II 

114TH CONGRESS 

1ST SESSION S. 494 

To authorize the exploration, leasing, development, production, and economically feasible and prudent transportation of oil and gas in and from 

the Coastal Plain in Alaska. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 12, 2015 

Ms. MURKOWSKI (for herself and Mr. SULLIVAN) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To authorize the exploration, leasing, development, production, and economically feasible and prudent transportation of oil and gas in and from the Coastal Plain 

in Alaska. 

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 ‘‘Authorizing Alaska 

5 Production Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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

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

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

4 (2) FEDERAL AGREEMENT.—The term ‘‘Fed5 eral Agreement’’ means the Federal Agreement and 

6 Grant Right-of-Way for the Trans-Alaska Pipeline 

7 issued on January 23, 1974, in accordance with sec8 tion 28 of the Mineral Leasing Act (30 U.S.C. 185) 

9 and the Trans-Alaska Pipeline Authorization Act 

10 (43 U.S.C. 1651 et seq.). 

11 (3) FINAL STATEMENT.—The term ‘‘Final 

12 Statement’’ means the final legislative environmental 

13 impact statement on the Coastal Plain, dated April 

14 1987, and prepared pursuant to— 

15 (A) section 1002 of the Alaska National 

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

17 3142); and 

18 (B) section 102(2)(C) of the National En19 vironmental Policy Act of 1969 (42 U.S.C. 

20 4332(2)(C)). 

21 (4) MAP.—The term ‘‘map’’ means the map en22 titled ‘‘Arctic National Wildlife Refuge’’, dated Sep23 tember 2005, and prepared by the United States Ge24 ological Survey. 


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1 (5) SECRETARY.—The term ‘‘Secretary’’ 

2 means— 

3 (A) the Secretary of the Interior; or 

4 (B) the designee of the Secretary. 

5 SEC. 3. LEASING PROGRAM FOR LAND WITHIN THE COAST6 AL PLAIN. 

7 (a) IN GENERAL.— 

8 (1) AUTHORIZATION.—Congress authorizes the 

9 exploration, leasing, development, production, and 

10 economically feasible and prudent transportation of 

11 oil and gas in and from the Coastal Plain. 

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

13 actions as are necessary— 

14 (A) to establish and implement, in accord15 ance with this Act, a competitive oil and gas 

16 leasing program that will result in an environ17 mentally sound program for the exploration, de18 velopment, and production of the oil and gas re19 sources of the Coastal Plain; and 

20 (B) to administer this Act through regula21 tions, lease terms, conditions, restrictions, pro22 hibitions, stipulations, and other provisions 

23 that— 

24 (i) ensure the oil and gas exploration, 

25 development, and production activities on 


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1 the Coastal Plain will result in no signifi2 cant adverse effect on fish and wildlife, 

3 fish and wildlife habitat, subsistence re4 sources, and the environment; and 

5 (ii) require the application of the best 

6 commercially available technology for oil 

7 and gas exploration, development, and pro8 duction to all exploration, development, 

9 and production operations under this Act 

10 in a manner that ensures the receipt of 

11 fair market value by the public for the 

12 mineral resources to be leased. 

13 (b) REPEAL.— 

14 (1) REPEAL.—Section 1003 of the Alaska Na15 tional Interest Lands Conservation Act (16 U.S.C. 

16 3143) is repealed. 

17 (2) CONFORMING AMENDMENT.—The table of 

18 contents contained in section 1 of that Act (16 

19 U.S.C. 3101 note) is amended by striking the item 

20 relating to section 1003. 

21 (c) COMPLIANCE WITH REQUIREMENTS UNDER CER22 TAIN OTHER LAWS.— 

23 (1) COMPATIBILITY.—For purposes of the Na24 tional Wildlife Refuge System Administration Act of 

25 1966 (16 U.S.C. 668dd et seq.)— 


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1 (A) the oil and gas preleasing and leasing 

2 program, and activities authorized by this sec3 tion in the Coastal Plain, shall be considered to 

4 be compatible with the purposes for which the 

5 Arctic National Wildlife Refuge was established; 

6 and 

7 (B) no further findings or decisions shall 

8 be required to implement that program and 

9 those activities. 

10 (2) ADEQUACY OF THE DEPARTMENT OF THE

11 INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT

12 STATEMENT.—The Final Statement shall be consid13 ered to satisfy the requirements under the National 

14 Environmental Policy Act of 1969 (42 U.S.C. 4321 

15 et seq.) that apply with respect to preleasing, includ16 ing exploration programs and actions authorized to 

17 be taken by the Secretary to develop and promulgate 

18 the regulations for the establishment of a leasing 

19 program authorized by this Act before the conduct 

20 of the first lease sale. 

