203
(ii) east of the western edge of the Pensacola 
Official Protraction Diagram (UTM X coordi-
nate 1,393,920 (NAD 27 feet)); and 
(iii) within 100 miles of the coastline of the 
State of Florida. 
(b) MILITARY MISSION LINE.—Notwithstanding sub-
section (a), the United States reserves the right to designate 
by and through the Secretary of Defense, with the approval 
of the President, national defense areas on the outer Conti-
nental Shelf pursuant to section 12(d) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1341(d)). 
(c) EXCHANGE OF CERTAIN LEASES.—
(1) IN GENERAL.—The Secretary shall permit 
any person that, as of the date of enactment of this 
Act, has entered into an oil or gas lease with the Sec-
retary in any area described in paragraph (2) or (3) 
of subsection (a) to exchange the lease for a bonus or 
royalty credit that may only be used in the Gulf of 
Mexico. 
(2) 
VALUATION
OF
EXISTING
LEASE.—The 
amount of the bonus or royalty credit for a lease to 
be exchanged shall be equal to—
(A) the amount of the bonus bid; and
204
(B) any rental paid for the lease as of the 
date the lessee notifies the Secretary of the deci-
sion to exchange the lease. 
(3) REVENUE DISTRIBUTION.—No bonus or roy-
alty credit may be used under this subsection in lieu 
of any payment due under, or to acquire any interest 
in, a lease subject to the revenue distribution provi-
sions of section 8(g) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(g)). 
(4) REGULATIONS.—Not later than 1 year after 
the date of enactment of this Act, the Secretary shall 
promulgate regulations that shall provide a process 
for—
(A) notification to the Secretary of a deci-
sion to exchange an eligible lease; 
(B) issuance of bonus or royalty credits in 
exchange for relinquishment of the existing lease; 
(C) transfer of the bonus or royalty credit 
to any other person; and 
(D) determining the proper allocation of 
bonus or royalty credits to each lease interest 
owner.
205
SEC. 105. DISPOSITION OF QUALIFIED OUTER CONTI-
NENTAL SHELF REVENUES FROM 181 AREA, 
181 SOUTH AREA, AND 2002–2007 PLANNING 
AREAS OF GULF OF MEXICO. 
(a) IN GENERAL.—Notwithstanding section 9 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1338) and 
subject to the other provisions of this section, for each appli-
cable fiscal year, the Secretary of the Treasury shall de-
posit—
(1) 50 percent of qualified outer Continental 
Shelf revenues in the general fund of the Treasury; 
and 
(2) 50 percent of qualified outer Continental 
Shelf revenues in a special account in the Treasury 
from which the Secretary shall disburse—
(A) 75 percent to Gulf producing States in 
accordance with subsection (b); and 
(B) 25 percent to provide financial assist-
ance to States in accordance with section 6 of the 
Land and Water Conservation Fund Act of 1965 
(16 U.S.C. 460l–8), which shall be considered in-
come to the Land and Water Conservation Fund 
for purposes of section 2 of that Act (16 U.S.C. 
460l–5). 
(b) ALLOCATION AMONG GULF PRODUCING STATES 
AND COASTAL POLITICAL SUBDIVISIONS.—
206
(1) 
ALLOCATION
AMONG
GULF
PRODUCING 
STATES FOR FISCAL YEARS 2007 THROUGH 2016.—
(A) IN GENERAL.—Subject to subparagraph 
(B), effective for each of fiscal years 2007 
through 2016, the amount made available under 
subsection (a)(2)(A) shall be allocated to each 
Gulf producing State in amounts (based on a 
formula established by the Secretary by regula-
tion) that are inversely proportional to the re-
spective distances between the point on the coast-
line of each Gulf producing State that is closest 
to the geographic center of the applicable leased 
tract and the geographic center of the leased 
tract. 
(B) MINIMUM
ALLOCATION.—The amount 
allocated to a Gulf producing State each fiscal 
year under subparagraph (A) shall be at least 10 
percent of the amounts available under sub-
section (a)(2)(A). 
(2) 
ALLOCATION
AMONG
GULF
PRODUCING 
STATES FOR FISCAL YEAR 2017 AND THEREAFTER.—
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), effective for fiscal year 2017 
and each fiscal year thereafter—
207
(i) the amount made available under 
subsection (a)(2)(A) from any lease entered 
into within the 181 Area or the 181 South 
Area shall be allocated to each Gulf pro-
ducing State in amounts (based on a for-
mula established by the Secretary by regula-
tion) that are inversely proportional to the 
respective distances between the point on the 
coastline of each Gulf producing State that 
is closest to the geographic center of the ap-
plicable leased tract and the geographic cen-
ter of the leased tract; and 
(ii) the amount made available under 
subsection (a)(2)(A) from any lease entered 
into within the 2002–2007 planning area 
shall be allocated to each Gulf producing 
State in amounts that are inversely propor-
tional to the respective distances between the 
point on the coastline of each Gulf pro-
ducing State that is closest to the geo-
graphic center of each historical lease site 
and the geographic center of the historical 
lease site, as determined by the Secretary. 
(B) MINIMUM
ALLOCATION.—The amount 
allocated to a Gulf producing State each fiscal
208
year under subparagraph (A) shall be at least 10 
percent of the amounts available under sub-
section (a)(2)(A). 
(C) HISTORICAL LEASE SITES.—
(i) IN
GENERAL.—Subject to clause 
(ii), for purposes of subparagraph (A)(ii), 
the historical lease sites in the 2002–2007 
planning area shall include all leases en-
tered into by the Secretary for an area in 
the Gulf of Mexico during the period begin-
ning on October 1, 1982 (or an earlier date 
if practicable, as determined by the Sec-
retary), and ending on December 31, 2015. 
