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’’. 
SEC. 23. REPEAL OF THE GULF OF MEXICO ENERGY SECU-
RITY ACT OF 2006. 
The Gulf of Mexico Energy Security Act of 2006 is 
repealed effective October 1, 2009, except the Secretary 
of the Interior shall make any payments to State and local 
governments based on fiscal year 2009 receipts under the 
Gulf of Mexico Energy Security Act of 2006. 
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SEC. 24. ROYALTY-IN-KIND. 
Section 27 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1353) is amended as follows: 
(1) By striking paragraph (3) of subsection (a) 
and replacing it with the following: 
‘‘(3) Title to any royalty or net profit share oil 
or gas from leases issued under this Act or the Min-
eral Leasing Act may not be transferred by the Sec-
retary to another Federal Government agency except 
by sale for cash at fair market value. If not pur-
chased by another Federal Government agency, such 
oil and gas must be sold under subsections (b), (c), 
or (d). Proceeds from sales under this section shall 
be treated as offsetting receipts and shall be subject 
to any receipts sharing provisions applicable to the 
leases from which the in-kind royalty or net profit 
share production was produced in the same manner 
as if it had been paid in value. After payment of 
such shared receipts to State and local governments, 
the Secretary shall deposit the remainder of the re-
ceipts from sales into the Treasury of the United 
States and they shall be credited to miscellaneous 
receipts.’’. 
(2) In the first sentence of subsection (d) strike 
‘‘transferred’’ and insert ‘‘sold’’. 
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SEC. 25. MANDATORY ISSUANCE OF REGULATIONS PRO-
MOTING 
PRODUCTION 
OF 
NATURAL 
GAS 
FROM GAS HYDRATES. 
(a) Section 353 of the Energy Policy Act of 2005 (42 
U.S.C. 15909) is amended as follows: 
(1) In subsection (b)(1) strike ‘‘may’’ and in-
sert ‘‘shall’’. 
(2) In subsection (b)(3) in the first sentence 
strike ‘‘if the Secretary determines that such royalty 
relief would encourage production’’. 
(3) In subsection (b)(4) by inserting at the end 
‘‘when the price of natural gas on NYMEX (Henry 
Hub) exceeds $6.75/million btu (January 1, 2008 
dollars)’’. 
(b) The Secretary shall issue the final regulations 
under section 353 of the Energy Policy Act of 2005 not 
later than 180 days after the date of enactment of this 
Act. 
SEC. 26. MANDATORY ISSUANCE OF REGULATIONS PRO-
MOTING ENHANCED OIL AND NATURAL GAS 
PRODUCTION THROUGH CARBON DIOXIDE 
INJECTION. 
(a) Subsection (b)(1) of section 354 of the Energy 
Policy Act of 2005 (42 U.S.C. 15910) is amended to read 
as follows: 
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‘‘(1) IN GENERAL.—The Secretary shall under-
take a rulemaking to provide for reduction of the 
royalty under a Federal oil and gas lease that is an 
eligible lease.’’. 
(b) The Secretary shall issue the final regulations 
under section 354 of the Energy Policy Act of 2005 not 
later than 180 days after enactment of this Act. 
SEC. 27. MINIMUM RENTAL RATES FOR FUTURE OIL, GAS, 
AND COAL FEDERAL LEASES. 
Effective upon the date of enactment of this Act, the 
minimum annual rental rate for oil and gas, oil shale, tar 
sands, and coal leases issued after that date shall be no 
less than $4.00 per acre for the first 5 years, and increas-
ing by $1 per acre/per year for each thereafter until the 
lessee begins to pay royalties for leases under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.), the Mineral Leasing 
Act for Acquired Lands (30 U.S.C. 351 et seq.), the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), and 
any other statute that provides for the leasing of lands 
and waters owned and/or controlled by the Federal Gov-
ernment for mineral exploration and production. Any in-
creased rental receipts under this section shall be treated 
as offsetting receipts. 
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