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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3534 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3534

      To provide greater efficiencies, transparency, returns, and 
  accountability in the administration of Federal mineral and energy 
  resources by consolidating administration of various Federal energy 
minerals management and leasing programs into one entity to be known as 
the Office of Federal Energy and Minerals Leasing of the Department of 
                 the Interior, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 8, 2009

  Mr. Rahall introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL

 
      To provide greater efficiencies, transparency, returns, and 
  accountability in the administration of Federal mineral and energy 
  resources by consolidating administration of various Federal energy 
minerals management and leasing programs into one entity to be known as 
the Office of Federal Energy and Minerals Leasing of the Department of 
                 the Interior, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Consolidated Land, 
Energy, and Aquatic Resources Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
    TITLE I--CONSOLIDATION OF DEPARTMENT OF THE INTERIOR ENERGY AND 
                       MINERALS LEASING PROGRAMS

Sec. 101. Establishment of the Office of Federal Energy and Minerals 
                            Leasing.
Sec. 102. Officers and employees.
Sec. 103. Ethics.
                  TITLE II--OIL AND GAS ROYALTY REFORM

Sec. 201. Amendments to definitions.
Sec. 202. Compliance reviews.
Sec. 203. Clarification of liability for royalty payments.
Sec. 204. Required recordkeeping.
Sec. 205. Fines and penalties.
Sec. 206. Interest on overpayments.
Sec. 207. Adjustments and refunds.
Sec. 208. Conforming amendment.
Sec. 209. Obligation period.
Sec. 210. Notice regarding tolling agreements and subpoenas.
Sec. 211. Appeals and final agency action.
Sec. 212. Assessments.
Sec. 213. Collection and production accountability.
Sec. 214. Natural gas reporting.
Sec. 215. Penalty for late or incorrect reporting of data.
Sec. 216. Required recordkeeping.
Sec. 217. Limitation on royalty in-kind program.
Sec. 218. Shared civil penalties.
Sec. 219. Applicability to other minerals.
Sec. 220. Entitlements.
                 TITLE III--OIL AND GAS LEASING REFORMS

Sec. 301. Diligent development.
Sec. 302. Reporting requirements.
Sec. 303. Notice requirements.
Sec. 304. Oil and gas leasing system.
Sec. 305. Electronic reporting.
Sec. 306. Best management practices.
Sec. 307. Coal mine methane recovery.
Sec. 308. Environmental review.
Sec. 309. Amendments to Outer Continental Shelf Lands Act.
    TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION FUND

Sec. 401. Amendments to the Land and Water Conservation Fund Act of 
                            1965.
Sec. 402. Extension of the land and water conservation fund.
Sec. 403. Permanent funding.
Sec. 404. Allocation of funds.
                 TITLE V--NEW ONSHORE LEASING AUTHORITY

                   Subtitle A--Solar and Wind Leasing

Sec. 501. Authority to issue commercial leases for wind and solar 
                            projects on Federal lands.
Sec. 502. Land management.
Sec. 503. Revenues.
Sec. 504. Recordkeeping and reporting requirements.
Sec. 505. Audits.
Sec. 506. Trade secrets.
Sec. 507. Interest and Substantial Underreporting Assessments.
Sec. 508. Indian savings provision.
                      Subtitle B--Uranium Leasing

Sec. 511. Federal lands uranium leasing.
      TITLE VI--OUTER CONTINENTAL SHELF COORDINATION AND PLANNING

Sec. 601. Regional Outer Continental Shelf coordination.
Sec. 602. Regional Outer Continental Shelf Councils.
Sec. 603. Regional Outer Continental Shelf strategic plans.
Sec. 604. Regulations.
Sec. 605. Ocean Resources Conservation and Assistance Fund.
Sec. 606. Waiver.
Sec. 607. Transition period.
Sec. 608. Alternative energy on the Outer Continental Shelf.
                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the 
                            oil and gas industry.
Sec. 702. Production incentive fee.
Sec. 703. Leasing on Indian lands.
Sec. 704. Offshore aquaculture clarification.

SEC. 2. DEFINITIONS.

    For the purposes of this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
            (2) Affected indian tribe.--The term ``affected Indian 
        tribe'' means an Indian tribe that has federally reserved 
        rights that are affirmed by treaty, statute, Executive order, 
        Federal court order, or other Federal law in the area at issue.
            (3) Alternative energy.--The term ``alternative energy'' 
        means electricity generated by a renewable energy resource.
            (4) Coastal state.--The term ``coastal State'' has the 
        meaning given the term in section 304 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1453).
            (5) Director.--The term ``Director'' means the Director of 
        the Leasing Office, except as otherwise provided in this Act.
            (6) Ecosystem-based management.--The term ``ecosystem-based 
        management'' means an integrated approach to management that--
                    (A) considers the entire ecosystem, including 
                humans, and accounts for interactions among the 
                ecosystem, the range of activities affecting the 
                ecosystem, and the management of such activities;
                    (B) aims to maintain ecosystems in a healthy, 
                productive, sustainable, and resilient condition so 
                that they can provide the services humans want and 
                need;
                    (C) emphasizes the protection of ecosystem 
                structure, function, patterns, and important processes;
                    (D) considers the impacts, including cumulative 
                impacts, of the range of activities affecting an 
                ecosystem that fall within geographical boundaries of 
                the ecosystem;
                    (E) explicitly accounts for the interconnectedness 
                within an ecosystem, such as food webs, and 
                acknowledges the interconnectedness among systems, such 
                as between air, land, and sea; and
                    (F) integrates ecological, social, economic, 
                cultural, and institutional perspectives, recognizing 
                their strong interdependencies.
            (7) Function.--The term ``function'' includes authorities, 
        powers, rights, privileges, immunities, programs, projects, 
        activities, duties, and responsibilities.
            (8) Important ecological area.--The term ``important 
        ecological area'' means an area that contributes significantly 
        to local or larger marine ecosystem health or is an especially 
        unique or sensitive marine ecosystem.
            (9) Indian land.--The term ``Indian land'' has the meaning 
        given the term in section 502(a) of title V of Public Law 109-
        58 (25 U.S.C. 3501(2)).
            (10) Leasing office.--The term ``Leasing Office'' means the 
        Office of Federal Energy and Minerals Leasing established under 
        this Act.
            (11) Marine ecosystem health.--The term ``marine ecosystem 
        health'' means the ability of an ecosystem in ocean and coastal 
        waters to support and maintain patterns, important processes, 
        and productive, sustainable, and resilient communities of 
        organisms, having a species composition, diversity, and 
        functional organization resulting from the natural habitat of 
        the region, such that it is capable of supporting a variety of 
        activities and providing a complete range of ecological 
        benefits. Such an ecosystem would be characterized by a variety 
        of factors, including--
                    (A) a complete diversity of native species and 
                habitat wherein each native species is able to maintain 
                an abundance, population structure, and distribution 
                supporting its ecological and evolutionary functions, 
                patterns, and processes; and
                    (B) a physical, chemical, geological, and microbial 
                environment that is necessary to achieve such 
                diversity.
            (12) Mineral.--The term ``mineral'' has the same meaning 
        that the term ``minerals'' has in section 2(q) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331(q)).
            (13) Nonrenewable energy resource.--The term ``nonrenewable 
        energy resource'' means oil and natural gas.
            (14) Outer continental shelf.--The term ``Outer Continental 
        Shelf'' has the meaning that the term ``outer Continental 
        Shelf'' has in the Outer Continental Shelf Lands Act (43 U.S.C. 
        1331 et seq.).
            (15) Public land state.--The term ``public land State'' 
        means--
                    (A) each of the eleven contiguous Western States 
                (as that term is defined in section 103 of the Federal 
                Land Policy and Management Act of 1976 (43 U.S.C. 
                1702)); and
                    (B) Alaska.
            (16) Regional ocean partnership.--The term ``Regional Ocean 
        Partnership'' means voluntary, collaborative management 
        initiatives developed and entered into by the Governors of two 
        or more coastal States or created by an interstate compact to 
        implement policies and activities identified under special area 
        management plans or other agreements developed and approved by 
        the Governors through authority granted to them under the 
        Coastal Zone Management Act (16 U.S.C. 1451 et seq.).
            (17) Renewable energy resource.--The term ``renewable 
        energy resource'' means each of the following:
                    (A) Wind energy.
                    (B) Solar energy.
                    (C) Geothermal energy.
                    (D) Biomass or landfill gas.
                    (E) A hydropower resource that is a qualified 
                energy resource (as that term is defined in section 
                45(c)(1) of the Internal Revenue of 1986, as amended by 
                section 1301(c) of the Energy Policy Act of 2005 (119 
                Stat. 987)).
                    (F) Marine and hydrokinetic renewable energy, as 
                that term is defined in section 632 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17211).
            (18) Secretaries.--The term ``Secretaries'' means the 
        Secretary of the Interior and the Secretary of Commerce.
            (19) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, except as otherwise provided in this Act.
            (20) Surface use plan of operations.--The term ``surface 
        use plan of operations'' means a plan for surface use, 
        disturbance, and reclamation of Federal lands for energy 
        development that is submitted by a lessee and approved by the 
        relevant land management agency.
            (21) Terms defined in other law.--Each of the terms 
        ``Federal land'', ``lease'', ``lease site'', and ``mineral 
        leasing law'' has the meaning that term has under the Federal 
        Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et 
        seq.).
            (22) Tribe.--The term ``tribe'' has the same meaning as 
        that term has in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(e)).

    TITLE I--CONSOLIDATION OF DEPARTMENT OF THE INTERIOR ENERGY AND 
                       MINERALS LEASING PROGRAMS

SEC. 101. ESTABLISHMENT OF THE OFFICE OF FEDERAL ENERGY AND MINERALS 
              LEASING.

