I 

108TH CONGRESS 

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. 

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

3 SECTION 1. SHORT TITLE. 

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

5 and Surface Mining Improvement Act of 2004’’. 
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1 TITLE I—OIL AND GAS LEASING 

2 PROGRAM FOR COASTAL 

3 PLAIN OF ALASKA 

4 SEC. 101. SHORT TITLE. 

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

6 Domestic Energy Security Act of 2004’’. 

7 SEC. 102. DEFINITIONS. 

8 In this title: 

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

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

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

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

13 of the Alaska National Interest Lands Conservation 

14 Act of 1980 (16 U.S.C. 3142(b)(1)), comprising ap15 proximately 1,549,000 acres, and as described in ap16 pendix I to part 37 of title 50, Code of Federal Reg17 ulations. 

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

19 as otherwise provided, means the Secretary of the 

20 Interior or the Secretary’s designee. 

21 SEC. 103. LEASING PROGRAM FOR LANDS WITHIN THE 

22 COASTAL PLAIN. 

23 (a) IN GENERAL.—The Secretary shall take such ac24 tions as are necessary— 
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1 (1) to establish and implement in accordance 

2 with this Act a competitive oil and gas leasing pro3 gram under the Mineral Leasing Act (30 U.S.C. 181 

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

5 program for the exploration, development, and pro6 duction of the oil and gas resources of the Coastal 

7 Plain; and 

8 (2) to administer the provisions of this title 

9 through regulations, lease terms, conditions, restric10 tions, prohibitions, stipulations, and other provisions 

11 that ensure the oil and gas exploration, development, 

12 and production activities on the Coastal Plain will 

13 result in no significant adverse effect on fish and 

14 wildlife, their habitat, subsistence resources, and the 

15 environment, and including, in furtherance of this 

16 goal, by requiring the application of the best com17 mercially available technology for oil and gas explo18 ration, development, and production to all explo19 ration, development, and production operations 

20 under this title in a manner that ensures the receipt 

21 of fair market value by the public for the mineral re22 sources to be leased. 

23 (b) REPEAL.—Section 1003 of the Alaska National 

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

25 3143) is repealed. 
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1 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER2 TAIN OTHER LAWS.— 

3 (1) COMPATIBILITY.—For purposes of the Na4 tional Wildlife Refuge System Administration Act of 

5 1966, the oil and gas leasing program and activities 

6 authorized by this section in the Coastal Plain are 

7 deemed to be compatible with the purposes for which 

8 the Arctic National Wildlife Refuge was established, 

9 and that no further findings or decisions are re10 quired to implement this determination. 

11 (2) ADEQUACY OF THE DEPARTMENT OF THE

12 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

13 STATEMENT.—The ‘‘Final Legislative Environ14 mental Impact Statement’’ (April 1987) on the 

15 Coastal Plain prepared pursuant to section 1002 of 

16 the Alaska National Interest Lands Conservation 

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

18 of the National Environmental Policy Act of 1969 

19 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re20 quirements under the National Environmental Policy 

21 Act of 1969 that apply with respect to actions au22 thorized to be taken by the Secretary to develop and 

23 promulgate the regulations for the establishment of 

24 a leasing program authorized by this title before the 

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

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

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

8 the Secretary is not required to identify nonleasing 

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

12 leasing and a single leasing alternative, and analyze 

13 the environmental effects and potential mitigation 

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

16 the first lease sale under this title shall be completed 

17 within 18 months after the date of the enactment of 

18 this Act. The Secretary shall only consider public 

19 comments that specifically address the Secretary’s 

20 preferred action and that are filed within 20 days 

21 after publication of an environmental analysis. Not22 withstanding any other law, compliance with this 

23 paragraph is deemed to satisfy all requirements for 

24 the analysis and consideration of the environmental 

25 effects of proposed leasing under this title. 
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1 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR2 ITY.—Nothing in this title shall be considered to expand 

3 or limit State and local regulatory authority. 

4 (e) SPECIAL AREAS.— 

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

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

9 Plain as a Special Area if the Secretary determines 

10 that the Special Area is of such unique character 

11 and interest so as to require special management 

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

14 area, comprising approximately 4,000 acres as de15 picted on the map referred to in section 102(1). 

16 (2) MANAGEMENT.—Each such Special Area 

17 shall be managed so as to protect and preserve the 

18 area’s unique and diverse character including its 

19 fish, wildlife, and subsistence resource values. 

20 (3) EXCLUSION FROM LEASING OR SURFACE

21 OCCUPANCY.—The Secretary may exclude any Spe22 cial Area from leasing. If the Secretary leases a Spe23 cial Area, or any part thereof, for purposes of oil 

24 and gas exploration, development, production, and 
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1 related activities, there shall be no surface occu2 pancy of the lands comprising the Special Area. 

