110 
line that will transport natural gas produced from the 
outer Continental Shelf. However, an Adjacent State may 
prevent a proposed natural gas pipeline landing location 
if it proposes two alternate landing locations in the Adja-
cent State, acceptable to the Adjacent State, located with-
in 50 miles on either side of the proposed landing loca-
tion.’’. 
SEC. 340. ENVIRONMENTAL STUDIES. 
Section 20(d) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1346) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following: 
‘‘(2) For all programs, lease sales, leases, and actions 
under this Act, the following shall apply regarding the ap-
plication of the National Environmental Policy Act of 
1969: 
‘‘(A) Granting or directing lease suspensions 
and the conduct of all preliminary activities on outer 
Continental Shelf tracts, including seismic activities, 
are categorically excluded from the need to prepare 
either an environmental assessment or an environ-
mental impact statement, and the Secretary shall 
not be required to analyze whether any exceptions to 
a categorical exclusion apply for activities conducted 
under the authority of this Act. 
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‘‘(B) The environmental impact statement de-
veloped in support of each 5-year oil and gas leasing 
program provides the environmental analysis for all 
lease sales to be conducted under the program and 
such sales shall not be subject to further environ-
mental analysis. 
‘‘(C) Exploration plans shall not be subject to 
any requirement to prepare an environmental impact 
statement, and the Secretary may find that explo-
ration plans are eligible for categorical exclusion due 
to the impacts already being considered within an 
environmental impact statement or due to mitigation 
measures included within the plan. 
‘‘(D) Within each OCS Planning Area, after the 
preparation of the first development and production 
plan environmental impact statement for a leased 
tract within the Area, future development and pro-
duction plans for leased tracts within the Area shall 
only require the preparation of an environmental as-
sessment unless the most recent development and 
production plan environmental impact statement 
within the Area was finalized more than 10 years 
prior to the date of the approval of the plan, in 
which case an environmental impact statement shall 
be required.’’. 
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112 
SEC. 341. FEDERAL ENERGY NATURAL RESOURCES EN-
HANCEMENT ACT OF 2008. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Federal Energy Natural Resources Enhancement Act of 
2008’’. 
(b) FINDINGS.—The Congress finds the following: 
(1) Energy and minerals exploration, develop-
ment, and production on Federal onshore and off-
shore lands, including bio-based fuel, natural gas, 
minerals, oil, geothermal, and power from wind, 
waves, currents, and thermal energy, involves signifi-
cant outlays of funds by Federal and State wildlife, 
fish, and natural resource management agencies for 
environmental studies, planning, development, moni-
toring, and management of wildlife, fish, air, water, 
and other natural resources. 
(2) State wildlife, fish, and natural resource 
management agencies are funded primarily through 
permit and license fees paid to the States by the 
general public to hunt and fish, and through Federal 
excise taxes on equipment used for these activities. 
(3) Funds generated from consumptive and rec-
reational uses of wildlife, fish, and other natural re-
sources currently are inadequate to address the nat-
ural resources related to energy and minerals devel-
opment on Federal onshore and offshore lands. 
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(4) Funds available to Federal agencies respon-
sible for managing Federal onshore and offshore 
lands and Federal-trust wildlife and fish species and 
their habitats are inadequate to address the natural 
resources related to energy and minerals develop-
ment on Federal onshore and offshore lands. 
(5) Receipts derived from sales, bonus bids, and 
royalties under the mineral leasing laws of the 
United States are paid to the Treasury through the 
Minerals Management Service of the Department of 
the Interior. 
(6) None of the receipts derived from sales, 
bonus bids, and royalties under the minerals leasing 
laws of the United States are paid to the Federal or 
State agencies to examine, monitor, and manage 
wildlife, fish, air, water, and other natural resources 
related to natural gas, oil, and mineral exploration 
and development. 
(c) PURPOSES.—It is the purpose of this section to— 
(1) authorize expenditures for the monitoring 
and management of wildlife and fish, and their habi-
tats, and air, water, and other natural resources re-
lated to energy and minerals development on Fed-
eral onshore and offshore lands; 
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114 
(2) authorize expenditures for each fiscal year 
to the Secretary of the Interior and the States; and 
(3) use the appropriated funds to secure the 
necessary trained workforce or contractual services 
to conduct environmental studies, planning, develop-
ment, monitoring, and post-development manage-
ment of wildlife and fish and their habitats and air, 
water, and other natural resources that may be re-
lated to bio-based fuel, gas, mineral, oil, wind, or 
other energy exploration, development, transpor-
tation, transmission, and associated activities on 
Federal onshore and offshore lands, including, but 
not limited to— 
(A) pertinent research, surveys, and envi-
ronmental analyses conducted to identify any 
impacts on wildlife, fish, air, water, and other 
natural resources from energy and mineral ex-
ploration, development, production, and trans-
portation or transmission; 
(B) projects to maintain, improve, or en-
hance wildlife and fish populations and their 
habitats or air, water, or other natural re-
sources, including activities under the Endan-
gered Species Act of 1973; 
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115 
(C) research, surveys, environmental anal-
yses, and projects that assist in managing, in-
cluding mitigating either onsite or offsite, or 
both, the impacts of energy and mineral activi-
ties on wildlife, fish, air, water, and other nat-
ural resources; and 
(D) projects to teach young people to live 
off the land. 
(d) DEFINITIONS.—In this section: 
(1) ENHANCEMENT PROGRAM.—The term ‘‘En-
hancement Program’’ means the Federal Energy 
Natural Resources Enhancement Program estab-
lished by this section. 
