(1) ENHANCEMENT
FUND.—There is estab-
lished in the Treasury a separate account to be 
known as the ‘‘Federal Energy Natural Resources 
Enhancement Fund’’. 
(2) FUNDING.—The Secretary of the Treasury 
shall deposit in the Enhancement Fund— 
(A) such sums as are provided by sections 
9(b)(5)(A)(ii), 9(b)(5)(B)(ii), 9(c)(4)(A)(ii), and 
9(c)(4)(B)(ii) of the Outer Continental Shelf 
Lands Act, as amended by this Act; 
(B)(i) during the period of October 1, 
2006, through September 30, 2015, 0.5 percent 
of all sums paid into the Treasury under sec-
tion 35 of the Mineral Leasing Act (30 U.S.C. 
191), and 
(ii) beginning October 1, 2015, and there-
after, 2.5 percent of all sums paid into the 
Treasury under section 35 of the Mineral Leas-
ing Act (30 U.S.C. 191); and 
(C)(i) during the period of October 1, 
2006, through September 30, 2015, 0.5 percent 
of all sums paid into the Treasury from receipts 
derived from bonus bids and royalties from 
other mineral leasing on public lands, and
(ii) beginning October 1, 2015, and there-
after, 2.5 percent of all sums paid into the 
Treasury from receipts derived from bonus bids 
and royalties from other mineral leasing on 
public lands. 
(3) INVESTMENTS.—The Secretary of the 
Treasury shall invest the amounts deposited under 
paragraph (2) and all accrued interest on the 
amounts deposited under paragraph (2) only in in-
terest bearing obligations of the United States or in 
obligations guaranteed as to both principal and in-
terest by the United States. 
(4) PAYMENT
TO
SECRETARY
OF
THE
INTE-
RIOR.— 
(A) IN GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
one-third of amounts deposited into the En-
hancement Fund, together with the interest 
thereon, shall be available, without fiscal year 
limitations, to the Secretary of the Interior for 
use for the purposes described in (b)(4). 
(B) WITHDRAWALS
AND
TRANSFER
OF 
FUNDS.—The Secretary of the Treasury shall 
withdraw such amounts from the Enhancement 
Fund as the Secretary of the Interior may re-
quest, subject to the limitation in (A), and 
transfer such amounts to the Secretary of the 
Interior to be used, at the discretion of the Sec-
retary of the Interior, by the Minerals Manage-
ment Service, the Bureau of Land Manage-
ment, and the United States Fish and Wildlife 
Service for use for the purposes described in 
subsection (b)(4). 
(5) PAYMENT TO STATES.— 
(A) IN GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
two-thirds of amounts deposited into the En-
hancement Fund, together with the interest 
thereon, shall be available, without fiscal year 
limitations, to the States for use for the pur-
poses described in (b)(4). 
(B) WITHDRAWALS
AND
TRANSFER
OF 
FUNDS.—Within the first 90 days of each fiscal 
year, the Secretary of the Treasury shall with-
draw amounts from the Enhancement Fund 
and transfer such amounts to the States based 
on the proportion of all receipts that were col-
lected the previous fiscal year from Federal 
leases within the boundaries of each State and 
each State’s outer Continental Shelf Adjacent
Zone as determined in accordance with section 
4(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1333(a)), as amended by this Act. 
(C) USE OF PAYMENTS BY STATE.—Each 
State shall use the payments made under sub-
paragraph (B) only for carrying out projects 
and programs for the purposes described in 
(b)(4). 
(D) ENCOURAGE USE OF PRIVATE FUNDS 
BY STATE.—Each State shall use the payments 
made under subparagraph (B) to leverage pri-
vate funds for carrying out projects for the pur-
poses described in (b)(4). 
(e) LIMITATION ON USE.—Amounts available under 
this section may not be used for the purchase of any inter-
est in land. 
(f) REPORTS TO CONGRESS.— 
(1) IN
GENERAL.—Beginning in fiscal year 
2008 and continuing for each fiscal year thereafter, 
the Secretary of the Interior and each State receiv-
ing funds from the Enhancement Fund shall submit 
a report to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Re-
sources of the House of Representatives.
(2) REQUIRED
INFORMATION.—Reports sub-
mitted to the Congress by the Secretary of the Inte-
rior and States under this subsection shall include 
the following information regarding expenditures 
during the previous fiscal year: 
(A) A summary of pertinent scientific re-
search and surveys conducted to identify im-
pacts on wildlife, fish, and other natural re-
sources from energy and mineral developments. 
