I
107TH CONGRESS
1ST SESSION
H. R. 2436
To provide secure energy supplies for the people of the United States, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 10, 2001
Mr. HANSEN (for himself, Mr. YOUNG of Alaska, Mr. TAUZIN, Mrs. CUBIN,
Mr. THORNBERRY, Mr. OTTER, and Mr. CALVERT) introduced the fol-
lowing bill; which was referred to the Committee on Resources, and in
addition to the Committee on Energy and Commerce, 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 provide secure energy supplies for the people of the
United States, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Energy Security Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—GENERAL PROTECTIONS FOR ENERGY SUPPLY AND
SECURITY
Sec. 101. Study of existing rights-of-way on Federal lands to determine capa-
bility to support new pipelines or other transmission facilities.
Sec. 102. Inventory of energy production potential of all Federal public lands.
Sec. 103. Review of regulations to eliminate barriers to emerging energy tech-
nology.
Sec. 104. Interagency agreement on environmental review of interstate natural
gas pipeline projects.
TITLE II—OIL AND GAS DEVELOPMENT
Subtitle A—Offshore Oil and Gas
Sec. 201. Short title.
Sec. 202. Lease sales in Western and Central Planning Area of the Gulf of
Mexico.
Sec. 203. Savings clause.
Sec. 204. Analysis of Gulf of Mexico field size distribution, international com-
petitiveness, and incentives for development.
Subtitle B—Improvements to Federal Oil and Gas Management
Sec. 221. Short title.
Sec. 222. Study of impediments to efficient lease operations.
Sec. 223. Elimination of unwarranted denials and stays.
Sec. 224. Limitations on cost recovery for applications.
Sec. 225. Consultation with Secretary of Agriculture.
Subtitle C—Miscellaneous
Sec. 231. Offshore subsalt development.
Sec. 232. Program on oil and gas royalties in kind.
Sec. 233. Oil and Gas Technology Transfer Centers.
Sec. 234. Marginal well production incentives.
Sec. 235. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE III—GEOTHERMAL ENERGY DEVELOPMENT
Sec. 301. Royalty reduction and relief.
Sec. 302. Exemption from royalties for direct use of low temperature geo-
thermal energy resources.
Sec. 303. Amendments relating to leasing on Forest Service lands.
Sec. 304. Deadline for determination on pending noncompetitive lease applica-
tions.
Sec. 305. Opening of public lands under military jurisdiction.
Sec. 306. Application of amendments.
Sec. 307. Review and report to Congress.
Sec. 308. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE IV—HYDROPOWER
Sec. 401. Study and report on increasing electric power production capability
of existing facilities.
Sec. 402. Installation of powerformer at Folsom power plant, California.
Sec. 403. Conservation through pump modernization.
Sec. 404. Study and implementation of increased operational efficiencies in hy-
droelectric power projects.
Sec. 405. Shift of project loads to off-peak periods.
TITLE V—ARCTIC COASTAL PLAIN DOMESTIC ENERGY
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Leasing program for lands within the Coastal Plain.
Sec. 504. Lease sales.
Sec. 505. Grant of leases by the Secretary.
Sec. 506. Lease terms and conditions.
Sec. 507. Coastal Plain environmental protection.
Sec. 508. Expedited judicial review.
Sec. 509. Rights-of-way across the Coastal Plain.
Sec. 510. Conveyance.
Sec. 511. Local government impact aid and community service assistance.
TITLE 
I—GENERAL 
PROTEC-
TIONS FOR ENERGY SUPPLY
AND SECURITY
SEC. 101. STUDY OF EXISTING RIGHTS-OF-WAY ON FED-
ERAL LANDS TO DETERMINE CAPABILITY TO
SUPPORT NEW PIPELINES OR OTHER TRANS-
MISSION FACILITIES.
(a) IN GENERAL.—Within one year after the date of
enactment of this Act, the head of each Federal agency
that has authorized a right-of-way across Federal lands
for transportation of energy supplies or transmission of
electricity shall review each such right-of-way and submit
a report to the Secretary of Energy and the Chairman
of 
the 
Federal 
Energy 
Regulatory 
Commission
regarding—
(1) whether the right-of-way can be used to
support new or additional capacity; and
(2) what modifications or other changes, if any,
would be necessary to accommodate such additional
capacity.
(b) CONSULTATIONS AND CONSIDERATIONS.—In per-
forming the review, the head of each agency shall—
(1) consult with agencies of State or local units
of government as appropriate; and
(2) consider whether safety or other concerns
related to current uses might preclude the avail-
ability of a right-of-way for additional or new trans-
portation or transmission facilities, and set forth
those considerations in the report.
SEC. 102. INVENTORY OF ENERGY PRODUCTION POTEN-
TIAL OF ALL FEDERAL PUBLIC LANDS.
(a) INVENTORY REQUIREMENT.—The Secretary of
the Interior, in consultation with the Secretary of Agri-
culture and the Secretary of Energy, shall conduct an in-
ventory of the energy production potential of all Federal
public lands other than national park lands and lands in
any wilderness area, with respect to wind, solar, coal, and
geothermal power production.
(b) LIMITATIONS.—
(1) IN GENERAL.—The Secretary shall not in-
clude in the inventory under this section the matters
to be identified in the inventory under section 604
of the Energy Act of 2000 (42 U.S.C. 6217).
(2) WIND AND SOLAR POWER.—The inventory
under this section—
(A) with respect to wind power production
shall be limited to sites having a mean average
wind speed—
(i) exceeding 12.5 miles per hour at a
height of 33 feet; and
(ii) exceeding 15.7 miles per hour at
a height of 164 feet;
(B) 
with 
respect 
to 
solar 
power
production—
(i) shall be limited to areas rated as
receiving 450 watts per square meter or
greater; and
(ii) may exclude Alaska.
(b) EXAMINATION OF RESTRICTIONS AND IMPEDI-
MENTS.—The inventory shall identify the extent and na-
ture of any restrictions or impediments to the development
of such energy production potential.
(c) GEOTHERMAL POWER.—The inventory shall in-
clude an update of the 1978 Assessment of Geothermal
Resources by the United States Geological Survey.