3 (4) DIRECTIONAL DRILLING.—Notwithstanding 

4 the other provisions of this subsection, the Secretary 

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

6 terms that permit the use of horizontal drilling tech7 nology from sites on leases located outside the area. 

8 (f) LIMITATION ON CLOSED AREAS.—The Sec9 retary’s sole authority to close lands within the Coastal 

10 Plain to oil and gas leasing and to exploration, develop11 ment, and production is that set forth in this title. 

12 (g) REGULATIONS.— 

13 (1) IN GENERAL.—The Secretary shall pre14 scribe such regulations as may be necessary to carry 

15 out this title, including rules and regulations relating 

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

17 subsistence resources, and environment of the Coast18 al Plain, by no later than 15 months after the date 

19 of the enactment of this Act. 

20 (2) REVISION OF REGULATIONS.—The Sec21 retary shall periodically review and, if appropriate, 

22 revise the rules and regulations issued under sub23 section (a) to reflect any significant biological, envi24 ronmental, or engineering data that come to the Sec25 retary’s attention. 
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1 SEC. 104. LEASE SALES. 

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

3 this title to any person qualified to obtain a lease for de4 posits of oil and gas under the Mineral Leasing Act (30 

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

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

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

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

11 a lease sale; 

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

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

16 lease sale. 

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

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

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

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

21 lease those tracts the Secretary considers to have the 

22 greatest potential for the discovery of hydrocarbons, tak23 ing into consideration nominations received pursuant to 

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

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

26 shall— 
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1 (1) conduct the first lease sale under this title 

2 within 22 months after the date of the enactment of 

3 this Act; and 

4 (2) conduct additional sales so long as sufficient 

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

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

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

9 highest responsible qualified bidder in a lease sale con10 ducted pursuant to section 104 any lands to be leased on 

11 the Coastal Plain upon payment by the lessee of such 

12 bonus as may be accepted by the Secretary. 

13 (b) SUBSEQUENT TRANSFERS.—No lease issued 

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

15 or otherwise transferred except with the approval of the 

16 Secretary. Prior to any such approval the Secretary shall 

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

18 the Attorney General. 

19 SEC. 106. LEASE TERMS AND CONDITIONS. 

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

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

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

24 production removed or sold from the lease, as deter-
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1 mined by the Secretary under the regulations appli2 cable to other Federal oil and gas leases; 

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

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

6 caribou calving areas and other species of fish and 

7 wildlife; 

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

9 Coastal Plain shall be fully responsible and liable for 

10 the reclamation of lands within the Coastal Plain 

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

13 production, or transportation activities conducted 

14 under the lease and within the Coastal Plain by the 

15 lessee or by any of the subcontractors or agents of 

16 the lessee; 

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

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

20 the express written approval of the Secretary; 

21 (5) provide that the standard of reclamation for 

22 lands required to be reclaimed under this title shall 

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

24 supporting the uses which the lands were capable of 

25 supporting prior to any exploration, development, or 
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1 production activities, or upon application by the les2 see, to a higher or better use as approved by the 

3 Secretary; 

4 (6) contain terms and conditions relating to 

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

6 environment as required pursuant to section 

7 103(a)(2); 

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

9 contractors use best efforts to provide a fair share, 

10 as determined by the level of obligation previously 

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

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

14 Pipeline, of employment and contracting for Alaska 

15 Natives and Alaska Native Corporations from 

16 throughout the State; 

17 (8) prohibit the export of oil produced under 

18 the lease; and 

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

21 with the provisions of this title and the regulations 

22 issued under this title. 

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

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

25 in recognizing the Government’s proprietary interest in 
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1 labor stability and in the ability of construction labor and 

2 management to meet the particular needs and conditions 

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

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

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

8 production, maintenance, and construction under the 

9 lease. 

10 SEC. 107. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

11 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

12 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

13 The Secretary shall, consistent with the requirements of 

14 section 103, administer the provisions of this title through 

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

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

19 will result in no significant adverse effect on fish 

20 and wildlife, their habitat, and the environment; 

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

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

4 gravel berms or piers for support of pipelines, does 

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

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

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

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

12 the environment; 

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

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

16 under paragraph (1); and 

17 (3) the development of the plan shall occur 

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

20 (c) REGULATIONS TO PROTECT COASTAL PLAIN

21 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

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

24 prepare and promulgate regulations, lease terms, condi25 tions, restrictions, prohibitions, stipulations, and other 
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1 measures designed to ensure that the activities undertaken 

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

3 manner consistent with the purposes and environmental 

4 requirements of this title. 

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

7 proposed regulations, lease terms, conditions, restrictions, 

8 prohibitions, and stipulations for the leasing program 

9 under this title shall require compliance with all applicable 

10 provisions of Federal and State environmental law and 

11 shall also require the following: 

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

13 and environmental mitigation measures set forth in 

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

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

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

19 avoid significant adverse effects during periods of 

20 concentrated fish and wildlife breeding, denning, 

21 nesting, spawning, and migration. 

