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(B) The lease sales shall be based upon an in-
dustry nomination process.
(C) The Secretary is directed to grant to the
highest responsible qualified bidder or bidders by
competitive bidding, under regulations promulgated
in advance, any oil and gas lease on unleased Fed-
eral lands within the Coastal Plain. These regula-
tions may provide for the deposit of cash bids in an
interest-bearing account until the Secretary accepts
the bids, with interest earned paid to the General
Treasury for bids that are accepted, and to the un-
successful bidders for bids that are rejected.
(D) Royalty payments shall not be less than
121⁄2 percent, and rental payments shall be pre-
scribed by the Secretary.
(E) The Attorney General of the United States
and the Federal Trade Commission may conduct
such review of lease terms and lease sale activities
as are necessary to ensure compliance with the anti-
trust laws.
(F) The size of lease tracts may be up to
11,520 acres but not less than 2,560 acres, as deter-
mined by the Secretary, except that the Secretary
may lease smaller tracts if he determines smaller
tracts are necessary to promote a more competitive
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leasing program or are necessary in certain locations
to mitigate reasonably foreseeable impacts on the en-
vironment.
(G) Each lease shall be issued for an initial pe-
riod of up to 10 years and shall be extended as long
as oil or gas is produced in paying quantities from
the lease or unit area to which the lease is commit-
ted or as drilling or reworking operations as ap-
proved by the Secretary are conducted thereon.
(H) The Secretary is authorized and directed to
promulgate regulations and to include terms in
leases to ensure that—
(i) activities are conducted pursuant to an
approved exploration or development plan;
(ii) lessees secure an appropriate perform-
ance bond to cover activities;
(iii) provision is made for the suspension,
cancellation, assignment, relinquishment and
unitization of leases; and
(iv) the Secretary has access to lease infor-
mation and that confidential, privileged or pro-
prietary information furnished by lessees is ade-
quately protected.
(e) JUDICIAL REVIEW.—Any complaint filed seeking
judicial review of an action of the Secretary in promulgat-
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ing any regulation under this section may be filed only
in the United States Court of Appeals for the District of
Columbia, and such complaint shall be filed within 90 days
from the date of such promulgation, or after such date
if such complaint is based solely on grounds arising after
such 90th day, in which case the complaint must be filed
within 90 days after the complainant knew or reasonably
should have known of the grounds for the complaint. Any
complaint seeking judicial review of any other actions of
the Secretary under this section may be filed in any appro-
priate district court of the United States, and such com-
plaint must be filed within 90 days from the date of the
action being challenged, or after such date if such com-
plaint is based solely on grounds arising after such 90th
day, in which case the complaint must be filed within 90
days after the complainant knew or reasonably should
have known of the grounds for the complaint.
(f) ADMINISTRATION.—(1) Section 1003 of the Alas-
ka National Interest Lands Conservation Act of 1980 (94
Stat. 2452; 16 U.S.C. 3143) is repealed.
(2) This section shall be considered the primary land
management authorization for all activities associated
with exploration, development, and production from the
Coastal Plain. No land management review, determina-
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tion, or other action shall be required except as specifically
authorized by this section.
(g) PROTECTION
OF FISH
AND WILDLIFE RE-
SOURCES
AND OTHER ENVIRONMENTAL VALUES.—(1)
Before conducting a competitive oil and gas lease sale
under this section, the Secretary shall promulgate, within
6 months, as provided in subsection (d)(1), such rules and
regulations as are necessary to ensure that oil and gas
exploration, development, production, and transportation
activities undertaken in the Coastal Plain achieve the rea-
sonable protection of the fish and wildlife resources, envi-
ronment and subsistence uses of the Coastal Plain.
(2) The Secretary shall administer the provisions of
this section through regulations and lease terms that the
Secretary determines to be necessary to mitigate reason-
ably foreseeable and significantly adverse effects on the
fish and wildlife, surface resources and subsistence re-
sources of the Coastal Plain.
