cated within 4 marine leagues from any 
coastline within areas described in para-
graph (2), unless increased by the provi-
sions of (iii). 
‘‘(iii) Beginning October 1, 2017, the 
Secretary shall share, in addition to the 
share established by (i), as modified by (ii) 
if any, amounts determined as follows, 
with the total of the amounts shared under 
this paragraph not to exceed in any fiscal 
year an amount equal to 63.75 percent of 
total OCS Receipts derived from all leases 
located within 4 marine leagues from any 
coastline within areas described in para-
graph (2)—25 percent of the total of OCS 
Receipts derived from areas described in 
paragraph (3) and subsection (c)(3) that 
exceed the following amounts for the fiscal 
year indicated: for fiscal year 2017 the 
amount of $900,000,000 and for each fis-
cal year thereafter add $100,000,000. 
Amounts added under this clause to be 
shared, if any, for any fiscal year shall be 
added to the sharing base for all subse-
quent years and shall be allocated among
State Adjacent Zones on a basis propor-
tional to the result from the calculation in 
clause (i). 
‘‘(B) AREAS
NOT
DESCRIBED
IN
PARA-
GRAPH
(2).—Beginning October 1, 2005, the 
Secretary shall share 63.75 percent of OCS re-
ceipts derived from all leases located completely 
or partially within 4 marine leagues from any 
coastline within areas not described paragraph 
(2). 
‘‘(5) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2), (3), and (4) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone within 100 miles of its 
coastline that generated royalties during the fis-
cal year, if the other producing or States have 
a coastline point within 300 miles of any por-
tion of the leased tract, in which case the 
amount allocated for the leased tract shall be—
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS 
PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE 
COASTLINE.—
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2) and (3). 
‘‘(2) PHASED-IN RECEIPTS SHARING.—
‘‘(A) Beginning October 1, 2005, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region partially
or completely beyond 100 miles of any 
coastline that were available for leasing 
under the 2002–2007 5-Year Oil and Gas 
Leasing Program in effect prior to the 
date of enactment of the Deep Ocean En-
ergy Resources Act of 2006. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2005, partially or completely 
beyond 100 miles of any coastline located 
on portions of the OCS that were not 
available for leasing under the 2002–2007 
5-Year OCS Oil and Gas Leasing Program 
in effect prior to the date of enactment of 
the Deep Ocean Energy Resources Act of 
2006. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2005, located in 
the Alaska OCS Region partially or com-
pletely beyond 100 miles of the coastline. 
‘‘(B) The Secretary shall share the fol-
lowing percentages of OCS Receipts from the 
leases described in subparagraph (A) derived 
during the fiscal year indicated: 
‘‘(i) For fiscal year 2006, 4.6 percent.
‘‘(ii) For fiscal year 2007, 5.95 per-
cent. 
‘‘(iii) For fiscal year 2008, 6.80 per-
cent. 
‘‘(iv) For fiscal year 2009, 7.65 per-
cent. 
‘‘(v) For fiscal year 2010, 10.20 per-
cent. 
‘‘(vi) For fiscal year 2011, 12.75 per-
cent. 
‘‘(vii) For fiscal year 2012, 15.30 per-
cent. 
‘‘(viii) For fiscal year 2013, 17.85 
percent. 
‘‘(ix) For fiscal year 2014, 20.40 per-
cent. 
‘‘(x) For fiscal year 2015, 22.95 per-
cent. 
‘‘(xi) For fiscal year 2016, 25.50 per-
cent. 
‘‘(xii) For fiscal year 2017, 28.05 per-
cent. 
‘‘(xiii) For fiscal year 2018, 30.60 
percent.
‘‘(xiv) For fiscal year 2019, 33.15 
percent. 
‘‘(xv) For fiscal year 2020, 35.70 per-
cent. 
‘‘(xvi) For fiscal year 2021, 38.25 
percent. 
‘‘(xvii) For fiscal year 2022 and each 
subsequent fiscal year, 42.50 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
6(2) of the Deep Ocean Energy Resources Act 
of 2006. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2005, the Secretary shall share 42.5 
percent of OCS Receipts derived on and after Octo-
ber 1, 2005, from all leases located partially or com-
pletely beyond 100 miles of any coastline not in-
cluded within the provisions of paragraph (2), except 
that the Secretary shall only share 25 percent of 
such OCS Receipts derived from all such leases 
within a State’s Adjacent Zone if no leasing is al-
lowed within any portion of that State’s Adjacent 
Zone located completely within 100 miles of any 
coastline.
‘‘(4) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2) and (3) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone partially or completely 
beyond 100 miles of its coastline that generated 
royalties during the fiscal year, if the other pro-
ducing State or States have a coastline point 
within 300 miles of any portion of the leased 
tract, in which case the amount allocated for 
the leased tract shall be—
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
‘‘(d) TRANSMISSION OF ALLOCATIONS.—
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the end of each fiscal year, the Secretary shall 
transmit—
‘‘(A) to each State 60 percent of such 
State’s allocations under subsections (b)(5)(A), 
(b)(5)(B), (c)(4)(A), and (c)(4)(B) for the im-
mediate prior fiscal year; 
‘‘(B) to each coastal county-equivalent and 
municipal political subdivisions of such State a 
total of 40 percent of such State’s allocations 
under 
subsections 
(b)(5)(A), 
(b)(5)(B), 
(c)(4)(A), and (c)(4)(B), together with all ac-
crued interest thereon; and 
‘‘(C) the remaining allocations under sub-
sections (b)(5) and (c)(4), together with all ac-
crued interest thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY-
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows:
‘‘(A) 25 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely more than 25 miles landward of 
the coastline and at least a part of which lies 
not more than 75 miles landward from the 
coastline, with the allocation among such coast-
al county-equivalent political subdivisions based 
on population. 
‘‘(B) 75 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely or partially less than 25 miles 
landward of the coastline, with the allocation 
among such coastal county-equivalent political 
subdivisions to be further allocated as follows: 
‘‘(i) 25 percent shall be allocated 
based on the ratio of such coastal county-
equivalent political subdivision’s population 
to the coastal population of all coastal 
county-equivalent political subdivisions in 
the State. 
‘‘(ii) 25 percent shall be allocated 
based on the ratio of such coastal county-
equivalent political subdivision’s coastline 
miles to the coastline miles of all coastal 
county-equivalent political subdivisions in
the State as calculated by the Secretary. 
In such calculations, coastal county-equiva-
lent political subdivisions without a coast-
line shall be considered to have 50 percent 
of the average coastline miles of the coast-
al county-equivalent political subdivisions 
that do have coastlines. 
‘‘(iii) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on a 
formula that allocates the funds based on 
such coastal county-equivalent political 
subdivision’s relative distance from the 
leased tract. 
‘‘(iv) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on 
the relative level of outer Continental Shelf 
oil and gas activities in a coastal political 
subdivision compared to the level of outer 
Continental Shelf activities in all coastal
political subdivisions in the State. The Sec-
retary shall define the term ‘outer Conti-
nental Shelf oil and gas activities’ for pur-
poses of this subparagraph to include, but 
not be limited to, construction of vessels, 
drillships, and platforms involved in explo-
ration, production, and development on the 
outer Continental Shelf; support and sup-
ply bases, ports, and related activities; of-
fices of geologists, geophysicists, engineers, 
and other professionals involved in support 
of exploration, production, and develop-
ment of oil and gas on the outer Conti-
nental Shelf; pipelines and other means of 
transporting oil and gas production from 
the outer Continental Shelf; and processing 
and refining of oil and gas production from 
the outer Continental Shelf. For purposes 
of this subparagraph, if a coastal county-
equivalent political subdivision does not 
have a coastline, its coastal point shall be 
the point on the coastline closest to it. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
SUBDIVISIONS.—The initial allocation to 
each coastal county-equivalent political subdivision
under paragraph (2) shall be further allocated to the 
coastal county-equivalent political subdivision and 
any coastal municipal political subdivisions located 
partially or wholly within the boundaries of the 
coastal county-equivalent political subdivision as fol-
lows: 
‘‘(A) One-third shall be allocated to the 
coastal county-equivalent political subdivision. 
‘‘(B) Two-thirds shall be allocated on a per 
capita basis to the municipal political subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos-
ited under this section shall be invested by the Secretary 
of the Treasury in securities backed by the full faith and 
credit of the United States having maturities suitable to 
the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury. 
‘‘(f) USE OF FUNDS.—A recipient of funds under this 
section may use the funds for one or more of the following: 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support
public education, including career technical edu-
cation. 
‘‘(2) To make transportation infrastructure im-
provements. 
‘‘(3) To reduce taxes. 
‘‘(4) To promote, fund, and provide for—
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways construction and mainte-
nance; 
‘‘(D) levee construction and maintenance 
and shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To promote, fund, and provide for —
‘‘(A) infrastructure associated with energy 
production activities conducted on the outer 
Continental Shelf; 
‘‘(B) energy demonstration projects; 
‘‘(C) supporting infrastructure for shore-
based energy projects; 
‘‘(D) State geologic programs, including 
geologic mapping and data storage programs, 
and state geophysical data acquisition;
‘‘(E) State seismic monitoring programs, 
including operation of monitoring stations; 
‘‘(F) development of oil and gas resources 
through enhanced recovery techniques; 
‘‘(G) alternative energy development, in-
cluding bio fuels, coal-to-liquids, oil shale, tar 
sands, geothermal, geopressure, wind, waves, 
currents, hydro, and other renewable energy; 
‘‘(H) energy efficiency and conservation 
programs; and 
‘‘(I) front-end engineering and design for 
facilities that produce liquid fuels from hydro-
carbons and other biological matter. 
‘‘(6) To promote, fund, and provide for—
‘‘(A) historic preservation programs and 
projects; 
‘‘(B) natural disaster planning and re-
sponse; and 
‘‘(C) hurricane and natural disaster insur-
ance programs. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(g) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such
funds, except as otherwise may be required by law. How-
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
sions may be used as matching funds for other Federal 
programs. 
‘‘(h) EFFECT OF FUTURE LAWS.—Enactment of any 
future Federal statute that has the effect, as determined 
by the Secretary, of restricting any Federal agency from 
spending appropriated funds, or otherwise preventing it 
from fulfilling its pre-existing responsibilities as of the 
date of enactment of the statute, unless such responsibil-
ities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue 
any permit or other approval impacting on the OCS oil 
and gas leasing program, or any lease issued thereunder, 
or to implement any provision of this Act shall automati-
cally prohibit any sharing of OCS Receipts under this sec-
tion directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Sec-
retary shall make the determination of the existence of 
such restricting effects within 30 days of a petition by any 
outer Continental Shelf lessee or producing State. 
‘‘(i) DEFINITIONS.—In this section:
‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
political subdivision’ means a political jurisdiction 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
pendent municipality not part of a county, parish, or 
borough in Alaska, or other equivalent subdivision of 
a coastal State, that lies within the coastal zone. 
‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ means a municipality located within and part 
of a county, parish, borough in Alaska, or other 
equivalent subdivision of a State, all or part of which 
coastal municipal political subdivision lies within the 
coastal zone. 
‘‘(3) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of all coastal coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Census Bureau. 
‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical subdivision at least a part of which lies, within 
75 miles landward from the coastline, or a greater
distance as determined by State law enacted to im-
plement this section. 
‘‘(5) BONUS
BIDS.—The term ‘bonus bids’ 
means all funds received by the Secretary to issue 
an outer Continental Shelf minerals lease. 
‘‘(6) ROYALTIES.—The term ‘royalties’ means 
all funds received by the Secretary from production 
of oil or natural gas, or the sale of production taken 
in-kind, from an outer Continental Shelf minerals 
lease. 
‘‘(7) PRODUCING STATE.—The term ‘producing 
State’ means an Adjacent State having an Adjacent 
Zone containing leased tracts from which OCS Re-
ceipts were derived. 
‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids, royalties, and conservation of re-
sources fees.’’. 
SEC. 8. RESERVATION OF LANDS AND RIGHTS. 
Section 12 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341) is amended—
(1) in subsection (a) by adding at the end the 
following: ‘‘The President may partially or com-
pletely revise or revoke any prior withdrawal made 
by the President under the authority of this section. 