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

25 year and that exploration activities shall be sup-
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1 ported by ice roads, winter trails with adequate snow 

2 cover, ice pads, ice airstrips, and air transport meth3 ods, except that such exploration activities may 

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

5 exploration will have no significant adverse effect on 

6 the fish and wildlife, their habitat, and the environ7 ment of the Coastal Plain. 

8 (4) Design safety and construction standards 

9 for all pipelines and any access and service roads, 

10 that— 

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

14 (B) minimize adverse effects upon the flow 

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

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

18 pipeline access and service roads. 

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

21 in this title, requiring the removal from the Coastal 

22 Plain of all oil and gas development and production 

23 facilities, structures, and equipment upon completion 

24 of oil and gas production operations, except that the 

25 Secretary may exempt from the requirements of this 
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1 paragraph those facilities, structures, or equipment 

2 that the Secretary determines would assist in the 

3 management of the Arctic National Wildlife Refuge 

4 and that are donated to the United States for that 

5 purpose. 

6 (7) Appropriate prohibitions or restrictions on 

7 access by all modes of transportation. 

8 (8) Appropriate prohibitions or restrictions on 

9 sand and gravel extraction. 

10 (9) Consolidation of facility siting. 

11 (10) Appropriate prohibitions or restrictions on 

12 use of explosives. 

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

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

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

17 techniques for developing or transporting adequate 

18 supplies of water for exploratory drilling. 

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

21 (13) Treatment and disposal of hazardous and 

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

23 muds and cuttings, and domestic wastewater, includ24 ing an annual waste management report, a haz25 ardous materials tracking system, and a prohibition 
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1 on chlorinated solvents, in accordance with applica2 ble Federal and State environmental law. 

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

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

7 (16) Field crew environmental briefings. 

8 (17) Avoidance of significant adverse effects 

9 upon subsistence hunting, fishing, and trapping by 

10 subsistence users. 

11 (18) Compliance with applicable air and water 

12 quality standards. 

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

15 hunting and trapping shall be limited. 

16 (20) Reasonable stipulations for protection of 

17 cultural and archeological resources. 

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

20 necessary by the Secretary. 

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

23 prohibitions, and stipulations under this section, the Sec24 retary shall consider the following: 
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1 (1) The stipulations and conditions that govern 

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

4 Petroleum Reserve-Alaska Final Integrated Activity 

5 Plan/Environmental Impact Statement. 

6 (2) The environmental protection standards 

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

9 50, Code of Federal Regulations. 

10 (3) The land use stipulations for exploratory 

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

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

14 the United States. 

15 (f) FACILITY CONSOLIDATION PLANNING.— 

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

17 providing for public notice and comment, prepare 

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

19 direct the siting and construction of facilities for the 

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

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

24 (A) Avoiding unnecessary duplication of fa25 cilities and activities. 
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1 (B) Encouraging consolidation of common 

2 facilities and activities. 

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

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

7 (D) Utilizing existing facilities wherever 

8 practicable. 

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

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

12 shall— 

13 (1) manage public lands in the Coastal Plain 

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

15 the Alaska National Interest Lands Conservation 

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

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

19 for traditional uses. 

20 SEC. 108. EXPEDITED JUDICIAL REVIEW. 

21 (a) FILING OF COMPLAINT.— 

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

23 complaint seeking judicial review of any provision of 

24 this title or any action of the Secretary under this 
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1 title shall be filed in any appropriate district court 

2 of the United States— 

3 (A) except as provided in subparagraph 

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

5 date of the action being challenged; or 

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

7 on grounds arising after such period, within 90 

8 days after the complainant knew or reasonably 

9 should have known of the grounds for the com10 plaint. 

11 (2) VENUE.—Any complaint seeking judicial re12 view of an action of the Secretary under this title 

13 may be filed only in the United States Court of Ap14 peals for the District of Columbia. 

15 (3) LIMITATION ON SCOPE OF CERTAIN RE16 VIEW.—Judicial review of a Secretarial decision to 

17 conduct a lease sale under this title, including the 

18 environmental analysis thereof, shall be limited to 

19 whether the Secretary has complied with the terms 

20 of this title and shall be based upon the administra21 tive record of that decision. The Secretary’s identi22 fication of a preferred course of action to enable 

23 leasing to proceed and the Secretary’s analysis of 

24 environmental effects under this title shall be pre-
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1 sumed to be correct unless shown otherwise by clear 

2 and convincing evidence to the contrary. 

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

4 Secretary with respect to which review could have been 

5 obtained under this section shall not be subject to judicial 

6 review in any civil or criminal proceeding for enforcement. 

7 SEC. 109. FEDERAL AND STATE DISTRIBUTION OF REVE8 NUES. 

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, of the amount of adjusted bonus, rental, and 

11 royalty revenues from oil and gas leasing and operations 

12 authorized under this title— 

13 (1) 50 percent shall be paid to the State of 

14 Alaska; and 

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

16 title II, the balance shall be deposited into the 

17 Treasury as miscellaneous receipts. 

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

19 of Alaska under this section shall be made semiannually. 

