(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under 
this title, the Secretary shall prepare an environ-
mental impact statement under the National Envi-
ronmental Policy Act of 1969 with respect to the ac-
tions authorized by this title that are not referred to 
in paragraph (2). Notwithstanding any other law, 
the Secretary is not required to identify nonleasing 
alternative courses of action or to analyze the envi-
ronmental effects of such courses of action. The Sec-
retary shall only identify a preferred action for such 
leasing and a single leasing alternative, and analyze 
the environmental effects and potential mitigation 
measures for those two alternatives. The identifica-
tion of the preferred action and related analysis for 
the first lease sale under this title shall be completed 
within 18 months after the date of the enactment of 
this Act. The Secretary shall only consider public 
comments that specifically address the Secretary’s 
preferred action and that are filed within 20 days 
after publication of an environmental analysis. Not-
withstanding any other law, compliance with this 
paragraph is deemed to satisfy all requirements for 
the analysis and consideration of the environmental 
effects of proposed leasing under this title.
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this title shall be considered to expand 
or limit State and local regulatory authority. 
(e) SPECIAL AREAS.— 
(1) IN
GENERAL.—The Secretary, after con-
sultation with the State of Alaska, the city of 
Kaktovik, and the North Slope Borough, may des-
ignate up to a total of 45,000 acres of the Coastal 
Plain as a Special Area if the Secretary determines 
that the Special Area is of such unique character 
and interest so as to require special management 
and regulatory protection. The Secretary shall des-
ignate as such a Special Area the Sadlerochit Spring 
area, comprising approximately 4,000 acres as de-
picted on the map referred to in section 102(1). 
(2) MANAGEMENT.—Each such Special Area 
shall be managed so as to protect and preserve the 
area’s unique and diverse character including its 
fish, wildlife, and subsistence resource values. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.—The Secretary may exclude any Spe-
cial Area from leasing. If the Secretary leases a Spe-
cial Area, or any part thereof, for purposes of oil 
and gas exploration, development, production, and
related activities, there shall be no surface occu-
pancy of the lands comprising the Special Area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
the other provisions of this subsection, the Secretary 
may lease all or a portion of a Special Area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the area. 
(f) LIMITATION
ON
CLOSED
AREAS.—The Sec-
retary’s sole authority to close lands within the Coastal 
Plain to oil and gas leasing and to exploration, develop-
ment, and production is that set forth in this title. 
(g) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this title, including rules and regulations relating 
to protection of the fish and wildlife, their habitat, 
subsistence resources, and environment of the Coast-
al Plain, by no later than 15 months after the date 
of the enactment of this Act. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, if appropriate, 
revise the rules and regulations issued under sub-
section (a) to reflect any significant biological, envi-
ronmental, or engineering data that come to the Sec-
retary’s attention.
SEC. 104. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this title to any person qualified to obtain a lease for de-
posits of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after such nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
(c) LEASE SALE BIDS.—Bidding for leases under 
this title shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this title, the Secretary shall offer for 
lease those tracts the Secretary considers to have the 
greatest potential for the discovery of hydrocarbons, tak-
ing into consideration nominations received pursuant to 
subsection (b)(1), but in no case less than 200,000 acres. 
(e) TIMING
OF
LEASE
SALES.—The Secretary 
shall—
(1) conduct the first lease sale under this title 
within 22 months after the date of the enactment of 
this Act; and 
(2) conduct additional sales so long as sufficient 
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales. 
SEC. 105. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—The Secretary may grant to the 
highest responsible qualified bidder in a lease sale con-
ducted pursuant to section 104 any lands to be leased on 
the Coastal Plain upon payment by the lessee of such 
bonus as may be accepted by the Secretary. 
(b) SUBSEQUENT
TRANSFERS.—No lease issued 
under this title may be sold, exchanged, assigned, sublet, 
or otherwise transferred except with the approval of the 
Secretary. Prior to any such approval the Secretary shall 
consult with, and give due consideration to the views of, 
the Attorney General. 
SEC. 106. LEASE TERMS AND CONDITIONS. 
(a) IN GENERAL.—An oil or gas lease issued pursu-
ant to this title shall— 
(1) provide for the payment of a royalty of not 
less than 121⁄2 percent in amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary under the regulations appli-
cable to other Federal oil and gas leases; 
(2) provide that the Secretary may close, on a 
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect 
caribou calving areas and other species of fish and 
wildlife; 
(3) require that the lessee of lands within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of lands within the Coastal Plain 
and any other Federal lands that are adversely af-
fected in connection with exploration, development, 
production, or transportation activities conducted 
under the lease and within the Coastal Plain by the 
lessee or by any of the subcontractors or agents of 
the lessee; 
(4) provide that the lessee may not delegate or 
convey, by contract or otherwise, the reclamation re-
sponsibility and liability to another person without 
the express written approval of the Secretary; 
(5) provide that the standard of reclamation for 
lands required to be reclaimed under this title shall 
be, as nearly as practicable, a condition capable of 
supporting the uses which the lands were capable of 
supporting prior to any exploration, development, or
production activities, or upon application by the les-
see, to a higher or better use as approved by the 
Secretary; 
(6) contain terms and conditions relating to 
protection of fish and wildlife, their habitat, and the 
environment 
as 
required 
pursuant 
to 
section 
103(a)(2); 
(7) provide that the lessee, its agents, and its 
contractors use best efforts to provide a fair share, 
as determined by the level of obligation previously 
agreed to in the 1974 agreement implementing sec-
tion 29 of the Federal Agreement and Grant of 
Right of Way for the Operation of the Trans-Alaska 
Pipeline, of employment and contracting for Alaska 
Natives and Alaska Native Corporations from 
throughout the State; 
(8) prohibit the export of oil produced under 
the lease; and 
(9) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with the provisions of this title and the regulations 
issued under this title. 
(b) PROJECT LABOR AGREEMENTS.—The Secretary, 
as a term and condition of each lease under this title and 
in recognizing the Government’s proprietary interest in
labor stability and in the ability of construction labor and 
management to meet the particular needs and conditions 
of projects to be developed under the leases issued pursu-
ant to this title and the special concerns of the parties 
to such leases, shall require that the lessee and its agents 
and contractors negotiate to obtain a project labor agree-
ment for the employment of laborers and mechanics on 
production, maintenance, and construction under the 
lease. 
SEC. 107. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
The Secretary shall, consistent with the requirements of 
section 103, administer the provisions of this title through 
regulations, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that— 
(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain 
will result in no significant adverse effect on fish 
and wildlife, their habitat, and the environment; 
(2) require the application of the best commer-
cially available technology for oil and gas explo-
ration, development, and production on all new ex-
ploration, development, and production operations; 
and
(3) ensure that the maximum amount of sur-
face acreage covered by production and support fa-
cilities, including airstrips and any areas covered by 
gravel berms or piers for support of pipelines, does 
not exceed 2,000 acres on the Coastal Plain. 