(ii) ADJUSTMENT.—Effective January 
1, 2022, and every 5 years thereafter, the 
ending date described in clause (i) shall be 
extended for an additional 5 calendar years. 
(3) PAYMENTS TO COASTAL POLITICAL SUBDIVI-
SIONS.—
(A) IN GENERAL.—The Secretary shall pay 
20 percent of the allocable share of each Gulf 
producing State, as determined under para-
graphs (1) and (2), to the coastal political sub-
divisions of the Gulf producing State.
209
(B) ALLOCATION.—The amount paid by the 
Secretary to coastal political subdivisions shall 
be allocated to each coastal political subdivision 
in accordance with subparagraphs (B), (C), and 
(E) of section 31(b)(4) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1356a(b)(4)). 
(c) TIMING.—The amounts required to be deposited 
under paragraph (2) of subsection (a) for the applicable fis-
cal year shall be made available in accordance with that 
paragraph during the fiscal year immediately following the 
applicable fiscal year. 
(d) AUTHORIZED USES.—
(1) IN
GENERAL.—Subject to paragraph (2), 
each Gulf producing State and coastal political sub-
division shall use all amounts received under sub-
section (b) in accordance with all applicable Federal 
and State laws, only for 1 or more of the following 
purposes: 
(A) Projects and activities for the purposes 
of coastal protection, including conservation, 
coastal restoration, hurricane protection, and in-
frastructure directly affected by coastal wetland 
losses. 
(B) Mitigation of damage to fish, wildlife, 
or natural resources.
210
(C) Implementation of a federally-approved 
marine, coastal, or comprehensive conservation 
management plan. 
(D) Mitigation of the impact of outer Conti-
nental Shelf activities through the funding of on-
shore infrastructure projects. 
(E) Planning assistance and the adminis-
trative costs of complying with this section. 
(2) LIMITATION.—Not more than 3 percent of 
amounts received by a Gulf producing State or coast-
al political subdivision under subsection (b) may be 
used for the purposes described in paragraph (1)(E). 
(e) ADMINISTRATION.—Amounts made available under 
subsection (a)(2) shall—
(1) be made available, without further appro-
priation, in accordance with this section; 
(2) remain available until expended; and 
(3) be in addition to any amounts appropriated 
under—
(A) the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.); 
(B) the Land and Water Conservation Fund 
Act of 1965 (16 U.S.C. 460l–4 et seq.); or 
(C) any other provision of law.
211
(f) LIMITATIONS ON AMOUNT OF DISTRIBUTED QUALI-
FIED OUTER CONTINENTAL SHELF REVENUES.—
(1) IN GENERAL.—Subject to paragraph (2), the 
total amount of qualified outer Continental Shelf rev-
enues made available under subsection (a)(2) shall 
not exceed $500,000,000 for each of fiscal years 2016 
through 2055. 
(2) EXPENDITURES.—For the purpose of para-
graph (1), for each of fiscal years 2016 through 2055, 
expenditures under subsection (a)(2) shall be net of 
receipts from that fiscal year from any area in the 
181 Area in the Eastern Planning Area and the 181 
South Area. 
(3) PRO RATA REDUCTIONS.—If paragraph (1) 
limits the amount of qualified outer Continental Shelf 
revenue that would be paid under subparagraphs (A) 
and (B) of subsection (a)(2)—
(A) the Secretary shall reduce the amount of 
qualified outer Continental Shelf revenue pro-
vided to each recipient on a pro rata basis; and 
(B) any remainder of the qualified outer 
Continental Shelf revenues shall revert to the 
general fund of the Treasury.
212
TITLE II—SURFACE MINING CON-
TROL AND RECLAMATION ACT 
AMENDMENTS OF 2006
SEC. 200. SHORT TITLE. 
This title may be cited as the ‘‘Surface Mining Control 
and Reclamation Act Amendments of 2006’’. 
Subtitle A—Mining Control and 
Reclamation 
SEC. 201. ABANDONED MINE RECLAMATION FUND AND PUR-
POSES. 
(a) IN GENERAL.—Section 401 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1231) is 
amended—
(1) in subsection (c)—
(A) by striking paragraphs (2) and (6); and 
(B) by redesignating paragraphs (3), (4), 
and (5) and paragraphs (7) through (13) as 
paragraphs (2) through (11), respectively; 
(2) by striking subsection (d) and inserting the 
following: 
‘‘(d) AVAILABILITY OF MONEYS; NO FISCAL YEAR LIM-
ITATION.—
‘‘(1) IN GENERAL.—Moneys from the fund for ex-
penditures under subparagraphs (A) through (D) of
213
section 402(g)(3) shall be available only when appro-
priated for those subparagraphs. 
‘‘(2) NO FISCAL YEAR LIMITATION.—Appropria-
tions described in paragraph (1) shall be made with-
out fiscal year limitation. 
‘‘(3) OTHER PURPOSES.—Moneys from the fund 
shall be available for all other purposes of this title 
without prior appropriation as provided in sub-
section (f).’’; 
(3) in subsection (e)—
(A) in the second sentence, by striking ‘‘the 
needs of such fund’’ and inserting ‘‘achieving the 
purposes of the transfers under section 402(h)’’; 
and 
(B) in the third sentence, by inserting before 
the period the following: ‘‘for the purpose of the 
transfers under section 402(h)’’; and 
(4) by adding at the end the following: 
‘‘(f) GENERAL LIMITATION ON OBLIGATION AUTHOR-
ITY.—
‘‘(1) IN
GENERAL.—From amounts deposited 
into the fund under subsection (b), the Secretary shall 
distribute during each fiscal year beginning after 
September 30, 2007, an amount determined under 
paragraph (2).
