I 
110TH CONGRESS 
2D SESSION 
H. R. 6001 
To rebalance the United States energy portfolio, to increase and utilize 
the Nation’s domestic energy resources and supply, to strengthen energy 
security and independence, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 8, 2008 
Mr. BUYER (for himself, Mr. COLE of Oklahoma, Mr. GRAVES, Mr. PICK-
ERING, Mr. HAYES, Mr. SHIMKUS, Mr. PENCE, Mr. BURTON of Indiana, 
Mr. KLINE of Minnesota, Mrs. BLACKBURN, Mr. WAMP, Mr. YOUNG of 
Alaska, Mr. HOEKSTRA, Mr. SHUSTER, Mr. MCHENRY, Mr. BARRETT of 
South Carolina, Mr. SOUDER, and Mr. SHADEGG) introduced the fol-
lowing bill; which was referred to the Committee on Natural Resources, 
and in addition to the Committees on Energy and Commerce, Ways and 
Means, Armed Services, and Science and Technology, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To rebalance the United States energy portfolio, to increase 
and utilize the Nation’s domestic energy resources and 
supply, to strengthen energy security and independence, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Main Street U.S.A. Energy Security Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title. 
TITLE I—INCREASE OUR ENERGY CAPACITY 
Subtitle A—Refineries 
Sec. 101. Short title. 
Sec. 102. Definitions. 
Sec. 103. State assistance. 
Sec. 104. Refinery process coordination and procedures. 
Sec. 105. Designation of closed military bases. 
Sec. 106. Savings clause. 
Sec. 107. Refinery revitalization repeal. 
Subtitle B—Oil and Gas Development on the Coastal Plain of Alaska 
Sec. 121 Definitions. 
Sec. 122. Leasing program for lands within the Coastal Plain. 
Sec. 123. Lease sales. 
Sec. 124. Grant of leases by the Secretary. 
Sec. 125. Lease terms and conditions. 
Sec. 126. Coastal plain environmental protection. 
Sec. 127. Expedited judicial review. 
Sec. 128. Federal and State distribution of revenues. 
Sec. 129. Rights-of-way across the Coastal Plain. 
Sec. 130. Conveyance. 
Sec. 131. Local government impact aid and community service assistance. 
Subtitle C—Opening of Outer Continental Shelf 
Sec. 141. Short title. 
Sec. 142. Policy. 
Sec. 143. Definitions under the Outer Continental Shelf Lands Act. 
Sec. 144. Determination of Adjacent Zones and planning areas. 
Sec. 145. Administration of leasing. 
Sec. 146. Grant of leases by Secretary. 
Sec. 147. Disposition of receipts. 
Sec. 148. Reservation of lands and rights. 
Sec. 149. Outer Continental Shelf Leasing Program. 
Sec. 150. Coordination with Adjacent States. 
Sec. 151. Environmental studies. 
Sec. 152. Federal Energy Natural Resources Enhancement Act of 2008. 
Sec. 153. Termination of effect of laws prohibiting the spending of appro-
priated funds for certain purposes. 
Sec. 154. Outer Continental Shelf incompatible use. 
Sec. 155. Repurchase of certain leases. 
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Sec. 156. Offsite environmental mitigation. 
Sec. 157. Minerals Management Service. 
Sec. 158. Authority to use decommissioned offshore oil and gas platforms and 
other facilities for artificial reef, scientific research, or other 
uses. 
Sec. 159. Repeal of requirement to conduct comprehensive inventory of OCS oil 
and natural gas resources. 
Sec. 160. Mining and petroleum schools. 
Sec. 161. Onshore and offshore mineral lease fees. 
Sec. 162. OCS regional headquarters. 
Sec. 163. National Geo Fund Act of 2008. 
Sec. 164. Leases for areas located within 100 miles of California or Florida. 
Sec. 165. Coastal impact assistance. 
Sec. 166. Oil shale and tar sands amendments. 
Sec. 167. Availability of OCS receipts to provide payments under Secure Rural 
Schools and Community Self-Determination Act of 2000. 
Sec. 168. Sense of the Congress to buy and build American. 
Subtitle D—Nuclear 
Sec. 181. Incentives for innovative technologies. 
Sec. 182. Authorization for Nuclear Power 2010 Program. 
Sec. 183. Domestic manufacturing base for nuclear components and equipment. 
Sec. 184. Nuclear energy workforce. 
Sec. 185. National Nuclear Energy Council. 
Sec. 186. Nuclear waste management. 
TITLE II—INCREASE OUR UTILIZATION EFFICIENCY 
Subtitle A—Coal to Liquids 
Sec. 201. Location of coal-to-liquid manufacturing facilities. 
Sec. 202. Authorization to conduct research, development, testing, and evalua-
tion of assured domestic fuels. 
Sec. 203. Coal-to-liquid long-term fuel procurement and Department of Defense 
development. 
Subtitle B—Energy Tax Provisions 
Sec. 211. Short title; amendment of 1986 Code. 
PART 1—PRODUCTION INCENTIVES 
Sec. 221. Extension and modification of renewable energy credit. 
Sec. 222. Production credit for electricity produced from marine renewables. 
Sec. 223. Extension of electricity production tax credit to electricity produced 
from the production of substitute natural gas from refined coal 
or petcoke. 
Sec. 224. Extension and modification of energy credit. 
Sec. 225. New clean renewable energy bonds. 
Sec. 226. Extension and modification of special rule to implement FERC and 
State electric restructuring policy. 
Sec. 227. Extension and modification of credit for residential energy efficient 
property. 
PART 2—TRANSPORTATION CONSERVATION INCENTIVES 
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SUBPART A—VEHICLES 
Sec. 231. Credit for plug-in hybrid vehicles. 
Sec. 232. Extension and modification of alternative fuel vehicle refueling prop-
erty credit. 
Sec. 233. Modification of limitation on automobile depreciation. 
SUBPART B—FUELS 
Sec. 241. Extension and modification of credits for biodiesel and renewable die-
sel. 