The President may not revise or revoke a withdrawal
that is extended by a State under subsection (h), nor 
may the President withdraw from leasing any area 
for which a State failed to prohibit, or petition to 
prohibit, leasing under subsection (g). Further, in 
the area of the outer Continental Shelf more than 
100 miles from any coastline, not more than 25 per-
cent of the acreage of any OCS Planning Area may 
be withdrawn from leasing under this section at any 
point in time. A withdrawal by the President may be 
for a term not to exceed 10 years. When considering 
potential uses of the outer Continental Shelf, to the 
maximum extent possible, the President shall accom-
modate competing interests and potential uses.’’; 
(2) by adding at the end the following: 
‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN 
AREAS OF THE OUTER CONTINENTAL SHELF.—
‘‘(1) PROHIBITION AGAINST LEASING.—
‘‘(A) UNAVAILABLE
FOR
LEASING
WITH-
OUT
STATE
REQUEST.—Except as otherwise 
provided in this subsection, from and after en-
actment of the Deep Ocean Energy Resources 
Act of 2006, the Secretary shall not offer for 
leasing for oil and gas, or natural gas, any area 
within 50 miles of the coastline that was with-
drawn from disposition by leasing in the Atlan-
tic OCS Region or the Pacific OCS Region, or 
the Gulf of Mexico OCS Region Eastern Plan-
ning Area, as depicted on the maps referred to 
in this subparagraph, under the ‘Memorandum 
on Withdrawal of Certain Areas of the United 
States Outer Continental Shelf from Leasing 
Disposition’, 34 Weekly Comp. Pres. Doc. 
1111, dated June 12, 1998, or any area within 
50 miles of the coastline not withdrawn under 
that Memorandum that is included within the 
Gulf of Mexico OCS Region Eastern Planning 
Area as indicated on the map entitled ‘Gulf of 
Mexico OCS Region State Adjacent Zones and 
OCS Planning Areas’ or the Florida Straits 
Planning Area as indicated on the map entitled 
‘Atlantic OCS Region State Adjacent Zones and 
OCS Planning Areas’, both of which are dated 
September 2005 and on file in the Office of the 
Director, Minerals Management Service. 
‘‘(B) AREAS BETWEEN 50 AND 100 MILES 
FROM
THE
COASTLINE.—Unless an Adjacent 
State petitions under subsection (h) within one 
year after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2006 for 
natural gas leasing or by June 30, 2009, for oil
and gas leasing, the Secretary shall offer for 
leasing any area more than 50 miles but less 
than 100 miles from the coastline that was 
withdrawn from disposition by leasing in the 
Atlantic OCS Region, the Pacific OCS Region, 
or the Gulf of Mexico OCS Region Eastern 
Planning Area, as depicted on the maps re-
ferred to in this subparagraph, under the 
‘Memorandum on Withdrawal of Certain Areas 
of the United States Outer Continental Shelf 
from Leasing Disposition’, 34 Weekly Comp. 
Pres. Doc. 1111, dated June 12, 1998, or any 
area more than 50 miles but less than 100 
miles of the coastline not withdrawn under that 
Memorandum that is included within the Gulf 
of Mexico OCS Region Eastern Planning Area 
as indicated on the map entitled ‘Gulf of Mexico 
OCS Region State Adjacent Zones and OCS 
Planning Areas’ or within the Florida Straits 
Planning Area as indicated on the map entitled 
‘Atlantic OCS Region State Adjacent Zones and 
OCS Planning Areas’, both of which are dated 
September 2005 and on file in the Office of the 
Director, Minerals Management Service.
‘‘(2) REVOCATION OF WITHDRAWAL.—The pro-
visions of the ‘Memorandum on Withdrawal of Cer-
tain Areas of the United States Outer Continental 
Shelf from Leasing Disposition’, 34 Weekly Comp. 
Pres. Doc. 1111, dated June 12, 1998, are hereby 
revoked and are no longer in effect. The 2002–2007 
5-Year Outer Continental Shelf Oil and Gas Leasing 
Program is hereby amended to include the areas 
added to the Gulf of Mexico OCS Region Central 
Planning Area by this Act to the extent that such 
areas were included within the original boundaries of 
proposed Lease Sale 181. The amendment to such 
leasing program includes a sale in such additional 
areas, which shall be held no later than April 30, 
2007. The Final Environmental Impact Statement 
prepared for this area for Lease Sale 181 shall be 
deemed sufficient for all purposes for each lease sale 
in which such area is offered for lease during the 
2002–2007 5-Year Outer Continental Shelf Oil and 
Gas Leasing Program without need for supplemen-
tation. Any tract only partially added to the Gulf of 
Mexico OCS Region Central Planning Area by this 
Act shall be eligible for leasing of the part of such 
tract that is included within the Gulf of Mexico OCS 
Region Central Planning Area, and the remainder of
such tract that lies outside of the Gulf of Mexico 
OCS Region Central Planning Area may be devel-
oped and produced by the lessee of such partial tract 
using extended reach or similar drilling from a loca-
tion on a leased area. Further, any area in the OCS 
withdrawn from leasing may be leased, and there-
after developed and produced by the lessee using ex-
tended reach or similar drilling from a location on 
a leased area located in an area available for leasing. 
‘‘(3) PETITION FOR LEASING.—
‘‘(A) IN GENERAL.—The Governor of the 
State, upon concurrence of its legislature, may 
submit to the Secretary a petition requesting 
that the Secretary make available any area that 
is within the State’s Adjacent Zone, included 
within the provisions of paragraph (1), and that 
(i) is greater than 25 miles from any point on 
the coastline of a Neighboring State for the 
conduct of offshore leasing, pre-leasing, and re-
lated activities with respect to natural gas leas-
ing; or (ii) is greater than 50 miles from any 
point on the coastline of a Neighboring State 
for the conduct of offshore leasing, pre-leasing, 
and related activities with respect to oil and gas 
leasing. The Adjacent State may also petition
for leasing any other area within its Adjacent 
Zone if leasing is allowed in the similar area of 
the Adjacent Zone of the applicable Neigh-
boring State, or if not allowed, if the Neigh-
boring State, acting through its Governor, ex-
presses its concurrence with the petition. The 
Secretary shall only consider such a petition 
upon making a finding that leasing is allowed 
in the similar area of the Adjacent Zone of the 
applicable Neighboring State or upon receipt of 
the concurrence of the Neighboring State. The 
date of receipt by the Secretary of such concur-
rence by the Neighboring State shall constitute 
the date of receipt of the petition for that area 
for which the concurrence applies. Except for 
any area described in the last sentence of para-
graph (2), a petition for leasing any part of the 
Alabama Adjacent Zone that is a part of the 
Gulf of Mexico Eastern Planning Area, as indi-
cated on the map entitled ‘Gulf of Mexico OCS 
Region State Adjacent Zones and OCS Plan-
ning Areas’ which is dated September 2005 and 
on file in the Office of the Director, Minerals 
Management Service, shall require the concur-
rence of both Alabama and Florida.
‘‘(B) LIMITATIONS
ON
LEASING.—In its 
petition, a State with an Adjacent Zone that 
contains leased tracts may condition new leas-
ing for oil and gas, or natural gas for tracts 
within 25 miles of the coastline by—
‘‘(i) requiring a net reduction in the 
number of production platforms; 
‘‘(ii) requiring a net increase in the 
average distance of production platforms 
from the coastline; 
‘‘(iii) limiting permanent surface occu-
pancy on new leases to areas that are more 
than 10 miles from the coastline; 
‘‘(iv) limiting some tracts to being 
produced from shore or from platforms lo-
cated on other tracts; or 
‘‘(v) other conditions that the Adja-
cent State may deem appropriate as long 
as the Secretary does not determine that 
production is made economically or tech-
nically impracticable or otherwise impos-
sible. 
‘‘(C) ACTION BY SECRETARY.—Not later 
than 90 days after receipt of a petition under 
subparagraph (A), the Secretary shall approve
the petition, unless the Secretary determines 
that leasing the area would probably cause seri-
ous harm or damage to the marine resources of 
the State’s Adjacent Zone. Prior to approving 
the petition, the Secretary shall complete an en-
vironmental assessment that documents the an-
ticipated environmental effects of leasing in the 
area included within the scope of the petition. 
‘‘(D) FAILURE TO ACT.—If the Secretary 
fails to approve or deny a petition in accordance 
with subparagraph (C) the petition shall be con-
sidered to be approved 90 days after receipt of 
the petition. 
‘‘(E) AMENDMENT OF THE 5-YEAR LEAS-
ING
PROGRAM.—Notwithstanding section 18, 
within 180 days of the approval of a petition 
under subparagraph (C) or (D), after the expi-
ration of the time limits in paragraph (1)(B), 
and within 180 days after the enactment of the 
Deep Ocean Energy Resources Act of 2006 for 
the areas made available for leasing under 
paragraph (2), the Secretary shall amend the 
current 5-Year Outer Continental Shelf Oil and 
Gas Leasing Program to include a lease sale or 
sales for at least 75 percent of the associated
areas, unless there are, from the date of ap-
proval, expiration of such time limits, or enact-
ment, as applicable, fewer than 12 months re-
maining in the current 5-Year Leasing Program 
in which case the Secretary shall include the as-
sociated areas within lease sales under the next 
5-Year Leasing Program. For purposes of 
amending the 5-Year Program in accordance 
with this section, further consultations with 
States shall not be required. For purposes of 
this section, an environmental assessment per-
formed under the provisions of the National 
Environmental Policy Act of 1969 to assess the 
effects of approving the petition shall be suffi-
cient to amend the 5-Year Leasing Program. 
‘‘(h) OPTION TO EXTEND WITHDRAWAL FROM LEAS-
ING WITHIN CERTAIN AREAS OF THE OUTER CONTI-
NENTAL SHELF.—A State, through its Governor and upon 
the concurrence of its legislature, may extend for a period 
of time of up to 5 years for each extension the withdrawal 
from leasing for all or part of any area within the State’s 
Adjacent Zone located more than 50 miles, but less than 
100 miles, from the coastline that is subject to subsection 
(g)(1)(B). A State may extend multiple times for any par-
ticular area but not more than once per calendar year for
any particular area. A State must prepare separate exten-
sions, with separate votes by its legislature, for oil and 
gas leasing and for natural gas leasing. An extension by 
a State may affect some areas to be withdrawn from all 
leasing and some areas to be withdrawn only from one 
type of leasing. Extensions of the withdrawal from leasing 
of any part of the Alabama Adjacent Zone that is more 
than 50 miles, but less than 100 miles, from the coastline 
that is a part of the Gulf of Mexico OCS Region Eastern 
Planning Area, as indicated on the map entitled ‘Gulf of 
Mexico OCS Region State Adjacent Zones and OCS Plan-
ning Areas’ which is dated September 2005 and on file 
in the Office of the Director, Minerals Management Serv-
ice, may be made by either Alabama or Florida. 
‘‘(i) EFFECT OF OTHER LAWS.—Adoption by any 
Adjacent State of any constitutional provision, or enact-
ment of any State statute, that has the effect, as deter-
mined by the Secretary, of restricting either the Governor 
or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automati-
cally (1) prohibit any sharing of OCS Receipts under this 
Act with the Adjacent State, and its coastal political sub-
divisions, and (2) prohibit the Adjacent State from exer-
cising any authority under subsection (h), for the duration 
of the restriction. The Secretary shall make the determina-
tion of the existence of such restricting constitutional pro-
vision or State statute within 30 days of a petition by any 
outer Continental Shelf lessee or coastal State. 
‘‘(j) PROHIBITION ON LEASING EAST OF THE MILI-
TARY MISSION LINE.—
‘‘(1) Notwithstanding any other provision of 
law, from and after the enactment of the Deep 
Ocean Energy Resources Act of 2006, no area of the 
outer Continental Shelf located in the Gulf of Mexico 
east of the military mission line may be offered for 
leasing for oil and gas or natural gas. 
‘‘(2) In this subsection, the term ‘military mis-
sion line’ means a line located at 86 degrees, 
41minutes West Longitude, and extending south 
from the coast of Florida to the outer boundary of 
United States territorial waters in the Gulf of Mex-
ico.’’. 
SEC. 9. 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 
or natural gas leasing at least 75 percent of the
available unleased acreage within each OCS Plan-
ning Area. Available unleased acreage is that portion 
of the outer Continental 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.’’; 
(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 
Continental Shelf without regard to any other law affect-
ing such leasing. During this preparation the Secretary 
shall invite and consider suggestions from any interested 
Federal agency, including the Attorney General, in con-
sultation with the Federal Trade Commission, and from 
the Governor of any coastal State. The Secretary may also 
invite or consider any suggestions from the executive of 
any local government in a coastal State that have been 
previously submitted to the Governor of such State, and 
from any other person. Further, the Secretary shall con-
sult 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 or natural 
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-
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-
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 
and each State’s economy, including investment, 
jobs, revenues, personal income, and other cat-
egories.’’. 