214
‘‘(2) AMOUNTS.—
‘‘(A) FOR
FISCAL
YEARS
2008
THROUGH 
2022.—For each of fiscal years 2008 through 
2022, the amount distributed by the Secretary 
under this subsection shall be equal to—
‘‘(i) the amounts deposited into the 
fund under paragraphs (1), (2), and (4) of 
subsection (b) for the preceding fiscal year 
that were allocated under paragraphs (1) 
and (5) of section 402(g); plus 
‘‘(ii) the amount needed for the adjust-
ment under section 402(g)(8) for the current 
fiscal year. 
‘‘(B) FISCAL
YEARS
2023
AND
THERE-
AFTER.—For fiscal year 2023 and each fiscal 
year thereafter, to the extent that funds are 
available, the Secretary shall distribute an 
amount equal to the amount distributed under 
subparagraph (A) during fiscal year 2022. 
‘‘(3) DISTRIBUTION.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), for each fiscal year, of the 
amount to be distributed to States and Indian 
tribes pursuant to paragraph (2), the Secretary 
shall distribute—
215
‘‘(i) the amounts allocated under para-
graph (1) of section 402(g), the amounts al-
located under paragraph (5) of section 
402(g), and any amount reallocated under 
section 411(h)(3) in accordance with section 
411(h)(2), for grants to States and Indian 
tribes under section 402(g)(5); and 
‘‘(ii) the amounts allocated under sec-
tion 402(g)(8). 
‘‘(B) EXCLUSION.—Beginning on October 1, 
2007, certified States shall be ineligible to receive 
amounts under section 402(g)(1). 
‘‘(4) AVAILABILITY.—Amounts in the fund avail-
able to the Secretary for obligation under this sub-
section shall be available until expended. 
‘‘(5) ADDITION.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the amount distributed under this 
subsection for each fiscal year shall be in addi-
tion to the amount appropriated from the fund 
during the fiscal year. 
‘‘(B) EXCEPTIONS.—Notwithstanding para-
graph (3), the amount distributed under this 
subsection for the first 4 fiscal years beginning 
on and after October 1, 2007, shall be equal to
216
the following percentage of the amount otherwise 
required to be distributed: 
‘‘(i) 50 percent in fiscal year 2008. 
‘‘(ii) 50 percent in fiscal year 2009. 
‘‘(iii) 75 percent in fiscal year 2010. 
‘‘(iv) 75 percent in fiscal year 2011.’’. 
(b) CONFORMING AMENDMENT.—Section 712(b) of the 
Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 
1302(b)) 
is 
amended 
by 
striking 
‘‘section 
401(c)(11)’’ and inserting ‘‘section 401(c)(9)’’. 
SEC. 202. RECLAMATION FEE. 
(a) AMOUNTS.—
(1) FISCAL YEARS 2008–2012.—Effective October 
1, 2007, section 402(a) of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1232(a)) is 
amended—
(A) by striking ‘‘35’’ and inserting ‘‘31.5’’; 
(B) by striking ‘‘15’’ and inserting ‘‘13.5’’; 
and 
(C) by striking ‘‘10 cents’’ and inserting ‘‘9 
cents’’. 
(2) FISCAL YEARS 2013–2021.—Effective October 
1, 2012, section 402(a) of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1232(a)) (as 
amended by paragraph (1)) is amended—
217
(A) by striking ‘‘31.5’’ and inserting ‘‘28’’; 
(B) by striking ‘‘13.5’’ and inserting ‘‘12’’; 
and 
(C) by striking ‘‘9 cents’’ and inserting ‘‘8 
cents’’. 
(b) DURATION.—Effective September 30, 2007, section 
402(b) of the Surface Mining Control and Reclamation Act 
of 1977 (30 U.S.C. 1232(b)) (as amended by section 7007 
of the Emergency Supplemental Appropriations Act for De-
fense, the Global War on Terror, and Hurricane Recovery, 
2006 (Public Law 109–234; 120 Stat. 484)) is amended by 
striking ‘‘September 30, 2007’’ and all that follows through 
the end of the sentence and inserting ‘‘September 30, 2021.’’. 
(c) ALLOCATION OF FUNDS.—Section 402(g) of the 
Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1232(g)) is amended—
(1) in paragraph (1)(D)—
(A) by inserting ‘‘(except for grants award-
ed during fiscal years 2008, 2009, and 2010 to 
the extent not expended within 5 years)’’ after 
‘‘this paragraph’’; and 
(B) by striking ‘‘in any area under para-
graph (2), (3), (4), or (5)’’ and inserting ‘‘under 
paragraph (5)’’; 
(2) by striking paragraph (2) and inserting:
218
‘‘(2) In making the grants referred to in paragraph 
(1)(C) and the grants referred to in paragraph (5), the Sec-
retary shall ensure strict compliance by the States and In-
dian tribes with the priorities described in section 403(a) 
until a certification is made under section 411(a).’’; 
(3) in paragraph (3)—
(A) in the matter preceding subparagraph 
(A), by striking ‘‘paragraphs (2) and’’ and in-
serting ‘‘paragraph’’; 
(B) in subparagraph (A), by striking 
‘‘401(c)(11)’’ and inserting ‘‘401(c)(9)’’; and 
(C) by adding at the end the following: 
‘‘(E) For the purpose of paragraph (8).’’; 
(4) in paragraph (5)—
(A) by inserting ‘‘(A)’’ after ‘‘(5)’’; 
(B) in the first sentence, by striking ‘‘40’’ 
and inserting ‘‘60’’; 
(C) in the last sentence, by striking ‘‘Funds 
allocated or expended by the Secretary under 
paragraphs (2), (3), or (4)’’ and inserting 
‘‘Funds made available under paragraph (3) or 
(4)’’; and 
(D) by adding at the end the following:
219
‘‘(B) Any amount that is reallocated and available 
under section 411(h)(3) shall be in addition to amounts 
that are allocated under subparagraph (A).’’; and 
(5) by striking paragraphs (6) through (8) and 
inserting the following: 
‘‘(6)(A) Any State with an approved abandoned mine 
reclamation program pursuant to section 405 may receive 
and retain, without regard to the 3-year limitation referred 
to in paragraph (1)(D), up to 30 percent of the total of 
the grants made annually to the State under paragraphs 
(1) and (5) if those amounts are deposited into an acid 
mine drainage abatement and treatment fund established 
under State law, from which amounts (together with all in-
terest earned on the amounts) are expended by the State 
for the abatement of the causes and the treatment of the 
effects of acid mine drainage in a comprehensive manner 
within qualified hydrologic units affected by coal mining 
practices. 
