retary of Defense, the Secretary of Energy, and the 
Secretary of the Interior (in this subsection referred 
to collectively as ‘‘the Secretaries’’) shall, in con-
sultation with affected States, complete a study of— 
(A) congestion and constraints in trans-
mission of electricity, oil, gas, and hydrogen; 
(B) barriers to access for transmission 
from renewable energy sources, such as wind 
energy and solar energy; and 
(C) the need for energy corridors on public 
lands to address identified congestion or con-
straints. 
(2) 
CONSIDERATIONS.—In 
performing 
the 
study, the Secretaries— 
(A) shall take into account the studies of 
electrical transmission congestion completed 
under section 216(a)(1) of the Federal Power 
Act (16 U.S.C. 824(p)(a)(1)), other projects 
authorized or under consideration on public 
lands and such projects outside public lands, 
and alternatives, individually and in concert, 
that could be implemented to address the needs 
identified, including an analysis of demand re-
duction, available new technology, and distrib-
uted generation measures that could be taken; 
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(B) shall not consider as available for des-
ignation as corridors, any area that is— 
(i) within one mile of any place des-
ignated or otherwise identified by State or 
Federal law or any applicable Federal, 
State, or local government land use plan 
for recognition or protection of scenic, nat-
ural, cultural, or historic resources; 
(ii) within one mile of any place pro-
posed for formal protection similar to that 
described in subparagraph (A), in any 
pending Federal, State, or local legislation; 
or 
(iii) in a sensitive ecological area, in-
cluding any area that is designated as crit-
ical habitat under the Endangered Species 
Act of 1973 or otherwise identified as sen-
sitive or crucial habitat, including seasonal 
habitat, by the United States Fish and 
Wildlife Service, by a State agency respon-
sible for managing wildlife or wildlife habi-
tat, or in a Federal, State, or local land 
use plan; 
(C) identify opportunities to mitigate to 
the maximum extent practicable the potential 
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impact of designating energy corridors, and of 
the reasonably foreseeable uses of those cor-
ridors for power lines, pipelines, and other 
transmission facilities, on natural, scenic, cul-
tural, and historic values and areas referred to 
in subparagraph (B), the protection of which is 
in the national interest, including opportunities 
to minimize the width of corridors, limiting the 
types and numbers of uses of corridors, and 
placement of facilities underground; and 
(D) identify opportunities to improve ac-
cess to the national electric power grid for gen-
erators of renewable energy, such as wind and 
solar. 
(3) UPDATES.—The Secretaries shall periodi-
cally update the results of the study as they consider 
appropriate. 
(4) REPORTS.—After considering recommenda-
tions from interested persons (including an oppor-
tunity for comment from the public and affected 
States), the Secretaries shall issue— 
(A) a report presenting the results of the 
study; and 
(B) a report on each update of the study 
under paragraph (3). 
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(c) DEFERRAL OF DESIGNATION OF ENERGY COR-
RIDORS PENDING COMPLETION OF STUDY.— 
(1) LIMITATION ON ACTIONS PENDING COMPLE-
TION
OF
STUDY.—The Secretaries shall not des-
ignate energy corridors on public lands, including 
those corridors under consideration based on section 
368 of the Energy Policy Act of 2005 as in effect 
prior to repeal under this Act, and shall not author-
ize specific rights-of-way or projects in such cor-
ridors, until the study under section 2 is completed. 
(2) USE
OF
STUDY
RESULTS
FOR
ACTIONS 
AFTER COMPLETION OF STUDY.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), after completion of the study under 
subsection (b), the Secretaries may use the re-
sults of the study to inform subsequent deci-
sions to grant rights-of-way, including under 
title V of the Federal Land Policy and Manage-
ment Act of 1976 (43 U.S.C. 1761 et seq.), and 
to amend land use plans to designate energy 
corridors or authorize rights-of-way, in any area 
for which no such designation or authorization 
currently exists. 