21 (3) COMPLIANCE WITH NEPA FOR OTHER AC22 TIONS.— 

23 (A) IN GENERAL.—Before conducting the 

24 first lease sale under this Act, the Secretary 

25 shall prepare an environmental impact stateVerDate Sep 11 2014 00:56 Feb 24, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S494.IS S494

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1 ment in accordance with the National Environ2 mental Policy Act of 1969 (42 U.S.C. 4321 et 

3 seq.) with respect to the actions authorized by 

4 this Act that are not referred to in paragraph 

5 (2). 

6 (B) IDENTIFICATION AND ANALYSIS.— 

7 Notwithstanding any other provision of law, in 

8 carrying out this paragraph, the Secretary shall 

9 not— 

10 (i) identify nonleasing alternative 

11 courses of action; or 

12 (ii) analyze the environmental effects 

13 of those courses of action. 

14 (C) IDENTIFICATION OF PREFERRED AC15 TION.—Not later than 1 year after the date of 

16 enactment of this Act, the Secretary shall iden17 tify only a preferred action and a single leasing 

18 alternative for the first lease sale authorized 

19 under this Act. 

20 (D) EFFECT OF COMPLIANCE.—Notwith21 standing any other provision of law, compliance 

22 with this paragraph shall be considered to sat23 isfy all requirements for the analysis and con24 sideration of the environmental effects of pro25 posed leasing under this Act. 


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

3 local regulatory authority. 

4 (e) LIMITATION ON CLOSED AREAS.—The Secretary 

5 shall not close land within the Coastal Plain to oil and 

6 gas leasing or to exploration, development, or production 

7 except in accordance with this Act. 

8 (f) REGULATIONS.—Not later than 1 year after the 

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

10 State of Alaska, North Slope Borough, Alaska, the City 

11 of Kaktovik, Alaska, and the Arctic Slope Regional Cor12 poration, the Secretary shall promulgate such regulations 

13 as are necessary to carry out this Act. 

14 SEC. 4. LEASE SALES. 

15 (a) IN GENERAL.—Land 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 a lease sale; 

24 (2) the holding of lease sales after the nomina25 tion process described in paragraph (1); and 


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1 (3) public notice of and comment on designa2 tion of areas to be included in, or excluded from, a 

3 lease sale. 

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

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

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

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

8 for lease those tracts the Secretary considers to have the 

9 greatest potential for the discovery of hydrocarbons, tak10 ing into consideration nominations received pursuant to 

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

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

13 shall— 

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

15 enactment of this Act, conduct the first lease sale 

16 under this Act; 

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

18 which the first lease sale is conducted under para19 graph (1), conduct a second lease sale under this 

20 Act; and 

21 (3) conduct additional sales at appropriate in22 tervals if sufficient interest in exploration or devel23 opment exists to warrant the conduct of the addi24 tional sales. 


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

2 (a) IN GENERAL.—Upon payment by a lessee of such 

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

4 shall grant to the highest responsible qualified bidder in 

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

6 any land on the Coastal Plain. 

7 (b) SUBSEQUENT TRANSFERS.— 

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

9 Act may be sold, exchanged, assigned, sublet, or oth10 erwise transferred except with the approval of the 

11 Secretary. 

12 (2) CONDITION FOR APPROVAL.—Before grant13 ing any approval described in paragraph (1), the 

14 Secretary shall consult with and give due consider15 ation to the opinion of the Attorney General. 

16 SEC. 6. LEASE TERMS AND CONDITIONS. 

17 (a) IN GENERAL.—An oil or gas lease issued pursu18 ant to this Act shall— 

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

less than 121 20 ⁄2 percent of the amount or value of the 

21 production removed or sold from the lease, as deter22 mined by the Secretary in accordance with regula23 tions applicable to other Federal oil and gas leases; 

24 (2) provide that the Secretary, after consulta25 tion with the State of Alaska, North Slope Borough, 

26 Alaska, the City of Kaktovik, Alaska, and the Arctic 


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1 Slope Regional Corporation, may close, on a sea2 sonal basis, such portions of the Coastal Plain to ex3 ploratory drilling activities as are necessary to pro4 tect caribou calving areas and other species of fish 

5 and wildlife; 

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

7 Coastal Plain shall be fully responsible and liable for 

8 the reclamation of land within the Coastal Plain and 

9 any other Federal land that is adversely affected in 

10 connection with exploration, development, produc11 tion, or transportation activities within the Coastal 

12 Plain conducted by the lessee or by any of the sub13 contractors or agents of the lessee; 

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

15 convey, by contract or otherwise, the reclamation re16 sponsibility and liability described in paragraph (3) 

17 to another person without the express written ap18 proval of the Secretary; 

19 (5) provide that the standard of reclamation for 

20 land required to be reclaimed under this Act shall 

21 be, to the maximum extent practicable— 

22 (A) a condition capable of supporting the 

23 uses that the land was capable of supporting 

24 prior to any exploration, development, or pro25 duction activities; or 


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1 (B) upon application by the lessee, to a 

2 higher or better standard, as approved by the 

3 Secretary; 

4 (6) contain terms and conditions relating to 

5 protection of fish and wildlife, fish and wildlife habi6 tat, subsistence resources, and the environment as 

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

8 (7) provide that each lessee, and each agent 

9 and contractor of a lessee, shall use their best ef10 forts to provide a fair share of employment and con11 tracting for Alaska Natives and Alaska Native Cor12 porations from throughout the State of Alaska, as 

13 determined by the level of obligation previously 

14 agreed to in the Federal Agreement. 