SEC. 10. 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 or natural 
gas leasing, except that such a pipeline may be approved, 
without such Adjacent State’s concurrence, to pass 
through such Adjacent Zone if at least 50 percent of the 
production projected to be carried by the pipeline within
its first 10 years of operation is from areas of the Adja-
cent State’s Adjacent 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 
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. 11. 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 regarding the ap-
plication of the National Environmental Policy Act of 
1969: 
‘‘(A) Granting or directing lease suspensions 
and the conduct of all preliminary activities on outer 
Continental Shelf tracts, including seismic activities, 
are categorically excluded from the need to prepare 
either an environmental assessment or an environ-
mental impact statement, and the Secretary shall 
not be required to analyze whether any exceptions to 
a categorical exclusion apply for activities conducted 
under the authority of this Act. 
‘‘(B) The environmental impact statement de-
veloped in support of each 5-year oil and gas leasing 
program provides the environmental analysis for all 
lease sales to be conducted under the program and 
such sales shall not be subject to further environ-
mental analysis. 
‘‘(C) Exploration plans shall not be subject to 
any requirement to prepare an environmental impact 
statement, and the Secretary may find that explo-
ration plans are eligible for categorical exclusion due 
to the impacts already being considered within an 
environmental impact statement or due to mitigation 
measures included 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, future development and pro-
duction plans for leased tracts within the Area shall 
only require the preparation of an environmental as-
sessment unless the most recent development and 
production plan environmental impact statement
within the Area was finalized more than 10 years 
prior to the date of the approval of the plan, in 
which case an environmental impact statement shall 
be required.’’. 
SEC. 13. FEDERAL ENERGY NATURAL RESOURCES EN-
HANCEMENT ACT OF 2006. 
(a) FINDINGS.—The Congress finds the following: 
(1) Energy and minerals exploration, develop-
ment, and production on Federal onshore and off-
shore lands, including bio-based fuel, natural gas, 
minerals, oil, geothermal, and power from wind, 
waves, currents, and thermal energy, involves signifi-
cant outlays of funds by Federal and State wildlife, 
fish, and natural resource management agencies for 
environmental studies, planning, development, moni-
toring, and management of wildlife, fish, air, water, 
and other natural resources. 
(2) State wildlife, fish, and natural resource 
management agencies are funded primarily through 
permit and license fees paid to the States by the 
general public to hunt and fish, and through Federal 
excise taxes on equipment used for these activities. 
(3) Funds generated from consumptive and rec-
reational uses of wildlife, fish, and other natural re-
sources currently are inadequate to address the nat-
ural resources related to energy and minerals devel-
opment on Federal onshore and offshore lands. 
(4) Funds available to Federal agencies respon-
sible for managing Federal onshore and offshore 
lands and Federal-trust wildlife and fish species and 
their habitats are inadequate to address the natural 
resources related to energy and minerals develop-
ment on Federal onshore and offshore lands. 
(5) Receipts derived from sales, bonus bids, and 
royalties under the mineral leasing laws of the 
United States are paid to the Treasury through the 
Minerals Management Service of the Department of 
the Interior. 
(6) None of the receipts derived from sales, 
bonus bids, and royalties under the minerals leasing 
laws of the United States are paid to the Federal or 
State agencies to examine, monitor, and manage 
wildlife, fish, air, water, and other natural resources 
related to natural gas, oil, and mineral exploration 
and development. 
(b) PURPOSES.—It is the purpose of this section to—
(1) authorize expenditures for the monitoring 
and management of wildlife and fish, and their habi-
tats, and air, water, and other natural resources re-
lated to energy and minerals development on Fed-
eral onshore and offshore lands; 
(2) authorize expenditures for each fiscal year 
to the Secretary of the Interior and the States; and 
(3) use the appropriated funds to secure the 
necessary trained workforce or contractual services 
to conduct environmental studies, planning, develop-
ment, monitoring, and post-development manage-
ment of wildlife and fish and their habitats and air, 
water, and other natural resources that may be re-
lated to bio-based fuel, gas, mineral, oil, wind, or 
other energy exploration, development, transpor-
tation, transmission, and associated activities on 
Federal onshore and offshore lands, including, but 
not limited to—
(A) pertinent research, surveys, and envi-
ronmental analyses conducted to identify any 
impacts on wildlife, fish, air, water, and other 
natural resources from energy and mineral ex-
ploration, development, production, and trans-
portation or transmission; 
(B) projects to maintain, improve, or en-
hance wildlife and fish populations and their 
habitats or air, water, or other natural re-
sources, including activities under the Endan-
gered Species Act of 1973; 
(C) research, surveys, environmental anal-
yses, and projects that assist in managing, in-
cluding mitigating either onsite or offsite, or 
both, the impacts of energy and mineral activi-
ties on wildlife, fish, air, water, and other nat-
ural resources; and 
(D) projects to teach young people to live 
off the land. 
(c) DEFINITIONS.—In this section: 
(1) ENHANCEMENT PROGRAM.—The term ‘‘En-
hancement Program’’ means the Federal Energy 
Natural Resources Enhancement Program estab-
lished by this section. 
(2) STATE.—The term ‘‘State’’ means the Gov-
ernor of the State. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out the Enhance-
ment Program $150,000,000 for each of fiscal years 2007 
through 2017. 
(e) ESTABLISHMENT
OF FEDERAL ENERGY NAT-
URAL RESOURCES ENHANCEMENT PROGRAM.—
(1) IN
GENERAL.—There is established the 
Federal Energy Natural Resources Enhancement 
Program. 
(2) PAYMENT
TO
SECRETARY
OF
THE
INTE-
RIOR.—Beginning with fiscal year 2007, and in each 
fiscal year thereafter, one-third of amounts appro-
priated for the Enhancement Program shall be avail-
able to the Secretary of the Interior for use for the 
purposes described in subsection (b)(3). 
(3) PAYMENT TO STATES.—
(A) IN GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
two-thirds of amounts appropriated for the En-
hancement Program shall be available to the 
States for use for the purposes described in 
(b)(3). 
(B) USE OF PAYMENTS BY STATE.—Each 
State shall use the payments made under this 
paragraph only for carrying out projects and 
programs for the purposes described in (b)(3). 
(C) ENCOURAGE USE OF PRIVATE FUNDS 
BY STATE.—Each State shall use the payments 
made under this paragraph to leverage private 
funds for carrying out projects for the purposes 
described in (b)(3).
(f) LIMITATION ON USE.—Amounts made available 
under this section may not be used for the purchase of 
any interest in land. 
(g) 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. 14. 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, or to issue a lease 
to any person, for any area of the outer Continental Shelf 
shall have no force or effect. 
SEC. 15. 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. 16. 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, but not including any outer Conti-
nental Shelf oil and gas leases that are subject to litigation 
in the Court of Federal Claims on January 1, 2006, if 
the Secretary finds that such lease qualifies for repurchase 
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. 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. 17. 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. 18. 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. 19. AUTHORITY TO USE DECOMMISSIONED OFFSHORE 
OIL AND GAS PLATFORMS AND OTHER FA-
CILITIES FOR ARTIFICIAL REEF, SCIENTIFIC 
RESEARCH, OR OTHER USES. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Rigs to Reefs Act of 2006’’. 
(b) IN GENERAL.—The Outer Continental Shelf 
Lands Act (43 U.S.C. 1301 et seq.) is amended by insert-
ing after section 9 the following: 
‘‘SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND 
GAS PLATFORMS AND OTHER FACILITIES 
FOR 
ARTIFICIAL 
REEF, 
SCIENTIFIC 
RE-
SEARCH, OR OTHER USES. 
‘‘(a) IN GENERAL.—The Secretary shall issue regula-
tions under which the Secretary may authorize use of an 
offshore oil and gas platform or other facility that is de-
commissioned from service for oil and gas purposes for 
an artificial reef, scientific research, or any other use au-
thorized under section 8(p) or any other applicable Fed-
eral law. 
‘‘(b) TRANSFER
REQUIREMENTS.—The Secretary 
shall not allow the transfer of a decommissioned offshore 
oil and gas platform or other facility to another person 
unless the Secretary is satisfied that the transferee is suf-
ficiently bonded, endowed, or otherwise financially able to 
fulfill its obligations, including but not limited to—
‘‘(1) ongoing maintenance of the platform or 
other facility; 
‘‘(2) any liability obligations that might arise; 
‘‘(3) removal of the platform or other facility if 
determined necessary by the Secretary; and 
‘‘(4) any other requirements and obligations 
that the Secretary may deem appropriate by regula-
tion. 
‘‘(c) PLUGGING
AND
ABANDONMENT.—The Sec-
retary shall ensure that plugging and abandonment of 
wells is accomplished at an appropriate time. 
‘‘(d) POTENTIAL TO PETITION TO OPT-OUT OF REG-
ULATIONS.—An Adjacent State acting through a resolu-
tion of its legislature, with concurrence of its Governor, 
may preliminarily petition to opt-out of the application of 
regulations promulgated under this section to platforms 
and other facilities located in the area of its Adjacent Zone 
within 12 miles of the coastline. Upon receipt of the pre-
liminary petition, the Secretary shall complete an environ-
mental assessment that documents the anticipated envi-
ronmental effects of approving the petition. The Secretary 
shall provide the environmental assessment to the State, 
which then has the choice of no action or confirming its 
petition by further action of its legislature, with the con-
currence of its Governor. The Secretary is authorized to
except such area from the application of such regulations, 
and shall approve any confirmed petition. 
‘‘(e) LIMITATION ON LIABILITY.—A person that had 
used an offshore oil and gas platform or other facility for 
oil and gas purposes and that no longer has any ownership 
or control of the platform or other facility shall not be 
liable under Federal law for any costs or damages arising 
from such platform or other facility after the date the plat-
form or other facility is used for any purpose under sub-
section (a), unless such costs or damages arise from—
‘‘(1) use of the platform or other facility by the 
person for development or production of oil or gas; 
or 
‘‘(2) another act or omission of the person. 
‘‘(f) OTHER LEASING AND USE NOT AFFECTED.—
This section, and the use of any offshore oil and gas plat-
form or other facility for any purpose under subsection 
(a), shall not affect—
‘‘(1) the authority of the Secretary to lease any 
area under this Act; or 
‘‘(2) any activity otherwise authorized under 
this Act.’’. 
(c) DEADLINE FOR REGULATIONS.—The Secretary of 
the Interior shall issue regulations under subsection (b)
by not later than 180 days after the date of the enactment 
of this Act. 
(d) STUDY AND REPORT ON EFFECTS OF REMOVAL 
OF PLATFORMS.—Not later than one year after the date 
of enactment of this Act, the Secretary of the Interior, 
in consultation with other Federal agencies as the Sec-
retary deems advisable, shall study and report to the Con-
gress regarding how the removal of offshore oil and gas 
platforms and other facilities from the outer Continental 
Shelf would affect existing fish stocks and coral popu-
lations. 
SEC. 20. REPEAL OF REQUIREMENT TO CONDUCT COM-
PREHENSIVE INVENTORY OF OCS OIL AND 
NATURAL GAS RESOURCES. 
The Energy Policy Act of 2005 (Public Law 109–
58) is amended—
(1) by repealing section 357 (119 Stat. 720; 42 
U.S.C. 15912); and 
(2) in the table of contents in section 1(b), by 
striking the item relating to such section 357. 
SEC. 21. MINING AND PETROLEUM SCHOOLS. 
(a) MAINTENANCE AND RESTORATION OF EXISTING 
AND HISTORIC PETROLEUM AND MINING ENGINEERING 
PROGRAMS.—Public Law 98–409 (30 U.S.C. 1221 et 
seq.) is amended to read as follows:
‘‘SECTION 1. SHORT TITLE. 
‘‘This Act may be cited as the ‘Energy and Mineral 
Schools Reinvestment Act’. 
‘‘SEC. 2. POLICY. 
‘‘It is the policy of the United States to maintain the 
human capital needed to preserve and foster the economic, 
energy, and mineral resources security of the United 
States. The petroleum and mining engineering programs 
and the applied geology and geophysics programs at State 
chartered schools, universities, and institutions that 
produce human capital are national assets and should be 
assisted with Federal funds to ensure their continued 
health and existence. 
‘‘SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EX-
ISTING PETROLEUM AND MINING ENGINEER-
ING EDUCATION PROGRAMS. 