Sec. 242. Clarification that credits for fuel are designed to provide an incentive 
for United States production. 
Sec. 243. Credit for production of cellulosic alcohol. 
Sec. 244. Extension for credit for alternative fuels and mixtures derived from 
coal (including peat) through the Fischer-Tropsch process. 
PART 3—OTHER CONSERVATION PROVISIONS 
Sec. 251. Qualified energy conservation bonds. 
Sec. 252. Extension and modification of credit for nonbusiness energy property. 
Sec. 253. Extension of energy efficient commercial buildings deduction. 
Sec. 254. Modifications of energy efficient appliance credit for appliances pro-
duced after 2007. 
Sec. 255. Five-year applicable recovery period for depreciation of qualified en-
ergy management devices. 
Sec. 256. Clarification of eligibility for certain fuels credits for fuel with insuffi-
cient nexus to the United States. 
TITLE III—RESEARCH AND DEVELOPMENT 
Sec. 301. Blended fuels. 
Sec. 302. Cellulosic Ethanol. 
TITLE I—INCREASE OUR 
ENERGY CAPACITY 
Subtitle A—Refineries 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Refinery Permit 
Process Schedule Act’’. 
SEC. 102. DEFINITIONS. 
For purposes of this subtitle— 
(1) the term ‘‘Administrator’’ means the Ad-
ministrator of the Environmental Protection Agency; 
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(2) the term ‘‘applicant’’ means a person who 
is seeking a Federal refinery authorization; 
(3) the term ‘‘biomass’’ has the meaning given 
that term in section 932(a)(1) of the Energy Policy 
Act of 2005; 
(4) the term ‘‘Federal refinery authorization’’— 
(A) means any authorization required 
under Federal law, whether administered by a 
Federal or State administrative agency or offi-
cial, with respect to siting, construction, expan-
sion, or operation of a refinery; and 
(B) includes any permits, licenses, special 
use authorizations, certifications, opinions, or 
other approvals required under Federal law 
with respect to siting, construction, expansion, 
or operation of a refinery; 
(5) the term ‘‘refinery’’ means— 
(A) a facility designed and operated to re-
ceive, load, unload, store, transport, process, 
and refine crude oil by any chemical or physical 
process, including distillation, fluid catalytic 
cracking, hydrocracking, coking, alkylation, 
etherification, polymerization, catalytic reform-
ing, isomerization, hydrotreating, blending, and 
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any combination thereof, in order to produce 
gasoline or distillate; 
(B) a facility designed and operated to re-
ceive, load, unload, store, transport, process, 
and refine coal by any chemical or physical 
process, including liquefaction, in order to 
produce gasoline or diesel as its primary out-
put; or 
(C) a facility designed and operated to re-
ceive, load, unload, store, transport, process (in-
cluding biochemical, photochemical, and bio-
technology processes), and refine biomass in 
order to produce biofuel; and 
(6) the term ‘‘State’’ means a State, the Dis-
trict of Columbia, the Commonwealth of Puerto 
Rico, and any other territory or possession of the 
United States. 
SEC. 103. STATE ASSISTANCE. 
(a) STATE ASSISTANCE.—At the request of a gov-
ernor of a State, the Administrator is authorized to pro-
vide financial assistance to that State to facilitate the hir-
ing of additional personnel to assist the State with exper-
tise in fields relevant to consideration of Federal refinery 
authorizations. 
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(b) OTHER ASSISTANCE.—At the request of a gov-
ernor of a State, a Federal agency responsible for a Fed-
eral refinery authorization shall provide technical, legal, 
or other nonfinancial assistance to that State to facilitate 
its consideration of Federal refinery authorizations. 
SEC. 104. REFINERY PROCESS COORDINATION AND PROCE-
DURES. 
(a) APPOINTMENT OF FEDERAL COORDINATOR.— 
(1) IN GENERAL.—The President shall appoint 
a Federal coordinator to perform the responsibilities 
assigned to the Federal coordinator under this sub-
title. 
(2) OTHER
AGENCIES.—Each Federal and 
State agency or official required to provide a Fed-
eral refinery authorization shall cooperate with the 
Federal coordinator. 
(b) FEDERAL REFINERY AUTHORIZATIONS.— 
(1) MEETING PARTICIPANTS.—Not later than 
30 days after receiving a notification from an appli-
cant that the applicant is seeking a Federal refinery 
authorization pursuant to Federal law, the Federal 
coordinator appointed under subsection (a) shall 
convene a meeting of representatives from all Fed-
eral and State agencies responsible for a Federal re-
finery authorization with respect to the refinery. The 
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governor of a State shall identify each agency of 
that State that is responsible for a Federal refinery 
authorization with respect to that refinery. 
(2) MEMORANDUM OF AGREEMENT.—(A) Not 
later than 90 days after receipt of a notification de-
scribed in paragraph (1), the Federal coordinator 
and the other participants at a meeting convened 
under paragraph (1) shall establish a memorandum 
of agreement setting forth the most expeditious co-
ordinated schedule possible for completion of all 
Federal refinery authorizations with respect to the 
refinery, consistent with the full substantive and 
procedural review required by Federal law. If a Fed-
eral or State agency responsible for a Federal refin-
ery authorization with respect to the refinery is not 
represented at such meeting, the Federal coordinator 
shall ensure that the schedule accommodates those 
Federal refinery authorizations, consistent with Fed-
eral law. In the event of conflict among Federal re-
finery authorization scheduling requirements, the re-
quirements of the Environmental Protection Agency 
shall be given priority. 
(B) Not later than 15 days after completing the 
memorandum of agreement, the Federal coordinator 
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shall publish the memorandum of agreement in the 
Federal Register. 
(C) The Federal coordinator shall ensure that 
all parties to the memorandum of agreement are 
working in good faith to carry out the memorandum 
of agreement, and shall facilitate the maintenance of 
the schedule established therein. 
