party may bring a cause of action under this sub-
section. 
(3) COURT ACTION.—If an action is brought 
under paragraph (2), the Court shall review whether 
the parties to the memorandum of agreement have 
been acting in good faith, whether the applicant has 
been cooperating fully with the agencies that are re-
sponsible for issuing a Federal refinery authoriza-
tion, and any other relevant materials in the consoli-
dated record. Taking into consideration those fac-
tors, if the Court finds that a failure to act de-
scribed in paragraph (1) has occurred, and that such 
failure to act would jeopardize timely completion of 
the entire schedule as established in the memo-
randum of agreement, the Court shall establish a 
new schedule that is the most expeditious coordi-
nated schedule possible for completion of pro-
ceedings, consistent with the full substantive and 
procedural review required by Federal law. The 
court may issue orders to enforce any schedule it es-
tablishes under this paragraph. 
(4) FEDERAL COORDINATOR’S ACTION.—When 
any civil action is brought under this subsection, the 
Federal coordinator shall immediately file with the 
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Court the consolidated record compiled by the Fed-
eral coordinator pursuant to subsection (c). 
(5) EXPEDITED REVIEW.—The Court shall set 
any civil action brought under this subsection for ex-
pedited consideration. 
SEC. 305. DESIGNATION OF CLOSED MILITARY BASES OR 
OTHER FACILITIES. 
(a) DESIGNATION REQUIREMENT.—Not later than 
90 days after the date of enactment of this Act, the Presi-
dent shall designate no less than 3 closed military installa-
tions or other closed government-owned facilities, or por-
tions thereof, as potentially suitable for the construction 
of a refinery. At least 1 such site shall be designated as 
potentially suitable for construction of a refinery to refine 
biomass in order to produce biofuel. 
(b) REDEVELOPMENT AUTHORITY.—The redevelop-
ment authority for each installation or facility designated 
under subsection (a), in preparing or revising the redevel-
opment plan for the installation or facility, shall consider 
the feasibility and practicability of siting a refinery on the 
installation or facility. 
(c) MANAGEMENT AND DISPOSAL OF REAL PROP-
ERTY.—The relevant Secretary, in managing and dis-
posing of real property at an installation or facility des-
ignated under subsection (a), shall give substantial def-
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erence to the recommendations of the redevelopment au-
thority, as contained in the redevelopment plan, regarding 
the siting of a refinery on the installation or facility. The 
management and disposal of real property at a closed mili-
tary installation or portion thereof found to be suitable 
for the siting of a refinery under subsection (a) shall be 
carried out in the manner provided by the base closure 
law applicable to the installation. 
(d) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘base closure law’’ means the De-
fense Base Closure and Realignment Act of 1990 
(part A of title XXIX of Public Law 101–510; 10 
U.S.C. 2687 note) and title II of the Defense Au-
thorization Amendments and Base Closure and Re-
alignment Act (Public Law 100–526; 10 U.S.C. 
2687 note); 
(2) the term ‘‘closed military installation’’ 
means a military installation closed or approved for 
closure pursuant to a base closure law; and 
(3) the term ‘‘closed government-owned facility’’ 
means any government-owned facility (other than a 
military installation) closed or approved for closure 
under Federal law. 
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SEC. 306. SAVINGS CLAUSE. 
Nothing in this subtitle shall be construed to affect 
the application of any environmental or other law, or to 
prevent any party from bringing a cause of action under 
any environmental or other law, including citizen suits. 
SEC. 307. REFINERY REVITALIZATION REPEAL. 
Subtitle H of title III of the Energy Policy Act of 
2005 and the items relating thereto in the table of con-
tents of such Act are repealed. 
Subtitle B—Oil and Gas Develop-
ment on the Coastal Plain of 
Alaska 
SEC. 311. DEFINITIONS. 
In this subtitle: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area described in appendix I to 
part 37 of title 50, Code of Federal Regulations. 
(2) SECRETARY.—The term ‘‘Secretary’’, except 
as otherwise provided, means the Secretary of the 
Interior or the Secretary’s designee. 
SEC. 312. LEASING PROGRAM FOR LANDS WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall take such ac-
tions as are necessary— 
(1) to establish and implement, in accordance 
with this subtitle and acting through the Director of 
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the Bureau of Land Management in consultation 
with the Director of the United States Fish and 
Wildlife Service, a competitive oil and gas leasing 
program that will result in an environmentally sound 
program for the exploration, development, and pro-
duction of the oil and gas resources of the Coastal 
Plain; and 
(2) to administer the provisions of this subtitle 
through regulations, lease terms, conditions, restric-
tions, prohibitions, stipulations, and other provisions 
that ensure the oil and gas exploration, development, 
and production activities on the Coastal Plain will 
result in no significant adverse effect on fish and 
wildlife, their habitat, subsistence resources, and the 
environment, including, in furtherance of this goal, 
by requiring the application of the best commercially 
available technology for oil and gas exploration, de-
velopment, and production to all exploration, devel-
opment, and production operations under this sub-
title in a manner that ensures the receipt of fair 
market value by the public for the mineral resources 
to be leased. 