‘‘(a) The Secretary of the Interior (in this Act re-
ferred to as the ‘Secretary’) shall provide funds to historic 
and existing State-chartered recognized petroleum or min-
ing schools to assist such schools, universities, and institu-
tions in maintaining programs in petroleum, mining, and 
mineral engineering education and research. All funds 
shall be directed only to these programs and shall be sub-
ject to the conditions of this section. Such funds shall not 
be less than 25 percent of the annual outlay of funds au-
thorized by section 23(d) of the Deep Ocean Energy Re-
sources Act of 2006. 
‘‘(b) In this Act the term ‘historic and existing State-
chartered recognized petroleum or mining school’ means 
a school, university, or educational institution with the 
presence of an engineering program meeting the specific 
program criteria, established by the member societies of 
ABET, Inc., for petroleum, mining, or mineral engineer-
ing and that is accredited on the date of enactment of 
the Deep Ocean Energy Resources Act of 2006 by ABET, 
Inc. 
‘‘(c) It shall be the duty of each school, university, 
or institution receiving funds under this section to provide 
for and enhance the training of undergraduate and grad-
uate petroleum, mining, and mineral engineers through re-
search, investigations, demonstrations, and experiments. 
All such work shall be carried out in a manner that will 
enhance undergraduate education. 
‘‘(d) Each school, university, or institution receiving 
funds under this Act shall maintain the program for which 
the funds are provided for 10 years after the date of the 
first receipt of such funds and take steps described in its 
application for funding to increase the number of under-
graduate students enrolled in and completing the pro-
grams of study in petroleum, mining, and mineral engi-
neering. 
‘‘(e) The research, investigation, demonstration, ex-
periment, and training authorized by this section may in-
clude development and production of conventional and 
non-conventional fuel resources, the production of metallic 
and non-metallic mineral resources including industrial 
mineral resources, and the production of stone, sand, and 
gravel. In all cases the work carried out with funds made 
available under this Act shall include a significant oppor-
tunity for participation by undergraduate students. 
‘‘(f) Research funded by this Act related to energy 
and mineral resource development and production may in-
clude—
‘‘(1) studies of petroleum, mining, and mineral 
extraction and immediately related beneficiation 
technology; 
‘‘(2) mineral economics, reclamation technology, 
and practices for active operations; 
‘‘(3) the development of re-mining systems and 
technologies to facilitate reclamation that fosters the 
ultimate recovery of resources at abandoned petro-
leum, mining, and aggregate production sites; and
‘‘(4) research on ways to extract petroleum and 
mineral resources that reduce the environmental im-
pact of those activities. 
‘‘(g) Grants for basic science and engineering studies 
and research shall not require additional participation by 
funding partners. Grants for studies to demonstrate the 
proof of concept for science and engineering or the dem-
onstration of feasibility and implementation shall include 
participation by industry and may include funding from 
other Federal agencies. 
‘‘(h)(1) No funds made available under this section 
shall be applied to the acquisition by purchase or lease 
of any land or interests therein, or the rental, purchase, 
construction, preservation, or repair of any building. 
‘‘(2) Funding made available under this section may 
be used with the express approval of the Secretary for pro-
posals that will provide for maintaining or upgrading of 
existing laboratories and laboratory equipment. Funding 
for such maintenance shall not be used for university over-
head expenses. 
‘‘(3) Funding made available under this Act may be 
used for maintaining and upgrading mines and oil and gas 
drilling rigs owned by a school, university, or institution 
described in this section that are used for undergraduate 
and graduate training and worker safety training. All re-
quests for funding such mines and oil and gas drilling rigs 
must demonstrate that they have been owned by the 
school, university, or institution for 5 years prior to the 
date of enactment of the Deep Ocean Energy Resources 
Act of 2006 and have been actively used for instructional 
or training purposes during that time. 
‘‘(4) Any funding made available under this section 
for research, investigation, demonstration, experiment, or 
training shall not be used for university overhead charges 
in excess of 10 percent of the amount authorized by the 
Secretary. 
‘‘SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGI-
NEERING PROGRAMS. 
‘‘(a) A school, university, or educational institution 
that formerly met the requirements of section 3(b) imme-
diately before the date of the enactment of the Deep Ocean 
Energy Resources Act of 2006, or that seeks to establish 
a new program described in section 3(b), shall be eligible 
for funding under this Act only if it—
‘‘(1) establishes a petroleum, mining, or mineral 
engineering program that meets the specific program 
criteria and is accredited as such by ABET, Inc., 
with particular consideration awarded to establishing 
programs and minority serving institutions;
‘‘(2) agrees to the conditions of subsections (c) 
through (h) of section 3 and the Secretary deter-
mines that the program will strengthen and increase 
the number of nationally available, well-qualified fac-
ulty members in petroleum, mining, and mineral en-
gineering; and 
‘‘(3) agrees to maintain the accredited program 
for 10 years after the date of the first receipt of 
funds under this Act. 
‘‘(b) The Secretary shall seek the advice of the Com-
mittee established pursuant to section 11 in determining 
the criteria used to carry out this section. 
‘‘SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXIST-
ING SCHOOLS. 
‘‘Where appropriate, the Secretary may make funds 
available to consortia of schools, universities, or institu-
tions described in sections 3, 4, and 6, including those con-
sortia that include schools, universities, or institutions 
that are ineligible for funds under this Act if those schools, 
universities, or institutions, respectively, have skills, pro-
grams, or facilities specifically identified as needed by the 
consortia to meet the necessary expenses for purposes of—
‘‘(1) specific energy and mineral research 
projects of broad application that could not other-
wise be undertaken, including the expenses of plan-
ning and coordinating regional petroleum, geo-
thermal, mining, and mineral engineering or 
beneficiation projects by two or more schools; and 
‘‘(2) research into any aspects of petroleum, 
geothermal, mining, or mineral engineering or 
beneficiation problems, including but not limited to 
exploration, that are related to the mission of the 
Department of the Interior. 
‘‘SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MIN-
ERAL RESOURCE PROGRAMS IN PETROLEUM 
AND MINERAL EXPLORATION GEOLOGY, PE-
TROLEUM GEOPHYSICS, OR MINING GEO-
PHYSICS. 
‘‘(a) Twelve percent of the annual outlay of funds au-
thorized by section 23(d) of the Deep Ocean Energy Re-
sources Act of 2006 may be granted to schools, univer-
sities, and institutions other than those described in sec-
tions 3 and 4, with particular consideration awarded to 
minority serving institutions. 
‘‘(b) The Secretary shall determine the eligibility of 
a college or university to receive funding under this Act 
using criteria that include—
‘‘(1) the presence of a substantial program of 
undergraduate and graduate geoscience instruction 
and research in one or more of the following special-
ties: petroleum geology, geothermal geology, mineral 
exploration geology, economic geology, industrial 
minerals geology, mining geology, petroleum geo-
physics, mining geophysics, geological engineering, 
or geophysical engineering that has a demonstrated 
history of achievement; 
‘‘(2) evidence of institutional commitment for 
the purposes of this Act that includes a significant 
opportunity for participation by undergraduate stu-
dents in research; 
‘‘(3) evidence that such school, university, or in-
stitution has or can obtain significant industrial co-
operation in activities within the scope of this Act; 
‘‘(4) agreement by the school, university, or in-
stitution to maintain the programs for which the 
funding is sought for the 10-year period beginning 
on the date the school, university, or institution first 
receives such funds; and 
‘‘(5) requiring that such funding shall be for 
the purposes set forth in subsections (c) through (h) 
of section 3 and subject to the conditions set forth 
in section 3(h). 
‘‘(c) The Secretary shall seek the advice of the Com-
mittee established pursuant to section 11 in determining 
the criteria used to carry out this section.
‘‘SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND 
FELLOWSHIPS. 
‘‘(a) The Secretary shall utilize 10 percent of the an-
nual outlay of funds authorized by section 23(d) of the 
Deep Ocean Energy Resources Act of 2006 for the pur-
pose of providing merit-based scholarships for under-
graduate 
education, 
graduate 
fellowships, 
and 
postdoctoral fellowships. 
‘‘(b) In order to receive a scholarship or a graduate 
fellowship, an individual student must be a lawful perma-
nent resident of the United States or a United States cit-
izen and must agree in writing to complete a course of 
studies and receive a degree in petroleum, mining, or min-
eral engineering, petroleum geology, geothermal geology, 
mining and economic geology, petroleum and mining geo-
physics, or mineral economics. 
‘‘(c) The regulations required by section 9 shall re-
quire that an individual, in order to retain a scholarship 
or graduate fellowship, must continue in one of the course 
of studies listed in subsection (b) of this section, must re-
main in good academic standing, as determined by the 
school, institution, or university and must allow for rein-
statement of the scholarship or graduate fellowship by the 
Secretary, upon the recommendation of the school or insti-
tution. Such regulations may also provide for recovery of 
funds from an individual who fails to complete any of the
courses of study listed in subsection (b) of this section 
after notice that such completion is a requirement of re-
ceipt funding under this Act. 
‘‘(d) To carry out this section, the Secretary shall 
award grants to schools, universities, and institutions that 
are eligible to receive funding under section 3, 4 or 6. A 
school, university, or institution receiving funding under 
this subsection shall be responsible for enforcing the re-
quirements of this section for scholarship or fellowship 
students and shall return to the Secretary any funds re-
covered from an individual under subsection (c). An insti-
tution seeking funds under this subsection shall describe, 
in its application to the Secretary for funding, the number 
of students that would be awarded scholarships or fellow-
ships if the application is approved, how such students 
would be selected, and how the provisions of this section 
will be enforced. 
‘‘SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS. 
‘‘(a) Each application to the Secretary for funds 
under this Act shall state, among other things, the nature 
of the project to be undertaken; the period during which 
it will be pursued; the qualifications of the personnel who 
will direct and conduct it; the estimated costs; the impor-
tance of the project to the Nation, region, or States con-
cerned; its relation to other known research projects there-
tofore pursued or being pursued; the extent to which the 
proposed project will maximize the opportunity for the 
training of undergraduate petroleum, mining, and mineral 
engineers; geologists and geophysicists; and the extent of 
participation by nongovernmental sources in the project. 
‘‘(b) No funds shall be made available under this Act 
except for an application approved by the Secretary. All 
funds shall be made available upon the basis of merit of 
the application, the need for the knowledge that it is ex-
pected to produce when completed, and the opportunity 
it provides for the undergraduate training of individuals 
as petroleum, mining, and mineral engineers, geologists, 
and geophysicists. The Secretary may use competitive re-
view by nongovernmental experts in relevant fields to de-
termine which applications to approve, to the extent prac-
ticable. 
‘‘(c) Funds available under this Act shall be paid at 
such times and in such amounts during each fiscal year 
as determined by the Secretary, and upon vouchers ap-
proved by the Secretary. Each school, university, or insti-
tution that receives funds under this Act shall—
‘‘(1) establish its plan to provide for the train-
ing of individuals as petroleum, mining, and mineral 
engineers, geologists, and geophysicists under a cur-
riculum appropriate to the field of mineral resources 
and mineral engineering and related fields; 
‘‘(2) establish policies and procedures that as-
sure that Federal funds made available under this 
Act for any fiscal year will supplement and, to the 
extent practicable, increase the level of funds that 
would, in the absence of such Federal funds, be 
made available for purposes of this Act, and in no 
case supplant such funds; and 
‘‘(3) have an officer appointed by its governing 
authority who shall receive and account for all funds 
paid under this Act and shall make an annual report 
to the Secretary on or before the first day of Sep-
tember of each year, on work accomplished and the 
status of projects underway, together with a detailed 
statement of the amounts received under this Act 
during the preceding fiscal year, and of its disburse-
ments on schedules prescribed by the Secretary. 
‘‘(d) If any of the funds received by the authorized 
receiving officer of a program under this Act are found 
by the Secretary to have been improperly diminished, lost, 
or misapplied, such funds shall be recovered by the Sec-
retary. 
‘‘(e) Schools, universities, and institutions receiving 
funds under this Act are authorized and encouraged to
plan and conduct programs under this Act in cooperation 
with each other and with such other agencies, business en-
terprises and individuals. 
‘‘SEC. 9. DUTIES OF SECRETARY. 
‘‘(a) The Secretary, acting through the Assistant Sec-
retary for Land and Minerals Management, shall admin-
ister this Act and shall prescribe such rules and regula-
tions as may be necessary to carry out its provisions not 
later than 1 year after the enactment of the Deep Ocean 
Energy Resources Act of 2006. 