(d) COMPLETION AND UPDATING.—The Secretary—
(1) shall complete the inventory by not later
than 2 years after the date of the enactment of this
Act; and
(2) shall update the inventory regularly there-
after.
(e) REPORTS.—The Secretary shall submit to the
Committee on Resources of the House of Representatives
and to the Committee on Energy and Natural Resources
of the Senate and make publicly available—
(1) a report containing the inventory under this
section, by not later than 2 years after the effective
date of this section; and
(2) each update of such inventory.
SEC. 103. REVIEW OF REGULATIONS TO ELIMINATE BAR-
RIERS TO EMERGING ENERGY TECHNOLOGY.
(a) IN GENERAL.—Each Federal agency shall carry
out a review of its regulations and standards to determine
those that act as a barrier to market entry for emerging
energy-efficient technologies, including fuel cells, combined
heat and power, and distributed generation (including
small-scale renewable energy).
(b) REPORT
TO CONGRESS.—No later than 18
months after date of enactment of this Act, each agency
shall provide a report to the Congress and the President
detailing all regulatory barriers to emerging energy-effi-
cient technologies, along with actions the agency intends
to take, or has taken, to remove such barriers.
(c) PERIODIC REVIEW.—Each agency shall subse-
quently review its regulations and standards in this man-
ner no less frequently than every 5 years, and report their
findings to the Congress and the President. Such reviews
shall include a detailed analysis of all agency actions taken
to remove existing barriers to emerging energy tech-
nologies.
SEC. 104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL
REVIEW OF INTERSTATE NATURAL GAS PIPE-
LINE PROJECTS.
(a) IN GENERAL.—The Secretary of Energy, in co-
ordination with the Federal Energy Regulatory Commis-
sion, shall establish an administrative interagency task
force to develop an interagency agreement to expedite and
facilitate the environmental review and permitting of
interstate natural gas pipeline projects.
(b) TASK FORCE MEMBERS.—The task force shall in-
clude a representative of each of the Bureau of Land Man-
agement, the United States Fish and Wildlife Service, the
Army Corps of Engineers, the Forest Service, the Envi-
ronmental Protection Agency, the Advisory Council on
Historic Preservation, and such other agencies as the Sec-
retary of Energy and the Federal Energy Regulatory
Commission consider appropriate.
(c) TERMS OF AGREEMENT.—The interagency agree-
ment shall require that agencies complete their review of
interstate pipeline projects within a specific period of time
after referral of the matter by the Federal Energy Regu-
latory Commission.
(d) SUBMITTAL OF AGREEMENT.—The Secretary of
Energy shall submit a final interagency agreement under
this section to the Congress by not later than 6 months
after the effective date of this section.
TITLE II—OIL AND GAS
DEVELOPMENT
Subtitle A—Offshore Oil and Gas
SEC. 201. SHORT TITLE.
This subtitle may be referred to as the ‘‘Royalty Re-
lief Extension Act of 2001’’.
SEC. 202. LEASE SALES IN WESTERN AND CENTRAL PLAN-
NING AREA OF THE GULF OF MEXICO.
(a) IN GENERAL.—For all tracts located in water
depths of greater than 200 meters in the Western and
Central Planning Area of the Gulf of Mexico, including
that portion of the Eastern Planning Area of the Gulf of
Mexico encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude, any oil or gas lease
sale under the Outer Continental Shelf Lands Act occur-
ring within 2 years after the date of enactment of this
Act shall use the bidding system authorized in section
8(a)(1)(H) of the Outer Continental Shelf Lands Act (30
U.S.C. 1337(a)(1)(H)), except that the suspension of roy-
alties shall be set at a volume of not less than the fol-
lowing:
(1) 17.5 million barrels of oil equivalent for
fields in water depths of 200 to 400 meters.
(2) 52.5 million barrels of oil equivalent for
fields in 400 to 800 meters of water.
(3) 9 million barrels of oil equivalent for each
lease in water depths of 800 to 1,600 meters.
(4) 12 million barrels of oil equivalent for each
lease in water depths greater than 1,600 meters.
(b) RELATIONSHIP TO EXISTING AUTHORITY.—Ex-
cept as expressly provided in this section, nothing in this
section is intended to limit the authority of the Secretary
of the Interior under the Outer Continental Shelf Lands
Act (43 U.S.C. 1301 et seq.) to provide royalty suspen-
sion.
SEC. 203. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect
any offshore pre-leasing, leasing, or development morato-
rium, including any moratorium applicable to the Eastern
Planning Area of the Gulf of Mexico located off the Gulf
Coast of Florida.
SEC. 204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DIS-
TRIBUTION, INTERNATIONAL COMPETITIVE-
NESS, AND INCENTIVES FOR DEVELOPMENT.
(a) IN GENERAL.—The Secretary of the Interior and
the Secretary of Energy shall enter into appropriate ar-
rangements with the National Academy of Sciences to
commission the Academy to perform the following:
(1) Conduct an analysis and review of existing
Gulf of Mexico oil and natural gas resource assess-
ments, including—
(A) analysis and review of assessments re-
cently performed by the Minerals Management
Service, the 1999 National Petroleum Council
Gas Study, the Department of Energy’s Off-
shore Marginal Property Study, and the Ad-
vanced Resources International, Inc. Deepwater
Gulf of Mexico model; and
(B) evaluation and comparison of the accu-
racy of assumptions of the existing assessments
with respect to resource field size distribution,
hydrocarbon potential, and scenarios for leas-
ing, exploration, and development.
(2) Evaluate the lease terms and conditions of-
fered by the Minerals Management Service for Lease
Sale 178, and compare the financial incentives of-
fered by such terms and conditions to financial in-
centives offered by the terms and conditions that
apply under leases for other offshore areas that are
competing for the same limited offshore oil and gas
exploration and development capital, including off-
shore areas of West Africa and Brazil.
(3) Recommend what level of incentives for all
water depths are appropriate in order to ensure that
the United States optimizes the domestic supply of
oil and natural gas from the offshore areas of the
Gulf of Mexico that are not subject to current leas-
ing moratoria. Recommendations under this para-
graph should be made in the context of the impor-
tance of the oil and natural gas resources of the
Gulf of Mexico to the future energy and economic
needs of the United States.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary of the Interior
shall submit a report to the Committee on Resources in
the House of Representatives and the Committee on En-
ergy and Natural Resources in the Senate, summarizing
the findings of the National Academy of Sciences pursuant
to subsection (a) and providing recommendations of the
Secretary for new policies or other actions that could help
to further increase oil and natural gas production from
the Gulf of Mexico.