(B) LIMITATION ON USE.—The results of 
the study shall not affect the Secretaries’ obli-
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gations to analyze the environmental con-
sequences of a designation or authorization re-
ferred to in subparagraph (A), or to otherwise 
comply with applicable laws. 
SEC. 104. OIL SHALE AND TAR SANDS LEASING. 
Section 369 of the Energy Policy Act of 2005 (42 
U.S.C. 15927) is amended— 
(1) in subsection (c), by striking ‘‘not later than 
180 days after the date of enactment of this Act,’’; 
(2) in subsection (c), by striking ‘‘shall make’’ 
and inserting ‘‘may make’’; 
(3) in subsection (d)(1), by striking ‘‘Not later 
than 18 months after the date of enactment of this 
Act, in’’ and inserting ‘‘In’’; 
(4) in subsection (d)(2)— 
(A) in the heading by striking ‘‘Final’’ and 
inserting ‘‘Proposed’’; and 
(B) in the text by striking ‘‘final’’ and in-
serting ‘‘proposed’’; 
(5) in subsection (d)(2), by striking ‘‘6’’ and in-
serting ‘‘12’’; 
(6) in subsection (d)(2) by inserting after the 
period ‘‘The proposed regulations developed under 
this paragraph are to be open for public comment 
for no less than 180 days.’’; 
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(7) by redesignating subsections (e) through (s) 
as subsections (g) through (u), and by inserting 
after subsection (d) the following: 
‘‘(e) OIL SHALE AND TAR SANDS LEASING AND DE-
VELOPMENT STRATEGY.— 
‘‘(1) GENERAL.—Not later than 6 months after 
the completion of the programmatic environmental 
impact statement under subsection (d), the Sec-
retary shall prepare an oil shale and tar sands leas-
ing and development strategy, in cooperation with 
the Secretary of Energy and the Administrator of 
the Environmental Protection Agency. 
‘‘(2) PURPOSE.—The purpose of the strategy 
developed under this subsection is to allow for the 
sustainable and publicly acceptable large-scale devel-
opment of oil shale within the Green River Forma-
tion. 
‘‘(3) CONTENTS.—The strategy shall include 
plans and programs for obtaining information re-
quired for determining the optimal methods, loca-
tions, amount, and timeframe for potential develop-
ment on federal lands within the Green River For-
mation. The strategy shall also include plans for 
conducting critical environmental and ecological re-
search, high-payoff process improvement research, 
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an assessment of carbon management options, and a 
large-scale demonstration of carbon dioxide seques-
tration in the general vicinity of the Piceance Basin. 
‘‘(f) ALTERNATIVE APPROACHES.—Not later than 
nine months after the completion of the programmatic en-
vironmental impact statement under subsection (d), the 
Secretary shall, in cooperation with the Secretary of En-
ergy and the Administrator of the Environmental Protec-
tion Agency, prepare and publish a report on alternative 
approaches to providing access to Federal lands for early 
first-of-a-kind commercial facilities for extracting and 
processing oil shale and tar sands.’’; 
(8) in subsection (g), as so redesignated, by 
striking ‘‘of the final regulation required by sub-
section (d)’’ and inserting ‘‘of final regulations 
issued under this section’’; 
(9) in subsection (g), as so redesignated, by 
adding at the end the following: ‘‘Compliance with 
the National Environmental Policy Act of 1969 is 
required on a site-by-site basis for all lands proposed 
to be leased under the commercial leasing program 
established in this subsection.’’; and 
(10) in subsection (i)(1)(B), as so redesignated, 
by striking ‘‘subsection (e)’’ and inserting ‘‘sub-
section (g)’’. 
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SEC. 105. REPEAL OF REBUTTABLE PRESUMPTION RE-
GARDING APPLICATION OF CATEGORICAL 
EXCLUSION UNDER NEPA FOR OIL AND GAS 
EXPLORATION AND DEVELOPMENT ACTIVI-
TIES. 