(b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 
The Secretary shall also require, with respect to any pro-
posed drilling and related activities, that— 
(1) a site-specific analysis be made of the prob-
able effects, if any, that the drilling or related activi-
ties will have on fish and wildlife, their habitat, and 
the environment; 
(2) a plan be implemented to avoid, minimize, 
and mitigate (in that order and to the extent prac-
ticable) any significant adverse effect identified 
under paragraph (1); and 
(3) the development of the plan shall occur 
after consultation with the agency or agencies hav-
ing jurisdiction over matters mitigated by the plan. 
(c) REGULATIONS
TO PROTECT COASTAL PLAIN 
FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 
AND THE ENVIRONMENT.—Before implementing the leas-
ing program authorized by this title, the Secretary shall 
prepare and promulgate regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, and other
measures designed to ensure that the activities undertaken 
on the Coastal Plain under this title are conducted in a 
manner consistent with the purposes and environmental 
requirements of this title. 
(d) COMPLIANCE WITH FEDERAL AND STATE ENVI-
RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 
proposed regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations for the leasing program 
under this title shall require compliance with all applicable 
provisions of Federal and State environmental law and 
shall also require the following: 
(1) Standards at least as effective as the safety 
and environmental mitigation measures set forth in 
items 1 through 29 at pages 167 through 169 of the 
‘‘Final Legislative Environmental Impact State-
ment’’ (April 1987) on the Coastal Plain. 
(2) Seasonal limitations on exploration, develop-
ment, and related activities, where necessary, to 
avoid significant adverse effects during periods of 
concentrated fish and wildlife breeding, denning, 
nesting, spawning, and migration. 
(3) That exploration activities, except for sur-
face geological studies, be limited to the period be-
tween approximately November 1 and May 1 each 
year and that exploration activities shall be sup-
ported by ice roads, winter trails with adequate snow 
cover, ice pads, ice airstrips, and air transport meth-
ods, except that such exploration activities may 
occur at other times, if the Secretary finds that such 
exploration will have no significant adverse effect on 
the fish and wildlife, their habitat, and the environ-
ment of the Coastal Plain. 
(4) Design safety and construction standards 
for all pipelines and any access and service roads, 
that— 
(A) minimize, to the maximum extent pos-
sible, adverse effects upon the passage of mi-
gratory species such as caribou; and 
(B) minimize adverse effects upon the flow 
of surface water by requiring the use of cul-
verts, bridges, and other structural devices. 
(5) Prohibitions on public access and use on all 
pipeline access and service roads. 
(6) Stringent reclamation and rehabilitation re-
quirements, consistent with the standards set forth 
in this title, requiring the removal from the Coastal 
Plain of all oil and gas development and production 
facilities, structures, and equipment upon completion 
of oil and gas production operations, except that the 
Secretary may exempt from the requirements of this
paragraph those facilities, structures, or equipment 
that the Secretary determines would assist in the 
management of the Arctic National Wildlife Refuge 
and that are donated to the United States for that 
purpose. 
(7) Appropriate prohibitions or restrictions on 
access by all modes of transportation. 
(8) Appropriate prohibitions or restrictions on 
sand and gravel extraction. 
(9) Consolidation of facility siting. 
(10) Appropriate prohibitions or restrictions on 
use of explosives. 
(11) Avoidance, to the extent practicable, of 
springs, streams, and river system; the protection of 
natural surface drainage patterns, wetlands, and ri-
parian habitats; and the regulation of methods or 
techniques for developing or transporting adequate 
supplies of water for exploratory drilling. 
(12) Avoidance or reduction of air traffic-re-
lated disturbance to fish and wildlife. 
(13) Treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
muds and cuttings, and domestic wastewater, includ-
ing an annual waste management report, a haz-
ardous materials tracking system, and a prohibition
on chlorinated solvents, in accordance with applica-
ble Federal and State environmental law. 
(14) Fuel storage and oil spill contingency plan-
ning. 
(15) Research, monitoring, and reporting re-
quirements. 
(16) Field crew environmental briefings. 
(17) Avoidance of significant adverse effects 
upon subsistence hunting, fishing, and trapping by 
subsistence users. 
(18) Compliance with applicable air and water 
quality standards. 
(19) Appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited. 
(20) Reasonable stipulations for protection of 
cultural and archeological resources. 
(21) All other protective environmental stipula-
tions, restrictions, terms, and conditions deemed 
necessary by the Secretary. 
(e) CONSIDERATIONS.—In preparing and promul-
gating regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations under this section, the Sec-
retary shall consider the following:
(1) The stipulations and conditions that govern 
the National Petroleum Reserve-Alaska leasing pro-
gram, as set forth in the 1999 Northeast National 
Petroleum Reserve-Alaska Final Integrated Activity 
Plan/Environmental Impact Statement. 
(2) The environmental protection standards 
that governed the initial Coastal Plain seismic explo-
ration program under parts 37.31 to 37.33 of title 
50, Code of Federal Regulations. 
(3) The land use stipulations for exploratory 
drilling on the KIC–ASRC private lands that are set 
forth in Appendix 2 of the August 9, 1983, agree-
ment between Arctic Slope Regional Corporation and 
the United States. 
(f) FACILITY CONSOLIDATION PLANNING.— 
(1) IN GENERAL.—The Secretary shall, after 
providing for public notice and comment, prepare 
and update periodically a plan to govern, guide, and 
direct the siting and construction of facilities for the 
exploration, development, production, and transpor-
tation of Coastal Plain oil and gas resources. 
(2) OBJECTIVES.—The plan shall have the fol-
lowing objectives: 
(A) Avoiding unnecessary duplication of fa-
cilities and activities.
(B) Encouraging consolidation of common 
facilities and activities. 
(C) Locating or confining facilities and ac-
tivities to areas that will minimize impact on 
fish and wildlife, their habitat, and the environ-
ment. 
(D) Utilizing existing facilities wherever 
practicable. 
(E) Enhancing compatibility between wild-
life values and development activities. 
(g) ACCESS
TO PUBLIC LANDS.—The Secretary 
shall— 
(1) manage public lands in the Coastal Plain 
subject to subsections (a) and (b) of section 811 of 
the Alaska National Interest Lands Conservation 
Act (16 U.S.C. 3121); and 
(2) ensure that local residents shall have rea-
sonable access to public lands in the Coastal Plain 
for traditional uses. 