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

21 (a) EXEMPTION.—Title XI of the Alaska National In22 terest Lands Conservation Act of 1980 (16 U.S.C. 3161 

23 et seq.) shall not apply to the issuance by the Secretary 

24 under section 28 of the Mineral Leasing Act (30 U.S.C. 
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1 185) of rights-of-way and easements across the Coastal 

2 Plain for the transportation of oil and gas. 

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

4 include in any right-of-way or easement referred to in sub5 section (a) such terms and conditions as may be necessary 

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

7 in a significant adverse effect on the fish and wildlife, sub8 sistence resources, their habitat, and the environment of 

9 the Coastal Plain, including requirements that facilities be 

10 sited or designed so as to avoid unnecessary duplication 

11 of roads and pipelines. 

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

13 regulations under section 103(g) provisions granting 

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

15 of this section. 

16 SEC. 111. CONVEYANCE. 

17 In order to maximize Federal revenues by removing 

18 clouds on title to lands and clarifying land ownership pat19 terns within the Coastal Plain, the Secretary, notwith20 standing the provisions of section 1302(h)(2) of the Alas21 ka National Interest Lands Conservation Act (16 U.S.C. 

22 3192(h)(2)), shall convey— 

23 (1) to the Kaktovik Inupiat Corporation the 

24 surface estate of the lands described in paragraph 1 

25 of Public Land Order 6959, to the extent necessary 
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1 to fulfill the Corporation’s entitlement under section 

2 12 of the Alaska Native Claims Settlement Act (43 

3 U.S.C. 1611) in accordance with the terms and con4 ditions of the Agreement between the Department of 

5 the Interior, the United States Fish and Wildlife 

6 Service, the Bureau of Land Management, and the 

7 Kaktovik Inupiat Corporation effective January 22, 

8 1993; and 

9 (2) to the Arctic Slope Regional Corporation 

10 the remaining subsurface estate to which it is enti11 tled pursuant to the August 9, 1983, agreement be12 tween the Arctic Slope Regional Corporation and the 

13 United States of America. 

14 SEC. 112. LOCAL GOVERNMENT IMPACT AID AND COMMU15 NITY SERVICE ASSISTANCE. 

16 (a) FINANCIAL ASSISTANCE AUTHORIZED.— 

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

18 amounts available from the Coastal Plain Local Gov19 ernment Impact Aid Assistance Fund established by 

20 subsection (d) to provide timely financial assistance 

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

22 that are directly impacted by the exploration for or 

23 production of oil and gas on the Coastal Plain under 

24 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 Con22 trol and Reclamation Act of 1977 (30 U.S.C. 

23 1302(b)) is amended by striking ‘‘section 

24 401(c)(11)’’ and inserting ‘‘section 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)— 
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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 States 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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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) ORDERING RULES WHERE SPECIFIED PAY10 MENTS EXCEED LIMITATION.— 

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

12 under paragraphs (4) and (5) for any fiscal 

13 year only to the extent that the limitation under 

14 paragraph (2) for such year exceeds the sum 

15 of— 

16 ‘‘(i) the estimated payments to be 

17 made under paragraph (3) for such year, 

18 and 

19 ‘‘(ii) the estimated payments to be 

20 made under paragraph (3) for the suc21 ceeding fiscal year. 

22 ‘‘(B) PROPORTIONAL REDUCTION.—Pay23 ments under paragraphs (4) and (5) shall be 

24 proportionally reduced to the extent the full 
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1 amount of such payments may not be made by 

2 reason of subparagraph (A). 

3 ‘‘(7) ESTIMATES AND ADJUSTMENTS.— 

4 ‘‘(A) ESTIMATES.—Estimated amounts 

5 with respect to any fund or plan shall be made 

6 by the trustees thereof. 

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

8 year, the amount paid under parragraph (3), 

9 (4), or (5) is more or less than the amount re10 quired to be paid, the Secretary of the Interior 

11 shall appropriately adjust the amount paid 

12 under that paragraph for the next fiscal year. 

13 ‘‘(8) DEFINITIONS.—For purposes of this sub14 section— 

15 ‘‘(A) COMBINED FUND.—The term ‘Com16 bined Fund’ means the United Mine Workers of 

17 America Combined Benefit Fund established 

18 under section 9702 of the Internal Revenue 

19 Code of 1986. 

20 ‘‘(B) 1992 PLAN.—The term ‘1992 Plan’ 

21 means the United Mine Workers of America 

22 1992 Benefit Plan established under section 

23 9712 of such Code. 

