108 
commercial application, whose objective shall be to reduce 
emissions from fossil fuel use by developing technologies, 
including precombustion technologies, by 2015 with the 
capability of— 
(1) dramatically increasing electricity gener-
ating efficiencies of coal and natural gas; 
(2) improving combined heat and power ther-
mal efficiencies; 
(3) improving fuels utilization efficiency of pro-
duction of liquid transportation fuels from coal; 
(4) achieving near-zero emissions of mercury 
and of emissions that form fine particles, smog, and 
acid rain; 
(5) reducing carbon dioxide emissions by at 
least 40 percent through efficiency improvements 
and by 100 percent with sequestration; and 
(6) improved reliability, efficiency, reductions of 
air pollutant emissions, and reductions in solid waste 
disposal requirements. 
(b) 
COAL-BASED
PROJECTS.—The 
coal-based 
projects authorized under this section shall be consistent 
with the objective stated in subsection (a). The program 
shall emphasize carbon capture and sequestration tech-
nologies and gasification technologies, including gasifi-
cation combined cycle, gasification fuel cells, gasification
109 
coproduction, hybrid gasification/combustion, or other 
technologies with the potential to address the capabilities 
described in paragraphs (4) and (5) of subsection (a). 
SEC. 603. OIL AND GAS RESEARCH AND DEVELOPMENT. 
The Secretary shall conduct a program of oil and gas 
research, development, demonstration, and commercial ap-
plication, whose objective shall be to advance the science 
and technology available to domestic petroleum producers, 
particularly independent operators, to minimize the eco-
nomic dislocation caused by the decline of domestic sup-
plies of oil and natural gas resources by focusing research 
on— 
(1) assisting small domestic producers of oil 
and gas to develop new and improved technologies to 
discover and extract additional supplies; 
(2) developing technologies to extract methane 
hydrates in an environmentally sound manner; 
(3) improving the ability of the domestic indus-
try to extract hydrocarbons from known reservoirs 
and classes of reservoirs; and 
(4) reducing the cost, and improving the effi-
ciency and environmental performance, of oil and 
gas exploration and extraction activities, focusing es-
pecially on unconventional sources such as tar sands, 
heavy oil, and shale oil.
110 
SEC. 604. TRANSPORTATION FUELS. 
The Secretary shall conduct a program of transpor-
tation fuels research, development, demonstration, and 
commercial application, whose objective shall be to in-
crease the price elasticity of oil supply and demand by fo-
cusing research on— 
(1) reducing the cost of producing transpor-
tation fuels from coal and natural gas; and 
(2) indirect liquefaction of coal and biomass. 
SEC. 605. FUEL CELLS. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application of fuel cells for low-cost, high-effi-
ciency, fuel-flexible, modular power systems. 
(b) DEMONSTRATION.—The program under this sec-
tion shall include demonstration of fuel cell proton ex-
change membrane technology for commercial, residential, 
and transportation applications, and distributed genera-
tion systems, utilizing improved manufacturing production 
and processes. 
SEC. 606. AUTHORIZATION OF APPROPRIATIONS. 
The following sums are authorized to be appropriated 
to the Secretary for the purposes of carrying out this sub-
title: 
(1) For fiscal year 2006, $583,000,000. 
(2) For fiscal year 2007, $611,000,000.
111 
(3) For fiscal year 2008, $626,000,000. 
(4) For fiscal year 2009, $641,000,000. 
(5) For fiscal year 2010, $657,000,000. 
Subtitle B—Ultra-Deepwater and 
Unconventional 
Natural 
Gas 
and Other Petroleum Resources 
SEC. 611. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary shall carry out a 
program under this subtitle of research, development, 
demonstration, and commercial application of technologies 
for ultra-deepwater and unconventional natural gas and 
other petroleum resource exploration and production, in-
cluding addressing the technology challenges for small 
producers, safe operations, and environmental mitigation 
(including reduction of greenhouse gas emissions and se-
questration of carbon). 
(b) METHANE HYDRATE REPORT.—Within 6 months 
of enactment, the Secretary shall report to Congress on 
whether the activities described in the Methane Hydrates 
Act of 2000 (114 Stat. 234 or 30 U.S.C. 1902 note) 
should be carried out under this subtitle. 