(c) CONSOLIDATED RECORD.—The Federal coordi-
nator shall, with the cooperation of Federal and State ad-
ministrative agencies and officials, maintain a complete 
consolidated record of all decisions made or actions taken 
by the Federal coordinator or by a Federal administrative 
agency or officer (or State administrative agency or officer 
acting under delegated Federal authority) with respect to 
any Federal refinery authorization. Such record shall be 
the record for judicial review under subsection (d) of deci-
sions made or actions taken by Federal and State adminis-
trative agencies and officials, except that, if the Court de-
termines that the record does not contain sufficient infor-
mation, the Court may remand the proceeding to the Fed-
eral coordinator for further development of the consoli-
dated record. 
(d) REMEDIES.— 
(1) IN GENERAL.—The United States District 
Court for the district in which the proposed refinery 
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is located shall have exclusive jurisdiction over any 
civil action for the review of the failure of an agency 
or official to act on a Federal refinery authorization 
in accordance with the schedule established pursuant 
to the memorandum of agreement. 
(2) STANDING.—If an applicant or a party to 
a memorandum of agreement alleges that a failure 
to act described in paragraph (1) has occurred and 
that such failure to act would jeopardize timely com-
pletion of the entire schedule as established in the 
memorandum of agreement, such applicant or other 
party may bring a cause of action under this sub-
section. 
(3) COURT ACTION.—If an action is brought 
under paragraph (2), the Court shall review whether 
the parties to the memorandum of agreement have 
been acting in good faith, whether the applicant has 
been cooperating fully with the agencies that are re-
sponsible for issuing a Federal refinery authoriza-
tion, and any other relevant materials in the consoli-
dated record. Taking into consideration those fac-
tors, if the Court finds that a failure to act de-
scribed in paragraph (1) has occurred, and that such 
failure to act would jeopardize timely completion of 
the entire schedule as established in the memo-
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randum of agreement, the Court shall establish a 
new schedule that is the most expeditious coordi-
nated schedule possible for completion of pro-
ceedings, consistent with the full substantive and 
procedural review required by Federal law. The 
court may issue orders to enforce any schedule it es-
tablishes under this paragraph. 
(4) FEDERAL COORDINATOR’S ACTION.—When 
any civil action is brought under this subsection, the 
Federal coordinator shall immediately file with the 
Court the consolidated record compiled by the Fed-
eral coordinator pursuant to subsection (c). 
(5) EXPEDITED REVIEW.—The Court shall set 
any civil action brought under this subsection for ex-
pedited consideration. 
SEC. 105. DESIGNATION OF CLOSED MILITARY BASES. 
(a) DESIGNATION REQUIREMENT.—Not later than 
90 days after the date of enactment of this Act, the Presi-
dent shall designate no less than 3 closed military installa-
tions, or portions thereof, as potentially suitable for the 
construction of a refinery. At least 1 such site shall be 
designated as potentially suitable for construction of a re-
finery to refine biomass in order to produce biofuel. 
(b) REDEVELOPMENT AUTHORITY.—The redevelop-
ment authority for each installation designated under sub-
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section (a), in preparing or revising the redevelopment 
plan for the installation, shall consider the feasibility and 
practicability of siting a refinery on the installation. 
(c) MANAGEMENT AND DISPOSAL OF REAL PROP-
ERTY.—The Secretary of Defense, in managing and dis-
posing of real property at an installation designated under 
subsection (a) pursuant to the base closure law applicable 
to the installation, shall give substantial deference to the 
recommendations of the redevelopment authority, as con-
tained in the redevelopment plan for the installation, re-
garding the siting of a refinery on the installation. The 
management and disposal of real property at a closed mili-
tary installation or portion thereof found to be suitable 
for the siting of a refinery under subsection (a) shall be 
carried out in the manner provided by the base closure 
law applicable to the installation. 
(d) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘base closure law’’ means the De-
fense Base Closure and Realignment Act of 1990 
(part A of title XXIX of Public Law 101–510; 10 
U.S.C. 2687 note) and title II of the Defense Au-
thorization Amendments and Base Closure and Re-
alignment Act (Public Law 100–526; 10 U.S.C. 
2687 note); and 
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(2) the term ‘‘closed military installation’’ 
means a military installation closed or approved for 
closure pursuant to a base closure law. 
SEC. 106. SAVINGS CLAUSE. 
Nothing in this subtitle shall be construed to affect 
the application of any environmental or other law, or to 
prevent any party from bringing a cause of action under 
any environmental or other law, including citizen suits. 
SEC. 107. REFINERY REVITALIZATION REPEAL. 
Subtitle H of title III of the Energy Policy Act of 
2005 and the items relating thereto in the table of con-
tents of such Act are repealed. 
Subtitle B—Oil and Gas Develop-
ment on the Coastal Plain of 
Alaska 
SEC. 121 DEFINITIONS. 
In this subtitle: 
(1) COASTAL
PLAIN.—The term ‘‘Coastal 
Plain’’ means that area described in appendix I to 
part 37 of title 50, Code of Federal Regulations. 
(2) SECRETARY.—The term ‘‘Secretary’’, except 
as otherwise provided, means the Secretary of the 
Interior or the Secretary’s designee. 
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SEC. 122. LEASING PROGRAM FOR LANDS WITHIN THE 
COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall take such ac-
tions as are necessary— 
(1) to establish and implement, in accordance 
with this subtitle and acting through the Director of 
the Bureau of Land Management in consultation 
with the Director of the United States Fish and 
Wildlife Service, a competitive oil and gas leasing 
program that will result in an environmentally sound 
program for the exploration, development, and pro-
duction of the oil and gas resources of the Coastal 
Plain; and 
(2) to administer the provisions of this subtitle 
through regulations, lease terms, conditions, restric-
tions, prohibitions, stipulations, and other provisions 
that ensure the oil and gas exploration, development, 
and production activities on the Coastal Plain will 
result in no significant adverse effect on fish and 
wildlife, their habitat, subsistence resources, and the 
environment, including, in furtherance of this goal, 
by requiring the application of the best commercially 
available technology for oil and gas exploration, de-
velopment, and production to all exploration, devel-
opment, and production operations under this sub-
title in a manner that ensures the receipt of fair 
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market value by the public for the mineral resources 
to be leased. 