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

25 means the multiemployer health benefit plan es-
38 

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1 tablished after July 20, 1992, by the persons 

2 referred to in section 9701(b)(2) of such 

3 Code.’’. 

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

5 the Surface Mining Control and Reclamation Act of 1977 

6 (30 U.S.C. 1233(a)) is amended as follows: 

7 (1) In subsection (a)— 

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

9 welfare,’’; 

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

11 safety, and general welfare’’ and inserting 

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

13 the semicolon at the end; 

14 (C) in paragraph (3) by striking the semi15 colon at the end and inserting a period; and 

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

17 (2) In subsection (b)— 

18 (A) by striking the heading and inserting 

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

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

21 percent of the’’. 

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

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

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

25 of the Surface Mining Control and Reclamation Act of 
39 

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1 1977 (30 U.S.C. 1236(h)) is amended by striking ‘‘Soil 

2 Conservation Service’’ and inserting ‘‘Natural Resources 

3 Conservation Service’’. 

4 (e) FURTHER AMENDMENT TO SECTION 406.—Sec5 tion 406 of the Surface Mining Control and Reclamation 

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

7 the end the following: 

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

9 Secretary of Agriculture, from amounts in the Treasury 

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

11 necessary to carry out this section.’’. 

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

13 of the Surface Mining Control and Reclamation Act of 

14 1977 (30 U.S.C. 1238) is amended by striking ‘‘who 

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

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

17 the Surface Mining Control and Reclamation Act of 1977 

18 (30 U.S.C. 1240a) is amended as follows: 

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

20 the first sentence, and by adding at the end the fol21 lowing: 

22 ‘‘(2) The Secretary may, on the Secretary’s own voli23 tion, make the certification referred to in paragraph (1) 

24 on behalf of any State or Indian tribe referred to in para25 graph (1) if on the basis of the inventory referred to in 
40 

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1 section 403(c) all reclamation projects relating to the pri2 orities set forth in section 403(a) for eligible lands and 

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

4 been completed. The Secretary shall only make such cer5 tification after notice in the Federal Register and oppor6 tunity for public comment.’’. 

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

8 ‘‘(h) STATE SHARE FOR CERTAIN CERTIFIED

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

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

11 191(a)) that are paid into the Treasury after the date of 

12 the enactment of this subsection and that are not paid 

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

14 reserved as part of the reclamation fund under such sec15 tion, the Secretary of the Interior shall pay to each quali16 fied State, on a proportional basis, an amount equal to 

17 the sum of the aggregate unappropriated amount allocated 

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

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

20 means a State for which a certification is made under sub21 section (a) and in which there are public domain lands 

22 available for leasing under the Mineral Leasing Act (30 

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

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

25 be made, without regard to any limitation in section 
41 

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1 401(d), in the same manner as if paid under section 35 

2 of the Mineral Leasing Act (30 U.S.C. 191) and concur3 rently with payments to States under that section. The 

4 funds distributed under this section shall be referred to 

5 as the ‘Cubin-Thomas Mineral Fund’. 

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

7 402(g)(1)(A) that is paid to such State as a result of a 

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

9 reallocated and available for grants under section 

10 402(g)(5).’’. 

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

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

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

14 1231 et seq.) is amended by adding at the end the fol15 lowing: 

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

17 ALASKA. 

18 ‘‘(a) COAL MINING FAIRNESS FUND.—There is es19 tablished in the Treasury a separate account to be known 

20 as the ‘Coal Mining Fairness Fund’ (hereafter in this sec21 tion referred to as the ‘Account’). 

22 ‘‘(b) APPROPRIATIONS TO ACCOUNT.— 

23 ‘‘(1) IN GENERAL.—There are hereby appro24 priated to the Account amounts equivalent to the 

25 amounts received by the United States as bonuses, 
42 

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1 rents, or royalties from the exploration, development, 

2 and production of the oil and gas resources of the 

3 Coastal Plain, that are not required to be otherwise 

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

5 the Arctic Coastal Plain Domestic Energy Security 

6 Act of 2004. 

7 ‘‘(2) REPAYABLE ADVANCES.— 

8 ‘‘(A) IN GENERAL.—There are hereby ap9 propriated to the Account for each fiscal year 

10 as a repayable advance an amount equal to the 

11 excess (if any) of— 

12 ‘‘(i) the expenditures required under 

13 subsection (c) for such year, over 

14 ‘‘(ii) the amount appropriated by 

15 paragraph (1) for such year. 

16 ‘‘(B) REPAYMENT OF ADVANCES.— 

17 ‘‘(i) IN GENERAL.—Advances made to 

18 the Account shall be repaid, and interest 

19 on such advances shall be paid, to the gen20 eral fund of the Treasury when the Sec21 retary of the Interior determines that mon22 eys are available for such purposes in the 

23 Account. 

24 ‘‘(ii) FINAL REPAYMENT.—No ad25 vance shall be made to the Account after 
43 

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1 December 31, 2007, and all advances to 

2 the Account shall be repaid on or before 

3 September 30, 2009. 

4 ‘‘(C) RATE OF INTEREST.—Interest on ad5 vances made to the Account shall be at a rate 

6 determined by the Secretary of the Treasury 

7 (as of the close of the calendar month preceding 

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

9 equal to the current average market yield on 

10 outstanding marketable obligations of the 

11 United States with remaining periods to matu12 rity comparable to the anticipated period during 

13 which the advance will be outstanding and shall 

14 be compounded annually. 