‘‘(B) In this paragraph, the term ‘qualified hydrologic 
unit’ means a hydrologic unit—
‘‘(i) in which the water quality has been signifi-
cantly affected by acid mine drainage from coal min-
ing practices in a manner that adversely impacts bio-
logical resources; and 
‘‘(ii) that contains land and water that are—
220
‘‘(I) eligible pursuant to section 404 and in-
clude any of the priorities described in section 
403(a); and 
‘‘(II) the subject of expenditures by the 
State from the forfeiture of bonds required under 
section 509 or from other States sources to abate 
and treat acid mine drainage. 
‘‘(7) In complying with the priorities described in sec-
tion 403(a), any State or Indian tribe may use amounts 
available in grants made annually to the State or tribe 
under paragraphs (1) and (5) for the reclamation of eligible 
land and water described in section 403(a)(3) before the 
completion of reclamation projects under paragraphs (1) 
and (2) of section 403(a) only if the expenditure of funds 
for the reclamation is done in conjunction with the expendi-
ture before, on, or after the date of enactment of the Surface 
Mining Control and Reclamation Act Amendments of 2006 
of funds for reclamation projects under paragraphs (1) and 
(2) of section 403(a). 
‘‘(8)(A) In making funds available under this title, the 
Secretary shall ensure that the grant awards total not less 
than $3,000,000 annually to each State and each Indian 
tribe having an approved abandoned mine reclamation pro-
gram pursuant to section 405 and eligible land and water 
pursuant to section 404, so long as an allocation of funds
221
to the State or tribe is necessary to achieve the priorities 
stated in paragraphs (1) and (2) of section 403(a). 
‘‘(B) Notwithstanding any other provision of law, this 
paragraph applies to the States of Tennessee and Mis-
souri.’’. 
(d) TRANSFERS OF INTEREST EARNED BY ABANDONED 
MINE RECLAMATION FUND.—Section 402 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1232) is amended by striking subsection (h) and inserting 
the following: 
‘‘(h) TRANSFERS OF INTEREST EARNED BY FUND.—
‘‘(1) IN GENERAL.—
‘‘(A) TRANSFERS
TO
COMBINED
BENEFIT 
FUND.—As soon as practicable after the begin-
ning of fiscal year 2007 and each fiscal year 
thereafter, and before making any allocation 
with respect to the fiscal year under subsection 
(g), the Secretary shall use an amount not to ex-
ceed the amount of interest that the Secretary es-
timates will be earned and paid to the fund dur-
ing the fiscal year to transfer to the Combined 
Benefit Fund such amounts as are estimated by 
the trustees of such fund to offset the amount of 
any deficit in net assets in the Combined Benefit
222
Fund as of October 1, 2006, and to make the 
transfer described in paragraph (2)(A). 
‘‘(B) 
TRANSFERS
TO
1992
AND
1993 
PLANS.—As soon as practicable after the begin-
ning of fiscal year 2008 and each fiscal year 
thereafter, and before making any allocation 
with respect to the fiscal year under subsection 
(g), the Secretary shall use an amount not to ex-
ceed the amount of interest that the Secretary es-
timates will be earned and paid to the fund dur-
ing the fiscal year (reduced by the amount used 
under subparagraph (A)) to make the transfers 
described in paragraphs (2)(B) and (2)(C). 
‘‘(2) TRANSFERS DESCRIBED.—The transfers re-
ferred to in paragraph (1) are the following: 
‘‘(A) UNITED MINE WORKERS OF AMERICA 
COMBINED
BENEFIT
FUND.—A transfer to the 
United Mine Workers of America Combined Ben-
efit Fund equal to the amount that the trustees 
of the Combined Benefit Fund estimate will be 
expended from the fund for the fiscal year in 
which the transfer is made, reduced by—
‘‘(i) the amount the trustees of the 
Combined Benefit Fund estimate the Com-
223
bined Benefit Fund will receive during the 
fiscal year in—
‘‘(I) required premiums; and 
‘‘(II) payments paid by Federal 
agencies in connection with benefits 
provided by the Combined Benefit 
Fund; and 
‘‘(ii) the amount the trustees of the 
Combined Benefit Fund estimate will be ex-
pended during the fiscal year to provide 
health benefits to beneficiaries who are un-
assigned beneficiaries solely as a result of 
the application of section 9706(h)(1) of the 
Internal Revenue Code of 1986, but only to 
the extent that such amount does not exceed 
the 
amounts 
described 
in 
subsection 
(i)(1)(A) that the Secretary estimates will 
be available to pay such estimated expendi-
tures. 