‘‘(b)(1) There is established in the Department of the 
Interior, under the supervision of the Assistant Secretary 
for Land and Minerals Management, an office to be known 
as the Office of Petroleum and Mining Schools (hereafter 
in this Act referred to as the ‘Office’) to administer the 
provisions of this Act. There shall be a Director of the 
Office who shall be a member of the Senior Executive 
Service. The position of the Director shall be allocated 
from among the existing Senior Executive Service posi-
tions at the Department of the Interior and shall be a 
career reserved position as defined in section 3132(a)(8) 
of title 5, United States Code. 
‘‘(2) The Director is authorized to appoint a Deputy 
Director and to employ such officers and employees as 
may be necessary to enable the Office to carry out its func-
tions. Such appointments shall be made from existing po-
sitions at the Department of the Interior, and shall be sub-
ject to the provisions of title 5, United States Code, gov-
erning appointments in the competitive service. Such posi-
tions shall be paid in accordance with the provisions of 
chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates. 
‘‘(3) In carrying out his or her functions, the Director 
shall assist and advise the Secretary and the Committee 
pursuant to section 11 of this Act by—
‘‘(A) providing professional and administrative 
staff support for the Committee including record-
keeping and maintaining minutes of all Committee 
and subcommittee meetings; 
‘‘(B) coordinating the activities of the Com-
mittee with Federal agencies and departments, and 
the schools, universities, and institutions to which 
funds are provided under this Act; 
‘‘(C) maintaining accurate records of funds dis-
bursed for all scholarship and fellowship grants, re-
search grants, and grants for career technical edu-
cation purposes; 
‘‘(D) preparing any regulations required to im-
plement this Act;
‘‘(E) conducting site visits at schools, univer-
sities, and institutions receiving funding under this 
Act; and 
‘‘(F) serving as a central repository for reports 
and clearing house for public information on re-
search funded by this Act. 
‘‘(4) The Director or an employee of the Office shall 
be present at each meeting of the Committee pursuant to 
section 11 or a subcommittee of such Committee. 
‘‘(5) The Director is authorized to contract with pub-
lic or private agencies, institutions, and organizations and 
with individuals without regard to section 3324(a) and (b) 
of title 31, United States Code, and section 5 of title 41, 
United States Code, in carrying out his or her functions. 
‘‘(6) As needed the Director shall ascertain whether 
the requirements of this Act have been met by schools, 
universities, institutions, and individuals. 
‘‘(c) The Secretary, acting through the Office of Pe-
troleum and Mining Schools, shall furnish such advice and 
assistance as will best promote the purposes of this Act, 
shall participate in coordinating research, investigations, 
demonstrations, and experiments initiated under this Act, 
shall indicate to schools, universities, and institutions re-
ceiving funds under this Act such lines of inquiry that 
seem most important, and shall encourage and assist in
the establishment and maintenance of cooperation between 
such schools, universities, and institutions, other research 
organizations, the Department of the Interior, and other 
Federal agencies. 
‘‘(d) The Secretary shall establish procedures—
‘‘(1) to ensure that each employee and con-
tractor of the Office established by this section and 
each member of the Committee pursuant to section 
11 of this Act shall disclose to the Secretary any fi-
nancial interests in or financial relationships with 
schools, universities, institutions or individuals re-
ceiving funds, scholarships or fellowships under this 
Act; 
‘‘(2) to require any employee, contractor, or 
member of the Committee with a financial relation-
ship disclosed under paragraph (1) to recuse them-
selves from—
‘‘(A) any recommendation or decision re-
garding the awarding of funds, scholarships or 
fellowships; or 
‘‘(B) any review, report, analysis or inves-
tigation regarding compliance with the provi-
sions of this Act by a school, university, institu-
tion or any individual.
‘‘(e) On or before the first day of July of each year 
beginning after the date of enactment of this sentence, 
schools, universities, and institutions receiving funds 
under this Act shall certify compliance with this Act and 
upon request of the Director of the office established by 
this section provide documentation of such compliance. 
‘‘(f) An individual granted a scholarship or fellowship 
with funds provided under this Act shall through their re-
spective school, university, or institution, advise the Direc-
tor of the office established by this Act of progress towards 
completion of the course of studies and upon the awarding 
of the degree within 30 days after the award. 
‘‘(g) The regulations required by this section shall in-
clude a preference for veterans and service members who 
have received or will receive either the Afghanistan Cam-
paign Medal or the Iraq Campaign Medal as authorized 
by Public Law 108–234, and Executive Order No. 13363. 
‘‘SEC. 10. COORDINATION. 
‘‘(a) Nothing in this Act shall be construed to impair 
or modify the legal relationship existing between any of 
the schools, universities, and institutions under whose di-
rection a program is established with funds provided under 
this Act and the government of the State in which it is 
located. Nothing in this Act shall in any way be construed
to authorize Federal control or direction of education at 
any school, university, or institution. 
‘‘(b) The programs authorized by this Act are in-
tended to enhance the Nation’s petroleum, mining, and 
mineral engineering education programs and to enhance 
educational programs in petroleum and mining exploration 
and to increase the number of individuals enrolled in and 
completing these programs. To achieve this intent, the 
Secretary and the Committee pursuant to section 11 shall 
receive the continuing advice and cooperation of all agen-
cies of the Federal Government concerned with the identi-
fication, exploration, and development of energy and min-
eral resources. 
‘‘(c) Nothing in this Act is intended to give or shall 
be construed as giving the Secretary any authority over 
mining and mineral resources research conducted by any 
agency of the Federal Government, or as repealing or di-
minishing existing authorities or responsibilities of any 
agency of the Federal Government to plan and conduct, 
contract for, or assist in research in its area of responsi-
bility and concern with regard to mining and mineral re-
sources. 
‘‘(d) The schools, universities, and institutions receiv-
ing funding under this Act shall make detailed reports to 
the Office of Petroleum and Mining Schools on projects
completed, in progress, or planned with funds provided 
under this Act. All such reports shall be available to the 
public on not less than an annual basis through the Office 
of Petroleum and Mining Schools. All uses, products, proc-
esses, and other developments resulting from any re-
search, demonstration, or experiment funded in whole or 
in part under this Act shall be made available promptly 
to the general public, subject to exception or limitation, 
if any, as the Secretary may find necessary in the interest 
of national security, and subject to the applicable Federal 
law governing patents. 
‘‘SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MIN-
ERAL ENGINEERING AND ENERGY AND MIN-
ERAL RESOURCE EDUCATION. 
‘‘(a) The Secretary shall appoint a Committee on Pe-
troleum, Mining, and Mineral Engineering and Energy 
and Mineral Resource Education composed of—
‘‘(1) the Assistant Secretary of the Interior re-
sponsible for land and minerals management and 
not more than 16 other persons who are knowledge-
able in the fields of mining and mineral resources re-
search, including 2 university administrators one of 
whom shall be from historic and existing petroleum 
and mining schools; a community, technical, or tribal 
college administrator; a career technical education
educator; 6 representatives equally distributed from 
the petroleum, mining, and aggregate industries; a 
working miner; a working oilfield worker; a rep-
resentative of the Interstate Oil and Gas Compact 
Commission; a representative from the Interstate 
Mining Compact Commission; a representative from 
the Western Governors Association; a representative 
of the State geologists, and a representative of a 
State mining and reclamation agency. In making 
these 16 appointments, the Secretary shall consult 
with interested groups. 
‘‘(2) The Assistant Secretary for Land and 
Minerals Management, in the capacity of the Chair-
man of the Committee, may have present during 
meetings of the Committee representatives of Fed-
eral agencies with responsibility for energy and min-
erals resources management, energy and mineral re-
source investigations, energy and mineral commodity 
information, international trade in energy and min-
eral commodities, mining safety regulation and mine 
safety research, and research into the development, 
production, and utilization of energy and mineral 
commodities. These representatives shall serve as 
technical advisors to the committee and shall have 
no voting responsibilities.
‘‘(b) The Committee shall consult with, and make rec-
ommendations to, the Secretary on policy matters relating 
to carrying out this Act. The Secretary shall consult with 
and carefully consider recommendations of the Committee 
in such matters. 
‘‘(c) Committee members, other than officers or em-
ployees of Federal, State, or local governments, shall be, 
for each day (including traveltime) during which they are 
performing Committee business, paid at a rate fixed by 
the Secretary but not in excess of the daily equivalent of 
the maximum rate of pay for level IV of the Executive 
Schedule under section 5136 of title 5, United States 
Code, and shall be fully reimbursed for travel, subsistence, 
and related expenses. 
‘‘(d) The Committee shall be chaired by the Assistant 
Secretary of the Interior responsible for land and minerals 
management. There shall also be elected a Vice Chairman 
by the Committee from among the members referred to 
in this section. The Vice Chairman shall perform such du-
ties as are determined to be appropriate by the committee, 
except that the Chairman of the Committee must person-
ally preside at all meetings of the full Committee. The 
Committee may organize itself into such subcommittees as 
the Committee may deem appropriate.
‘‘(e) Following completion of the report required by 
section 385 of the Energy Policy Act of 2005, the Com-
mittee shall consider the recommendations of the report, 
ongoing efforts in the schools, universities, and institu-
tions receiving funding under this Act, the Federal and 
State Governments, and the private sector, and shall for-
mulate and recommend to the Secretary a national plan 
for a program utilizing the fiscal resources provided under 
this Act. The Committee shall submit such plan to the 
Secretary for approval. Upon approval, the plan shall 
guide the Secretary and the Committee in their actions 
under this Act. 
‘‘(f) Section 10 of the Federal Advisory Committee 
Act (5 U.S.C. App. 2) shall not apply to the Committee. 
‘‘SEC. 12. CAREER TECHNICAL EDUCATION. 
‘‘(a) Up to 25 percent of the annual outlay of funds 
authorized by section 23(d) of the Deep Ocean Energy Re-
sources Act of 2006 may be granted to schools or institu-
tions including, but not limited to, colleges, universities, 
community colleges, tribal colleges and universities, tech-
nical institutes, secondary schools, other than those de-
scribed in sections 3, 4, 5, and 6, and jointly sponsored 
apprenticeship and training programs that are authorized 
by Federal law.
‘‘(b) The Secretary shall determine the eligibility of 
a school or institution to receive funding under this section 
using criteria that include—
‘‘(1) the presence of a State-approved program 
in mining engineering technology, petroleum engi-
neering technology, industrial engineering tech-
nology, or industrial technology that—
‘‘(A) is focused on technology and its use 
in energy and mineral production and related 
maintenance, operational safety, or energy in-
frastructure protection and security; 
‘‘(B) prepares students for advanced or su-
pervisory roles in the mining industry or the pe-
troleum industry; and 
‘‘(C) grants either an associate’s degree or 
a baccalaureate degree in one of the subjects 
listed in subparagraph (A); 
‘‘(2) the presence of a program, including a sec-
ondary school vocational education program or ca-
reer academy, that provides training for individuals 
entering the petroleum, coal mining, or mineral min-
ing industries; or 
‘‘(3) the presence of a State-approved program 
of career technical education at a secondary school,
offered cooperatively with a community college in 
one of the industrial sectors of—
‘‘(A) agriculture, forestry, or fisheries; 
‘‘(B) utilities; 
‘‘(C) construction; 
‘‘(D) manufacturing; and 
‘‘(E) transportation and warehousing. 
‘‘(c) Schools or institutions receiving funds under this 
section must show evidence of an institutional commit-
ment for the purposes of career technical education and 
provide evidence that the school or institution has received 
or will receive industry cooperation in the form of equip-
ment, employee time, or donations of funds to support the 
activities that are within the scope of this section. 
‘‘(d) Schools or institutions receiving funds under 
this section must agree to maintain the programs for 
which the funding is sought for a period of 10 years begin-
ning on the date the school or institution receives such 
funds, unless the Secretary finds that a shorter period of 
time is appropriate for the local labor market or is re-
quired by State authorities. 
‘‘(e) Schools or institutions receiving funds under this 
section may combine these funds with State funds, and 
other Federal funds where allowed by law, to carry out 
programs described in this section, however the use of the
funds received under this section must be reported to the 
Secretary not less than annually. 
‘‘(f) The Secretary shall seek the advice of the Com-
mittee established pursuant to section 11 in determining 
the criteria used to carry out this section. 
‘‘SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE EN-
HANCEMENT. 