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

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

17 in recognizing the proprietary interest of the Federal Gov18 ernment in labor stability and in the ability of construction 

19 labor and management to meet the particular needs and 

20 conditions of projects to be developed under the leases 

21 issued pursuant to this Act (including the special concerns 

22 of the parties to those leases), shall require that each les23 see, and each agent and contractor of a lessee, under this 

24 Act negotiate to obtain a project labor agreement for the 


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1 employment of laborers and mechanics on production, 

2 maintenance, and construction under the lease. 

3 SEC. 7. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 

4 (a) NO SIGNIFICANT ADVERSE EFFECT STANDARD

5 TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 

6 In accordance with section 3, the Secretary shall admin7 ister this Act through regulations, lease terms, conditions, 

8 restrictions, prohibitions, stipulations, or other provisions 

9 that— 

10 (1) ensure, to the maximum extent practicable, 

11 that oil and gas exploration, development, and pro12 duction activities on the Coastal Plain will result in 

13 no significant adverse effect on fish and wildlife, fish 

14 and wildlife habitat, subsistence resources, and the 

15 environment; 

16 (2) require the application of the best commer17 cially available technology for oil and gas explo18 ration, development, and production on all new ex19 ploration, development, and production operations; 

20 and 

21 (3) ensure that the maximum surface acreage 

22 covered in connection with the leasing program by 

23 production and support facilities, including airstrips 

24 and any areas covered by gravel berms or piers for 


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1 support of pipelines, does not exceed 2,000 acres on 

2 the Coastal Plain. 

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

4 The Secretary shall require, with respect to any proposed 

5 drilling and related activities on the Coastal Plain, that— 

6 (1) a site-specific environmental analysis be 

7 made of the probable effects, if any, that the drilling 

8 or related activities will have on fish and wildlife, 

9 fish and wildlife habitat, subsistence resources, and 

10 the environment; 

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

12 and mitigate (in that order and to the maximum ex13 tent practicable) any significant adverse effect iden14 tified under paragraph (1); and 

15 (3) the development of the plan occur after con16 sultation with— 

17 (A) each agency having jurisdiction over 

18 matters mitigated by the plan; 

19 (B) the State of Alaska; 

20 (C) North Slope Borough, Alaska; 

21 (D) the City of Kaktovik, Alaska; and 

22 (E) the Arctic Slope Regional Corporation. 

23 (c) REGULATIONS TO PROTECT COASTAL PLAIN

24 FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 

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1 ing program authorized by this Act, the Secretary shall 

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

4 measures designed to ensure, to the maximum extent prac5 ticable, that the activities carried out on the Coastal Plain 

6 under this Act are conducted in a manner consistent with 

7 the purposes and environmental requirements of this Act. 

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

10 regulations, lease terms, conditions, restrictions, prohibi11 tions, and stipulations for the leasing program under this 

12 Act shall require— 

13 (1) compliance with all applicable provisions of 

14 Federal and State environmental law (including reg15 ulations); and 

16 (2) implementation of and compliance with— 

17 (A) standards that are at least as effective 

18 as the safety and environmental mitigation 

19 measures, as described in items 1 through 29 

20 on pages 167 through 169 of the Final State21 ment; 

22 (B) reclamation and rehabilitation require23 ments in accordance with this Act for the re24 moval from the Coastal Plain of all oil and gas 

25 development and production facilities, strucVerDate Sep 11 2014 00:56 Feb 24, 2015 Jkt 049200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S494.IS S494

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1 tures, and equipment on completion of oil and 

2 gas production operations, except in a case in 

3 which the Secretary determines that those fa4 cilities, structures, or equipment— 

5 (i) would assist in the management of 

6 the Arctic National Wildlife Refuge; and 

7 (ii) are donated to the United States 

8 for that purpose; and 

9 (C) reasonable stipulations for protection 

10 of cultural and archaeological resources. 

11 (e) ACCESS TO PUBLIC LAND.—The Secretary 

12 shall— 

13 (1) manage public land in the Coastal Plain in 

14 accordance with subsections (a) and (b) of section 

15 811 of the Alaska National Interest Lands Con16 servation Act (16 U.S.C. 3121); and 

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

19 traditional uses. 