(b) REPEAL.— 
(1) REPEAL.—Section 1003 of the Alaska Na-
tional Interest Lands Conservation Act of 1980 (16 
U.S.C. 3143) is repealed. 
(2) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act is amended by 
striking the item relating to section 1003. 
(c) COMPLIANCE WITH REQUIREMENTS UNDER CER-
TAIN OTHER LAWS.— 
(1) COMPATIBILITY.—For purposes of the Na-
tional Wildlife Refuge System Administration Act of 
1966 (16 U.S.C. 668dd et seq.), the oil and gas 
leasing program and activities authorized by this 
section in the Coastal Plain are deemed to be com-
patible with the purposes for which the Arctic Na-
tional Wildlife Refuge was established, and no fur-
ther findings or decisions are required to implement 
this determination. 
(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The 
‘‘Final 
Legislative 
Environ-
mental Impact Statement’’ (April 1987) on the 
Coastal Plain prepared pursuant to section 1002 of 
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the Alaska National Interest Lands Conservation 
Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) 
of the National Environmental Policy Act of 1969 
(42 U.S.C. 4332(2)(C)) is deemed to satisfy the re-
quirements under the National Environmental Policy 
Act of 1969 that apply with respect to prelease ac-
tivities, including actions authorized to be taken by 
the Secretary to develop and promulgate the regula-
tions for the establishment of a leasing program au-
thorized by this subtitle before the conduct of the 
first lease sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under 
this subtitle, 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 subtitle that are not re-
ferred to in paragraph (2). Notwithstanding any 
other law, the Secretary is not required to identify 
nonleasing alternative courses of action or to analyze 
the environmental effects of such courses of action. 
The Secretary shall only identify a preferred action 
for such leasing and a single leasing alternative, and 
analyze the environmental effects and potential miti-
gation measures for those two alternatives. The 
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identification of the preferred action and related 
analysis for the first lease sale under this subtitle 
shall be completed within 18 months after the date 
of 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. Notwithstanding any other law, compliance 
with this paragraph is deemed to satisfy all require-
ments for the analysis and consideration of the envi-
ronmental effects of proposed leasing under this sub-
title. 
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle shall be considered to ex-
pand 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-
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ignate as such a Special Area the Sadlerochit Spring 
area, comprising approximately 4,000 acres. 
(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 Spe-
cial 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 subtitle. 
(g) REGULATIONS.— 
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(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this subtitle, including rules and regulations re-
lating to protection of the fish and wildlife, their 
habitat, subsistence resources, and environment of 
the Coastal Plain, by no later than 15 months after 
the date of 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. 123. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this subtitle to any person qualified to obtain a lease for 
deposits 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; 
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(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 subtitle shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this subtitle, 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 sub-
title within 22 months after the date of the enact-
ment 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. 124. 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 123 any lands to be leased on 
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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 subtitle may be sold, exchanged, assigned, sub-
let, 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. 125. LEASE TERMS AND CONDITIONS. 
An oil or gas lease issued pursuant to this subtitle 
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) 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; 
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(3) 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; 
(4) provide that the standard of reclamation for 
lands required to be reclaimed under this subtitle 
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 
lessee, to a higher or better use as approved by the 
Secretary; 
(5) include requirements and restrictions to 
provide for reasonable protection of fish and wildlife, 
their habitat, subsistence resources, and the environ-
ment as determined by the Secretary; 
(6) prohibit the export of oil produced under 
the lease; and 
(7) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with the provisions of this subtitle and the regula-
tions issued under this subtitle. 
SEC. 126. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
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The Secretary shall, consistent with the requirements of 
section 122, administer the provisions of this subtitle 
through regulations, lease terms, conditions, restrictions, 
prohibitions, 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, sub-
sistence resources, and the environment; 
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(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 subtitle, the Secretary 
shall prepare and promulgate regulations, lease terms, 
conditions, restrictions, prohibitions, stipulations, and 
other measures designed to ensure that the activities un-
dertaken on the Coastal Plain under this subtitle are con-
ducted in a manner consistent with the purposes and envi-
ronmental requirements of this subtitle. 
(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 subtitle shall require compliance with all appli-
cable provisions of Federal and State environmental law, 
and shall also require the following: 
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(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) 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. 
(4) Prohibitions on general public access and 
use on all pipeline access and service roads. 
(5) Stringent reclamation and rehabilitation re-
quirements, consistent with the standards set forth 
in this subtitle, requiring the removal from the 
Coastal Plain of all oil and gas development and 
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production facilities, structures, and equipment upon 
completion of oil and gas production operations, ex-
cept that the Secretary may exempt from the re-
quirements of this paragraph those facilities, struc-
tures, or equipment that the Secretary determines 
would assist in the management of the Arctic Na-
tional Wildlife Refuge and that are donated to the 
United States for that purpose. 
(6) Appropriate prohibitions or restrictions on 
access by all modes of transportation. 
(7) Appropriate prohibitions or restrictions on 
sand and gravel extraction. 
(8) Consolidation of facility siting. 
(9) Appropriate prohibitions or restrictions on 
use of explosives. 
(10) 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. 
(11) Avoidance or minimization of air traffic-re-
lated disturbance to fish and wildlife. 
(12) Treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
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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. 
(13) Fuel storage and oil spill contingency plan-
ning. 
(14) Research, monitoring, and reporting re-
quirements. 
(15) Field crew environmental briefings. 
(16) Avoidance of significant adverse effects 
upon subsistence hunting, fishing, and trapping by 
subsistence users. 
(17) Compliance with applicable air and water 
quality standards. 
(18) Appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited. 
(19) Reasonable stipulations for protection of 
cultural and archeological resources. 
