8) In making the grants referred to in paragraph 

16 (1)(C), the Secretary, using amounts allocated to a State 

17 or Indian tribe under subparagraphs (A) or (B) of para18 graph (1) or as necessary amounts available to the Sec19 retary under paragraph (3), shall assure total grant 

20 awards of not less than $2,000,000 annually to each 

21 State, including Tennessee, and each Indian tribe.’’. 

22 (10) By amending subsection (h) to read as fol23 lows: 

24 ‘‘(h) PAYMENT OF FUNDS FOR BENEFIT PAY25 MENTS.— 
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1 ‘‘(1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, at the beginning of each fis3 cal year, the Secretary of the Interior shall pay from 

4 the fund— 

5 ‘‘(A) the amount described in paragraph 

6 (3) for such year to the Combined Fund, 

7 ‘‘(B) the amount described in paragraph 

8 (4) for such year to the 1992 Plan, and 

9 ‘‘(C) the amount described in paragraph 

10 (5) for such year to the 1993 Plan. 

11 ‘‘(2) PAYMENTS MAY NOT EXCEED AGGREGATE

12 INTEREST RECEIVED BY FUND.—The aggregate 

13 amount paid under paragraph (1) for any fiscal year 

14 shall not exceed the lesser of— 

15 ‘‘(A) the excess of— 

16 ‘‘(i) the aggregate interest received by 

17 the fund during all preceding fiscal years, 

18 over 

19 ‘‘(ii) the aggregate payments made 

20 under paragraph (1) for all preceding fis21 cal years, or 

22 ‘‘(B) the unobligated balance of the fund 

23 as of the close of the preceding fiscal year. 

24 ‘‘(3) PAYMENTS TO COMBINED FUND.— 
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1 ‘‘(A) IN GENERAL.—The amount described 

2 in this paragraph for any fiscal year is an 

3 amount equal to the sum of— 

4 ‘‘(i) the estimated expenditures to be 

5 debited against the unassigned bene6 ficiaries premium account under section 

7 9704(e) of the Internal Revenue Code of 

8 1986 for such fiscal year, plus 

9 ‘‘(ii) the estimated amount needed to 

10 offset the amount of any deficit (as of the 

11 close of the preceding fiscal year) in net 

12 assets in the Combined Fund. 

13 ‘‘(B) CERTAIN PRE-2001 PREMIUMS.— 

14 ‘‘(i) IN GENERAL.—The amount de15 scribed in this paragraph (without regard 

16 to this subparagraph) for fiscal year 2004 

17 shall be increased by $36,000,000. 

18 ‘‘(ii) REFUNDS.—Not later than Jan19 uary 31, 2005, the trustees of the Com20 bined Fund shall pay to each coal industry 

21 operator described in clause (iii) (and to 

22 each related person with respect to such an 

23 operator) an amount equal to the aggre24 gate amount paid by such operator (or 

25 such related person) to the Combined 
34 

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1 Fund on or before September 7, 2000, and 

2 not previously refunded or credited, plus 

3 interest on such amount calculated at the 

4 rate of 7.5 percent per year. The aggregate 

5 amount paid under this subparagraph shall 

6 not exceed $36,000,000. 

7 ‘‘(iii) COAL INDUSTRY OPERATOR DE8 SCRIBED.—A coal industry operator is de9 scribed in this clause if— 

10 ‘‘(I) the operator’s beneficiary as11 signments have been voided by the 

12 Commissioner of the Social Security 

13 Administration; and 

14 ‘‘(II) the operator brought an ac15 tion prior to September 7, 2000, 

16 claiming that the assignment of bene17 ficiaries under section 9706 of the In18 ternal Revenue Code of 1986 was un19 constitutional as applied to such oper20 ator and received a final judgment or 

21 final settlement against such claim. 

22 ‘‘(4) PAYMENTS TO 1992 PLAN.—The amount 

23 described in this paragraph for any fiscal year is an 

24 amount equal to the excess of— 
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1 ‘‘(A) the estimated expenditures from the 

2 1992 Plan during such fiscal year to provide 

3 benefits required under section 9712(c) of such 

4 Code, over 

5 ‘‘(B) the estimated receipts of the 1992 

6 Plan for such fiscal year from payments re7 quired under paragraphs (1)(B) and (3) of sec8 tion 9712(d) of such Code and from any secu9 rity provided to the 1992 Plan pursuant to sec10 tion 9712(d)(1)(C) of such Code that is avail11 able for use in the provision of benefits. 

