633 
covered by the approved petition, unless there 
are, from the date of approval, fewer than 12 
months remaining in the current 5-Year Leas-
ing Program in which case the Secretary shall 
include the areas covered by the approved peti-
tion within lease sales under the next 5-Year 
Leasing Program. For purposes of amending 
the 5-Year Program in accordance with this 
section, further consultations with States shall 
not be required. The environmental assessment 
performed under the provisions of the National 
Environmental Policy Act of 1969 to assess the 
effects of approving the petition shall be suffi-
cient to amend the 5-Year Leasing Program. 
‘‘(h) OPTION
TO PETITION
FOR EXTENSION
OF 
WITHDRAWAL FROM LEASING WITHIN CERTAIN AREAS 
OF THE OUTER CONTINENTAL SHELF.— 
‘‘(1) IN GENERAL.—The Governor of the State, 
upon the concurrence of its legislature, may submit 
to the Secretary petitions requesting that the Sec-
retary extend for a period of time of up to 5 years 
for each petition the withdrawal from leasing for all 
or part of any area within the State’s Adjacent Zone 
within 125 miles of the coastline that is subject to 
subsection (g)(1). A State may petition multiple
634 
times for any particular area but not more than 
once per calendar year for any particular area. A 
State must submit separate petitions, with separate 
votes by its legislature, for areas within 50 miles of 
the coastline, areas more than 50 miles but not ex-
ceeding 100 miles from the coastline, and areas ex-
ceeding 100 miles but not exceeding 125 miles from 
the coastline. A petition of a State may apply to ei-
ther oil and gas leasing or natural gas leasing, or 
both, and may request some areas to be withdrawn 
from all leasing and some areas to be withdrawn 
only from one type of leasing. A petition for extend-
ing the withdrawal from leasing of any part of the 
Alabama Adjacent Zone that is a part of the Gulf 
of Mexico OCS Region Eastern Planning Area, as 
indicated on the map entitled ‘Gulf of Mexico OCS 
Region State Adjacent Zones and OCS Planning 
Areas’ which is dated September 2005 and on file in 
the Office of the Director, Minerals Management 
Service, may be made by either Alabama or Florida. 
‘‘(2) ACTION
BY
SECRETARY.—The Secretary 
shall perform an environmental assessment under 
the National Environmental Policy Act of 1969 to 
assess the effects of approving the petition under 
paragraph (1). Not later than 90 days after receipt
635 
of the petition, the Secretary shall approve the peti-
tion, unless the Secretary determines that extending 
the withdrawal from leasing would probably cause 
serious harm or damage to the marine resources of 
the State’s Adjacent Zone. The Secretary shall not 
approve a petition from a State that extends the re-
maining period of a withdrawal of an area from leas-
ing for a total of more than 10 years. However, the 
Secretary may approve petitions to extend the with-
drawal from leasing of any area ad infinitum, sub-
ject only to the limitations contained in this sub-
section. 
‘‘(3) FAILURE TO ACT.—If the Secretary fails 
to approve or deny a petition in accordance with 
paragraph (2) the petition shall be considered to be 
approved 90 days after receipt of the petition.’’. 
SEC. 6510. OUTER CONTINENTAL SHELF LEASING PRO-
GRAM. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) in subsection (a), by adding at the end of 
paragraph (3) the following: ‘‘The Secretary shall, in 
each 5-year program, include lease sales that when 
viewed as a whole propose to offer for oil and gas 
or natural gas leasing at least 75 percent of the
636 
available unleased acreage within each OCS Plan-
ning Area. Available unleased acreage is that portion 
of the outer Continental Shelf that is not under 
lease at the time of the proposed lease sale, and has 
not otherwise been made unavailable for leasing by 
law.’’; 
(2) in subsection (c), by striking so much as 
precedes paragraph (3) and inserting the following: 
‘‘(c)(1) During the preparation of any proposed leas-
ing program under this section, the Secretary shall con-
sider and analyze leasing throughout the entire Outer 
Continental Shelf without regard to any other law affect-
ing such leasing. During this preparation the Secretary 
shall invite and consider suggestions from any interested 
Federal agency, including the Attorney General, in con-
sultation with the Federal Trade Commission, and from 
the Governor of any coastal State. The Secretary may also 
invite or consider any suggestions from the executive of 
any local government in a coastal State that have been 
previously submitted to the Governor of such State, and 
from any other person. Further, the Secretary shall con-
sult with the Secretary of Defense regarding military oper-
ational needs in the outer Continental Shelf. The Sec-
retary shall work with the Secretary of Defense to resolve 
any conflicts that might arise regarding offering any area
637 
of the outer Continental Shelf for oil and gas or natural 
gas leasing. If the Secretaries are not able to resolve all 
such conflicts, any unresolved issues shall be elevated to 
the President for resolution. 