(20) 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, 
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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: 
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(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. 127. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINT.— 
(1) DEADLINE.—Subject to paragraph (2), any 
complaint seeking judicial review of any provision of 
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this subtitle or any action of the Secretary under 
this subtitle shall be filed— 
(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 any provision of this subtitle or any action 
of the Secretary under this subtitle may be filed only 
in the United States Court of Appeals for the Dis-
trict of Columbia. 
(3) LIMITATION
ON
SCOPE
OF
CERTAIN
RE-
VIEW.—Judicial review of a Secretarial decision to 
conduct a lease sale under this subtitle, including 
the environmental analysis thereof, shall be limited 
to whether the Secretary has complied with the 
terms of this subtitle and shall be based upon the 
administrative record of that decision. The Sec-
retary’s identification of a preferred course of action 
to enable leasing to proceed and the Secretary’s 
analysis of environmental effects under this subtitle 
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shall be presumed to be correct unless shown other-
wise by clear and convincing evidence to the con-
trary. 
(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. 128. 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 Federal oil and gas leasing and op-
erations authorized under this subtitle— 
(1) 25 percent shall be paid to the State of 
Alaska; and 
(2) except as otherwise provided by this Act, 
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. 129. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 
(a) IN GENERAL.—The Secretary shall issue rights- 
of-way and easements across the Coastal Plain for the 
transportation of oil and gas— 
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(1) except as provided in paragraph (2), under 
section 28 of the Mineral Leasing Act (30 U.S.C. 
185), without regard to title XI of the Alaska Na-
tional Interest Lands Conservation Act (30 U.S.C. 
3161 et seq.); and 
(2) under title XI of the Alaska National Inter-
est Lands Conservation Act (30 U.S.C. 3161 et 
seq.), for access authorized by sections 1110 and 
1111 of that Act (16 U.S.C. 3170 and 3171). 
(b) TERMS AND CONDITIONS.—The Secretary shall 
include in any right-of-way or easement issued under 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 122(g) provisions granting 
rights-of-way and easements described in subsection (a) 
of this section. 
SEC. 130. CONVEYANCE. 
In order to maximize Federal revenues by removing 
clouds on title to lands and clarifying land ownership pat-
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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 sec-
tions 12 and 14 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1611 and 1613) in accordance 
with the terms and conditions of the Agreement be-
tween the Department of the Interior, the United 
States Fish and Wildlife Service, the Bureau of 
Land Management, and the Kaktovik Inupiat Cor-
poration 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. 131. 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-
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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 subtitle. 
(2) ELIGIBLE
ENTITIES.—The North Slope 
Borough, the City of Kaktovik, and any other bor-
ough, municipal subdivision, village, or other com-
munity in the State of Alaska that is directly im-
pacted by exploration for, or the production of, oil 
or gas on the Coastal Plain under this subtitle, as 
determined by the Secretary, shall be eligible for fi-
nancial 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 
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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 House of Representatives and the Com-
mittee on Energy and Natural Resources of the 
Senate an annual report on the status of co-
ordination between developers and the commu-
nities affected by development. 
(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 
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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 from Federal leases and lease 
sales authorized under this subtitle. 
(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. 
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(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. 
Subtitle C—Opening of Outer 
Continental Shelf 
SEC. 141. SHORT TITLE. 
This subtitle may be cited as the ‘‘Deep Ocean En-
ergy Resources Act of 2008’’. 
SEC. 142. POLICY. 
It is the policy of the United States that— 
(1) the United States is blessed with abundant 
energy resources on the outer Continental Shelf and 
has developed a comprehensive framework of envi-
ronmental laws and regulations and fostered the de-
velopment of state-of-the-art technology that allows 
for the responsible development of these resources 
for the benefit of its citizenry; 
(2) adjacent States are required by the cir-
cumstances to commit significant resources in sup-
port of exploration, development, and production ac-
tivities for mineral resources on the outer Conti-
nental Shelf, and it is fair and proper for a portion 
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of the receipts from such activities to be shared with 
Adjacent States and their local coastal governments; 
(3) the existing laws governing the leasing and 
production of the mineral resources of the outer 
Continental Shelf have reduced the production of 
mineral resources, have preempted Adjacent States 
from being sufficiently involved in the decisions re-
garding the allowance of mineral resource develop-
ment, and have been harmful to the national inter-
est; 
(4) the national interest is served by granting 
the Adjacent States more options related to whether 
or not mineral leasing should occur in the outer 
Continental Shelf within their Adjacent Zones; 
(5) it is not reasonably foreseeable that explo-
ration of a leased tract located more than 25 miles 
seaward of the coastline, development and produc-
tion of a natural gas discovery located more than 25 
miles seaward of the coastline, or development and 
production of an oil discovery located more than 50 
miles seaward of the coastline will adversely affect 
resources near the coastline; 
(6) transportation of oil from a leased tract 
might reasonably be foreseen, under limited cir-
cumstances, to have the potential to adversely affect 
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resources near the coastline if the oil is within 50 
miles of the coastline, but such potential to adversely 
affect such resources is likely no greater, and prob-
ably less, than the potential impacts from tanker 
transportation because tanker spills usually involve 
large releases of oil over a brief period of time; and 
(7) among other bodies of inland waters, the 
Great Lakes, Long Island Sound, Delaware Bay, 
Chesapeake Bay, Albemarle Sound, San Francisco 
Bay, and Puget Sound are not part of the outer 
Continental Shelf, and are not subject to leasing by 
the Federal Government for the exploration, develop-
ment, and production of any mineral resources that 
might lie beneath them. 