(B) A summary of projects planned and 
completed to maintain, improve or enhance 
wildlife and fish populations and their habitats 
or other natural resources. 
(C) A list of additional actions that assist, 
or would assist, in managing, including miti-
gating either onsite or offsite, or both, the im-
pacts of energy and mineral development on 
wildlife, fish, and other natural resources. 
(D) A summary of private (non-Federal) 
funds used to plan, conduct, and complete the 
plans and programs identified in paragraphs 
(2)(A) and (2)(B).
SEC. 15. TERMINATION OF EFFECT OF LAWS PROHIBITING 
THE SPENDING OF APPROPRIATED FUNDS 
FOR CERTAIN PURPOSES. 
All provisions of existing Federal law prohibiting the 
spending of appropriated funds to conduct oil and natural 
gas leasing and preleasing activities for any area of the 
outer Continental Shelf shall have no force or effect. 
SEC. 16. OUTER CONTINENTAL SHELF INCOMPATIBLE USE. 
(a) IN GENERAL.—No Federal agency may permit 
construction or operation (or both) of any facility, or des-
ignate or maintain a restricted transportation corridor or 
operating area on the Federal outer Continental Shelf or 
in State waters, that will be incompatible with, as deter-
mined by the Secretary of the Interior, oil and gas or nat-
ural gas leasing and substantially full exploration and pro-
duction of tracts that are geologically prospective for oil 
or natural gas (or both). 
(b) EXCEPTIONS.—Subsection (a) shall not apply to 
any facility, transportation corridor, or operating area the 
construction, operation, designation, or maintenance of 
which is or will be— 
(1) located in an area of the outer Continental 
Shelf that is unavailable for oil and gas or natural 
gas leasing by operation of law;
(2) used for a military readiness activity (as de-
fined in section 315(f) of Public Law 107–314; 16 
U.S.C. 703 note); or 
(3) required in the national interest, as deter-
mined by the President. 
SEC. 17. REPURCHASE OF CERTAIN LEASES. 
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—The Secretary of the Interior shall repur-
chase and cancel any Federal oil and gas, geothermal, 
coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, if the Secretary finds that such lease 
qualifies for repurchase and cancellation under the regula-
tions authorized by this section. 
(b) REGULATIONS.—Not later than 365 days after 
the date of the enactment of this Act, the Secretary shall 
publish a final regulation stating the conditions under 
which a lease referred to in subsection (a) would qualify 
for repurchase and cancellation, and the process to be fol-
lowed regarding repurchase and cancellation. Such regula-
tion shall include, but not be limited to, the following: 
(1) The Secretary shall repurchase and cancel 
a lease after written request by the lessee upon a 
finding by the Secretary that— 
(A) a request by the lessee for a required 
permit or other approval complied with applica-
ble law, except the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1451 et seq.), and 
terms of the lease and such permit or other ap-
proval was denied; 
(B) a Federal agency failed to act on a re-
quest by the lessee for a required permit, other 
approval, or administrative appeal within a reg-
ulatory or statutory time-frame associated with 
the requested action, whether advisory or man-
datory, or if none, within 180 days; or 
(C) a Federal agency attached a condition 
of approval, without agreement by the lessee, to 
a required permit or other approval if such con-
dition of approval was not mandated by Federal 
statute or regulation in effect on the date of 
lease issuance, or was not specifically allowed 
under the terms of the lease. 
(2) A lessee shall not be required to exhaust ad-
ministrative remedies regarding a permit request, 
administrative appeal, or other required request for 
approval for the purposes of this section. 
(3) The Secretary shall make a final agency de-
cision on a request by a lessee under this section 
within 180 days of request.
(4) Compensation to a lessee to repurchase and 
cancel a lease under this section shall be the amount 
that a lessee would receive in a restitution case for 
a material breach of contract. 
(5) Compensation shall be in the form of a 
check or electronic transfer from the Department of 
the Treasury from funds deposited into miscella-
neous receipts under the authority of the same Act 
that authorized the issuance of the lease being re-
purchased. 
(6) Failure of the Secretary to make a final 
agency decision on a request by a lessee under this 
section within 180 days of request shall result in a 
10 percent increase in the compensation due to the 
lessee if the lease is ultimately repurchased. 
(c) NO PREJUDICE.—This section shall not be inter-
preted to prejudice any other rights that the lessee would 
have in the absence of this section. 
SEC. 18. OFFSITE ENVIRONMENTAL MITIGATION. 