(c) PROGRAM ELEMENTS.—The program under this 
subtitle shall address the following areas, including im-
proving safety and minimizing environmental impacts of 
activities within each area:
112 
(1) Ultra-deepwater technology, including drill-
ing to formations in the Outer Continental Shelf to 
depths greater than 15,000 feet. 
(2) Ultra-deepwater architecture. 
(3) Unconventional natural gas and other petro-
leum resource exploration and production tech-
nology, including the technology challenges of small 
producers. 
(d) LIMITATION ON LOCATION OF FIELD ACTIVI-
TIES.—Field activities under the program under this sub-
title shall be carried out only— 
(1) in— 
(A) areas in the territorial waters of the 
United States not under any Outer Continental 
Shelf moratorium as of September 30, 2002; 
(B) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(C) areas onshore in the United States on 
State or private land, subject to applicable law; 
and
113 
(2) with the approval of the appropriate Fed-
eral or State land management agency or private 
land owner. 
(e) RESEARCH AT NATIONAL ENERGY TECHNOLOGY 
LABORATORY.—The Secretary, through the National En-
ergy Technology Laboratory, shall carry out research com-
plementary to research under subsection (b). 
(f) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this subtitle, the Secretary shall 
consult regularly with the Secretary of the Interior. 
SEC. 612. ULTRA-DEEPWATER PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out the 
activities under section 611(a), to maximize the use of the 
ultra-deepwater natural gas and other petroleum resources 
of the United States by increasing the supply of such re-
sources, through reducing the cost and increasing the effi-
ciency of exploration for and production of such resources, 
while improving safety and minimizing environmental im-
pacts. 
(b) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all as-
pects of the program under this section. 
(c) ROLE OF THE PROGRAM CONSORTIUM.— 
(1) IN GENERAL.—The Secretary may contract 
with a consortium to—
114 
(A) manage awards pursuant to subsection 
(f)(4); 
(B) make recommendations to the Sec-
retary for project solicitations; 
(C) disburse funds awarded under sub-
section (f) as directed by the Secretary in ac-
cordance with the annual plan under subsection 
(e); and 
(D) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not as-
sign any activities to the program consortium except 
as specifically authorized under this section. 
(3) CONFLICT OF INTEREST.— 
(A) PROCEDURES.—The Secretary shall 
establish procedures— 
(i) to ensure that each board member, 
officer, or employee of the program consor-
tium who is in a decision-making capacity 
under subsection (f)(3) or (4) shall disclose 
to the Secretary any financial interests in, 
or financial relationships with, applicants 
for or recipients of awards under this sec-
tion, including those of his or her spouse 
or minor child, unless such relationships or
115 
interests would be considered to be remote 
or inconsequential; and 
(ii) to require any board member, offi-
cer, or employee with a financial relation-
ship or interest disclosed under clause (i) 
to recuse himself or herself from any re-
view under subsection (f)(3) or oversight 
under subsection (f)(4) with respect to 
such applicant or recipient. 
(B) FAILURE TO COMPLY.—The Secretary 
may disqualify an application or revoke an 
award under this section if a board member, of-
ficer, or employee has failed to comply with pro-
cedures required under subparagraph (A)(ii). 
(d) SELECTION OF THE PROGRAM CONSORTIUM.— 
(1) IN GENERAL.—The Secretary shall select 
the program consortium through an open, competi-
tive process. 
(2) MEMBERS.—The program consortium may 
include corporations, trade associations, institutions 
of higher education, National Laboratories, or other 
research institutions. After submitting a proposal 
under paragraph (4), the program consortium may 
not add members without the consent of the Sec-
retary.
116 
(3) TAX
STATUS.—The program consortium 
shall be an entity that is exempt from tax under sec-
tion 501(c)(3) of the Internal Revenue Code of 
1986. 
(4) SCHEDULE.—Not later than 180 days after 
the date of enactment of this Act, the Secretary 
shall solicit proposals from eligible consortia to per-
form the duties in subsection (c)(1), which shall be 
submitted not later than 360 days after the date of 
enactment of this Act. The Secretary shall select the 
program consortium not later than 18 months after 
such date of enactment. 
(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall— 
(A) list all members of the consortium; 
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected 
as the program consortium, an applicant must be an 
entity whose members collectively have demonstrated
117 
capabilities in planning and managing research, de-
velopment, demonstration, and commercial applica-
tion programs in natural gas or other petroleum ex-
ploration or production. 
