I 

108TH CONGRESS 

2D SESSION H. R. 4514

To provide for exploration, development, and production of oil and gas 

resources on the Arctic Coastal Plain of Alaska, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 4, 2004

Mr. POMBO introduced the following bill; which was referred to the Committee 

on Resources 

A BILL

To provide for exploration, development, and production of 

oil and gas resources on the Arctic Coastal Plain of 

Alaska, and for other purposes.

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

3 SECTION 1. SHORT TITLE. 

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

5 Domestic Energy Security Act of 2004’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

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

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

10 map entitled ‘‘Arctic National Wildlife Refuge’’, 
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1 dated August 1980, as referenced in section 1002(b) 

2 of the Alaska National Interest Lands Conservation 

3 Act of 1980 (16 U.S.C. 3142(b)(1)), comprising ap4 proximately 1,549,000 acres, and as described in ap5 pendix I to part 37 of title 50, Code of Federal Reg6 ulations. 

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

8 as otherwise provided, means the Secretary of the 

9 Interior or the Secretary’s designee. 

10 SEC. 3. LEASING PROGRAM FOR LANDS WITHIN THE 

11 COASTAL PLAIN. 

12 (a) IN GENERAL.—The Secretary shall take such ac13 tions as are necessary—

14 (1) to establish and implement in accordance 

15 with this Act a competitive oil and gas leasing pro16 gram under the Mineral Leasing Act (30 U.S.C. 181 

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

18 program for the exploration, development, and pro19 duction of the oil and gas resources of the Coastal 

20 Plain; and 

21 (2) to administer the provisions of this Act 

22 through regulations, lease terms, conditions, restric23 tions, prohibitions, stipulations, and other provisions 

24 that ensure the oil and gas exploration, development, 

25 and production activities on the Coastal Plain will 
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1 result in no significant adverse effect on fish and 

2 wildlife, their habitat, subsistence resources, and the 

3 environment, and including, in furtherance of this 

4 goal, by requiring the application of the best com5 mercially available technology for oil and gas explo6 ration, development, and production to all explo7 ration, development, and production operations 

8 under this Act in a manner that ensures the receipt 

9 of fair market value by the public for the mineral re10 sources to be leased. 

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

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

13 3143) is repealed. 

14 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER15 TAIN OTHER LAWS.—

16 (1) COMPATIBILITY.—For purposes of the Na17 tional Wildlife Refuge System Administration Act of 

18 1966, the oil and gas leasing program and activities 

19 authorized by this section in the Coastal Plain are 

20 deemed to be compatible with the purposes for which 

21 the Arctic National Wildlife Refuge was established, 

22 and that no further findings or decisions are re23 quired to implement this determination. 

24 (2) ADEQUACY OF THE DEPARTMENT OF THE

25 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT
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1 STATEMENT.—The ‘‘Final Legislative Environ2 mental Impact Statement’’ (April 1987) on the 

3 Coastal Plain prepared pursuant to section 1002 of 

4 the Alaska National Interest Lands Conservation 

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

6 of the National Environmental Policy Act of 1969 

7 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the re8 quirements under the National Environmental Policy 

9 Act of 1969 that apply with respect to actions au10 thorized to be taken by the Secretary to develop and 

11 promulgate the regulations for the establishment of 

12 a leasing program authorized by this Act before the 

13 conduct of the first lease sale. 

14 (3) COMPLIANCE WITH NEPA FOR OTHER AC15 TIONS.—Before conducting the first lease sale under 

16 this Act, the Secretary shall prepare an environ17 mental impact statement under the National Envi18 ronmental Policy Act of 1969 with respect to the ac19 tions authorized by this Act that are not referred to 

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

21 the Secretary is not required to identify nonleasing 

22 alternative courses of action or to analyze the envi23 ronmental effects of such courses of action. The Sec24 retary shall only identify a preferred action for such 

25 leasing and a single leasing alternative, and analyze 
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1 the environmental effects and potential mitigation 

2 measures for those two alternatives. The identifica3 tion of the preferred action and related analysis for 

4 the first lease sale under this Act shall be completed 

5 within 18 months after the date of the enactment of 

6 this Act. The Secretary shall only consider public 

7 comments that specifically address the Secretary’s 

8 preferred action and that are filed within 20 days 

9 after publication of an environmental analysis. Not10 withstanding any other law, compliance with this 

11 paragraph is deemed to satisfy all requirements for 

12 the analysis and consideration of the environmental 

13 effects of proposed leasing under this Act. 

