(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The document of the Department of 
the Interior entitled ‘‘Final Legislative Environ-
mental Impact Statement’’ and dated April 1987 re-
lating to the Coastal Plain prepared pursuant to sec-
tion 1002 of the Alaska National Interest Lands 
Conservation Act (16 U.S.C. 3142) and section 
102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy 
the requirements under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) that 
apply with respect to prelease activities under this 
subtitle, including actions authorized to be taken by 
the Secretary to develop and promulgate regulations 
for the establishment of a leasing program author-
ized by this subtitle before the conduct of the first 
lease sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.— 
(A) IN GENERAL.—Prior to conducting the 
first lease sale under this subtitle, the Secretary 
shall prepare an environmental impact state-
ment under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) with re-
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spect to the actions authorized by this subtitle 
not covered by paragraph (2). 
(B) NONLEASING ALTERNATIVES NOT RE-
QUIRED.—Notwithstanding any other provision 
of law, in preparing the environmental impact 
statement under subparagraph (A), the Sec-
retary— 
(i) shall— 
(I) only identify a preferred ac-
tion for leasing and a single leasing 
alternative; and 
(II) analyze the environmental ef-
fects and potential mitigation meas-
ures for those 2 alternatives; and 
(ii) is not required— 
(I) to identify nonleasing alter-
native courses of action; or 
(II) to analyze the environmental 
effects 
of 
nonleasing 
alternative 
courses of action. 
(C) DEADLINE.—The identification under 
subparagraph (B)(i)(I) for the first lease sale 
conducted under this subtitle shall be completed 
not later than 18 months after the date of en-
actment of this Act. 
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(D) PUBLIC
COMMENT.—The Secretary 
shall only consider public comments that— 
(i) specifically address the preferred 
action of the Secretary; and 
(ii) are filed not later than 20 days 
after the date on which the environmental 
analysis is published. 
(E) COMPLIANCE.—Notwithstanding any 
other provision of law, compliance with this 
paragraph is deemed to satisfy all requirements 
for the analysis and consideration of the envi-
ronmental effects of proposed leasing under this 
subtitle. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle expands or limits State or 
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 of the State 
of Alaska, may designate not more than 45,000 
acres of the Coastal Plain as a ‘‘Special Area’’ if the 
Secretary determines that the area is of such unique 
character and interest so as to require special man-
agement and regulatory protection. 
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(2) SADLEROCHIT
SPRING
AREA.—The Sec-
retary shall designate the Sadlerochit Spring area, 
consisting of approximately 4,000 acres, as a Special 
Area. 
(3) MANAGEMENT.—Each Special Area shall be 
managed To protect and preserve the unique and di-
verse character of the area, including the fish, wild-
life, and subsistence resource values of the area. 
(4) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.— 
(A) IN GENERAL.—The Secretary may ex-
clude any Special Area from leasing. 
(B) NO SURFACE OCCUPANCY.—If the Sec-
retary leases a Special Area, or any part of a 
Special Area, for oil and gas exploration, devel-
opment, production, or related activities, there 
shall be no surface occupancy of the land com-
prising the Special Area. 
(5) 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 tracts located outside the 
Special Area. 
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(f) LIMITATION ON CLOSED AREAS.—The authority 
of the Secretary to close land on the Coastal Plain to oil 
and gas leasing, exploration, development, or production 
shall be limited to the authority provided under this sub-
title. 
(g) REGULATIONS.— 
(1) IN GENERAL.—Not later than 15 months 
after the date of enactment of this Act, the Sec-
retary shall promulgate regulations necessary to 
carry out this subtitle, including regulations relating 
to protection of fish and wildlife, the habitat of fish 
and wildlife, subsistence resources, and environment 
of the Coastal Plain. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall, through a rulemaking conducted in ac-
cordance with section 553 of title 5, United States 
Code, periodically review and, if appropriate, revise 
the regulations promulgated under paragraph (1) to 
reflect a preponderance of the best available sci-
entific evidence that has been peer reviewed and ob-
tained by following appropriate, documented sci-
entific procedures, the results of which can be re-
peated using those same procedures. 
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SEC. 5004. LEASE SALES. 
(a) IN GENERAL.—In accordance with the require-
ments of this subtitle, the Secretary may lease land under 
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 and not later than 180 days after the date of enact-
ment of this Act, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area of the Coastal Plain for inclusion 
in, or exclusion from, a lease sale; 
(2) the holding of lease sales after the 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. 
(c) LEASE SALE BIDS.—Lease sales under this sub-
title may be conducted through an Internet leasing pro-
gram, if the Secretary determines that the Internet leasing 
program will result in savings to the taxpayer, an increase 
in the number of bidders participating, and higher returns 
than oral bidding or a sealed bidding system. 