12 ‘‘(5) PAYMENTS TO 1993 PLAN.— 

13 ‘‘(A) IN GENERAL.—The amount described 

14 in this paragraph for any fiscal year is an 

15 amount equal to the excess of— 

16 ‘‘(i) the estimated expenditures from 

17 the 1993 Plan during such fiscal year to 

18 continue to provide benefits at levels no 

19 greater than those in effect on the date of 

20 enactment of this paragraph, under the eli21 gibility criteria in effect on the date of en22 actment of this paragraph, over 

23 ‘‘(ii) the estimated income of the 1993 

24 Plan for such fiscal year. 
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•HR 4549 IH 

1 ‘‘(B) LIMITATION.—A payment shall not 

2 be made under this paragraph for any fiscal 

3 year unless the entities that are obligated as of 

4 the beginning of such fiscal year to contribute 

5 to the 1993 Plan remain obligated throughout 

6 such year to make such contributions at rates 

7 that are no less than those in effect on the date 

8 of enactment of this paragraph. 

9 ‘‘(6) REFUNDS OF 2004 PREMIUMS, ETC.—Not 

10 later than December 1, 2004, the Secretary of the 

11 Interior shall pay from the fund to each specified 

12 person (as defined in section 415(d)(2)) an amount 

13 equal to the amount of premiums or assigned oper14 ator contributions paid by such person for fiscal year 

15 2004. 

16 ‘‘(7) ORDERING RULES WHERE SPECIFIED PAY17 MENTS EXCEED LIMITATION.— 

18 ‘‘(A) IN GENERAL.—Amounts shall be paid 

19 under paragraphs (4), (5), or (6) for any fiscal 

20 year only to the extent that the limitation under 

21 paragraph (2) for such year exceeds the sum 

22 of— 

23 ‘‘(i) the estimated payments to be 

24 made under paragraph (3) for such year, 

25 and 
37 

•HR 4549 IH 

1 ‘‘(ii) the estimated payments to be 

2 made under paragraph (3) for the suc3 ceeding fiscal year. 

4 ‘‘(B) PROPORTIONAL REDUCTION.—Pay5 ments under paragraphs (4), (5), and (6) shall 

6 be proportionally reduced to the extent the full 

7 amount of such payments may not be made by 

8 reason of subparagraph (A). 

9 ‘‘(8) ESTIMATES AND ADJUSTMENTS.— 

10 ‘‘(A) ESTIMATES.—Estimated amounts 

11 with respect to any fund or plan shall be made 

12 by the trustees thereof. 

13 ‘‘(B) ADJUSTMENTS.—If, for any fiscal 

14 year, the amount paid under paragraph (3), 

15 (4), or (5) is more or less than the amount re16 quired to be paid, the Secretary of the Interior 

17 shall appropriately adjust the amount paid 

18 under that paragraph for the next fiscal year. 

19 ‘‘(9) DEFINITIONS.—For purposes of this sub20 section— 

21 ‘‘(A) COMBINED FUND.—The term ‘Com22 bined Fund’ means the United Mine Workers of 

23 America Combined Benefit Fund established 

24 under section 9702 of the Internal Revenue 

25 Code of 1986. 
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1 ‘‘(B) 1992 PLAN.—The term ‘1992 Plan’ 

2 means the United Mine Workers of America 

3 1992 Benefit Plan established under section 

4 9712 of such Code. 

5 ‘‘(C) 1993 PLAN.—The term ‘1993 Plan’ 

6 means the multiemployer health benefit plan es7 tablished after July 20, 1992, by the persons 

8 referred to in section 9701(b)(2) of such Code. 

9 ‘‘(10) COORDINATION WITH PREMIUM RE10 LIEF.— 

11 ‘‘(A) IN GENERAL.—Payments shall be 

12 made under this subsection for any fiscal year 

13 only if the Secretary reasonably expects that no 

14 premium will be required to be paid during 

15 such year under section 9704 of the Internal 

16 Revenue Code of 1986 by reason of payments 

17 under section 415(c)(3) of this Act. 

18 ‘‘(B) RESTORATION OF PRIOR TRANSFER

19 RULES WHEN PREMIUM RELIEF CEASES.—If 

20 fees are required to be paid under this section 

21 with respect to any fiscal year for which pay22 ments may not be made under this subsection 

23 by reason of subparagraph (A), the Secretary 

24 shall, as of the beginning of such fiscal year 

25 and before any allocation under subsection (g), 
39 

•HR 4549 IH 

1 make the transfer provided in subparagraph 

2 (C). 