‘‘(a) PHYSICAL SCIENCE, ENGINEERING AND TECH-
NOLOGY SCHOLARSHIP PROGRAM.—
‘‘(1) From the amount of funds available to 
carry out this section, the Secretary shall use 30 
percent of that amount to provide financial assist-
ance for education in physical sciences, engineering, 
and engineering or industrial technology and dis-
ciplines that, as determined by the Secretary, are 
critical to the functions of the Department of the In-
terior and are needed in the Department of the Inte-
rior workforce. 
‘‘(2) The Secretary of the Interior may award 
a scholarship in accordance with this section to a 
person who—
‘‘(A) is a citizen of the United States; 
‘‘(B) is pursuing an undergraduate or ad-
vanced degree in a critical skill or discipline de-
scribed in paragraph (1) at an institution of 
higher education; and 
‘‘(C) enters into a service agreement with 
the Secretary of the Interior as described in 
subsection (e). 
‘‘(3) The amount of the financial assistance 
provided under a scholarship awarded to a person 
under this subsection shall be the amount deter-
mined by the Secretary of the Interior as being nec-
essary to pay all educational expenses incurred by 
that person, including tuition, fees, cost of books, 
laboratory expenses, and expenses of room and 
board. The expenses paid, however, shall be limited 
to those educational expenses normally incurred by 
students at the institution of higher education in-
volved. 
‘‘(b) SCHOLARSHIP PROGRAM FOR STUDENTS AT-
TENDING MINORITY SERVING HIGHER EDUCATION INSTI-
TUTIONS.—
‘‘(1) From the amount of funds available to 
carry out this section, the Secretary shall use 35 
percent of that amount to award scholarships in ac-
cordance with this section to persons who—
‘‘(A) are enrolled in a Minority Serving 
Higher Education Institutions.
‘‘(B) are citizens or nationals of the 
United States; 
‘‘(C) are pursuing an undergraduate or ad-
vanced degree in agriculture, engineering, engi-
neering or industrial technology, or physical 
sciences, or other discipline that is found by the 
Secretary to be critical to the functions of the 
Department of the Interior and are needed in 
the Department of the Interior workforce; and 
‘‘(D) enter into a service agreement with 
the Secretary of the Interior as described in 
subsection (e). 
‘‘(2) The amount of the financial assistance 
provided under a scholarship awarded to a person 
under this subsection shall be the amount deter-
mined by the Secretary of the Interior as being nec-
essary to pay all educational expenses incurred by 
that person, including tuition, fees, cost of books, 
laboratory expenses, and expenses of room and 
board. The expenses paid, however, shall be limited 
to those educational expenses normally incurred by 
students at the institution of higher education in-
volved. 
‘‘(c) EDUCATION PARTNERSHIPS WITH MINORITY 
SERVING HIGHER EDUCATION INSTITUTIONS.—
‘‘(1) The Secretary shall require the director of 
each Bureau and Office, to foster the participation 
of Minority Serving Higher Education Institutions 
in any regulatory activity, land management activity, 
science activity, engineering or industrial technology 
activity, or engineering activity carried out by the 
Department of the Interior. 
‘‘(2) From the amount of funds available to 
carry out this section, the Secretary shall use 35 
percent of that amount to support activities at Mi-
nority Serving Higher Education Institutions by—
‘‘(A) funding faculty and students in these 
institutions in collaborative research projects 
that are directly related to the Departmental or 
Bureau missions; 
‘‘(B) allowing equipment transfer to Mi-
nority Serving Higher Education Institutions as 
a part of a collaborative research program di-
rectly related to a Departmental or Bureau mis-
sion; 
‘‘(C) allowing faculty and students at these 
Minority Serving Higher Education Institutions 
to participate Departmental and Bureau train-
ing activities;
‘‘(D) funding paid internships in Depart-
mental and Bureau facilities for students at Mi-
nority Serving Higher Education Institutions; 
‘‘(E) assigning Departmental and Bureau 
personnel to positions located at Minority Serv-
ing Higher Educational Institutions to serve as 
mentors to students interested in a science, 
technology or engineering disciplines related to 
the mission of the Department or the Bureaus. 
‘‘(d) SERVICE AGREEMENT FOR RECIPIENTS OF AS-
SISTANCE.—
‘‘(1) To receive financial assistance under sub-
section (a) or (b) of this section—
‘‘(A) in the case of an employee of the De-
partment of the Interior, the employee shall 
enter into a written agreement to continue in 
the employment of the department for the pe-
riod of obligated service determined under para-
graph (2); and 
‘‘(B) in the case of a person not an em-
ployee of the Department of the Interior, the 
person shall enter into a written agreement to 
accept and continue employment in the Depart-
ment of the Interior for the period of obligated 
service determined under paragraph (2).
‘‘(2) For the purposes of this section, the period 
of obligated service for a recipient of a scholarship 
under this section shall be the period determined by 
the Secretary of the Interior as being appropriate to 
obtain adequate service in exchange for the financial 
assistance provided under the scholarship. In no 
event may the period of service required of a recipi-
ent be less than the total period of pursuit of a de-
gree that is covered by the scholarship. The period 
of obligated service is in addition to any other period 
for which the recipient is obligated to serve in the 
civil service of the United States. 
‘‘(3) An agreement entered into under this sub-
section by a person pursuing an academic degree 
shall include any terms and conditions that the Sec-
retary of the Interior determines necessary to pro-
tect the interests of the United States or otherwise 
appropriate for carrying out this section. 
‘‘(e) REFUND
FOR PERIOD
OF UNSERVED OBLI-
GATED SERVICE.—
‘‘(1) A person who voluntarily terminates serv-
ice before the end of the period of obligated service 
required under an agreement entered into under 
subsection (d) shall refund to the United States an 
amount determined by the Secretary of the Interior
as being appropriate to obtain adequate service in 
exchange for financial assistance. 
‘‘(2) An obligation to reimburse the United 
States imposed under paragraph (1) is for all pur-
poses a debt owed to the United States. 
‘‘(3) The Secretary of the Interior may waive, 
in whole or in part, a refund required under para-
graph (1) if the Secretary determines that recovery 
would be against equity and good conscience or 
would be contrary to the best interests of the United 
States. 
‘‘(4) A discharge in bankruptcy under title 11, 
United States Code, that is entered less than five 
years after the termination of an agreement under 
this section does not discharge the person signing 
such agreement from a debt arising under such 
agreement or under this subsection. 
‘‘(f) RELATIONSHIP
TO OTHER PROGRAMS.—The 
Secretary of the Interior shall coordinate the provision of 
financial assistance under the authority of this section 
with the provision of financial assistance under the au-
thorities provided in this Act in order to maximize the ben-
efits derived by the Department of Interior from the exer-
cise of all such authorities.
‘‘(g) REPORT.—Not later than September 1 of each 
year, the Secretary of the Interior shall submit to the Con-
gress a report on the status of the assistance program car-
ried out under this section. The report shall describe the 
programs within the Department designed to recruit and 
retain a workforce on a short-term basis and on a long-
term basis. 
‘‘(h) DEFINITIONS.—As used in this section: 
‘‘(1) The term ‘Minority Serving Higher Edu-
cation Institutions’ means a Hispanic-serving insti-
tution, historically Black college or university, Alas-
ka Native-serving institution, tribal college or uni-
versity, or insular area school. 
‘‘(2) The term ‘Hispanic-serving institution’ has 
the meaning given the term in section 502(a) of the 
Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1101a(a)). 
‘‘(3) The term ‘historically Black college or uni-
versity’ has the meaning given the term ‘part B in-
stitution’ in section 322 of the Higher Education 
Act of 1965 (20 U.S.C. 1061). 
‘‘(4) The term ‘tribal college or university’ has 
the meaning given the term ‘Tribal College or Uni-
versity’ in section 316(b)(3) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1059c).
100
‘‘(5) The term ‘institution of higher education’ 
has the meaning given such term in section 101 of 
the Higher Education Act of 1965 (20 U.S.C. 
1001). 
‘‘(6) The term ‘Alaska Native-serving institu-
tion’ has the meaning given the term in section 317 
of the Higher Education Act of 1965 (20 U.S.C. 
1059d). 
‘‘(7) The term ‘insular area school’ means an 
academic institution or university in American 
Samoa, Guam, The Northern Mariana Islands, 
Puerto Rico, and the Virgin Islands, or any other 
territory or possession of the United States. 
‘‘(i) FUNDING.—To implement this section, the Sec-
retary shall use 3 percent of the annual outlay authorized 
by section 23(d) of the Deep Ocean Energy Resources Act 
of 2006.’’. 
(b) FUNDING FOR ENERGY RESEARCH.—
(1) Using 20 percent of the funds authorized by 
subsection (d), the Secretary of Energy, through the 
energy supply research and development programs of 
the Department of Energy, and in consultation with 
the Office of Science of the Department of Energy, 
shall carry out a program to award grants to institu-
tions of higher education on the basis of competitive,
101
merit-based review, for the purpose of conducting re-
search on advanced energy technologies with the po-
tential to transform the energy systems of the 
United States so as to—
(A) reduce dependence on foreign energy 
supplies; 
(B) reduce or eliminate emissions of green-
house gases; 
(C) reduce negative environmental effects 
associated with energy production, storage, and 
use; and 
(D) enhance the competitiveness of United 
States energy technology exports. 
(2) Awards made under this subsection may in-
clude funding for—
(A) energy efficiency; 
(B) renewable energy, including solar, 
wind, and biofuels; and 
(C) nuclear, hydrogen, and any other en-
ergy research that could accomplish the purpose 
set forth in paragraph (1). 
(3) The Secretary of Energy may require or au-
thorize grantees under this subsection to partner 
with industry, but only to the extent that such a re-
quirement does not prevent long-range, potentially
102
pathbreaking research from being funded under this 
subsection. 
(4) An institution of higher education seeking 
funding under this subsection shall submit an appli-
cation at such time, in such manner, and containing 
such information as the Secretary of Energy may re-
quire. 
(5) In this subsection, the term ‘‘institution of 
higher education’’ has the meaning given that term 
in section 101(a) of the Higher Education Act of 
1965. 
(c) FUNDING FOR ENERGY SCHOLARSHIPS.—
(1) Using 5 percent of the funds authorized by 
subsection (d), the Secretary of Energy, through the 
energy supply research and development programs of 
the Department of Energy, and in consultation with 
the Office of Science of the Department of Energy, 
shall carry out a program to award grants to institu-
tions of higher education on the basis of competitive, 
merit-based review, to grant graduate traineeships to 
Ph.D. students who are citizens of the United States 
who will carry out research on advanced energy tech-
nologies to accomplish the purpose set forth in sub-
section (c)(1).
103
(2) Awards made under this subsection may in-
clude funding for—
(A) energy efficiency; 
(B) renewable energy, including solar, 
wind, and biofuels; and 
(C) nuclear, hydrogen, and any other en-
ergy research that would accomplish the pur-
pose set forth in subsection (c)(1) that is not el-
igible for funding under section 7 of the Energy 
and Mineral Schools Reinvestment Act. 
(3) An institution of higher education seeking 
funding under this subsection shall submit an appli-
cation at such time, in such manner, and containing 
such information as the Secretary of Energy may re-
quire. 
(4) In this subsection, the term ‘‘institution of 
higher education’’ has the meaning given that term 
in section 101(a) of the Higher Education Act of 
1965. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$150,000,000 for each of fiscal years 2007 through 2017. 
SEC. 22. ONSHORE AND OFFSHORE MINERAL LEASE FEES. 
Except as otherwise provided in this Act, the Depart-
ment of the Interior is prohibited from charging fees appli-
104
cable to actions on Federal onshore and offshore oil and 
gas, coal, geothermal, and other mineral leases, including 
transportation of any production from such leases, if such 
fees were not established in final regulations prior to the 
date of issuance of the lease. 
SEC. 23. OCS REGIONAL HEADQUARTERS. 
The headquarters for the Gulf of Mexico Region shall 
permanently be located within the State of Louisiana with-
in 25 miles of the center of Jackson Square, New Orleans, 
Louisiana. Further, not later than July 1, 2008, the Sec-
retary of the Interior shall establish the headquarters for 
the Atlantic OCS Region and the headquarters for the Pa-
cific OCS Region within a State bordering the Atlantic 
OCS Region and a State bordering the Pacific OCS Re-
gion, respectively, from among the States bordering those 
Regions, that petitions by no later than January 1, 2008, 
for leasing, for oil and gas or natural gas, covering at least 
40 percent of the area of its Adjacent Zone within 100 
miles of the coastline. Such Atlantic and Pacific OCS Re-
gions headquarters shall be located within 25 miles of the 
coastline and each MMS OCS regional headquarters shall 
be the permanent duty station for all Minerals Manage-
ment Service personnel that on a daily basis spend on av-
erage 60 percent or more of their time in performance of 
duties in support of the activities of the respective Region,
105
except that the Minerals Management Service may house 
regional inspection staff in other locations. Each OCS Re-
gion shall each be led by a Regional Director who shall 
be an employee within the Senior Executive Service. 