14 (d) RELATIONSHIP TO STATE AND LOCAL AUTHOR15 ITY.—Nothing in this Act shall be considered to expand 

16 or limit State and local regulatory authority. 

17 (e) SPECIAL AREAS.—

18 (1) IN GENERAL.—The Secretary, after con19 sultation with the State of Alaska, the city of 

20 Kaktovik, and the North Slope Borough, may des21 ignate up to a total of 45,000 acres of the Coastal 

22 Plain as a Special Area if the Secretary determines 

23 that the Special Area is of such unique character 

24 and interest so as to require special management 

25 and regulatory protection. The Secretary shall des-
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1 ignate as such a Special Area the Sadlerochit Spring 

2 area, comprising approximately 4,000 acres as de3 picted on the map referred to in section 2(1). 

4 (2) MANAGEMENT.—Each such Special Area 

5 shall be managed so as to protect and preserve the 

6 area’s unique and diverse character including its 

7 fish, wildlife, and subsistence resource values. 

8 (3) EXCLUSION FROM LEASING OR SURFACE

9 OCCUPANCY.—The Secretary may exclude any Spe10 cial Area from leasing. If the Secretary leases a Spe11 cial Area, or any part thereof, for purposes of oil 

12 and gas exploration, development, production, and 

13 related activities, there shall be no surface occu14 pancy of the lands comprising the Special Area. 

15 (4) DIRECTIONAL DRILLING.—Notwithstanding 

16 the other provisions of this subsection, the Secretary 

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

18 terms that permit the use of horizontal drilling tech19 nology from sites on leases located outside the area. 

20 (f) LIMITATION ON CLOSED AREAS.—The Sec21 retary’s sole authority to close lands within the Coastal 

22 Plain to oil and gas leasing and to exploration, develop23 ment, and production is that set forth in this Act. 

24 (g) REGULATIONS.—
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1 (1) IN GENERAL.—The Secretary shall pre2 scribe such regulations as may be necessary to carry 

3 out this Act, including rules and regulations relating 

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

5 subsistence resources, and environment of the Coast6 al Plain, by no later than 15 months after the date 

7 of the enactment of this Act. 

8 (2) REVISION OF REGULATIONS.—The Sec9 retary shall periodically review and, if appropriate, 

10 revise the rules and regulations issued under sub11 section (a) to reflect any significant biological, envi12 ronmental, or engineering data that come to the Sec13 retary’s attention. 

14 SEC. 4. LEASE SALES. 

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

16 this Act to any person qualified to obtain a lease for depos17 its of oil and gas under the Mineral Leasing Act (30 

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

19 (b) PROCEDURES.—The Secretary shall, by regula20 tion, establish procedures for—

21 (1) receipt and consideration of sealed nomina22 tions for any area in the Coastal Plain for inclusion 

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

24 a lease sale; 
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1 (2) the holding of lease sales after such nomina2 tion process; and 

3 (3) public notice of and comment on designa4 tion of areas to be included in, or excluded from, a 

5 lease sale. 

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

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

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

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

10 those tracts the Secretary considers to have the greatest 

11 potential for the discovery of hydrocarbons, taking into 

12 consideration nominations received pursuant to subsection 

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

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

15 shall—

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

17 within 22 months after the date of the enactment of 

18 this Act; and 

19 (2) conduct additional sales so long as sufficient 

20 interest in development exists to warrant, in the Sec21 retary’s judgment, the conduct of such sales. 

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

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

24 highest responsible qualified bidder in a lease sale con25 ducted pursuant to section 4 any lands to be leased on 
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1 the Coastal Plain upon payment by the lessee of such 

2 bonus as may be accepted by the Secretary. 

3 (b) SUBSEQUENT TRANSFERS.—No lease issued 

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

5 or otherwise transferred except with the approval of the 

6 Secretary. Prior to any such approval the Secretary shall 

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

8 the Attorney General. 