3 ‘‘(C) TRANSFER TO COMBINED FUND.— 

4 The Secretary shall transfer from the fund to 

5 the United Mine Workers of America Combined 

6 Benefit Fund established under section 9702 of 

7 the Internal Revenue Code of 1986 for any fis8 cal year an amount equal to the sum of— 

9 ‘‘(i) the amount of the interest which 

10 the Secretary estimates will be earned and 

11 paid to the Fund during the fiscal year, 

12 plus 

13 ‘‘(ii) the amount by which the amount 

14 described in clause (i) is less than 

15 $70,000,000. 

16 ‘‘(D)(i) The aggregate amount which may 

17 be transferred under subparagraph (C) for any 

18 fiscal year shall not exceed the amount of ex19 penditures which the trustees of the Combined 

20 Fund estimate will be debited against the unas21 signed beneficiaries premium account under 

22 section 9704(e) of the Internal Revenue Code of 

23 1986 for the fiscal year of the Combined Fund 

24 in which the transfer is made. 
40 

•HR 4549 IH 

1 ‘‘(ii) The aggregate amount which may be 

2 transferred under subparagraph (C)(ii) for all 

3 fiscal years shall not exceed an amount equiva4 lent to all interest earned and paid to the fund 

5 after September 30, 1992, and before October 

6 1, 1995. 

7 ‘‘(E) If, for any fiscal year, the amount 

8 transferred is more or less than the amount re9 quired to be transferred, the Secretary shall ap10 propriately adjust the amount transferred for 

11 the next fiscal year.’’ 

12 (c) AMENDMENTS TO SECTION 403.—Section 403 of 

13 the Surface Mining Control and Reclamation Act of 1977 

14 (30 U.S.C. 1233(a)) is amended as follows: 

15 (1) In subsection (a)— 

16 (A) in paragraph (1) by striking ‘‘general 

17 welfare,’’; 

18 (B) in paragraph (2) by striking ‘‘health, 

19 safety, and general welfare’’ and inserting 

20 ‘‘health and safety’’, and inserting ‘‘and’’ after 

21 the semicolon at the end; 

22 (C) in paragraph (3) by striking the semi23 colon at the end and inserting a period; and 

24 (D) by striking paragraphs (4) and (5). 

25 (2) In subsection (b)— 
41 

•HR 4549 IH 

1 (A) by striking the heading and inserting 

2 ‘‘Water Supply Restoration.—’’; and 

3 (B) in paragraph (1) by striking ‘‘up to 30 

4 percent of the’’. 

5 (3) In subsection (c) by inserting ‘‘, subject to 

6 the approval of the Secretary,’’ after ‘‘amendments’’. 

7 (d) AMENDMENT TO SECTION 406.—Section 406(h) 

8 of the Surface Mining Control and Reclamation Act of 

9 1977 (30 U.S.C. 1236(h)) is amended by striking ‘‘Soil 

10 Conservation Service’’ and inserting ‘‘Natural Resources 

11 Conservation Service’’. 

12 (e) FURTHER AMENDMENT TO SECTION 406.—Sec13 tion 406 of the Surface Mining Control and Reclamation 

14 Act of 1977 (30 U.S.C. 1236) is amended by adding at 

15 the end the following: 

16 ‘‘(i) There is authorized to be appropriated to the 

17 Secretary of Agriculture, from amounts in the Treasury 

18 other than amounts in the fund, such sums as may be 

19 necessary to carry out this section.’’. 

20 (f) AMENDMENT TO SECTION 408.—Section 408(a) 

21 of the Surface Mining Control and Reclamation Act of 

22 1977 (30 U.S.C. 1238) is amended by striking ‘‘who 

23 owned the surface prior to May 2, 1977, and’’. 
42 

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1 (g) AMENDMENTS TO SECTION 411.—Section 411 of 

2 the Surface Mining Control and Reclamation Act of 1977 

3 (30 U.S.C. 1240a) is amended as follows: 

4 (1) In subsection (a) by inserting ‘‘(1)’’ before 

5 the first sentence, and by adding at the end the fol6 lowing: 

7 ‘‘(2) The Secretary may, on the Secretary’s own voli8 tion, make the certification referred to in paragraph (1) 

9 on behalf of any State or Indian tribe referred to in para10 graph (1) if on the basis of the inventory referred to in 

11 section 403(c) all reclamation projects relating to the pri12 orities set forth in section 403(a) for eligible lands and 

13 water pursuant to section 404 in such State or tribe have 

14 been completed. The Secretary shall only make such cer15 tification after notice in the Federal Register and oppor16 tunity for public comment.’’. 

17 (2) By adding at the end the following: 

18 ‘‘(h) STATE SHARE FOR CERTAIN CERTIFIED

19 STATES.—(1)(A) From moneys referred to in subsection 

20 (a) of section 35 of the Mineral Leasing Act (30 U.S.C. 