The Energy Policy Act of 2005 is amended— 
(1) by repealing section 390 (42 U.S.C. 15942); 
and 
(2) in section 1(b) by striking the item relating 
to that section. 
SEC. 106. BEST MANAGEMENT PRACTICES. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary of the Interior, through the Bu-
reau of Land Management, shall amend the best manage-
ment practices guidelines for oil and gas development on 
Federal lands, to— 
(1) require public review and comment prior to 
waiving any stipulation of an oil and gas lease for 
such lands; and 
(2) create an incentive for oil and gas operators 
to adopt best management practices by providing ex-
pedited permit review for any operator that commits 
to adhering to those practices without seeking waiver 
of such stipulations. 
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SEC. 107. FEDERAL CONSISTENCY APPEALS. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Federal Consistency Appeals Decision Refinement Act’’. 
(b) CLARIFICATION OF APPEAL DECISION TIME PE-
RIODS AND INFORMATION REQUIREMENTS.—Section 319 
of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1465) is amended— 
(1) in subsection (b)(1), by striking ‘‘160-day’’ 
and inserting ‘‘320-day’’; 
(2) in paragraph (3)(A), by amending clause 
(ii) to read as follows: 
‘‘(ii) as the Secretary determines nec-
essary to receive, on an expedited basis, 
any supplemental or clarifying information 
relevant to the consolidated record com-
piled by the lead Federal permitting agen-
cy to complete a consistency review under 
this title.’’; and 
(3) in paragraph (3)(B)— 
(A) by striking ‘‘160-day’’ and inserting 
‘‘320-day’’; and 
(B) by striking ‘‘for a period not to exceed 
60 days.’’ and inserting ‘‘once.’’. 
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TITLE 
II—FEDERAL 
ENERGY 
PUBLIC ACCOUNTABILITY, IN-
TEGRITY, AND PUBLIC INTER-
EST 
Subtitle A—Accountability and In-
tegrity in the Federal Energy 
Program 
SEC. 201. LIMITATIONS ON ROYALTY IN-KIND. 
Section 342 of the Energy Policy Act of 2005 (42 
U.S.C. 15902(d)) is amended— 
(1) in subsection (d)— 
(A) in the heading by striking ‘‘Benefit’’ 
and inserting ‘‘Filling of Strategic Petroleum 
Reserve and benefit’’; and 
(B) by striking ‘‘only if’’ and inserting 
‘‘only if receiving such royalties in-kind is for 
the purpose of filling the Strategic Petroleum 
Reserve and’’; and 
(2) by adding at the end: 
‘‘(k) LIMITATION.— 
‘‘(1) IN
GENERAL.—No amount of the total 
amount of royalties collected by the Secretary in a 
fiscal year may be collected as royalties in-kind. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply with respect to royalties in-kind collected for 
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the purpose of filling the Strategic Petroleum Re-
serve.’’. 
SEC. 202. AUDITS. 
(a) REQUIREMENT TO INCREASE THE NUMBER OF 
AUDITS.—The Secretary of the Interior shall ensure that 
by fiscal year 2009 the Minerals Management Service 
shall perform no less that 550 audits of oil and gas leases 
each fiscal year. 
(b) STANDARDS.—Not later than 120 days after the 
date of enactment of this Act, the Secretary of the Interior 
shall issue regulations that require that all employees that 
conduct audits or compliance reviews must meet profes-
sional auditor qualifications that are consistent with the 
latest revision of the Government Auditing Standards pub-
lished by the Government Accountability Office. Such reg-
ulations shall also ensure that all audits conducted by the 
Department of the Interior are performed in accordance 
with such standards. 
SEC. 203. FINES AND PENALTIES. 