(7) CRITERION.—The Secretary shall consider 
the amount of the fee an applicant proposes to re-
ceive under subsection (g) in selecting a consortium 
under this section. 
(e) ANNUAL PLAN.— 
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan 
prepared by the Secretary in accordance with para-
graph (2). 
(2) DEVELOPMENT.— 
(A) 
SOLICITATION
OF
RECOMMENDA-
TIONS.—Before drafting an annual plan under 
this subsection, the Secretary shall solicit spe-
cific written recommendations from the pro-
gram consortium for each element to be ad-
dressed in the plan, including those described in 
paragraph (4). The Secretary may request that 
the 
program 
consortium 
submit 
its 
rec-
ommendations in the form of a draft annual 
plan.
118 
(B) SUBMISSION
OF
RECOMMENDATIONS; 
OTHER COMMENT.—The Secretary shall submit 
the recommendations of the program consor-
tium under subparagraph (A) to the Ultra- 
Deepwater Advisory Committee established 
under section 615(a) for review, and such Advi-
sory Committee shall provide to the Secretary 
written comments by a date determined by the 
Secretary. The Secretary may also solicit com-
ments from any other experts. 
(C) CONSULTATION.—The Secretary shall 
consult regularly with the program consortium 
throughout the preparation of the annual plan. 
(3) PUBLICATION.—The Secretary shall trans-
mit to Congress and publish in the Federal Register 
the annual plan, along with any written comments 
received under paragraph (2)(A) and (B). 
(4) CONTENTS.—The annual plan shall describe 
the ongoing and prospective activities of the pro-
gram under this section and shall include— 
(A) a list of any solicitations for awards 
that the Secretary plans to issue to carry out 
research, development, demonstration, or com-
mercial application activities, including the top-
ics for such work, who would be eligible to
119 
apply, selection criteria, and the duration of 
awards; and 
(B) a description of the activities expected 
of the program consortium to carry out sub-
section (f)(4). 
(5) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the 
Secretary of the Interior, shall provide an annual re-
port to Congress with the President’s budget on the 
estimated cumulative increase in Federal royalty re-
ceipts (if any) resulting from the implementation of 
this subtitle. The initial report under this paragraph 
shall be submitted in the first President’s budget fol-
lowing the completion of the first annual plan re-
quired under this subsection. 
(f) AWARDS.— 
(1) IN GENERAL.—The Secretary shall make 
awards to carry out research, development, dem-
onstration, and commercial application activities 
under the program under this section. The program 
consortium shall not be eligible to receive such 
awards, but members of the program consortium 
may receive such awards. 
(2) PROPOSALS.—The Secretary shall solicit 
proposals for awards under this subsection in such
120 
manner and at such time as the Secretary may pre-
scribe, in consultation with the program consortium. 
(3) REVIEW.—The Secretary shall make awards 
under this subsection through a competitive process, 
which shall include a review by individuals selected 
by the Secretary. Such individuals shall include, for 
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board 
members, officers, or employees of the program con-
sortium or of a member of the program consortium. 
(4) OVERSIGHT.— 
(A) IN
GENERAL.—The program consor-
tium shall oversee the implementation of 
awards under this subsection, consistent with 
the annual plan under subsection (e), including 
disbursing funds and monitoring activities car-
ried out under such awards for compliance with 
the terms and conditions of the awards. 
(B) EFFECT.—Nothing in subparagraph 
(A) shall limit the authority or responsibility of 
the Secretary to oversee awards, or limit the 
authority of the Secretary to review or revoke 
awards. 
(C) PROVISION
OF
INFORMATION.—The 
Secretary shall provide to the program consor-
121 
tium the information necessary for the program 
consortium to carry out its responsibilities 
under this paragraph. 
(g) ADMINISTRATIVE COSTS.— 
(1) IN GENERAL.—To compensate the program 
consortium for carrying out its activities under this 
section, the Secretary shall provide to the program 
consortium funds sufficient to administer the pro-
gram. This compensation may include a manage-
ment fee consistent with Department of Energy con-
tracting practices and procedures. 
(2) ADVANCE.—The Secretary shall advance 
funds to the program consortium upon selection of 
the consortium, which shall be deducted from 
amounts to be provided under paragraph (1). 
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided to the program consortium, and 
funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the pur-
poses and requirements of this subtitle. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report.
