H. R. 6—113
‘‘(1) IN GENERAL.—For the purpose of conservation of the 
natural resources of all or part of any oil or gas pool, field, 
reservoir, or like area, lessees (including representatives) of 
the pool, field, reservoir, or like area may unite with each 
other, or jointly or separately with others, in collectively 
adopting and operating under a unit agreement for all or part 
of the pool, field, reservoir, or like area (whether or not any 
other part of the oil or gas pool, field, reservoir, or like area 
is already subject to any cooperative or unit plan of development 
or operation), if the Secretary determines the action to be 
necessary or advisable in the public interest. In determining 
the public interest, the Secretary should consider, among other 
things, the extent to which the unit agreement will minimize 
the impact to surface resources of the leases and will facilitate 
consolidation of facilities. 
‘‘(2) CONSULTATION.—In making a determination under 
paragraph (1), the Secretary shall consult with and provide 
opportunities for participation by the State of Alaska or a 
Regional Corporation (as defined in section 3 of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602)) with respect 
to the creation or expansion of units that include acreage in 
which the State of Alaska or the Regional Corporation has 
an interest in the mineral estate. 
‘‘(3) PRODUCTION ALLOCATION METHODOLOGY.—(A) The Sec-
retary may use a production allocation methodology for each 
participating area within a unit that includes solely Federal 
land in the Reserve. 
‘‘(B) The Secretary shall use a production allocation meth-
odology for each participating area within a unit that includes 
Federal land in the Reserve and non-Federal land based on 
the characteristics of each specific oil or gas pool, field, res-
ervoir, or like area to take into account reservoir heterogeneity 
and area variation in reservoir producibility across diverse 
leasehold interests. The implementation of the foregoing 
production allocation methodology shall be controlled by agree-
ment among the affected lessors and lessees. 
‘‘(4) BENEFIT OF OPERATIONS.—Drilling, production,’’; 
(9) by striking ‘‘When separate’’ and inserting the following: 
‘‘(5) POOLING.—If separate’’; 
(10) by inserting ‘‘(in consultation with the owners of the 
other land)’’ after ‘‘determined by the Secretary of the Interior’’; 
(11) by striking ‘‘thereto; (10) to’’ and all that follows 
through ‘‘the terms provided therein’’ and inserting ‘‘to the 
agreement. 
‘‘(k) EXPLORATION INCENTIVES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) WAIVER, SUSPENSION, OR REDUCTION.—To encour-
age the greatest ultimate recovery of oil or gas or in the 
interest of conservation, the Secretary may waive, suspend, 
or reduce the rental fees or minimum royalty, or reduce 
the royalty on an entire leasehold (including on any lease 
operated pursuant to a unit agreement), whenever (after 
consultation with the State of Alaska and the North Slope 
Borough of Alaska and the concurrence of any Regional 
Corporation for leases that include land that was made 
available for acquisition by the Regional Corporation under 
the provisions of section 1431(o) of the Alaska National
H. R. 6—114
Interest Lands Conservation Act (16 U.S.C. 3101 et seq.)) 
in the judgment of the Secretary it is necessary to do 
so to promote development, or whenever in the judgment 
of the Secretary the leases cannot be successfully operated 
under the terms provided therein. 
‘‘(B) APPLICABILITY.—This paragraph applies to a lease 
that is in effect on or after the date of enactment of the 
Energy Policy Act of 2005.’’; 
(12) by striking ‘‘The Secretary is authorized to’’ and 
inserting the following: 
‘‘(2) SUSPENSION
OF
OPERATIONS
AND
PRODUCTION.—The 
Secretary may’’; 
(13) by striking ‘‘In the event’’ and inserting the following: 
‘‘(3) SUSPENSION OF PAYMENTS.—If’’; 
(14) by striking ‘‘thereto; and (11) all’’ and inserting ‘‘to 
the lease. 
‘‘(l) RECEIPTS.—All’’; 
(15) by redesignating subparagraphs (A), (B), and (C) as 
paragraphs (1), (2), and (3), respectively; 
(16) by striking ‘‘Any agency’’ and inserting the following: 
‘‘(m) EXPLORATIONS.—Any agency’’; 
(17) by striking ‘‘Any action’’ and inserting the following: 
‘‘(n) ENVIRONMENTAL IMPACT STATEMENTS.— 
‘‘(1) JUDICIAL REVIEW.—Any action’’; 
(18) by striking ‘‘The detailed’’ and inserting the following: 
‘‘(2) INITIAL LEASE SALES.—The detailed’’; 
(19) by striking ‘‘section 104(b) of the Naval Petroleum 
Reserves Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)’’ 
and inserting ‘‘section 104(a)’’; and 
(20) by adding at the end the following: 
‘‘(o) REGULATIONS.—As soon as practicable after the date of 
enactment of the Energy Policy Act of 2005, the Secretary shall 
issue regulations to implement this section. 
‘‘(p) WAIVER OF ADMINISTRATION FOR CONVEYED LANDS.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 14(g) of the 
Alaska Native Claims Settlement Act (43 U.S.C. 1613(g))— 
‘‘(A) the Secretary of the Interior shall waive adminis-
tration of any oil and gas lease to the extent that the 
lease covers any land in the Reserve in which all of the 
subsurface estate is conveyed to the Arctic Slope Regional 
Corporation (referred to in this subsection as the ‘Corpora-
tion’); 
‘‘(B)(i) in a case in which a conveyance of a subsurface 
estate described in subparagraph (A) does not include all 
of the land covered by the oil and gas lease, the person 
that owns the subsurface estate in any particular portion 
of the land covered by the lease shall be entitled to all 
of the revenues reserved under the lease as to that portion, 
including, without limitation, all the royalty payable with 
respect to oil or gas produced from or allocated to that 
portion; 
‘‘(ii) in a case described in clause (i), the Secretary 
of the Interior shall— 
‘‘(I) segregate the lease into 2 leases, 1 of 
which shall cover only the subsurface estate con-
veyed to the Corporation; and