ignate as such a Special Area the Sadlerochit Spring 
area, comprising approximately 4,000 acres as de-
picted on the map referred to in section 2(1). 
(2) MANAGEMENT.—Each such Special Area 
shall be managed so as to protect and preserve the 
area’s unique and diverse character including its 
fish, wildlife, and subsistence resource values. 
(3) EXCLUSION
FROM
LEASING
OR
SURFACE 
OCCUPANCY.—The Secretary may exclude any Spe-
cial Area from leasing. If the Secretary leases a Spe-
cial Area, or any part thereof, for purposes of oil 
and gas exploration, development, production, and 
related activities, there shall be no surface occu-
pancy of the lands comprising the Special Area. 
(4) DIRECTIONAL DRILLING.—Notwithstanding 
the other provisions of this subsection, the Secretary 
may lease all or a portion of a Special Area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the area. 
(f) LIMITATION
ON
CLOSED
AREAS.—The Sec-
retary’s sole authority to close lands within the Coastal 
Plain to oil and gas leasing and to exploration, develop-
ment, and production is that set forth in this Act. 
(g) REGULATIONS.—
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this Act, including rules and regulations relating 
to protection of the fish and wildlife, their habitat, 
subsistence resources, and environment of the Coast-
al Plain, by no later than 15 months after the date 
of the enactment of this Act. 
(2) REVISION
OF
REGULATIONS.—The Sec-
retary shall periodically review and, if appropriate, 
revise the rules and regulations issued under sub-
section (a) to reflect any significant biological, envi-
ronmental, or engineering data that come to the Sec-
retary’s attention. 
SEC. 4. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this Act to any person qualified to obtain a lease for depos-
its of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for—
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale;
(2) the holding of lease sales after such nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
(c) LEASE SALE BIDS.—Bidding for leases under 
this Act shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this Act, the Secretary shall offer for lease 
those tracts the Secretary considers to have the greatest 
potential for the discovery of hydrocarbons, taking 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 Act 
within 22 months after the date of the enactment of 
this Act; and 
(2) conduct additional sales so long as sufficient 
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales. 
SEC. 5. 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 4 any lands to be leased on
the Coastal Plain upon payment by the lessee of such 
bonus as may be accepted by the Secretary. 
(b) SUBSEQUENT
TRANSFERS.—No lease issued 
under this Act may be sold, exchanged, assigned, sublet, 
or otherwise transferred except with the approval of the 
Secretary. Prior to any such approval the Secretary shall 
consult with, and give due consideration to the views of, 
the Attorney General. 
SEC. 6. LEASE TERMS AND CONDITIONS. 
(a) IN GENERAL.—An oil or gas lease issued pursu-
ant to this Act shall—
(1) provide for the payment of a royalty of not 
less than 121⁄2 percent in amount or value of the 
production removed or sold from the lease, as deter-
mined by the Secretary under the regulations appli-
cable to other Federal oil and gas leases; 
(2) provide that the Secretary may close, on a 
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect 
caribou calving areas and other species of fish and 
wildlife; 
(3) require that the lessee of lands within the 
Coastal Plain shall be fully responsible and liable for 
the reclamation of lands within the Coastal Plain 
and any other Federal lands that are adversely af-
fected in connection with exploration, development, 
production, or transportation activities conducted 
under the lease and within the Coastal Plain by the 
lessee or by any of the subcontractors or agents of 
the lessee; 
(4) provide that the lessee may not delegate or 
convey, by contract or otherwise, the reclamation re-
sponsibility and liability to another person without 
the express written approval of the Secretary; 
(5) provide that the standard of reclamation for 
lands required to be reclaimed under this Act shall 
be, as nearly as practicable, a condition capable of 
supporting the uses which the lands were capable of 
supporting prior to any exploration, development, or 
production activities, or upon application by the les-
see, to a higher or better use as approved by the 
Secretary; 
(6) contain terms and conditions relating to 
protection of fish and wildlife, their habitat, and the 
environment as required pursuant to section 3(a)(2); 
(7) provide that the lessee, its agents, and its 
contractors use best efforts to provide a fair share, 
as determined by the level of obligation previously 
agreed to in the 1974 agreement implementing sec-
tion 29 of the Federal Agreement and Grant of
Right of Way for the Operation of the Trans-Alaska 
Pipeline, of employment and contracting for Alaska 
Natives and Alaska Native Corporations from 
throughout the State; 
(8) prohibit the export of oil produced under 
the lease; and 
(9) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with the provisions of this Act and the regulations 
issued under this Act. 