(b) REPEAL.— 
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(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act of 1980 (16 
U.S.C. 3143) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act is amended by 
striking the item relating to section 1003. 
(c) COMPLIANCE WITH REQUIREMENTS UNDER CER-
TAIN OTHER LAWS.— 
(1) COMPATIBILITY.—For purposes of the Na-
tional Wildlife Refuge System Administration Act of 
1966 (16 U.S.C. 668dd et seq.), the oil and gas 
leasing program and activities authorized by this 
section in the Coastal Plain are deemed to be com-
patible with the purposes for which the Arctic Na-
tional Wildlife Refuge was established, and no fur-
ther findings or decisions are required to implement 
this determination. 
(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The 
‘‘Final 
Legislative 
Environ-
mental Impact Statement’’ (April 1987) on the 
Coastal Plain prepared pursuant to section 1002 of 
the Alaska National Interest Lands Conservation 
Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 
of the National Environmental Policy Act of 1969 
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of enactment of this Act. The Secretary shall only 
consider public comments that specifically address 
the Secretary’s preferred action and that are filed 
within 20 days after publication of an environmental 
analysis. Notwithstanding any other law, compliance 
with this paragraph is deemed to satisfy all require-
ments for the analysis and consideration of the envi-
ronmental effects of proposed leasing under this sub-
title. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle shall be considered to ex-
pand or limit State and local regulatory authority. 
(e) SPECIAL AREAS.— 
(1) IN
GENERAL.—The Secretary, after con-
sultation with the State of Alaska, the city of 
Kaktovik, and the North Slope Borough, may des-
ignate up to a total of 45,000 acres of the Coastal 
Plain as a Special Area if the Secretary determines 
that the Special Area is of such unique character 
and interest so as to require special management 
and regulatory protection. The Secretary shall des-
ignate as such a Special Area the Sadlerochit Spring 
area, comprising approximately 4,000 acres. 
(2) MANAGEMENT.—Each such Special Area 
shall be managed so as to protect and preserve the 
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area’s unique and diverse character including its 
fish, wildlife, and subsistence resource values. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.—The Secretary may exclude any Spe-
cial Area from leasing. If the Secretary leases a Spe-
cial Area, or any part thereof, for purposes of oil 
and gas exploration, development, production, and 
related activities, there shall be no surface occu-
pancy of the lands comprising the Special Area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
the other provisions of this subsection, the Secretary 
may lease all or a portion of a Special Area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the Spe-
cial Area. 
(f) LIMITATION
ON
CLOSED
AREAS.—The Sec-
retary’s sole authority to close lands within the Coastal 
Plain to oil and gas leasing and to exploration, develop-
ment, and production is that set forth in this subtitle. 
(g) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this subtitle, including rules and regulations re-
lating to protection of the fish and wildlife, their 
habitat, subsistence resources, and environment of 
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the Coastal Plain, by no later than 15 months after 
the date of enactment of this Act. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, if appropriate, 
revise the rules and regulations issued under sub-
section (a) to reflect any significant biological, envi-
ronmental, or engineering data that come to the Sec-
retary’s attention. 
SEC. 313. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this subtitle to any person qualified to obtain a lease for 
deposits of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after such nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
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(c) LEASE SALE BIDS.—Bidding for leases under 
this subtitle shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this subtitle, the Secretary shall offer for 
lease those tracts the Secretary considers to have the 
greatest potential for the discovery of hydrocarbons, tak-
ing into consideration nominations received pursuant to 
subsection (b)(1), but in no case less than 200,000 acres. 
(e) TIMING
OF
LEASE
SALES.—The Secretary 
shall— 
(1) conduct the first lease sale under this sub-
title within 22 months after the date of the enact-
ment of this Act; and 
(2) conduct additional sales so long as sufficient 
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales. 
SEC. 314. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—The Secretary may grant to the 
highest responsible qualified bidder in a lease sale con-
ducted pursuant to section 313 any lands to be leased on 
the Coastal Plain upon payment by the lessee of such 
bonus as may be accepted by the Secretary. 
(b) SUBSEQUENT
TRANSFERS.—No lease issued 
under this subtitle may be sold, exchanged, assigned, sub-
let, or otherwise transferred except with the approval of 
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the Secretary. Prior to any such approval the Secretary 
shall consult with, and give due consideration to the views 
of, the Attorney General. 
SEC. 315. LEASE TERMS AND CONDITIONS. 