‘‘(2) After the consideration and analysis required by 
paragraph (1), including the consideration of the sugges-
tions received from any interested Federal agency, the 
Federal Trade Commission, the Governor of any coastal 
State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal 
Register a proposed leasing program accompanied by a 
draft environmental impact statement prepared pursuant 
to the National Environmental Policy Act of 1969. After 
the publishing of the proposed leasing program and during 
the comment period provided for on the draft environ-
mental impact statement, the Secretary shall submit a 
copy of the proposed program to the Governor of each af-
fected State for review and comment. The Governor may 
solicit comments from those executives of local govern-
ments in the Governor’s State that the Governor, in the 
discretion of the Governor, determines will be affected by 
the proposed program. If any comment by such Governor 
is received by the Secretary at least 15 days prior to sub-
mission to the Congress pursuant to paragraph (3) and 
includes a request for any modification of such proposed
638 
program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such 
request in such modified form as the Secretary considers 
appropriate, and stating the Secretary’s reasons therefor. 
All such correspondence between the Secretary and the 
Governor of any affected State, together with any addi-
tional information and data relating thereto, shall accom-
pany such proposed program when it is submitted to the 
Congress.’’; and 
(3) by adding at the end the following: 
‘‘(i) PROJECTION OF STATE AND LOCAL GOVERN-
MENT SHARES OF OCS RECEIPTS.—Concurrent with the 
publication of the scoping notice at the beginning of the 
development of each 5-year Outer Continental Shelf oil 
and gas leasing program, or as soon thereafter as possible, 
the Secretary shall provide to each coastal State, and 
coastal political subdivisions thereof, a best-efforts projec-
tion of the OCS Receipts that the Secretary expects will 
be shared with each coastal State, and its coastal political 
subdivisions, using the assumption that the unleased 
tracts within the State’s Adjacent Zone are fully made 
available for leasing, including long-term projected OCS 
Receipts. In addition, the Secretary shall include a macro-
economic estimate of the impact of such leasing on the 
national economy and each State’s economy, including in-
639 
vestment, jobs, revenues, personal income, and other cat-
egories.’’. 
SEC. 6511. COORDINATION WITH ADJACENT STATES. 
Section 19 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1345) is amended— 
(1) in subsection (a) in the first sentence by in-
serting ‘‘, for any tract located within the Adjacent 
State’s Adjacent Zone,’’ after ‘‘government’’; and 
(2) by adding the following: 
‘‘(f)(1) No Federal agency may permit or otherwise 
approve, without the concurrence of the Adjacent State, 
the construction of a crude oil or petroleum products (or 
both) pipeline within the part of the Adjacent State’s Ad-
jacent Zone that is not available by law for oil and gas 
or natural gas leasing, except that such a pipeline may 
be approved to pass through such Adjacent Zone if at least 
50 percent of the production projected to be carried by 
the pipeline within its first 10 years of operation is from 
areas of the Adjacent States Adjacent Zone. 
‘‘(2) No State may prohibit the construction within 
its Adjacent Zone or its State waters of a natural gas pipe-
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-
640 
cent State, acceptable to the Adjacent State, located with-
in 50 miles on either side of the proposed landing loca-
tion.’’. 
SEC. 6512. 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 it shall not be re-
quired to document why no exceptions to the cat-
egorical exclusion apply for activities conducted 
under the authority of this Act. 
‘‘(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
641 
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.’’. 
SEC. 6513. REVIEW OF OUTER CONTINENTAL SHELF DEVEL-
OPMENT AND PRODUCTION PLANS. 
Section 25 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1351(a)) is amended to read as follows:
642 
‘‘SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVEL-
OPMENT AND PRODUCTION PLANS. 
