‘‘(2)’’; and 
(2) by designating the last sentence as para-
graph (3). 
SEC. 304. OIL AND GAS LEASING SYSTEM. 
(a) ONSHORE OIL AND GAS LEASING.—Section 17(a) 
of the Mineral Leasing Act (30 U.S.C. 226(a)) is amended 
to read as follows: 
‘‘(a)(1) All lands subject to disposition under this Act 
that are known or believed to contain oil or gas deposits 
may be leased by the Secretary. 
‘‘(2) Leasing activities under this Act shall be con-
ducted to assure receipt of fair market value for the lands 
and resources leased and the rights conveyed by the Fed-
eral Government.’’. 
(b) COMPETITIVE BIDDING.—Section 17(b) of the 
Mineral Leasing Act (30 U.S.C. 226(b)), is amended by 
striking so much as precedes paragraph (2) and inserting 
the following: 
‘‘(b)(1)(A) All lands to be leased shall be leased as 
provided in this paragraph to the highest responsible 
qualified bidder by competitive bidding under general reg-
ulations in units of not more than 2,560 acres, except in 
Alaska, where units shall be not more than 5,760 acres. 
Such units shall be as nearly compact as possible. Lease 
sales shall be conducted by sealed bid. Lease sales shall 
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be held for a State on a statewide basis where eligible 
lands in such States are available no more than 3 times 
per year per State, unless the Secretary of the Interior 
determines additional sales are necessary. A lease shall be 
conditioned upon the payment of a royalty at a rate of 
not less than 12.5 percent in amount or value of the pro-
duction removed or sold from the lease. The Secretary 
may issue a lease to the responsible qualified bidder with 
the highest bid that is equal to or greater than the na-
tional minimum acceptable bid, with evaluation of the 
value of the lands proposed for lease. The Secretary shall 
decide whether to accept a bid and issue a lease within 
90 days following payment by the successful bidder of the 
remainder of the bonus bid, if any, and the annual rental 
for the first lease year. All bids for less than the national 
minimum acceptable bid shall be rejected. 
‘‘(B)(i) The national minimum acceptable bid shall 
be $2.50 per acre, except that the Secretary may establish 
a higher minimum acceptable bid for leases of areas in 
a State for all leases awarded after the 2-year period be-
ginning on the date of enactment of the Consolidated 
Land, Energy, and Aquatic Resources Act of 2009, if the 
Secretary finds that such a higher amount is necessary— 
‘‘(I) to enhance financial returns to the United 
States; and 
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‘‘(II) to promote more efficient management of 
oil and gas resources on Federal lands. 
‘‘(ii) The proposal or promulgation of any regulation 
to establish a higher minimum acceptable bid for a State 
shall not be considered a major Federal action that is sub-
ject to the requirements of section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969.’’. 
(c) RENTALS.—Section 17(d) of the Mineral Leasing 
(30 U.S.C. 226(d)) is amended to read as follows: 
‘‘(d)(1) During the 2-year period beginning on the 
date of enactment of the Consolidated Land, Energy, and 
Aquatic Resources Act of 2009, all leases issued under 
this section shall be conditioned upon payment by the les-
see of a rental of not less than $2.50 per acre per year 
for the first through fifth years of the lease and not less 
than $3 per acre per year for each year thereafter. After 
the end of such 2-year period, the Secretary may establish 
higher rental rates for all subsequent years, if the Sec-
retary finds that such action is necessary— 
‘‘(A) to enhance financial returns to the United 
States; and 
‘‘(B) to promote more efficient management of 
oil and gas and alternative energy resources on Fed-
eral lands. 
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‘‘(2) A minimum royalty in lieu of rental of not less 
than the rental that otherwise would be required for that 
lease year shall be payable at the expiration of each lease 
year beginning on or after a discovery of oil or gas in pay-
ing quantities on the land leased.’’. 