(2) STATE.—The term ‘‘State’’ means the Gov-
ernor of the State. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out the Enhance-
ment Program $150,000,000 for each of fiscal years 2009 
through 2019. 
(f) ESTABLISHMENT
OF FEDERAL ENERGY NAT-
URAL RESOURCES ENHANCEMENT PROGRAM.— 
(1) IN
GENERAL.—There is established the 
Federal Energy Natural Resources Enhancement 
Program. 
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117 
(h) REPORTS TO CONGRESS.— 
(1) IN
GENERAL.—Beginning in fiscal year 
2010 and continuing for each fiscal year thereafter, 
the Secretary of the Interior and each State receiv-
ing funds from the Enhancement Fund shall submit 
a report to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Re-
sources of the House of Representatives. 
(2) REQUIRED
INFORMATION.—Reports sub-
mitted to the Congress by the Secretary of the Inte-
rior and States under this subsection shall include 
the following information regarding expenditures 
during the previous fiscal year: 
(A) A summary of pertinent scientific re-
search and surveys conducted to identify im-
pacts on wildlife, fish, and other natural re-
sources from energy and mineral developments. 
(B) A summary of projects planned and 
completed to maintain, improve or enhance 
wildlife and fish populations and their habitats 
or other natural resources. 
(C) A list of additional actions that assist, 
or would assist, in managing, including miti-
gating either onsite or offsite, or both, the im-
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118 
pacts of energy and mineral development on 
wildlife, fish, and other natural resources. 
(D) A summary of private (non-Federal) 
funds used to plan, conduct, and complete the 
plans and programs identified in subparagraphs 
(A) and (B). 
SEC. 342. TERMINATION OF EFFECT OF LAWS PROHIBITING 
THE SPENDING OF APPROPRIATED FUNDS 
FOR CERTAIN PURPOSES. 
All provisions of existing Federal law prohibiting the 
spending of appropriated funds to conduct oil and natural 
gas leasing and preleasing activities, or to issue a lease 
to any person, for any area of the outer Continental Shelf 
shall have no force or effect. 
SEC. 343. OUTER CONTINENTAL SHELF INCOMPATIBLE 
USE. 
(a) IN GENERAL.—No Federal agency may permit 
construction or operation (or both) of any facility, or des-
ignate or maintain a restricted transportation corridor or 
operating area on the Federal outer Continental Shelf or 
in State waters, that will be incompatible with, as deter-
mined by the Secretary of the Interior, oil and gas or nat-
ural gas leasing and substantially full exploration and pro-
duction of tracts that are geologically prospective for oil 
or natural gas (or both). 
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(b) EXCEPTIONS.—Subsection (a) shall not apply to 
any facility, transportation corridor, or operating area the 
construction, operation, designation, or maintenance of 
which is or will be— 
(1) located in an area of the outer Continental 
Shelf that is unavailable for oil and gas or natural 
gas leasing by operation of law; 
(2) used for a military readiness activity (as de-
fined in section 315(f) of Public Law 107–314; 16 
U.S.C. 703 note); or 
(3) required in the national interest, as deter-
mined by the President. 
SEC. 344. REPURCHASE OF CERTAIN LEASES. 
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—The Secretary of the Interior shall repur-
chase and cancel any Federal oil and gas, geothermal, 
coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, but not including any outer Conti-
nental Shelf oil and gas leases that are subject to litigation 
in the Court of Federal Claims on January 1, 2006, if 
the Secretary finds that such lease qualifies for repurchase 
and cancellation under the regulations authorized by this 
section. 
(b) REGULATIONS.—Not later than 365 days after 
the date of the enactment of this Act, the Secretary shall 
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publish a final regulation stating the conditions under 
which a lease referred to in subsection (a) would qualify 
for repurchase and cancellation, and the process to be fol-
lowed regarding repurchase and cancellation. Such regula-
tion shall include, but not be limited to, the following: 
(1) The Secretary shall repurchase and cancel 
a lease after written request by the lessee upon a 
finding by the Secretary that— 
(A) a request by the lessee for a required 
permit or other approval complied with applica-
ble law, except the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1451 et seq.), and 
terms of the lease and such permit or other ap-
proval was denied; 
(B) a Federal agency failed to act on a re-
quest by the lessee for a required permit, other 
approval, or administrative appeal within a reg-
ulatory or statutory time-frame associated with 
the requested action, whether advisory or man-
datory, or if none, within 180 days; or 
(C) a Federal agency attached a condition 
of approval, without agreement by the lessee, to 
a required permit or other approval if such con-
dition of approval was not mandated by Federal 
statute or regulation in effect on the date of 
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lease issuance, or was not specifically allowed 
under the terms of the lease. 
(2) A lessee shall not be required to exhaust ad-
ministrative remedies regarding a permit request, 
administrative appeal, or other required request for 
approval for the purposes of this section. 
(3) The Secretary shall make a final agency de-
cision on a request by a lessee under this section 
within 180 days of request. 
(4) Compensation to a lessee to repurchase and 
cancel a lease under this section shall be the amount 
that a lessee would receive in a restitution case for 
a material breach of contract. 
(5) Compensation shall be in the form of a 
check or electronic transfer from the Department of 
the Treasury from funds deposited into miscella-
neous receipts under the authority of the same Act 
that authorized the issuance of the lease being re-
purchased. 
(6) Failure of the Secretary to make a final 
agency decision on a request by a lessee under this 
section within 180 days of request shall result in a 
10 percent increase in the compensation due to the 
lessee if the lease is ultimately repurchased. 
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