Subtitle B—Improvements to
Federal Oil and Gas Management
SEC. 221. SHORT TITLE.
This subtitle may be cited as the ‘‘Federal Oil and
Gas Lease Management Improvement Demonstration Pro-
gram Act of 2001’’.
SEC. 222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE
OPERATIONS.
(a) IN GENERAL.—The Secretary of the Interior and
the Secretary of Agriculture shall jointly undertake a
study of the impediments to efficient oil and gas leasing
and operations on Federal onshore lands in order to iden-
tify means by which unnecessary impediments to the expe-
ditious exploration and production of oil and natural gas
on such lands can be removed.
(b) CONTENTS.—The study under subsection (a)
shall include the following:
(1) A review of the process by which Federal
land managers accept or reject an offer to lease, in-
cluding the timeframes in which such offers are
acted upon, the reasons for any delays in acting
upon such offers, and any recommendations for ex-
pediting the response to such offers.
(2) A review of the approval process for appli-
cations for permits to drill, including the timeframes
in which such applications are approved, the impact
of compliance with other Federal laws on such time-
frames, any other reasons for delays in making such
approvals, and any recommendations for expediting
such approvals.
(3) A review of the approval process for surface
use plans of operation, including the timeframes in
which such applications are approved, the impact of
compliance with other Federal laws on such time-
frames, any other reasons for delays in making such
approvals, and any recommendations for expediting
such approvals.
(4) A review of the process for administrative
appeal of decisions or orders of officers or employees
of the Bureau of Land Management with respect to
a Federal oil or gas lease, including the timeframes
in which such appeals are heard and decided, any
reasons for delays in hearing or deciding such ap-
peals, and any recommendations for expediting the
appeals process.
(c) REPORT.—The Secretaries shall report the find-
ings and recommendations resulting from the study re-
quired by this section to the Committee on Resources of
the House of Representatives and to the Committee on
Energy and Natural Resources of the Senate no later than
6 months after the date of the enactment of this Act.
SEC. 223. ELIMINATION OF UNWARRANTED DENIALS AND
STAYS.
(a) IN GENERAL.—The Secretary shall ensure that
unwarranted denials and stays of lease issuance and un-
warranted restrictions on lease operations are eliminated
from the administration of oil and natural gas leasing on
Federal land.
(b) LAND DESIGNATED FOR MULTIPLE USE.—Fed-
eral land available for oil and natural gas leasing under
any Bureau of Land Management resource management
plan or Forest Service leasing analysis shall be available
without lease stipulations more stringent than restrictions
on surface use and operations imposed under the laws (in-
cluding regulations) of the oil and natural gas conserva-
tion authority of the State in which the lands are located,
unless the Secretary includes in the decision approving the
management plan or leasing analysis or in the Secretary’s
acceptance of an offer to lease a written explanation why
more stringent stipulations are warranted.
(c) REJECTION OF OFFER TO LEASE.—
(1) IN GENERAL.—If the Secretary rejects an
offer to lease Federal lands for oil or natural gas de-
velopment on the ground that the land is unavailable
for oil and natural gas leasing, the Secretary shall
provide a written, detailed explanation of the reasons
the land is unavailable for leasing.
(2) PREVIOUS RESOURCE MANAGEMENT DECI-
SION.—If the determination of unavailability is
based on a previous resource management decision,
the explanation shall include a careful assessment of
whether the reasons underlying the previous decision
are still persuasive.
(3) SEGREGATION OF AVAILABLE LAND FROM
UNAVAILABLE LAND.—The Secretary may not reject
an offer to lease Federal land for oil and natural gas
development that is available for such leasing on the
ground that the offer includes land unavailable for
leasing. The Secretary shall segregate available land
from unavailable land, on the offeror’s request fol-
lowing notice by the Secretary, before acting on the
offer to lease.
(d) DISAPPROVAL OR REQUIRED MODIFICATION OF
SURFACE USE PLANS OF OPERATIONS AND APPLICATION
FOR PERMIT TO DRILL.—The Secretary shall provide a
written, detailed explanation of the reasons for dis-
approving or requiring modifications of any surface use
plan of operations or application for permit to drill with
respect to oil or natural gas development on Federal lands.
SEC. 224. LIMITATION ON COST RECOVERY FOR APPLICA-
TIONS.
Notwithstanding sections 304 and 504 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C.
1734, 1764) and section 9701 of title 31, United States
Code, the Secretary shall not recover the Secretary’s costs
with respect to applications and other documents relating
to oil and gas leases.
SEC. 225. CONSULTATION WITH SECRETARY OF AGRI-
CULTURE.
Section 17(h) of the Mineral Leasing Act (30 U.S.C.
226(h)) is amended to read as follows:
‘‘(h) In issuing any lease on National Forest System
lands reserved from the public domain, the Secretary of
the Interior shall consult with the Secretary of Agriculture
in determining stipulations on surface use under the lease.
Subtitle C—Miscellaneous
SEC. 231. OFFSHORE SUBSALT DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act
of 1953 (43 U.S.C. 1334) is amended by adding at the
end the following:
‘‘(k) SUSPENSION
OF OPERATIONS
FOR SUBSALT
EXPLORATION.—Notwithstanding any other provision of
law or regulation, to prevent waste caused by the drilling
of unnecessary wells and to facilitate the discovery of addi-
tional hydrocarbon reserves, the Secretary may grant a re-
quest for a suspension of operations under any lease to
allow the reprocessing and reinterpretation of geophysical
data to identify and define drilling objectives beneath
allocthonus salt sheets.’’.
SEC. 232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.
(a) APPLICABILITY OF SECTION.—Notwithstanding
any other provision of law, the provisions of this section
shall apply to all royalty in kind accepted by the Secretary
of the Interior under any Federal oil or gas lease or permit
under section 36 of the Mineral Leasing Act (30 U.S.C.
192), section 27 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1353), or any other mineral leasing law, in
the period beginning on the date of enactment of this Act
through September 30, 2006.