‘‘(a) DEVELOPMENT AND PRODUCTION PLANS; SUB-
MISSION TO SECRETARY; STATEMENT OF FACILITIES AND 
OPERATION; SUBMISSION TO GOVERNORS OF AFFECTED 
STATES AND LOCAL GOVERNMENTS.— 
‘‘(1) Prior to development and production pur-
suant to an oil and gas lease issued on or after Sep-
tember 18, 1978, for any area of the outer Conti-
nental Shelf, or issued or maintained prior to Sep-
tember 18, 1978, for any area of the outer Conti-
nental Shelf, with respect to which no oil or gas has 
been discovered in paying quantities prior to Sep-
tember 18, 1978, the lessee shall submit a develop-
ment and production plan (hereinafter in this sec-
tion referred to as a ‘plan’) to the Secretary for re-
view. 
‘‘(2) A plan shall be accompanied by a state-
ment describing all facilities and operations, other 
than those on the outer Continental Shelf, proposed 
by the lessee and known by the lessee (whether or 
not owned or operated by such lessee) that will be 
constructed or utilized in the development and pro-
duction of oil or gas from the lease area, including 
the location and site of such facilities and oper-
ations, the land, labor, material, and energy require-
643 
ments associated with such facilities and operations, 
and all environmental and safety safeguards to be 
implemented. 
‘‘(3) Except for any privileged or proprietary 
information (as such term is defined in regulations 
issued by the Secretary), the Secretary, within 30 
days after receipt of a plan and statement, shall— 
‘‘(A) submit such plan and statement to 
the Governor of any affected State, and upon 
request to the executive of any affected local 
government; and 
‘‘(B) make such plan and statement avail-
able to any appropriate interstate regional enti-
ty and the public. 
‘‘(b) DEVELOPMENT AND PRODUCTION ACTIVITIES 
IN ACCORDANCE WITH PLAN AS LEASE REQUIREMENT.— 
After enactment of the Ocean State Options Act of 2005, 
no oil and gas lease may be issued pursuant to this Act 
in any region of the outer Continental Shelf, unless such 
lease requires that development and production activities 
be carried out in accordance with a plan that complies 
with the requirements of this section. This section shall 
also apply to leases that do not have an approved develop-
ment and production plan as of the date of enactment of 
the Ocean State Options Act of 2005.
644 
‘‘(c) SCOPE AND CONTENTS OF PLAN.—A plan may 
apply to more than one oil and gas lease, and shall set 
forth, in the degree of detail established by regulations 
issued by the Secretary— 
‘‘(1) the general work to be performed; 
‘‘(2) a description of all facilities and operations 
located on the outer Continental Shelf that are pro-
posed by the lessee or known by the lessee (whether 
or not owned or operated by such lessee) to be di-
rectly related to the proposed development, including 
the location and size of such facilities and oper-
ations, and the land, labor, material, and energy re-
quirements associated with such facilities and oper-
ations; 
‘‘(3) the environmental safeguards to be imple-
mented on the outer Continental Shelf and how such 
safeguards are to be implemented; 
‘‘(4) all safety standards to be met and how 
such standards are to be met; 
‘‘(5) an expected rate of development and pro-
duction and a time schedule for performance; and 
‘‘(6) such other relevant information as the Sec-
retary may by regulation require. 
‘‘(d) COMPLETENESS REVIEW OF THE PLAN.—
645 
‘‘(1) Prior to commencing any activity under a 
development and production plan pursuant to any oil 
and gas lease issued or maintained under this Act, 
the lessee shall certify that the plan is consistent 
with the terms of the lease and that it is consistent 
with all statutory and regulatory requirements in ef-
fect on the date of issuance of the lease. The plan 
shall include all required information and docu-
mentation required under subsection (c). 
‘‘(2) The Secretary shall review the plan for 
completeness within 30 days of submission. If the 
Secretary finds that the plan is not complete, the 
Secretary shall notify the lessee with a detailed ex-
planation of such modifications of such plan as are 
necessary to achieve completeness. The Secretary 
shall have 30 days to review a modified plan for 
completeness. 