15 ‘‘(c) EXPENDITURES.— 

16 ‘‘(1) COMBINED FUND.—The Secretary of the 

17 Interior shall pay from the Account to the Combined 

18 Fund amounts necessary (after the payments under 

19 section 402(h)) to meet the obligations of the Com20 bined Fund. 

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

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

23 Interior shall pay from the Account to each specified 

24 person an amount equal to the amount of premiums 
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1 or assigned operator contributions paid by such per2 son for fiscal year 2004. 

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

4 AFTER 2004.— 

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

6 each fiscal year after fiscal year 2004, the Sec7 retary of the Interior shall pay from the Ac8 count to the Combined Fund an amount equal 

9 to the amount of premiums or assigned oper10 ator contributions which would (but for sub11 paragraph (B)) be required to be paid by speci12 fied persons for such fiscal year. 

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

14 of liability for amounts paid under subpara15 graph (A), see section 9704(j) of the Internal 

16 Revenue Code of 1986. 

17 ‘‘(4) 1992 PLAN.—The Secretary of the Interior 

18 shall pay from the Account to the 1992 Plan (as de19 fined in section 402(h)) amounts necessary (after 

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

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

22 ‘‘(5) 1993 PLAN.—The Secretary of the Interior 

23 shall pay from the Account to the 1993 Plan 

24 amounts necessary (after the appropriations under 
45 

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1 section 402(h)) to pay the amounts described in sec2 tion 402(h)(5). 

3 ‘‘(6) QUALIFIED STATES.— 

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

5 Interior shall pay from the Account to each 

6 qualified State an amount equal to the sum of 

7 the aggregate unappropriated amount allocated 

8 to such qualified State under subparagraph (A) 

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

10 ‘‘(B) REALLOCATION.—The amount allo11 cated to any qualified State under section 

12 402(g)(1) that is paid to such qualified State as 

13 a result of a payment under subparagraph (A) 

14 shall be reallocated and available for grants 

15 under section 402(g)(5). 

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

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

18 Plain’ has the meaning given that term in section 

19 102 of the Arctic Coastal Plain Domestic Energy 

20 Security Act of 2004. 

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

22 person’ means an assigned operator (as defined in 

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

24 1986), a related person of such assigned operator, 

25 and a successor-in-interest of such operator or per-
46 

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1 son, if according to the records of the Combined 

2 Fund such assigned operator— 

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

4 premiums to the Combined Fund in October 

5 2001, and 

6 ‘‘(B) was not— 

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

8 later National Bituminous Coal Wage 

9 Agreement, 

10 ‘‘(ii) a signatory to an agreement 

11 (other than the National Coal Mine Con12 struction Agreement or the Coal Haulers’ 

13 Agreement) containing pension and health 

14 care contribution and benefit provisions 

15 that are identical to those contained in the 

16 1988 National Bituminous Coal Wage 

17 Agreement, or 

18 ‘‘(iii) an employer from which con19 tributions were actually received after 

20 1987 and before July 20, 1992, by the 

21 1950 United Mine Workers of America 

22 Benefit Plan Benefit Plan or the 1974 

23 United Mine Workers of America Benefit 

24 Plan in connection with employment in the 

25 coal industry during the period covered by 
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1 the 1988 National Bituminous Coal Wage 

2 Agreement. 

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

4 Fund’ means the United Mine Workers of America 

5 of America Combined Benefit Fund established 

6 under section 9702 of the Internal Revenue Code of 

7 1986. 

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

9 State’ means a State— 

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

11 under subsection 411(a); and 

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

13 lands, in the case of a State.’’. 

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

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

16 after the item relating to section 414 the following: 

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

17 SEC. 204. PROVISIONS RELATING TO THE IMPLEMENTA18 TION OF THIS TITLE. 

19 (a) TRANSITION RULES.—(1) Amounts allocated 

20 under section 402(g)(2) of the Surface Mining Control 

21 and Reclamation Act of 1977 (30 U.S.C. 1232(g)(2)) (ex22 cluding interest) prior to the date of enactment of this 

23 Act for the program set forth under section 406 of that 

24 Act (30 U.S.C. 1236), but not appropriated prior to such 

25 date, shall be available in fiscal year 2005 and thereafter 
48 

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1 for the payments referred to in paragraph (1)(A) of sec2 tion 402(h) of such Act (30 U.S.C. 1232(h)), as amended 

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

4 available for such payments, to the extent necessary to 

5 meet the obligations of the Combined Fund (as that term 

6 is used in that section). 