9 SEC. 6. LEASE TERMS AND CONDITIONS. 

10 (a) IN GENERAL.—An oil or gas lease issued pursu11 ant to this Act shall—

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

less than 121 13 ⁄2 percent in amount or value of the 

14 production removed or sold from the lease, as deter15 mined by the Secretary under the regulations appli16 cable to other Federal oil and gas leases; 

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

18 seasonal basis, portions of the Coastal Plain to ex19 ploratory drilling activities as necessary to protect 

20 caribou calving areas and other species of fish and 

21 wildlife; 

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

23 Coastal Plain shall be fully responsible and liable for 

24 the reclamation of lands within the Coastal Plain 

25 and any other Federal lands that are adversely af-
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1 fected in connection with exploration, development, 

2 production, or transportation activities conducted 

3 under the lease and within the Coastal Plain by the 

4 lessee or by any of the subcontractors or agents of 

5 the lessee; 

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

7 convey, by contract or otherwise, the reclamation re8 sponsibility and liability to another person without 

9 the express written approval of the Secretary; 

10 (5) provide that the standard of reclamation for 

11 lands required to be reclaimed under this Act shall 

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

13 supporting the uses which the lands were capable of 

14 supporting prior to any exploration, development, or 

15 production activities, or upon application by the les16 see, to a higher or better use as approved by the 

17 Secretary; 

18 (6) contain terms and conditions relating to 

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

20 environment as required pursuant to section 3(a)(2); 

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

22 contractors use best efforts to provide a fair share, 

23 as determined by the level of obligation previously 

24 agreed to in the 1974 agreement implementing sec25 tion 29 of the Federal Agreement and Grant of 
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1 Right of Way for the Operation of the Trans-Alaska 

2 Pipeline, of employment and contracting for Alaska 

3 Natives and Alaska Native Corporations from 

4 throughout the State; 

5 (8) prohibit the export of oil produced under 

6 the lease; and 

7 (9) contain such other provisions as the Sec8 retary determines necessary to ensure compliance 

9 with the provisions of this Act and the regulations 

10 issued under this Act. 

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

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

13 in recognizing the Government’s proprietary interest in 

14 labor stability and in the ability of construction labor and 

15 management to meet the particular needs and conditions 

16 of projects to be developed under the leases issued pursu17 ant to this Act and the special concerns of the parties to 

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

19 and contractors negotiate to obtain a project labor agree20 ment for the employment of laborers and mechanics on 

21 production, maintenance, and construction under the 

22 lease. 

23 SEC. 7. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

24 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

25 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.—
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1 The Secretary shall, consistent with the requirements of 

2 section 3, administer the provisions of this Act through 

3 regulations, lease terms, conditions, restrictions, prohibi4 tions, stipulations, and other provisions that—

5 (1) ensure the oil and gas exploration, develop6 ment, and production activities on the Coastal Plain 

7 will result in no significant adverse effect on fish 

8 and wildlife, their habitat, and the environment; 

9 (2) require the application of the best commer10 cially available technology for oil and gas explo11 ration, development, and production on all new ex12 ploration, development, and production operations; 

13 and 

14 (3) ensure that the maximum amount of sur15 face acreage covered by production and support fa16 cilities, including airstrips and any areas covered by 

17 gravel berms or piers for support of pipelines, does 

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

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

20 The Secretary shall also require, with respect to any pro21 posed drilling and related activities, that—

22 (1) a site-specific analysis be made of the prob23 able effects, if any, that the drilling or related activi24 ties will have on fish and wildlife, their habitat, and 

25 the environment; 
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1 (2) a plan be implemented to avoid, minimize, 

2 and mitigate (in that order and to the extent prac3 ticable) any significant adverse effect identified 

4 under paragraph (1); and 

5 (3) the development of the plan shall occur 

6 after consultation with the agency or agencies hav7 ing jurisdiction over matters mitigated by the plan. 

8 (c) REGULATIONS TO PROTECT COASTAL PLAIN

9 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

10 AND THE ENVIRONMENT.—Before implementing the leas11 ing program authorized by this Act, the Secretary shall 

12 prepare and promulgate regulations, lease terms, condi13 tions, restrictions, prohibitions, stipulations, and other 

14 measures designed to ensure that the activities undertaken 

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

16 manner consistent with the purposes and environmental 

17 requirements of this Act. 

