H. R. 6—102
Mineral Leasing Act (30 U.S.C. 181 et seq.) and the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.). 
(b) EXCLUSION OF CERTAIN RESERVE LANDS.—The transfer of 
administrative jurisdiction made by subsection (a) does not include 
the following lands: 
(1) That portion of Naval Petroleum Reserve Numbered 
2 authorized for disposal under section 3403(a) of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105–261; 10 U.S.C. 7420 note). 
(2) That portion of the surface estate of Naval Petroleum 
Reserve Numbered 2 conveyed to the City of Taft, California, 
by section 333. 
(c) PURPOSE OF TRANSFER.— 
(1) PRODUCTION OF HYDROCARBON RESOURCES.—Notwith-
standing any other provision of law, the principal purpose 
of the lands subject to transfer under subsection (a) is the 
production of hydrocarbon resources, and the Secretary of the 
Interior shall manage the lands in a fashion consistent with 
this purpose. In managing the lands, the Secretary of the 
Interior shall regulate operations to prevent unnecessary deg-
radation and to provide for ultimate economic recovery of the 
resources. 
(2) DISPOSAL AUTHORITY AND SURFACE USE.—The Secretary 
of the Interior may make disposals of lands subject to transfer 
under subsection (a), or allow commercial or non-profit surface 
use of such lands, not to exceed 10 acres each, so long as 
the disposals or surface uses do not materially interfere with 
the ultimate economic recovery of the hydrocarbon resources 
of such lands. All revenues received from the disposal of lands 
under this paragraph or from allowing the surface use of such 
lands shall be deposited in the Naval Petroleum Reserve Num-
bered 2 Lease Revenue Account established by section 332. 
(d) CONFORMING AMENDMENT.—Section 3403 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105–261; 10 U.S.C. 7420 note) is amended by striking 
subsection (b). 
SEC. 332. NAVAL PETROLEUM RESERVE NUMBERED 2 LEASE REVENUE 
ACCOUNT. 
(a) ESTABLISHMENT.—There is established in the Treasury a 
special deposit account to be known as the ‘‘Naval Petroleum 
Reserve Numbered 2 Lease Revenue Account’’ (in this section 
referred to as the ‘‘lease revenue account’’). The lease revenue 
account is a revolving account, and amounts in the lease revenue 
account shall be available to the Secretary of the Interior, without 
further appropriation, for the purposes specified in subsection (b). 
(b) PURPOSES OF ACCOUNT.— 
(1) ENVIRONMENTAL-RELATED
COSTS.—The lease revenue 
account shall be the sole and exclusive source of funds to 
pay for any and all costs and expenses incurred by the United 
States for— 
(A) environmental investigations (other than any 
environmental investigations that were conducted by the 
Secretary before the transfer of the Naval Petroleum 
Reserve Numbered 2 lands under section 331), remediation, 
compliance actions, response, waste management, impedi-
ments, fines or penalties, or any other costs or expenses
H. R. 6—103
of any kind arising from, or relating to, conditions existing 
on or below the Naval Petroleum Reserve Numbered 2 
lands, or activities occurring or having occurred on such 
lands, on or before the date of the transfer of such lands; 
and 
(B) any future remediation necessitated as a result 
of pre-transfer and leasing activities on such lands. 
(2) TRANSITION COSTS.—The lease revenue account shall 
also be available for use by the Secretary of the Interior to 
pay for transition costs incurred by the Department of the 
Interior associated with the transfer and leasing of the Naval 
Petroleum Reserve Numbered 2 lands. 
(c) FUNDING.—The lease revenue account shall consist of the 
following: 
(1) Notwithstanding any other provision of law, for a period 
of three years after the date of the transfer of the Naval 
Petroleum Reserve Numbered 2 lands under section 331, the 
sum of $500,000 per year of revenue from leases entered into 
before that date, including bonuses, rents, royalties, and 
interest charges collected pursuant to the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1701 et. seq.), 
derived from the Naval Petroleum Reserve Numbered 2 lands, 
shall be deposited into the lease revenue account. 
(2) Subject to subsection (d), all revenues derived from 
leases on Naval Petroleum Reserve Numbered 2 lands issued 
on or after the date of the transfer of such lands, including 
bonuses, rents, royalties, and interest charges collected pursu-
ant to the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1701 et seq.), shall be deposited into the 
lease revenue account. 
(d) LIMITATION.—Funds in the lease revenue account shall not 
exceed $3,000,000 at any one time. Whenever funds in the lease 
revenue account are obligated or expended so that the balance 
in the account falls below that amount, lease revenues referred 
to in subsection (c)(2) shall be deposited in the account to maintain 
a balance of $3,000,000. 
(e) TERMINATION OF ACCOUNT.—At such time as the Secretary 
of the Interior certifies that remediation of all environmental 
contamination of Naval Petroleum Reserve Numbered 2 lands in 
existence as of the date of the transfer of such lands under section 
331 has been successfully completed, that all costs and expenses 
of investigation, remediation, compliance actions, response, waste 
management, impediments, fines, or penalties associated with 
environmental contamination of such lands in existence as of the 
date of the transfer have been paid in full, and that the transition 
costs of the Department of the Interior referred to in subsection 
(b)(2) have been paid in full, the lease revenue account shall be 
terminated and any remaining funds shall be distributed in accord-
ance with subsection (f). 
(f) DISTRIBUTION OF REMAINING FUNDS.—Section 35 of the Min-
eral Leasing Act (30 U.S.C. 191) shall apply to the payment and 
distribution of all funds remaining in the lease revenue account 
upon its termination under subsection (e).