(a) SANCTIONS FOR VIOLATIONS RELATING TO FED-
ERAL OIL AND GAS ROYALTIES.—Section 109 of the Fed-
eral Oil and Gas Royalty Management Act of 1982 (30 
U.S.C. 1719) is amended to read as follows: 
‘‘CIVIL PENALTIES 
‘‘SEC. 109. (a) ROYALTY VIOLATIONS.—(1) No per-
son shall— 
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‘‘(A) after due notice of violation or after such 
violation has been reported under paragraph (3)(A), 
fail or refuse to comply with any requirement of any 
mineral leasing law or any regulation, order, lease, 
or permit under such a law; 
‘‘(B) fail or refuse to make any royalty pay-
ment in the amount or value required by any min-
eral leasing law or any regulation, order, or lease 
under such a law; 
‘‘(C) fail or refuse to make any royalty payment 
by the date required by any mineral leasing law or 
any regulation, order, or lease under such a law; or 
‘‘(D) prepare, maintain, or submit any false, in-
accurate, or misleading report, notice, affidavit, 
record, data, or other written information or filing 
related to royalty payments that is required under 
any mineral leasing law or regulation issued under 
any mineral leasing law. 
‘‘(2) A person who violates paragraph (1) shall be lia-
ble— 
‘‘(A) in the case of a violation of subparagraph 
(B) or (C) of paragraph (1) for an amount equal to 
3 times the royalty the person fails or refuses to 
pay, plus interest on that trebled amount measured 
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from the first date the royalty payment was due; 
and 
‘‘(B) in the case of any violation, for a civil 
penalty of $25,000 per violation for each day the 
violation continues. 
‘‘(3) Paragraph (2) shall not apply to a violation of 
paragraph (1) if the person who commits the violation, 
within 30 days of the violation— 
‘‘(A) reports the violation to the Secretary or a 
representative designated by the Secretary; and 
‘‘(B) corrects the violation. 
‘‘(b) LEASE
ADMINISTRATION
VIOLATIONS.—Any 
person who— 
‘‘(1) fails to notify the Secretary of— 
‘‘(A) any designation by the person under 
section 102(a); or 
‘‘(B) any other assignment of obligations 
or responsibilities of the person under a lease; 
‘‘(2) fails or refuses to permit— 
‘‘(A) lawful entry; 
‘‘(B) inspection, including any inspection 
authorized by section 108; or 
‘‘(C) audit, including any failure or refusal 
to promptly tender requested documents; 
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‘‘(3) fails or refuses to comply with subsection 
102(b)(3) (relating to notification regarding begin-
ning or resumption of production); or 
‘‘(4) fails to correctly report and timely provide 
operations or financial records necessary for the Sec-
retary or any authorized designee of the Secretary to 
accomplish lease management responsibilities, 
shall be liable for a penalty of up to $10,000 per violation 
for each day such violation continues. 
‘‘(c) THEFT.—Any person who— 
‘‘(1) knowingly or willfully takes or removes, 
transports, uses or diverts any oil or gas from any 
lease site without having valid legal authority to do 
so; or 
‘‘(2) purchases, accepts, sells, transports, or 
conveys to another, any oil or gas knowing or having 
reason to know that such oil or gas was stolen or 
unlawfully removed or diverted, 
shall be liable for a penalty of up to $25,000 per violation 
for each day such violation continues without correction. 
‘‘(d) REPEATED VIOLATIONS.—(1)(A) If the Sec-
retary or an authorized designee of the Secretary deter-
mines that any person has repeatedly violated subsection 
(a), (b), or (c), the Secretary or designee shall notify the 
person of the violation and demand compliance. 
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‘‘(B) A person notified pursuant to subparagraph (A) 
shall correct the violations by not later than 30 calendar 
days after the date of the notification. 
‘‘(C) Any person who fails to comply with a demand 
under subparagraph (A) shall be liable to the United 
States for a civil penalty equal to 3 times the amount of 
any civil penalty that otherwise applies under subsection 
(a), (b), or (c) to the violations to which the demand re-
lates. 