(d) SALE ACREAGES
AND SCHEDULE.—The Sec-
retary shall— 
(1) offer for lease under this subtitle— 
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(A) those tracts the Secretary considers to 
have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nomi-
nations received under subsection (b)(1); and 
(B)(i) not fewer than 50,000 acres by not 
later than 22 months after the date of the en-
actment of this Act; and 
(ii) not fewer than an additional 50,000 
acres at 6-, 12-, and 18-month intervals fol-
lowing the initial offering under subclause (i); 
(2) conduct 4 additional lease sales under the 
same terms and schedule as the last lease sale under 
paragraph (1)(B)(ii) not later than 2 years after the 
date of that sale, if sufficient interest in leasing ex-
ists to warrant, in the judgment of the Secretary, 
the conduct of the sales; and 
(3) evaluate the bids in each lease sale under 
this subsection and issue leases resulting from the 
sales not later than 90 days after the date on which 
the sale is completed. 
SEC. 5005. 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 under section 5004 any land to be leased on the 
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Coastal Plain upon payment by the bidder of any 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 
the Secretary after the Secretary consults with, and gives 
due consideration to the views of, the Attorney General. 
SEC. 5006. LEASE TERMS AND CONDITIONS. 
An oil or gas lease issued under this subtitle shall— 
(1) provide for the payment of a royalty of not 
less than 12.5 percent in amount or value of the 
production removed or sold under the lease, as de-
termined by the Secretary under the regulations ap-
plicable to other Federal oil and gas leases; 
(2) provide that the Secretary may close, on a 
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect 
caribou calving areas and other species of fish and 
wildlife based on a preponderance of the best avail-
able scientific evidence that has been peer reviewed 
and obtained by following appropriate, documented 
scientific procedures, the results of which can be re-
peated using those same procedures; 
(3) require that the lessee of land on the Coast-
al Plain shall be fully responsible and liable for the 
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reclamation of land on the Coastal Plain and any 
other Federal land that is adversely affected in con-
nection with exploration, development, production, or 
transportation activities conducted under the lease 
and on the Coastal Plain by the lessee or by any of 
the subcontractors or agents of the lessee; 
(4) 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; 
(5) provide that the standard of reclamation for 
land required to be reclaimed under this subtitle 
shall be, as nearly as practicable, a condition capable 
of supporting the uses which the land was capable 
of supporting prior to any exploration, development, 
or production activities, or upon application by the 
lessee, to a higher or better use as certified by the 
Secretary; 
(6) contain terms and conditions relating to 
protection of fish and wildlife, the habitat of fish 
and wildlife, subsistence resources, and the environ-
ment as required under section 5003(a)(2); 
(7) provide that the lessee, agents of the lessee, 
and contractors of the lessee use best efforts to pro-
vide a fair share, as determined by the level of obli-
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gation previously agreed to in the 1974 agreement 
implementing section 29 of the Federal Agreement 
and Grant of Right of Way for the Operation of the 
Trans-Alaska Pipeline, of employment and con-
tracting for Alaska Natives and Alaska Native cor-
porations from throughout the State; and 
(8) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with this subtitle and the regulations issued pursu-
ant to this subtitle. 
SEC. 5007. 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 5003, administer this subtitle through regulations, 
lease terms, conditions, restrictions, prohibitions, stipula-
tions, and other provisions that— 
(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain 
shall not result in any significant adverse effect on 
fish and wildlife, the habitat of fish and wildlife, or 
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-
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108 
Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.). 
(b) RULES.—The use of the proposed rule described 
in subsection (a)(1), or any substantially similar proposed 
rule or guidance, as the basis for any rulemaking or any 
decision regarding the scope or enforcement of the Federal 
Water Pollution Control Act (33 U.S.C. 1251 et seq.) shall 
be grounds for vacation of the final rule, decision, or en-
forcement action. 
SEC. 7004. JOBS ANALYSIS FOR ALL EPA REGULATIONS. 
(a) IN GENERAL.—Before proposing or finalizing any 
regulation, rule, or policy, the Administrator of the Envi-
ronmental Protection Agency shall provide an analysis of 
the regulation, rule, or policy and describe the direct and 
indirect net and gross impact of the regulation, rule, or 
policy on employment in the United States. 
(b) LIMITATION.—No regulation, rule, or policy de-
scribed in subsection (a) shall take effect if the regulation, 
rule, or policy has a negative impact on employment in 
the United States unless the regulation, rule, or policy is 
approved by Congress and signed by the President. 
TITLE VIII—DEBT FREEDOM 
FUND 
SEC. 8001. FINDINGS. 
Congress finds that— 
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