SEC. 24. NATIONAL GEO FUND ACT OF 2006. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘National Geo Fund Act of 2006’’. 
(b) PURPOSES.—The purpose of this section is to 
provide for the management of geologic programs, geologic 
mapping, geophysical and other seismic studies, seismic 
monitoring programs, and the preservation and use of geo-
logic and geophysical data, geothermal and geopressure 
energy resource management, unconventional energy re-
sources management, and renewable energy management 
associated with ocean wave, current, and thermal re-
sources. 
(c) STATE DEFINED.—In this section the term 
‘‘State’’ means the agency of a State designated by its 
Governor or State law to perform the functions and activi-
ties described in subsection (b). 
(d) STRATEGIC UNCONVENTIONAL RESOURCES.—
(1) PROGRAM.—The Secretary of the Interior 
shall establish a program for production of fuels 
from strategic unconventional resources, and produc-
tion of oil and gas resources using CO2 enhanced re-
106
covery. The program shall focus initially on activities 
and domestic resources most likely to result in sig-
nificant production in the near future, and shall in-
clude work necessary to improve extraction tech-
niques, including surface and in situ operations. The 
program shall include characterization and assess-
ment of potential resources, a sampling program, 
appropriate laboratory and other analyses and test-
ing, and assessment of methods for exploration and 
development of these strategic unconventional re-
sources. 
(2) PILOT PROJECTS.—The program created in 
paragraph (1) shall include, but not be limited to, 
pilot projects on (A) the Maverick Basin heavy oil 
and tar sands formations of Texas, including the 
San Miguel deposits, (B) the Greater Green River 
Basin heavy oil, oil shale, tar sands, and coal depos-
its of Colorado, Utah, and Wyoming, (C) the shale, 
tar sands, heavy oil, and coal deposits in the Ala-
bama-Mississippi-Tennessee region, (D) the shale, 
tar sands, heavy oil, and coal deposits in the Ohio 
River valley, and (E) strategic unconventional re-
sources in California. The Secretary shall identify 
and report to Congress on feasible incentives to fos-
ter recovery of unconventional fuels by private indus-
107
try within the United States. Such incentives may 
include, but are not limited to, long-term contracts 
for the purchase of unconventional fuels for defense 
purposes, Federal grants and loan guarantees for 
necessary capital expenditures, and favorable terms 
for the leasing of Government lands containing un-
conventional resources. 
(3) DEFINITIONS.—In this subsection: 
(A) STRATEGIC
UNCONVENTIONAL
RE-
SOURCES.—The term ‘‘strategic unconventional 
resources’’ means hydrocarbon resources, in-
cluding heavy oil, oil shale, tar sands, and coal 
deposits, from which liquid fuels may be pro-
duced. 
(B) IN SITU EXTRACTION METHODS.—The 
term ‘‘in situ extraction methods’’ means recov-
ery techniques that are applied to the resources 
while they are still in the ground, and are in 
commercial use or advanced stages of develop-
ment. Such techniques include, but are not lim-
ited to, steam flooding, steam-assisted gravity 
drainage (including combination with electric 
power generation where appropriate), cyclic 
steam stimulation, air injection, and chemical 
treatment.
108
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out 
this subsection for each of fiscal years 2007 through 
2011 not less than $35,000,000. Each pilot project 
shall be allocated not less than $4,000,000 per year 
in each of fiscal years 2007 through 2011. 
(e) SUPPORT OF GEOTHERMAL AND GEOPRESSURE 
OIL AND GAS ENERGY PRODUCTION.—
(1) IN
GENERAL.—The Secretary shall carry 
out a grant program in support of geothermal and 
geopressure oil and gas energy production. The pro-
gram shall include grants for a total of not less than 
three assessments of the use of innovative geo-
thermal techniques such as organic rankine cycle 
systems at marginal, unproductive, and productive 
oil and gas wells, and not less than one assessment 
of the use of innovative geopressure techniques. The 
Secretary shall, to the extent practicable and in the 
public interest, make awards that—
(A) include not less than five oil or gas 
well sites per project award; 
(B) use a range of oil or gas well hot water 
source temperatures from 150 degrees Fahr-
enheit to 300 degrees Fahrenheit; 
(C) use existing or new oil or gas wells;
109
(D) cover a range of sizes from 175 kilo-
watts to one megawatt; 
(E) are located at a range of sites includ-
ing tribal lands, Federal lease, State, or pri-
vately owned sites; 
(F) can be replicated at a wide range of 
sites; 
(G) facilitate identification of optimum 
techniques among competing alternatives; 
(H) include business commercialization 
plans that have the potential for production of 
equipment at high volumes and operation and 
support at a large number of sites; and 
(I) satisfy other criteria that the Secretary 
determines are necessary to carry out the pro-
gram. 
The Secretary shall give preference to assessments 
that address multiple elements contained in subpara-
graphs (A) through (I). 
(2) GRANT AWARDS.—
(A) IN GENERAL.—Each grant award for 
assessment 
of 
innovative 
geothermal 
or 
geopressure technology such as organic rankine 
cycle systems at oil and gas wells made by the 
Secretary under this section shall include—
110
(i) necessary and appropriate site en-
gineering study; 
(ii) detailed economic assessment of 
site specific conditions; 
(iii) appropriate feasibility studies to 
determine ability for replication; 
(iv) design or adaptation of existing 
technology for site specific circumstances 
or conditions; 
(v) installation of equipment, service, 
and support; and 
(vi) monitoring for a minimum of one 
year after commissioning date. 
(3) COMPETITIVE GRANT SELECTION.—Not less 
than 180 days after the date of the enactment of 
this Act, the Secretary shall conduct a national solic-
itation for applications for grants under the pro-
gram. Grant recipients shall be selected on a com-
petitive basis based on criteria in subsection (b). 
(4) FEDERAL SHARE.—The Federal share of 
costs of grants under this subsection shall be pro-
vided from funds made available to carry out this 
section. The Federal share of the cost of a project 
carried out with such a grant shall not exceed 50 
percent of such cost.
111
(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out 
this subsection for each of fiscal years 2007 through 
2011 not less than $5,000,000. No funds authorized 
under this section may be used for the purposes of 
drilling new wells. 
(6) AMENDMENT.—Section 4 of the Geothermal 
Steam Act of 1970 (30 USC 1003) is amended by 
adding at the end the following: 
‘‘(h) 
GEOTHERMAL
RESOURCES
CO-PRODUCED 
WITH THE MINERALS.—Any person who holds a lease or 
who operates a cooperative or unit plan under the Mineral 
Leasing Act, in the absence of an existing lease for geo-
thermal resources under this Act, shall upon notice to the 
Secretary have the right to utilize any geothermal re-
sources co-produced with the minerals for which the lease 
was issued during the operation of that lease or coopera-
tive or unit plan, for the generating of electricity to oper-
ate the lease. Any electricity that is produced in excess 
of that which is required to operate the lease and that 
is sold for purposes outside of the boundary of the lease 
shall be subject to the requirements of section 5.’’.
(f) LIQUID FUELS GRANT PROGRAM.—
(1) PROGRAM.—The Secretary of the Interior 
shall establish a grant program for facilities for coal-
112
to-liquids, petroleum coke-to-liquids, oil shale, tar 
sands, heavy oil, and Alaska natural gas-to-liquids 
and to assess the production of low-rank coal water 
fuel (in this subsection referred to as ‘‘LRCWF’’). 
(2) LRCWF.—The LRCWF grant project loca-
tion shall use lignite coal from fields near the 
Tombigbee River within 60 miles of a land-grant col-
lege and shall be allocated $15,000,000 for expendi-
ture during fiscal year 2007. 
(3) DEFINITIONS.—In this subsection: 
(A) COAL-TO-LIQUIDS
FRONT-END
ENGI-
NEERING AND DESIGN.—The terms ‘‘coal-to-liq-
uids front-end engineering and design’’ and 
‘‘FEED’’ mean those expenditures necessary to 
engineer, design, and obtain permits for a facil-
ity for a particular geographic location which 
will utilize a process or technique to produce 
liquid fuels from coal resources. 
(B) LOW-RANK
COAL
WATER
FUEL.—In 
this subsection the term ‘‘low-rank coal water 
fuel’’ means a liquid fuel produced from hydro-
thermal treatment of lignite and sub-bituminous 
coals. 
(4) GRANT PROVISIONS.—All grants shall re-
quire a 50 percent non-Federal cost share. The first
113
4 FEED grant recipients who receive full project 
construction financing commitments, based on ear-
liest calendar date, shall not be required to repay 
any of their grants. The next 4 FEED grant recipi-
ents who receive such commitments shall be required 
to repay 25 percent of the grant. The next 4 FEED 
grant recipients who receive such commitments shall 
be required to repay 50 percent of the grant, and 
the remaining FEED grant recipients shall be re-
quired to repay 75 percent of the grant. The 
LRCWF recipient shall not be required to repay the 
grant. Any required repayment shall be paid as part 
of the closing process for any construction financing 
relating to the grant. No repayment shall require the 
payment of interest if repaid within 5 years of the 
issuance of the grant. FEED grants shall be limited 
to a maximum of $1,000,000 per 1,000 barrels per 
day of liquid fuels production capacity, not to exceed 
$25 million per year. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out 
this subsection—
(A) $65,000,000 for fiscal year 2007; and 
(B) $37,500,000 for each of fiscal years 
2008 through 2013.
114
(g) RENEWABLE ENERGY FROM OCEAN WAVE, CUR-
RENT, AND THERMAL RESOURCES.—
(1) PROGRAM.—The Secretary of the Interior 
shall establish a grant program for the production of 
renewable energy from ocean waves, currents, and 
thermal resources. 
(2) GRANT PROVISIONS.—All grants under this 
subsection shall require a 50 percent non-Federal 
cost share. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out 
this subsection funds for each of fiscal years 2007 
through 2011 in the amount of not less than 
$20,000,000 each year, and thereafter in such 
amounts as the Secretary may find appropriate. 
(h) AMENDMENT TO THE SURFACE MINING CON-
TROL AND RECLAMATION ACT OF 1977.—Section 507 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1267) is amended by adding at the end the 
following: 
‘‘(i) Any person who provides the regulatory authority 
with a map under subsection (b)(13) or (b)(14) shall not 
be liable to any other person in any way for the accuracy 
or completeness of any such map which was not prepared 
and certified by or on behalf of such person.’’.
115
SEC. 25. LEASES FOR AREAS LOCATED WITHIN 100 MILES 
OF CALIFORNIA OR FLORIDA. 
(a) AUTHORIZATION
TO CANCEL
AND EXCHANGE 
CERTAIN EXISTING OIL AND GAS LEASES; PROHIBITION 
ON SUBMITTAL OF EXPLORATION PLANS FOR CERTAIN 
LEASES PRIOR TO JUNE 30, 2010.—
(1) AUTHORITY.—Within 2 years after the date 
of enactment of this Act, the lessee of an existing oil 
and gas lease for an area located completely within 
100 miles of the coastline within the California or 
Florida Adjacent Zones shall have the option, with-
out compensation, of exchanging such lease for a 
new oil and gas lease having a primary term of 5 
years. For the area subject to the new lease, the les-
see may select any unleased tract on the outer Con-
tinental Shelf that is in an area available for leasing. 
Further, with the permission of the relevant Gov-
ernor, such a lessee may convert its existing oil and 
gas lease into a natural gas lease having a primary 
term of 5 years and covering the same area as the 
existing lease or another area within the same 
State’s Adjacent Zone within 100 miles of the coast-
line. 
(2) ADMINISTRATIVE PROCESS.—The Secretary 
of the Interior shall establish a reasonable adminis-
trative process to implement paragraph (1). Ex-
116
changes and conversions under subsection (a), in-
cluding the issuance of new leases, shall not be con-
sidered to be major Federal actions for purposes of 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). Further, such actions con-
ducted in accordance with this section are deemed to 
be in compliance all provisions of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(3) OPERATING
RESTRICTIONS.—A new lease 
issued in exchange for an existing lease under this 
section shall be subject to such national defense op-
erating stipulations on the OCS tract covered by the 
new lease as may be applicable upon issuance. 