(b) PROJECT LABOR AGREEMENTS.—The Secretary, 
as a term and condition of each lease under this Act and 
in recognizing the Government’s proprietary interest in 
labor stability and in the ability of construction labor and 
management to meet the particular needs and conditions 
of projects to be developed under the leases issued pursu-
ant to this Act and the special concerns of the parties to 
such leases, shall require that the lessee and its agents 
and contractors negotiate to obtain a project labor agree-
ment for the employment of laborers and mechanics on 
production, maintenance, and construction under the 
lease. 
SEC. 7. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.—
The Secretary shall, consistent with the requirements of 
section 3, administer the provisions of this Act through 
regulations, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that—
(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain 
will result in no significant adverse effect on fish 
and wildlife, their habitat, and the environment; 
(2) require the application of the best commer-
cially available technology for oil and gas explo-
ration, development, and production on all new ex-
ploration, development, and production operations; 
and 
(3) ensure that the maximum amount of sur-
face acreage covered by production and support fa-
cilities, including airstrips and any areas covered by 
gravel berms or piers for support of pipelines, does 
not exceed 2,000 acres on the Coastal Plain. 
(b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.—
The Secretary shall also require, with respect to any pro-
posed drilling and related activities, that—
(1) a site-specific analysis be made of the prob-
able effects, if any, that the drilling or related activi-
ties will have on fish and wildlife, their habitat, and 
the environment;
(2) a plan be implemented to avoid, minimize, 
and mitigate (in that order and to the extent prac-
ticable) any significant adverse effect identified 
under paragraph (1); and 
(3) the development of the plan shall occur 
after consultation with the agency or agencies hav-
ing jurisdiction over matters mitigated by the plan. 
(c) REGULATIONS
TO PROTECT COASTAL PLAIN 
FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 
AND THE ENVIRONMENT.—Before implementing the leas-
ing program authorized by this Act, the Secretary shall 
prepare and promulgate regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, and other 
measures designed to ensure that the activities undertaken 
on the Coastal Plain under this Act are conducted in a 
manner consistent with the purposes and environmental 
requirements of this Act. 
(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 Act shall require compliance with all applicable 
provisions of Federal and State environmental law and 
shall also require the following:
(1) Standards at least as effective as the safety 
and environmental mitigation measures set forth in 
items 1 through 29 at pages 167 through 169 of the 
‘‘Final Legislative Environmental Impact State-
ment’’ (April 1987) on the Coastal Plain. 
(2) Seasonal limitations on exploration, develop-
ment, and related activities, where necessary, to 
avoid significant adverse effects during periods of 
concentrated fish and wildlife breeding, denning, 
nesting, spawning, and migration. 
(3) That exploration activities, except for sur-
face geological studies, be limited to the period be-
tween approximately November 1 and May 1 each 
year and that exploration activities shall be sup-
ported by ice roads, winter trails with adequate snow 
cover, ice pads, ice airstrips, and air transport meth-
ods, except that such exploration activities may 
occur at other times, if the Secretary finds that such 
exploration will have no significant adverse effect on 
the fish and wildlife, their habitat, and the environ-
ment of the Coastal Plain. 
(4) Design safety and construction standards 
for all pipelines and any access and service roads, 
that—
(A) minimize, to the maximum extent pos-
sible, adverse effects upon the passage of mi-
gratory species such as caribou; and 
(B) minimize adverse effects upon the flow 
of surface water by requiring the use of cul-
verts, bridges, and other structural devices. 
(5) Prohibitions on public access and use on all 
pipeline access and service roads. 
(6) Stringent reclamation and rehabilitation re-
quirements, consistent with the standards set forth 
in this Act, requiring the removal from the Coastal 
Plain of all oil and gas development and production 
facilities, structures, and equipment upon completion 
of oil and gas production operations, except that the 
Secretary may exempt from the requirements of this 
paragraph those facilities, structures, or equipment 
that the Secretary determines would assist in the 
management of the Arctic National Wildlife Refuge 
and that are donated to the United States for that 
purpose. 
(7) Appropriate prohibitions or restrictions on 
access by all modes of transportation. 
(8) Appropriate prohibitions or restrictions on 
sand and gravel extraction. 
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on 
use of explosives. 
(11) Avoidance, to the extent practicable, of 
springs, streams, and river system; the protection of 
natural surface drainage patterns, wetlands, and ri-
parian habitats; and the regulation of methods or 
techniques for developing or transporting adequate 
supplies of water for exploratory drilling. 
(12) Avoidance or reduction of air traffic-re-
lated disturbance to fish and wildlife. 
(13) Treatment and disposal of hazardous and 
toxic wastes, solid wastes, reserve pit fluids, drilling 
muds and cuttings, and domestic wastewater, includ-
ing an annual waste management report, a haz-
ardous materials tracking system, and a prohibition 
on chlorinated solvents, in accordance with applica-
ble Federal and State environmental law. 
(14) Fuel storage and oil spill contingency plan-
ning. 