(b) TERMS AND CONDITIONS.—All royalty accruing
to the United States under any Federal oil or gas lease
or permit under the Mineral Leasing Act (30 U.S.C. 181
et seq.) or the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) shall, on the demand of the Secretary
of the Interior, be paid in oil or gas. If the Secretary of
the Interior makes such a demand, the following provi-
sions apply to such payment:
(1) Delivery by, or on behalf of, the lessee of
the royalty amount and quality due under the lease
satisfies the lessee’s royalty obligation for the
amount delivered, except that transportation and
processing reimbursements paid to, or deductions
claimed by, the lessee shall be subject to review and
audit.
(2) Royalty production shall be placed in mar-
ketable condition by the lessee at no cost to the
United States.
(3) The Secretary of the Interior may—
(A) sell or otherwise dispose of any royalty
oil or gas taken in kind for not less than the
market price; and
(B) transport or process any oil or gas roy-
alty taken in kind.
(4) The Secretary of the Interior may, notwith-
standing section 3302 of title 31, United States
Code, retain and use a portion of the revenues from
the sale of oil and gas royalties taken in kind that
otherwise would be deposited to miscellaneous re-
ceipts, without regard to fiscal year limitation, or
may use royalty production, to pay the cost of—
(A) transporting the oil or gas,
(B) processing the gas, or
(C) disposing of the oil or gas.
(5) The Secretary may not use revenues from
the sale of oil and gas royalties taken in kind to pay
for personnel, travel, or other administrative costs of
the Federal Government.
(c) REIMBURSEMENT OF COST.—If the lessee, pursu-
ant to an agreement with the United States or as provided
in the lease, processes the royalty gas or delivers the roy-
alty oil or gas at a point not on or adjacent to the lease
area, the Secretary of the Interior shall—
(1) reimburse the lessee for the reasonable costs
of transportation (not including gathering) from the
lease to the point of delivery or for processing costs;
or
(2) at the discretion of the Secretary of the In-
terior, allow the lessee to deduct such transportation
or processing costs in reporting and paying royalties
in value for other Federal oil and gas leases.
(d) BENEFIT TO THE UNITED STATES REQUIRED.—
The Secretary may receive oil or gas royalties in kind only
if the Secretary determines that receiving such royalties
provides benefits to the United States greater than or
equal to those that would be realized under a comparable
royalty in value program.
(e) REPORT TO CONGRESS.—For each of the fiscal
years 2002 through 2006 in which the United States takes
oil or gas royalties in kind from production in any State
or from the Outer Continental Shelf, excluding royalties
taken in kind and sold to refineries under subsection (h),
the Secretary of the Interior shall provide a report to the
Congress describing—
(1) the methodology or methodologies used by
the Secretary to determine compliance with sub-
section (d), including performance standards for
comparing amounts received by the United States
derived from such royalties in kind to amounts likely
to have been received had royalties been taken in
value;
(2) an explanation of the evaluation that led the
Secretary to take royalties in kind from a lease or
group of leases, including the expected revenue effect
of taking royalties in kind;
(3) actual amounts received by the United
States derived from taking royalties in kind, and
costs and savings incurred by the United States as-
sociated with taking royalties in kind; and
(4) an evaluation of other relevant public bene-
fits or detriments associated with taking royalties in
kind.
(f) DEDUCTION OF EXPENSES.—
(1) IN
GENERAL.—Before making payments
under section 35 of the Mineral Leasing Act (30
U.S.C. 191) or section 8(g) of the Outer Continental
Shelf Lands Act (30 U.S.C. 1337(g)) of revenues
derived from the sale of royalty production taken in
kind from a lease, the Secretary of the Interior shall
deduct amounts paid or deducted under subsections
(b)(4) and (c), and shall deposit such amounts to
miscellaneous receipts.
(2) ACCOUNTING
FOR
DEDUCTIONS.—If the
Secretary of the Interior allows the lessee to deduct
transportation or processing costs under subsection
(c), the Secretary may not reduce any payments to
recipients of revenues derived from any other Fed-
eral oil and gas lease as a consequence of that de-
duction.
(g) CONSULTATION WITH STATES.—The Secretary
of the Interior—
(1) shall consult with a State before conducting
a royalty in kind program under this title within the
State, and may delegate management of any portion
of the Federal royalty in kind program to such State
except as otherwise prohibited by Federal law; and
(2) shall consult annually with any State from
which Federal oil or gas royalty is being taken in
kind to ensure to the maximum extent practicable
that the royalty in kind program provides revenues
to the State greater than or equal to those which
would be realized under a comparable royalty in
value program.
(h) PROVISIONS FOR SMALL REFINERIES.—
(1) PREFERENCE.—If the Secretary of the In-
terior determines that sufficient supplies of crude oil
are not available in the open market to refineries not
having their own source of supply for crude oil, the
Secretary may grant preference to such refineries in
the sale of any royalty oil accruing or reserved to the
United States under Federal oil and gas leases
issued under any mineral leasing law, for processing
or use in such refineries at private sale at not less
than the market price.
(2) PRORATION
AMONG
REFINERIES
IN
PRO-
DUCTION AREA.—In disposing of oil under this sub-
section, the Secretary of the Interior may, at the
discretion of the Secretary, prorate such oil among
such refineries in the area in which the oil is pro-
duced.
(i) DISPOSITION TO FEDERAL AGENCIES.—
(1) ONSHORE ROYALTY.—Any royalty oil or gas
taken by the Secretary in kind from onshore oil and
gas leases may be sold at not less than the market
price to any department or agency of the United
States.
(2) OFFSHORE ROYALTY.—Any royalty oil or
gas taken in kind from Federal oil and gas leases on
the Outer Continental Shelf may be disposed of only
under section 27 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1353).
(j) PREFERENCE FOR FEDERAL LOW-INCOME EN-
ERGY ASSISTANCE PROGRAMS.—In disposing of royalty oil
or gas taken in kind under this section, the Secretary may
grant a preference to any person, including any State or
Federal agency, for the purpose of providing additional re-
sources to any Federal low-income energy assistance pro-
gram.
SEC. 233. OIL AND GAS TECHNOLOGY TRANSFER CENTERS.