‘‘(B) UNITED MINE WORKERS OF AMERICA 
1992 BENEFIT PLAN.—A transfer to the United 
Mine Workers of America 1992 Benefit Plan, in 
an amount equal to the difference between—
‘‘(i) the amount that the trustees of the 
1992 UMWA Benefit Plan estimate will be
224
expended from the 1992 UMWA Benefit 
Plan during the next calendar year to pro-
vide the benefits required by the 1992 
UMWA Benefit Plan on the date of enact-
ment of this subparagraph; minus 
‘‘(ii) the amount that the trustees of 
the 1992 UMWA Benefit Plan estimate the 
1992 UMWA Benefit Plan will receive dur-
ing the next calendar year in—
‘‘(I) required monthly per bene-
ficiary 
premiums, 
including 
the 
amount of any security provided to the 
1992 UMWA Benefit Plan that is 
available for use in the provision of 
benefits; and 
‘‘(II) payments paid by Federal 
agencies in connection with benefits 
provided by the 1992 UMWA benefit 
plan. 
‘‘(C) MULTIEMPLOYER
HEALTH
BENEFIT 
PLAN.—A transfer to the Multiemployer Health 
Benefit Plan established after July 20, 1992, by 
the parties that are the settlors of the 1992 
UMWA Benefit Plan referred to in subparagraph 
(B) (referred to in this subparagraph and sub-
225
paragraph (D) as ‘the Plan’), in an amount 
equal to the excess (if any) of—
‘‘(i) the amount that the trustees of the 
Plan estimate will be expended from the 
Plan during the next calendar year, to pro-
vide benefits no greater than those provided 
by the Plan as of December 31, 2006; over 
‘‘(ii) the amount that the trustees esti-
mated the Plan will receive during the next 
calendar year in payments paid by Federal 
agencies in connection with benefits pro-
vided by the Plan. 
Such excess shall be calculated by taking into ac-
count only those beneficiaries actually enrolled 
in the Plan as of December 31, 2006, who are el-
igible to receive benefits under the Plan on the 
first day of the calendar year for which the 
transfer is made. 
‘‘(D) 
INDIVIDUALS
CONSIDERED
EN-
ROLLED.—For purposes of subparagraph (C), 
any individual who was eligible to receive bene-
fits from the Plan as of the date of enactment of 
this subsection, even though benefits were being 
provided to the individual pursuant to a settle-
ment agreement approved by order of a bank-
226
ruptcy court entered on or before September 30, 
2004, will be considered to be actually enrolled 
in the Plan and shall receive benefits from the 
Plan beginning on December 31, 2006. 
‘‘(3) ADJUSTMENT.—If, for any fiscal year, the 
amount of a transfer under subparagraph (A), (B), or 
(C) of paragraph (2) is more or less than the amount 
required to be transferred under that subparagraph, 
the Secretary shall appropriately adjust the amount 
transferred under that subparagraph for the next fis-
cal year. 
‘‘(4) ADDITIONAL AMOUNTS.—
‘‘(A) PREVIOUSLY
CREDITED
INTEREST.—
Notwithstanding any other provision of law, any 
interest credited to the fund that has not pre-
viously been transferred to the Combined Benefit 
Fund referred to in paragraph (2)(A) under this 
section—
‘‘(i) shall be held in reserve by the Sec-
retary until such time as necessary to make 
the payments under subparagraphs (A) and 
(B) of subsection (i)(1), as described in 
clause (ii); and 
‘‘(ii) in the event that the amounts de-
scribed in subsection (i)(1) are insufficient
227
to make the maximum payments described 
in subparagraphs (A) and (B) of subsection 
(i)(1), shall be used by the Secretary to sup-
plement the payments so that the maximum 
amount permitted under those paragraphs 
is paid. 
‘‘(B) PREVIOUSLY ALLOCATED AMOUNTS.—
All amounts allocated under subsection (g)(2) be-
fore the date of enactment of this subparagraph 
for the program described in section 406, but not 
appropriated before that date, shall be available 
to the Secretary to make the transfers described 
in paragraph (2). 
‘‘(C) ADEQUACY OF PREVIOUSLY CREDITED 
INTEREST.—The Secretary shall—
‘‘(i) consult with the trustees of the 
plans described in paragraph (2) at reason-
able intervals; and 
‘‘(ii) notify Congress if a determina-
tion is made that the amounts held in re-
serve under subparagraph (A) are insuffi-
cient to meet future requirements under sub-
paragraph (A)(ii). 
‘‘(D) ADDITIONAL RESERVE AMOUNTS.—In 
addition to amounts held in reserve under sub-
228
paragraph (A), there is authorized to be appro-
priated such sums as may be necessary for trans-
fer to the fund to carry out the purposes of sub-
paragraph (A)(ii). 
‘‘(E) INAPPLICABILITY OF CAP.—The limi-
tation described in subsection (i)(3)(A) shall not 
apply to payments made from the reserve fund 
under this paragraph. 
‘‘(5) LIMITATIONS.—
‘‘(A) AVAILABILITY
OF
FUNDS
FOR
NEXT 
FISCAL YEAR.—The Secretary may make trans-
fers under subparagraphs (B) and (C) of para-
graph (2) for a calendar year only if the Sec-
retary determines, using actuarial projections 
provided by the trustees of the Combined Benefit 
Fund referred to in paragraph (2)(A), that 
amounts will be available under paragraph (1), 
after the transfer, for the next fiscal year for 
making the transfer under paragraph (2)(A). 