(4) PRIORITY.—The Secretary shall give pri-
ority in the lease exchange process based on the 
amount of the original bonus bid paid for the 
issuance of each lease to be exchanged. The Sec-
retary shall allow leases covering partial tracts to be 
exchanged for leases covering full tracts conditioned 
upon payment of additional bonus bids on a per-acre 
basis as determined by the average per acre of the 
original bonus bid per acre for the partial tract 
being exchanged. 
(5) EXPLORATION
PLANS.—Any exploration 
plan submitted to the Secretary of the Interior after
117
the date of the enactment of this Act and before 
July 1, 2010, for an oil and gas lease for an area 
wholly within 100 miles of the coastline within the 
California Adjacent Zone or Florida Adjacent Zone 
shall not be treated as received by the Secretary 
until the earlier of July 1, 2010, or the date on 
which a petition by the Adjacent State for oil and 
gas leasing covering the area within which is located 
the area subject to the oil and gas lease was ap-
proved. 
(b) FURTHER
LEASE
CANCELLATION
AND
EX-
CHANGE PROVISIONS.—
(1) CANCELLATION OF LEASE.—As part of the 
lease exchange process under this section, the Sec-
retary shall cancel a lease that is exchanged under 
this section. 
(2) CONSENT OF LESSEES.—All lessees holding 
an interest in a lease must consent to cancellation 
of their leasehold interests in order for the lease to 
be cancelled and exchanged under this section. 
(3) WAIVER OF RIGHTS.—As a prerequisite to 
the exchange of a lease under this section, the lessee 
must waive any rights to bring any litigation against 
the United States related to the transaction.
118
(4) PLUGGING AND ABANDONMENT.—The plug-
ging and abandonment requirements for any wells 
located on any lease to be cancelled and exchanged 
under this section must be complied with by the les-
sees prior to the cancellation and exchange. 
(c) AREA PARTIALLY WITHIN 100 MILES OF FLOR-
IDA.—An existing oil and gas lease for an area located 
partially within 100 miles of the coastline within the Flor-
ida n Adjacent Zone may only be developed and produced 
using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on 
the area of the lease. This subsection shall not apply if 
Florida has petitioned for leasing closer to the coastline 
than 100 miles. 
(d) EXISTING OIL AND GAS LEASE DEFINED.—In 
this section the term ‘‘existing oil and gas lease’’ means 
an oil and gas lease in effect on the date of the enactment 
of this Act. 
SEC. 26. COASTAL IMPACT ASSISTANCE. 
Section 31 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356a) is repealed. 
SEC. 27. OIL SHALE AND TAR SANDS AMENDMENTS. 
(a) REPEAL OF REQUIREMENT TO ESTABLISH PAY-
MENTS.—Section 369(o) of the Energy Policy Act of 2005
119
(Public Law 109–58; 119 Stat. 728; 42 U.S.C. 15927) 
is repealed. 
(b) TREATMENT OF REVENUES.—Section 21 of the 
Mineral Leasing Act (30 U.S.C. 241) is amended by add-
ing at the end the following: 
‘‘(e) REVENUES.—
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of section 35, all revenues received from and 
under an oil shale or tar sands lease shall be dis-
posed of as provided in this subsection. 
‘‘(2) 
ROYALTY
RATES
FOR
COMMERCIAL 
LEASES.—
‘‘(A) ROYALTY
RATES.—The Secretary 
shall model the royalty schedule for oil shale 
and tar sands leases based on the royalty pro-
gram currently in effect for the production of 
synthetic crude oil from oil sands in the Prov-
ince of Alberta, Canada. 
‘‘(B) REDUCTION.—The Secretary shall re-
duce any royalty otherwise required to be paid 
under subparagraph (A) under any oil shale or 
tar sands lease on a sliding scale based upon 
market price, with a 10 percent reduction if the 
average futures price of NYMEX Light Sweet 
Crude, or a similar index, drops, for the pre-
120
vious quarter year, below $50 (in January 1, 
2006, dollars), and an 80 percent reduction if 
the average price drops below $30 (in January 
1, 2006, dollars) for the quarter previous to the 
one in which the production is sold. 
‘‘(3) DISPOSITION OF REVENUES.—
‘‘(A) DEPOSIT.—The Secretary shall de-
posit into a separate account in the Treasury 
all revenues derived from any oil shale or tar 
sands lease. 
‘‘(B) ALLOCATIONS TO STATES AND LOCAL 
POLITICAL SUBDIVISIONS.—The Secretary shall 
allocate 50 percent of the revenues deposited 
into the account established under subpara-
graph (A) to the State within the boundaries of 
which the leased lands are located, with a por-
tion of that to be paid directly by the Secretary 
to the State’s local political subdivisions as pro-
vided in this paragraph. 
‘‘(C) TRANSMISSION OF ALLOCATIONS.—
‘‘(i) IN GENERAL.—Not later than the 
last business day of the month after the 
month in which the revenues were received, 
the Secretary shall transmit—
121
‘‘(I) to each State two-thirds of 
such State’s allocations under sub-
paragraph (B), and in accordance 
with clauses (ii) and (iii) to certain 
county-equivalent and municipal polit-
ical subdivisions of such State a total 
of one-third of such State’s allocations 
under subparagraph (B), together 
with all accrued interest thereon; and 
‘‘(II) the remaining balance of 
such revenues deposited into the ac-
count that are not allocated under 
subparagraph (B), together with in-
terest thereon, shall be transmitted to 
the miscellaneous receipts account of 
the Treasury, except that until a lease 
has been in production for 20 years 
50 percent of such remaining balance 
derived from a lease shall be paid in 
accordance with subclause (I). 
‘‘(ii) 
ALLOCATIONS
TO
CERTAIN 
COUNTY-EQUIVALENT POLITICAL SUBDIVI-
SIONS.—The Secretary shall under clause 
(i)(I) make equitable allocations of the rev-
enues to county-equivalent political sub-
122
divisions that the Secretary determines are 
closely associated with the leasing and pro-
duction of oil shale and tar sands, under a 
formula that the Secretary shall determine 
by regulation. 
‘‘(iii) ALLOCATIONS
TO
MUNICIPAL 
POLITICAL SUBDIVISIONS.—The initial al-
location to each county-equivalent political 
subdivision under clause (ii) shall be fur-
ther allocated to the county-equivalent po-
litical subdivision and any municipal polit-
ical subdivisions located partially or wholly 
within the boundaries of the county-equiva-
lent political subdivision on an equitable 
basis under a formula that the Secretary 
shall determine by regulation. 
‘‘(D) INVESTMENT OF DEPOSITS.—The de-
posits in the Treasury account established 
under this section shall be invested by the Sec-
retary of the Treasury in securities backed by 
the full faith and credit of the United States 
having maturities suitable to the needs of the 
account and yielding the highest reasonably 
available interest rates as determined by the 
Secretary of the Treasury.
123
‘‘(E) USE
OF
FUNDS.—A recipient of 
funds under this subsection may use the funds 
for any lawful purpose as determined by State 
law. Funds allocated under this subsection to 
States and local political subdivisions may be 
used as matching funds for other Federal pro-
grams without limitation. Funds allocated to 
local political subdivisions under this subsection 
may not be used in calculation of payments to 
such local political subdivisions under programs 
for payments in lieu of taxes or other similar 
programs. 
‘‘(F) NO ACCOUNTING REQUIRED.—No re-
cipient of funds under this subsection shall be 
required to account to the Federal Government 
for the expenditure of such funds, except as 
otherwise may be required by law. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) 
COUNTY-EQUIVALENT
POLITICAL 
SUBDIVISION.—The term ‘county-equivalent po-
litical subdivision’ means a political jurisdiction 
immediately below the level of State govern-
ment, including a county, parish, borough in 
Alaska, independent municipality not part of a
124
county, parish, or borough in Alaska, or other 
equivalent subdivision of a State. 
‘‘(B) 
MUNICIPAL
POLITICAL
SUBDIVI-
SION.—The term ‘municipal political subdivi-
sion’ means a municipality located within and 
part of a county, parish, borough in Alaska, or 
other equivalent subdivision of a State.’’. 
SEC. 28. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAY-
MENTS UNDER SECURE RURAL SCHOOLS 
AND COMMUNITY SELF-DETERMINATION ACT 
OF 2000. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended by inserting after subsection 
(i), as added by section 7 of this Act, the following new 
subsection: 
‘‘(j) CONDITIONAL AVAILABILITY
OF FUNDS
FOR 
PAYMENTS UNDER SECURE RURAL SCHOOLS AND COM-
MUNITY SELF-DETERMINATION ACT OF 2000.—
‘‘(1) AVAILABILITY
OF
FUNDS.—Subject to 
paragraph (2), but notwithstanding any other provi-
sion of this section, $50,000,000 of OCS Receipts 
shall be available to the Secretary of the Treasury 
for each of fiscal years 2007 through 2012 to make 
payments under sections 102 and 103 of the Secure 
Rural Schools and Community Self-Determination
125
Act of 2000 (Public Law 106–393; 16 U.S.C. 500 
note). The Secretary of the Treasury shall use the 
funds made available by this subsection to make 
such payments in lieu of using funds in the Treas-
ury not otherwise appropriated, as otherwise author-
ized by sections 102(b)(3) and 103(b)(2) of such 
Act. 
‘‘(2) CONDITION ON AVAILABILITY.—OCS Re-
ceipts shall be available under paragraph (1) for a 
fiscal year only if—
‘‘(A) title I of the Secure Rural Schools 
and Community Self-Determination Act of 
2000 has been reauthorized through at least 
that fiscal year; and 
‘‘(B) the authority to initiate projects 
under titles II and III of such Act has been ex-
tended through at least that fiscal year.’’. 
SEC. 29. SENSE OF THE CONGRESS TO BUY AND BUILD 
AMERICAN. 
(a) BUY AND BUILD AMERICAN.—It is the intention 
of the Congress that this Act, among other things, result 
in a healthy and growing American industrial, manufac-
turing, transportation, and service sector employing the 
vast talents of America’s workforce to assist in the devel-
opment of affordable energy from the Outer Continental
126
Shelf. Moreover, the Congress intends to monitor the de-
ployment of personnel and material in the Outer Conti-
nental Shelf to encourage the development of American 
technology and manufacturing to enable United States 
workers to benefit from this Act by good jobs and careers, 
as well as the establishment of important industrial facili-
ties to support expanded access to American resources. 
(b) SAFEGUARD FOR EXTRAORDINARY ABILITY.—
Section 30(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘regulations which’’ and insert-
ing ‘‘regulations that shall be supplemental and com-
plimentary with and under no circumstances a substi-
tution for the provisions of the Constitution and laws of 
the United States extended to the subsoil and seabed of 
the outer Continental Shelf pursuant to section 4(a)(1) 
of this Act, except insofar as such laws would otherwise 
apply to individuals who have extraordinary ability in the 
sciences, arts, education, or business, which has been dem-
onstrated by sustained national or international acclaim, 
and that’’.
127
SEC. 30. AVAILABILITY OF OCS RECEIPTS TO PROVIDE 
FUNDS FOR TRANSPORTATION INFRASTRUC-
TURE OF THE NATION’S CAPITAL. 
Section 9 of the Outer Continental Shelf Lands Act 
(43. U.S.C. 1338) is further amended by adding at the 
end the following new subsection: 
‘‘(k) AVAILABILITY OF FUNDS FOR IMPROVEMENTS 
TO THE TRANSPORTATION INFRASTRUCTURE OF THE NA-
TION’S CAPITAL.—Notwithstanding any other provision of 
this section, $150,000,000 of OCS Receipts shall be avail-
able to the Secretary of the Treasury for each of fiscal 
years 2007 through 2016 to make payments, subject to 
appropriations, to the Washington Metropolitan Area 
Transit Authority (as defined in the National Capital 
Transportation Act of 1969) (sec. 9—1111.01 et seq., 
D.C. Official Code) to finance in part the capital and pre-
ventive maintenance projects included in the Capital Im-
provement Program approved by the Board of Directors 
of the Washington Metropolitan Area Transit Authority.
Passed the House of Representatives June 29, 2006. 
Attest:
Clerk.
109TH CONGRESS 
2D SESSION 
H. R. 4761
AN ACT 
To provide for exploration, development, and pro-
duction activities for mineral resources on the 
outer Continental Shelf, and for other purposes.