18 (d) COMPLIANCE WITH FEDERAL AND STATE ENVI19 RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 

20 proposed regulations, lease terms, conditions, restrictions, 

21 prohibitions, and stipulations for the leasing program 

22 under this Act shall require compliance with all applicable 

23 provisions of Federal and State environmental law and 

24 shall also require the following: 
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1 (1) Standards at least as effective as the safety 

2 and environmental mitigation measures set forth in 

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

4 ‘‘Final Legislative Environmental Impact State5 ment’’ (April 1987) on the Coastal Plain. 

6 (2) Seasonal limitations on exploration, develop7 ment, and related activities, where necessary, to 

8 avoid significant adverse effects during periods of 

9 concentrated fish and wildlife breeding, denning, 

10 nesting, spawning, and migration. 

11 (3) That exploration activities, except for sur12 face geological studies, be limited to the period be13 tween approximately November 1 and May 1 each 

14 year and that exploration activities shall be sup15 ported by ice roads, winter trails with adequate snow 

16 cover, ice pads, ice airstrips, and air transport meth17 ods, except that such exploration activities may 

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

19 exploration will have no significant adverse effect on 

20 the fish and wildlife, their habitat, and the environ21 ment of the Coastal Plain. 

22 (4) Design safety and construction standards 

23 for all pipelines and any access and service roads, 

24 that—
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1 (A) minimize, to the maximum extent pos2 sible, adverse effects upon the passage of mi3 gratory species such as caribou; and 

4 (B) minimize adverse effects upon the flow 

5 of surface water by requiring the use of cul6 verts, bridges, and other structural devices. 

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

8 pipeline access and service roads. 

9 (6) Stringent reclamation and rehabilitation re10 quirements, consistent with the standards set forth 

11 in this Act, requiring the removal from the Coastal 

12 Plain of all oil and gas development and production 

13 facilities, structures, and equipment upon completion 

14 of oil and gas production operations, except that the 

15 Secretary may exempt from the requirements of this 

16 paragraph those facilities, structures, or equipment 

17 that the Secretary determines would assist in the 

18 management of the Arctic National Wildlife Refuge 

19 and that are donated to the United States for that 

20 purpose. 

21 (7) Appropriate prohibitions or restrictions on 

22 access by all modes of transportation. 

23 (8) Appropriate prohibitions or restrictions on 

24 sand and gravel extraction. 

25 (9) Consolidation of facility siting. 
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1 (10) Appropriate prohibitions or restrictions on 

2 use of explosives. 

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

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

5 natural surface drainage patterns, wetlands, and ri6 parian habitats; and the regulation of methods or 

7 techniques for developing or transporting adequate 

8 supplies of water for exploratory drilling. 

9 (12) Avoidance or reduction of air traffic-re10 lated disturbance to fish and wildlife. 

11 (13) Treatment and disposal of hazardous and 

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

13 muds and cuttings, and domestic wastewater, includ14 ing an annual waste management report, a haz15 ardous materials tracking system, and a prohibition 

16 on chlorinated solvents, in accordance with applica17 ble Federal and State environmental law. 

18 (14) Fuel storage and oil spill contingency plan19 ning. 

20 (15) Research, monitoring, and reporting re21 quirements. 

22 (16) Field crew environmental briefings. 

23 (17) Avoidance of significant adverse effects 

24 upon subsistence hunting, fishing, and trapping by 

25 subsistence users. 
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1 (18) Compliance with applicable air and water 

2 quality standards. 

3 (19) Appropriate seasonal and safety zone des4 ignations around well sites, within which subsistence 

5 hunting and trapping shall be limited. 

6 (20) Reasonable stipulations for protection of 

7 cultural and archeological resources. 

8 (21) All other protective environmental stipula9 tions, restrictions, terms, and conditions deemed 

10 necessary by the Secretary. 

11 (e) CONSIDERATIONS.—In preparing and promul12 gating regulations, lease terms, conditions, restrictions, 

13 prohibitions, and stipulations under this section, the Sec14 retary shall consider the following: 

15 (1) The stipulations and conditions that govern 

16 the National Petroleum Reserve-Alaska leasing pro17 gram, as set forth in the 1999 Northeast National 

18 Petroleum Reserve-Alaska Final Integrated Activity 

19 Plan/Environmental Impact Statement. 

20 (2) The environmental protection standards 

21 that governed the initial Coastal Plain seismic explo22 ration program under parts 37.31 to 37.33 of title 

23 50, Code of Federal Regulations. 