(3)(A) The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, is authorized to close to leasing and
designate up to 30,000 acres of the Coastal Plain as Spe-
cial Areas if the Secretary determines that these lands are
of such unique character and interest so as to require spe-
cial management and regulatory protection. The Secretary
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shall notify the Committee on Energy and Natural Re-
sources of the Senate and the Committee on Resources
of the House of Representatives 90 days in advance of
making such designations. The Secretary may permit leas-
ing of all or portions of any lands within the Coastal Plain
designated as Special Areas by setting lease terms that
limit or condition surface use and occupancy by lessees
of such lands but permit the use of horizontal drilling
technology from sites on leases located outside the des-
ignated Special Areas.
(B) Notwithstanding any other provision of law or
any international agreement to which the United States
is a party, the Secretary’s sole authority to close lands
within the Coastal Plain to oil and gas leasing and to ex-
ploration, development, and production as provided for in
this part is set forth in subparagraph (A).
(4) The Secretary shall, in consultation with the
State of Alaska, the city of Kaktovik, Alaska, and the
North Slope Borough, develop guidelines to encourage the
siting of facilities having common use characteristics
(service bases, ports and docks, airports, major pipelines
and roads) in a manner which leads to facility consolida-
tion, avoids unnecessary duplication, utilizes existing fa-
cilities, minimizes impacts on fish, wildlife, habitat and the
subsistence activities of residents of Native communities,
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and avoids disruption of the lives of the residents of the
Village of Kaktovik and other communities.
(5) Notwithstanding title XI of the Alaska National
Interest Lands Conservation Act of 1980 (94 Stat. 2457;
16 U.S.C. 3161 et seq.), the Secretary is authorized and
directed to grant, under sections 28(a) through (t) and
(v) through (y) of the Mineral Leasing Act (30 U.S.C.
185), rights-of-way and easements across the Coastal
Plain for the purposes of this section, for pipeline con-
struction, and the transportation of oil and gas and relat-
ed purposes.
(6) The Secretary is authorized to close, on a sea-
sonal basis, portions of the Coastal Plain to exploratory
drilling activities as necessary to protect caribou calving
areas and other species of fish and wildlife.
(h) APPLICATION OF ENVIRONMENTAL LAWS.—The
‘‘Final Legislative Environmental Impact Statement’’
(April 1987) prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980
(94 Stat. 2449; 16 U.S.C. 3142) and section 102(2)(C)
of the National Environmental Policy Act of 1969 (89
Stat. 424; 42 U.S.C. 4332(2)(C)) is hereby determined
to be adequate and legally sufficient for all actions author-
ized pursuant to this section, including all phases of oil
and gas leasing, exploration, development, production,
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transportation and related activities, including the grant-
ing of rights-of-way, use permits and other authorizations.
(i) NEW REVENUES.—(1) Notwithstanding any other
provision of law, all revenues received from competitive
bids, sales, bonuses, royalties, rents, fees, interest or other
income derived from the leasing of oil and gas resources
within the Coastal Plain shall be deposited into the Treas-
ury of the United States: Provided, That 50 percent of
all such Coastal Plain revenues shall be paid by the Sec-
retary of the Treasury semiannually, on March 30th and
on September 30th of each year, to the State of Alaska.
(2) On March 1st of each year following the date of
enactment of this section, the Secretary shall prepare and
submit to the Congress an annual report on the revenues
derived and on the leasing program authorized by this sec-
tion.
(j) CONVEYANCE.—Notwithstanding the provisions of
section 1302(h)(2) of the Alaska National Interest Lands
Conservation Act (16 U.S.C. 3192(h)(2)), the Secretary
is authorized and directed to convey (1) to the Kaktovik
Inupiat Corporation the surface estate of the lands de-
scribed in paragraph 2 of Public Land Order 6959, to the
extent necessary to fulfill the corporation’s entitlement
under section 12 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1611), and (2) to the Arctic Slope Re-
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gional Corporation the subsurface estate beneath such
surface estate pursuant to the August 9, 1983, agreement
between the Arctic Slope Regional Corporation and the
United States of America.
(k) PENALTY.—Any person, including any Federal
official, who fails to comply with any provision or mandate
of this section, a lease term, or a regulation promulgated
under this section, after notice of such failure and expira-
tion of a reasonable period for corrective action, shall be
liable, after hearing, for a civil penalty of not more than
$10,000 for each day of the continuance of such failure.