122 
SEC. 613. UNCONVENTIONAL NATURAL GAS AND OTHER PE-
TROLEUM RESOURCES PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out ac-
tivities under section 611(b)(3), to maximize the use of 
the onshore unconventional natural gas and other petro-
leum resources of the United States, by increasing the 
supply of such resources, through reducing the cost and 
increasing the efficiency of exploration for and production 
of such resources, while improving safety and minimizing 
environmental impacts. 
(b) AWARDS.— 
(1) IN
GENERAL.—The Secretary shall carry 
out this section through awards to research con-
sortia made through an open, competitive process. 
As a condition of award of funds, qualified research 
consortia shall— 
(A) demonstrate capability and experience 
in unconventional onshore natural gas or other 
petroleum research and development; 
(B) provide a research plan that dem-
onstrates how additional natural gas or oil pro-
duction will be achieved; and 
(C) at the request of the Secretary, provide 
technical advice to the Secretary for the pur-
poses of developing the annual plan required 
under subsection (e).
123 
(2) PRODUCTION
POTENTIAL.—The Secretary 
shall seek to ensure that the number and types of 
awards made under this subsection have reasonable 
potential to lead to additional oil and natural gas 
production on Federal lands. 
(3) SCHEDULE.—To carry out this subsection, 
not later than 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals from 
research consortia, which shall be submitted not 
later than 360 days after the date of enactment of 
this Act. The Secretary shall select the first group 
of research consortia to receive awards under this 
subsection not later than 18 months after such date 
of enactment. 
(c) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided under awards made under this sec-
tion have been expended in a manner consistent with the 
purposes and requirements of this subtitle. The auditor 
shall transmit a report annually to the Secretary, who 
shall transmit the report to Congress, along with a plan 
to remedy any deficiencies cited in the report. 
(d) FOCUS AREAS FOR AWARDS.— 
(1) UNCONVENTIONAL
RESOURCES.—Awards 
from allocations under section 619(d)(2) shall focus
124 
on areas including advanced coalbed methane, deep 
drilling, natural gas production from tight sands, 
natural gas production from gas shales, stranded 
gas, innovative exploration and production tech-
niques, enhanced recovery techniques, and environ-
mental mitigation of unconventional natural gas and 
other petroleum resources exploration and produc-
tion. 
(2) SMALL PRODUCERS.—Awards from alloca-
tions under section 619(d)(3) shall be made to con-
sortia consisting of small producers or organized pri-
marily for the benefit of small producers, and shall 
focus on areas including complex geology involving 
rapid changes in the type and quality of the oil and 
gas reservoirs across the reservoir; low reservoir 
pressure; unconventional natural gas reservoirs in 
coalbeds, deep reservoirs, tight sands, or shales; and 
unconventional oil reservoirs in tar sands and oil 
shales. 
(e) ANNUAL PLAN.— 
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan 
prepared by the Secretary in accordance with para-
graph (2). 
(2) DEVELOPMENT.—
125 
(A) WRITTEN
RECOMMENDATIONS.—Be-
fore drafting an annual plan under this sub-
section, the Secretary shall solicit specific writ-
ten recommendations from the research con-
sortia receiving awards under subsection (b) 
and the Unconventional Resources Technology 
Advisory Committee for each element to be ad-
dressed in the plan, including those described in 
subparagraph (D). 
(B) CONSULTATION.—The Secretary shall 
consult regularly with the research consortia 
throughout the preparation of the annual plan. 
(C) PUBLICATION.—The Secretary shall 
transmit to Congress and publish in the Fed-
eral Register the annual plan, along with any 
written comments received under subparagraph 
(A). 
(D) CONTENTS.—The annual plan shall 
describe the ongoing and prospective activities 
under this section and shall include a list of any 
solicitations for awards that the Secretary plans 
to issue to carry out research, development, 
demonstration, or commercial application activi-
ties, including the topics for such work, who
126 
would be eligible to apply, selection criteria, and 
the duration of awards. 
(3) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the 
Secretary of the Interior, shall provide an annual re-
port to Congress with the President’s budget on the 
estimated cumulative increase in Federal royalty re-
ceipts (if any) resulting from the implementation of 
this subtitle. The initial report under this paragraph 
shall be submitted in the first President’s budget fol-
lowing the completion of the first annual plan re-
quired under this subsection. 