‘‘(e) REVIEW FOR CONSISTENCY OF THE PLAN.— 
‘‘(1) After a determination that a plan is com-
plete, the Secretary shall have 120 days to conduct 
a review of the plan, to ensure that it is consistent 
with the terms of the lease, and that it is consistent 
with all such statutory and regulatory requirements 
applicable to the lease. If the Secretary finds that 
the plan is not consistent, the Secretary shall notify
646 
the lessee with a detailed explanation of such modi-
fications of such plan as are necessary to achieve 
consistency. 
‘‘(2) The Secretary shall have 120 days to re-
view a modified plan. 
‘‘(3) The lessee shall not conduct any activities 
under the plan during any 120-day review period, or 
thereafter until the plan has been modified to 
achieve compliance as so notified. 
‘‘(4) After review by the Secretary provided for 
by this section, a lessee may operate pursuant to the 
plan without further review or approval by the Sec-
retary. 
‘‘(f) REVIEW
OF REVISION
OF
THE APPROVED 
PLAN.—The lessee may submit to the Secretary any revi-
sion of a plan if the lessee determines that such revision 
will lead to greater recovery of oil and natural gas, im-
prove the efficiency, safety, and environmental protection 
of the recovery operation, is the only means available to 
avoid substantial economic hardship to the lessee, or is 
otherwise not inconsistent with the provisions of this Act, 
to the extent such revision is consistent with protection 
of the human, marine, and coastal environments. The 
process to be used for the review of any such revision shall 
be the same as that set forth in subsections (d) and (e).
647 
‘‘(g) CANCELLATION OF LEASE ON FAILURE TO SUB-
MIT PLAN OR COMPLY WITH A PLAN.—Whenever the 
owner of any lease fails to submit a plan in accordance 
with regulations issued under this section, or fails to com-
ply with a plan, the lease may be canceled in accordance 
with section 5(c) and (d). Termination of a lease because 
of failure to comply with a plan, including required modi-
fications or revisions, shall not entitle a lessee to any com-
pensation. 
‘‘(h) PRODUCTION AND TRANSPORTATION OF NAT-
URAL GAS; SUBMISSION OF PLAN TO FEDERAL ENERGY 
REGULATORY COMMISSION; IMPACT STATEMENT.—If any 
development and production plan submitted to the Sec-
retary pursuant to this section provides for the production 
and transportation of natural gas, the lessee shall contem-
poraneously submit to the Federal Energy Regulatory 
Commission that portion of such plan that relates to the 
facilities for transportation of natural gas. The Secretary 
and the Federal Energy Regulatory Commission shall 
agree as to which of them shall prepare an environmental 
impact statement pursuant to the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable 
to such portion of such plan, or conduct studies as to the 
effect on the environment of implementing it. Thereafter, 
the findings and recommendations by the agency pre-
648 
paring such environmental impact statement or con-
ducting such studies pursuant to such agreement shall be 
adopted by the other agency, and such other agency shall 
not independently prepare another environmental impact 
statement or duplicate such studies with respect to such 
portion of such plan, but the Federal Energy Regulatory 
Commission, in connection with its review of an applica-
tion for a certificate of public convenience and necessity 
applicable to such transportation facilities pursuant to sec-
tion 7 of the Natural Gas Act (15 U.S.C. 717f), may pre-
pare such environmental studies or statement relevant to 
certification of such transportation facilities as have not 
been covered by an environmental impact statement or 
studies prepared by the Secretary. The Secretary, in con-
sultation with the Federal Energy Regulatory Commis-
sion, shall promulgate rules to implement this subsection, 
but the Federal Energy Regulatory Commission shall re-
tain sole authority with respect to rules and procedures 
applicable to the filing of any application with the Com-
mission and to all aspects of the Commission’s review of, 
and action on, any such application.’’.
649 
SEC. 6514. FEDERAL ENERGY NATURAL RESOURCES EN-
HANCEMENT FUND ACT OF 2005. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Federal Energy Natural Resources Enhancement Fund 
Act of 2005’’. 
(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.