    (a) Establishment.--There is established in the Department of the 
Interior the Office of Federal Energy and Minerals Leasing, which shall 
be under the direction and control of the Director.
    (b) Functions.--
            (1) Transferred functions.--Within 1 year after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        transfer to the Director of the Leasing Office--
                    (A) the functions of the Minerals Management 
                Service as it existed on June 1, 2009, except for the 
                auditing and compliance management section;
                    (B) the functions of the Oil and Gas Management 
                program of the Bureau of Land Management as in 
                existence as of June 1, 2009, except as provided by 
                this Act; and
                    (C) any other functions assigned by the Secretary 
                to those programs after June 1, 2009, and before the 
                date of the enactment of this Act.
            (2) Other functions.--In addition to the functions 
        transferred under paragraph (1), the functions of the Office 
        shall include the following:
                    (A) Management of the leasing and development 
                otherwise authorized by law of all Federal waters on 
                the Outer Continental Shelf for purposes of mineral, 
                nonrenewable, and renewable energy resource 
                exploration, siting, production, and development in a 
                manner protective of the marine, coastal, and human 
                environment.
                    (B) Management of the following leasing activities 
                associated with development of renewable energy 
                resources and oil and natural gas energy resources 
                located on lands managed by the Bureau of Land 
                Management and the Forest Service in a manner 
                protective of natural ecosystems and the human 
                environment:
                            (i) Establishment of fair market value for 
                        onshore lease sales.
                            (ii) Conduct of lease sales.
                            (iii) Issuance and oversight of onshore 
                        leases.
                            (iv) Issuance of permits to drill on lands 
                        that are within areas that have been approved 
                        for energy development by the relevant land 
                        management agency under a surface use plan of 
                        operations.
                            (v) Compliance activities, including timely 
                        payments of rentals, royalties and other fees, 
                        production verification, inspection and 
                        enforcement.
                    (C) Administration of a program to ensure the 
                timely and accurate collection, distribution, and 
                accounting for revenues owed by holders of mineral, 
                renewable, and nonrenewable energy leases on Federal 
                lands and offshore and Indian lands.
    (c) Tribal Lands.--Except as provided in subsection (b)(2)(C), 
nothing in this title shall apply with respect to Indian lands.
    (d) Administration.--The Office shall administer its functions by 
such means as are reasonably necessary to carry out the purposes of 
this Act, the Outer Continental Shelf Lands Act (43 U.S.C. 1301 et 
seq.), the Mineral Leasing Act (30 U.S.C. 181 et seq.), the Mineral 
Leasing Act for Acquired Lands (30 U.S.C. 351 et seq.), the Federal Oil 
and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), the 
Energy Policy Act of 2005 (Public Law 109-58), the Federal Oil and Gas 
Royalty Simplification and Fairness Act of 1996 (Public Law 104-185), 
the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 
U.S.C. 1600 et seq.), the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.), and all other applicable Federal laws.
    (e) Land Use Planning.--Nothing in this title affects the land use 
planning authorities of the Bureau of Land Management under the Federal 
Land Policy and Management Act of 1976 or of the Forest Service under 
the National Forest Management Act of 1976 (Public Law 94-588).
    (f) Responsibilities of Land Management Agencies.--In addition to 
the land use planning responsibilities authorized under the Federal 
Land Policy Management Act of 1976, the National Forest Management Act 
of 1976, and the Forest and Rangeland Renewable Resources Planning Act 
of 1974, the Director of the Bureau of Land Management and the Chief of 
the Forest Service shall be responsible for the following activities 
related to energy leasing, exploration, and development on land under 
his or her authority:
            (1) Establishment of best management practices for 
        environmentally sound energy production.
            (2) Review and approval of general land use plans that 
        identify areas in which energy development would not conflict 
        with other land uses.
            (3) Determination and enforcement of conditions for surface 
        occupancy.
            (4) Authorization of any modification, waiver, or exception 
        to a stipulation or other condition to be included in a lease 
        issued by the Leasing Office.
            (5) Establishment and enforcement of reclamation 
        requirements.
            (6) Establishment and enforcement of financial assurances 
        that shall be sufficient to assure the completion of 
        reclamation and restoration satisfying the requirements of 
        appropriate law if the work were to be performed by the 
        Secretary concerned in the event of forfeiture, including the 
        construction and maintenance costs for any treatment facilities 
        necessary to meet Federal and State environmental requirements. 
        The calculation of such amount shall take into account the 
        maximum level of financial exposure that may arise during the 
        leasing activity and administrative costs associated with a 
        government agency reclaiming the site.
            (7) Inspection of areas of operation to ensure that 
        operations are in compliance with approved surface use land 
        plans.
            (8) Issuance of notices of noncompliance lease cancellation 
        for noncompliance with terms of permits and plans.
            (9) Such other activities that either of the Secretaries 
        determines are necessary to ensure that energy development on 
        Bureau of Land Management and Forest Service lands is 
        accomplished in a manner protective of natural ecosystems and 
        the human environment.
    (g) Inspection Authority.--The responsibilities delineated in 
subsection (f) do not limit the authority of the Director of the 
Leasing Office to issue notices of non-compliance, assess civil 
penalties, or provide for lease cancellation in the event that an 
employee of the Leasing Office identifies violations of a surface use 
plan of operations while conducting production inspections or other 
inspections under the auspices of the Leasing Office.
    (h) Audits.--In order to ensure that the fiduciary duties of the 
United States on behalf of the American people, as they relate to 
development of Federal energy and mineral resources, are fully 
realized, no later than one year after the date of enactment, the 
Secretary shall transfer to the Inspector General of the Department of 
the Interior the functions of the Audit and Compliance Management 
Section of the Minerals Management Service.

SEC. 102. OFFICERS AND EMPLOYEES.

    (a) Director.--
            (1) Appointment.--The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate, on 
        the basis of--
                    (A) professional competence; and
                    (B) capacity to--
                            (i) administer the provisions of this Act; 
                        and
                            (ii) ensure that the fiduciary duties of 
                        the United States Government on behalf of the 
                        American people, as they relate to development 
                        of energy resources, are duly met.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for Level V of the Executive Schedule under 
        section 5315 of title 5, United States Code.
            (3) Conforming amendment.--Section 5315 of title 5, United 
        States Code, is amended by adding at the end the following new 
        item:
            ``Director, Office of Federal Energy and Minerals 
        Leasing.''.
    (b) Other Officers and Employees.--
            (1) In general.--There shall also be in the Leasing Office 
        such subordinate officers and employees as may be appropriated 
        for by Congress.
            (2) Transfers.--Within one year after the date of enactment 
        of this Act, the Secretary shall permanently transfer from the 
        Bureau of Land Management and the Minerals Management Service 
        and or other bureaus of the Department of the Interior to the 
        Leasing Office such personnel as necessary to administer the 
        programs authorized to be carried out or managed by the Leasing 
        Office under this Act.
    (c) Regulations.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall issue regulations that--
            (1) require that all Leasing Office employees that conduct 
        audits or compliance reviews for the Leasing Office shall meet 
        professional auditor qualifications that are consistent with 
        the latest revision of the Government Auditing Standards 
        published by the Government Accountability Office; and
            (2) ensure that all such audits conducted by the Department 
        of the Interior are performed in accordance with such 
        standards.

SEC. 103. ETHICS.

    The Secretary shall certify annually that all Leasing Office 
employees having regular, direct contact with lessees and operators as 
a function of their official duties are in full compliance with all 
Federal employee ethics laws and regulations, under the Ethics in 
Government Act of 1978 (5 U.S.C. App.) and part 2635 of title 5, Code 
of Federal Regulations.

                  TITLE II--OIL AND GAS ROYALTY REFORM

SEC. 201. AMENDMENTS TO DEFINITIONS.

    Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1702) is amended--
            (1) in paragraph (8), by striking the semicolon and 
        inserting ``including but not limited to the Act of October 20, 
        1914 (38 Stat. 741); the Act of February 25, 1920 (41 Stat. 
        437); the Act of April 17, 1926 (44 Stat. 301); the Act of 
        February 7, 1927 (44 Stat. 1057); and all Acts heretofore or 
        hereafter enacted that are amendatory of or supplementary to 
        any of the foregoing Acts;''
            (2) in paragraph (20)(A), by striking ``: Provided, That'' 
        and all that follows through ``subject of the judicial 
        proceeding'';
            (3) in paragraph (20)(B), by striking ``(with written 
        notice to the lessee who designated the designee)'';
            (4) in paragraph (23)(A), by striking ``(with written 
        notice to the lessee who designated the designee)'';
            (5) by striking paragraph (24) and inserting the following:
            ``(24) `designee' means a person who pays, offsets, or 
        credits monies, makes adjustments, requests and receives 
        refunds, or submits reports with respect to payments a lessee 
        must make pursuant to section 102(a);'';
            (6) in paragraph (25)(B)--
                    (A) by striking ``(subject to the provisions of 
                section 102(a) of this Act)''; and
                    (B) in clause (ii) by striking the matter after 
                subclause (IV) and inserting the following:
                        ``that arises from or relates to any lease, 
                        easement, right-of-way, permit, or other 
                        agreement regardless of form administered by 
                        the Secretary for, or any mineral leasing law 
                        related to, the exploration, production, and 
                        development of oil and gas or other energy 
                        resource on Federal lands or the Outer 
                        Continental Shelf;'';
            (7) in paragraph (29), by inserting ``or permit'' after 
        ``lease''; and
            (8) by striking ``and'' after the semicolon at the end of 
        paragraph (32), by striking the period at the end of paragraph 
        (33) and inserting a semicolon, and by adding at the end the 
        following new paragraphs:
            ``(34) `compliance review' means a full-scope or a limited-
        scope examination of a lessee's lease accounts to compare one 
        or all elements of the royalty equation (volume, value, royalty 
        rate, and allowances) against anticipated elements of the 
        royalty equation to test for variances; and
            ``(35) `marketing affiliate' means an affiliate of a lessee 
        whose function is to acquire the lessee's production and to 
        market that production.''.

SEC. 202. COMPLIANCE REVIEWS.

    Section 101 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1711) is amended by adding at the end the following new 
subsection:
    ``(d) The Secretary may, as an adjunct to audits of accounts for 
leases, utilize compliance reviews of accounts. Such reviews shall not 
constitute nor substitute for audits of lease accounts. Any disparity 
uncovered in such a compliance review shall be immediately referred to 
a program auditor. The Secretary shall, before completion of a 
compliance review, provide notice of the review to designees whose 
obligations are the subject of the review.''.

SEC. 203. CLARIFICATION OF LIABILITY FOR ROYALTY PAYMENTS.

    Section 102(a) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
    ``(a) In order to increase receipts and achieve effective 
collections of royalty and other payments, a lessee who is required to 
make any royalty or other payment under a lease, easement, right-of-
way, permit, or other agreement, regardless of form, or under the 
mineral leasing laws, shall make such payment in the time and manner as 
may be specified by the Secretary or the applicable delegated State. 
Any person who pays, offsets, or credits monies, makes adjustments, 
requests and receives refunds, or submits reports with respect to 
payments the lessee must make is the lessee's designee under this Act. 
Notwithstanding any other provision of this Act to the contrary, a 
designee shall be liable for any payment obligation of any lessee on 
whose behalf the designee pays royalty under the lease. The person 
owning operating rights in a lease and a person owning legal record 
title in a lease shall be liable for that person's pro rata share of 
payment obligations under the lease.''.

SEC. 204. REQUIRED RECORDKEEPING.

    Section 103(b) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1712(a)) is amended by striking ``6'' and inserting 
``7''.

SEC. 205. FINES AND PENALTIES.

    Section 109 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1719) is amended--
            (1) in subsection (a) in the matter following paragraph 
        (2), by striking ``$500'' and inserting ``$1,000'';
            (2) in subsection (a)(2)(B), by inserting ``(i)'' after 
        ``such person'', and by striking the period at the end and 
        inserting ``; and (ii) has not received notice, pursuant to 
        paragraph (1), of more than two prior violations in the current 
        calendar year.'';
            (3) in subsection (b), by striking ``$5,000'' and inserting 
        ``$10,000'';
            (4) in subsection (c)--
                    (A) in paragraph (2), by striking ``; or'' and 
                inserting ``, including any failure or refusal to 
                promptly tender requested documents;'';
                    (B) in paragraph (3)--
                            (i) by striking ``$10,000'' and inserting 
                        ``$20,000''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) knowingly or willfully fails to make any royalty 
        payment in the amount or value as specified by statute, 
        regulation, order, or terms of the lease; or
            ``(5) fails to correctly report and timely provide 
        operations or financial records necessary for the Secretary or 
        any authorized designee of the Secretary to accomplish lease 
        management responsibilities,'';
            (5) in subsection (d), by striking ``$25,000'' and 
        inserting ``$50,000'';
            (6) in subsection (h), by striking ``by registered mail'' 
        and inserting ``a common carrier that provides proof of 
        delivery''; and
            (7) by adding at the end the following subsection:
    ``(l)(1) Any determination by the Secretary or a designee of the 
Secretary that a person has committed a violation under subsection (a), 
(c), or (d)(1) shall toll any applicable statute of limitations for all 
oil and gas leases held or operated by such person, until the later 
of--
            ``(A) the date on which the person corrects the violation 
        and certifies that all violations of a like nature have been 
        corrected for all of the oil and gas leases held or operated by 
        such person; or
            ``(B) the date a final, nonappealable order has been issued 
        by the Secretary or a court of competent jurisdiction.
    ``(2) A person determined by the Secretary or a designee of the 
Secretary to have violated subsection (a), (c), or (d)(1) shall 
maintain all records with respect to the person's oil and gas leases 
until the later of--
            ``(A) the date the Secretary releases the person from the 
        obligation to maintain such records; and
            ``(B) the expiration of the period during which the records 
        must be maintained under section 103(b).''.