(a) IN GENERAL.—The Secretary of the Interior may
establish and operate in accordance with this section re-
gional centers administered by the United States Geologi-
cal Survey. Each such center shall be known as an United
States Geological Survey Oil and Gas Technology Transfer
Center.
(b) PARTNERSHIP.—Each Center shall be established
and operated under a partnership with the government of
the State in which the Center is located, through the agen-
cy of the State that is responsible for geological survey
activities.
(c) FUNCTIONS.—The Secretary, through each such
Center, shall—
(1) conduct oil and natural gas exploration and
production research in the region in which the Cen-
ter is located; and
(2) archive and provide public access to data re-
garding oil and natural gas reserves and production
in the region, including information developed
through research under paragraph (1).
(d) RESEARCH.—
(1) COST SHARING.—The Federal share of the
cost of research conducted under this section may
not exceed 50 percent.
(2) 
PRIVATE
CONTRIBUTIONS.—The
Secretary—
(A) may accept private contributions of
property and services for research conducted
under this section; and
(B) shall apply the value of such contribu-
tions to the non-Federal share of the costs of
such research.
SEC. 234. MARGINAL WELL PRODUCTION INCENTIVES.
To enhance the economics of marginal oil and gas
production by increasing the ultimate recovery from mar-
ginal wells when the cash price of West Texas Inter-
mediate crude oil, as posted on the Dow Jones Commod-
ities Index chart, is less than $15 per barrel for 180 con-
secutive pricing days or when the price of natural gas de-
livered at Henry Hub, Louisiana, is less than $2.00 per
million British thermal units for 180 consecutive days, the
Secretary shall reduce the royalty rate as production de-
clines for—
(1) onshore oil wells producing less than 30
barrels per day;
(2) onshore gas wells producing less than 120
million British thermal units per day;
(3) offshore oil wells producing less than 300
barrels of oil per day; and
(4) offshore gas wells producing less than 1,200
million British thermal units per day.
SEC. 235. REIMBURSEMENT FOR COSTS OF NEPA ANAL-
YSES, DOCUMENTATION, AND STUDIES.
The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended by inserting after section 37 the following:
‘‘REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES,
DOCUMENTATION, AND STUDIES
‘‘SEC. 38. (a) IN GENERAL.—The Secretary of the
Interior shall reimburse a person who is a lessee, operator,
operating rights owner, or applicant for an oil or gas lease
under this Act for costs incurred by the person in pre-
paring any project-level analysis, documentation, or re-
lated study required under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect
to the lease, through royalty credits attributable to the
lease, unit agreement, or project area for which the anal-
ysis, documentation, or related study is prepared.
‘‘(b) CONDITIONS.—The Secretary shall provide re-
imbursement under subsection (b) only if—
‘‘(1) adequate funding to enable the Secretary
to timely prepare the analysis, documentation, or re-
lated study is not appropriated;
‘‘(2) the person paid the costs voluntarily; and
‘‘(3) the person maintains records of its costs
in accordance with regulations prescribed by the
Secretary.’’.
(c) APPLICATION.—The amendments made by this
section shall apply with respect to any lease entered into
before, on, or after the date of the enactment of this Act.
(d) DEADLINE FOR REGULATIONS.—The Secretary
shall issue regulations implementing the amendments
made by this section by not later than 90 days after the
date of the enactment of this Act.
TITLE III—GEOTHERMAL
ENERGY DEVELOPMENT
SEC. 301. ROYALTY REDUCTION AND RELIEF.
(a) ROYALTY REDUCTION.—Section 5(a) of the Geo-
thermal Steam Act of 1970 (30 U.S.C. 1004(a)) is amend-
ed by striking ‘‘not less than 10 per centum or more than
15 per centum’’ and inserting ‘‘not more than 8 per cen-
tum’’.
(b) ROYALTY RELIEF.—
(1) IN GENERAL.—Notwithstanding section 5 of
the Geothermal Steam Act of 1970 (30 U.S.C.
1004(a)) and any provision of any lease under that
Act, no royalty is required to be paid under any
qualified geothermal energy lease with respect to
commercial production of heat or energy from a fa-
cility that begins such production in the 5-year pe-
riod beginning on the date of the enactment of this
Act.
(2) 3-YEAR APPLICATION.—Paragraph (2) ap-
plies only to commercial production of heat or en-
ergy from a facility in the first 3 years of such pro-
duction.
(3) QUALIFIED GEOTHERMAL ENERGY LEASE
DEFINED.—The term ‘‘qualified geothermal energy’’
means a lease under the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.)—
(A) that was executed before the end of
the 5-year period beginning on the date of the
enactment of this Act; and
(B) under which no commercial production
of any form of heat or energy occurred before
the date of the enactment of this Act.
SEC. 302. EXEMPTION FROM ROYALTIES FOR DIRECT USE
OF LOW TEMPERATURE GEOTHERMAL EN-
ERGY RESOURCES.
Section 5 of the Geothermal Steam Act of 1970 (30
U.S.C. 1004) is amended—
(1) in paragraph (c) by redesignating subpara-
graphs (1) and (2) as subparagraphs (A) and (B);
(2) by redesignating paragraphs (a) through (d)
in order as paragraphs (1) through (4);
(3) by moving paragraphs (1) through (4), as
so 
redesignated 
(including 
subparagraphs 
(A)
through (B) of paragraph (3)), 2 ems to the right;
(4) by inserting ‘‘(a) IN GENERAL.—’’ after
‘‘SEC. 5.’’; and
(5) by adding at the end the following new sub-
section:
‘‘(b) EXEMPTION FOR USE OF LOW TEMPERATURE
RESOURCES.—
‘‘(1) IN GENERAL.—In lieu of any royalty or
rental under subsection (a), a lease for qualified de-
velopment and direct utilization of low temperature
geothermal resources shall provide for payment by
the lessee of an annual fee of not less than $100,
and not more than $1,000, in accordance with the
schedule issued under paragraph (2).
‘‘(2) SCHEDULE.—The Secretary shall issue a
schedule of fees under this section under which a fee
is based on the scale of development and utilization
to which the fee applies.
‘‘(3) DEFINITIONS.—In this subsection:
‘‘(A) LOW
TEMPERATURE
GEOTHERMAL
RESOURCES.—The term ‘low temperature geo-
thermal resources’ means geothermal steam and
associated geothermal resources having a tem-
perature of less than 195 degrees Fahrenheit.