21 191(a)) that are paid into the Treasury after the date of 

22 the enactment of this subsection and that are not paid 

23 to States under section 35 of the Mineral Leasing Act or 

24 reserved as part of the reclamation fund under such sec25 tion, the Secretary of the Interior shall pay to each quali-
43 

•HR 4549 IH 

1 fied State, on a proportional basis, an amount equal to 

2 the sum of the aggregate unappropriated amount allocated 

3 to such qualified State under section 402(g)(1)(A). 

4 ‘‘(B) In this paragraph the term ‘qualified State’ 

5 means a State for which a certification is made under sub6 section (a) and in which there are public domain lands 

7 available for leasing under the Mineral Leasing Act (30 

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

9 ‘‘(2) Payments to States under this subsection shall 

10 be made, without regard to any limitation in section 

11 401(d), in the same manner as if paid under section 35 

12 of the Mineral Leasing Act (30 U.S.C. 191) and concur13 rently with payments to States under that section. The 

14 funds distributed under this section shall be referred to 

15 as the ‘Cubin-Thomas Mineral Fund’. 

16 ‘‘(3) The amount allocated to any State under section 

17 402(g)(1)(A) that is paid to such State as a result of a 

18 payment under paragraph (1) of this subsection shall be 

19 reallocated and available for grants under section 

20 402(g)(5).’’. 

21 SEC. 203. USE OF REVENUES FROM COASTAL PLAIN. 

22 (a) USE OF REVENUES.—Title IV of the Surface 

23 Mining Control and Reclamation Act of 1977 (30 U.S.C. 

24 1231 et seq.) is amended by adding at the end the fol25 lowing: 
44 

•HR 4549 IH 

1 ‘‘SEC. 415. USE OF REVENUES FROM COASTAL PLAIN OF 

2 ALASKA. 

3 ‘‘(a) COAL MINING FAIRNESS FUND.—There is es4 tablished in the Treasury a separate account to be known 

5 as the ‘Coal Mining Fairness Fund’ (hereafter in this sec6 tion referred to as the ‘Account’). 

7 ‘‘(b) APPROPRIATIONS TO ACCOUNT.— 

8 ‘‘(1) IN GENERAL.—There are hereby appro9 priated to the Account amounts equivalent to the 

10 amounts received by the United States as bonuses, 

11 rents, or royalties from the exploration, development, 

12 and production of the oil and gas resources of the 

13 Coastal Plain, that are not required to be otherwise 

14 paid or deposited under section 109(a) or 112(d) of 

15 the Arctic Coastal Plain Domestic Energy Security 

16 Act of 2004. 

17 ‘‘(2) REPAYABLE ADVANCES.— 

18 ‘‘(A) IN GENERAL.—There are hereby ap19 propriated to the Account for each fiscal year 

20 as a repayable advance an amount equal to the 

21 excess (if any) of— 

22 ‘‘(i) the expenditures required under 

23 subsection (c) for such year, over 

24 ‘‘(ii) the amount appropriated by 

25 paragraph (1) for such year. 

26 ‘‘(B) REPAYMENT OF ADVANCES.— 
45 

•HR 4549 IH 

1 ‘‘(i) IN GENERAL.—Advances made to 

2 the Account shall be repaid, and interest 

3 on such advances shall be paid, to the gen4 eral fund of the Treasury when the Sec5 retary of the Interior determines that mon6 eys are available for such purposes in the 

7 Account. 

8 ‘‘(ii) FINAL REPAYMENT.—No ad9 vance shall be made to the Account after 

10 December 31, 2007, and all advances to 

11 the Account shall be repaid on or before 

12 September 30, 2009. 

13 ‘‘(C) RATE OF INTEREST.—Interest on ad14 vances made to the Account shall be at a rate 

15 determined by the Secretary of the Treasury 

16 (as of the close of the calendar month preceding 

17 the month in which the advance is made) to be 

18 equal to the current average market yield on 

19 outstanding marketable obligations of the 

20 United States with remaining periods to matu21 rity comparable to the anticipated period during 

22 which the advance will be outstanding and shall 

23 be compounded annually. 

24 ‘‘(c) EXPENDITURES.— 
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1 ‘‘(1) COMBINED FUND.—The Secretary of the 

2 Interior shall pay from the Account to the Combined 

3 Fund amounts necessary (after the payments under 

4 section 402(h)) to meet the obligations of the Com5 bined Fund. 