7 (2) Notwithstanding any other provision of law, inter8 est credited to the fund established by section 401 of the 

9 Surface Mining Control and Reclamation Act of 1977 (30 

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

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

12 1232(h)), as amended by this Act, prior to the date of 

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

14 and thereafter for the payments referred to in paragraph 

15 (1)(A) of section 402(h) of such Act (30 U.S.C. 1232(h)), 

16 as amended by this Act, in the same manner as are other 

17 amounts available for such payments, to the extent nec18 essary to meet the obligations of the Combined Fund. 

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

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

21 complete a review of all additions made, pursuant to 

22 amendments offered by States and Indians tribes after 

23 December 31, 1998, to the inventory referred to in section 

24 403(c) of the Surface Mining Control and Reclamation 

25 Act of 1977 (30 U.S.C. 1233(c)) to ensure that such addi-
49 

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1 tions reflect eligible lands and waters pursuant to section 

2 404 of such Act (30 U.S.C. 1234) that meet the priorities 

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

4 such Act (30 U.S.C. 1233(a)(1) and (2)), and are cor5 rectly identified pursuant to such priorities. Any lands or 

6 waters that were included in the inventory pursuant to the 

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

8 such Act (30 U.S.C. 1233(a)) before the date of enact9 ment of this Act that are determined in the review to no 

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

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

12 shall be removed from the inventory. 

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

14 528(2) of the Surface Mining Control and Reclamation 

15 Act of 1977 (30 U.S.C. 1278(2)), the term ‘‘government16 financed’’ shall not include funds made available under 

17 title IV of such Act. 

18 (d) PAYMENT OF TRIBAL ALLOCATION.—(1) Not19 withstanding any other provision of law and by not later 

20 than December 31, 2004, the Secretary of the Interior 

21 shall use amounts allocated under section 402(g)(2) of the 

22 Surface Mining Control and Reclamation Act of 1977 (30 

23 U.S.C. 1232(g)(2)) (excluding interest) prior to the date 

24 of enactment of this Act for the program set forth under 

25 section 406 of that Act (30 U.S.C. 1236), but not appro-
50 

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1 priated prior to such date, to pay an amount determined 

2 in accordance with paragraph (2) to any Indian tribe that 

3 has made the certification referred to in section 411 of 

4 the Surface Mining Control and Reclamation Act of 1977 

5 (30 U.S.C. 1240a). 

6 (2) The payment to an Indian tribe under paragraph 

7 (1) shall be proportional to the sum of the aggregate unap8 propriated amount allocated to such tribe under section 

9 402(g)(1)(B) of such Act (43 U.S.C. 1232(g)(1)(B)), and 

10 shall be made in lieu of payment of such aggregate allo11 cated amount. 

12 (3) The total amount of payments under this sub13 section shall be $41,502,991. 

14 (e) REMINING.— 

15 (1) EXTENSION OF AUTHORITY.—Section 

16 511(e) of the Surface Mining Control and Reclama17 tion Act of 1977 (30 U.S.C. 1260(e)) is amended by 

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

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

20 paragraph (1), nothing in this section shall be con21 sidered to modify or amend any provision of law gov22 erning coal remining. 

23 (f) ENSURING AVAILABILITY OF MINERAL LEASING

24 ACT REVENUES.—Section 949(a)(1) of the Energy Policy 
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1 Act of 2003 is amended by inserting ‘‘(A)’’ before the first 

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

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

4 the Mineral Leasing Act shall be deposited under 

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

6 that amounts derived from leases issued under the 

7 Outer Continental Shelf Lands Act and available for 

8 such deposit for the fiscal year (after distribution of 

9 any such funds as described in subsection (c)) are 

10 less than $150,000,000.’’. 

11 TITLE III—AMENDMENTS OF IN12 TERNAL REVENUE CODE OF 

13 1986 

14 SEC. 301. WAIVER OF PREMIUMS FOR CERTAIN OPERA15 TORS. 

16 (a) IN GENERAL.—Section 9704 of the Internal Rev17 enue Code of 1986 (relating to liability of assigned opera18 tors) is amended by adding at the end the following new 

19 subsection: 

20 ‘‘(j) WAIVER OF PREMIUMS FOR CERTAIN OPERA21 TORS.—No premium shall be required to be paid under 

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

23 which is paid under section 415 of the Surface Mining 

24 Control and Reclamation Act of 1977.’’. 
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1 (b) USE OF AMOUNTS PAID FROM ABANDONED

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

3 9705(b) of such Code is amended to read as follows: 

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

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

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

7 the date of the enactment of the Abandoned Mine 

8 Lands Reclamation Reform Act of 2004).’’. 

9 SEC. 302. PREPAYMENT OF PREMIUM LIABILITY FOR COAL 

10 INDUSTRY HEALTH BENEFITS. 

11 (a) IN GENERAL.—Section 9704 of the Internal Rev12 enue Code of 1986 (relating to liability of assigned opera13 tors) is amended by adding at the end the following new 