SEC. 206. INTEREST ON OVERPAYMENTS.

    Section 111 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721) is amended--
            (1) by amending subsections (h) and (i) to read as follows:
    ``(h) Interest shall not be allowed nor paid nor credited on any 
overpayment, and no interest shall accrue from the date such 
overpayment was made.
    ``(i) A lessee or its designee may make a payment for the 
approximate amount of royalties (hereinafter in this subsection 
referred to as the `estimated payment') that would otherwise be due for 
such lease by the date royalties are due for that lease. When an 
estimated payment is made, actual royalties are payable at the end of 
the month following the month in which the estimated payment is made. 
If the estimated payment was less than the amount of actual royalties 
due, interest is owed on the underpaid amount. If the lessee or its 
designee makes a payment for such actual royalties, the lessee or its 
designee may apply the estimated payment to future royalties. Any 
estimated payment may be adjusted, recouped, or reinstated by the 
lessee or its designee provided such adjustment, recoupment or 
reinstation is made within the limitation period for which the date 
royalties were due for that lease.'';
            (2) by striking subsection (j); and
            (3) in subsection (k)(4)--
                    (A) by striking ``or overpaid royalties and 
                associated interest''; and
                    (B) by striking ``, refunded, or credited''.

SEC. 207. ADJUSTMENTS AND REFUNDS.

    Section 111A of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721a) is amended--
            (1) in subsection (a)(3), by inserting ``(A)'' after 
        ``(3)'', and by striking the last sentence and inserting the 
        following:
                    ``(B) Except as provided in subparagraph (C), no 
                adjustment may be made with respect to an obligation 
                that is the subject of an audit or compliance review 
                after completion of the audit or compliance review, 
                respectively, unless such adjustment is approved by the 
                Secretary or the applicable delegated State, as 
                appropriate.
                    ``(C) If an overpayment is identified during an 
                audit, the Secretary shall allow a credit in the amount 
                of the overpayment.'';
            (2) in subsection (a)(4)--
                    (A) by striking ``six'' and inserting ``four''; and
                    (B) by striking ``shall'' and inserting ``may''; 
                and
            (3) in subsection (b)(1) by striking ``and'' after the 
        semicolon at the end of subparagraph (C), by striking the 
        period at the end of subparagraph (D) and inserting ``; and'', 
        and by adding at the end the following:
                    ``(E) is made within the adjustment period for that 
                obligation.''.

SEC. 208. CONFORMING AMENDMENT.

    Section 114 of the Federal Oil and Gas Royalty Management Act of 
1982 is repealed.

SEC. 209. OBLIGATION PERIOD.

    Section 115(c) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following 
new paragraph:
            ``(3) Adjustments.--In the case of an adjustment under 
        section 111A(a) in which a recoupment by the lessee results in 
        an underpayment of an obligation, for purposes of this Act the 
        obligation becomes due on the date the lessee or its designee 
        makes the adjustment.''.

SEC. 210. NOTICE REGARDING TOLLING AGREEMENTS AND SUBPOENAS.

    (a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and 
Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by 
striking ``(with notice to the lessee who designated the designee)''.
    (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by 
striking ``(with notice to the lessee who designated the designee, 
which notice shall not constitute a subpoena to the lessee)''.

SEC. 211. APPEALS AND FINAL AGENCY ACTION.

    Paragraphs (1) and (2) of section 115(h) the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(h)) are amended by 
striking ``33'' each place it appears and inserting ``48''.

SEC. 212. ASSESSMENTS.

    Section 116 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1724) is repealed.

SEC. 213. COLLECTION AND PRODUCTION ACCOUNTABILITY.

    (a) Pilot Project.--Within two years after the date of enactment of 
this Act, the Secretary shall complete a pilot project with willing 
operators of oil and gas leases on the Outer Continental Shelf that 
assesses the costs and benefits of automatic transmission of oil and 
gas volume and quality data produced under Federal leases on the Outer 
Continental Shelf in order to improve the production verification 
systems used to ensure accurate royalty collection and audit.
    (b) Report.--The Secretary shall submit to Congress a report on 
findings and recommendations of the pilot project within 3 years after 
the date of enactment of this Act.

SEC. 214. NATURAL GAS REPORTING.

    The Secretary shall, within 180 days after the date of enactment of 
this Act, implement the steps necessary to ensure accurate 
determination and reporting of BTU values of natural gas from all 
Federal oil and gas leases to ensure accurate royalty payments to the 
United States. Such steps shall include, but not be limited to--
            (1) establishment of consistent guidelines for onshore and 
        offshore BTU information from gas producers;
            (2) development of a procedure to determine the potential 
        BTU variability of produced natural gas on a by-reservoir or 
        by-lease basis;
            (3) development of a procedure to adjust BTU frequency 
        requirements for sampling and reporting on a case-by-case 
        basis;
            (4) systematic and regular verification of BTU information; 
        and
            (5) revision of the ``MMS-2014'' reporting form to record, 
        in addition to other information already required, the natural 
        gas BTU values that form the basis for the required royalty 
        payments.

SEC. 215. PENALTY FOR LATE OR INCORRECT REPORTING OF DATA.

    (a) In General.--The Secretary shall issue regulations by not later 
than 1 year after the date of enactment of this Act that establish a 
civil penalty for late or incorrect reporting of data under the Federal 
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.).
    (b) Amount.--The amount of the civil penalty shall be--
            (1) an amount (subject to paragraph (2)) that the Secretary 
        determines is sufficient to ensure filing of data in accordance 
        with that Act; and
            (2) not less than $10 for each failure to file correct data 
        in accordance with that Act.
    (c) Content of Regulations.--Except as provided in subsection (b), 
the regulations issued under this section shall be substantially 
similar to part 216.40 of title 30, Code of Federal Regulations, as 
most recently in effect before the date of enactment of this Act.

SEC. 216. REQUIRED RECORDKEEPING.

    Within 1 year after the date of enactment of this Act, the 
Secretary shall publish final regulations concerning required 
recordkeeping of natural gas measurement data as set forth in part 
250.1203 of title 30, Code of Federal Regulations (as in effect on the 
date of enactment of this Act), to include operators and other persons 
involved in the transporting, purchasing, or selling of gas under the 
requirements of that rule, under the authority provided in section 103 
of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 
1713).

SEC. 217. LIMITATION ON ROYALTY IN-KIND PROGRAM.

    (a) Mineral Leasing Act.--Section 36 of the Mineral Leasing Act (30 
U.S.C. 192) is amended by inserting before the period at the end of the 
first paragraph the following: ``, except that the Secretary shall not 
conduct a regular program to take oil and gas lease royalties in oil or 
gas''.
    (b) Outer Continental Shelf Lands Act.--Section 27(a) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1353(a)) is amended by striking 
so much as precedes paragraph (2) and inserting the following:

``SEC. 27. FEDERAL PURCHASE AND DISPOSITION OF OIL AND GAS.

    ``Except as may be necessary to comply with sections 6 and 7 of 
this Act, all royalties or net profit shares, or both, accruing to the 
United States under any oil and gas lease issued or maintained in 
accordance with this Act, shall, on demand of the Secretary, be paid in 
oil or gas, except that the Secretary shall not conduct a regular 
program to take oil and gas lease royalties in oil or gas.''.

SEC. 218. SHARED CIVIL PENALTIES.

    Section 206 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1724) is amended by striking ``Such amount shall be 
deleted from any compensation due such State or Indian Tribe under 
section 202 or section 205 or such State under section 205.''.

SEC. 219. APPLICABILITY TO OTHER MINERALS.

    Section 304 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1753) is amended by adding at the end the following new 
subsection:
    ``(e) Applicability to Other Minerals.--
            ``(1) Notwithstanding any other provision of law, sections 
        107, 109, and 110 of this Act and the regulations duly 
        promulgated with respect thereto shall apply to any lease 
        authorizing the development of coal or any other solid mineral 
        on any Federal lands or Indian lands, to the same extent as if 
        such lease were an oil and gas lease, on the same terms and 
        conditions as those authorized for oil and gas leases.
            ``(2) Notwithstanding any other provision of law, sections 
        107, 109, and 110 of this Act and the regulations duly 
        promulgated with respect thereto shall apply with respect to 
        any lease, easement, right-of-way, or other agreement, 
        regardless of form (including any royalty, rent, or other 
        payment due thereunder)--
                    ``(A) under section 8(k) or 8(p) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1337(k) and 
                1337(p)); or
                    ``(B) under the Geothermal Steam Act (30 U.S.C. 
                1001 et seq.), to the same extent as if such lease, 
                easement, right-of-way, or other agreement were an oil 
                and gas lease on the same terms and conditions as those 
                authorized for oil and gas leases.
            ``(3) For the purposes of this subsection, the term `solid 
        mineral' means any mineral other than oil, gas, and geo-
        pressured-geothermal resources, that is authorized by an Act of 
        Congress to be produced from public lands (as that term is 
        defined in section 103 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1702)).''.

SEC. 220. ENTITLEMENTS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall publish final regulations prescribing when a 
Federal lessee or designee must report and pay royalties on the volume 
of oil and gas it takes under either a Federal or Indian lease or on 
the volume to which it is entitled to based upon its ownership interest 
in the Federal or Indian lease. The Secretary shall give consideration 
to requiring 100 percent entitlement reporting and paying based upon 
the lease ownership.

                 TITLE III--OIL AND GAS LEASING REFORMS

SEC. 301. DILIGENT DEVELOPMENT.

    (a) Regulations.--The Secretary shall issue regulations within one 
year after the date of enactment of this Act that define ``diligent 
development'' for purposes of all new leases issued under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.) and all new leases issued under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.). Such 
regulations shall--
            (1) include benchmarks for oil and gas development that 
        will ensure that leaseholders take all appropriate measures 
        necessary to produce oil and gas from each lease that contains 
        commercial quantities of oil and gas within the original term 
        of the lease;
            (2) require each leaseholder to submit to the Secretary a 
        diligent development plan showing how the lessee will meet the 
        benchmarks;
            (3) provide accommodation for development delays, including 
        lease suspensions, directed by the Secretary that restrict 
        diligent development in order to meet environmental 
        stipulations and considerations; and
            (4) require submission of diligent development plans in an 
        electronic format proscribed by the Secretary, which the 
        Secretary shall make available for public review.
    (b) Failure To Comply With Requirements.--If any person fails to 
comply with the requirements of any regulation issued under this 
section, or any order issued to implement such a regulation, with 
respect to a lease, such lease may be terminated by the Secretary.

SEC. 302. REPORTING REQUIREMENTS.

    (a) Biannual Reports.--The Secretary shall require biannual reports 
from each Federal oil and gas lessee that holds a nonproducing lease on 
the actions the lessee has taken to diligently develop each Federal 
lease the lessee holds.
    (b) Electronic Database.--The Secretary shall establish and 
maintain an electronic database that is available to the public that 
identifies each Federal oil and gas lease, each lessee under such 
lease, the acreage held by each such lessee, and the progress made 
toward production under each such lease.

SEC. 303. NOTICE REQUIREMENTS.