Notwithstanding any other provision of law, any per-
son conducting activities under the Mineral Leasing Act 
(30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 
U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac-
quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 
U.S.C. 552 et seq.), the General Mining Act of 1872 (30
U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 
601 et seq.), or the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.), may in satisfying any mitigation 
requirements associated with such activities propose miti-
gation measures on a site away from the area impacted 
and the Secretary of the Interior shall accept these pro-
posed measures if the Secretary finds that they generally 
achieve the purposes for which mitigation measures apper-
tained. 
SEC. 19. AMENDMENTS TO THE MINERAL LEASING ACT. 
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 
226(g)) is amended to read as follows: 
‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI-
TIES.— 
‘‘(1) REGULATION
OF
SURFACE-DISTURBING 
ACTIVITIES.—The Secretary of the Interior, or for 
National Forest lands, the Secretary of Agriculture, 
shall regulate all surface-disturbing activities con-
ducted pursuant to any lease issued under this Act, 
and shall determine reclamation and other actions as 
required in the interest of conservation of surface re-
sources. 
‘‘(2) SUBMISSION OF EXPLORATION PLAN; COM-
PLETION REVIEW; COMPLIANCE REVIEW.—
‘‘(A) Prior to beginning oil and gas explo-
ration activities, a lessee shall submit an explo-
ration plan to the Secretary of the Interior for 
review. 
‘‘(B) The Secretary shall review the plan 
for completeness within 10 days of submission. 
‘‘(C) In the event the exploration plan is 
determined to be incomplete, the Secretary shall 
notify the lessee in writing and specify the 
items or information needed to complete the ex-
ploration plan. 
‘‘(D) The Secretary shall have 10 days to 
review any modified exploration plan submitted 
by the lessee. 
‘‘(E) To be deemed complete, an explo-
ration plan shall include, in the degree of detail 
to be determined by the Secretary by rule or 
regulation— 
‘‘(i) a drilling plan containing a de-
scription of the drilling program; 
‘‘(ii) the surface and projected com-
pletion zone location; 
‘‘(iii) pertinent geologic data;
‘‘(iv) expected hazards, and proposed 
mitigation measures to address such haz-
ards; 
‘‘(v) a schedule of anticipated explo-
ration activities to be undertaken; 
‘‘(vi) a description of equipment to be 
used for such activities; 
‘‘(vii) a certification from the lessee 
stating that the exploration plan complies 
with all lease, regulatory and statutory re-
quirements in effect on the date of the 
issuance of the lease; 
‘‘(viii) evidence that the lessee has se-
cured an adequate bond, surety, or other 
financial arrangement prior to commence-
ment of any surface disturbing activity; 
‘‘(ix) a plan that details the complete 
and timely reclamation of the lease tract; 
and 
‘‘(x) such other relevant information 
as the Secretary may by regulation require. 
‘‘(F) Upon a determination that the explo-
ration plan is complete, the Secretary shall have 
30 days from the date the plan is deemed com-
plete to conduct a review of the plan.
‘‘(G) If the Secretary finds the exploration 
plan is not consistent with all statutory and 
regulatory requirements in effect on the date of 
issuance of the lease, the Secretary shall notify 
the lessee with a detailed explanation of such 
modifications of the exploration plan as are nec-
essary to achieve compliance. 
‘‘(H) The lessee shall not take any action 
under the exploration plan within a 30 day re-
view period, or thereafter until the plan has 
been modified to achieve compliance as so noti-
fied. 
‘‘(I) After review by the Secretary provided 
by this subsection, a lessee may operate pursu-
ant to the plan without further review or ap-
proval by the Secretary. 
‘‘(3) PLAN
REVISIONS; CONDUCT
OF
EXPLO-
RATION ACTIVITIES.— 
‘‘(A) If a significant revision of an explo-
ration plan under this subsection is submitted 
to the Secretary, the process to be used for the 
review of such revision shall be the same as set 
forth in paragraph (1) of this subsection. 
‘‘(B) All exploration activities pursuant to 
any lease shall be conducted in accordance with
an exploration plan that has been submitted to 
and reviewed by the Secretary or a revision of 
such plan. 
‘‘(4) SUBMISSION OF DEVELOPMENT AND PRO-
DUCTION
PLAN; COMPLETENESS
REVIEW; COMPLI-
ANCE REVIEW.— 
‘‘(A) Prior to beginning oil and gas devel-
opment and production activities, a lessee shall 
submit a development and exploration plan to 
the Secretary of the Interior. Upon submission, 
such plans shall be subject to a review for com-
pleteness. 