6 ‘‘(2) REFUNDS OF 2004 PREMIUMS, ETC.—Not 

7 later than December 1, 2004, the Secretary of the 

8 Interior shall pay from the Account to each specified 

9 person an amount equal to the amount of premiums 

10 or assigned operator contributions paid by such per11 son for fiscal year 2004 to the extent such premiums 

12 and contributions have not been refunded under sec13 tion 402(h)(6). 

14 ‘‘(3) PREMIUMS, ETC. OTHERWISE PAYABLE

15 AFTER 2004.— 

16 ‘‘(A) IN GENERAL.—At the beginning of 

17 each fiscal year after fiscal year 2004, the Sec18 retary of the Interior shall pay from the Ac19 count to the Combined Fund an amount equal 

20 to the amount of premiums or assigned oper21 ator contributions which would (but for sub22 paragraph (B)) be required to be paid by speci23 fied persons for such fiscal year. 

24 ‘‘(B) WAIVER OF LIABILITY.—For waiver 

25 of liability for amounts paid under subpara-
47 

•HR 4549 IH 

1 graph (A), see section 9704(j) of the Internal 

2 Revenue Code of 1986. 

3 ‘‘(4) 1992 PLAN.—The Secretary of the Interior 

4 shall pay from the Account to the 1992 Plan (as de5 fined in section 402(h)) amounts necessary (after 

6 the appropriations under section 402(h)) to pay the 

7 amounts described in section 402(h)(4). 

8 ‘‘(5) 1993 PLAN.—The Secretary of the Interior 

9 shall pay from the Account to the 1993 Plan 

10 amounts necessary (after the appropriations under 

11 section 402(h)) to pay the amounts described in sec12 tion 402(h)(5). 

13 ‘‘(6) QUALIFIED STATES.— 

14 ‘‘(A) IN GENERAL.—The Secretary of the 

15 Interior shall pay from the Account to each 

16 qualified State an amount equal to the sum of 

17 the aggregate unappropriated amount allocated 

18 to such qualified State under subparagraph (A) 

19 or (B), as applicable, of section 402(g)(1). 

20 ‘‘(B) REALLOCATION.—The amount allo21 cated to any qualified State under section 

22 402(g)(1) that is paid to such qualified State as 

23 a result of a payment under subparagraph (A) 

24 shall be reallocated and available for grants 

25 under section 402(g)(5). 
48 

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1 ‘‘(d) DEFINITIONS.—For purposes of this section— 

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

3 Plain’ has the meaning given that term in section 

4 102 of the Arctic Coastal Plain Domestic Energy 

5 Security Act of 2004. 

6 ‘‘(2) SPECIFIED PERSON.—The term ‘specified 

7 person’ means an assigned operator (as defined in 

8 section 9701(c)(5) of the Internal Revenue Code of 

9 1986), a related person of such assigned operator, 

10 and a successor-in-interest of such operator or per11 son, if according to the records of the Combined 

12 Fund such assigned operator— 

13 ‘‘(A) was assessed or is otherwise liable for 

14 premiums to the Combined Fund in October 

15 2001, and 

16 ‘‘(B) was not— 

17 ‘‘(i) a signatory to the 1988 or any 

18 later National Bituminous Coal Wage 

19 Agreement, 

20 ‘‘(ii) a signatory to an agreement 

21 (other than the National Coal Mine Con22 struction Agreement or the Coal Haulers’ 

23 Agreement) containing pension and health 

24 care contribution and benefit provisions 

25 that are identical to those contained in the 
49 

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1 1988 National Bituminous Coal Wage 

2 Agreement, or 

3 ‘‘(iii) an employer from which con4 tributions were actually received after 

5 1987 and before July 20, 1992, by the 

6 1950 United Mine Workers of America 

7 Benefit Plan Benefit Plan or the 1974 

8 United Mine Workers of America Benefit 

9 Plan in connection with employment in the 

10 coal industry during the period covered by 

11 the 1988 National Bituminous Coal Wage 

12 Agreement. 

13 ‘‘(3) COMBINED FUND.—The term ‘Combined 

14 Fund’ means the United Mine Workers of America 

15 of America Combined Benefit Fund established 

16 under section 9702 of the Internal Revenue Code of 

17 1986. 

18 ‘‘(4) QUALIFIED STATE.—The term ‘qualified 

19 State’ means a State— 

20 ‘‘(A) for which a certification is made 

21 under subsection 411(a); and 

22 ‘‘(B) in which there are no public domain 

23 lands, in the case of a State.’’. 
50 

•HR 4549 IH 

1 (b) CLERICAL AMENDMENT.—The table of contents 

2 in the first section of such Act is amended by inserting 

3 after the item relating to section 414 the following: 

‘‘415. Use of revenues from Coastal Plain of Alaska.’’. 