‘‘(B) RATE
OF
CONTRIBUTIONS
OF
OBLI-
GORS.—
‘‘(i) IN GENERAL.—
‘‘(I) RATE.—A transfer under 
paragraph (2)(C) shall not be made for 
a calendar year unless the persons that
229
are obligated to contribute to the plan 
referred to in paragraph (2)(C) on the 
date of the transfer are obligated to 
make the contributions at rates that 
are no less than those in effect on the 
date which is 30 days before the date 
of enactment of this subsection. 
‘‘(II) 
APPLICATION.—The 
con-
tributions described in subclause (I) 
shall be applied first to the provision 
of benefits to those plan beneficiaries 
who are not described in paragraph 
(2)(C)(ii). 
‘‘(ii) INITIAL CONTRIBUTIONS.—
‘‘(I) IN GENERAL.—From the date 
of enactment of the Surface Mining 
Control and Reclamation Act Amend-
ments of 2006 through December 31, 
2010, the persons that, on the date of 
enactment of that Act, are obligated to 
contribute to the plan referred to in 
paragraph (2)(C) shall be obligated, 
collectively, 
to 
make 
contributions 
equal to the amount described in para-
graph (2)(C), less the amount actually
230
transferred due to the operation of sub-
paragraph (C). 
‘‘(II) FIRST
CALENDAR
YEAR.—
Calendar year 2006 is the first cal-
endar year for which contributions are 
required under this clause. 
‘‘(III) AMOUNT OF CONTRIBUTION 
FOR 2006.—Except as provided in sub-
clause (IV), the amount described in 
paragraph (2)(C) for calendar year 
2006 shall be calculated as if para-
graph (2)(C) had been in effect during 
2005. 
‘‘(IV) LIMITATION.—The contribu-
tions required under this clause for cal-
endar year 2006 shall not exceed the 
amount necessary for solvency of the 
plan described in paragraph (2)(C), 
measured as of December 31, 2006 and 
taking into account all assets held by 
the plan as of that date. 
‘‘(iii) DIVISION.—The collective annual 
contribution 
obligation 
required 
under 
clause (ii) shall be divided among the per-
sons subject to the obligation, and applied
231
uniformly, based on the hours worked for 
which contributions referred to in clause (i) 
would be owed. 
‘‘(C) PHASE-IN OF TRANSFERS.—For each 
of calendar years 2008 through 2010, the trans-
fers required under subparagraphs (B) and (C) 
of paragraph (2) shall equal the following 
amounts: 
‘‘(i) For calendar year 2008, the Sec-
retary shall make transfers equal to 25 per-
cent of the amounts that would otherwise be 
required under subparagraphs (B) and (C) 
of paragraph (2). 
‘‘(ii) For calendar year 2009, the Sec-
retary shall make transfers equal to 50 per-
cent of the amounts that would otherwise be 
required under subparagraphs (B) and (C) 
of paragraph (2). 
‘‘(iii) For calendar year 2010, the Sec-
retary shall make transfers equal to 75 per-
cent of the amounts that would otherwise be 
required under subparagraphs (B) and (C) 
of paragraph (2). 
‘‘(i) FUNDING.—
232
‘‘(1) IN
GENERAL.—Subject to paragraph (3), 
out of any funds in the Treasury not otherwise appro-
priated, the Secretary of the Treasury shall transfer 
to the plans described in subsection (h)(2) such sums 
as are necessary to pay the following amounts: 
‘‘(A) To the Combined Fund (as defined in 
section 9701(a)(5) of the Internal Revenue Code 
of 1986 and referred to in this paragraph as the 
‘Combined Fund’), the amount that the trustees 
of the Combined Fund estimate will be expended 
from premium accounts maintained by the Com-
bined Fund for the fiscal year to provide benefits 
for beneficiaries who are unassigned beneficiaries 
solely as a result of the application of section 
9706(h)(1) of the Internal Revenue Code of 1986, 
subject to the following limitations: 
‘‘(i) For fiscal year 2008, the amount 
paid under this subparagraph shall equal—
‘‘(I) the amount described in sub-
paragraph (A); minus 
‘‘(II) the amounts required under 
section 9706(h)(3)(A) of the Internal 
Revenue Code of 1986. 
‘‘(ii) For fiscal year 2009, the amount 
paid under this subparagraph shall equal—
233
‘‘(I) the amount described in sub-
paragraph (A); minus 
‘‘(II) the amounts required under 
section 9706(h)(3)(B) of the Internal 
Revenue Code of 1986. 
‘‘(iii) For fiscal year 2010, the amount 
paid under this subparagraph shall equal—
‘‘(I) the amount described in sub-
paragraph (A); minus 
‘‘(II) the amounts required under 
section 9706(h)(3)(C) of the Internal 
Revenue Code of 1986. 
‘‘(B) On certification by the trustees of any 
plan described in subsection (h)(2) that the 
amount available for transfer by the Secretary 
pursuant to this section (determined after appli-
cation of any limitation under subsection (h)(5)) 
is less than the amount required to be trans-
ferred, to the plan the amount necessary to meet 
the requirement of subsection (h)(2). 
