SEC. 405. 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 404 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. 406. 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; 
VerDate Mar 15 2010 
07:34 Nov 19, 2011
Jkt 019200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3487.IH
H3487
smartinez on DSK6TPTVN1PROD with BILLS
(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, subsist-
ence resources, and the environment as required 
pursuant to section 403(a)(2); 
VerDate Mar 15 2010 
07:34 Nov 19, 2011
Jkt 019200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3487.IH
H3487
smartinez on DSK6TPTVN1PROD with BILLS
(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 
VerDate Mar 15 2010 
07:34 Nov 19, 2011
Jkt 019200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H3487.IH
H3487
smartinez on DSK6TPTVN1PROD with BILLS
production, maintenance, and construction under the 
lease. 
SEC. 407. 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 403, 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. 
VerDate Mar 15 2010 
07:34 Nov 19, 2011
Jkt 019200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H3487.IH
H3487
smartinez on DSK6TPTVN1PROD with BILLS
(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, sub-
sistence resources, 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. 
VerDate Mar 15 2010 
07:34 Nov 19, 2011
Jkt 019200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H3487.IH
H3487
smartinez on DSK6TPTVN1PROD with BILLS