(d) ELIMINATION OF NONCOMPETITIVE LEASING.— 
The Mineral Leasing Act is amended— 
(1) in section 17(b) (30 U.S.C. 226(b)), by 
striking paragraph (3); 
(2) in section 17 (30 U.S.C. 226) by striking 
subsection (c); 
(3) in section 17(e) (30 U.S.C. 226(e))— 
(A) by striking ‘‘Competitive and non-
competitive leases’’ and inserting ‘‘Leases’’; and 
(B) by striking ‘‘competitive’’; 
(4) in section 31(d)(1) (30 U.S.C. 188(d)(1) by 
striking ‘‘or section 17(c)’’; 
(5) in section 31(e) (30 U.S.C. 188(e))— 
(A) in paragraph (2) by striking ‘‘, or the 
inclusion’’ and all that follows and inserting a 
semicolon; and 
(B) in paragraph (3) by striking ‘‘(A)’’ 
and by striking subparagraph (B); 
(6) by striking section 31(f) (30 U.S.C. 188(f)); 
and 
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(7) in section 31(g) (30 U.S.C. 188(g))— 
(A) in paragraph (1) by striking ‘‘a com-
petitive’’ and all that follows through the semi-
colon and inserting ‘‘in the same manner as the 
original lease issued pursuant to section 17;’’; 
(B) by striking paragraph (2); and 
(C) in paragraph (3) by striking ‘‘, appli-
cable to leases issued under subsection 17(c) of 
this Act (30 U.S.C. 226(c)) except,’’ and insert-
ing ‘‘, except’’. 
SEC. 305. ELECTRONIC REPORTING. 
(a) RIGHTS-OF-WAY.—Section 28(w) of the Mineral 
Leasing Act (30 U.S.C. 185(w)) is amended by adding 
at the end the following: 
‘‘(4) Upon request of a Committee listed under 
paragraph (1), that Committee may receive notifica-
tions under this subsection in electronic format in 
addition to in writing, or in electronic format alone. 
The Committee shall designate to the Secretary the 
appropriate individual or individuals on the Com-
mittee to receive such electronic notices.’’. 
(b) LEASE REINSTATEMENT.—Section 31(e) of the 
Mineral Leasing Act (30 U.S.C. 188(e)) is amended by 
adding at the end the following: ‘‘Upon request of such 
a Committee, that Committee may receive notifications 
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under this subsection in electronic format in addition to 
in writing, or in electronic format alone. The Committee 
shall designate to the Secretary the appropriate individual 
or individuals on the Committee to receive such electronic 
notices.’’. 
SEC. 306. BEST MANAGEMENT PRACTICES. 
Not later than one year after the date of enactment 
of this Act, the Secretary of the Interior shall promulgate 
final regulations that require oil and gas operators to use 
best management practices that ensure the sound, effi-
cient, and environmentally responsible development of oil 
and gas on Federal lands in a manner that avoids where 
practical, minimizes, and mitigates actual and anticipated 
impacts to environmental habitat functions resulting from 
oil and gas development. Such regulations may allow the 
Secretary to approve site-specific adjustments to address 
unique issues and circumstances, on a case-by-case basis. 
All such regulations shall be consistent with the United 
States trust responsibility to Indian tribes. 
SEC. 307. COAL MINE METHANE RECOVERY. 
Section 2 of the Mineral Leasing Act (30 U.S.C. 201 
et seq.) is amended by adding at the end the following: 
‘‘(e) Notwithstanding any other provision of law, any 
Federal coal lease and any modification of an existing coal 
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lease issued under this section shall include terms that es-
tablish the following: 
‘‘(1) Coal mine methane released in conjunction 
with mining activities shall be deemed to be included 
within the scope of the coal lease if the United 
States owns both the coal and gas resources. 
‘‘(2) Any coal lease issued on lands for which 
the United States owns both the coal and gas re-
sources shall include a requirement that the lessee 
recover the coal mine methane associated with the 
leased coal resources to the maximum feasible ex-
tent, taking into account the economics of both the 
mining and methane capture operations. 