SEC. 143. DEFINITIONS UNDER THE OUTER CONTINENTAL 
SHELF LANDS ACT. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended— 
(1) by amending paragraph (f) to read as fol-
lows: 
‘‘(f) The term ‘affected State’ means the Adjacent 
State.’’; 
(2) by striking the semicolon at the end of each 
of paragraphs (a) through (o) and inserting a pe-
riod; 
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(3) by striking ‘‘; and’’ at the end of paragraph 
(p) and inserting a period; 
(4) by adding at the end the following: 
‘‘(r) The term ‘Adjacent State’ means, with respect 
to any program, plan, lease sale, leased tract or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, any State the laws of which are 
declared, pursuant to section 4(a)(2), to be the law of the 
United States for the portion of the outer Continental 
Shelf on which such program, plan, lease sale, leased tract 
or activity appertains or is, or is proposed to be, con-
ducted. For purposes of this paragraph, the term ‘State’ 
includes Puerto Rico and the other Territories of the 
United States. 
‘‘(s) The term ‘Adjacent Zone’ means, with respect 
to any program, plan, lease sale, leased tract, or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, the portion of the outer Continental 
Shelf for which the laws of a particular Adjacent State 
are declared, pursuant to section 4(a)(2), to be the law 
of the United States. 
‘‘(t) The term ‘miles’ means statute miles. 
‘‘(u) The term ‘coastline’ has the same meaning as 
the term ‘coast line’ as defined in section 2(c) of the Sub-
merged Lands Act (43 U.S.C. 1301(c)). 
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‘‘(v) The term ‘Neighboring State’ means a coastal 
State having a common boundary at the coastline with the 
Adjacent State.’’; and 
(5) in paragraph (a), by inserting after ‘‘con-
trol’’ the following: ‘‘or lying within the United 
States exclusive economic zone adjacent to the Terri-
tories of the United States’’. 
SEC. 144. DETERMINATION OF ADJACENT ZONES AND 
PLANNING AREAS. 
Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 
first sentence by striking ‘‘, and the President’’ and all 
that follows through the end of the sentence and inserting 
the following: ‘‘. The lines extending seaward and defining 
each State’s Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental 
Shelf region entitled ‘Alaska OCS Region State Adjacent 
Zone and OCS Planning Areas’, ‘Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas’, ‘Gulf of 
Mexico OCS Region State Adjacent Zones and OCS Plan-
ning Areas’, and ‘Atlantic OCS Region State Adjacent 
Zones and OCS Planning Areas’, all of which are dated 
September 2005 and on file in the Office of the Director, 
Minerals Management Service.’’. 
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SEC. 145. ADMINISTRATION OF LEASING. 
Section 5 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1334) is amended by adding at the end the 
following: 
‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A 
LEASE.—Any lessee of a producing lease may relinquish 
to the Secretary any portion of a lease that the lessee has 
no interest in producing and that the Secretary finds is 
geologically prospective. In return for any such relinquish-
ment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, 
in accordance with regulations promulgated by the Sec-
retary to carry out this subsection. The Secretary shall 
publish final regulations implementing this subsection 
within 365 days after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2008. 
‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 
than July 1, 2009, the Secretary shall publish a final regu-
lation that shall— 
‘‘(1) establish procedures for entering into nat-
ural gas leases; 
‘‘(2) ensure that natural gas leases are only 
available for tracts on the outer Continental Shelf 
that are wholly within 100 miles of the coastline 
within an area withdrawn from disposition by leas-
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ing on the day after the date of enactment of the 
Deep Ocean Energy Resources Act of 2008; 
‘‘(3) provide that natural gas leases shall con-
tain the same rights and obligations established for 
oil and gas leases, except as otherwise provided in 
the Deep Ocean Energy Resources Act of 2008; 
‘‘(4) provide that, in reviewing the adequacy of 
bids for natural gas leases, the value of any crude 
oil estimated to be contained within any tract shall 
be excluded; 
‘‘(5) provide that any crude oil produced from 
a well and reinjected into the leased tract shall not 
be subject to payment of royalty, and that the Sec-
retary shall consider, in setting the royalty rates for 
a natural gas lease, the additional cost to the lessee 
of not producing any crude oil; and 
‘‘(6) provide that any Federal law that applies 
to an oil and gas lease on the outer Continental 
Shelf shall apply to a natural gas lease unless other-
wise clearly inapplicable.’’. 
SEC. 146. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
(1) in subsection (a)(1) by inserting after the 
first sentence the following: ‘‘Further, the Secretary 
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may grant natural gas leases in a manner similar to 
the granting of oil and gas leases and under the var-
ious bidding systems available for oil and gas 
leases.’’; 
(2) by adding at the end of subsection (b) the 
following: 
‘‘The Secretary may issue more than one lease for a given 
tract if each lease applies to a separate and distinct range 
of vertical depths, horizontal surface area, or a combina-
tion of the two. The Secretary may issue regulations that 
the Secretary determines are necessary to manage such 
leases consistent with the purposes of this Act.’’; 
(3) by amending subsection (p)(2)(B) to read 
as follows: 
‘‘(B) The Secretary shall provide for the pay-
ment to coastal states, and their local coastal gov-
ernments, of 75 percent of Federal receipts from 
projects authorized under this section located par-
tially or completely within the area extending sea-
ward of State submerged lands out to 4 marine 
leagues from the coastline, and the payment to 
coastal states of 50 percent of the receipts from 
projects completely located in the area more than 4 
marine leagues from the coastline. Payments shall 
be based on a formula established by the Secretary 
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by rulemaking no later than 180 days after the date 
of the enactment of the Deep Ocean Energy Re-
sources Act of 2008 that provides for equitable dis-
tribution, based on proximity to the project, among 
coastal states that have coastline that is located 
within 200 miles of the geographic center of the 
project.’’; 
(4) by adding at the end the following: 
‘‘(q) NATURAL GAS LEASES.— 
‘‘(1) RIGHT
TO
PRODUCE
NATURAL
GAS.—A 
lessee of a natural gas lease shall have the right to 
produce the natural gas from a field on a natural 
gas leased tract if the Secretary estimates that the 
discovered field has at least 40 percent of the eco-
nomically recoverable Btu content of the field con-
tained within natural gas and such natural gas is ec-
onomical to produce. 