‘‘(2) In addition to the penalty provided in paragraph 
(1)(C), if the Secretary determines that any person has 
repeatedly violated subsection (a), (b), or (c) or any lease 
management order, the Secretary may— 
‘‘(A) shut in and cease production of any oil or 
gas lease held by the person; 
‘‘(B) prohibit the person— 
‘‘(i) from acquiring any additional oil or 
gas lease, including by transfer or assignment; 
and 
‘‘(ii) from being designated under section 
102(a) to make payments due under any lease; 
‘‘(C) cancel or transfer any interest in an oil or 
gas lease held by the person; and 
‘‘(D) collect from the person reimbursement, in-
cluding interest, of all costs of release, transfer, or 
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reclamation of lease sites canceled or transferred, in-
cluding costs of disposing of lease property, facili-
ties, and equipment. 
‘‘(e) ADMINISTRATIVE APPEAL.—(1) Any determina-
tion by the Secretary or a designee of the Secretary of 
the amount of any royalties or civil penalties owed under 
subsection (a), (b), (c), or (d) shall be final, unless within 
15 days after notification by the Secretary or designee the 
person liable for such amount files an administrative ap-
peal in accordance with regulations issued by the Sec-
retary. 
‘‘(2) If a person files an administrative appeal pursu-
ant to paragraph (1), the Secretary or designee shall make 
a final determination in accordance with the regulations 
referred to in paragraph (1). 
‘‘(f) DEDUCTION.—The amount of any penalty under 
this section, as finally determined may be deducted from 
any sums owing by the United States to the person 
charged. 
‘‘(g) COMPROMISE AND REDUCTION.—On a case-by- 
case basis the Secretary may compromise or reduce civil 
penalties under this section. 
‘‘(h) NOTICE.—Notice under this subsection (a) shall 
be by personal service by an authorized representative of 
the Secretary or by registered mail. Any person may, in 
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the manner prescribed by the Secretary, designate a rep-
resentative to receive any notice under this subsection. 
‘‘(i) RECORD OF DETERMINATION.—In determining 
the amount of such penalty, or whether it should be remit-
ted or reduced, and in what amount, the Secretary shall 
state on the record the reasons for his determinations. 
‘‘(j) JUDICIAL REVIEW.—Any person who has re-
quested a hearing in accordance with subsection (e) within 
the time the Secretary has prescribed for such a hearing 
and who is aggrieved by a final order of the Secretary 
under this section may seek review of such order in the 
United States district court for the judicial district in 
which the violation allegedly took place. Review by the dis-
trict court shall be only on the administrative record and 
not de novo. Such an action shall be barred unless filed 
within 90 days after the Secretary’s final order. 
‘‘(k) FAILURE TO PAY.—If any person fails to pay 
an assessment of a civil penalty under this Act— 
‘‘(1) after the order making the assessment has 
become a final order and if such person does not file 
a petition for judicial review of the order in accord-
ance with subsection (j), or 
‘‘(2) after a court in an action brought under 
subsection (j) has entered a final judgment in favor 
of the Secretary, 
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the court shall have jurisdiction to award the amount as-
sessed plus interest from the date of the expiration of the 
90-day period referred to in subsection (j). Judgment by 
the court shall include an order to pay. 
‘‘(l) RELATIONSHIP TO MINERAL LEASING ACT.—No 
person shall be liable for a civil penalty under subsection 
(a) or (b) for failure to pay any rental for any lease auto-
matically terminated pursuant to section 31 of the Mineral 
Leasing Act. 
‘‘(m) TOLLING OF STATUTES OF LIMITATION.—(1) 
Any determination by the Secretary or a designee of the 
Secretary that a person has violated subsection (a), (b)(2), 
or (b)(4) shall toll any applicable statute of limitations for 
all oil and gas leases held or operated by such person, until 
the later of— 
‘‘(A) the date on which the person corrects the 
violation and certifies that all violations of a like na-
ture have been corrected for all of the oil and gas 
leases held or operated by such person; or 
‘‘(B) the date a final, nonappealable order has 
been issued by the Secretary or a court of competent 
jurisdiction. 
‘‘(2) A person determined by the Secretary or a des-
ignee of the Secretary to have violated subsection (a), 
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