24 (3) The land use stipulations for exploratory 

25 drilling on the KIC–ASRC private lands that are set 
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1 forth in Appendix 2 of the August 9, 1983, agree2 ment between Arctic Slope Regional Corporation and 

3 the United States. 

4 (f) FACILITY CONSOLIDATION PLANNING.—

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

6 providing for public notice and comment, prepare 

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

8 direct the siting and construction of facilities for the 

9 exploration, development, production, and transpor10 tation of Coastal Plain oil and gas resources. 

11 (2) OBJECTIVES.—The plan shall have the fol12 lowing objectives: 

13 (A) Avoiding unnecessary duplication of fa14 cilities and activities. 

15 (B) Encouraging consolidation of common 

16 facilities and activities. 

17 (C) Locating or confining facilities and ac18 tivities to areas that will minimize impact on 

19 fish and wildlife, their habitat, and the environ20 ment. 

21 (D) Utilizing existing facilities wherever 

22 practicable. 

23 (E) Enhancing compatibility between wild24 life values and development activities. 
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1 (g) ACCESS TO PUBLIC LANDS.—The Secretary 

2 shall—

3 (1) manage public lands in the Coastal Plain 

4 subject to section subsections (a) and (b) of section 

5 811 of the Alaska National Interest Lands Con6 servation Act (16 U.S.C. 3121); and 

7 (2) ensure that local residents shall have rea8 sonable access to public lands in the Coastal Plain 

9 for traditional uses. 

10 SEC. 8. EXPEDITED JUDICIAL REVIEW. 

11 (a) FILING OF COMPLAINT.—

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

13 complaint seeking judicial review of any provision of 

14 this Act or any action of the Secretary under this 

15 Act shall be filed in any appropriate district court of 

16 the United States—

17 (A) except as provided in subparagraph 

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

19 date of the action being challenged; or 

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

21 on grounds arising after such period, within 90 

22 days after the complainant knew or reasonably 

23 should have known of the grounds for the com24 plaint. 
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1 (2) VENUE.—Any complaint seeking judicial re2 view of an action of the Secretary under this Act 

3 may be filed only in the United States Court of Ap4 peals for the District of Columbia. 

5 (3) LIMITATION ON SCOPE OF CERTAIN RE6 VIEW.—Judicial review of a Secretarial decision to 

7 conduct a lease sale under this Act, including the en8 vironmental analysis thereof, shall be limited to 

9 whether the Secretary has complied with the terms 

10 of this Act and shall be based upon the administra11 tive record of that decision. The Secretary’s identi12 fication of a preferred course of action to enable 

13 leasing to proceed and the Secretary’s analysis of 

14 environmental effects under this Act shall be pre15 sumed to be correct unless shown otherwise by clear 

16 and convincing evidence to the contrary. 

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

18 Secretary with respect to which review could have been 

19 obtained under this section shall not be subject to judicial 

20 review in any civil or criminal proceeding for enforcement. 

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

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law, of the amount of adjusted bonus, rental, and 

24 royalty revenues from oil and gas leasing and operations 

25 authorized under this Act—
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1 (1) 50 percent shall be paid to the State of 

2 Alaska; and 

3 (2) except as provided in section 12(d) the bal4 ance shall be deposited into the Treasury as mis5 cellaneous receipts. 

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

7 of Alaska under this section shall be made semiannually. 

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

9 (a) EXEMPTION.—Title XI of the Alaska National In10 terest Lands Conservation Act of 1980 (16 U.S.C. 3161 

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

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

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

14 Plain for the transportation of oil and gas. 

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

16 include in any right-of-way or easement referred to in sub17 section (a) such terms and conditions as may be necessary 

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

19 in a significant adverse effect on the fish and wildlife, sub20 sistence resources, their habitat, and the environment of 

21 the Coastal Plain, including requirements that facilities be 

22 sited or designed so as to avoid unnecessary duplication 

23 of roads and pipelines. 

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

25 regulations under section 3(g) provisions granting rights-
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1 of-way and easements described in subsection (a) of this 

2 section. 

3 SEC. 11. CONVEYANCE. 

4 In order to maximize Federal revenues by removing 

5 clouds on title to lands and clarifying land ownership pat6 terns within the Coastal Plain, the Secretary, notwith7 standing the provisions of section 1302(h)(2) of the Alas8 ka National Interest Lands Conservation Act (16 U.S.C. 