‘‘(2) CRUDE OIL.—A lessee of a natural gas 
lease may not produce crude oil from the lease. 
‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec-
retary shall make estimates of the natural gas Btu 
content of discovered fields on a natural gas lease 
only after the completion of at least one exploration 
well, the data from which has been tied to the re-
sults of a three-dimensional seismic survey of the 
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field. The Secretary may not require the lessee to 
further delineate any discovered field prior to mak-
ing such estimates. 
‘‘(4) DEFINITION OF NATURAL GAS.—For pur-
poses of a natural gas lease, natural gas means nat-
ural gas and all substances produced in association 
with gas, including, but not limited to, hydrocarbon 
liquids (other than crude oil) that are obtained by 
the condensation of hydrocarbon vapors and sepa-
rate out in liquid form from the produced gas 
stream. 
‘‘(r) REMOVAL OF RESTRICTIONS ON JOINT BIDDING 
IN
CERTAIN
AREAS
OF
THE
OUTER
CONTINENTAL 
SHELF.—Restrictions on joint bidders shall no longer 
apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions 
determined to be ‘frontier tracts’ or otherwise ‘high cost 
tracts’ under final regulations that shall be published by 
the Secretary by not later than 365 days after the date 
of the enactment of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(s) ROYALTY SUSPENSION PROVISIONS.—The Sec-
retary shall agree to a request by any lessee to amend 
any lease issued for Central and Western Gulf of Mexico 
tracts during the period of January 1, 1998, through De-
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cember 31, 1999, to incorporate price thresholds applica-
ble to royalty suspension provisions, or amend existing 
price thresholds, in the amount of $40.50 per barrel (2006 
dollars) for oil and for natural gas of $6.75 per million 
Btu (2006 dollars). Any amended lease shall impose the 
new or revised price thresholds effective October 1, 2008. 
Existing lease provisions shall prevail through September 
30, 2008. After the date of the enactment of the Deep 
Ocean Energy Resources Act of 2008, price thresholds 
shall apply to any royalty suspension volumes granted by 
the Secretary. Unless otherwise set by Secretary by regu-
lation or for a particular lease sale, the price thresholds 
shall be $40.50 for oil (2006 dollars) and $6.75 for nat-
ural gas (2006 dollars). 
‘‘(t) CONSERVATION OF RESOURCES FEES.— 
‘‘(1) Not later than one year after the date of 
the enactment of the Deep Ocean Energy Resources 
Act of 2008, the Secretary by regulation shall estab-
lish a conservation of resources fee for producing 
leases that will apply to new and existing leases 
which shall be set at $9 per barrel for oil and $1.25 
per million Btu for gas. This fee shall only apply to 
leases in production located in more than 200 me-
ters of water for which royalties are not being paid 
when prices exceed $40.50 per barrel for oil and 
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$6.75 per million Btu for natural gas in 2006, dol-
lars. This fee shall apply to production from and 
after October 1, 2008, and shall be treated as offset-
ting receipts. 
‘‘(2) Not later than one year after the date of 
the enactment of the Deep Ocean Energy Resources 
Act of 2008, the Secretary by regulation shall estab-
lish a conservation of resources fee for nonproducing 
leases that will apply to new and existing leases 
which shall be set at $3.75 per acre per year. This 
fee shall apply from and after October 1, 2008, and 
shall be treated as offsetting receipts.’’; 
(5) by striking subsection (a)(3)(A) and redes-
ignating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
(6) in subsection (a)(3)(A) (as so redesignated) 
by striking ‘‘In the Western’’ and all that follows 
through ‘‘the Secretary’’ the first place it appears 
and inserting ‘‘The Secretary’’; and 
(7) effective October 1, 2008, in subsection 
(g)— 
(A) by striking all after ‘‘(g)’’, except para-
graph (3); 
(B) by striking the last sentence of para-
graph (3); and 
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(C) by striking ‘‘(3)’’. 
SEC. 147. DISPOSITION OF RECEIPTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended— 
(1) by designating the existing text as sub-
section (a); 
(2) in subsection (a) (as so designated) by in-
serting ‘‘, if not paid as otherwise provided in this 
title’’ after ‘‘receipts’’; and 
(3) by adding the following: 
‘‘(b) TREATMENT OF OCS RECEIPTS FROM TRACTS 
COMPLETELY WITHIN 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), (3), and (4). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2008, 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 com-
pletely beyond 4 marine leagues from any 
coastline and completely within 100 miles 
of any coastline that are available for leas-
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ing under the 2002–2007 5-Year Oil and 
Gas Leasing Program in effect prior to the 
date of the enactment of the Deep Ocean 
Energy Resources Act of 2008. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2008, completely beyond 4 
marine leagues from any coastline and 
completely within 100 miles of any coast-
line located on portions of the OCS that 
were not available for leasing under the 
2002–2007 5-Year OCS Oil and Gas Leas-
ing Program in effect prior to the date of 
the enactment of the Deep Ocean Energy 
Resources Act of 2008. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2008, located in 
the Alaska OCS Region completely beyond 
4 marine leagues from any coastline and 
completely within 100 miles of the coast-
line. 
‘‘(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 2009, 4.6 percent. 
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‘‘(ii) For fiscal year 2010, 5.95 per-
cent. 
‘‘(iii) For fiscal year 2011, 6.8 per-
cent. 
‘‘(iv) For fiscal year 2012, 7.65 per-
cent. 
‘‘(v) For fiscal year 2013, 10.20 per-
cent. 
‘‘(vi) For fiscal year 2014, 12.75 per-
cent. 
‘‘(vii) For fiscal year 2015, 15.30 per-
cent. 
‘‘(viii) For fiscal year 2016, 17.85 
percent. 
‘‘(ix) For fiscal year 2017, 20.40 per-
cent. 
‘‘(x) For fiscal year 2018, 22.95 per-
cent. 
‘‘(xi) For fiscal year 2019, 25.50 per-
cent. 