SEC. 108. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINT.— 
(1) DEADLINE.—Subject to paragraph (2), any 
complaint seeking judicial review of any provision of 
this title or any action of the Secretary under this
title shall be filed in any appropriate district court 
of the United States— 
(A) except as provided in subparagraph 
(B), within the 90-day period beginning on the 
date of the action being challenged; or 
(B) in the case of a complaint based solely 
on grounds arising after such period, within 90 
days after the complainant knew or reasonably 
should have known of the grounds for the com-
plaint. 
(2) VENUE.—Any complaint seeking judicial re-
view of an action of the Secretary under this title 
may be filed only in the United States Court of Ap-
peals for the District of Columbia. 
(3) LIMITATION
ON
SCOPE
OF
CERTAIN
RE-
VIEW.—Judicial review of a Secretarial decision to 
conduct a lease sale under this title, including the 
environmental analysis thereof, shall be limited to 
whether the Secretary has complied with the terms 
of this title and shall be based upon the administra-
tive record of that decision. The Secretary’s identi-
fication of a preferred course of action to enable 
leasing to proceed and the Secretary’s analysis of 
environmental effects under this title shall be pre-
sumed to be correct unless shown otherwise by clear 
and convincing evidence to the contrary. 
(b) LIMITATION ON OTHER REVIEW.—Actions of the 
Secretary with respect to which review could have been 
obtained under this section shall not be subject to judicial 
review in any civil or criminal proceeding for enforcement. 
SEC. 109. FEDERAL AND STATE DISTRIBUTION OF REVE-
NUES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, of the amount of adjusted bonus, rental, and 
royalty revenues from oil and gas leasing and operations 
authorized under this title— 
(1) 50 percent shall be paid to the State of 
Alaska; and 
(2) except as provided in section 112(d) and 
title II, the balance shall be deposited into the 
Treasury as miscellaneous receipts. 
(b) PAYMENTS TO ALASKA.—Payments to the State 
of Alaska under this section shall be made semiannually. 
SEC. 110. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 
(a) EXEMPTION.—Title XI of the Alaska National In-
terest Lands Conservation Act of 1980 (16 U.S.C. 3161 
et seq.) shall not apply to the issuance by the Secretary 
under section 28 of the Mineral Leasing Act (30 U.S.C.
185) of rights-of-way and easements across the Coastal 
Plain for the transportation of oil and gas. 
(b) TERMS AND CONDITIONS.—The Secretary shall 
include in any right-of-way or easement referred to in sub-
section (a) such terms and conditions as may be necessary 
to ensure that transportation of oil and gas does not result 
in a significant adverse effect on the fish and wildlife, sub-
sistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be 
sited or designed so as to avoid unnecessary duplication 
of roads and pipelines. 
(c) REGULATIONS.—The Secretary shall include in 
regulations under section 103(g) provisions granting 
rights-of-way and easements described in subsection (a) 
of this section. 
SEC. 111. CONVEYANCE. 
In order to maximize Federal revenues by removing 
clouds on title to lands and clarifying land ownership pat-
terns within the Coastal Plain, the Secretary, notwith-
standing the provisions of section 1302(h)(2) of the Alas-
ka National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), shall convey— 
(1) to the Kaktovik Inupiat Corporation the 
surface estate of the lands described in paragraph 1 
of Public Land Order 6959, to the extent necessary
to fulfill the Corporation’s entitlement under section 
12 of the Alaska Native Claims Settlement Act (43 
U.S.C. 1611) in accordance with the terms and con-
ditions of the Agreement between the Department of 
the Interior, the United States Fish and Wildlife 
Service, the Bureau of Land Management, and the 
Kaktovik Inupiat Corporation effective January 22, 
1993; and 
(2) to the Arctic Slope Regional Corporation 
the remaining subsurface estate to which it is enti-
tled pursuant to the August 9, 1983, agreement be-
tween the Arctic Slope Regional Corporation and the 
United States of America. 
SEC. 112. LOCAL GOVERNMENT IMPACT AID AND COMMU-
NITY SERVICE ASSISTANCE. 
(a) FINANCIAL ASSISTANCE AUTHORIZED.— 
(1) IN
GENERAL.—The Secretary may use 
amounts available from the Coastal Plain Local Gov-
ernment Impact Aid Assistance Fund established by 
subsection (d) to provide timely financial assistance 
to entities that are eligible under paragraph (2) and 
that are directly impacted by the exploration for or 
production of oil and gas on the Coastal Plain under 
this title.
(2) ELIGIBLE
ENTITIES.—The North Slope 
Borough, Kaktovik, and other boroughs, municipal 
subdivisions, villages, and any other community or-
ganized under Alaska State law shall be eligible for 
financial assistance under this section. 
(b) USE
OF
ASSISTANCE.—Financial assistance 
under this section may be used only for— 
(1) planning for mitigation of the potential ef-
fects of oil and gas exploration and development on 
environmental, social, cultural, recreational and sub-
sistence values; 
(2) implementing mitigation plans and main-
taining mitigation projects; 
(3) developing, carrying out, and maintaining 
projects and programs that provide new or expanded 
public facilities and services to address needs and 
problems associated with such effects, including fire-
fighting, police, water, waste treatment, medivac, 
and medical services; and 
(4) establishment of a coordination office, by 
the North Slope Borough, in the City of Kaktovik, 
which shall— 
(A) coordinate with and advise developers 
on local conditions, impact, and history of the 
areas utilized for development; and
(B) provide to the Committee on Resources 
of the Senate and the Committee on Energy 
and Resources of the Senate an annual report 
on the status of coordination between devel-
opers and the communities affected by develop-
ment. 
(c) APPLICATION.— 
(1) IN GENERAL.—Any community that is eligi-
ble for assistance under this section may submit an 
application for such assistance to the Secretary, in 
such form and under such procedures as the Sec-
retary may prescribe by regulation. 
(2) NORTH SLOPE BOROUGH COMMUNITIES.—A 
community located in the North Slope Borough may 
apply for assistance under this section either directly 
to the Secretary or through the North Slope Bor-
ough. 
(3) APPLICATION ASSISTANCE.—The Secretary 
shall work closely with and assist the North Slope 
Borough and other communities eligible for assist-
ance under this section in developing and submitting 
applications for assistance under this section. 
(d) ESTABLISHMENT OF FUND.—
(1) IN GENERAL.—There is established in the 
Treasury the Coastal Plain Local Government Im-
pact Aid Assistance Fund. 
(2) USE.—Amounts in the fund may be used 
only for providing financial assistance under this 
section. 
(3) DEPOSITS.—Subject to paragraph (4), there 
shall be deposited into the fund amounts received by 
the United States as revenues derived from rents, 
bonuses, and royalties under on leases and lease 
sales authorized under this title. 
(4) LIMITATION
ON
DEPOSITS.—The total 
amount in the fund may not exceed $11,000,000. 
(5) INVESTMENT
OF
BALANCES.—The Sec-
retary of the Treasury shall invest amounts in the 
fund in interest bearing government securities. 