9 3192(h)(2)), shall convey—

10 (1) to the Kaktovik Inupiat Corporation the 

11 surface estate of the lands described in paragraph 1 

12 of Public Land Order 6959, to the extent necessary 

13 to fulfill the Corporation’s entitlement under section 

14 12 of the Alaska Native Claims Settlement Act (43 

15 U.S.C. 1611) in accordance with the terms and con16 ditions of the Agreement between the Department of 

17 the Interior, the United States Fish and Wildlife 

18 Service, the Bureau of Land Management, and the 

19 Kaktovik Inupiat Corporation effective January 22, 

20 1993; and 

21 (2) to the Arctic Slope Regional Corporation 

22 the remaining subsurface estate to which it is enti23 tled pursuant to the August 9, 1983, agreement be24 tween the Arctic Slope Regional Corporation and the 

25 United States of America. 
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1 SEC. 12. LOCAL GOVERNMENT IMPACT AID AND COMMU2 NITY SERVICE ASSISTANCE. 

3 (a) FINANCIAL ASSISTANCE AUTHORIZED.—

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

5 amounts available from the Coastal Plain Local Gov6 ernment Impact Aid Assistance Fund established by 

7 subsection (d) to provide timely financial assistance 

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

9 that are directly impacted by the exploration for or 

10 production of oil and gas on the Coastal Plain under 

11 this Act. 

12 (2) ELIGIBLE ENTITIES.—The North Slope 

13 Borough, Kaktovik, and other boroughs, municipal 

14 subdivisions, villages, and any other community or15 ganized under Alaska State law shall be eligible for 

16 financial assistance under this section. 

17 (b) USE OF ASSISTANCE.—Financial assistance 

18 under this section may be used only for—

19 (1) planning for mitigation of the potential ef20 fects of oil and gas exploration and development on 

21 environmental, social, cultural, recreational and sub22 sistence values; 

23 (2) implementing mitigation plans and main24 taining mitigation projects; 

25 (3) developing, carrying out, and maintaining 

26 projects and programs that provide new or expanded 
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1 public facilities and services to address needs and 

2 problems associated with such effects, including fire3 fighting, police, water, waste treatment, medivac, 

4 and medical services; and 

5 (4) establishment of a coordination office, by 

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

7 which shall—

8 (A) coordinate with and advise developers 

9 on local conditions, impact, and history of the 

10 areas utilized for development; and 

11 (B) provide to the Committee on Resources 

12 of the House of Representatives and the Com13 mittee on Energy and Resources of the Senate 

14 an annual report on the status of coordination 

15 between developers and the communities af16 fected by development. 

17 (c) APPLICATION.—

18 (1) IN GENERAL.—Any community that is eligi19 ble for assistance under this section may submit an 

20 application for such assistance to the Secretary, in 

21 such form and under such procedures as the Sec22 retary may prescribe by regulation. 

23 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

24 community located in the North Slope Borough may 

25 apply for assistance under this section either directly 
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1 to the Secretary or through the North Slope Bor2 ough. 

3 (3) APPLICATION ASSISTANCE.—The Secretary 

4 shall work closely with and assist the North Slope 

5 Borough and other communities eligible for assist6 ance under this section in developing and submitting 

7 applications for assistance under this section. 

8 (d) ESTABLISHMENT OF FUND.—

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

10 Treasury the Coastal Plain Local Government Im11 pact Aid Assistance Fund. 

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

13 only for providing financial assistance under this 

14 section. 

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

16 shall be deposited into the fund amounts received by 

17 the United States as revenues derived from rents, 

18 bonuses, and royalties under on leases and lease 

19 sales authorized under this Act. 

20 (4) LIMITATION ON DEPOSITS.—The total 

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

22 (5) INVESTMENT OF BALANCES.—The Sec23 retary of the Treasury shall invest amounts in the 

24 fund in interest bearing government securities. 
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1 (e) AUTHORIZATION OF APPROPRIATIONS.—To pro2 vide financial assistance under this section there is author3 ized to be appropriated to the Secretary from the Coastal 

4 Plain Local Government Impact Aid Assistance Fund 

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

Æ