(f) ACTIVITIES BY THE UNITED STATES GEOLOGI-
CAL SURVEY.—The Secretary of the Interior, through the 
United States Geological Survey, shall, where appropriate, 
carry out programs of long-term research to complement 
the programs under this section. 
SEC. 614. ADDITIONAL REQUIREMENTS FOR AWARDS. 
(a) DEMONSTRATION PROJECTS.—An application for 
an award under this subtitle for a demonstration project 
shall describe with specificity the intended commercial use 
of the technology to be demonstrated. 
(b) FLEXIBILITY
IN LOCATING DEMONSTRATION 
PROJECTS.—Subject to the limitation in section 611(c), 
a demonstration project under this subtitle relating to an
127 
ultra-deepwater technology or an ultra-deepwater architec-
ture may be conducted in deepwater depths. 
(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 
award under this subtitle is made to a consortium (other 
than the program consortium), the consortium shall pro-
vide to the Secretary a signed contract agreed to by all 
members of the consortium describing the rights of each 
member to intellectual property used or developed under 
the award. 
(d) TECHNOLOGY TRANSFER.—2.5 percent of the 
amount of each award made under this subtitle shall be 
designated for technology transfer and outreach activities 
under this subtitle. 
(e) COST SHARING REDUCTION FOR INDEPENDENT 
PRODUCERS.—In applying the cost sharing requirements 
under [section ll] to an award under this subtitle the 
Secretary may reduce or eliminate the non-Federal re-
quirement if the Secretary determines that the reduction 
is necessary and appropriate considering the technological 
risks involved in the project. 
SEC. 615. ADVISORY COMMITTEES. 
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Sec-
128 
retary shall establish an advisory committee to be 
known as the Ultra-Deepwater Advisory Committee. 
(2) MEMBERSHIP.—The advisory committee 
under this subsection shall be composed of members 
appointed by the Secretary including— 
(A) individuals with extensive research ex-
perience or operational knowledge of offshore 
natural gas and other petroleum exploration 
and production; 
(B) individuals broadly representative of 
the affected interests in ultra-deepwater natural 
gas and other petroleum production, including 
interests in environmental protection and safe 
operations; 
(C) no individuals who are Federal employ-
ees; and 
(D) no individuals who are board members, 
officers, or employees of the program consor-
tium. 
(3) DUTIES.—The advisory committee under 
this subsection shall— 
(A) advise the Secretary on the develop-
ment and implementation of programs under 
this subtitle related to ultra-deepwater natural 
gas and other petroleum resources; and
129 
(B) carry out section 612(e)(2)(B). 
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve 
without compensation but shall receive travel ex-
penses in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United 
States Code. 
(b) UNCONVENTIONAL
RESOURCES
TECHNOLOGY 
ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Sec-
retary shall establish an advisory committee to be 
known as the Unconventional Resources Technology 
Advisory Committee. 
(2) MEMBERSHIP.—The advisory committee 
under this subsection shall be composed of members 
appointed by the Secretary including— 
(A) a majority of members who are em-
ployees or representatives of independent pro-
ducers of natural gas and other petroleum, in-
cluding small producers; 
(B) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource 
exploration and production;
130 
(C) individuals broadly representative of 
the affected interests in unconventional natural 
gas and other petroleum resource exploration 
and production, including interests in environ-
mental protection and safe operations; and 
(D) no individuals who are Federal em-
ployees. 
(3) DUTIES.—The advisory committee under 
this subsection shall advise the Secretary on the de-
velopment and implementation of activities under 
this subtitle related to unconventional natural gas 
and other petroleum resources. 
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve 
without compensation but shall receive travel ex-
penses in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United 
States Code. 
(c) PROHIBITION.—No advisory committee estab-
lished under this section shall make recommendations on 
funding awards to particular consortia or other entities, 
or for specific projects. 
SEC. 616. LIMITS ON PARTICIPATION. 
An entity shall be eligible to receive an award under 
this subtitle only if the Secretary finds—
131 
(1) that the entity’s participation in the pro-
gram under this subtitle would be in the economic 
interest of the United States; and 
(2) that either— 
(A) the entity is a United States-owned en-
tity organized under the laws of the United 
States; or 
(B) the entity is organized under the laws 
of the United States and has a parent entity or-
ganized under the laws of a country that af-
fords— 
(i) to United States-owned entities op-
portunities, comparable to those afforded 
to any other entity, to participate in any 
cooperative research venture similar to 
those authorized under this subtitle; 
(ii) to United States-owned entities 
local investment opportunities comparable 
to those afforded to any other entity; and 
(iii) adequate and effective protection 
for the intellectual property rights of 
United States-owned entities. 
