1966 (16 U.S.C. 668dd et seq.), the oil and gas 
leasing program and activities authorized by this 
section in the Coastal Plain are deemed to be com-
patible with the purposes for which the Arctic Na-
tional Wildlife Refuge was established, and no fur-
ther findings or decisions are required to implement 
this determination. 
(2) ADEQUACY OF THE DEPARTMENT OF THE 
INTERIOR’S LEGISLATIVE ENVIRONMENTAL IMPACT 
STATEMENT.—The 
‘‘Final 
Legislative 
Environ-
mental Impact Statement’’ (April 1987) on the 
Coastal Plain prepared pursuant to section 1002 of 
the Alaska National Interest Lands Conservation 
Act (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 require-
ments under the National Environmental Policy Act 
of 1969 that apply with respect to prelease activities, 
including actions authorized to be taken by the Sec-
retary to develop and promulgate the regulations for 
the establishment of a leasing program authorized 
by this subtitle before the conduct of the first lease 
sale. 
(3) COMPLIANCE WITH NEPA FOR OTHER AC-
TIONS.—Before conducting the first lease sale under 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
this subtitle, the Secretary shall prepare an environ-
mental impact statement under the National Envi-
ronmental Policy Act of 1969 with respect to the ac-
tions authorized by this subtitle that are not re-
ferred to in paragraph (2). Notwithstanding any 
other law, the Secretary is not required to identify 
nonleasing alternative courses of action or to analyze 
the environmental effects of such courses of action. 
The Secretary shall only identify a preferred action 
for such leasing and a single leasing alternative, and 
analyze the environmental effects and potential miti-
gation measures for those two alternatives. The 
identification of the preferred action and related 
analysis for the first lease sale under this subtitle 
shall be completed not later than 18 months after 
the date of enactment of this Act. The Secretary 
shall only consider public comments that specifically 
address the Secretary’s preferred action and that are 
filed within 20 days after publication of an environ-
mental analysis. Notwithstanding any other law, 
compliance with this paragraph is deemed to satisfy 
all requirements for the analysis and consideration 
of the environmental effects of proposed leasing 
under this subtitle. 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
(d) RELATIONSHIP TO STATE AND LOCAL AUTHOR-
ITY.—Nothing in this subtitle shall be considered to ex-
pand or limit State or 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. 
(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. The Secretary may only lease 
a Special Area, or any part thereof, for purposes of 
oil and gas exploration, development, production, or 
related activities, if there is no surface occupancy of 
the lands comprising the Special Area. 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
(4) DIRECTIONAL DRILLING.—Notwithstanding 
the other provisions of this subsection, the Secretary 
may lease all or a portion of a Special Area under 
terms that permit the use of horizontal drilling tech-
nology from sites on leases located outside the Spe-
cial Area. 
(f) LIMITATION
ON
CLOSED
AREAS.—The Sec-
retary’s sole authority to close lands within the Coastal 
Plain to oil and gas leasing and to exploration, develop-
ment, or production is that authority set forth in this sub-
title. 
(g) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out this subtitle, including rules and regulations re-
lating to protection of the fish and wildlife, their 
habitat, the subsistence resources, and the environ-
ment of the Coastal Plain, by not 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. 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
SEC. 123. LEASE SALES. 
(a) IN GENERAL.—Lands may be leased pursuant to 
this subtitle to any person qualified to obtain a lease for 
deposits of oil and gas under the Mineral Leasing Act (30 
U.S.C. 181 et seq.). 
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for— 
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion 
in, or exclusion (as provided in subsection (c)) from, 
a lease sale; 
(2) the holding of lease sales after such nomina-
tion process; and 
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a 
lease sale. 
(c) LEASE SALE BIDS.—Bidding for leases under 
this subtitle shall be by sealed competitive cash bonus bids. 
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first 
lease sale under this subtitle, the Secretary shall offer for 
lease those tracts the Secretary considers to have the 
greatest potential for the discovery of hydrocarbons, tak-
ing into consideration nominations received pursuant to 
subsection (b)(1), but in no case less than 200,000 acres. 
(e) TIMING
OF
LEASE
SALES.—The Secretary 
shall— 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
(1) conduct the first lease sale under this sub-
title not later than 22 months after the date of the 
enactment of this Act; 
(2) evaluate the bids in such sale and issue 
leases resulting from such sale, not later than 90 
days after the date of the completion of such sale; 
and 
(3) conduct additional sales so long as sufficient 
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales. 
SEC. 124. GRANT OF LEASES BY THE SECRETARY. 
(a) IN GENERAL.—The Secretary may grant to the 
highest responsible qualified bidder in a lease sale con-
ducted pursuant to section 123 any lands to be leased on 
the Coastal Plain upon payment by the lessee of such 
bonus as may be accepted by the Secretary. 