An oil or gas lease issued pursuant to this subtitle 
shall— 
(1) provide for the payment of a royalty of not 
less than 121⁄2 percent in amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary under the regulations appli-
cable to other Federal oil and gas leases; 
(2) require that the lessee of lands within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of lands within the Coastal Plain 
and any other Federal lands that are adversely af-
fected in connection with exploration, development, 
production, or transportation activities conducted 
under the lease and within the Coastal Plain by the 
lessee or by any of the subcontractors or agents of 
the lessee; 
(3) provide that the lessee may not delegate or 
convey, by contract or otherwise, the reclamation re-
sponsibility and liability to another person without 
the express written approval of the Secretary; 
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(4) provide that the standard of reclamation for 
lands required to be reclaimed under this subtitle 
shall be, as nearly as practicable, a condition capable 
of supporting the uses which the lands were capable 
of supporting prior to any exploration, development, 
or production activities, or upon application by the 
lessee, to a higher or better use as approved by the 
Secretary; 
(5) include requirements and restrictions to 
provide for reasonable protection of fish and wildlife, 
their habitat, subsistence resources, and the environ-
ment as determined by the Secretary; 
(6) prohibit the export of oil produced under 
the lease; and 
(7) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with the provisions of this subtitle and the regula-
tions issued under this subtitle. 
SEC. 316. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
The Secretary shall, consistent with the requirements of 
section 312, administer the provisions of this subtitle 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that— 
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(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain 
will result in no significant adverse effect on fish 
and wildlife, their habitat, and the environment; 
(2) require the application of the best commer-
cially available technology for oil and gas explo-
ration, development, and production on all new ex-
ploration, development, and production operations; 
and 
(3) ensure that the maximum amount of sur-
face acreage covered by production and support fa-
cilities, including airstrips and any areas covered by 
gravel berms or piers for support of pipelines, does 
not exceed 2,000 acres on the Coastal Plain. 
(b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 
The Secretary shall also require, with respect to any pro-
posed drilling and related activities, that— 
(1) a site-specific analysis be made of the prob-
able effects, if any, that the drilling or related activi-
ties will have on fish and wildlife, their habitat, sub-
sistence resources, and the environment; 
(2) a plan be implemented to avoid, minimize, 
and mitigate (in that order and to the extent prac-
ticable) any significant adverse effect identified 
under paragraph (1); and 
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(3) the development of the plan shall occur 
after consultation with the agency or agencies hav-
ing jurisdiction over matters mitigated by the plan. 
(c) REGULATIONS TO PROTECT COASTAL PLAIN 
FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 
AND THE ENVIRONMENT.—Before implementing the leas-
ing program authorized by this subtitle, the Secretary 
shall prepare and promulgate regulations, lease terms, 
conditions, restrictions, prohibitions, stipulations, and 
other measures designed to ensure that the activities un-
dertaken on the Coastal Plain under this subtitle are con-
ducted in a manner consistent with the purposes and envi-
ronmental requirements of this subtitle. 
(d) COMPLIANCE WITH FEDERAL AND STATE ENVI-
RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 
proposed regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations for the leasing program 
under this subtitle shall require compliance with all appli-
cable provisions of Federal and State environmental law, 
and shall also require the following: 
(1) Standards at least as effective as the safety 
and environmental mitigation measures set forth in 
items 1 through 29 at pages 167 through 169 of the 
‘‘Final Legislative Environmental Impact State-
ment’’ (April 1987) on the Coastal Plain. 
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(2) Seasonal limitations on exploration, develop-
ment, and related activities, where necessary, to 
avoid significant adverse effects during periods of 
concentrated fish and wildlife breeding, denning, 
nesting, spawning, and migration. 
(3) Design safety and construction standards 
for all pipelines and any access and service roads, 
that— 
(A) minimize, to the maximum extent pos-
sible, adverse effects upon the passage of mi-
gratory species such as caribou; and 
(B) minimize adverse effects upon the flow 
of surface water by requiring the use of cul-
verts, bridges, and other structural devices. 
(4) Prohibitions on general public access and 
use on all pipeline access and service roads. 
(5) Stringent reclamation and rehabilitation re-
quirements, consistent with the standards set forth 
in this subtitle, requiring the removal from the 
Coastal Plain of all oil and gas development and 
production facilities, structures, and equipment upon 
completion of oil and gas production operations, ex-
cept that the Secretary may exempt from the re-
quirements of this paragraph those facilities, struc-
tures, or equipment that the Secretary determines 
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would assist in the management of the Arctic Na-
tional Wildlife Refuge and that are donated to the 
United States for that purpose. 
(6) Appropriate prohibitions or restrictions on 
access by all modes of transportation. 