20 SEC. 8. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL 

21 PLAIN. 

22 For purposes of section 1102(4)(A) of the Alaska Na23 tional Interest Lands Conservation Act (16 U.S.C. 

24 3162(4)(A)), any rights-of-way or easements across the 

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1 tion, or transportation of oil and gas shall be considered 

2 to be established incident to the management of the Coast3 al Plain under this section. 

4 SEC. 9. CONVEYANCE. 

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

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

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

8 clarify land ownership patterns in the Coastal Plain, the 

9 Secretary shall— 

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

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

16 Public Land Order 6959, in accordance with the 

17 terms and conditions of the agreement between the 

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

20 Kaktovik Inupiat Corporation, dated January 22, 

21 1993; and 

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

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1 tween that corporation and the United States, dated 

2 August 9, 1983. 

3 SEC. 10. LOCAL GOVERNMENT IMPACT AID AND COMMU4 NITY SERVICE ASSISTANCE. 

5 (a) ESTABLISHMENT OF FUND.— 

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

7 Treasury a fund to be known as the ‘‘Coastal Plain 

8 Local Government Impact Aid Assistance Fund’’ 

9 (referred to in this section as the ‘‘Fund’’). 

10 (2) USE.—Amounts in the Fund may be used 

11 only to provide financial assistance in accordance 

12 with subsection (b). 

13 (3) DEPOSITS.—Subject to paragraph (4), of 

14 amounts of revenues payable to the State of Alaska 

15 under section 35 of the Mineral Leasing Act (30 

16 U.S.C. 191) that are derived from rents, bonuses, 

17 and royalties from Federal leases and lease sales au18 thorized under this Act— 

19 (A) $28,000,000 shall be deposited in the 

20 Fund for the first fiscal year for which amounts 

21 are received by the United States from Federal 

22 leases and lease sales authorized under this Act; 

23 and 

24 (B) $7,000,000 shall be deposited in the 

25 Fund for each fiscal year thereafter. 


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1 (4) LIMITATION ON DEPOSITS.—The total 

2 amount in the Fund may not exceed $28,000,000. 

3 (5) INVESTMENT OF BALANCES.—The Sec4 retary of the Treasury shall invest amounts in the 

5 Fund in interest-bearing securities of the United 

6 States. 

7 (b) FINANCIAL ASSISTANCE.— 

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

9 amounts available from the Fund to provide timely 

10 financial assistance to North Slope Borough, Alaska, 

11 the City of Kaktovik, Alaska, and any other bor12 ough, municipal subdivision, village, or other com13 munity in the State of Alaska that is directly im14 pacted by exploration for, or the production of, oil 

15 or gas on the Coastal Plain under this Act, as deter16 mined by the Secretary. 

17 (2) USE OF ASSISTANCE.—Financial assistance 

18 provided under this subsection may be used only 

19 for— 

20 (A) planning for mitigation of the potential 

21 effects of oil and gas exploration and develop22 ment on environmental, social, cultural, rec23 reational, and subsistence values; 

24 (B) implementing mitigation plans and 

25 maintaining mitigation projects; 


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1 (C) developing, carrying out, and maintain2 ing projects and programs that provide new or 

3 expanded public facilities and services to ad4 dress needs and problems associated with the 

5 effects described in subparagraph (A), including 

6 firefighting, police, water, waste treatment, 

7 medivac, and medical services; and 

8 (D) the establishment by North Slope Bor9 ough, Alaska, of a coordination office in the 

10 City of Kaktovik, Alaska— 

11 (i) to coordinate with and advise de12 velopers on local conditions of, impacts on, 

13 and the history of the areas utilized for de14 velopment under this Act; and 

15 (ii) to provide to the Committee on 

16 Natural Resources of the House of Rep17 resentatives and the Committee on Energy 

18 and Natural Resources of the Senate an 

19 annual report that describes the status of 

20 coordination between developers and the 

21 communities affected by development 

22 under this Act. 

23 (c) APPLICATION.— 

24 (1) IN GENERAL.—To receive assistance under 

25 subsection (b), a community described in subsection 


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1 (b)(1) shall submit to the Secretary an application 

2 for assistance, in such form and under such proce3 dures as the Secretary may prescribe by regulation. 

4 (2) NORTH SLOPE BOROUGH COMMUNITIES.—A 

5 community located in North Slope Borough, Alaska, 

6 may apply for assistance under this section either di7 rectly with the Secretary or through the North Slope 

8 Borough. 

9 (3) APPLICATION ASSISTANCE.—The Secretary 

10 shall work closely with and assist North Slope Bor11 ough, Alaska, and other communities eligible for as12 sistance under this section in developing and submit13 ting applications under this subsection. 

14 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to the Secretary from the 

16 Fund $7,000,000 for each fiscal year to provide financial 

17 assistance under this section. 

Æ 


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