sion of a plan if the lessee determines that such revision 
will lead to greater recovery of oil and natural gas, im-
prove the efficiency, safety, and environmental protection 
of the recovery operation, is the only means available to 
avoid substantial economic hardship to the lessee, or is 
otherwise not inconsistent with the provisions of this Act, 
to the extent such revision is consistent with protection 
of the human, marine, and coastal environments. The 
process to be used for the review of any such revision shall 
be the same as that set forth in subsections (d) and (e). 
‘‘(g) CANCELLATION
OF LEASE
ON FAILURE TO 
SUBMIT PLAN OR COMPLY WITH A PLAN.—Whenever the 
owner of any lease fails to submit a plan in accordance 
with regulations issued under this section, or fails to com-
ply with a plan, the lease may be canceled in accordance 
with section 5(c) and (d). Termination of a lease because 
of failure to comply with a plan, including required modi-
fications or revisions, shall not entitle a lessee to any com-
pensation. 
‘‘(h) PRODUCTION AND TRANSPORTATION OF NAT-
URAL GAS; SUBMISSION OF PLAN TO FEDERAL ENERGY 
REGULATORY COMMISSION; IMPACT STATEMENT.—If any 
development and production plan submitted to the Sec-
retary pursuant to this section provides for the production 
and transportation of natural gas, the lessee shall contem-
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poraneously submit to the Federal Energy Regulatory 
Commission that portion of such plan that relates to the 
facilities for transportation of natural gas. The Secretary 
and the Federal Energy Regulatory Commission shall 
agree as to which of them shall prepare an environmental 
impact statement pursuant to the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable 
to such portion of such plan, or conduct studies as to the 
effect on the environment of implementing it. Thereafter, 
the findings and recommendations by the agency pre-
paring such environmental impact statement or con-
ducting such studies pursuant to such agreement shall be 
adopted by the other agency, and such other agency shall 
not independently prepare another environmental impact 
statement or duplicate such studies with respect to such 
portion of such plan, but the Federal Energy Regulatory 
Commission, in connection with its review of an applica-
tion for a certificate of public convenience and necessity 
applicable to such transportation facilities pursuant to sec-
tion 7 of the Natural Gas Act (15 U.S.C. 717f), may pre-
pare such environmental studies or statement relevant to 
certification of such transportation facilities as have not 
been covered by an environmental impact statement or 
studies prepared by the Secretary. The Secretary, in con-
sultation with the Federal Energy Regulatory Commis-
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sion, shall promulgate rules to implement this subsection, 
but the Federal Energy Regulatory Commission shall re-
tain sole authority with respect to rules and procedures 
applicable to the filing of any application with the Com-
mission and to all aspects of the Commission’s review of, 
and action on, any such application.’’. 
SEC. 14. TERMINATION OF EFFECT OF LAWS PROHIBITING 
THE SPENDING OF APPROPRIATED FUNDS 
FOR CERTAIN PURPOSES. 
All provisions of existing Federal law prohibiting the 
spending of appropriated funds to conduct oil and natural 
gas leasing and preleasing activities, or to issue a lease 
to any person, for any area of the outer Continental Shelf 
shall have no force or effect. 
SEC. 15. OUTER CONTINENTAL SHELF INCOMPATIBLE USE. 
(a) IN GENERAL.—No Federal agency may permit 
construction or operation (or both) of any facility, or des-
ignate or maintain a restricted transportation corridor or 
operating area on the Federal outer Continental Shelf or 
in State waters, that will be incompatible with, as deter-
mined by the Secretary of the Interior, oil and gas or nat-
ural gas leasing and substantially full exploration and pro-
duction of tracts that are geologically prospective for oil 
or natural gas (or both). 
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(b) EXCEPTIONS.—Subsection (a) shall not apply to 
any facility, transportation corridor, or operating area the 
construction, operation, designation, or maintenance of 
which is or will be— 
(1) located in an area of the outer Continental 
Shelf that is unavailable for oil and gas or natural 
gas leasing by operation of Federal law; 
(2) used for a military readiness activity (as de-
fined in section 315(f) of Public Law 107–314; 16 
U.S.C. 703 note); or 
(3) required in the national interest, as deter-
mined by the President. 
SEC. 16. REPURCHASE OF CERTAIN LEASES. 
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—The Secretary of the Interior shall repur-
chase and cancel any Federal oil and gas, geothermal, 
coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, but not including any outer Conti-
nental Shelf oil and gas leases that were subject to litiga-
tion in the Court of Federal Claims on January 1, 2008, 
if the Secretary finds that such lease qualifies for repur-
chase and cancellation under the regulations authorized 
by this section. 
(b) REGULATIONS.—Not later than 365 days after 
the date of enactment of this Act, the Secretary shall pub-
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