(7) Appropriate prohibitions or restrictions on 
sand and gravel extraction. 
(8) Consolidation of facility siting. 
(9) Appropriate prohibitions or restrictions on 
use of explosives. 
(10) Avoidance, to the extent practicable, of 
springs, streams, and river system; the protection of 
natural surface drainage patterns, wetlands, and ri-
parian habitats; and the regulation of methods or 
techniques for developing or transporting adequate 
supplies of water for exploratory drilling. 
(11) Avoidance or minimization of air traffic-re-
lated disturbance to fish and wildlife. 
(12) Treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
muds and cuttings, and domestic wastewater, includ-
ing an annual waste management report, a haz-
ardous materials tracking system, and a prohibition 
on chlorinated solvents, in accordance with applica-
ble Federal and State environmental law. 
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(13) Fuel storage and oil spill contingency plan-
ning. 
(14) Research, monitoring, and reporting re-
quirements. 
(15) Field crew environmental briefings. 
(16) Avoidance of significant adverse effects 
upon subsistence hunting, fishing, and trapping by 
subsistence users. 
(17) Compliance with applicable air and water 
quality standards. 
(18) Appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited. 
(19) Reasonable stipulations for protection of 
cultural and archeological resources. 
(20) All other protective environmental stipula-
tions, restrictions, terms, and conditions deemed 
necessary by the Secretary. 
(e) CONSIDERATIONS.—In preparing and promul-
gating regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations under this section, the Sec-
retary shall consider the following: 
(1) The stipulations and conditions that govern 
the National Petroleum Reserve-Alaska leasing pro-
gram, as set forth in the 1999 Northeast National 
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Petroleum Reserve-Alaska Final Integrated Activity 
Plan/Environmental Impact Statement. 
(2) The environmental protection standards 
that governed the initial Coastal Plain seismic explo-
ration program under parts 37.31 to 37.33 of title 
50, Code of Federal Regulations. 
(3) The land use stipulations for exploratory 
drilling on the KIC–ASRC private lands that are set 
forth in Appendix 2 of the August 9, 1983, agree-
ment between Arctic Slope Regional Corporation and 
the United States. 
(f) FACILITY CONSOLIDATION PLANNING.— 
(1) IN GENERAL.—The Secretary shall, after 
providing for public notice and comment, prepare 
and update periodically a plan to govern, guide, and 
direct the siting and construction of facilities for the 
exploration, development, production, and transpor-
tation of Coastal Plain oil and gas resources. 
(2) OBJECTIVES.—The plan shall have the fol-
lowing objectives: 
(A) Avoiding unnecessary duplication of fa-
cilities and activities. 
(B) Encouraging consolidation of common 
facilities and activities. 
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(C) Locating or confining facilities and ac-
tivities to areas that will minimize impact on 
fish and wildlife, their habitat, and the environ-
ment. 
(D) Utilizing existing facilities wherever 
practicable. 
(E) Enhancing compatibility between wild-
life values and development activities. 
(g) ACCESS
TO PUBLIC LANDS.—The Secretary 
shall— 
(1) manage public lands in the Coastal Plain 
subject to subsections (a) and (b) of section 811 of 
the Alaska National Interest Lands Conservation 
Act (16 U.S.C. 3121); and 
(2) ensure that local residents shall have rea-
sonable access to public lands in the Coastal Plain 
for traditional uses. 
SEC. 317. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINT.— 
(1) DEADLINE.—Subject to paragraph (2), any 
complaint seeking judicial review of any provision of 
this subtitle or any action of the Secretary under 
this subtitle shall be filed— 
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(A) except as provided in subparagraph 
(B), within the 90-day period beginning on the 
date of the action being challenged; or 
(B) in the case of a complaint based solely 
on grounds arising after such period, within 90 
days after the complainant knew or reasonably 
should have known of the grounds for the com-
plaint. 
(2) VENUE.—Any complaint seeking judicial re-
view of any provision of this subtitle or any action 
of the Secretary under this subtitle may be filed only 
in the United States Court of Appeals for the Dis-
trict of Columbia. 
(3) LIMITATION
ON
SCOPE
OF
CERTAIN
RE-
VIEW.—Judicial review of a Secretarial decision to 
conduct a lease sale under this subtitle, including 
the environmental analysis thereof, shall be limited 
to whether the Secretary has complied with the 
terms of this subtitle and shall be based upon the 
administrative record of that decision. The Sec-
retary’s identification of a preferred course of action 
to enable leasing to proceed and the Secretary’s 
analysis of environmental effects under this subtitle 
shall be presumed to be correct unless shown other-
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wise by clear and convincing evidence to the con-
trary. 
(b) LIMITATION ON OTHER REVIEW.—Actions of the 
Secretary with respect to which review could have been 
obtained under this section shall not be subject to judicial 
review in any civil or criminal proceeding for enforcement. 
