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‘‘(i) is part of a unit agreement cov-
ering a lease described in subparagraph 
(A) or (B); and 
‘‘(ii) has not been previously con-
tracted out of the unit. 
‘‘(3) APPLICABILITY.—This subsection applies 
to a lease that— 
‘‘(A) is entered into before, on, or after the 
date of enactment of the Energy Policy Act of 
2005; and 
‘‘(B) is effective on or after the date of en-
actment of that Act. 
‘‘(j) UNIT AGREEMENTS.— 
‘‘(1) IN GENERAL.—For the purpose of con-
servation of the natural resources of all or part of 
any oil or gas pool, field, reservoir, or like area, les-
sees (including representatives) of the pool, field, 
reservoir, or like area may unite with each other, or 
jointly or separately with others, in collectively 
adopting and operating under a unit agreement for 
all or part of the pool, field, reservoir, or like area 
(whether or not any other part of the oil or gas pool, 
field, reservoir, or like area is already subject to any 
cooperative or unit plan of development or oper-
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ation), if the Secretary determines the action to be 
necessary or advisable in the public interest. 
‘‘(2) PARTICIPATION BY STATE OF ALASKA.— 
The Secretary shall ensure that the State of Alaska 
is provided the opportunity for active participation 
concerning creation and management of units 
formed or expanded under this subsection that in-
clude acreage in which the State of Alaska has an 
interest in the mineral estate. 
‘‘(3) PARTICIPATION
BY
REGIONAL
CORPORA-
TIONS.—The Secretary shall ensure that any Re-
gional Corporation (as defined in section 3 of the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1602)) is provided the opportunity for active partici-
pation concerning creation and management of units 
that include acreage in which the Regional Corpora-
tion has an interest in the mineral estate. 
‘‘(4) 
PRODUCTION
ALLOCATION
METHOD-
OLOGY.—The Secretary may use a production alloca-
tion methodology for each participating area within 
a unit created for land in the Reserve, State of Alas-
ka land, or Regional Corporation land shall, when 
appropriate, be based on the characteristics of each 
specific oil or gas pool, field, reservoir, or like area 
to take into account reservoir heterogeneity and a
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real variation in reservoir producibility across diverse 
leasehold interests. 
‘‘(5) BENEFIT OF OPERATIONS.—Drilling, pro-
duction,’’; 
(9) by striking ‘‘When separate’’ and inserting 
the following: 
‘‘(6) POOLING.—If separate’’; 
(10) by inserting ‘‘(in consultation with the 
owners of the other land)’’ after ‘‘determined by the 
Secretary of the Interior’’; 
(11) by striking ‘‘thereto; (10) to’’ and all that 
follows through ‘‘the terms provided therein.’’ and 
inserting 
‘‘to the agreement. 
‘‘(k) EXPLORATION INCENTIVES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) WAIVER, SUSPENSION, OR
REDUC-
TION.—To encourage the greatest ultimate re-
covery of oil or gas or in the interest of con-
servation, the Secretary may waive, suspend, or 
reduce the rental fees or minimum royalty, or 
reduce the royalty on an entire leasehold (in-
cluding on any lease operated pursuant to a 
unit agreement), if (after consultation with the 
State of Alaska and the North Slope Borough
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of Alaska and the concurrence of any Regional 
Corporation for leases that include lands avail-
able for acquisition by the Regional Corporation 
under the provisions of section 1431(o) of the 
Alaska National Interest Lands Conservation 
Act (16 U.S.C. 3101 et seq.)) the Secretary de-
termines that the waiver, suspension, or reduc-
tion is in the public interest. 
‘‘(B) APPLICABILITY.—This paragraph ap-
plies to a lease that— 
‘‘(i) is entered into before, on, or after 
the date of enactment of the Energy Policy 
Act of 2005; and 
‘‘(ii) is effective on or after the date 
of enactment of that Act.’’; 
(12) by striking ‘‘The Secretary is authorized 
to’’ and inserting the following: 
‘‘(2) SUSPENSION OF OPERATIONS AND PRO-
DUCTION.—The Secretary may’’; 
(13) by striking ‘‘In the event’’ and inserting 
the following: 
‘‘(3) SUSPENSION OF PAYMENTS.—If’’; 
(14) by striking ‘‘thereto; and (11) all’’ and in-
serting 
‘‘to the lease.
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‘‘(l) RECEIPTS.—All’’; 
(15) by redesignating clauses (A), (B), and (C) 
as clauses (1), (2), and (3), respectively; 
(16) by striking ‘‘Any agency’’ and inserting 
the following: 
‘‘(m) EXPLORATIONS.—Any agency’’; 
(17) by striking ‘‘Any action’’ and inserting the 
following: 
‘‘(n) ENVIRONMENTAL IMPACT STATEMENTS.— 
‘‘(1) JUDICIAL REVIEW.—Any action’’; 
(18) by striking ‘‘The detailed’’ and inserting 
the following: 
‘‘(2) INITIAL LEASE SALES.—The detailed’’; 
(19) by striking ‘‘of the Naval Petroleum Re-
serves Production Act of 1976 (90 Stat. 304; 42 
U.S.C. 6504)’’; and 
(20) by adding at the end the following: 
‘‘(o) WAIVER OF ADMINISTRATION FOR CONVEYED 
LANDS.—Notwithstanding section 14(g) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1613(g)) or any 
other provision of law— 
‘‘(1) the Secretary of the Interior shall waive 
administration of any oil and gas lease insofar as 
such lease covers any land in the National Petro-
leum Reserve in Alaska in which the subsurface es-