(15) Research, monitoring, and reporting re-
quirements. 
(16) Field crew environmental briefings. 
(17) Avoidance of significant adverse effects 
upon subsistence hunting, fishing, and trapping by 
subsistence users.
(18) Compliance with applicable air and water 
quality standards. 
(19) Appropriate seasonal and safety zone des-
ignations around well sites, within which subsistence 
hunting and trapping shall be limited. 
(20) Reasonable stipulations for protection of 
cultural and archeological resources. 
(21) All other protective environmental stipula-
tions, restrictions, terms, and conditions deemed 
necessary by the Secretary. 
(e) CONSIDERATIONS.—In preparing and promul-
gating regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations under this section, the Sec-
retary shall consider the following: 
(1) The stipulations and conditions that govern 
the National Petroleum Reserve-Alaska leasing pro-
gram, as set forth in the 1999 Northeast National 
Petroleum Reserve-Alaska Final Integrated Activity 
Plan/Environmental Impact Statement. 
(2) The environmental protection standards 
that governed the initial Coastal Plain seismic explo-
ration program under parts 37.31 to 37.33 of title 
50, Code of Federal Regulations. 
(3) The land use stipulations for exploratory 
drilling on the KIC–ASRC private lands that are set
forth in Appendix 2 of the August 9, 1983, agree-
ment between Arctic Slope Regional Corporation and 
the United States. 
(f) FACILITY CONSOLIDATION PLANNING.—
(1) IN GENERAL.—The Secretary shall, after 
providing for public notice and comment, prepare 
and update periodically a plan to govern, guide, and 
direct the siting and construction of facilities for the 
exploration, development, production, and transpor-
tation of Coastal Plain oil and gas resources. 
(2) OBJECTIVES.—The plan shall have the fol-
lowing objectives: 
(A) Avoiding unnecessary duplication of fa-
cilities and activities. 
(B) Encouraging consolidation of common 
facilities and activities. 
(C) Locating or confining facilities and ac-
tivities to areas that will minimize impact on 
fish and wildlife, their habitat, and the environ-
ment. 
(D) Utilizing existing facilities wherever 
practicable. 
(E) Enhancing compatibility between wild-
life values and development activities.
(g) ACCESS
TO PUBLIC LANDS.—The Secretary 
shall—
(1) manage public lands in the Coastal Plain 
subject to section subsections (a) and (b) of section 
811 of the Alaska National Interest Lands Con-
servation 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. 8. EXPEDITED JUDICIAL REVIEW. 
(a) FILING OF COMPLAINT.—
(1) DEADLINE.—Subject to paragraph (2), any 
complaint seeking judicial review of any provision of 
this Act or any action of the Secretary under this 
Act shall be filed in any appropriate district court of 
the United States—
(A) except as provided in subparagraph 
(B), within the 90-day period beginning on the 
date of the action being challenged; or 
(B) in the case of a complaint based solely 
on grounds arising after such period, within 90 
days after the complainant knew or reasonably 
should have known of the grounds for the com-
plaint.
(2) VENUE.—Any complaint seeking judicial re-
view of an action of the Secretary under this Act 
may be filed only in the United States Court of Ap-
peals for the District of Columbia. 
(3) LIMITATION
ON
SCOPE
OF
CERTAIN
RE-
VIEW.—Judicial review of a Secretarial decision to 
conduct a lease sale under this Act, including the en-
vironmental analysis thereof, shall be limited to 
whether the Secretary has complied with the terms 
of this Act and shall be based upon the administra-
tive record of that decision. The Secretary’s identi-
fication of a preferred course of action to enable 
leasing to proceed and the Secretary’s analysis of 
environmental effects under this Act shall be pre-
sumed to be correct unless shown otherwise by clear 
and convincing evidence to the contrary. 
(b) LIMITATION ON OTHER REVIEW.—Actions of the 
Secretary with respect to which review could have been 
obtained under this section shall not be subject to judicial 
review in any civil or criminal proceeding for enforcement. 
SEC. 9. FEDERAL AND STATE DISTRIBUTION OF REVENUES. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, of the amount of adjusted bonus, rental, and 
royalty revenues from oil and gas leasing and operations 
authorized under this Act—
(1) 50 percent shall be paid to the State of 
Alaska; and 
(2) except as provided in section 12(d) the bal-
ance shall be deposited into the Treasury as mis-
cellaneous receipts. 
(b) PAYMENTS TO ALASKA.—Payments to the State 
of Alaska under this section shall be made semiannually. 
SEC. 10. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN. 
(a) EXEMPTION.—Title XI of the Alaska National In-
terest Lands Conservation Act of 1980 (16 U.S.C. 3161 
et seq.) shall not apply to the issuance by the Secretary 
under section 28 of the Mineral Leasing Act (30 U.S.C. 