14 subsection: 

15 ‘‘(j) PREPAYMENT OF PREMIUM LIABILITY.— 

16 ‘‘(1) IN GENERAL.—If— 

17 ‘‘(A) a payment meeting the requirements 

18 of paragraph (j)(2) is made to the Combined 

19 Fund by or on behalf of any assigned operator 

20 who is a member of a controlled group of cor21 porations (within the meaning of section 52(a)), 

22 or by or on behalf of any related person to any 

23 assigned operator within that controlled group 

24 of corporations; and 
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1 ‘‘(B) the common parent of such group is 

2 jointly and severally liable for any premium 

3 which would (but for this subsection) be re4 quired to be paid by any such operator, then no 

5 person (other than such common parent) shall 

6 be liable for any premium for which any oper7 ator within that controlled group of corpora8 tions would otherwise be liable. 

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

10 requirements of this paragraph if— 

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

12 than the present value of the total premium li13 ability of the assigned operator or operators 

14 within that controlled group of corporations for 

15 its or their assignees under this chapter with 

16 respect to the Combined Fund (as determined 

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

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

19 and assumptions each of which is reasonable 

20 and which are reasonable in the aggregate, as 

21 determined by such enrolled actuary; 

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

23 the Secretary of Labor by such enrolled actuary 

24 containing— 
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1 ‘‘(i) the date of the actuarial valuation 

2 applicable to the report; and 

3 ‘‘(ii) a statement by the enrolled actu4 ary signing the report that to the best of 

5 the actuary’s knowledge the report is com6 plete and accurate and that in the actu7 ary’s opinion the actuarial assumptions 

8 used are in the aggregate reasonably re9 lated to the experience of the operator and 

10 to reasonable expectations; and 

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

12 the report required by subparagraph (B), and 

13 the description required by subparagraph (C), 

14 are filed with the Secretary of Labor, and the 

15 Secretary of Labor has not notified the as16 signed operator in writing that the require17 ments of this paragraph have not been satisfied. 

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

19 Fund shall establish and maintain an account for 

20 each assigned operator making such payment or on 

21 behalf of which such payment was made (with earn22 ings thereon) and use all amounts in such account 

23 exclusively to pay premium that would (but for this 

24 subsection) be required to be paid by the assigned 

25 operator. Upon termination of the obligations for 
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1 premium liability of any assigned operator for which 

2 such account is maintained, all funds remaining in 

3 such account (and earnings thereon) shall be re4 funded to such entity as may be designated by the 

5 common parent described in paragraph (1)(B).’’. 

6 (b) JOINT AND SEVERAL LIABILITY OF RELATED

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

8 read as follows: 

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

10 PERSONS.— 

11 ‘‘(1) Each related person of a last signatory op12 erator to which subsection (a) or (b) applies shall be 

13 jointly and severally liable with the last signatory op14 erator for the provision of health care coverage de15 scribed in subsection (a) or (b), provided, however, 

16 that an assigned operator who is a last signatory op17 erator under section 9711 and a member of a con18 trolled group of corporations (within the meaning of 

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

20 operator within that controlled group of corpora21 tions, that has met the requirements of section 

22 9704(j) (1) and (2) and has provided security de23 scribed in paragraph 9711(c)(2), shall be relieved of 

24 all such joint and several liability as of the date 

25 upon which such requirements are met, provided, 
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1 however, that the common parent of such controlled 

2 group of corporations shall remain liable for the pro3 vision of benefits required to be provided under sub4 section (a) or (b). 

5 ‘‘(2) Security meets the requirements of this 

6 paragraph if— 

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

8 letter of credit or cash escrow) is provided to 

9 the trustees of the 1992 UMWA Benefit Plan, 

10 solely for the purpose of paying premiums for 

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

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

13 signatory operator under section 9711, deter14 mined by using the average cost of such opera15 tor’s liability during its prior 3 calendar years; 

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

17 other security required under any other provi18 sion of this Act; and 

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

20 years. 

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

22 last signatory operator providing such security or 

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

24 full amount of such security (and earnings thereon) 

25 shall be refunded to the last signatory operator.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

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

3 of this Act. 

4 SEC. 303. DEFINITION OF SUCCESSOR IN INTEREST. 

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

6 the Internal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(8) SUCCESSOR IN INTEREST.— 

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

10 in interest’ shall not include any person— 

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

12 seller; and 

13 ‘‘(ii) who purchases for fair market 

14 value assets, or all the stock of a related 

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

16 which is subject to section 5 of the Securi17 ties Act of 1933 (15 U.S.C. 77f et seq.) or 

18 the Securities Exchange Act of 1934 (15 

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

20 ‘‘(B) UNRELATED PERSON.—The term 

21 ‘unrelated person’ means a purchaser who does 

22 not bear a relationship to the seller described in 

23 section 267(b).’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by 

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

3 of the enactment of this Act. 

Æ