    Section 17(f) of the Mineral Leasing Act (30 U.S.C. 226(f)) is 
amended--
            (1) by striking all through the first 2 sentences and 
        inserting the following:
    ``(f)(1) At least 45 days before offering lands for lease under 
this section, and at least 30 days before approving applications for 
permits to drill under the provisions of a lease or substantially 
modifying the terms of any lease issued under this section, the 
Secretary shall provide notice of the proposed action to--
                    ``(A) the general public by posting such notice in 
                the appropriate local office and on the electronic 
                website of the leasing and land management agencies 
                offering the lands for lease;
                    ``(B) all surface land owners in the area of the 
                lands being offered for lease; and
                    ``(C) the holders of special recreation permits for 
                commercial use, competitive events, and other organized 
                activities on the lands being offered for lease.
    ``(2)''; and
            (2) by designating the last sentence as paragraph (3).

SEC. 304. OIL AND GAS LEASING SYSTEM.

    (a) Onshore Oil and Gas Leasing.--Section 17(a) of the Mineral 
Leasing Act (30 U.S.C. 226(a)) is amended to read as follows:
    ``(a)(1) All lands subject to disposition under this Act that are 
known or believed to contain oil or gas deposits may be leased by the 
Secretary.
    ``(2) Leasing activities under this Act shall be conducted to 
assure receipt of fair market value for the lands and resources leased 
and the rights conveyed by the Federal Government.''.
    (b) Competitive Bidding.--Section 17(b) of the Mineral Leasing Act 
(30 U.S.C. 226(b)), is amended by striking so much as precedes 
paragraph (2) and inserting the following:
    ``(b)(1)(A) All lands to be leased shall be leased as provided in 
this paragraph to the highest responsible qualified bidder by 
competitive bidding under general regulations in units of not more than 
2,560 acres, except in Alaska, where units shall be not more than 5,760 
acres. Such units shall be as nearly compact as possible. Lease sales 
shall be conducted by sealed bid. Lease sales shall be held for a State 
on a statewide basis where eligible lands in such States are available 
no more than 3 times per year per State, unless the Secretary of the 
Interior determines additional sales are necessary. A lease shall be 
conditioned upon the payment of a royalty at a rate of not less than 
12.5 percent in amount or value of the production removed or sold from 
the lease. The Secretary may issue a lease to the responsible qualified 
bidder with the highest bid that is equal to or greater than the 
national minimum acceptable bid, with evaluation of the value of the 
lands proposed for lease. The Secretary shall decide whether to accept 
a bid and issue a lease within 90 days following payment by the 
successful bidder of the remainder of the bonus bid, if any, and the 
annual rental for the first lease year. All bids for less than the 
national minimum acceptable bid shall be rejected.
    ``(B)(i) The national minimum acceptable bid shall be $2.50 per 
acre, except that the Secretary may establish a higher minimum 
acceptable bid for leases of areas in a State for all leases awarded 
after the 2-year period beginning on the date of enactment of the 
Consolidated Land, Energy, and Aquatic Resources Act of 2009, if the 
Secretary finds that such a higher amount is necessary--
            ``(I) to enhance financial returns to the United States; 
        and
            ``(II) to promote more efficient management of oil and gas 
        resources on Federal lands.
    ``(ii) The proposal or promulgation of any regulation to establish 
a higher minimum acceptable bid for a State shall not be considered a 
major Federal action that is subject to the requirements of section 
102(2)(C) of the National Environmental Policy Act of 1969.''.
    (c) Rentals.--Section 17(d) of the Mineral Leasing (30 U.S.C. 
226(d)) is amended to read as follows:
    ``(d)(1) During the 2-year period beginning on the date of 
enactment of the Consolidated Land, Energy, and Aquatic Resources Act 
of 2009, all leases issued under this section shall be conditioned upon 
payment by the lessee of a rental of not less than $2.50 per acre per 
year for the first through fifth years of the lease and not less than 
$3 per acre per year for each year thereafter. After the end of such 2-
year period, the Secretary may establish higher rental rates for all 
subsequent years, if the Secretary finds that such action is 
necessary--
            ``(A) to enhance financial returns to the United States; 
        and
            ``(B) to promote more efficient management of oil and gas 
        and alternative energy resources on Federal lands.
    ``(2) A minimum royalty in lieu of rental of not less than the 
rental that otherwise would be required for that lease year shall be 
payable at the expiration of each lease year beginning on or after a 
discovery of oil or gas in paying quantities on the land leased.''.
    (d) Elimination of Noncompetitive Leasing.--The Mineral Leasing Act 
is amended--
            (1) in section 17(b) (30 U.S.C. 226(b)), by striking 
        paragraph (3);
            (2) in section 17 (30 U.S.C. 226) by striking subsection 
        (c);
            (3) in section 17(e) (30 U.S.C. 226(e))--
                    (A) by striking ``Competitive and noncompetitive 
                leases'' and inserting ``Leases''; and
                    (B) by striking ``competitive'';
            (4) in section 31(d)(1) (30 U.S.C. 188(d)(1) by striking 
        ``or section 17(c)'';
            (5) in section 31(e) (30 U.S.C. 188(e))--
                    (A) in paragraph (2) by striking ``, or the 
                inclusion'' and all that follows and inserting a 
                semicolon; and
                    (B) in paragraph (3) by striking ``(A)'' and by 
                striking subparagraph (B);
            (6) by striking section 31(f) (30 U.S.C. 188(f)); and
            (7) in section 31(g) (30 U.S.C. 188(g))--
                    (A) in paragraph (1) by striking ``a competitive'' 
                and all that follows through the semicolon and 
                inserting ``in the same manner as the original lease 
                issued pursuant to section 17;'';
                    (B) by striking paragraph (2); and
                    (C) in paragraph (3) by striking ``, applicable to 
                leases issued under subsection 17(c) of this Act (30 
                U.S.C. 226(c)) except,'' and inserting ``, except''.

SEC. 305. ELECTRONIC REPORTING.

    (a) Rights-of-way.--Section 28(w) of the Mineral Leasing Act (30 
U.S.C. 185(w)) is amended by adding at the end the following:
            ``(4) Upon request of a Committee listed under paragraph 
        (1), that Committee may receive notifications under this 
        subsection in electronic format in addition to in writing, or 
        in electronic format alone. The Committee shall designate to 
        the Secretary the appropriate individual or individuals on the 
        Committee to receive such electronic notices.''.
    (b) Lease Reinstatement.--Section 31(e) of the Mineral Leasing Act 
(30 U.S.C. 188(e)) is amended by adding at the end the following: 
``Upon request of such a Committee, that Committee may receive 
notifications under this subsection in electronic format in addition to 
in writing, or in electronic format alone. The Committee shall 
designate to the Secretary the appropriate individual or individuals on 
the Committee to receive such electronic notices.''.

SEC. 306. BEST MANAGEMENT PRACTICES.

    Not later than one year after the date of enactment of this Act, 
the Secretary of the Interior shall promulgate final regulations that 
require oil and gas operators to use best management practices that 
ensure the sound, efficient, and environmentally responsible 
development of oil and gas on Federal lands in a manner that avoids 
where practical, minimizes, and mitigates actual and anticipated 
impacts to environmental habitat functions resulting from oil and gas 
development. Such regulations may allow the Secretary to approve site-
specific adjustments to address unique issues and circumstances, on a 
case-by-case basis. All such regulations shall be consistent with the 
United States trust responsibility to Indian tribes.

SEC. 307. COAL MINE METHANE RECOVERY.

    Section 2 of the Mineral Leasing Act (30 U.S.C. 201 et seq.) is 
amended by adding at the end the following:
    ``(e) Notwithstanding any other provision of law, any Federal coal 
lease and any modification of an existing coal lease issued under this 
section shall include terms that establish the following:
            ``(1) Coal mine methane released in conjunction with mining 
        activities shall be deemed to be included within the scope of 
        the coal lease if the United States owns both the coal and gas 
        resources.
            ``(2) Any coal lease issued on lands for which the United 
        States owns both the coal and gas resources shall include a 
        requirement that the lessee recover the coal mine methane 
        associated with the leased coal resources to the maximum 
        feasible extent, taking into account the economics of both the 
        mining and methane capture operations.
            ``(3) Prior to the issuance of a lease for recovery of coal 
        by deep mining operations, the Secretary shall require an 
        analysis to determine the extent to which coal mine methane can 
        be economically captured and either put to productive use or 
        flared. The cost of the analysis shall be paid by the lessee 
        and carried out by a person chosen by the Secretary with 
        professional qualifications in the capture of coal mine methane 
        and without financial or other economic ties to the lessee.
            ``(4) If the Secretary determines that recovery or flaring 
        of coal mine methane under a lease is not economically feasible 
        pursuant to paragraph (2), or cannot be carried out in a manner 
        that assures the protection of mine workers, coal mining under 
        such lease may proceed without requiring recovery or flaring of 
        the coal mine methane.
            ``(5) Any coal lease that involves federally owned coal and 
        nonfederally owned gas resources shall require the coal 
        operator to make a reasonable effort to negotiate an 
        arrangement with the gas owner in advance of conducting any 
        mining operations. If the coal lessee and gas owner are unable 
        to arrange for the joint development of the coal and coal mine 
        methane, and if the joint development of those resources is 
        economically feasible, the Secretary may seek a court order to 
        allow coal mining and methane capture to proceed by the coal 
        lessee, subject to a reasonable division of the proceeds from 
        the sale of the coal and methane resources.
            ``(6) Any assessment of fair market value required by 
        subsection (a)(1) shall include the value of any Federal coal 
        mine methane that is associated with Federal coal resources and 
        subject to capture and use under this section.
            ``(7) Any Federal coal mine methane resources that are 
        captured and used or sold pursuant to a Federal coal lease 
        shall be subject to a royalty of not less than 12.5 percent.''.

SEC. 308. ENVIRONMENTAL REVIEW.

    Section 390 of the Energy Policy Act of 2005 (Public Law 109-58; 42 
U.S.C. 15942) is repealed.

SEC. 309. AMENDMENTS TO OUTER CONTINENTAL SHELF LANDS ACT.

    (a) Clarification Relating to Alternative Energy Development.--
Section 8(p)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(p)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``or other applicable law,''; and
            (2) by amending subparagraph (D) to read as follows:
                    ``(D) use, for energy-related purposes, facilities 
                currently or previously used for activities authorized 
                under this Act, except that any oil and gas energy-
                related uses shall not be authorized in areas in which 
                oil and gas preleasing, leasing, and related activities 
                are prohibited by a moratorium.''.
    (b) Noncompetitive Alternative Energy Lease Options.--Section 
8(p)(3) of such Act (43 U.S.C. 1337(p)(3)) is amended to read as 
follows:
            ``(3) Competitive or noncompetitive basis.--Any lease, 
        easement, right-of-way, or other authorization granted under 
        paragraph (1) shall be issued on a competitive basis, unless--
                    ``(A) the lease, easement, right-of-way, or other 
                authorization relates to a project that meets the 
                criteria established under section 388(d) of the Energy 
                Policy Act of 2005 (43 U.S.C. 1337 note; Public Law 
                109-58);
                    ``(B) the lease, easement, right-of-way, or other 
                authorization--
                            ``(i) is for the placement and operation of 
                        a meteorological or marine data collection 
                        facility; and
                            ``(ii) has a term of not more than 5 years; 
                        or
                    ``(C) the Secretary determines, after providing 
                public notice of a proposed lease, easement, right-of-
                way, or other authorization, that no competitive 
                interest exists.''.
    (c) Outer Continental Shelf Leasing Program.--Section 18(a) of such 
Act (43 U.S.C. 1344(a)) is amended by adding at the end the following 
new paragraph:
            ``(5) If a Strategic Plan has been approved under section 
        603 of the Consolidated Land, Energy, and Aquatic Resources Act 
        of 2009 for a region of the outer Continental Shelf before 
        publication of a proposed leasing program under subsection 
        (c)(3), the Secretary--
                    ``(A) shall not include in such leasing program any 
                location in such region unless it is identified in that 
                Strategic Plan as being suitable for oil and gas 
                leasing; and
                    ``(B) shall comply with any restrictions on the 
                timing of leasing of such location as are recommended 
                in that Strategic Plan.''.
    (d) Deposits Into Ocean Resources Conservation and Assistance 
Fund.--Section 8 of such Act (43 U.S.C. 1337) is amended by adding at 
the end the following:
    ``(q) Deposits Into Ocean Resources Conservation and Assistance 
Fund.--For fiscal year 2009 and for each fiscal year thereafter, 10 
percent of the revenues generated by this section in that fiscal year 
shall be deposited in the Ocean Resources Conservation and Assistance 
Fund established by section 605 of the Consolidated Land, Energy, and 
Aquatic Resources Act of 2009.''.

    TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION FUND

SEC. 401. AMENDMENTS TO THE LAND AND WATER CONSERVATION FUND ACT OF 
              1965.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).

SEC. 402. EXTENSION OF THE LAND AND WATER CONSERVATION FUND.

    Section 2 (16 U.S.C. 460l-5) is amended by striking ``September 30, 
2015'' both places it appears and inserting ``September 30, 2040''.

SEC. 403. PERMANENT FUNDING.

    (a) In General.--Section 3 (16 U.S.C. 460l-6) is amended to read as 
follows:

                            ``appropriations

    ``Sec. 3. Of the moneys covered into the fund, $900,000,000 shall 
be available each fiscal year for expenditure for the purposes of this 
Act without further appropriation.''.
    (b) Conforming Amendment.--Section 2(c)(2) (16 U.S.C. 460l-5(c)(2)) 
is amended by striking ``: Provided,'' and all that follows through the 
end of the sentence and inserting a period.

SEC. 404. ALLOCATION OF FUNDS.

    Section 5 (16 U.S.C. 460l-7) is amended to read as follows:

                              ``allocation

    ``Sec. 5. Of the amounts made available for each fiscal year to 
carry out this Act--
            ``(1) 50 percent shall be used to provide financial 
        assistance to States under section 6; and
            ``(2) 50 percent shall be used for Federal purposes under 
        section 7.''.

                 TITLE V--NEW ONSHORE LEASING AUTHORITY

                   Subtitle A--Solar and Wind Leasing

SEC. 501. COMMERCIAL WIND AND SOLAR LEASING PROGRAM.

    (a) In General.--Pursuant to the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1701 et seq.) and the National Forest Management 
Act of 1976 (16 U.S.C. 1600 et seq.), the Secretary, acting through the 
Director, may issue leases, on a competitive basis, for commercial 
solar or wind energy development on Federal lands under the 
administrative jurisdiction of the Bureau of Land Management or of the 
Forest Service, except that the Secretary may not issue any such lease 
on National Forest System lands over the objection of the Secretary of 
Agriculture.
    (b) Final Regulations.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of the Interior shall publish 
final regulations establishing a commercial wind and solar leasing 
program under subsection (a).
    (c) Commencement of Commercial Leasing for Solar and Wind Energy on 
Public Lands.--Not later than 90 days after completion of regulations 
required under subsection (b), or as soon as practicable thereafter, 
and following consultation with affected governors and other 
stakeholders, the Secretary shall conduct lease sales under the 
regulations under this subtitle.
    (d) Easements, Special-use Permits, and Rights-of-way.--Upon 
completion of regulations required under subsection (b), easements, 
special-use permits, and rights-of-way shall not be available for 
commercial wind and solar projects on Federal lands under the 
administrative jurisdiction of the Bureau of Land Management or Forest 
Service, except for the placement and operation of testing or data 
collection devices or facilities that will not result in the commercial 
sale of electric power.
    (e) Noncompetitive Leasing.--
            (1) In general.--The Secretary may issue leases under this 
        section on a noncompetitive basis if--
                    (A) the lease is for resource data collection or 
                equipment testing;
                    (B) the lease will not result in the commercial 
                sale of electric power;
                    (C) the lease has a term of not more than 5 years; 
                and
                    (D) the Secretary, after public notice of a 
                proposed lease, determines that there is no competitive 
                interest.
            (2) Preference.--In any competitive lease sale for lands 
        subject to a lease awarded under this subsection, the Secretary 
        may give a preference to the holder of the lease under this 
        subsection.
    (f) Transition to Commercial Leasing.--The Secretary of the 
Interior, for lands under the jurisdiction of the Bureau of Land 
Management, and the Secretary of Agriculture, for lands under the 
jurisdiction of the Forest Service, may issue an easement, special-use 
permit, or right-of-way for a commercial wind or solar project for 
which--
            (1) a plan of development has been submitted to the 
        relevant Secretary before the date of enactment of this Act; or
            (2) a meteorological testing tower or other data collection 
        device has been installed under an approved easement, special-
        use permit, or right-of-way before the date of enactment of 
        this Act.
    (g) Diligent Development Requirements.--The Secretary shall, by 
regulation, designate work requirements and milestones to ensure that 
diligent development is carried out under each lease issued under this 
subtitle.

SEC. 502. LAND MANAGEMENT.

    The Secretary, in consultation with the Director of the Bureau of 
Land Management and the Chief of the Forest Service, shall issue 
regulations that--
            (1) establish the duration of leases under this subtitle;
            (2) require the holder of a lease granted under this 
        subtitle to--
                    (A) furnish a surety bond or other form of 
                security, as prescribed by the Director;
                    (B) upon completion of activities authorized by the 
                lease provide for--
                            (i) the restoration of the area that is 
                        subject to the lease to the condition in which 
                        the area existed before the granting of the 
                        lease; or
                            (ii) mitigation activities if restoration 
                        to such condition is impractical; and
                    (C) comply with such other requirements as the 
                Director and affected Federal land manager consider 
                necessary to protect the interests of the public and 
                the United States; and
            (3) establish best management practices and require 
        renewable energy operators to comply with those practices to 
        ensure the sound, efficient, and environmentally responsible 
        development of wind and solar resources on Federal lands in a 
        manner that shall avoid, minimize, and mitigate actual and 
        anticipated impacts to habitat and ecosystem function resulting 
        from such development and to areas proposed for wilderness or 
        other protection.

SEC. 503. REVENUES.

    (a) Establishment of Payment Requirements.--The Secretary shall 
establish royalties, fees, rentals, bonus bids, or other payments for 
leases issued under this subtitle, that shall--
            (1) encourage development of solar and wind energy on 
        public lands;
            (2) ensure a fair return to the United States; and
            (3) be commensurate with similar payments for the 
        development of solar and wind energy on State and private 
        lands.
    (b) Deposit.--All revenues for payments established under this 
section shall be deposited in the general fund of the Treasury.

SEC. 504. RECORDKEEPING AND REPORTING REQUIREMENTS.

    (a) In General.--A lessee, permit holder, operator, or other person 
directly involved in developing, producing, processing, transporting, 
purchasing, or selling renewable energy under this title, through the 
point of royalty computation, shall establish and maintain any records, 
make any reports, and provide any information that the Secretary may 
reasonably require for the purposes of implementing this section or 
determining compliance with rules or orders under this section. Such 
records shall include, but not be limited to, periodic reports, 
records, documents, and other data. Such reports may include, but not 
be limited to, pertinent technical and financial data relating to the 
resources being developed under the lease. Upon the request of any 
officer or employee duly designated by the Secretary conducting an 
audit or investigation pursuant to this section, the appropriate 
records, reports, or information that may be required by this section 
shall be made available for inspection and duplication by such officer 
or employee. Failure by a claim holder, operator, or other person 
referred to in the first sentence to cooperate with such an audit, 
provide data required by the Secretary, or grant access to information 
may, at the discretion of the Secretary, result in involuntary 
forfeiture of the lease or permit.
    (b) Maintenance.--Records required by the Secretary under this 
section shall be maintained for 7 years after release of financial 
assurance unless the Secretary notifies the operator that the Secretary 
has initiated an audit or investigation involving such records and that 
such records must be maintained for a longer period. In any case when 
an audit or investigation is underway, records shall be maintained 
until the Secretary releases the operator of the obligation to maintain 
such records.

SEC. 505. AUDITS.

    The Secretary may conduct such audits of all lessees and permit 
holders, operators, transporters, purchasers, processors, or other 
persons directly or indirectly involved in the production or sales of 
renewable energy resources covered by this Act, as the Secretary deems 
necessary for the purposes of ensuring compliance with the requirements 
of this title. For purposes of performing such audits, the Secretary 
shall, at reasonable times and upon request, have access to, and may 
copy, all books, papers and other documents that relate to compliance 
with any provision of this section by any person.

SEC. 506. TRADE SECRETS.

    Trade secrets, proprietary information, and other confidential 
information protected from disclosure under section 552 of title 5, 
United States Code (popularly known as the Freedom of Information Act), 
shall be made available by the Secretary to other Federal agencies as 
necessary to assure compliance with this Act and other Federal laws.

SEC. 507. INTEREST AND SUBSTANTIAL UNDERREPORTING ASSESSMENTS.

    (a) Interest.--In the case of renewable energy leases or permits 
under which royalty payments are not received by the Secretary on the 
date that such payments are due, the Secretary shall charge interest on 
such underpayments at the same interest rate as the rate applicable 
under section 6621(a)(2) of the Internal Revenue Code of 1986. In the 
case of an underpayment, interest shall be computed and charged only on 
the amount of the deficiency and not on the total amount.
    (b) Penalty.--If there is any underreporting of royalty owed on 
production from a lease or permit for any production month by any 
person liable for royalty payments under this title, the Secretary 
shall assess a penalty of not greater than 25 percent of the amount of 
that underreporting.
    (c) Underreporting Defined.--For the purposes of this section, the 
term ``underreporting'' means the difference between the royalty on the 
value of the production that should have been reported and the royalty 
on the value of the production that was reported, if the value that 
should have been reported is greater than the value that was reported.
    (d) Waiver or Reduction.--
            (1) In general.--The Secretary may waive or reduce the 
        assessment provided in subsection (b) if the person liable for 
        royalty payments under this section corrects the underreporting 
        before the date such person receives notice from the Secretary 
        that an underreporting may have occurred, or before 90 days 
        after the date of the enactment of this section, whichever is 
        later.
            (2) Required waiver.--The Secretary shall waive any portion 
        of an assessment under subsection (b) attributable to that 
        portion of the underreporting for which the person responsible 
        for paying the royalty demonstrates that--
                    (A) such person had written authorization from the 
                Secretary to report royalty on the value of the 
                production on basis on which it was reported;
                    (B) such person had substantial authority for 
                reporting royalty on the value of the production on the 
                basis on which it was reported;
                    (C) such person previously had notified the 
                Secretary, in such manner as the Secretary may by rule 
                prescribe, of relevant reasons or facts affecting the 
                royalty treatment of specific production that led to 
                the underreporting; or
                    (D) such person meets any other exception that the 
                Secretary may, by rule, establish.
    (e) Expanded Royalty Obligations.--Each person liable for royalty 
payments under this section shall be jointly and severally liable for 
royalty on renewable energy resources produced under a lease issued 
under this Act when such loss or waste is due to negligence on the part 
of any person or due to the failure to comply with any rule, 
regulation, or order issued under this section.
    (f) Failure To Comply With Royalty Requirements.--Any person who 
fails to comply with the requirements of this section or any regulation 
or order issued to implement this section shall be liable for a civil 
penalty under section 109 of the Federal Oil and Gas Royalty Management 
Act of 1982 (30 U.S.C. 1719) to the same extent as if the failure to 
comply occurred under that Act.
    (g) Deposit of Penalties.--All penalties collected under this 
subsection shall be deposited in the general fund of the Treasury.

SEC. 508. INDIAN SAVINGS PROVISION.