‘‘(B) QUALIFIED DEVELOPMENT AND DI-
RECT UTILIZATION.—The term ‘qualified devel-
opment and direct utilization’ means develop-
ment and utilization in which all products of
geothermal resources, other than any heat uti-
lized, are returned to the geothermal formation
from which they are produced.’’.
SEC. 303. AMENDMENTS RELATING TO LEASING ON FOREST
SERVICE LANDS.
The Geothermal Steam Act of 1970 is amended—
(1) in section 15(b) (30 U.S.C. 1014(b)) is
amended by striking ‘‘with the consent of, and’’; and
(2) section 28(e) (30 U.S.C. 1026(e)) is amend-
ed by striking ‘‘in determining whether to consent to
leasing under this Act’’ and inserting ‘‘in prescribing
terms and conditions under section 15(b) for
leases’’.
SEC. 304. DEADLINE FOR DETERMINATION ON PENDING
NONCOMPETITIVE LEASE APPLICATIONS.
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of the Interior shall, with
respect to each application pending on the date of the en-
actment of this Act for a lease under the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.), issue a final
determination of—
(1) whether or not to conduct a lease sale by
competitive bidding; and
(2) whether or not to award a lease without
competitive bidding.
SEC. 305. OPENING OF PUBLIC LANDS UNDER MILITARY JU-
RISDICTION.
(a) IN GENERAL.—Except as otherwise provided in
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.) and other provisions of Federal law applicable to de-
velopment of geothermal energy resources within public
lands, all public lands under the jurisdiction of a Secretary
of a military department shall be open to the operation
of such laws and development and utilization of geo-
thermal steam and associated geothermal resources, as
that term is defined in section 2 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1001)), without the necessity for
further action by the Secretary or the Congress.
(b) CONFORMING AMENDMENT.—Section 2689 of
title 10, United States Code, is amended by striking ‘‘in-
cluding public lands,’’ and inserting ‘‘, other than public
lands,’’.
(c) TREATMENT OF EXISTING LEASES.—Upon the
expiration of any lease in effect on the date of the enact-
ment of this Act of public lands under the jurisdiction of
a military department for the development of any geo-
thermal resource, such lease may, at the option of the
lessee—
(1) be treated as a lease under the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.), and be
renewed in accordance with such Act; or
(2) be renewed in accordance with the terms of
the lease, if such renewal is authorized by such
terms.
(d) REGULATIONS.—The Secretary of the Interior,
with the advice and concurrence of the Secretary of the
military department concerned, shall prescribe such regu-
lations to carry out this section as may be necessary. Such
regulations shall contain guidelines to assist in deter-
mining how much, if any, of the surface of any lands
opened pursuant to this section may be used for purposes
incident to geothermal energy resources development and
utilization.
(e) CLOSURE
FOR PURPOSES
OF NATIONAL DE-
FENSE OR SECURITY.—In the event of a national emer-
gency or for purposes of national defense or security, the
Secretary of the Interior, at the request of the Secretary
of the military department concerned, shall close any lands
that have been opened to geothermal energy resources
leasing pursuant to this section.
SEC. 306. APPLICATION OF AMENDMENTS.
The amendments made by this title apply with re-
spect to any lease executed before, on, or after the date
of the enactment of this Act.
SEC. 307. REVIEW AND REPORT TO CONGRESS.
The Secretary of the Interior shall promptly review
and report to the Congress regarding the status of all mor-
atoria on and withdrawals from leasing under the Geo-
thermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) of
known geothermal resources areas (as that term is defined
in section 2 of that Act (30 U.S.C. 1001), specifying for
each such area whether the basis for such moratoria or
withdrawal still applies.
SEC. 308. REIMBURSEMENT FOR COSTS OF NEPA ANAL-
YSES, DOCUMENTATION, AND STUDIES.
(a) IN GENERAL.—The Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.) is amended by adding at
the end the following:
‘‘REIMBURSEMENT FOR COSTS OF CERTAIN ANALYSES,
DOCUMENTATION, AND STUDIES
‘‘SEC. 30. (a) IN GENERAL.—The Secretary of the
Interior shall reimburse a person who is a lessee, operator,
operating rights owner, or applicant for a lease under this
Act for costs incurred by the person in preparing any
project-level analysis, documentation, or related study re-
quired under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) with respect to the lease,
through royalty credits attributable to the lease, unit
agreement, or project area for which the analysis, docu-
mentation, or related study is prepared.
‘‘(b) CONDITIONS.—The Secretary shall provide re-
imbursement under subsection (b) only if—
‘‘(1) adequate funding to enable the Secretary
to timely prepare the analysis, documentation, or re-
lated study is not appropriated;
‘‘(2) the person paid the costs voluntarily; and
‘‘(3) the person maintains records of its costs
in accordance with regulations prescribed by the
Secretary.’’.
(b) APPLICATION.—The amendments made by this
section shall apply with respect to any lease entered into
before, on, or after the date of the enactment of this Act.
(c) DEADLINE FOR REGULATIONS.—The Secretary
shall issue regulations implementing the amendments
made by this section by not later than 90 days after the
date of the enactment of this Act.
TITLE IV—HYDROPOWER
SEC. 401. STUDY AND REPORT ON INCREASING ELECTRIC
POWER PRODUCTION CAPABILITY OF EXIST-
ING FACILITIES.
(a) IN GENERAL.—The Secretary of the Interior shall
conduct a study of the potential for increasing electric
power production capability at existing facilities under the
administrative jurisdiction of the Secretary.
(b) CONTENT.—The study under this section shall in-
clude identification and description in detail of each facil-
ity that is capable, with or without modification, of pro-
ducing additional hydroelectric power, including esti-
mation of the existing potential for the facility to generate
hydroelectric power.
(c) REPORT.—The Secretary shall submit to the Con-
gress a report on the findings, conclusions, and rec-
ommendations of the study under this section by not later
than 12 months after the date of enactment of this Act.
The Secretary shall include in the report the following:
(1) The identifications, descriptions, and esti-
mations referred to in subsection (b).