4 SEC. 204. PROVISIONS RELATING TO THE IMPLEMENTA5 TION OF THIS TITLE. 

6 (a) TRANSITION.—(1) Amounts allocated under sec7 tion 402(g)(2) of the Surface Mining Control and Rec8 lamation Act of 1977 (30 U.S.C. 1232(g)(2)) (excluding 

9 interest) prior to the date of enactment of this Act for 

10 the program set forth under section 406 of that Act (30 

11 U.S.C. 1236), but not appropriated prior to such date, 

12 shall be available in fiscal year 2005 and thereafter for 

13 the payments referred to in section 402(h)(1) of such Act 

14 (30 U.S.C. 1232(h)), as amended by this Act, in the same 

15 manner as are other amounts available for such payments. 

16 (2) Notwithstanding any other provision of law, inter17 est credited to the fund established by section 401 of the 

18 Surface Mining Control and Reclamation Act of 1977 (30 

19 U.S.C. 1231) that is not transferred to the Combined 

20 Fund referred to in section 402(h) of such Act (30 U.S.C. 

21 1232(h)), as amended by this Act, prior to the date of 

22 enactment of this Act shall be available in fiscal year 2004 

23 and thereafter for the payments referred to in section 

24 402(h)(1) of such Act (30 U.S.C. 1232(h)), as amended 
51 

•HR 4549 IH 

1 by this Act, in the same manner as are other amounts 

2 available for such payments. 

3 (3) Amounts shall be available as provided in para4 graphs (1) and (2) only to the extent that the amounts 

5 payable under section 402(h)(1) of such Act without re6 gard to the limitation in section 402(h)(2) of such Act 

7 exceed such limitation. 

8 (4) Amounts shall be available as provided in para9 graphs (1) and (2) for any fiscal year only if the Secretary 

10 of the Interior reasonably expects that no premium will 

11 be required to be paid during such year under section 

12 9704 of the Internal Revenue Code of 1986 by reason of 

13 payments under section 415(c)(3) of this Act. 

14 (b) INVENTORY.—Within one year after the date of 

15 enactment of this Act, the Secretary of the Interior shall 

16 complete a review of all additions made, pursuant to 

17 amendments offered by States and Indian tribes after De18 cember 31, 1998, to the inventory referred to in section 

19 403(c) of the Surface Mining Control and Reclamation 

20 Act of 1977 (30 U.S.C. 1233(c)) to ensure that such addi21 tions reflect eligible lands and waters pursuant to section 

22 404 of such Act (30 U.S.C. 1234) that meet the priorities 

23 set forth in paragraphs (1) and (2) of section 403(a) of 

24 such Act (30 U.S.C. 1233(a)(1) and (2)), and are cor25 rectly identified pursuant to such priorities. Any lands or 
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1 waters that were included in the inventory pursuant to the 

2 general welfare standard set forth in section 403(a) of 

3 such Act (30 U.S.C. 1233(a)) before the date of enact4 ment of this Act that are determined in the review to no 

5 longer meet the criteria set forth in paragraphs (1) and 

6 (2) of section 403(a) of such Act, as amended by this Act, 

7 shall be removed from the inventory. 

8 (c) CLARIFICATION.—For the purposes of section 

9 528(2) of the Surface Mining Control and Reclamation 

10 Act of 1977 (30 U.S.C. 1278(2)), the term ‘‘government11 financed’’ shall not include funds made available under 

12 title IV of such Act. 

13 (d) PAYMENT OF TRIBAL.—(1) Notwithstanding any 

14 other provision of law and by not later than December 

15 31, 2004, the Secretary of the Interior shall use amounts 

16 allocated under section 402(g)(2) of the Surface Mining 

17 Control and Reclamation Act of 1977 (30 U.S.C. 

18 1232(g)(2)) (excluding interest) prior to the date of enact19 ment of this Act for the program set forth under section 

20 406 of that Act (30 U.S.C. 1236), but not appropriated 

21 prior to such date, to pay an amount determined in ac22 cordance with paragraph (2) to any Indian tribe that has 

23 made the certification referred to in section 411 of the 

24 Surface Mining Control and Reclamation Act of 1977 (30 

25 U.S.C. 1240a). 
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1 (2) The payment to an Indian tribe under paragraph 

2 (1) shall not exceed the aggregate unappropriated amount 

3 allocated to such tribe under section 402(g)(1)(B) of such 

4 Act (43 U.S.C. 1232(g)(1)(B)) as of the date of the enact5 ment of this Act, and shall be made in lieu of payment 

6 of such aggregate allocated amount. 