    Nothing in this subtitle shall abridge, diminish, or alter any 
right or interest of any affected Indian tribe. Nothing in this 
subtitle shall authorize any Federal agency or official to abridge, 
diminish, or alter any right or interest of any affected Indian tribe.

                      Subtitle B--Uranium Leasing

SEC. 511. FEDERAL LANDS URANIUM LEASING.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
redesignating section 44 as section 45, and by inserting after section 
43 the following new section:

``SEC. 44. LEASING OF LANDS FOR URANIUM MINING.

    ``(a) In General.--
            ``(1) Withdrawal from entry; leasing requirement.--
        Effective upon the date of enactment of the Consolidated Land, 
        Energy, and Aquatic Resources Act of 2009, all Federal lands 
        are hereby permanently withdrawn from location and entry under 
        section 2319 of the Revised Statutes (30 U.S.C. 22 et seq.) for 
        uranium. After the end of the 2-year period beginning on such 
        date of enactment, no uranium may be produced from Federal 
        lands except pursuant to a lease issued under this Act.
            ``(2) Leasing.--The Secretary--
                    ``(A) may divide any lands subject to this Act that 
                are not withdrawn from mineral leasing and that are 
                otherwise available for uranium leasing under 
                applicable law, including lands available under the 
                terms of land use plans prepared by the Federal agency 
                managing the land, into leasing tracts of such size as 
                the Secretary finds appropriate and in the public 
                interest; and
                    ``(B) thereafter shall, in the Secretary's 
                discretion, upon the request of any qualified applicant 
                or on the Secretary's own motion, from time to time, 
                offer such lands for uranium leasing and award uranium 
                leases thereon by competitive bidding.
    ``(b) Fair Market Value Required.--
            ``(1) In general.--No bid for a uranium lease shall be 
        accepted that is less than the fair market value, as determined 
        by the Secretary, of the uranium subject to the lease.
            ``(2) Public comment.--Prior to the Secretary's 
        determination of the fair market value of the uranium subject 
        to the lease, the Secretary shall give opportunity for and 
        consideration to public comments on the fair market value.
            ``(3) Disclosure not required.--Nothing in this section 
        shall be construed to require the Secretary to make public the 
        Secretary's judgment as to the fair market value of the uranium 
        to be leased, or the comments the Secretary receives thereon 
        prior to the issuance of the lease.
    ``(c) Lands Under the Jurisdiction of Other Agencies.--Leases 
covering lands the surface of which is under the jurisdiction of any 
Federal agency other than the Department of the Interior may be issued 
only--
            ``(1) upon consent of the head of the other Federal agency; 
        and
            ``(2) upon such conditions the head of such other Federal 
        agency may prescribe with respect to the use and protection of 
        the nonmineral interests in those lands.
    ``(d) Consideration of Effects of Mining.--Before issuing any 
uranium lease, the Secretary shall consider effects that mining under 
the proposed lease might have on an impacted community or area, 
including impacts on the environment, on agricultural, on cultural 
resources, and other economic activities, and on public services.
    ``(e) Notice of Proposed Lease.--No lease sale shall be held for 
lands until after a notice of the proposed offering for lease has been 
given once a week for three consecutive weeks in a newspaper of general 
circulation in the county in which the lands are situated, or in 
electronic format, in accordance with regulations prescribed by the 
Secretary.
    ``(f) Auction Requirements.--All lands to be leased under this 
section shall be leased to the highest responsible qualified bidder--
            ``(1) under general regulations;
            ``(2) in units of not more than 2,560 acres that are as 
        nearly compact as possible; and
            ``(3) by oral bidding.
    ``(g) Required Payments.--
            ``(1) In general.--A lease under this section shall be 
        conditioned upon the payment by the lessee of--
                    ``(A) a royalty at a rate of not less than 12.5 
                percent in amount or value of the production removed or 
                sold under the lease; and
                    ``(B) a rental of--
                            ``(i) not less than $2.50 per acre per year 
                        for the first through fifth years of the lease; 
                        and
                            ``(ii) not less than $3 per acre per year 
                        for each year thereafter.
            ``(2) Use of revenues.--Amounts received as revenues under 
        this subsection with respect to a lease may be used by the 
        Secretary of the Interior, subject to the availability of 
        appropriations, for cleaning up uranium mill tailings and 
        reclaiming abandoned uranium mines on Federal lands in 
        accordance with the priorities and eligibility restrictions, 
        respectively, under subsections (c) and (d) of section 411 of 
        the Surface Mining Control and Reclamation Act of 1977 (30 
        U.S.C. 1240a).
    ``(h) Lease Term.--A lease under this section--
            ``(1) shall be effective for a primary term of 10 years; 
        and
            ``(2) shall continue in effect after such primary term for 
        so long is as uranium is produced under the lease in paying 
        quantities.
    ``(i) Exploration Licenses.--
            ``(1) In general.--The Secretary may, under such 
        regulations as the Secretary may prescribe, issue to any person 
        an exploration license. No person may conduct uranium 
        exploration for commercial purposes on lands subject to this 
        Act without such an exploration license. Each exploration 
        license shall be for a term of not more than two years and 
        shall be subject to a reasonable fee. An exploration license 
        shall confer no right to a lease under this Act. The issuance 
        of exploration licenses shall not preclude the Secretary from 
        issuing uranium leases at such times and locations and to such 
        persons as the Secretary deems appropriate. No exploration 
        license may be issued for any land on which a uranium lease has 
        been issued. A separate exploration license shall be required 
        for exploration in each State. An application for an 
        exploration license shall identify general areas and probable 
        methods of exploration. Each exploration license shall be 
        limited to specific geographic areas in each State as 
        determined by the Secretary, and shall contain such reasonable 
        conditions as the Secretary may require, including conditions 
        to ensure the protection of the environment, and shall be 
        subject to all applicable Federal, State, and local laws and 
        regulations. Upon violation of any such conditions or laws the 
        Secretary may revoke the exploration license.
            ``(2) Limitations.--A licensee may not cause substantial 
        disturbance to the natural land surface. A licensee may not 
        remove any uranium for sale but may remove a reasonable amount 
        of uranium from the lands subject to this Act included under 
        the Secretary's license for analysis and study. A licensee must 
        comply with all applicable rules and regulations of the Federal 
        agency having jurisdiction over the surface of the lands 
        subject to this Act. Exploration licenses covering lands the 
        surface of which is under the jurisdiction of any Federal 
        agency other than the Department of the Interior may be issued 
        only upon such conditions as it may prescribe with respect to 
        the use and protection of the nonmineral interests in those 
        lands.
            ``(3) Sharing of data.--The licensee shall furnish to the 
        Secretary copies of all data (including geological, 
        geophysical, and core drilling analyses) obtained during such 
        exploration. The Secretary shall maintain the confidentiality 
        of all data so obtained until after the areas involved have 
        been leased or until such time as the Secretary determines that 
        making the data available to the public would not damage the 
        competitive position of the licensee, whichever comes first.
            ``(4) Exploration without a license.--Any person who 
        willfully conducts uranium exploration for commercial purposes 
        on lands subject to this Act without an exploration license 
        issued under this subsection shall be subject to a fine of not 
        more than $1,000 for each day of violation. All data collected 
        by such person on any Federal lands as a result of such 
        violation shall be made immediately available to the Secretary, 
        who shall make the data available to the public as soon as it 
        is practicable. No penalty under this subsection shall be 
        assessed unless such person is given notice and opportunity for 
        a hearing with respect to such violation.
    ``(j) Conversion of Mining Claims to Mineral Leases.--
            ``(1) In general.--The owner of any mining claim (in this 
        subsection referred to as a `claimant') located prior to the 
        date of enactment of the Consolidated Land, Energy, and Aquatic 
        Resources Act of 2009 may, within two years after such date, 
        apply to the Secretary of the Interior to convert the claim to 
        a lease under this section. The Secretary shall issue a uranium 
        lease under this section to the claimant upon a demonstration 
        by the claimant, to the satisfaction of the Secretary, within 
        one year after the date of the application to the Secretary, 
        that the claim was, as of such date of enactment, supported by 
        the discovery of a valuable deposit of uranium on the claimed 
        land. The holder of a lease issued upon conversion from a 
        mining claim under this subsection shall be subject to all the 
        requirements of this section governing uranium leases, except 
        that the holder shall pay a royalty of 6.25 percent on the 
        value of the uranium produced under the lease, until beginning 
        ten years after the date the claim is converted to a lease.
            ``(2) Other claims extinguished.--All mining claims located 
        for uranium on Federal lands whose claimant does not apply to 
        the Secretary for conversion to a lease, or whose claimant 
        cannot make such a demonstration of discovery, shall become 
        null and void by operation of law three years after such date 
        of enactment.''.

      TITLE VI--OUTER CONTINENTAL SHELF COORDINATION AND PLANNING

SEC. 601. REGIONAL OUTER CONTINENTAL SHELF COORDINATION.

    (a) In General.--The purpose of this title is to promote 
coordinated regional planning efforts, to require that decisions are 
made using the best available science, and to ensure the protection and 
maintenance of ecosystem health in decisions affecting the siting of 
energy facilities and development of Federal renewable and nonrenewable 
energy resources on, in, or above the Outer Continental Shelf for the 
long-term economic and environmental benefit of the United States.
    (b) Objectives of Regional Efforts.--Such regional efforts shall 
achieve the following:
            (1) Greater systematic communication and coordination among 
        Federal, coastal State, and affected tribal governments 
        concerned with the siting and development of Federal renewable 
        and nonrenewable energy resources on, in, or above the Outer 
        Continental Shelf.
            (2) To the maximum extent feasible, greater reliance on a 
        multiobjective, science- and ecosystem-based, spatially 
        explicit management approach that integrates regional economic, 
        ecological, affected tribal, and social objectives into energy 
        development decisions.
            (3) Identification and prioritization of shared State and 
        Federal energy development issues.
            (4) Identification of data and information needed by the 
        Regional Outer Continental Shelf Councils established under 
        section 602.
    (c) Regions.--There are hereby designated the following Outer 
Continental Shelf Regions:
            (1) Pacific outer continental shelf region.--The Pacific 
        Outer Continental Shelf Region, which shall consist of the 
        Outer Continental Shelf adjacent to the States of Washington, 
        Oregon, California, and Hawaii.
            (2) Gulf of mexico outer continental shelf region.--The 
        Gulf of Mexico Outer Continental Shelf Region, which shall 
        consist of the Outer Continental Shelf adjacent to the States 
        of Texas, Louisiana, Mississippi, and Alabama, and the west 
        coast of Florida.
            (3) Atlantic outer continental shelf region.--The Atlantic 
        Outer Continental Shelf Region, which shall consist of the 
        Outer Continental Shelf adjacent to the States of Maine, New 
        Hampshire, Massachusetts, Rhode Island, Connecticut, New York, 
        New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North 
        Carolina, South Carolina, and Georgia, the east coast of 
        Florida, and the Straits of Florida Planning Area.
            (4) Alaska outer continental shelf region.--The Alaska 
        Outer Continental Shelf Region, which shall consist of the 
        Outer Continental Shelf adjacent to the State of Alaska.

SEC. 602. REGIONAL OUTER CONTINENTAL SHELF COUNCILS.