(e) AUTHORIZATION OF APPROPRIATIONS.—To pro-
vide financial assistance under this section there is author-
ized to be appropriated to the Secretary from the Coastal 
Plain Local Government Impact Aid Assistance Fund 
$5,000,000 for each fiscal year.
TITLE II—ABANDONED MINE 
LANDS RECLAMATION REFORM 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Abandoned Mine 
Lands Reclamation Reform Act of 2004’’. 
SEC. 202. AMENDMENTS TO SURFACE MINING ACT. 
(a) AMENDMENTS
TO SECTION 401.—(1) Section 
401 of the Surface Mining Control and Reclamation Act 
of 1977 (30 U.S.C. 1231) is amended as follows: 
(A) In subsection (c) by striking paragraphs (2) 
and (6) and redesignating paragraphs (3) through 
(13) in order as paragraphs (2) through (11). 
(B) In subsection (e)— 
(i) in the second sentence, by striking ‘‘the 
needs of such fund’’ and inserting ‘‘achieving 
the purposes of the payments under section 
402(h)’’; and 
(ii) in the third sentence, by inserting be-
fore the period the following: ‘‘for the purpose 
of the payments under section 402(h)’’. 
(2) Section 712(b) of the Surface Mining Con-
trol and Reclamation Act of 1977 (30 U.S.C. 
1302(b)) 
is 
amended 
by 
striking 
‘‘section 
401(c)(11)’’ and inserting ‘‘section 401(c)(9)’’.
(b) AMENDMENTS TO SECTION 402.—Section 402 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1232) is amended as follows: 
(1) In subsection (a)— 
(A) by striking ‘‘35’’ and inserting ‘‘28’’; 
(B) by striking ‘‘15’’ and inserting ‘‘12’’; 
and 
(C) by striking ‘‘10 cents’’ and inserting 
‘‘8 cents’’. 
(2) In subsection (b) by striking ‘‘2004’’ and all 
that follows through the end of the sentence and in-
serting ‘‘2019.’’. 
(3) In subsection (g)(1)(D) by striking ‘‘in any 
area under paragraph (2), (3), (4), or (5)’’ and in-
serting ‘‘under paragraph (5)’’. 
(4) Subsection (g)(2) is amended to read as fol-
lows: 
‘‘(2) In making the grants referred to in para-
graph (1)(C) and the grants referred to in para-
graph (5), the Secretary shall ensure strict compli-
ance by the States and Indian tribes with the prior-
ities set forth in section 403(a) until a certification 
is made under section 411(a).’’. 
(5) In subsection (g)(3)—
(A) in the matter preceding subparagraph 
(A) by striking ‘‘paragraphs (2) and’’ and in-
serting ‘‘paragraph’’; 
(B) in subparagraph (A) by striking 
‘‘401(c)(11)’’ and inserting ‘‘401(c)(9)’’; and 
(C) by adding at the end the following: 
‘‘(E) For the purpose of paragraph (8).’’. 
(6) In subsection (g)(5)— 
(A) by inserting ‘‘(A)’’ before the first sen-
tence; 
(B) in the first sentence by striking ‘‘40’’ 
and inserting ‘‘60’’; 
(C) in the last sentence by striking ‘‘Funds 
allocated or expended by the Secretary under 
paragraphs (2), (3), or (4),’’ and inserting 
‘‘Funds made available under paragraph (3) or 
(4)’’; and 
(D) by adding at the end the following: 
‘‘(B) Any amount that is reallocated and available 
under section 411(h)(3) shall be in addition to amounts 
that are allocated under subparagraph (A).’’. 
(7) Subsection (g)(6) is amended to read as fol-
lows: 
‘‘(6)(A) Any State with an approved abandoned mine 
reclamation program pursuant to section 405 may receive
and retain, without regard to the 3-year limitation re-
ferred to in paragraph (1)(D), up to 10 percent of the 
total of the grants made annually to such State under 
paragraphs (1) and (5) if such amounts are deposited into 
an acid mine drainage abatement and treatment fund es-
tablished under State law, from which amounts (together 
with all interest earned on such amounts) are expended 
by the State for the abatement of the causes and the treat-
ment of the effects of acid mine drainage in a comprehen-
sive manner within qualified hydrologic units affected by 
coal mining practices. 
‘‘(B) For the purposes of this paragraph, the term 
‘qualified hydrologic unit’ means a hydrologic unit— 
‘‘(i) in which the water quality has been signifi-
cantly affected by acid mine drainage from coal min-
ing practices in a manner that adversely impacts bi-
ological resources; and 
‘‘(ii) that contains lands and waters that are— 
‘‘(I) eligible pursuant to section 404 and 
include any of the priorities set forth in section 
403(a); and 
‘‘(II) the subject of expenditures by the 
State from the forfeiture of bonds required 
under section 509 or from other States sources 
to abate and treat acid mine drainage.’’.
(8) Subsection (g)(7) is amended to read as fol-
lows: 
‘‘(7) In complying with the priorities set forth in sec-
tion 403(a), any State or Indian tribe may use amounts 
available in grants made annually to such State or tribe 
under paragraphs (1) and (5) for the reclamation of eligi-
ble lands and waters set forth in section 403(a)(3) prior 
to the completion of reclamation projects under para-
graphs (1) and (2) of section 403(a) only if the expendi-
ture of funds for such reclamation is done in conjunction 
with the expenditure of funds for reclamation projects 
under paragraphs (1) and (2) of section 403(a).’’. 
(9) Subsection (g)(8) is amended to read as fol-
lows: 
‘‘(8) In making the grants referred to in paragraph 
(1)(C), the Secretary, using amounts allocated to a State 
or Indian tribe under subparagraphs (A) or (B) of para-
graph (1) or as necessary amounts available to the Sec-
retary under paragraph (3), shall assure total grant 
awards of not less than $2,000,000 annually to each 
State, including Tennessee, and each Indian tribe.’’. 
(10) By amending subsection (h) to read as fol-
lows: 
‘‘(h) PAYMENT
OF FUNDS
FOR BENEFIT PAY-
MENTS.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, at the beginning of each fis-
cal year, the Secretary of the Interior shall pay from 
the fund— 
‘‘(A) the amount described in paragraph 
(3) for such year to the Combined Fund, 
‘‘(B) the amount described in paragraph 
(4) for such year to the 1992 Plan, and 
‘‘(C) the amount described in paragraph 
(5) for such year to the 1993 Plan. 
‘‘(2) PAYMENTS MAY NOT EXCEED AGGREGATE 
INTEREST
RECEIVED
BY
FUND.—The aggregate 
amount paid under paragraph (1) for any fiscal year 
shall not exceed the lesser of— 
‘‘(A) the excess of— 
‘‘(i) the aggregate interest received by 
the fund during all preceding fiscal years, 
over 
‘‘(ii) the aggregate payments made 
under paragraph (1) for all preceding fis-
cal years, or 
‘‘(B) the unobligated balance of the fund 
as of the close of the preceding fiscal year. 