(2) A description of activities the Secretary is
currently conducting or considering, or that could be
considered, to produce additional hydroelectric power
from each identified facility.
(3) A summary of action that has already been
taken by the Secretary to produce additional hydro-
electric power from each identified facility.
(4) The costs to install, upgrade, or modify
equipment or take other actions to produce addi-
tional hydroelectric power from each identified facil-
ity.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action,
including quantified estimates of any additional en-
ergy or capacity from each facility identified under
subsection (b).
(6) A description of actions that are planned,
underway, or might reasonably be considered to in-
crease hydroelectric power production by replacing
turbine runners.
(7) A description of actions that are planned,
underway, or might reasonably be considered to in-
crease hydroelectric power production by performing
generator uprates and rewinds.
(8) Any additional recommendations the Sec-
retary considers advisable to increase hydroelectric
power production from, and reduce costs and im-
prove efficiency at, facilities under the jurisdiction of
the Secretary.
SEC. 402. INSTALLATION OF POWERFORMER AT FOLSOM
POWER PLANT, CALIFORNIA.
(a) IN GENERAL.—The Secretary of the Interior may
install a powerformer at the Bureau of Reclamation Fol-
som power plant in Folsom, California, to replace a gener-
ator and transformer that are due for replacement due
to age.
(b) REIMBURSABLE COSTS.—Costs incurred by the
United States for installation of a powerformer under this
section shall be treated as reimbursable costs and shall
bear interest at current long-term borrowing rates of the
United States Treasury at the time of acquisition.
(c) LOCAL COST SHARING.—In addition to reimburs-
able costs under subsection (b), the Secretary shall seek
contributions from power users toward the costs of the
powerformer and its installation.
SEC. 403. CONSERVATION THROUGH PUMP MODERNIZA-
TION.
(a) PUMP REPLACEMENT PROGRAM.—The Secretary
of the Interior shall—
(1) conduct a study to determine what pumps
associated with water delivery projects should be re-
placed, based on a cost-benefit analysis of modern-
izing pumping installations, including determination
and consideration of the savings in energy costs that
would result from such replacement; and
(2) based on the findings of the study, replace
each pump for which the benefits of such replace-
ment (including such energy costs savings) is greater
than the cost of the pump replacement.
(b) COSTS.—
(1) REIMBURSABLE COSTS.—The costs incurred
by the United States for replacement of any pump
under this section shall be treated as reimbursable
costs and shall bear interest at current long-term
borrowing rates of the United States Treasury at
the time of acquisition.
(2) LOCAL COST SHARING.—In addition to re-
imbursable costs under paragraph (1), the Secretary
shall secure customer funding of the costs of pump
replacements under this section.
(c) AUTHORIZATION OF APPROPRIATIONS.—For re-
placement of pumps under this section there is authorized
to be appropriated to the Secretary $20,000,000.
SEC. 404. STUDY AND IMPLEMENTATION OF INCREASED
OPERATIONAL 
EFFICIENCIES 
IN 
HYDRO-
ELECTRIC POWER PROJECTS.
(a) IN GENERAL.—The Secretary of Interior shall
conduct a study of operational methods and water sched-
uling techniques at all hydroelectric power plants under
the administrative jurisdiction of the Secretary that have
an electric power production capacity greater than 50
megawatts, to—
(1) determine whether such power plants and
associated river systems are operated so as to maxi-
mize energy and capacity capabilities; and
(2) identify measures that can be taken to im-
prove operational flexibility at such plants to achieve
such maximization.
(b) REPORT.—The Secretary shall submit a report on
the findings, conclusions, and recommendations of the
study under this section by not later than 18 months after
the date of the enactment of this Act, including a sum-
mary of the determinations and identifications under
paragraphs (1) and (2) of subsection (a).
(c) COOPERATION BY FEDERAL POWER MARKETING
ADMINISTRATIONS.—The Secretary shall coordinate with
the Administrator of each Federal power marketing ad-
ministration in—
(1) determining how the value of electric power
produced by each hydroelectric power facility that
produces power marketed by the administration can
be maximized; and
(2) implementing measures identified under
subsection (a)(2).
(d) LIMITATION
ON IMPLEMENTATION
OF MEAS-
URES.—Implementation under subsections (a)(2) and
(b)(2) shall be limited to those measures that can be im-
plemented within the constraints imposed on Department
of the Interior facilities by other uses required by law.
SEC. 405. SHIFT OF PROJECT LOADS TO OFF-PEAK PERI-
ODS.
(a) IN GENERAL.—The Secretary of the Interior
shall—
(1) review electric power consumption by Bu-
reau of Reclamation facilities for water pumping
purposes; and
(2) make such adjustments in such pumping as
possible to minimize the amount of electric power
consumed for such pumping during periods of peak
electric power consumption, including by performing
as much of such pumping as possible during off-
peak hours at night.
(b) CONSENT OF AFFECTED IRRIGATION CUSTOMERS
REQUIRED.—The Secretary may not under this section
make any adjustment in pumping at a facility without the
consent of each person that has contracted with the
United States for delivery of water from the facility for
use for irrigation and that would be affected by such ad-
justment.
(c) EXISTING OBLIGATIONS NOT AFFECTED.—This
section shall not be construed to affect any existing obliga-
tion of the Secretary to provide electric power, water, or
other benefits from Bureau of Reclamation facilities.
TITLE V—ARCTIC COASTAL
PLAIN DOMESTIC ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Arctic Coastal Plain
Domestic Energy Security Act of 2001’’.
SEC. 502. DEFINITIONS.
In this title:
(1) COASTAL
PLAIN.—The term ‘‘Coastal
Plain’’ means that area identified as such in the
map entitled ‘‘Arctic National Wildlife Refuge’’,
dated August 1980, as referenced in section 1002(b)
of the Alaska National Interest Lands Conservation
Act of 1980 (16 U.S.C. 3142(b)(1)), comprising ap-
proximately 1,549,000 acres.
(2) SECRETARY.—The term ‘‘Secretary’’, except
as otherwise provided, means the Secretary of the
Interior or the Secretary’s designee.