(l) COMMUNITY ASSISTANCE.—There is hereby estab-
lished a Community Assistance Fund in the Treasury
which shall be maintained at a level of $5,000,000 annu-
ally from the Federal share of Coastal Plain revenues and
shall be available to the Secretary for the purposes of this
section. Organized boroughs, other municipal subdivisions
of the State of Alaska, and recognized Indian Reorganiza-
tion Act entities which are impacted by activities author-
ized under this section shall be eligible, on application to
the Secretary, for local assistance from the Community
Assistance Fund for needed social services and to provide
public services and facilities required in connection with
supporting exploration and development of the Coastal
Plain.
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(m) EMPLOYMENT AND CONTRACTING.—As a condi-
tion of any leases, permits, or other Federal authorizations
granted or issued pursuant to this section, a recipient of
those leases, permits, or authorizations shall be required
to use its best efforts to assure that the lessee and its
agents and contractors provide a fair share of employment
and contracting for Alaska Natives and Alaska Native
Corporations from throughout the State.
(n) USE OF ANWR REVENUES.—
(1) ESTABLISHMENT OF ENDOWMENT.—There
is hereby established in the general fund of the
Treasury a separate account which shall be known
as the National Endowment for Fish and Wildlife.
(2) CONTENTS.—(A) Except as provided in
subparagraph (B), the Endowment shall consist of
revenues received from the following sources:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
(iii) Any revenues deposited into the
Treasury of the United States under subsection
(i), from the Federal share of revenues derived
from oil and gas leasing within the Coastal
Plain, that exceed $1,300,000,000.
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(B) After the Endowment has reached a level of
$250,000,000 in principal, further payments to the
Endowment shall consist only of the following:
(i) Gifts, devises, and bequests to the En-
dowment.
(ii) Amounts appropriated by the Congress
to the Endowment.
(iii) 5 percent of the Federal royalties de-
rived from commercial production of oil and gas
on Federal leases on the Coastal Plain.
(3) ESTABLISHMENT OF FISH AND WILDLIFE
CONSERVATION COMMISSION.—(A) To carry out the
purposes of this subsection, there is hereby estab-
lished a commission to be known as the Fish and
Wildlife Conservation Commission.
(B) The Commission shall consist of—
(i) the Secretary of the Interior, who shall
be the chairman,
(ii) 3 Members of the Senate selected by
the President of the Senate, and
(iii) 3 Members of the House of Represent-
atives selected by the Speaker.
(C) At least 1 member of the Commission se-
lected from each House of Congress shall be a mem-
ber of the minority party in that House.
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(D) Any Member of the House of Representa-
tives who is a member of the Commission, if re-
elected to the succeeding Congress, may serve on the
Commission notwithstanding the expiration of a
Congress.
(E) Any vacancy on the Commission shall be
filled in the same manner as the original appoint-
ment.
(4) EXPENDITURES BY COMMISSION.—(A) The
Fish and Wildlife Commission may make expendi-
tures from the Endowment for the following fish and
wildlife conservation purposes:
(i) Acquisition of important habitat lands
for endangered species or threatened species
from owners of private property. Such lands
may be acquired solely on a willing seller basis
and shall be managed by the Secretary of the
Interior for the conservation of such species
pursuant to the terms of section 5 of the En-
dangered Species Act of 1973 (16 U.S.C.
1534).
(ii) Provision of funding for purposes au-
thorized under the Endangered Species Act of
1973.
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(iii) Provision of funds to the North Amer-
ican Wetlands Conservation Fund pursuant to
the North American Wetlands Conservation Act
(16 U.S.C. 4401 et seq.).
(B) The amount expended under subparagraph
(A)(iii) each fiscal year shall equal or exceed 25 per-
cent of the total expenditures from the Endowment
in that fiscal year.
(C) The Secretary of the Interior may not rec-
ommend any lands or interest in lands for purchase
or other forms of acquisition using funds made
available under the terms of this section unless the
Secretary of the Interior—
(i) has determined that such lands are nec-
essary for the conservation of endangered spe-
cies or other fish and wildlife; and
(ii) has consulted with the county or other
unit of local government in which such lands
are located and with the Governor of the State
concerned.
(D) Land or an interest in land may not be ac-
quired with moneys from the Endowment unless—
(i) the acquisition thereof has been ap-
proved by the Governor of the State in which
the land is located; and