‘‘(B) The Secretary shall review the plan 
for completeness within 30 days of submission. 
‘‘(C) In the event a development and pro-
duction plan is determined to be incomplete, the 
Secretary shall notify the lessee in writing and 
specify the items or information needed to com-
plete the plan. 
‘‘(D) The Secretary shall have 30 days to 
review for completeness any modified develop-
ment and production plan submitted by the les-
see. 
‘‘(E) To be deemed complete, a develop-
ment and production plan shall include, in the
degree of detail to be determined by the Sec-
retary by rule or regulation— 
‘‘(i) a drilling plan containing a de-
scription of the drilling program; 
‘‘(ii) the surface and projected com-
pletion zone location; 
‘‘(iii) pertinent geologic data; 
‘‘(iv) expected hazards, and proposed 
mitigation measures to address such haz-
ards; 
‘‘(v) a statement describing all facili-
ties and operations proposed by the lessee 
and known by the lessee (whether or not 
owned or operated by such lessee) that 
shall be constructed or utilized in the de-
velopment and production of oil or gas 
from the leases areas, including the loca-
tion and site of such facilities and oper-
ations, the land, labor, material, and en-
ergy requirements associated with such fa-
cilities and operations; 
‘‘(vi) the general work to be per-
formed; 
‘‘(vii) the environmental safeguards to 
be implemented in connection with the de-
velopment and production and how such 
safeguards are to be implemented; 
‘‘(viii) all safety standards to be met 
and how such standards are to be met; 
‘‘(ix) an expected rate of development 
and production and a time schedule for 
performance; 
‘‘(x) a certification from the lessee 
stating that the development and produc-
tion plan complies with all lease, regu-
latory, and statutory requirements in effect 
on the date of issuance of the lease; 
‘‘(xi) evidence that the lessee has se-
cured an adequate bond, surety, or other 
financial arrangement prior to commence-
ment of any surface disturbing activity; 
‘‘(xii) a plan that details the complete 
and timely reclamation of the lease tract; 
and 
‘‘(xiii) such other relevant information 
as the Secretary may by regulation require. 
‘‘(F) Upon a determination that the devel-
opment and production plan is complete, the 
Secretary shall have 120 days from the date the
plan is deemed complete to conduct a review of 
the plan. 
‘‘(G) If the Secretary finds the develop-
ment and production plan is not consistent with 
all statutory and regulatory requirements in ef-
fect on the date of issuance of the lease, the 
Secretary shall notify the lessee with a detailed 
explanation of such modifications of the devel-
opment and production plan as are necessary to 
achieve compliance. 
‘‘(H) The lessee shall not take any action 
under the development and production plan 
within a 120 day review period, or thereafter 
until the plan has been modified to achieve 
compliance as so notified. 
‘‘(5) PLAN REVISIONS; CONDUCT OF DEVELOP-
MENT AND PRODUCTION ACTIVITIES.— 
‘‘(A) If a significant revision of a develop-
ment and production plan under this subsection 
is submitted to the Secretary, the process to be 
used for the review of such revision shall be the 
same as set forth in paragraph (4) of this sub-
section. 
‘‘(B) All development and production ac-
tivities pursuant to any lease shall be conducted
in accordance with an exploration plan that has 
been submitted to and reviewed by the Sec-
retary or a revision of such plan. 
‘‘(6) CANCELLATION OF LEASE ON FAILURE TO 
SUBMIT PLAN OR COMPLY WITH APPROVED PLAN.— 
Whenever the owner of any lease fails to submit a 
plan in accordance with regulations issued under 
this section, or fails to comply with a plan, the lease 
may be canceled in accordance with section 31. Ter-
mination of a lease because of failure to comply with 
a plan, including required modifications or revisions, 
shall not entitle a lessee to any compensation.’’. 
SEC. 20. MINERALS MANAGEMENT SERVICE. 
The bureau known as the ‘‘Minerals Management 
Service’’ in the Department of the Interior shall be known 
as the ‘‘National Ocean Resources and Royalty Service’’. 
SEC. 21. AUTHORITY TO USE DECOMMISSIONED OFFSHORE 
OIL AND GAS PLATFORMS AND OTHER FA-
CILITIES 
FOR 
MARICULTURE, 
ARTIFICIAL 
REEF, SCIENTIFIC RESEARCH, OR OTHER 
USES. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Rigs to Reefs Act of 2005’’.