‘‘(3) PAYMENTS TO COMBINED FUND.—
‘‘(A) IN GENERAL.—The amount described 
in this paragraph for any fiscal year is an 
amount equal to the sum of— 
‘‘(i) the estimated expenditures to be 
debited against the unassigned bene-
ficiaries premium account under section 
9704(e) of the Internal Revenue Code of 
1986 for such fiscal year, plus 
‘‘(ii) the estimated amount needed to 
offset the amount of any deficit (as of the 
close of the preceding fiscal year) in net 
assets in the Combined Fund. 
‘‘(B) CERTAIN PRE-2001 PREMIUMS.— 
‘‘(i) IN GENERAL.—The amount de-
scribed in this paragraph (without regard 
to this subparagraph) for fiscal year 2004 
shall be increased by $36,000,000. 
‘‘(ii) REFUNDS.—Not later than Jan-
uary 31, 2005, the trustees of the Com-
bined Fund shall pay to each coal industry 
operator described in clause (iii) (and to 
each related person with respect to such an 
operator) an amount equal to the aggre-
gate amount paid by such operator (or 
such related person) to the Combined
Fund on or before September 7, 2000, and 
not previously refunded or credited, plus 
interest on such amount calculated at the 
rate of 7.5 percent per year. The aggregate 
amount paid under this subparagraph shall 
not exceed $36,000,000. 
‘‘(iii) COAL INDUSTRY OPERATOR DE-
SCRIBED.—A coal industry operator is de-
scribed in this clause if— 
‘‘(I) the operator’s beneficiary as-
signments have been voided by the 
Commissioner of the Social Security 
Administration; and 
‘‘(II) the operator brought an ac-
tion prior to September 7, 2000, 
claiming that the assignment of bene-
ficiaries under section 9706 of the In-
ternal Revenue Code of 1986 was un-
constitutional as applied to such oper-
ator and received a final judgment or 
final settlement against such claim. 
‘‘(4) PAYMENTS TO 1992 PLAN.—The amount 
described in this paragraph for any fiscal year is an 
amount equal to the excess of—
‘‘(A) the estimated expenditures from the 
1992 Plan during such fiscal year to provide 
benefits required under section 9712(c) of such 
Code, over 
‘‘(B) the estimated receipts of the 1992 
Plan for such fiscal year from payments re-
quired under paragraphs (1)(B) and (3) of sec-
tion 9712(d) of such Code and from any secu-
rity provided to the 1992 Plan pursuant to sec-
tion 9712(d)(1)(C) of such Code that is avail-
able for use in the provision of benefits. 
‘‘(5) PAYMENTS TO 1993 PLAN.— 
‘‘(A) IN GENERAL.—The amount described 
in this paragraph for any fiscal year is an 
amount equal to the excess of— 
‘‘(i) the estimated expenditures from 
the 1993 Plan during such fiscal year to 
continue to provide benefits at levels no 
greater than those in effect on the date of 
enactment of this paragraph, under the eli-
gibility criteria in effect on the date of en-
actment of this paragraph, over 
‘‘(ii) the estimated income of the 1993 
Plan for such fiscal year.
‘‘(B) LIMITATION.—A payment shall not 
be made under this paragraph for any fiscal 
year unless the entities that are obligated as of 
the beginning of such fiscal year to contribute 
to the 1993 Plan remain obligated throughout 
such year to make such contributions at rates 
that are no less than those in effect on the date 
of enactment of this paragraph. 
‘‘(6) ORDERING RULES WHERE SPECIFIED PAY-
MENTS EXCEED LIMITATION.— 
‘‘(A) IN GENERAL.—Amounts shall be paid 
under paragraphs (4) and (5) for any fiscal 
year only to the extent that the limitation under 
paragraph (2) for such year exceeds the sum 
of— 
‘‘(i) the estimated payments to be 
made under paragraph (3) for such year, 
and 
‘‘(ii) the estimated payments to be 
made under paragraph (3) for the suc-
ceeding fiscal year. 
‘‘(B) PROPORTIONAL
REDUCTION.—Pay-
ments under paragraphs (4) and (5) shall be 
proportionally reduced to the extent the full
amount of such payments may not be made by 
reason of subparagraph (A). 
‘‘(7) ESTIMATES AND ADJUSTMENTS.— 
‘‘(A) 
ESTIMATES.—Estimated 
amounts 
with respect to any fund or plan shall be made 
by the trustees thereof. 
‘‘(B) ADJUSTMENTS.—If, for any fiscal 
year, the amount paid under parragraph (3), 
(4), or (5) is more or less than the amount re-
quired to be paid, the Secretary of the Interior 
shall appropriately adjust the amount paid 
under that paragraph for the next fiscal year. 
‘‘(8) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) COMBINED FUND.—The term ‘Com-
bined Fund’ means the United Mine Workers of 
America Combined Benefit Fund established 
under section 9702 of the Internal Revenue 
Code of 1986. 
‘‘(B) 1992 PLAN.—The term ‘1992 Plan’ 
means the United Mine Workers of America 
1992 Benefit Plan established under section 
9712 of such Code. 
‘‘(C) 1993 PLAN.—The term ‘1993 Plan’ 
means the multiemployer health benefit plan es-
tablished after July 20, 1992, by the persons 
referred to in section 9701(b)(2) of such 
Code.’’. 
(c) AMENDMENTS TO SECTION 403.—Section 403 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1233(a)) is amended as follows: 
(1) In subsection (a)— 
(A) in paragraph (1) by striking ‘‘general 
welfare,’’; 
(B) in paragraph (2) by striking ‘‘health, 
safety, and general welfare’’ and inserting 
‘‘health and safety’’, and inserting ‘‘and’’ after 
the semicolon at the end; 
(C) in paragraph (3) by striking the semi-
colon at the end and inserting a period; and 
(D) by striking paragraphs (4) and (5). 
(2) In subsection (b)— 
(A) by striking the heading and inserting 
‘‘Water Supply Restoration.—’’; and 
(B) in paragraph (1) by striking ‘‘up to 30 
percent of the’’. 
(3) In subsection (c) by inserting ‘‘, subject to 
the approval of the Secretary,’’ after ‘‘amendments’’. 
(d) AMENDMENT TO SECTION 406.—Section 406(h) 
of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1236(h)) is amended by striking ‘‘Soil 
Conservation Service’’ and inserting ‘‘Natural Resources 
Conservation Service’’. 