SEC. 318. FEDERAL AND STATE DISTRIBUTION OF REVE-
NUES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, of the amount of adjusted bonus, rental, and 
royalty revenues from Federal oil and gas leasing and op-
erations authorized under this subtitle— 
(1) 25 percent shall be paid to the State of 
Alaska; and 
(2) except as otherwise provided by this Act, 
the balance shall be deposited into the Treasury as 
miscellaneous receipts. 
(b) PAYMENTS TO ALASKA.—Payments to the State 
of Alaska under this section shall be made semiannually. 
SEC. 319. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall issue rights- 
of-way and easements across the Coastal Plain for the 
transportation of oil and gas— 
(1) except as provided in paragraph (2), under 
section 28 of the Mineral Leasing Act (30 U.S.C. 
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185), without regard to title XI of the Alaska Na-
tional Interest Lands Conservation Act (30 U.S.C. 
3161 et seq.); and 
(2) under title XI of the Alaska National Inter-
est Lands Conservation Act (30 U.S.C. 3161 et 
seq.), for access authorized by sections 1110 and 
1111 of that Act (16 U.S.C. 3170 and 3171). 
(b) TERMS AND CONDITIONS.—The Secretary shall 
include in any right-of-way or easement issued under sub-
section (a) such terms and conditions as may be necessary 
to ensure that transportation of oil and gas does not result 
in a significant adverse effect on the fish and wildlife, sub-
sistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be 
sited or designed so as to avoid unnecessary duplication 
of roads and pipelines. 
(c) REGULATIONS.—The Secretary shall include in 
regulations under section 312(g) provisions granting 
rights-of-way and easements described in subsection (a) 
of this section. 
SEC. 320. CONVEYANCE. 
In order to maximize Federal revenues by removing 
clouds on title to lands and clarifying land ownership pat-
terns within the Coastal Plain, the Secretary, notwith-
standing the provisions of section 1302(h)(2) of the Alas-
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ka National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), shall convey— 
(1) to the Kaktovik Inupiat Corporation the 
surface estate of the lands described in paragraph 1 
of Public Land Order 6959, to the extent necessary 
to fulfill the Corporation’s entitlement under sec-
tions 12 and 14 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1611 and 1613) in accordance 
with the terms and conditions of the Agreement be-
tween the Department of the Interior, the United 
States Fish and Wildlife Service, the Bureau of 
Land Management, and the Kaktovik Inupiat Cor-
poration effective January 22, 1993; and 
(2) to the Arctic Slope Regional Corporation 
the remaining subsurface estate to which it is enti-
tled pursuant to the August 9, 1983, agreement be-
tween the Arctic Slope Regional Corporation and the 
United States of America. 
SEC. 321. LOCAL GOVERNMENT IMPACT AID AND COMMU-
NITY SERVICE ASSISTANCE. 
(a) FINANCIAL ASSISTANCE AUTHORIZED.— 
(1) IN
GENERAL.—The Secretary may use 
amounts available from the Coastal Plain Local Gov-
ernment Impact Aid Assistance Fund established by 
subsection (d) to provide timely financial assistance 
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to entities that are eligible under paragraph (2) and 
that are directly impacted by the exploration for or 
production of oil and gas on the Coastal Plain under 
this subtitle. 
(2) ELIGIBLE
ENTITIES.—The North Slope 
Borough, the City of Kaktovik, and any other bor-
ough, municipal subdivision, village, or other com-
munity in the State of Alaska that is directly im-
pacted by exploration for, or the production of, oil 
or gas on the Coastal Plain under this subtitle, as 
determined by the Secretary, shall be eligible for fi-
nancial assistance under this section. 
(b) USE
OF
ASSISTANCE.—Financial assistance 
under this section may be used only for— 
(1) planning for mitigation of the potential ef-
fects of oil and gas exploration and development on 
environmental, social, cultural, recreational, and sub-
sistence values; 
(2) implementing mitigation plans and main-
taining mitigation projects; 
(3) developing, carrying out, and maintaining 
projects and programs that provide new or expanded 
public facilities and services to address needs and 
problems associated with such effects, including fire- 
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fighting, police, water, waste treatment, medivac, 
and medical services; and 
(4) establishment of a coordination office, by 
the north slope borough, in the City of Kaktovik, 
which shall— 
(A) coordinate with and advise developers 
on local conditions, impact, and history of the 
areas utilized for development; and 
(B) provide to the Committee on Resources 
of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the 
Senate an annual report on the status of co-
ordination between developers and the commu-
nities affected by development. 
(c) APPLICATION.— 
(1) IN GENERAL.—Any community that is eligi-
ble for assistance under this section may submit an 
application for such assistance to the Secretary, in 
such form and under such procedures as the Sec-
retary may prescribe by regulation. 