SEC. 503. 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 title a competitive oil and gas leasing pro-
gram under the Mineral Leasing Act (30 U.S.C. 181
et seq.) 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 title
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, and including, in furtherance of this
goal, by requiring the application of the best com-
mercially available technology for oil and gas explo-
ration, development, and production to all explo-
ration, development, and production operations
under this title in a manner that ensures the receipt
of fair market value by the public for the mineral re-
sources to be leased.
(b) REPEAL.—Section 1003 of the Alaska National
Interest Lands Conservation Act of 1980 (16 U.S.C.
3143) is repealed.
(c) COMPLIANCE WITH REQUIREMENTS UNDER CER-
TAIN OTHER LAWS.—
(1) COMPATIBILITY.—For purposes of the Na-
tional Wildlife Refuge System Administration Act of
1966, the oil and gas leasing program and activities
authorized by this section in the Coastal Plain are
deemed to be compatible with the purposes for which
the Arctic National Wildlife Refuge was established,
and that no further findings or decisions are re-
quired 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
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 actions au-
thorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of
a leasing program authorized by this title before the
conduct of the first lease sale.
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under
this title, 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 title that are not referred to
in paragraph (2). Notwithstanding any other law,
the Secretary is not required to identify nonleasing
alternative courses of action or to analyze the envi-
ronmental effects of such courses of action. The Sec-
retary shall only identify a preferred action for such
leasing and a single leasing alternative, and analyze
the environmental effects and potential mitigation
measures for those two alternatives. The identifica-
tion of the preferred action and related analysis for
the first lease sale under this title shall be completed
within 18 months after the date of enactment of this
Act. The Secretary shall only consider public com-
ments that specifically address the Secretary’s pre-
ferred action and that are filed within 20 days after
publication of an environmental analysis. Notwith-
standing any other law, compliance with this para-
graph is deemed to satisfy all requirements for the
analysis and consideration of the environmental ef-
fects of proposed leasing under this title.
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this title shall be considered to expand
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-
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 502(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 title.
(g) REGULATIONS.—
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry
out this title, 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 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. 504. LEASE SALES.
(a) IN GENERAL.—Lands may be leased pursuant to
this title to any person qualified to obtain a lease for de-
posits 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 title shall be by sealed competitive cash bonus bids.
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first
lease sale under this title, 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 title
within 22 months after the date of enactment of this
title; 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. 505. 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 504 any lands to be leased on
the Coastal Plain upon payment by the lessee of such
bonus as may be accepted by the Secretary.
(b) SUBSEQUENT
TRANSFERS.—No lease issued
under this title may be sold, exchanged, assigned, sublet,
or otherwise transferred except with the approval of the
Secretary. Prior to any such approval the Secretary shall
consult with, and give due consideration to the views of,
the Attorney General.
SEC. 506. LEASE TERMS AND CONDITIONS.
(a) IN GENERAL.—An oil or gas lease issued pursu-
ant to this title shall—
(1) provide for the payment of a royalty of not
less than 121⁄2 percent in amount or value of the
production removed or sold from the lease, as deter-
mined by the Secretary under the regulations appli-
cable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect
caribou calving areas and other species of fish and
wildlife;
(3) require that the lessee of lands within the
Coastal Plain shall be fully responsible and liable for
the reclamation of lands within the Coastal Plain
and any other Federal lands that are adversely af-
fected in connection with exploration, development,
production, or transportation activities conducted
under the lease and within the Coastal Plain by the
lessee or by any of the subcontractors or agents of
the lessee;
(4) provide that the lessee may not delegate or
convey, by contract or otherwise, the reclamation re-
sponsibility and liability to another person without
the express written approval of the Secretary;
(5) provide that the standard of reclamation for
lands required to be reclaimed under this title shall
be, as nearly as practicable, a condition capable of
supporting the uses which the lands were capable of
supporting prior to any exploration, development, or
production activities, or upon application by the les-
see, to a higher or better use as approved by the
Secretary;
(6) contain terms and conditions relating to
protection of fish and wildlife, their habitat, and the
environment 
as 
required 
pursuant 
to 
section
503(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; and
(8) contain such other provisions as the Sec-
retary determines necessary to ensure compliance
with the provisions of this title and the regulations
issued under this title.
(b) PROJECT LABOR AGREEMENTS.—The Secretary,
as a term and condition of each lease under this title and
in recognizing the Government’s proprietary interest in
labor stability and in the ability of construction labor and
management to meet the particular needs and conditions
of projects to be developed under the leases issued pursu-
ant to this title and the special concerns of the parties
to such leases, shall require that the lessee and its agents
and contractors negotiate to obtain a project labor agree-
ment for the employment of laborers and mechanics on
production, maintenance, and construction under the
lease.
SEC. 507. 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 503, administer the provisions of this title through
regulations, lease terms, conditions, restrictions, prohibi-
tions, stipulations, and other provisions that—
(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain
will result in no significant adverse effect on fish
and wildlife, their habitat, and the environment; and
(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.
(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 title, the Secretary shall
prepare and promulgate regulations, lease terms, condi-
tions, restrictions, prohibitions, stipulations, and other
measures designed to ensure that the activities undertaken
on the Coastal Plain under this title are conducted in a
manner consistent with the purposes and environmental
requirements of this title.
(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 title 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—
(A) the Secretary determines, after afford-
ing an opportunity for public comment and re-
view, that special circumstances exist necessi-
tating that exploration activities be conducted
at other times of the year; and
(B) the Secretary finds that such explo-
ration will have no significant adverse effect on
the fish and wildlife, their habitat, and the envi-
ronment 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 title, 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.
SEC. 508. EXPEDITED JUDICIAL REVIEW.
(a) FILING OF COMPLAINT.—
(1) DEADLINE.—Subject to paragraph (2), any
complaint seeking judicial review of any provision of
this title or any action of the Secretary under this
title 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 title
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 title, including the
environmental 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. 509. 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 503(g) provisions granting
rights-of-way and easements described in subsection (a)
of this section.
SEC. 510. 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 2
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); and
(2) to the Arctic Slope Regional Corporation
the subsurface estate beneath such surface estate
pursuant to the August 9, 1983, agreement between
the Arctic Slope Regional Corporation and the
United States of America.
SEC. 511. 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 title.
(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; and
(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.
(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 title.
(4) LIMITATION
ON
DEPOSITS.—The total
amount in the fund may not exceed $10,000,000.
(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