185) of rights-of-way and easements across the Coastal 
Plain for the transportation of oil and gas. 
(b) TERMS AND CONDITIONS.—The Secretary shall 
include in any right-of-way or easement referred to in sub-
section (a) such terms and conditions as may be necessary 
to ensure that transportation of oil and gas does not result 
in a significant adverse effect on the fish and wildlife, sub-
sistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be 
sited or designed so as to avoid unnecessary duplication 
of roads and pipelines. 
(c) REGULATIONS.—The Secretary shall include in 
regulations under section 3(g) provisions granting rights-
of-way and easements described in subsection (a) of this 
section. 
SEC. 11. CONVEYANCE. 
In order to maximize Federal revenues by removing 
clouds on title to lands and clarifying land ownership pat-
terns within the Coastal Plain, the Secretary, notwith-
standing the provisions of section 1302(h)(2) of the Alas-
ka National Interest Lands Conservation Act (16 U.S.C. 
3192(h)(2)), shall convey—
(1) to the Kaktovik Inupiat Corporation the 
surface estate of the lands described in paragraph 1 
of Public Land Order 6959, to the extent necessary 
to fulfill the Corporation’s entitlement under section 
12 of the Alaska Native Claims Settlement Act (43 
U.S.C. 1611) in accordance with the terms and con-
ditions of the Agreement between the Department of 
the Interior, the United States Fish and Wildlife 
Service, the Bureau of Land Management, and the 
Kaktovik Inupiat Corporation effective January 22, 
1993; and 
(2) to the Arctic Slope Regional Corporation 
the remaining subsurface estate to which it is enti-
tled pursuant to the August 9, 1983, agreement be-
tween the Arctic Slope Regional Corporation and the 
United States of America.
SEC. 12. LOCAL GOVERNMENT IMPACT AID AND COMMU-
NITY SERVICE ASSISTANCE. 
(a) FINANCIAL ASSISTANCE AUTHORIZED.—
(1) IN
GENERAL.—The Secretary may use 
amounts available from the Coastal Plain Local Gov-
ernment Impact Aid Assistance Fund established by 
subsection (d) to provide timely financial assistance 
to entities that are eligible under paragraph (2) and 
that are directly impacted by the exploration for or 
production of oil and gas on the Coastal Plain under 
this Act. 
(2) ELIGIBLE
ENTITIES.—The North Slope 
Borough, Kaktovik, and other boroughs, municipal 
subdivisions, villages, and any other community or-
ganized under Alaska State law shall be eligible for 
financial assistance under this section. 
(b) USE
OF
ASSISTANCE.—Financial assistance 
under this section may be used only for—
(1) planning for mitigation of the potential ef-
fects of oil and gas exploration and development on 
environmental, social, cultural, recreational and sub-
sistence values; 
(2) implementing mitigation plans and main-
taining mitigation projects; 
(3) developing, carrying out, and maintaining 
projects and programs that provide new or expanded
public facilities and services to address needs and 
problems associated with such effects, including fire-
fighting, police, water, waste treatment, medivac, 
and medical services; and 
(4) establishment of a coordination office, by 
the North Slope Borough, in the City of Kaktovik, 
which shall—
(A) coordinate with and advise developers 
on local conditions, impact, and history of the 
areas utilized for development; and 
(B) provide to the Committee on Resources 
of the House of Representatives and the Com-
mittee on Energy and Resources of the Senate 
an annual report on the status of coordination 
between developers and the communities af-
fected 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
to the Secretary or through the North Slope Bor-
ough. 
(3) APPLICATION ASSISTANCE.—The Secretary 
shall work closely with and assist the North Slope 
Borough and other communities eligible for assist-
ance under this section in developing and submitting 
applications for assistance under this section. 
(d) ESTABLISHMENT OF FUND.—
(1) IN GENERAL.—There is established in the 
Treasury the Coastal Plain Local Government Im-
pact Aid Assistance Fund. 
(2) USE.—Amounts in the fund may be used 
only for providing financial assistance under this 
section. 
(3) DEPOSITS.—Subject to paragraph (4), there 
shall be deposited into the fund amounts received by 
the United States as revenues derived from rents, 
bonuses, and royalties under on leases and lease 
sales authorized under this Act. 
(4) LIMITATION
ON
DEPOSITS.—The total 
amount in the fund may not exceed $11,000,000. 
(5) INVESTMENT
OF
BALANCES.—The Sec-
retary of the Treasury shall invest amounts in the 
fund in interest bearing government securities.
(e) AUTHORIZATION OF APPROPRIATIONS.—To pro-
vide financial assistance under this section there is author-
ized to be appropriated to the Secretary from the Coastal 
Plain Local Government Impact Aid Assistance Fund 
$5,000,000 for each fiscal year.
Æ