    (a) In General.--Within 180 days after the date of enactment of 
this Act, the Secretary of the Interior and the Secretary of Commerce, 
in consultation with the affected coastal States and affected Indian 
tribes, shall establish or designate a Regional Outer Continental Shelf 
Council for each of the Outer Continental Shelf Regions designated by 
section 601(c).
    (b) Membership.--
            (1) Federal representatives.--Within 90 days after the date 
        of enactment of this Act, the Secretary of the Interior, in 
        consultation with the Secretary of Commerce, shall publish the 
        titles of the officials of each Federal agency and department 
        that shall participate in each Council. The Secretary of the 
        Interior, in consultation with the Secretary of Commerce, shall 
        include in such officials representatives of each Federal 
        agency and department that has expertise in energy production 
        facility siting and development or ocean and coastal policy, or 
        engages in planning, management, or scientific activities that 
        significantly affect or inform the use of ocean waters, coastal 
        waters, or ocean resources or other affected uses. The 
        Secretary of the Interior, or at the Secretary of the 
        Interior's discretion, the Secretary of Commerce, shall serve 
        as the chairperson of each Council.
            (2) Coastal state representatives.--
                    (A) Notice of intent to participate.--The Governor 
                of each coastal State within each Outer Continental 
                Shelf Region designated by section 601(c) shall within 
                3 months after the date of enactment of this Act, 
                inform the Secretary and the Secretary of Commerce 
                whether or not the State intends to participate in the 
                Council for the Outer Continental Shelf Region.
                    (B) Appointment of responsible state official.--If 
                the Governor of a coastal State informs the Secretaries 
                in accordance with subparagraph (A) that the State 
                intends to participate in such Council, the Governor 
                shall appoint an officer or employee of the coastal 
                State agency with primary responsibility for overseeing 
                ocean and coastal policy or resource management to that 
                Council.
            (3) Regional fisheries representation.--The Chair of each 
        Regional Fishery Management Council with jurisdiction in the 
        Outer Continental Shelf Region of a Council and the executive 
        director of the interstate marine fisheries commission with 
        jurisdiction in the Outer Continental Shelf Region of a Council 
        shall each serve as a member of the Council.
            (4) Regional ocean partnership representation.--A 
        representative of any Regional Ocean Partnership that has been 
        established for any part of the Outer Continental Shelf Region 
        of a Council may appoint a representative to serve on the 
        Council in addition to any Federal or State appointment.
            (5) Tribal representation.--An appropriate tribal official 
        selected by affected Indian tribes situated in the affected 
        Outer Continental Shelf Region may elect to appoint a 
        representative of such tribes collectively to serve as a member 
        of the Council.
            (6) Other representation.--The Director shall appoint such 
        other representatives to serve on a Council as the Director 
        determines appropriate to achieve balanced representation from 
        the energy, shipping and transportation, marine tourism, and 
        recreation industries, and from marine environmental 
        nongovernmental organizations, and scientific and educational 
        authorities with expertise in energy siting and development, 
        land and water resource management, and conservation of ocean 
        and coastal species and the habitat that they depend upon.
    (c) Coordination With Existing Regional Ocean Partnerships and 
Other Similar Programs.--Each Council shall build upon and complement 
current State, multistate, and regional capacity and governance and 
institutional mechanisms to manage and protect ocean waters, coastal 
waters, and ocean resources.

SEC. 603. REGIONAL OUTER CONTINENTAL SHELF STRATEGIC PLANS.

    (a) Initial Outer Continental Shelf Region Assessment.--
            (1) In general.--The Secretary, in consultation with the 
        Secretary of Commerce and the heads of other Federal agencies 
        authorized to provide marine ecosystem science expertise, 
        shall, within one year after the date of enactment of this Act, 
        prepare an initial assessment of each Outer Continental Shelf 
        Region that shall identify deficiencies in data and information 
        necessary to informed decisionmaking. Each initial assessment 
        shall to the extent feasible--
                    (A) identify the Region's potential alternative 
                energy resources and energy-related mineral resources;
                    (B) identify the Region's existing infrastructure 
                and projections for future transmission requirements;
                    (C) document the health and relative environmental 
                sensitivity of the marine ecosystem including a 
                comprehensive survey of species, habitats, and 
                indicators of ecosystem health;
                    (D) identify marine habitat types and important 
                marine ecological areas within the Region;
                    (E) assess the Region's marine economy and cultural 
                attributes; and
                    (F) inventory other existing uses of the Outer 
                Continental Shelf in the Region.
            (2) Data.--Each initial assessment shall--
                    (A) use the best available data;
                    (B) collect and provide data in a spatially 
                explicit manner wherever practicable and provide such 
                data to the interagency comprehensive digital mapping 
                initiative as described in section 2 of Public Law 109-
                58 (42 U.S.C. 15801); and
                    (C) make publicly available any such data that is 
                not classified information.
    (b) Regional Outer Continental Shelf Strategic Plans.--
            (1) Requirement.--Each Council shall, within 2 years after 
        the completion of the initial Outer Continental Shelf Region 
        assessment, prepare and submit to the Secretaries a 
        multiobjective, science and ecosystem-based, spatially 
        explicit, integrated marine energy and energy-related mineral 
        resources Strategic Plan in accordance with this subsection.
            (2) Management objective.--The management objective of the 
        Strategic Plans under this subsection shall be to foster 
        sustainable development of additional energy resources from the 
        Outer Continental Shelf, while protecting marine ecosystem 
        health and sustaining the long-term economic and ecosystem 
        values of the oceans.
            (3) Contents.--Each Strategic Plan prepared by a Council 
        shall--
                    (A) be based on the Outer Continental Shelf Region 
                assessment and updates for the Region under subsections 
                (a) and (c), respectively;
                    (B) foster sustainable ocean energy development in 
                a manner that protects the health of marine ecosystems;
                    (C) identify areas with potential for siting and 
                developing renewable and nonrenewable energy resources 
                in the Outer Continental Shelf Region covered by the 
                Strategic Plan;
                    (D) identify and recommend long-term monitoring 
                needs for ecosystem health and socioeconomic variables 
                within the Outer Continental Shelf Region covered by 
                the Strategic Plan;
                    (E) identify existing State and Federal regulating 
                authorities within the Outer Continental Shelf Region 
                covered by the Strategic Plan;
                    (F) identify best available technologies that can 
                minimize adverse environmental impacts of construction 
                and operation of energy facilities in the Region;
                    (G) identify additional research, information, and 
                data needed to carry out the Strategic Plan;
                    (H) identify research, information, and data needed 
                to carry out the Strategic Plan;
                    (I) identify performance measures and benchmarks 
                for purposes of fulfilling the responsibilities under 
                this section to be used to evaluate the Strategic 
                Plan's effectiveness; and
                    (J) define responsibilities and include an analysis 
                of the gaps in authority, coordination, and resources, 
                including funding, that must be filled in order to 
                fully achieve those performance measures and 
                benchmarks.
            (4) Public participation.--Each Council shall provide 
        adequate opportunities for review and input by stakeholders and 
        the general public during the development of the Strategic Plan 
        and any Strategic Plan revisions.
    (c) Updated Outer Continental Shelf Region Assessments.--The 
Secretary, in consultation with the Secretary of Commerce, and in 
consultation with the appropriate Council and other experts, shall 
update the initial Outer Continental Shelf Region assessment prepared 
under subsection (a) in coordination with each plan revision under 
subsection (e), to provide more detailed information regarding the 
required elements of the assessment and to include any relevant new 
information that has become available in the interim.
    (d) Review and Approval.--
            (1) Commencement of review.--Within 10 days after 
        transmittal of a Strategic Plan under this section, or any 
        revision to such a Strategic Plan, by a Council, the Secretary, 
        in consultation with the Secretary of Commerce, shall commence 
        a review of the Strategic Plan or the revised Strategic Plan, 
        respectively.
            (2) Public notice and comment.--Immediately after receipt 
        of such a Strategic Plan or revision, the Secretary, in 
        consultation with the Secretary of Commerce, shall publish the 
        Strategic Plan or revision in the Federal Register and provide 
        an opportunity for the submission of public comment for a 90-
        day period beginning on the date of such publication.
            (3) Requirements for approval.--Before approving a 
        Strategic Plan, or any revision to a Strategic Plan, the 
        Secretary, in consultation with the Secretary of Commerce, must 
        find that the Strategic Plan or revision--
                    (A) is consistent with the Outer Continental Shelf 
                Lands Act;
                    (B) complies with subsection (b); and
                    (C) complies with the purposes of this title as 
                identified in section 601(a).
            (4) Deadline for completion.--Within 180 days after 
        transmittal of a Strategic Plan, or a revision to a Strategic 
        Plan, the Secretary, in consultation with the Secretary of 
        Commerce, shall approve or disapprove the Strategic Plan or 
        revision by written notice to the Council that submitted the 
        Strategic Plan. If the Secretary disapproves the Strategic 
        Plan, the Secretary, in consultation with the Secretary of 
        Commerce, shall transmit to the Council that submitted the 
        strategic Plan an identification of the deficiencies in the 
        Strategic Plan and recommendations to improve the Strategic 
        Plan. The Council shall submit a revised Strategic Plan to the 
        Secretaries within 180 days after the Secretary transmits such 
        deficiencies and recommendations.
    (e) Plan Revision.--Each Strategic Plan that is approved by the 
Secretary of the Interior, in consultation with the Secretary of 
Commerce, shall be reviewed and revised by the relevant Council at 
least once every 5 years. Such review and revision shall be based on 
the most recently updated Outer Continental Shelf Region assessment. 
Any proposed revisions to the Strategic Plan shall be transmitted to 
the Secretaries for review and approval pursuant to this section.

SEC. 604. REGULATIONS.

    The Secretaries shall issue such regulations as the Secretaries 
consider necessary to ensure proper administration of this title.

SEC. 605. OCEAN RESOURCES CONSERVATION AND ASSISTANCE FUND.