(2) NORTH SLOPE BOROUGH COMMUNITIES.—A 
community located in the North Slope Borough may 
apply for assistance under this section either directly 
to the Secretary or through the North Slope Bor-
ough. 
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(3) APPLICATION ASSISTANCE.—The Secretary 
shall work closely with and assist the North Slope 
Borough and other communities eligible for assist-
ance under this section in developing and submitting 
applications for assistance under this section. 
(d) ESTABLISHMENT OF FUND.— 
(1) IN GENERAL.—There is established in the 
Treasury the Coastal Plain Local Government Im-
pact Aid Assistance Fund. 
(2) USE.—Amounts in the fund may be used 
only for providing financial assistance under this 
section. 
(3) DEPOSITS.—Subject to paragraph (4), there 
shall be deposited into the fund amounts received by 
the United States as revenues derived from rents, 
bonuses, and royalties from Federal leases and lease 
sales authorized under this subtitle. 
(4) LIMITATION
ON
DEPOSITS.—The total 
amount in the fund may not exceed $11,000,000. 
(5) INVESTMENT
OF
BALANCES.—The Sec-
retary of the Treasury shall invest amounts in the 
fund in interest bearing government securities. 
(e) AUTHORIZATION OF APPROPRIATIONS.—To pro-
vide financial assistance under this section there is author-
ized to be appropriated to the Secretary from the Coastal 
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Plain Local Government Impact Aid Assistance Fund 
$5,000,000 for each fiscal year. 
Subtitle C—Opening of Outer 
Continental Shelf 
SEC. 331. SHORT TITLE. 
This subtitle may be cited as the ‘‘Deep Ocean En-
ergy Resources Act of 2008’’. 
SEC. 332. POLICY. 
It is the policy of the United States that— 
(1) the United States is blessed with abundant 
energy resources on the outer Continental Shelf and 
has developed a comprehensive framework of envi-
ronmental laws and regulations and fostered the de-
velopment of state-of-the-art technology that allows 
for the responsible development of these resources 
for the benefit of its citizenry; 
(2) adjacent States are required by the cir-
cumstances to commit significant resources in sup-
port of exploration, development, and production ac-
tivities for mineral resources on the outer Conti-
nental Shelf, and it is fair and proper for a portion 
of the receipts from such activities to be shared with 
Adjacent States and their local coastal governments; 
(3) the existing laws governing the leasing and 
production of the mineral resources of the outer 
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Continental Shelf have reduced the production of 
mineral resources, have preempted Adjacent States 
from being sufficiently involved in the decisions re-
garding the allowance of mineral resource develop-
ment, and have been harmful to the national inter-
est; 
(4) the national interest is served by granting 
the Adjacent States more options related to whether 
or not mineral leasing should occur in the outer 
Continental Shelf within their Adjacent Zones; 
(5) it is not reasonably foreseeable that explo-
ration of a leased tract located more than 25 miles 
seaward of the coastline, development and produc-
tion of a natural gas discovery located more than 25 
miles seaward of the coastline, or development and 
production of an oil discovery located more than 50 
miles seaward of the coastline will adversely affect 
resources near the coastline; 
(6) transportation of oil from a leased tract 
might reasonably be foreseen, under limited cir-
cumstances, to have the potential to adversely affect 
resources near the coastline if the oil is within 50 
miles of the coastline, but such potential to adversely 
affect such resources is likely no greater, and prob-
ably less, than the potential impacts from tanker 
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transportation because tanker spills usually involve 
large releases of oil over a brief period of time; and 
(7) among other bodies of inland waters, the 
Great Lakes, Long Island Sound, Delaware Bay, 
Chesapeake Bay, Albemarle Sound, San Francisco 
Bay, and Puget Sound are not part of the outer 
Continental Shelf, and are not subject to leasing by 
the Federal Government for the exploration, develop-
ment, and production of any mineral resources that 
might lie beneath them. 
SEC. 333. DEFINITIONS UNDER THE OUTER CONTINENTAL 
SHELF LANDS ACT. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended— 
(1) by amending paragraph (f) to read as fol-
lows: 
‘‘(f) The term ‘affected State’ means the Adjacent 
State.’’; 
(2) by striking the semicolon at the end of each 
of paragraphs (a) through (o) and inserting a pe-
riod; 
(3) by striking ‘‘; and’’ at the end of paragraph 
(p) and inserting a period; 
(4) by adding at the end the following: 
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‘‘(r) The term ‘Adjacent State’ means, with respect 
to any program, plan, lease sale, leased tract or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, any State the laws of which are 
declared, pursuant to section 4(a)(2), to be the law of the 
United States for the portion of the outer Continental 
Shelf on which such program, plan, lease sale, leased tract 
or activity appertains or is, or is proposed to be, con-
ducted. For purposes of this paragraph, the term ‘State’ 
includes Puerto Rico and the other Territories of the 
United States. 