‘‘(3) Prior to the issuance of a lease for recov-
ery of coal by deep mining operations, the Secretary 
shall require an analysis to determine the extent to 
which coal mine methane can be economically cap-
tured and either put to productive use or flared. The 
cost of the analysis shall be paid by the lessee and 
carried out by a person chosen by the Secretary with 
professional qualifications in the capture of coal 
mine methane and without financial or other eco-
nomic ties to the lessee. 
‘‘(4) If the Secretary determines that recovery 
or flaring of coal mine methane under a lease is not 
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economically feasible pursuant to paragraph (2), or 
cannot be carried out in a manner that assures the 
protection of mine workers, coal mining under such 
lease may proceed without requiring recovery or flar-
ing of the coal mine methane. 
‘‘(5) Any coal lease that involves federally 
owned coal and nonfederally owned gas resources 
shall require the coal operator to make a reasonable 
effort to negotiate an arrangement with the gas 
owner in advance of conducting any mining oper-
ations. If the coal lessee and gas owner are unable 
to arrange for the joint development of the coal and 
coal mine methane, and if the joint development of 
those resources is economically feasible, the Sec-
retary may seek a court order to allow coal mining 
and methane capture to proceed by the coal lessee, 
subject to a reasonable division of the proceeds from 
the sale of the coal and methane resources. 
‘‘(6) Any assessment of fair market value re-
quired by subsection (a)(1) shall include the value of 
any Federal coal mine methane that is associated 
with Federal coal resources and subject to capture 
and use under this section. 
‘‘(7) Any Federal coal mine methane resources 
that are captured and used or sold pursuant to a 
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Federal coal lease shall be subject to a royalty of not 
less than 12.5 percent.’’. 
SEC. 308. ENVIRONMENTAL REVIEW. 
Section 390 of the Energy Policy Act of 2005 (Public 
Law 109–58; 42 U.S.C. 15942) is repealed. 
SEC. 309. AMENDMENTS TO OUTER CONTINENTAL SHELF 
LANDS ACT. 
(a) CLARIFICATION RELATING TO ALTERNATIVE EN-
ERGY DEVELOPMENT.—Section 8(p)(1) of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1337(p)(1)) is 
amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘or other applicable law,’’; and 
(2) by amending subparagraph (D) to read as 
follows: 
‘‘(D) use, for energy-related purposes, fa-
cilities currently or previously used for activities 
authorized under this Act, except that any oil 
and gas energy-related uses shall not be author-
ized in areas in which oil and gas preleasing, 
leasing, and related activities are prohibited by 
a moratorium.’’. 
(b) NONCOMPETITIVE ALTERNATIVE ENERGY LEASE 
OPTIONS.—Section 8(p)(3) of such Act (43 U.S.C. 
1337(p)(3)) is amended to read as follows: 
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‘‘(3) 
COMPETITIVE
OR
NONCOMPETITIVE 
BASIS.—Any lease, easement, right-of-way, or other 
authorization granted under paragraph (1) shall be 
issued on a competitive basis, unless— 
‘‘(A) the lease, easement, right-of-way, or 
other authorization relates to a project that 
meets the criteria established under section 
388(d) of the Energy Policy Act of 2005 (43 
U.S.C. 1337 note; Public Law 109–58); 
‘‘(B) the lease, easement, right-of-way, or 
other authorization— 
‘‘(i) is for the placement and oper-
ation of a meteorological or marine data 
collection facility; and 
‘‘(ii) has a term of not more than 5 
years; or 
‘‘(C) the Secretary determines, after pro-
viding public notice of a proposed lease, ease-
ment, right-of-way, or other authorization, that 
no competitive interest exists.’’. 
(c) OUTER CONTINENTAL SHELF LEASING PRO-
GRAM.—Section 18(a) of such Act (43 U.S.C. 1344(a)) 
is amended by adding at the end the following new para-
graph: 
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‘‘(5) If a Strategic Plan has been approved 
under section 603 of the Consolidated Land, En-
ergy, and Aquatic Resources Act of 2009 for a re-
gion of the outer Continental Shelf before publica-
tion of a proposed leasing program under subsection 
(c)(3), the Secretary— 
‘‘(A) shall not include in such leasing pro-
gram any location in such region unless it is 
identified in that Strategic Plan as being suit-
able for oil and gas leasing; and 
‘‘(B) shall comply with any restrictions on 
the timing of leasing of such location as are 
recommended in that Strategic Plan.’’. 