7 (e) REMINING.— 

8 (1) EXTENSION OF AUTHORITY.—Section 

9 511(e) of the Surface Mining Control and Reclama10 tion Act of 1977 (30 U.S.C. 1260(e)) is amended by 

11 striking ‘‘2004’’ and inserting ‘‘2019’’. 

12 (2) SAVINGS CLAUSE.—Except as provided in 

13 paragraph (1), nothing in this section shall be con14 sidered to modify or amend any provision of law gov15 erning coal remining. 

16 (f) ENSURING AVAILABILITY OF MINERAL LEASING

17 ACT REVENUES.—Section 949(a)(1) of the Energy Policy 

18 Act of 2004 is amended by inserting ‘‘(A)’’ before the first 

19 sentence, and by adding at the end the following: 

20 ‘‘(B) Amounts derived from leases issued under 

21 the Mineral Leasing Act shall be deposited under 

22 subparagraph (A) for a fiscal year only to the extent 

23 that amounts derived from leases issued under the 

24 Outer Continental Shelf Lands Act and available for 

25 such deposit for the fiscal year (after distribution of 
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1 any such funds as described in subsection (c)) are 

2 less than $150,000,000.’’. 

3 TITLE III—AMENDMENTS OF IN4 TERNAL REVENUE CODE OF 

5 1986 

6 SEC. 301. WAIVER OF PREMIUMS FOR CERTAIN OPERA7 TORS. 

8 (a) IN GENERAL.—Section 9704 of the Internal Rev9 enue Code of 1986 (relating to liability of assigned opera10 tors) is amended by adding after subsection (i) the fol11 lowing new subsection: 

12 ‘‘(j) WAIVER OF PREMIUMS FOR CERTAIN OPERA13 TORS.—No premium shall be required to be paid under 

14 this section to the extent of the amount of such premium 

15 which is paid under section 415 of the Surface Mining 

16 Control and Reclamation Act of 1977.’’ 

17 (b) USE OF AMOUNTS PAID FROM ABANDONED

18 MINE RECLAMATION FUND.—Paragraph (2) of section 

19 9705(b) of such Code is amended to read as follows: 

20 ‘‘(2) USE OF FUNDS.—Any amount transferred 

21 under paragraph (1) for any fiscal year shall be used 

22 as provided in such section 402(h) (as in effect on 

23 the date of the enactment of the Abandoned Mine 

24 Lands Reclamation Reform Act of 2004).’’. 
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1 SEC. 302. PREPAYMENT OF PREMIUM LIABILITY FOR COAL 

2 INDUSTRY HEALTH BENEFITS. 

3 (a) IN GENERAL.—Section 9704 of the Internal Rev4 enue Code of 1986 (relating to liability of assigned opera5 tors) is amended by adding at the end the following new 

6 subsection: 

7 ‘‘(k) PREPAYMENT OF PREMIUM LIABILITY.— 

8 ‘‘(1) IN GENERAL.—If— 

9 ‘‘(A) a payment meeting the requirements 

10 of paragraph (2) is made to the Combined 

11 Fund— 

12 ‘‘(i) by or on behalf of any assigned 

13 operator which is a member of a controlled 

14 group of corporations (within the meaning 

15 of section 52(a)) the common parent of 

16 which is a corporation the shares of which 

17 are publicly traded on a United States ex18 change, or 

19 ‘‘(ii) by or on behalf of any related 

20 person to any assigned operator within 

21 that controlled group of corporations, and 

22 ‘‘(B) the common parent of such group is 

23 jointly and severally liable for any premium 

24 which would (but for this subsection) be re25 quired to be paid by any such operator, 
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1 then no person (other than such common parent) 

2 shall be liable for any premium for which any oper3 ator within that controlled group of corporations 

4 would otherwise be liable. 

5 ‘‘(2) REQUIREMENTS.—A payment meets the 

6 requirements of this paragraph if— 

7 ‘‘(A) the amount of the payment is not less 

8 than the present value of the total premium li9 ability of the assigned operator or operators 

10 within that controlled group of corporations for 

11 its or their assignees under this chapter with 

12 respect to the Combined Fund (as determined 

13 by the operator’s enrolled actuary, as defined in 

14 section 7701(a)(35)), using actuarial methods 

15 and assumptions each of which is reasonable 

16 and which are reasonable in the aggregate, as 

17 determined by such enrolled actuary; 

18 ‘‘(B) a signed actuarial report is filed with 

19 the Secretary of Labor by such enrolled actuary 

20 containing— 

21 ‘‘(i) the date of the actuarial valuation 

22 applicable to the report; and 

23 ‘‘(ii) a statement by the enrolled actu24 ary signing the report that to the best of 

25 the actuary’s knowledge the report is com-
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1 plete and accurate and that in the actu2 ary’s opinion the actuarial assumptions 

3 used are in the aggregate reasonably re4 lated to the experience of the operator and 

5 to reasonable expectations; and 

6 ‘‘(C) 30 calendar days have elapsed after 

7 the report required by subparagraph (B) is filed 

8 with the Secretary of Labor, and the Secretary 

9 of Labor has not notified the assigned operator 

10 in writing that the requirements of this para11 graph have not been satisfied. 

