posed to be, conducted. For purposes of this paragraph, 
the term ‘State’ includes the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Is-
lands, the Virgin Islands, American Samoa, Guam, 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)).’’; and 
(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. 104. DETERMINATION OF ADJACENT ZONES AND OCS 
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 
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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. 105. OUTER CONTINENTAL SHELF LEASING PROGRAM. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) in subsection (a), by adding at the end of 
paragraph (3) the following: ‘‘The Secretary shall, in 
each 5-Year Program, include lease sales that when 
viewed as a whole propose to offer for oil and gas 
leasing at least 75 percent of the available unleased 
acreage within each OCS Planning Area. Available 
unleased acreage is that portion of the outer Conti-
nental Shelf that is not under lease at the time of 
the proposed lease sale, and has not otherwise been 
made unavailable for leasing by law.’’; 
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(2) in subsection (c), by striking so much as 
precedes paragraph (3) and inserting the following: 
‘‘(c)(1) During the preparation of any proposed leas-
ing program under this section, the Secretary shall con-
sider and analyze leasing throughout the entire outer Con-
tinental Shelf without regard to any other law affecting 
such leasing. During this preparation the Secretary shall 
invite and consider suggestions from any interested Fed-
eral agency, including the Attorney General, in consulta-
tion with the Federal Trade Commission, and from the 
Governor of any coastal State. The Secretary may also in-
vite or consider any suggestions from the executive of any 
local government in a coastal State that have been pre-
viously submitted to the Governor of such State, and from 
any other person. Further, the Secretary shall consult 
with the Secretary of Defense regarding military oper-
ational needs in the outer Continental Shelf. The Sec-
retary shall work with the Secretary of Defense to resolve 
any conflicts that might arise regarding offering any area 
of the outer Continental Shelf for oil and gas leasing. If 
the Secretaries are not able to resolve all such conflicts, 
any unresolved issues shall be elevated to the President 
for resolution. 
‘‘(2) After the consideration and analysis required by 
paragraph (1), including the consideration of the sugges-
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tions received from any interested Federal agency, the 
Federal Trade Commission, the Governor of any coastal 
State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal 
Register a proposed leasing program accompanied by a 
draft environmental impact statement prepared pursuant 
to the National Environmental Policy Act of 1969. After 
the publishing of the proposed leasing program and during 
the comment period provided for on the draft environ-
mental impact statement, the Secretary shall submit a 
copy of the proposed program to the Governor of each af-
fected State for review and comment. The Governor may 
solicit comments from those executives of local govern-
ments in the Governor’s State that the Governor, in the 
discretion of the Governor, determines will be affected by 
the proposed program. If any comment by such Governor 
is received by the Secretary at least 15 days prior to sub-
mission to the Congress pursuant to paragraph (3) and 
includes a request for any modification of such proposed 
program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such 
request in such modified form as the Secretary considers 
appropriate, and stating the Secretary’s reasons therefor. 
All such correspondence between the Secretary and the 
Governor of any affected State, together with any addi-
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tional information and data relating thereto, shall accom-
pany such proposed program when it is submitted to the 
Congress.’’; and 
(3) by adding at the end the following: 
‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE-
SOURCES AND STATE AND LOCAL GOVERNMENT SHARES 
OF OCS RECEIPTS.—Concurrent with the publication of 
the scoping notice at the beginning of the development of 
each 5-Year Outer Continental Shelf Oil and Gas Leasing 
Program, or as soon thereafter as possible, the Secretary 
shall— 
‘‘(1) provide to each Adjacent State a current 
estimate of proven and potential oil and gas re-
sources located within the State’s Adjacent Zone; 
and 
‘‘(2) provide to each Adjacent State, and coast-
al political subdivisions thereof, a best-efforts projec-
tion of the OCS Receipts that the Secretary expects 
will be shared with each Adjacent State, and its 
coastal political subdivisions, using the assumption 
that the unleased tracts within the State’s Adjacent 
Zone are fully made available for leasing, including 
long-term projected OCS Receipts. In addition, the 
Secretary shall include a macroeconomic estimate of 
the impact of such leasing on the national economy 
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and each State’s economy, including investment, 
jobs, revenues, personal income, and other cat-
egories.’’. 
SEC. 106. COORDINATION WITH ADJACENT STATES. 