650 
(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) establish a fund for the monitoring and 
management of wildlife and fish, and their habitats, 
and air, water, and other natural resources related 
to energy and minerals development on Federal on-
shore and offshore lands;
651 
(2) make available receipts derived from sales, 
bonus bids, and royalties from onshore and offshore 
gas, mineral, oil, and any additional form of energy 
exploration and development under the laws of the 
United States for the purposes of such fund; 
(3) distribute funds from such fund each fiscal 
year to the Secretary of the Interior and the States; 
and 
(4) use the distributed funds to secure the nec-
essary 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;
652 
(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; 
(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
FUND.—The term ‘‘En-
hancement Fund’’ means the Federal Energy Nat-
ural Resources Enhancement Fund established by 
subsection (e). 
(2) STATE.—The term ‘‘State’’ means the State 
government agency primarily responsible for fish 
and wildlife trust resources within a State. 
(e) ESTABLISHMENT AND USE OF FEDERAL ENERGY 
NATURAL RESOURCES ENHANCEMENT FUND.— 
(1) ENHANCEMENT
FUND.—There is estab-
lished in the Treasury a separate account to be
653 
known as the ‘‘Federal Energy Natural Resources 
Enhancement Fund’’. 
(2) FUNDING.—The Secretary of the Treasury 
shall deposit in the Enhancement Fund— 
(A) such sums as are provided by sections 
9(b)(4)(A)(ii), 9(b)(4)(B)(ii), 9(c)(4)(A)(ii), and 
9(c)(4)(B)(ii) of the Outer Continental Shelf 
Lands Act, as amended by this Act; 
(B)(i) during the period of October 1, 
2006, through September 30, 2015, 0.5 percent 
of all sums paid into the Treasury under sec-
tion 35 of the Mineral Leasing Act (30 U.S.C. 
191), and 
(ii) beginning October 1, 2015, and there-
after, 2.5 percent of all sums paid into the 
Treasury under section 35 of the Mineral Leas-
ing Act (30 U.S.C. 191); and 
(C)(i) during the period of October 1, 
2006, through September 30, 2015, 0.5 percent 
of all sums paid into the Treasury from receipts 
derived from bonus bids and royalties from 
other mineral leasing on public lands, and 
(ii) beginning October 1, 2015, and there-
after, 2.5 percent of all sums paid into the 
Treasury from receipts derived from bonus bids
654 
and royalties from other mineral leasing on 
public lands. 
(3) INVESTMENTS.—The Secretary of the 
Treasury shall invest the amounts deposited under 
paragraph (2) and all accrued interest on the 
amounts deposited under paragraph (2) only in in-
terest bearing obligations of the United States or in 
obligations guaranteed as to both principal and in-
terest by the United States. 
(4) PAYMENT
TO
SECRETARY
OF
THE
INTE-
RIOR.— 
(A) IN GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
one-third of amounts deposited into the En-
hancement Fund, together with the interest 
thereon, shall be available, without fiscal year 
limitations, to the Secretary of the Interior for 
use for the purposes described in (c)(4). 
(B) WITHDRAWALS
AND
TRANSFER
OF 
FUNDS.—The Secretary of the Treasury shall 
withdraw such amounts from the Enhancement 
Fund as the Secretary of the Interior may re-
quest, subject to the limitation in (A), and 
transfer such amounts to the Secretary of the 
Interior to be used, at the discretion of the Sec-
655 
retary of the Interior, by the Minerals Manage-
ment Service, the Bureau of Land Manage-
ment, and the United States Fish and Wildlife 
Service for use for the purposes described in 
subsection (c)(4). 
(5) PAYMENT TO STATES.— 
(A) IN GENERAL.—Beginning with fiscal 
year 2007, and in each fiscal year thereafter, 
two-thirds of amounts deposited into the En-
hancement Fund, together with the interest 
thereon, shall be available, without fiscal year 
limitations, to the States for use for the pur-
poses described in (c)(4). 
(B) WITHDRAWALS
AND
TRANSFER
OF 
FUNDS.—Within the first 90 days of each fiscal 
year, the Secretary of the Treasury shall with-
draw amounts from the Enhancement Fund 
and transfer such amounts to the States based 
on the proportion of all receipts that were col-
lected the previous fiscal year from Federal 
leases within the boundaries of each State and 
each State’s outer Continental Shelf Adjacent 
Zone as determined in accordance with section 
4(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1333(a)), as amended by this Act.
656 
(C) USE OF PAYMENTS BY STATE.—Each 
State shall use the payments made under sub-
paragraph (B) only for carrying out projects 
and programs for the purposes described in 
(c)(4). 