‘‘(s) The term ‘Adjacent Zone’ means, with respect 
to any program, plan, lease sale, leased tract, or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, the portion of the outer Continental 
Shelf for which the laws of a particular Adjacent State 
are declared, pursuant to section 4(a)(2), to be the law 
of the United States. 
‘‘(t) The term ‘miles’ means statute miles. 
‘‘(u) The term ‘coastline’ has the same meaning as 
the term ‘coast line’ as defined in section 2(c) of the Sub-
merged Lands Act (43 U.S.C. 1301(c)). 
‘‘(v) The term ‘Neighboring State’ means a coastal 
State having a common boundary at the coastline with the 
Adjacent State.’’; and 
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(5) in paragraph (a), by inserting after ‘‘con-
trol’’ the following: ‘‘or lying within the United 
States exclusive economic zone adjacent to the Terri-
tories of the United States’’. 
SEC. 334. DETERMINATION OF ADJACENT ZONES AND 
PLANNING AREAS. 
Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 
first sentence by striking ‘‘, and the President’’ and all 
that follows through the end of the sentence and inserting 
the following: ‘‘. The lines extending seaward and defining 
each State’s Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental 
Shelf region entitled ‘Alaska OCS Region State Adjacent 
Zone and OCS Planning Areas’, ‘Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas’, ‘Gulf of 
Mexico OCS Region State Adjacent Zones and OCS Plan-
ning Areas’, and ‘Atlantic OCS Region State Adjacent 
Zones and OCS Planning Areas’, all of which are dated 
September 2005 and on file in the Office of the Director, 
Minerals Management Service.’’. 
SEC. 335. ADMINISTRATION OF LEASING. 
Section 5 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1334) is amended by adding at the end the 
following: 
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‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A 
LEASE.—Any lessee of a producing lease may relinquish 
to the Secretary any portion of a lease that the lessee has 
no interest in producing and that the Secretary finds is 
geologically prospective. In return for any such relinquish-
ment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, 
in accordance with regulations promulgated by the Sec-
retary to carry out this subsection. The Secretary shall 
publish final regulations implementing this subsection 
within 365 days after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2008. 
‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 
than July 1, 2009, the Secretary shall publish a final regu-
lation that shall— 
‘‘(1) establish procedures for entering into nat-
ural gas leases; 
‘‘(2) ensure that natural gas leases are only 
available for tracts on the outer Continental Shelf 
that are wholly within 100 miles of the coastline 
within an area withdrawn from disposition by leas-
ing on the day after the date of enactment of the 
Deep Ocean Energy Resources Act of 2008; 
‘‘(3) provide that natural gas leases shall con-
tain the same rights and obligations established for 
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oil and gas leases, except as otherwise provided in 
the Deep Ocean Energy Resources Act of 2008; 
‘‘(4) provide that, in reviewing the adequacy of 
bids for natural gas leases, the value of any crude 
oil estimated to be contained within any tract shall 
be excluded; 
‘‘(5) provide that any crude oil produced from 
a well and reinjected into the leased tract shall not 
be subject to payment of royalty, and that the Sec-
retary shall consider, in setting the royalty rates for 
a natural gas lease, the additional cost to the lessee 
of not producing any crude oil; and 
‘‘(6) provide that any Federal law that applies 
to an oil and gas lease on the outer Continental 
Shelf shall apply to a natural gas lease unless other-
wise clearly inapplicable.’’. 
SEC. 336. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
(1) in subsection (a)(1) by inserting after the 
first sentence the following: ‘‘Further, the Secretary 
may grant natural gas leases in a manner similar to 
the granting of oil and gas leases and under the var-
ious bidding systems available for oil and gas 
leases.’’; 
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(2) by adding at the end of subsection (b) the 
following: 
‘‘The Secretary may issue more than one lease for a given 
tract if each lease applies to a separate and distinct range 
of vertical depths, horizontal surface area, or a combina-
tion of the two. The Secretary may issue regulations that 
the Secretary determines are necessary to manage such 
leases consistent with the purposes of this Act.’’; 
(3) by amending subsection (p)(2)(B) to read 
as follows: 
‘‘(B) The Secretary shall provide for the pay-
ment to coastal states, and their local coastal gov-
ernments, of 25 percent of Federal receipts from 
projects authorized under this section located par-
tially or completely within the area extending sea-
ward of State submerged lands out to 4 marine 
leagues from the coastline, and the payment to 
coastal states of 25 percent of the receipts from 
projects completely located in the area more than 4 
marine leagues from the coastline. Payments shall 
be based on a formula established by the Secretary 
by rulemaking no later than 180 days after the date 
of the enactment of the Deep Ocean Energy Re-
sources Act of 2008 that provides for equitable dis-
tribution, based on proximity to the project, among 
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coastal states that have coastline that is located 
within 200 miles of the geographic center of the 
project.’’; 
(4) by adding at the end the following: 
‘‘(q) NATURAL GAS LEASES.— 
‘‘(1) RIGHT
TO
PRODUCE
NATURAL
GAS.—A 
lessee of a natural gas lease shall have the right to 
produce the natural gas from a field on a natural 
gas leased tract if the Secretary estimates that the 
discovered field has at least 40 percent of the eco-
nomically recoverable Btu content of the field con-
tained within natural gas and such natural gas is ec-
onomical to produce. 