Section 19 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1345) is amended— 
(1) in subsection (a) in the first sentence by in-
serting ‘‘, for any tract located within the Adjacent 
State’s Adjacent Zone,’’ after ‘‘government’’; and 
(2) by adding the following: 
‘‘(f)(1) No Federal agency may permit or otherwise 
approve, without the concurrence of the Adjacent State, 
the construction of a crude oil or petroleum products (or 
both) pipeline within the part of the Adjacent State’s Ad-
jacent Zone that is withdrawn from oil and gas leasing, 
except that such a pipeline may be approved, without such 
Adjacent State’s concurrence, to pass through such Adja-
cent Zone if at least 50 percent of the production pro-
jected to be carried by the pipeline within its first 10 years 
of operation is from areas of the Adjacent State’s Adja-
cent Zone. 
‘‘(2) No State may prohibit the construction within 
its Adjacent Zone or its State waters of a natural gas pipe-
line that will transport natural gas produced from the 
outer Continental Shelf. However, an Adjacent State may 
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prevent a proposed natural gas pipeline landing location 
if it proposes two alternate landing locations in the Adja-
cent State, acceptable to the Adjacent State, located with-
in 50 miles on either side of the proposed landing loca-
tion.’’. 
SEC. 107. ENVIRONMENTAL STUDIES. 
Section 20(d) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1346) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following: 
‘‘(2) For all programs, lease sales, leases, and 
actions under this Act, the following shall apply re-
garding the application of the National Environ-
mental Policy Act of 1969: 
‘‘(A) Granting or directing lease suspen-
sions and the conduct of all preliminary activi-
ties on outer Continental Shelf tracts, including 
seismic activities, are categorically excluded 
from the need to prepare either an environ-
mental assessment or an environmental impact 
statement, and the Secretary shall not be re-
quired to analyze whether any exceptions to a 
categorical exclusion apply for activities con-
ducted under the authority of this Act. 
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‘‘(B) The environmental impact statement 
developed in support of each 5-Year Oil and 
Gas Leasing Program provides the environ-
mental analysis for all lease sales to be con-
ducted under the program and such sales shall 
not be subject to further environmental anal-
ysis. 
‘‘(C) Exploration plans shall not be subject 
to any requirement to prepare an environmental 
impact statement, and the Secretary may find 
that exploration plans are eligible for categor-
ical exclusion due to the impacts already being 
considered within an environmental impact 
statement or due to mitigation measures in-
cluded within the plan. 
‘‘(D) Within each OCS Planning Area, 
after the preparation of the first development 
and production plan environmental impact 
statement for a leased tract within the Area, fu-
ture development and production plans for 
leased tracts within the Area shall only require 
the preparation of an environmental assessment 
unless the most recent development and produc-
tion plan environmental impact statement with-
in the Area was finalized more than 10 years 
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prior to the date of the approval of the plan, in 
which case an environmental impact statement 
shall be required.’’. 
SEC. 108. 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 leasing 
and substantially full exploration and production 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 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 
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(3) required in the national interest, as deter-
mined by the President. 
SEC. 109. REPURCHASE OF CERTAIN LEASES. 
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—The Secretary of the Interior may repur-
chase and cancel any Federal oil and gas, geothermal, 
coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, but not including any outer Conti-
nental Shelf oil and gas leases that were subject to litiga-
tion in the Court of Federal Claims on January 1, 2006, 
if the Secretary finds that such lease qualifies for repur-
chase and cancellation under the regulations 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. 
(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. 110. OFFSITE ENVIRONMENTAL MITIGATION. 
Notwithstanding any other provision of law, any per-
son conducting activities under the Mineral Leasing Act 
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(7) provide that the lessee, its agents, and its 
contractors use best efforts to provide a fair share, 
as determined by the level of obligation previously 
agreed to in the 1974 agreement implementing sec-
tion 29 of the Federal Agreement and Grant of 
Right of Way for the Operation of the Trans-Alaska 
Pipeline, of employment and contracting for Alaska 
Natives and Alaska Native Corporations from 
throughout the State; 
(8) prohibit the export of oil produced under 
the lease; and 
(9) 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. 
(b) PROJECT LABOR AGREEMENTS.—The Secretary, 
as a term and condition of each lease under this subtitle 
and in recognizing the Government’s proprietary interest 
in labor stability and in the ability of construction labor 
and management to meet the particular needs and condi-
tions of projects to be developed under the leases issued 
pursuant to this subtitle and the special concerns of the 
parties to such leases, shall require that the lessee and 
its agents and contractors negotiate to obtain a project 
labor agreement for the employment of laborers and me-
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