‘‘(C) To the Combined Fund, $9,000,000 on 
October 1, 2007, $9,000,000 on October 1, 2008, 
and $9,000,000 on October 1, 2009 (which 
amounts shall not be exceeded) to provide a re-
fund of any premium (as described in section
234
9704(a) of the Internal Revenue Code of 1986) 
paid on or before September 7, 2000, to the Com-
bined Fund, plus interest on the premium cal-
culated at the rate of 7.5 percent per year, on a 
proportional basis and to be paid not later than 
60 days after the date on which each payment is 
received by the Combined Fund, to those signa-
tory operators (to the extent that the Combined 
Fund has not previously returned the premium 
amounts to the operators), or any related persons 
to the operators (as defined in section 9701(c) of 
the Internal Revenue Code of 1986), or their 
heirs, successors, or assigns who have been denied 
the refunds as the result of final judgments or 
settlements if—
‘‘(i) prior to the date of enactment of 
this paragraph, the signatory operator (or 
any related person to the operator)—
‘‘(I) had all of its beneficiary as-
signments made under section 9706 of 
the Internal Revenue Code of 1986 
voided by the Commissioner of the So-
cial Security Administration; and 
‘‘(II) was subject to a final judg-
ment or final settlement of litigation
235
adverse to a claim by the operator that 
the assignment of beneficiaries under 
section 9706 of the Internal Revenue 
Code of 1986 was unconstitutional as 
applied to the operator; and 
‘‘(ii) on or before September 7, 2000, 
the signatory operator (or any related per-
son to the operator) had paid to the Com-
bined Fund any premium amount that had 
not been refunded. 
‘‘(2) 
PAYMENTS
TO
STATES
AND
INDIAN 
TRIBES.—Subject to paragraph (3), out of any funds 
in the Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Secretary 
of the Interior for distribution to States and Indian 
tribes such sums as are necessary to pay amounts de-
scribed in paragraphs (1)(A) and (2)(A) of section 
411(h). 
‘‘(3) LIMITATIONS.—
‘‘(A) CAP.—The total amount transferred 
under this subsection for any fiscal year shall 
not exceed $490,000,000. 
‘‘(B) INSUFFICIENT AMOUNTS.—In a case 
in which the amount required to be transferred 
without regard to this paragraph exceeds the
236
maximum annual limitation in subparagraph 
(A), the Secretary shall adjust the transfers of 
funds so that—
‘‘(i) each transfer for the fiscal year is 
a percentage of the amount described; 
‘‘(ii) the amount is determined without 
regard to subsection (h)(5)(A); and 
‘‘(iii) the percentage transferred is the 
same for all transfers made under this sub-
section for the fiscal year. 
‘‘(4) AVAILABILITY OF FUNDS.—Funds shall be 
transferred under paragraph (1) and (2) beginning in 
fiscal year 2008 and each fiscal year thereafter, and 
shall remain available until expended.’’. 
SEC. 203. OBJECTIVES OF FUND. 
Section 403 of the Surface Mining Control and Rec-
lamation Act of 1977 (30 U.S.C. 1233) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘(1) the protection’’ and 
inserting the following: 
‘‘(1)(A) the protection;’’; 
(ii) in subparagraph (A) (as des-
ignated by clause (i)), by striking ‘‘general 
welfare,’’; and
237
(iii) by adding at the end the fol-
lowing: 
‘‘(B) the restoration of land and water resources 
and the environment that—
‘‘(i) have been degraded by the adverse ef-
fects of coal mining practices; and 
‘‘(ii) are adjacent to a site that has been or 
will be remediated under subparagraph (A);’’; 
(B) in paragraph (2)—
(i) by striking ‘‘(2) the protection’’ and 
inserting the following: 
‘‘(2)(A) the protection’’; 
(ii) in subparagraph (A) (as des-
ignated by clause (i), by striking ‘‘health, 
safety, and general welfare’’ and inserting 
‘‘health and safety’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) the restoration of land and water resources 
and the environment that—
‘‘(i) have been degraded by the adverse ef-
fects of coal mining practices; and 
‘‘(ii) are adjacent to a site that has been or 
will be remediated under subparagraph (A); 
and’’;
238
(C) in paragraph (3), by striking the semi-
colon at the end and inserting a period; and 
(D) by striking paragraphs (4) and (5); 
(2) in subsection (b)—
(A) by striking the subsection heading and 
inserting ‘‘WATER SUPPLY RESTORATION.—’’; 
and 
(B) in paragraph (1), by striking ‘‘up to 30 
percent of the’’; and 
(3) in the second sentence of subsection (c), by 
inserting ‘‘, subject to the approval of the Secretary,’’ 
after ‘‘amendments’’. 
SEC. 204. RECLAMATION OF RURAL LAND. 
(a) ADMINISTRATION.—Section 406(h) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1236(h)) is amended by striking ‘‘Soil Conservation Serv-
ice’’ and inserting ‘‘Natural Resources Conservation Serv-
ice’’. 
(b) AUTHORIZATION OF APPROPRIATIONS FOR CAR-
RYING OUT RURAL LAND RECLAMATION.—Section 406 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1236) is amended by adding at the end the fol-
lowing: 
‘‘(i) There are authorized to be appropriated to the 
Secretary of Agriculture, from amounts in the Treasury
239
other than amounts in the fund, such sums as may be nec-
essary to carry out this section.’’. 
SEC. 205. LIENS. 
Section 408(a) of the Surface Mining Control and Rec-
lamation Act of 1977 (30 U.S.C. 1238) is amended in the 
last sentence by striking ‘‘who owned the surface prior to 
May 2, 1977, and’’. 
SEC. 206. CERTIFICATION. 
Section 411 of the Surface Mining Control and Rec-
lamation Act of 1977 (30 U.S.C. 1240a) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ before the first sen-
tence; and 
(B) by adding at the end the following: 
‘‘(2)(A) The Secretary may, on the initiative of the 
Secretary, make the certification referred to in paragraph 
(1) on behalf of any State or Indian tribe referred to in 
paragraph (1) if on the basis of the inventory referred to 
in section 403(c) all reclamation projects relating to the 
priorities described in section 403(a) for eligible land and 
water pursuant to section 404 in the State or tribe have 
been completed. 