(e) FURTHER AMENDMENT TO SECTION 406.—Sec-
tion 406 of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1236) is amended by adding at 
the end the following: 
‘‘(i) There is authorized to be appropriated to the 
Secretary of Agriculture, from amounts in the Treasury 
other than amounts in the fund, such sums as may be 
necessary to carry out this section.’’. 
(f) AMENDMENT TO SECTION 408.—Section 408(a) 
of the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1238) is amended by striking ‘‘who 
owned the surface prior to May 2, 1977, and’’. 
(g) AMENDMENTS TO SECTION 411.—Section 411 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1240a) is amended as follows: 
(1) In subsection (a) by inserting ‘‘(1)’’ before 
the first sentence, and by adding at the end the fol-
lowing: 
‘‘(2) The Secretary may, on the Secretary’s own voli-
tion, make the certification referred to in paragraph (1) 
on behalf of any State or Indian tribe referred to in para-
graph (1) if on the basis of the inventory referred to in
section 403(c) all reclamation projects relating to the pri-
orities set forth in section 403(a) for eligible lands and 
water pursuant to section 404 in such State or tribe have 
been completed. The Secretary shall only make such cer-
tification after notice in the Federal Register and oppor-
tunity for public comment.’’. 
(2) By adding at the end the following: 
‘‘(h) STATE
SHARE
FOR
CERTAIN
CERTIFIED 
STATES.—(1)(A) From moneys referred to in subsection 
(a) of section 35 of the Mineral Leasing Act (30 U.S.C. 
191(a)) that are paid into the Treasury after the date of 
the enactment of this subsection and that are not paid 
to States under section 35 of the Mineral Leasing Act or 
reserved as part of the reclamation fund under such sec-
tion, the Secretary of the Interior shall pay to each quali-
fied State, on a proportional basis, an amount equal to 
the sum of the aggregate unappropriated amount allocated 
to such qualified State under section 402(g)(1)(A). 
‘‘(B) In this paragraph the term ‘qualified State’ 
means a State for which a certification is made under sub-
section (a) and in which there are public domain lands 
available for leasing under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
‘‘(2) Payments to States under this subsection shall 
be made, without regard to any limitation in section
401(d), in the same manner as if paid under section 35 
of the Mineral Leasing Act (30 U.S.C. 191) and concur-
rently with payments to States under that section. The 
funds distributed under this section shall be referred to 
as the ‘Cubin-Thomas Mineral Fund’. 
‘‘(3) The amount allocated to any State under section 
402(g)(1)(A) that is paid to such State as a result of a 
payment under paragraph (1) of this subsection shall be 
reallocated and available for grants under section 
402(g)(5).’’. 
SEC. 203. USE OF REVENUES FROM COASTAL PLAIN. 
(a) USE OF REVENUES.—Title IV of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1231 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 415. USE OF REVENUES FROM COASTAL PLAIN OF 
ALASKA. 
‘‘(a) COAL MINING FAIRNESS FUND.—There is es-
tablished in the Treasury a separate account to be known 
as the ‘Coal Mining Fairness Fund’ (hereafter in this sec-
tion referred to as the ‘Account’). 
‘‘(b) APPROPRIATIONS TO ACCOUNT.— 
‘‘(1) IN GENERAL.—There are hereby appro-
priated to the Account amounts equivalent to the 
amounts received by the United States as bonuses,
rents, or royalties from the exploration, development, 
and production of the oil and gas resources of the 
Coastal Plain, that are not required to be otherwise 
paid or deposited under section 109(a) or 112(d) of 
the Arctic Coastal Plain Domestic Energy Security 
Act of 2004. 
‘‘(2) REPAYABLE ADVANCES.— 
‘‘(A) IN GENERAL.—There are hereby ap-
propriated to the Account for each fiscal year 
as a repayable advance an amount equal to the 
excess (if any) of— 
‘‘(i) the expenditures required under 
subsection (c) for such year, over 
‘‘(ii) the amount appropriated by 
paragraph (1) for such year. 
‘‘(B) REPAYMENT OF ADVANCES.— 
‘‘(i) IN GENERAL.—Advances made to 
the Account shall be repaid, and interest 
on such advances shall be paid, to the gen-
eral fund of the Treasury when the Sec-
retary of the Interior determines that mon-
eys are available for such purposes in the 
Account. 
‘‘(ii) FINAL
REPAYMENT.—No ad-
vance shall be made to the Account after
December 31, 2007, and all advances to 
the Account shall be repaid on or before 
September 30, 2009. 
‘‘(C) RATE OF INTEREST.—Interest on ad-
vances made to the Account shall be at a rate 
determined by the Secretary of the Treasury 
(as of the close of the calendar month preceding 
the month in which the advance is made) to be 
equal to the current average market yield on 
outstanding marketable obligations of the 
United States with remaining periods to matu-
rity comparable to the anticipated period during 
which the advance will be outstanding and shall 
be compounded annually. 
‘‘(c) EXPENDITURES.— 
‘‘(1) COMBINED FUND.—The Secretary of the 
Interior shall pay from the Account to the Combined 
Fund amounts necessary (after the payments under 
section 402(h)) to meet the obligations of the Com-
bined Fund. 
‘‘(2) REFUNDS OF 2004 PREMIUMS, ETC.—Not 
later than December 1, 2004, the Secretary of the 
Interior shall pay from the Account to each specified 
person an amount equal to the amount of premiums
or assigned operator contributions paid by such per-
son for fiscal year 2004. 
‘‘(3) PREMIUMS, ETC. OTHERWISE
PAYABLE 
AFTER 2004.— 
‘‘(A) IN GENERAL.—At the beginning of 
each fiscal year after fiscal year 2004, the Sec-
retary of the Interior shall pay from the Ac-
count to the Combined Fund an amount equal 
to the amount of premiums or assigned oper-
ator contributions which would (but for sub-
paragraph (B)) be required to be paid by speci-
fied persons for such fiscal year. 
‘‘(B) WAIVER OF LIABILITY.—For waiver 
of liability for amounts paid under subpara-
graph (A), see section 9704(j) of the Internal 
Revenue Code of 1986. 
‘‘(4) 1992 PLAN.—The Secretary of the Interior 
shall pay from the Account to the 1992 Plan (as de-
fined in section 402(h)) amounts necessary (after 
the appropriations under section 402(h)) to pay the 
amounts described in section 402(h)(4). 
‘‘(5) 1993 PLAN.—The Secretary of the Interior 
shall pay from the Account to the 1993 Plan 
amounts necessary (after the appropriations under
section 402(h)) to pay the amounts described in sec-
tion 402(h)(5). 
‘‘(6) QUALIFIED STATES.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Interior shall pay from the Account to each 
qualified State an amount equal to the sum of 
the aggregate unappropriated amount allocated 
to such qualified State under subparagraph (A) 
or (B), as applicable, of section 402(g)(1). 