‘‘(2) CRUDE OIL.—A lessee of a natural gas 
lease may not produce crude oil from the lease. 
‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec-
retary shall make estimates of the natural gas Btu 
content of discovered fields on a natural gas lease 
only after the completion of at least one exploration 
well, the data from which has been tied to the re-
sults of a three-dimensional seismic survey of the 
field. The Secretary may not require the lessee to 
further delineate any discovered field prior to mak-
ing such estimates. 
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‘‘(4) DEFINITION OF NATURAL GAS.—For pur-
poses of a natural gas lease, natural gas means nat-
ural gas and all substances produced in association 
with gas, including, but not limited to, hydrocarbon 
liquids (other than crude oil) that are obtained by 
the condensation of hydrocarbon vapors and sepa-
rate out in liquid form from the produced gas 
stream. 
‘‘(r) REMOVAL OF RESTRICTIONS ON JOINT BIDDING 
IN
CERTAIN
AREAS
OF
THE
OUTER
CONTINENTAL 
SHELF.—Restrictions on joint bidders shall no longer 
apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions 
determined to be ‘frontier tracts’ or otherwise ‘high cost 
tracts’ under final regulations that shall be published by 
the Secretary by not later than 365 days after the date 
of the enactment of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(s) ROYALTY SUSPENSION PROVISIONS.—The Sec-
retary shall agree to a request by any lessee to amend 
any lease issued for Central and Western Gulf of Mexico 
tracts during the period of January 1, 1998, through De-
cember 31, 1999, to incorporate price thresholds applica-
ble to royalty suspension provisions, or amend existing 
price thresholds, in the amount of $40.50 per barrel (2006 
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dollars) for oil and for natural gas of $6.75 per million 
Btu (2006 dollars). Any amended lease shall impose the 
new or revised price thresholds effective October 1, 2008. 
Existing lease provisions shall prevail through September 
30, 2008. After the date of the enactment of the Deep 
Ocean Energy Resources Act of 2008, price thresholds 
shall apply to any royalty suspension volumes granted by 
the Secretary. Unless otherwise set by Secretary by regu-
lation or for a particular lease sale, the price thresholds 
shall be $40.50 for oil (2006 dollars) and $6.75 for nat-
ural gas (2006 dollars). 
‘‘(t) CONSERVATION OF RESOURCES FEES.— 
‘‘(1) Not later than one year after the date of 
the enactment of the Deep Ocean Energy Resources 
Act of 2008, the Secretary by regulation shall estab-
lish a conservation of resources fee for producing 
leases that will apply to new and existing leases 
which shall be set at $9 per barrel for oil and $1.25 
per million Btu for gas. This fee shall only apply to 
leases in production located in more than 200 me-
ters of water for which royalties are not being paid 
when prices exceed $40.50 per barrel for oil and 
$6.75 per million Btu for natural gas in 2006, dol-
lars. This fee shall apply to production from and 
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after October 1, 2008, and shall be treated as offset-
ting receipts. 
‘‘(2) Not later than one year after the date of 
the enactment of the Deep Ocean Energy Resources 
Act of 2008, the Secretary by regulation shall estab-
lish a conservation of resources fee for nonproducing 
leases that will apply to new and existing leases 
which shall be set at $3.75 per acre per year. This 
fee shall apply from and after October 1, 2008, and 
shall be treated as offsetting receipts.’’; 
(5) by striking subsection (a)(3)(A) and redes-
ignating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
(6) in subsection (a)(3)(A) (as so redesignated) 
by striking ‘‘In the Western’’ and all that follows 
through ‘‘the Secretary’’ the first place it appears 
and inserting ‘‘The Secretary’’; and 
(7) effective October 1, 2008, in subsection 
(g)— 
(A) by striking all after ‘‘(g)’’, except para-
graph (3); 
(B) by striking the last sentence of para-
graph (3); and 
(C) by striking ‘‘(3)’’. 
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