‘‘(B) The Secretary shall only make the certification 
after notice in the Federal Register and opportunity for 
public comment.’’; and
240
(2) by adding at the end the following: 
‘‘(h) PAYMENTS TO STATES AND INDIAN TRIBES.—
‘‘(1) IN GENERAL.—
‘‘(A) PAYMENTS.—
‘‘(i) IN
GENERAL.—Notwithstanding 
section 401(f)(3)(B), from funds referred to 
in section 402(i)(2), the Secretary shall 
make payments to States or Indian tribes 
for the amount due for the aggregate unap-
propriated amount allocated to the State or 
Indian tribe under subparagraph (A) or (B) 
of section 402(g)(1). 
‘‘(ii) CONVERSION
AS
EQUIVALENT 
PAYMENTS.—Amounts allocated under sub-
paragraphs (A) or (B) of section 402(g)(1) 
shall be reallocated to the allocation estab-
lished in section 402(g)(5) in amounts 
equivalent to payments made to States or 
Indian tribes under this paragraph. 
‘‘(B) AMOUNT DUE.—In this paragraph, the 
term ‘amount due’ means the unappropriated 
amount allocated to a State or Indian tribe be-
fore October 1, 2007, under subparagraph (A) or 
(B) of section 402(g)(1).
241
‘‘(C) SCHEDULE.—Payments under sub-
paragraph (A) shall be made in 7 equal annual 
installments, beginning with fiscal year 2008. 
‘‘(D) USE OF FUNDS.—
‘‘(i) CERTIFIED
STATES
AND
INDIAN 
TRIBES.—A State or Indian tribe that 
makes a certification under subsection (a) 
in which the Secretary concurs shall use 
any amounts provided under this para-
graph for the purposes established by the 
State legislature or tribal council of the In-
dian tribe, with priority given for address-
ing the impacts of mineral development. 
‘‘(ii) UNCERTIFIED
STATES
AND
IN-
DIAN TRIBES.—A State or Indian tribe that 
has not made a certification under sub-
section (a) in which the Secretary has con-
curred shall use any amounts provided 
under this paragraph for the purposes de-
scribed in section 403. 
‘‘(2) SUBSEQUENT
STATE
AND
INDIAN
TRIBE 
SHARE
FOR
CERTIFIED
STATES
AND
INDIAN 
TRIBES.—
‘‘(A) IN
GENERAL.—Notwithstanding sec-
tion 401(f)(3)(B), from funds referred to in sec-
242
tion 402(i)(2), the Secretary shall pay to each 
certified State or Indian tribe an amount equal 
to the sum of the aggregate unappropriated 
amount allocated on or after October 1, 2007, to 
the certified State or Indian tribe under sub-
paragraph (A) or (B) of section 402(g)(1). 
‘‘(B) CERTIFIED STATE OR INDIAN TRIBE 
DEFINED.—In this paragraph the term ‘certified 
State or Indian tribe’ means a State or Indian 
tribe for which a certification is made under 
subsection (a) in which the Secretary concurs. 
‘‘(3) MANNER OF PAYMENT.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), payments to States or Indian tribes 
under this subsection shall be made without re-
gard to any limitation in section 401(d) and 
concurrently with payments to States under that 
section. 
‘‘(B) INITIAL PAYMENTS.—The first 3 pay-
ments made to any State or Indian tribe shall 
be reduced to 25 percent, 50 percent, and 75 per-
cent, respectively, of the amounts otherwise re-
quired under paragraph (2)(A). 
‘‘(C) INSTALLMENTS.—Amounts withheld 
from the first 3 annual installments as provided
243
under subparagraph (B) shall be paid in 2 equal 
annual installments beginning with fiscal year 
2018. 
‘‘(4) REALLOCATION.—
‘‘(A) IN GENERAL.—The amount allocated 
to any State or Indian tribe under subpara-
graph (A) or (B) of section 402(g)(1) that is 
paid to the State or Indian tribe as a result of 
a payment under paragraph (1) or (2) shall be 
reallocated and available for grants under sec-
tion 402(g)(5). 
‘‘(B) ALLOCATION.—The grants shall be al-
located based on the amount of coal historically 
produced before August 3, 1977, in the same 
manner as under section 402(g)(5).’’. 
SEC. 207. REMINING INCENTIVES. 
Title IV of the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1231 et seq.) is amended by 
adding at the following: 
‘‘SEC. 415. REMINING INCENTIVES. 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this Act, the Secretary may, after opportunity for 
public comment, promulgate regulations that describe con-
ditions under which amounts in the fund may be used to 
provide incentives to promote remining of eligible land
244
under section 404 in a manner that leverages the use of 
amounts from the fund to achieve more reclamation with 
respect to the eligible land than would be achieved without 
the incentives. 
‘‘(b) REQUIREMENTS.—Any regulations promulgated 
under subsection (a) shall specify that the incentives shall 
apply only if the Secretary determines, with the concur-
rence of the State regulatory authority referred to in title 
V, that, without the incentives, the eligible land would not 
be likely to be remined and reclaimed. 
‘‘(c) INCENTIVES.—
‘‘(1) IN GENERAL.—Incentives that may be con-
sidered for inclusion in the regulations promulgated 
under subsection (a) include, but are not limited to—
‘‘(A) a rebate or waiver of the reclamation 
fees required under section 402(a); and 
‘‘(B) the use of amounts in the fund to pro-
vide financial assurance for remining operations 
in lieu of all or a portion of the performance 
bonds required under section 509. 
‘‘(2) LIMITATIONS.—
‘‘(A) USE.—A rebate or waiver under para-
graph (1)(A) shall be used only for operations 
that—