(D) ENCOURAGE USE OF PRIVATE FUNDS 
BY STATE.—Each State shall use the payments 
made under subparagraph (B) to leverage pri-
vate funds for carrying out projects for the pur-
poses described in (c)(4). 
(f) LIMITATION ON USE.—Amounts available under 
this section may not be used for the purchase of any inter-
est in land. 
(g) REPORTS TO CONGRESS.— 
(1) IN
GENERAL.—Beginning in fiscal year 
2008 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
657 
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-
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 paragraphs 
(2)(A) and (2)(B). 
SEC. 6515. TERMINATION OF EFFECT OF LAWS PROHIB-
ITING 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
658 
gas leasing and preleasing activities for any area of the 
outer Continental Shelf shall have no force or effect. 
SEC. 6516. 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), unless the facility, transportation 
corridor, or operating area, respectively, is to be located 
in an area of the outer Continental Shelf that is unavail-
able for oil and gas or natural gas leasing by operation 
of law. 
(b) EXCEPTIONS.—The President may grant an ex-
ception to subsection (a) after a finding that such excep-
tion is required in the national interest. 
SEC. 6517. 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
659 
onshore or offshore, if the Secretary finds that such lease 
qualifies for repurchase and cancellation under the regula-
tions authorized by this section. 
(b) REGULATIONS.—Not later than 365 days after 
the date of the enactment of this Act, the Secretary shall 
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
660 
(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 
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.
661 
(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. 
(c) NO PREJUDICE.—This section shall not be inter-
preted to prejudice any other rights that the lessee would 
have in the absence of this section. 
SEC. 6518. OFFSITE ENVIRONMENTAL MITIGATION. 
Notwithstanding any other provision of law, any per-
son conducting activities under the Mineral Leasing Act 
(30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 
U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac-
quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 
U.S.C. 552 et seq.), the General Mining Act of 1872 (30 
U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 
601 et seq.), or the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.), may in satisfying any mitigation 
requirements associated with such activities propose miti-
gation measures on a site away from the area impacted 
and the Secretary of the Interior shall accept these pro-
posed measures if the Secretary finds that they generally 
achieve the purposes for which mitigation measures apper-
tained.
662 
SEC. 6519. AMENDMENTS TO THE MINERAL LEASING ACT. 
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 
226(g)) is amended to read as follows: 
‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI-
TIES.— 
‘‘(1) REGULATION
OF
SURFACE-DISTURBING 
ACTIVITIES.—The Secretary of the Interior, or for 
National Forest lands, the Secretary of Agriculture, 
shall regulate all surface-disturbing activities con-
ducted pursuant to any lease issued under this Act, 
and shall determine reclamation and other actions as 
required in the interest of conservation of surface re-
sources. 
‘‘(2) SUBMISSION OF EXPLORATION PLAN; COM-
PLETION REVIEW; COMPLIANCE REVIEW.— 
‘‘(A) Prior to beginning oil and gas explo-
ration activities, a lessee shall submit an explo-
ration plan to the Secretary of the Interior for 
review. 
‘‘(B) The Secretary shall review the plan 
for completeness within 10 days of submission. 
‘‘(C) In the event the exploration plan is 
determined to be incomplete, the Secretary shall 
notify the lessee in writing and specify the 
items or information needed to complete the ex-
ploration plan.
663 
‘‘(D) The Secretary shall have 10 days to 
review any modified exploration plan submitted 
by the lessee. 
‘‘(E) To be deemed complete, an explo-
ration plan shall include, in the degree of detail 
to be determined by the Secretary by rule or 
regulation— 
‘‘(i) a drilling plan containing a de-
scription of the drilling program; 
‘‘(ii) the surface and projected com-
pletion zone location; 
‘‘(iii) pertinent geologic data; 
‘‘(iv) expected hazards, and proposed 
mitigation measures to address such haz-
ards; 
‘‘(v) a schedule of anticipated explo-
ration activities to be undertaken; 
‘‘(vi) a description of equipment to be 
used for such activities; 
‘‘(vii) a certification from the lessee 
stating that the exploration plan complies 
with all lease, regulatory and statutory re-
quirements in effect on the date of the 
issuance of the lease;