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serting ‘‘and in the Planning Areas offshore Alaska’’ after
‘‘West longitude’’.
SEC. 2007. OIL AND GAS LEASING IN THE NATIONAL PETRO-
LEUM RESERVE IN ALASKA.
(a) TRANSFER OF AUTHORITY.—
(1) REDESIGNATION.—The Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6501
et seq.) is amended by redesignating section 107 (42
U.S.C. 6507) as section 108.
(2) TRANSFER.—The matter under the heading
‘‘EXPLORATION OF NATIONAL PETROLEUM RESERVE
IN
ALASKA’’ under the heading ‘‘ENERGY AND
MINERALS’’ of title I of Public Law 96–514 (42
U.S.C. 6508) is—
(A) transferred to the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C.
6501 et seq.);
(B) designated as section 107 of that Act;
and
(C) moved so as to appear after section
106 of that Act (42 U.S.C. 6506).
(b) COMPETITIVE LEASING.—Section 107 of the
Naval Petroleum Reserves Production Act of 1976 (as
amended by subsection (a) of this section) is amended—
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(1) by striking the heading and all that follows
through ‘‘Provided, That (1) activities’’ and insert-
ing the following:
‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law and pursuant to regulations issued by the
Secretary, the Secretary shall conduct an expeditious pro-
gram of competitive leasing of oil and gas in the National
Petroleum Reserve in Alaska (referred to in this section
as the ‘Reserve’).
‘‘(b) MITIGATION OF ADVERSE EFFECTS.—Activi-
ties’’;
(2) by striking ‘‘Alaska (the Reserve); (2) the’’
and inserting
‘‘Alaska.
‘‘(c) LAND USE PLANNING; BLM WILDERNESS
STUDY.—The’’;
(3) by striking ‘‘Reserve; (3) the’’ and inserting
‘‘Reserve.
‘‘(d) FIRST LEASE SALE.—The’’;
(4) by striking ‘‘4332); (4) the’’ and inserting
‘‘4321 et seq.).
‘‘(e) WITHDRAWALS.—The’’;
(5) by striking ‘‘herein; (5) bidding’’ and insert-
ing
884
‘‘under this section.
‘‘(f) BIDDING SYSTEMS.—Bidding’’;
(6) by striking ‘‘629); (6) lease’’ and inserting
‘‘629).
‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’;
(7) by striking ‘‘structures; (7) the’’ and insert-
ing
‘‘structures.
‘‘(h) SIZE OF LEASE TRACTS.—The’’;
(8) by striking ‘‘Secretary; (8)’’ and all that fol-
lows through ‘‘Drilling, production,’’ and inserting
‘‘Secretary.
‘‘(i) TERMS.—
‘‘(1) IN GENERAL.—Each lease shall be—
‘‘(A) issued for an initial period of not
more than 10 years; and
‘‘(B) renewed for successive 10-year terms
if—
‘‘(i) oil or gas is produced from the
lease in paying quantities;
‘‘(ii) oil or gas is capable of being pro-
duced in paying quantities; or
‘‘(iii) drilling or reworking operations,
as approved by the Secretary, are con-
ducted on the leased land.
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‘‘(2) RENEWAL OF NONPRODUCING LEASES.—
The Secretary shall renew for an additional 10-year
term a lease that does not meet the requirements of
paragraph (1)(B) if the lessee submits to the Sec-
retary an application for renewal not later than 60
days before the expiration of the primary lease
and—
‘‘(A) the lessee certifies, and the Secretary
agrees, that hydrocarbon resources were discov-
ered on 1 or more wells drilled on the leased
land in such quantities that a prudent operator
would hold the lease for potential future devel-
opment;
‘‘(B) the lessee—
‘‘(i) pays the Secretary a renewal fee
of $100 per acre of leased land; and
‘‘(ii) provides evidence, and the Sec-
retary agrees that, the lessee has diligently
pursued exploration that warrants continu-
ation with the intent of continued explo-
ration or future development of the leased
land; or
‘‘(C) all or part of the lease—
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‘‘(i) is part of a unit agreement cov-
ering a lease described in subparagraph
(A) or (B); and
‘‘(ii) has not been previously con-
tracted out of the unit.
‘‘(3) APPLICABILITY.—This subsection applies
to a lease that—
‘‘(A) is entered into before, on, or after the
date of enactment of the Energy Policy Act of
2005; and
‘‘(B) is effective on or after the date of en-
actment of that Act.
‘‘(j) UNIT AGREEMENTS.—
‘‘(1) IN GENERAL.—For the purpose of con-
servation of the natural resources of all or part of
any oil or gas pool, field, reservoir, or like area, les-
sees (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 oper-
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ation), if the Secretary determines the action to be
necessary or advisable in the public interest.
‘‘(2) PARTICIPATION BY STATE OF ALASKA.—
The Secretary shall ensure that the State of Alaska
is provided the opportunity for active participation
concerning creation and management of units
formed or expanded under this subsection that in-
clude acreage in which the State of Alaska has an
interest in the mineral estate.
‘‘(3) PARTICIPATION
BY
REGIONAL
CORPORA-
TIONS.—The Secretary shall ensure that any Re-
gional Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C.
1602)) is provided the opportunity for active partici-
pation concerning creation and management of units
that include acreage in which the Regional Corpora-
tion has an interest in the mineral estate.
‘‘(4) 
PRODUCTION
ALLOCATION
METHOD-
OLOGY.—The Secretary may use a production alloca-
tion methodology for each participating area within
a unit created for land in the Reserve, State of Alas-
ka land, or Regional Corporation land shall, when
appropriate, be based on the characteristics of each
specific oil or gas pool, field, reservoir, or like area
to take into account reservoir heterogeneity and a