(b) SUBSEQUENT
TRANSFERS.—No lease issued 
under this subtitle may be sold, exchanged, assigned, sub-
let, or otherwise transferred except with the approval of 
the Secretary. Prior to any such approval, the Secretary 
shall consult with, and give due consideration to the views 
of, the Attorney General. 
SEC. 125. LEASE TERMS AND CONDITIONS. 
An oil or gas lease issued pursuant to this subtitle 
shall— 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
(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 subtitle 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
shall be, as nearly as practicable, a condition capable 
of supporting the uses which the lands were capable 
of supporting prior to any exploration, development, 
or production activities, or upon application by the 
lessee, to a higher or better use as approved by the 
Secretary; 
(6) 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; 
(7) prohibit the export of oil produced under 
the lease; and 
(8) contain such other provisions as the Sec-
retary determines necessary to ensure compliance 
with the provisions of this subtitle and the regula-
tions issued under this subtitle. 
SEC. 126. COASTAL PLAIN ENVIRONMENTAL PROTECTION. 
(a) NO SIGNIFICANT ADVERSE EFFECT STANDARD 
TO GOVERN AUTHORIZED COASTAL PLAIN ACTIVITIES.— 
The Secretary shall, consistent with the requirements of 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
section 122, administer the provisions of this subtitle 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that— 
(1) ensure the oil and gas exploration, develop-
ment, and production activities on the Coastal Plain 
will result in no significant adverse effect on fish 
and wildlife, their habitat, and the environment; 
(2) require the application of the best commer-
cially available technology for oil and gas explo-
ration, development, and production on all new ex-
ploration, development, and production operations; 
and 
(3) ensure that the maximum amount of sur-
face acreage covered by production and support fa-
cilities, including airstrips and any areas covered by 
gravel berms or piers for support of pipelines, does 
not exceed 2,000 acres on the Coastal Plain. 
(b) SITE-SPECIFIC ASSESSMENT AND MITIGATION.— 
The Secretary shall also require, with respect to any pro-
posed drilling and related activities, that— 
(1) a site-specific analysis be made of the pos-
sible significant adverse effects, if any, that the drill-
ing or related activities will have on fish and wildlife, 
their habitat, subsistence resources, and the environ-
ment; 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
(2) if the analysis under paragraph (1) results 
in a finding that a significant adverse effect prohib-
ited by subsection (a)(1) is likely to occur as a result 
of the proposed drilling or related activity, a plan be 
developed and implemented to avoid, minimize, and 
mitigate (in that order and to the extent practicable) 
the significant adverse effect in order to comply with 
such subsection; and 
(3) the development of a plan under paragraph 
(2) shall occur after consultation with the agency or 
agencies having jurisdiction over matters covered by 
the plan. 
(c) REGULATIONS TO PROTECT COASTAL PLAIN 
FISH AND WILDLIFE RESOURCES, SUBSISTENCE USERS, 
AND THE ENVIRONMENT.—Before implementing the leas-
ing program authorized by this subtitle, the Secretary 
shall prepare and promulgate regulations, lease terms, 
conditions, restrictions, prohibitions, stipulations, and 
other measures designed to ensure that the activities un-
dertaken on the Coastal Plain under this subtitle are con-
ducted in a manner consistent with the purposes and envi-
ronmental requirements of this subtitle. 
(d) COMPLIANCE WITH FEDERAL AND STATE ENVI-
RONMENTAL LAWS AND OTHER REQUIREMENTS.—The 
proposed regulations, lease terms, conditions, restrictions, 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(7) RENEWABLE ENERGY.—The term ‘‘renew-
able energy’’ has the meaning given such term in 
section 203(b) of the Energy Policy Act of 2005 (42 
U.S.C. 15852(b)). 
(8) RENEWABLE ENERGY FACILITY.—The term 
‘‘renewable energy facility’’ means a facility— 
(A) for the generation of electric energy 
and the transmission of such electric energy 
onto the electric power grid; and 
(B) that generates such electric energy 
from a renewable energy source. 
(9) QUALIFIED
RENEWABLE
ENERGY
FACIL-
ITY.—The term ‘‘qualified renewable energy facility’’ 
means a renewable energy facility for which the 
owner or operator demonstrates, to the satisfaction 
of the Director, the following: 
(A) Competence of the owner or operator 
with respect to the generation of electric energy 
from the renewable energy source used by such 
facility. 
(B) Evidence that the renewable energy 
generating technology used by such facility can 
be used on a commercial scale. 
VerDate Mar 15 2010 
04:44 Mar 05, 2011
Jkt 099200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H909.IH
H909
pwalker on DSKD5P82C1PROD with BILLS