‘‘(B) REALLOCATION.—The amount allo-
cated to any qualified State under section 
402(g)(1) that is paid to such qualified State as 
a result of a payment under subparagraph (A) 
shall be reallocated and available for grants 
under section 402(g)(5). 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) COASTAL
PLAIN.—The term ‘Coastal 
Plain’ has the meaning given that term in section 
102 of the Arctic Coastal Plain Domestic Energy 
Security Act of 2004. 
‘‘(2) SPECIFIED PERSON.—The term ‘specified 
person’ means an assigned operator (as defined in 
section 9701(c)(5) of the Internal Revenue Code of 
1986), a related person of such assigned operator, 
and a successor-in-interest of such operator or per-
son, if according to the records of the Combined 
Fund such assigned operator— 
‘‘(A) was assessed or is otherwise liable for 
premiums to the Combined Fund in October 
2001, and 
‘‘(B) was not— 
‘‘(i) a signatory to the 1988 or any 
later National Bituminous Coal Wage 
Agreement, 
‘‘(ii) a signatory to an agreement 
(other than the National Coal Mine Con-
struction Agreement or the Coal Haulers’ 
Agreement) containing pension and health 
care contribution and benefit provisions 
that are identical to those contained in the 
1988 National Bituminous Coal Wage 
Agreement, or 
‘‘(iii) an employer from which con-
tributions were actually received after 
1987 and before July 20, 1992, by the 
1950 United Mine Workers of America 
Benefit Plan Benefit Plan or the 1974 
United Mine Workers of America Benefit 
Plan in connection with employment in the 
coal industry during the period covered by
the 1988 National Bituminous Coal Wage 
Agreement. 
‘‘(3) COMBINED FUND.—The term ‘Combined 
Fund’ means the United Mine Workers of America 
of America Combined Benefit Fund established 
under section 9702 of the Internal Revenue Code of 
1986. 
‘‘(4) QUALIFIED STATE.—The term ‘qualified 
State’ means a State— 
‘‘(A) for which a certification is made 
under subsection 411(a); and 
‘‘(B) in which there are no public domain 
lands, in the case of a State.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in the first section of such Act is amended by inserting 
after the item relating to section 414 the following: 
‘‘415. Use of revenues from Coastal Plain of Alaska.’’. 
SEC. 204. PROVISIONS RELATING TO THE IMPLEMENTA-
TION OF THIS TITLE. 
(a) TRANSITION RULES.—(1) Amounts allocated 
under section 402(g)(2) of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1232(g)(2)) (ex-
cluding interest) prior to the date of enactment of this 
Act for the program set forth under section 406 of that 
Act (30 U.S.C. 1236), but not appropriated prior to such 
date, shall be available in fiscal year 2005 and thereafter
for the payments referred to in paragraph (1)(A) of sec-
tion 402(h) of such Act (30 U.S.C. 1232(h)), as amended 
by this Act, in the same manner as are other amounts 
available for such payments, to the extent necessary to 
meet the obligations of the Combined Fund (as that term 
is used in that section). 
(2) Notwithstanding any other provision of law, inter-
est credited to the fund established by section 401 of the 
Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1231) that is not transferred to the Combined 
Fund referred to in section 402(h) of such Act (30 U.S.C. 
1232(h)), as amended by this Act, prior to the date of 
enactment of this Act shall be available in fiscal year 2004 
and thereafter for the payments referred to in paragraph 
(1)(A) of section 402(h) of such Act (30 U.S.C. 1232(h)), 
as amended by this Act, in the same manner as are other 
amounts available for such payments, to the extent nec-
essary to meet the obligations of the Combined Fund. 
(b) INVENTORY.—Within one year after the date of 
enactment of this Act, the Secretary of the Interior shall 
complete a review of all additions made, pursuant to 
amendments offered by States and Indians tribes after 
December 31, 1998, to the inventory referred to in section 
403(c) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1233(c)) to ensure that such addi-
tions reflect eligible lands and waters pursuant to section 
404 of such Act (30 U.S.C. 1234) that meet the priorities 
set forth in paragraphs (1) and (2) of section 403(a) of 
such Act (30 U.S.C. 1233(a)(1) and (2)), and are cor-
rectly identified pursuant to such priorities. Any lands or 
waters that were included in the inventory pursuant to the 
general welfare standard set forth in section 403(a) of 
such Act (30 U.S.C. 1233(a)) before the date of enact-
ment of this Act that are determined in the review to no 
longer meet the criteria set forth in paragraphs (1) and 
(2) of section 403(a) of such Act, as amended by this Act, 
shall be removed from the inventory. 
(c) CLARIFICATION.—For the purposes of section 
528(2) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1278(2)), the term ‘‘government- 
financed’’ shall not include funds made available under 
title IV of such Act. 
(d) PAYMENT OF TRIBAL ALLOCATION.—(1) Not-
withstanding any other provision of law and by not later 
than December 31, 2004, the Secretary of the Interior 
shall use amounts allocated under section 402(g)(2) of the 
Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1232(g)(2)) (excluding interest) prior to the date 
of enactment of this Act for the program set forth under 
section 406 of that Act (30 U.S.C. 1236), but not appro-
priated prior to such date, to pay an amount determined 
in accordance with paragraph (2) to any Indian tribe that 
has made the certification referred to in section 411 of 
the Surface Mining Control and Reclamation Act of 1977 
(30 U.S.C. 1240a). 
(2) The payment to an Indian tribe under paragraph 
(1) shall be proportional to the sum of the aggregate unap-
propriated amount allocated to such tribe under section 
402(g)(1)(B) of such Act (43 U.S.C. 1232(g)(1)(B)), and 
shall be made in lieu of payment of such aggregate allo-
cated amount. 
(3) The total amount of payments under this sub-
section shall be $41,502,991. 
(e) REMINING.— 
(1) 
EXTENSION
OF
AUTHORITY.—Section 
511(e) of the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1260(e)) is amended by 
striking ‘‘2004’’ and inserting ‘‘2019’’. 
(2) SAVINGS CLAUSE.—Except as provided in 
paragraph (1), nothing in this section shall be con-
sidered to modify or amend any provision of law gov-
erning coal remining. 
(f) ENSURING AVAILABILITY OF MINERAL LEASING 
ACT REVENUES.—Section 949(a)(1) of the Energy Policy
Act of 2003 is amended by inserting ‘‘(A)’’ before the first 
sentence, and by adding at the end the following: 
‘‘(B) Amounts derived from leases issued under 
the Mineral Leasing Act shall be deposited under 
subparagraph (A) for a fiscal year only to the extent 
that amounts derived from leases issued under the 
Outer Continental Shelf Lands Act and available for 
such deposit for the fiscal year (after distribution of 
any such funds as described in subsection (c)) are 
less than $150,000,000.’’. 