SEC. 617. SUNSET. 
The authority provided by this subtitle shall termi-
nate on September 30, 2015.
132 
SEC. 618. DEFINITIONS. 
In this subtitle: 
(1) 
DEEPWATER.—The 
term 
‘‘deepwater’’ 
means a water depth that is greater than 200 but 
less than 1,500 meters. 
(2) INDEPENDENT
PRODUCER
OF
OIL
OR 
GAS.— 
(A) IN GENERAL.—The term ‘‘independent 
producer of oil or gas’’ means any person that 
produces oil or gas other than a person to 
whom subsection (c) of section 613A of the In-
ternal Revenue Code of 1986 does not apply by 
reason of paragraph (2) (relating to certain re-
tailers) or paragraph (4) (relating to certain re-
finers) of section 613A(d) of such Code. 
(B) RULES FOR APPLYING PARAGRAPHS (2) 
AND (4) OF SECTION 613A(d).—For purposes of 
subparagraph (A), paragraphs (2) and (4) of 
section 613A(d) of the Internal Revenue Code 
of 1986 shall be applied by substituting ‘‘cal-
endar year’’ for ‘‘taxable year’’ each place it ap-
pears in such paragraphs. 
(3) PROGRAM CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 612(d).
133 
(4) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(5) SMALL PRODUCER.—The term ‘‘small pro-
ducer’’ means an entity organized under the laws of 
the United States with production levels of less than 
1,000 barrels per day of oil equivalent. 
(6) ULTRA-DEEPWATER.—The term ‘‘ultra- 
deepwater’’ means a water depth that is equal to or 
greater than 1,500 meters. 
(7) ULTRA-DEEPWATER
ARCHITECTURE.—The 
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies for the exploration for, or 
production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths. 
(8) ULTRA-DEEPWATER
TECHNOLOGY.—The 
term ‘‘ultra-deepwater technology’’ means a discrete 
technology that is specially suited to address 1 or 
more challenges associated with the exploration for, 
or production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths. 
(9) UNCONVENTIONAL
NATURAL
GAS
AND 
OTHER PETROLEUM RESOURCE.—The term ‘‘uncon-
134 
ventional natural gas and other petroleum resource’’ 
means natural gas and other petroleum resource lo-
cated onshore in an economically inaccessible geo-
logical formation, including resources of small pro-
ducers. 
Æ
135 
there are authorized to be appropriated to the Sec-
retary, to be deposited in the Fund, $50,000,000 for 
each of the fiscal years 2006 through 2015, to re-
main available until expended. 
(b) OBLIGATIONAL
AUTHORITY.—Monies in the 
Fund shall be available to the Secretary for obligation 
under this subtitle without fiscal year limitation, to remain 
available until expended. 
(c) PRIOR DISTRIBUTIONS.—The distributions de-
scribed in subsection (a) are those required by law— 
(1) to States and to the Reclamation Fund 
under the Mineral Leasing Act (30 U.S.C. 191(a)); 
and 
(2) to other funds receiving monies from Fed-
eral oil and gas leasing programs, including— 
(A) any recipients pursuant to section 8(g) 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(g)); 
(B) the Land and Water Conservation 
Fund, pursuant to section 2(c) of the Land and 
Water Conservation Fund Act of 1965 (16 
U.S.C. 4601–5(c)); 
(C) the Historic Preservation Fund, pursu-
ant to section 108 of the National Historic 
Preservation Act (16 U.S.C. 470h); and
136 
(D) the Secure Energy Reinvestment 
Fund. 
(d) ALLOCATION.—Amounts obligated from the Fund 
under this section in each fiscal year shall be allocated 
as follows: 
(1) 50 percent shall be for activities under sec-
tion 612. 
(2) 35 percent shall be for activities under sec-
tion 613(d)(1). 
(3) 10 percent shall be for activities under sec-
tion 613(d)(2). 
(4) 5 percent shall be for research under section 
611(d). 
(e) FUND.—There is hereby established in the Treas-
ury of the United States a separate fund to be known as 
the ‘‘Ultra-Deepwater and Unconventional Natural Gas 
and Other Petroleum Research Fund’’. 
Æ