‘‘(xii) For fiscal year 2020, 28.05 per-
cent. 
‘‘(xiii) For fiscal year 2021, 30.60 
percent. 
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‘‘(xiv) For fiscal year 2022, 33.15 
percent. 
‘‘(xv) For fiscal year 2023 35.70 per-
cent. 
‘‘(xvi) For fiscal year 2024 and each 
subsequent fiscalyear, 37.5 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 
146(2) of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2008, the Secretary shall share 37.5 
percent of OCS Receipts derived from all leases lo-
cated completely beyond 4 marine leagues from any 
coastline and completely within 100 miles of any 
coastline not included within the provisions of para-
graph (2). 
‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 
4 MARINE LEAGUES OF ANY COASTLINE.— 
‘‘(A) AREAS
DESCRIBED
IN
PARAGRAPH 
(2).— 
‘‘(i) Beginning October 1, 2008, and 
continuing through September 30, 2013, 
the Secretary shall share 25 percent of 
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OCS Receipts derived from all leases lo-
cated within 4 marine leagues from any 
coastline within areas described in para-
graph (2). For each fiscal year after Sep-
tember 30, 2013, the Secretary shall in-
crease the percent shared in 5 percent in-
crements each fiscal year until the sharing 
rate for all leases located within 4 marine 
leagues from any coastline within areas de-
scribed in paragraph (2) becomes 37.5 per-
cent. 
‘‘(ii) During fiscal year 2018, the Sec-
retary shall conduct an analysis of all of 
the areas described in paragraph (3) and 
subsection (c)(3) to determine the total of 
OCS Receipts derived from such areas dur-
ing the period of fiscal year 2009 through 
fiscal year 2018. The Secretary shall sub-
tract the amount of $4 billion from the 
total of such OCS Receipts. If the result is 
a positive number, the Secretary shall di-
vide such positive number by $4 billion. 
The resulting quotient, not to exceed 0.5, 
shall then be multiplied times 25. The 
product of such multiplication shall be 
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added to 37.5 and the sum shall be the 
percent that the Secretary shall share for 
fiscal year 2019 and all future years from 
OCS Receipts derived from all leases lo-
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, 2019, 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 2019 the 
amount of $900,000,000 and for each fis-
cal year thereafter add $100,000,000. 
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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, 2008, 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 
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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.— 
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‘‘(A) Beginning October 1, 2008, 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 2008. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2008, partially or completely 
beyond 100 miles of any coastline located 
on portions of the OCS that were not 
available for leasing under the 2007–2012 
5-Year OCS Oil and Gas Leasing Program 
in effect prior to the date of enactment of 
the Deep Ocean Energy Resources Act of 
2008. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2008, located in 
the Alaska OCS Region partially or com-
pletely beyond 100 miles of the coastline. 
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‘‘(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 2009, 4.6 percent. 
‘‘(ii) For fiscal year 2010, 5.95 per-
cent. 
‘‘(iii) For fiscal year 2011, 6.80 per-
cent. 
‘‘(iv) For fiscal year 2012, 7.65 per-
cent. 
‘‘(v) For fiscal year 2013, 10.20 per-
cent. 
‘‘(vi) For fiscal year 2014, 12.75 per-
cent. 
‘‘(vii) For fiscal year 2015, 15.30 per-
cent. 
‘‘(viii) For fiscal year 2016, 17.85 
percent. 
‘‘(ix) For fiscal year 2017, 20.40 per-
cent. 
‘‘(x) For fiscal year 2018, 22.95 per-
cent. 
‘‘(xi) For fiscal year 2019, 25.50 per-
cent. 
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‘‘(xii) For fiscal year 2020, 28.05 per-
cent. 
‘‘(xiii) For fiscal year 2021, 30.60 
percent. 
‘‘(xiv) For fiscal year 2022, 33.15 
percent. 
‘‘(xv) For fiscal year 2023, 35.70 per-
cent. 
‘‘(xvi) For fiscal year 2024 and each 
subsequent fiscal year, 37.5 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 
146(2) of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2008, the Secretary shall share 37.5 
percent of OCS Receipts derived on and after Octo-
ber 1, 2008, 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 
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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 
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‘‘(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-
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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- 
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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 
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‘‘(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; 
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‘‘(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. 
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‘‘(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-
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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 
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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. 148. 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-
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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 2008, the Secretary shall not offer for 
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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 
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year after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2008 for 
natural gas leasing or by June 30, 2011, 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 
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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. 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 Plan-
ning Area, and the remainder of such tract that lies 
outside of the Gulf of Mexico OCS Region Central 
Planning Area may be developed and produced by 
the lessee of such partial tract using extended reach 
or similar drilling from a location on a leased area. 
Further, any area in the OCS withdrawn from leas-
ing may be leased, and thereafter developed and pro-
duced by the lessee using extended 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 
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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-
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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; 
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‘‘(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 
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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 2008 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 
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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 
LEASING WITHIN CERTAIN AREAS OF THE OUTER CON-
TINENTAL 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 with-
drawal 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 sub-
section (g)(1)(B). A State may extend multiple times for 
any particular area but not more than once per calendar 
year for any particular area. A State must prepare sepa-
rate extensions, with separate votes by its legislature, for 
oil and gas leasing and for natural gas leasing. An exten-
sion 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 
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‘Gulf of Mexico OCS Region State Adjacent Zones and 
OCS Planning Areas’ which is dated September 2005 and 
on file in the Office of the Director, Minerals Management 
Service, 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 2008, no area of the 
outer Continental Shelf located in the Gulf of Mexico 
east of the military mission line may be offered for 
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leasing for oil and gas or natural gas prior to Janu-
ary 1, 2022. 
‘‘(2) In this subsection, the term ‘military mis-
sion line’ means a line located at 86 degrees, 41 
minutes West Longitude, and extending south from 
the coast of Florida to the outer boundary of United 
States territorial waters in the Gulf of Mexico.’’. 
SEC. 149. 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-
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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 
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