TITLE III—AMENDMENTS OF IN-
TERNAL REVENUE CODE OF 
1986 
SEC. 301. WAIVER OF PREMIUMS FOR CERTAIN OPERA-
TORS. 
(a) IN GENERAL.—Section 9704 of the Internal Rev-
enue Code of 1986 (relating to liability of assigned opera-
tors) is amended by adding at the end the following new 
subsection: 
‘‘(j) WAIVER OF PREMIUMS FOR CERTAIN OPERA-
TORS.—No premium shall be required to be paid under 
this section to the extent of the amount of such premium 
which is paid under section 415 of the Surface Mining 
Control and Reclamation Act of 1977.’’.
(b) USE
OF AMOUNTS PAID FROM ABANDONED 
MINE RECLAMATION FUND.—Paragraph (2) of section 
9705(b) of such Code is amended to read as follows: 
‘‘(2) USE OF FUNDS.—Any amount transferred 
under paragraph (1) for any fiscal year shall be used 
as provided in such section 402(h) (as in effect on 
the date of the enactment of the Abandoned Mine 
Lands Reclamation Reform Act of 2004).’’. 
SEC. 302. PREPAYMENT OF PREMIUM LIABILITY FOR COAL 
INDUSTRY HEALTH BENEFITS. 
(a) IN GENERAL.—Section 9704 of the Internal Rev-
enue Code of 1986 (relating to liability of assigned opera-
tors) is amended by adding at the end the following new 
subsection: 
‘‘(j) PREPAYMENT OF PREMIUM LIABILITY.— 
‘‘(1) IN GENERAL.—If— 
‘‘(A) a payment meeting the requirements 
of paragraph (j)(2) is made to the Combined 
Fund by or on behalf of any assigned operator 
who is a member of a controlled group of cor-
porations (within the meaning of section 52(a)), 
or by or on behalf of any related person to any 
assigned operator within that controlled group 
of corporations; and
‘‘(B) the common parent of such group is 
jointly and severally liable for any premium 
which would (but for this subsection) be re-
quired to be paid by any such operator, then no 
person (other than such common parent) shall 
be liable for any premium for which any oper-
ator within that controlled group of corpora-
tions would otherwise be liable. 
‘‘(2) REQUIREMENTS.—A payment meets the 
requirements of this paragraph if— 
‘‘(A) the amount of the payment is not less 
than the present value of the total premium li-
ability of the assigned operator or operators 
within that controlled group of corporations for 
its or their assignees under this chapter with 
respect to the Combined Fund (as determined 
by the operator’s enrolled actuary, as defined in 
section 7701(a)(35)), using actuarial methods 
and assumptions each of which is reasonable 
and which are reasonable in the aggregate, as 
determined by such enrolled actuary; 
‘‘(B) a signed actuarial report is filed with 
the Secretary of Labor by such enrolled actuary 
containing—
‘‘(i) the date of the actuarial valuation 
applicable to the report; and 
‘‘(ii) a statement by the enrolled actu-
ary signing the report that to the best of 
the actuary’s knowledge the report is com-
plete and accurate and that in the actu-
ary’s opinion the actuarial assumptions 
used are in the aggregate reasonably re-
lated to the experience of the operator and 
to reasonable expectations; and 
‘‘(C) 30 calendar days have elapsed after 
the report required by subparagraph (B), and 
the description required by subparagraph (C), 
are filed with the Secretary of Labor, and the 
Secretary of Labor has not notified the as-
signed operator in writing that the require-
ments of this paragraph have not been satisfied. 
‘‘(3) USE
OF
PREPAYMENT.—The Combined 
Fund shall establish and maintain an account for 
each assigned operator making such payment or on 
behalf of which such payment was made (with earn-
ings thereon) and use all amounts in such account 
exclusively to pay premium that would (but for this 
subsection) be required to be paid by the assigned 
operator. Upon termination of the obligations for
premium liability of any assigned operator for which 
such account is maintained, all funds remaining in 
such account (and earnings thereon) shall be re-
funded to such entity as may be designated by the 
common parent described in paragraph (1)(B).’’. 
(b) JOINT AND SEVERAL LIABILITY OF RELATED 
PERSONS.—Section 9711(c) of such Code is amended to 
read as follows: 
‘‘(c) JOINT AND SEVERAL LIABILITY OF RELATED 
PERSONS.— 
‘‘(1) Each related person of a last signatory op-
erator to which subsection (a) or (b) applies shall be 
jointly and severally liable with the last signatory op-
erator for the provision of health care coverage de-
scribed in subsection (a) or (b), provided, however, 
that an assigned operator who is a last signatory op-
erator under section 9711 and a member of a con-
trolled group of corporations (within the meaning of 
section 52(a)) or a related person to any assigned 
operator within that controlled group of corpora-
tions, that has met the requirements of section 
9704(j) (1) and (2) and has provided security de-
scribed in paragraph 9711(c)(2), shall be relieved of 
all such joint and several liability as of the date 
upon which such requirements are met, provided,
however, that the common parent of such controlled 
group of corporations shall remain liable for the pro-
vision of benefits required to be provided under sub-
section (a) or (b). 
‘‘(2) Security meets the requirements of this 
paragraph if— 
‘‘(A) the security (in the form of a bond, 
letter of credit or cash escrow) is provided to 
the trustees of the 1992 UMWA Benefit Plan, 
solely for the purpose of paying premiums for 
beneficiaries described in section 9712(b)(2)(B), 
equal in amount to 1 year’s liability of the last 
signatory operator under section 9711, deter-
mined by using the average cost of such opera-
tor’s liability during its prior 3 calendar years; 
‘‘(B) the security is in addition to any 
other security required under any other provi-
sion of this Act; and 
‘‘(C) the security remains in place for 5 
years. 
‘‘(3) Upon termination of the obligations of the 
last signatory operator providing such security or 
the expiration of 5 years, whichever occurs first, the 
full amount of such security (and earnings thereon) 
shall be refunded to the last signatory operator.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 303. DEFINITION OF SUCCESSOR IN INTEREST. 
(a) IN GENERAL.—Subsection (c) of section 9701 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(8) SUCCESSOR IN INTEREST.— 
‘‘(A) SAFE HARBOR.—The term ‘successor 
in interest’ shall not include any person— 
‘‘(i) who is an unrelated person to a 
seller; and 
‘‘(ii) who purchases for fair market 
value assets, or all the stock of a related 
person, in a bona fide, arm’s-length sale 
which is subject to section 5 of the Securi-
ties Act of 1933 (15 U.S.C. 77f et seq.) or 
the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.). 
‘‘(B) UNRELATED
PERSON.—The term 
‘unrelated person’ means a purchaser who does 
not bear a relationship to the seller described in 
section 267(b).’’.
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to transactions after the date 
of the enactment of this Act. 
Æ