12 ‘‘(3) USE OF PREPAYMENT.—The Combined 

13 Fund shall establish and maintain an account for 

14 each assigned operator making such payment or on 

15 behalf of which such payment was made (with earn16 ings thereon) and use all amounts in such account 

17 exclusively to pay premiums that would (but for this 

18 subsection) be required to be paid by the assigned 

19 operator. Upon termination of the obligations for 

20 premium liability of any assigned operator for which 

21 such account is maintained, all funds remaining in 

22 such account (and earnings thereon) shall be re23 funded to such entity as may be designated by the 

24 common parent described in paragraph (1)(B).’’. 
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1 (b) JOINT AND SEVERAL LIABILITY OF RELATED

2 PERSONS.—Section 9711(c) of such Code is amended to 

3 read as follows: 

4 ‘‘(c) JOINT AND SEVERAL LIABILITY OF RELATED

5 PERSONS.— 

6 ‘‘(1) Each related person of a last signatory op7 erator to which subsection (a) or (b) applies shall be 

8 jointly and severally liable with the last signatory op9 erator for the provision of health care coverage de10 scribed in subsection (a) or (b), provided, however, 

11 that an assigned operator who is a last signatory op12 erator under section 9711 and a member of a con13 trolled group of corporations (within the meaning of 

14 section 52(a)) or a related person to any assigned 

15 operator within that controlled group of corpora16 tions, that has met the requirements of section 

17 9704(k) (1) and (2) and has provided security de18 scribed in paragraph 9711(c)(2), shall be relieved of 

19 all such joint and several liability as of the date 

20 upon which such requirements are met, provided, 

21 however, that the common parent of such controlled 

22 group of corporations shall remain liable for the pro23 vision of benefits required to be provided under sub24 section (a) or (b). 
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1 ‘‘(2) Security meets the requirements of this 

2 paragraph if— 

3 ‘‘(A) the security (in the form of a bond, 

4 letter of credit or cash escrow) is provided to 

5 the trustees of the 1992 UMWA Benefit Plan, 

6 solely for the purpose of paying premiums for 

7 beneficiaries described in section 9712(b)(2)(B), 

8 equal in amount to 1 year’s liability of the last 

9 signatory operator under section 9711, deter10 mined by using the average cost of such opera11 tor’s liability during its prior 3 calendar years; 

12 ‘‘(B) the security is in addition to any 

13 other security required under any other provi14 sion of this Act; and 

15 ‘‘(C) the security remains in place for 5 

16 years. 

17 ‘‘(3) Upon termination of the obligations of the 

18 last signatory operator providing such security or 

19 the expiration of 5 years, whichever occurs first, the 

20 full amount of such security (and earnings thereon) 

21 shall be refunded to the last signatory operator.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on the date of the enactment 

24 of this Act. 
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1 SEC. 303. DEFINITION OF SUCCESSOR IN INTEREST. 

2 (a) IN GENERAL.—Subsection (c) of section 9701 of 

3 the Internal Revenue Code of 1986 is amended by adding 

4 at the end the following new paragraph: 

5 ‘‘(8) SUCCESSOR IN INTEREST.— 

6 ‘‘(A) SAFE HARBOR.—The term ‘successor 

7 in interest’ shall not include any person— 

8 ‘‘(i) who is an unrelated person to a 

9 seller; and 

10 ‘‘(ii) who purchases for fair market 

11 value assets, or all the stock of a related 

12 person, in a bona fide, arm’s-length sale 

13 which is subject to section 5 of the Securi14 ties Act of 1933 (15 U.S.C. 77f et seq.) or 

15 the Securities Exchange Act of 1934 (15 

16 U.S.C. 78a et seq.). 

17 ‘‘(B) UNRELATED PERSON.—The term 

18 ‘unrelated person’ means a purchaser who does 

19 not bear a relationship to the seller described in 

20 section 267(b).’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 subsection (a) shall apply to transactions after the date 

23 of the enactment of this Act. 

Æ