    (a) Establishment.--
            (1) In general.--There is established in the Treasury of 
        the United States a separate account to be known as the Ocean 
        Resources Conservation and Assistance Fund (in this section 
        referred to as the ``ORCA Fund'').
            (2) Credits.--The ORCA Fund shall be credited with amounts 
        as specified in subsection (q) of section 8 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1337), as amended by 
        section 401 of this Act.
            (3) Allocation of the orca fund.--
                    (A) In general.--Of the amounts deposited in the 
                ORCA Fund each fiscal year--
                            (i) 50 percent shall be used by the 
                        Secretary to make grants to coastal States and 
                        affected Indian tribes under subsection (b);
                            (ii) 40 percent shall be allocated by the 
                        Secretary to the Ocean, Coastal and Great Lakes 
                        Grants Program established by subsection (c); 
                        and
                            (iii) 10 percent shall be used by the 
                        Secretary to make grants to Regional Ocean 
                        Partnerships under subsection (d).
                    (B) Availability.--Amounts deposited in the Fund 
                shall be available to the Secretary of Commerce (in 
                this section referred to as the ``Secretary'') for 
                allocation under subparagraph (A) without further 
                appropriation.
            (4) Procedures.--The Secretary shall establish application, 
        review, oversight, financial accountability, and performance 
        accountability procedures for each grant program to which funds 
        are allocated under this subsection.
    (b) Grants to Coastal States.--
            (1) Grant authority.--The Secretary may use amounts 
        allocated under subsection (a)(3)(A)(i) to make grants to--
                    (A) coastal States pursuant to the formula 
                established under section 306(c) of the Coastal Zone 
                Management Act of 1972 (16 U.S.C. 1455(c)); and
                    (B) to affected Indian tribes based on and 
                proportional to any specific coastal and ocean 
                management authority granted to an affected tribe 
                pursuant to affirmation of a Federal reserved right.
            (2) Eligibility.--To be eligible to receive a grant under 
        this subsection, a coastal State or affected Indian tribe must 
        prepare and revise a 5-year plan and annual work plans that--
                    (A) demonstrate that activities for which the 
                coastal State or affected Indian tribe will use the 
                funds are consistent with the eligible uses of the Fund 
                identified in subsection (e); and
                    (B) provide mechanisms to ensure that funding is 
                made available to government, nongovernment, and 
                academic entities to carry out eligible activities at 
                the county and local level.
            (3) Approval of state and affected tribal plans.--Such 
        plans must be submitted to and approved by the Secretary.
            (4) Public input and comment.--In determining whether to 
        approve such plans, the Secretary shall provide opportunity 
        for, and take into consideration, public input and comment on 
        the plans from stakeholders and the general public.
            (5) Use of funds.--Any amounts provided as a grant under 
        this subsection may only be used for activities described in 
        subsection (e).
    (c) Ocean and Coastal Grants Program.--
            (1) Establishment.--The Secretary shall establish an Ocean, 
        Coastal, and Great Lakes Grants Program for the purposes of 
        allocating funds available under subsection (a)(3)(A)(ii).
            (2) Ocean, coastal, and great lakes council.--
                    (A) In general.--The Secretary shall establish an 
                Ocean, Coastal, and Great Lakes Council (in this 
                section referred to as the ``Council''), which shall 
                consist of 12 members appointed by the Secretary with 
                expertise in the conservation and management of ocean, 
                coastal, and Great Lakes ecosystems and marine 
                resources. In appointing members to the Council, the 
                Secretary shall include a balanced diversity of 
                representatives of relevant Federal agencies, affected 
                Indian tribes, the private sector, nonprofit 
                organizations, and academia.
                    (B) Terms and vacancies.--The term of office of 
                members of the Council shall be 3 years, except the 
                Secretary shall designate shorter terms of initial 
                members of the Council so that the terms of subsequent 
                members are staggered. Whenever a vacancy occurs among 
                members of the Council, the Secretary shall appoint an 
                individual to fill that vacancy for the remainder of 
                the applicable term.
                    (C) Officers of the council.--The Council shall 
                have a Chair and a Vice Chair, both of whom shall be 
                elected by the Council by and from its members. The 
                Chair and Vice Chair shall serve for a 3-year term, 
                except that the first Chair and Vice Chair may be 
                elected for a term of less than 3 years, as determined 
                by the Council. The Council may elect any other 
                officers it deems necessary to carry out its duties 
                under this Act.
                    (D) Quorum.--Eight members of the Council shall 
                constitute a quorum for the transaction of business.
                    (E) Meetings.--The Council shall meet at the call 
                of the Chair at least twice per year. Each meeting 
                shall be open to the public.
                    (F) Staff.--The Chair of the Council may hire staff 
                as needed within the constraints of available 
                administrative funds to carry out its duties under this 
                Act.
                    (G) Functions.--The Council shall--
                            (i) in consultation with the Secretary, 
                        establish procedures for applying for a grant 
                        under this subsection and criteria for 
                        evaluating applications for such grants 
                        consistent with subsection (e);
                            (ii) receive and review in accordance with 
                        those procedures and criteria grant 
                        applications under this subsection;
                            (iii) make recommendations to the Secretary 
                        regarding which grant applications should be 
                        funded and the amount of each grant; and
                            (iv) establish any specific requirements, 
                        conditions, or limitations on a grant 
                        application recommended for funding.
            (3) Eligibility for grants.--The Secretary shall establish 
        criteria in consultation with the Council to determine what 
        persons are eligible for grants under the program. Such persons 
        shall include but not be limited to Federal, State, affected 
        tribal, and local agencies, fishery or wildlife management 
        organizations, nonprofit organizations, and academic 
        institutions.
            (4) Approval of grants.--The Secretary shall approve grant 
        applications on the basis of the Council's recommendations. If 
        the Secretary disapproves a grant recommended by the Council, 
        the Secretary shall explain that disapproval in writing.
            (5) Use of grant funds.--Any amounts provided as a grant 
        under this subsection may only be used for activities described 
        in subsection (e).
    (d) Grants to Regional Ocean Partnerships.--
            (1) Grant authority.--The Secretary may use amounts 
        allocated under subsection (a)(3)(A)(iii) to make grants to 
        Regional Ocean Partnerships.
            (2) Eligibility.--In order to be eligible to receive funds 
        under subsection (a)(3)(A)(iii), a Regional Ocean Partnership 
        must prepare and annually revise a plan that demonstrates that 
        activities to be carried out with such funds are consistent 
        with the eligible uses of the funds identified in subsection 
        (e).
            (3) Approval by secretary.--Such plans must be submitted to 
        and approved by the Secretary.
            (4) Public input and comment.--In determining whether to 
        approve such plans, the Secretary shall provide opportunity 
        for, and take into consideration, input and comment on the 
        plans from stakeholders and the general public.
            (5) Use of funds.--Any amounts provided as a grant under 
        this subsection may only by used for activities described in 
        subsection (e).
    (e) Eligible Use of Funds.--Any funds made available under this 
section may only be used for activities that contribute to the 
conservation, protection, maintenance, and restoration of ocean, 
coastal, and Great Lakes ecosystems in a manner that is consistent with 
Federal environmental laws and that avoids environmental degredation, 
including--
            (1) activities to conserve, protect, maintain, and restore 
        coastal, marine, and Great Lakes ecosystem health;
            (2) activities to protect marine biodiversity and living 
        marine and coastal resources and their habitats, including fish 
        populations;
            (3) the development and implementation of multiobjective, 
        science- and ecosystem-based plans for monitoring and managing 
        the wide variety of uses affecting ocean, coastal, and Great 
        Lakes ecosystems and resources that consider cumulative impacts 
        and are spatially explicit where appropriate;
            (4) activities to improve the resiliency of those 
        ecosystems;
            (5) activities to improve the ability of those ecosystems 
        to become more resilient, and to adapt to and withstand the 
        impacts of climate change and ocean acidification;
            (6) planning for and managing coastal development to 
        minimize the loss of life and property associated with global 
        climate change and the coastal hazards resulting from it;
            (7) research, assessment, monitoring, and dissemination of 
        information that contributes to the achievement of these 
        purposes; and
            (8) research of, protection of, enhancement to, and 
        activities to improve the resiliency of culturally significant 
        areas and resources.

SEC. 606. WAIVER.

    The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
to the Regional Outer Continental Shelf Councils established under 
section 602.

SEC. 607. TRANSITION PERIOD.

    (a) Activities Before Approval of Strategic Plan.--Prior to 
approval by the Secretary of a Strategic Plan for an Outer Continental 
Shelf Region under section 603(d), the following activities shall not 
be affected by the preparation or proposal of such a Plan:
            (1) Initiation of the process to develop a new 5-year 
        leasing plan or amendment to such plan pursuant to section 18 
        of the Outer Continental Shelf Lands Act.
            (2) Ongoing planning processes being conducted for that 
        Region pursuant to section 18 of the Outer Continental Shelf 
        Lands Act.
            (3) Administrative procedures necessary to approve a 5-year 
        plan developed pursuant to section 18 of the Outer Continental 
        Shelf Lands Act, including approval and adoption of a 5-year 
        plan.
            (4) Leasing activity being conducted in that Region under a 
        5-year leasing plan approved by the Secretary of the Interior 
        pursuant to section 18 of the Outer Continental Shelf Lands 
        Act.
            (5) Other activities that the Secretary may authorize 
        pursuant to the Outer Continental Shelf Lands Act.
    (b) Failure To Produce a Plan.--Failure by a Council to produce a 
Strategic Plan for an Outer Continental Shelf Region, or failure of the 
Secretary, in consultation with the Secretary of Commerce, to approve a 
Strategic Plan for such a Region, shall not delay the process of 
preparing and approving any new 5-year drilling plan under the Outer 
Continental Shelf Lands Act and shall not delay any activities being 
conducted pursuant to an existing Outer Continental Shelf leasing 
program prepared and approved by the Secretary under section 18 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1344) prior to the 
enactment of this Act.

SEC. 608. ALTERNATIVE ENERGY ON THE OUTER CONTINENTAL SHELF.

    (a) Prior to Approval of Strategic Plan.--Prior to approval of a 
Strategic Plan for an Outer Continental Shelf Region under subsection 
603(d), the Secretary of the Interior shall continue to implement 
without delay the rule for Renewable Energy and Alternate Uses of 
Existing Facilities on the Outer Continental Shelf, as published in the 
Federal Register on April 29, 2009, in that Region.
    (b) Approval of Strategic Plan.--The approval of a Strategic Plan 
shall not affect--
            (1) projects for which leases have been obtained under that 
        rule prior to submittal of the Plan for approval; and
            (2) tracts of the Outer Continental Shelf for which the 
        competitive alternative energy leasing process under that rule 
        has been initiated prior to submittal of the Plan for approval.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE 
              OIL AND GAS INDUSTRY.

    (a) Repeal of Provisions of Energy Policy Act of 2005.--The 
following provisions of the Energy Policy Act of 2005 (Public Law 109-
58) are repealed:
            (1) Section 344 (42 U.S.C. 15904; relating to incentives 
        for natural gas production from deep wells in shallow waters of 
        the Gulf of Mexico).
            (2) Section 345 (42 U.S.C. 15905; relating to royalty 
        relief for deep water production in the Gulf of Mexico).
    (b) Provisions Relating to Planning Areas Offshore Alaska.--Section 
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas 
offshore Alaska'' after ``West longitude''.
    (c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as 
transferred, redesignated, moved, and amended by section 347 of the 
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
            (1) in subsection (i) by striking paragraphs (2) through 
        (6); and
            (2) by striking subsection (k).

SEC. 702. PRODUCTION INCENTIVE FEE.

    (a) Establishment.--The Secretary shall, within 180 days after the 
date of enactment of this Act, issue regulations to establish an annual 
production incentive fee for all leases in effect on the date of 
enactment of this Act, of Federal onshore and offshore lands for 
production of oil or natural gas under which production is not 
occurring in commercial quantities or is not included in a unitization 
agreement under which production is not occuring in commercial 
quantities.
    (b) Amount.--The amount of the fee shall be, for each acre that is 
subject to a lease from which oil or natural gas is not produced in a 
calendar year, $4 per acre in 2009 dollars.
    (c) Assessment and Collection.--The Secretary shall assess and 
collect the fee established under this section.
    (d) Regulations.--The Secretary may issue regulations to prevent 
evasion of the fee under this section.

SEC. 703. LEASING ON INDIAN LANDS.

    Nothing in this Act modifies, amends, or affects leasing on Indian 
lands as currently carried out by the Bureau of Indian Affairs.

SEC. 704. OFFSHORE AQUACULTURE CLARIFICATION.

    (a) No Authority.--The Secretary of Commerce, the Administrator of 
the National Oceanic and Atmospheric Administration, or the Regional 
Fishery Management Councils shall not develop or approve a fishery 
management plan or fishery management plan amendment to permit or 
regulate offshore aquaculture.
    (b) Permits Invalid.--Any permit issued for the conduct of offshore 
aquaculture, including the siting or operation of offshore aquaculture 
facilities, under the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1801 et seq.) shall be invalid upon enactment 
of this Act.
    (c) Definitions.--In this section:
            (1) Offshore aquaculture.--The term ``offshore 
        aquaculture'' means all activities related to--
                    (A) the placement of any installation, facility, or 
                structure in the exclusive economic zone for the 
                purposes of propagation or rearing, or attempting to 
                propagate or rear, any species; or
                    (B) the operation of offshore aquaculture 
                facilities in the exclusive economic zone involved in 
                the propagation or rearing, or attempted propagation or 
                rearing, of species.
            (2) Offshore aquaculture facility.--The term ``offshore 
        aquaculture facility'' means--
                    (A) a structure, installation, or other complex 
                used, in whole or in part, for offshore aquaculture; or
                    (B) an area of the seabed or the subsoil used for 
                offshore aquaculture.
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