(d) DEPOSITS INTO OCEAN RESOURCES CONSERVA-
TION AND ASSISTANCE FUND.—Section 8 of such Act (43 
U.S.C. 1337) is amended by adding at the end the fol-
lowing: 
‘‘(q) DEPOSITS INTO OCEAN RESOURCES CONSERVA-
TION AND ASSISTANCE FUND.—For fiscal year 2009 and 
for each fiscal year thereafter, 10 percent of the revenues 
generated by this section in that fiscal year shall be depos-
ited in the Ocean Resources Conservation and Assistance 
Fund established by section 605 of the Consolidated Land, 
Energy, and Aquatic Resources Act of 2009.’’. 
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TITLE IV—FULL FUNDING FOR 
THE LAND AND WATER CON-
SERVATION FUND 
SEC. 401. AMENDMENTS TO THE LAND AND WATER CON-
SERVATION FUND ACT OF 1965. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 460l–4 et seq.). 
SEC. 402. EXTENSION OF THE LAND AND WATER CON-
SERVATION FUND. 
Section 2 (16 U.S.C. 460l–5) is amended by striking 
‘‘September 30, 2015’’ both places it appears and insert-
ing ‘‘September 30, 2040’’. 
SEC. 403. PERMANENT FUNDING. 
(a) IN GENERAL.—Section 3 (16 U.S.C. 460l–6) is 
amended to read as follows: 
‘‘APPROPRIATIONS 
‘‘SEC. 3. Of the moneys covered into the fund, 
$900,000,000 shall be available each fiscal year for ex-
penditure for the purposes of this Act without further ap-
propriation.’’. 
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(b) CONFORMING AMENDMENT.—Section 2(c)(2) (16 
U.S.C. 460l–5(c)(2)) is amended by striking ‘‘: Provided,’’ 
and all that follows through the end of the sentence and 
inserting a period. 
SEC. 404. ALLOCATION OF FUNDS. 
Section 5 (16 U.S.C. 460l–7) is amended to read as 
follows: 
‘‘ALLOCATION 
‘‘SEC. 5. Of the amounts made available for each fis-
cal year to carry out this Act— 
‘‘(1) 50 percent shall be used to provide finan-
cial assistance to States under section 6; and 
‘‘(2) 50 percent shall be used for Federal pur-
poses under section 7.’’. 
TITLE V—NEW ONSHORE 
LEASING AUTHORITY 
Subtitle A—Solar and Wind 
Leasing 
SEC. 501. COMMERCIAL WIND AND SOLAR LEASING PRO-
GRAM. 
(a) IN GENERAL.—Pursuant to the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1701 et 
seq.) and the National Forest Management Act of 1976 
(16 U.S.C. 1600 et seq.), the Secretary, acting through 
the Director, may issue leases, on a competitive basis, for 
commercial solar or wind energy development on Federal 
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lands under the administrative jurisdiction of the Bureau 
of Land Management or of the Forest Service, except that 
the Secretary may not issue any such lease on National 
Forest System lands over the objection of the Secretary 
of Agriculture. 
(b) FINAL REGULATIONS.—Not later than 18 months 
after the date of enactment of this Act, the Secretary of 
the Interior shall publish final regulations establishing a 
commercial wind and solar leasing program under sub-
section (a). 
(c) COMMENCEMENT OF COMMERCIAL LEASING FOR 
SOLAR AND WIND ENERGY ON PUBLIC LANDS.—Not 
later than 90 days after completion of regulations required 
under subsection (b), or as soon as practicable thereafter, 
and following consultation with affected governors and 
other stakeholders, the Secretary shall conduct lease sales 
under the regulations under this subtitle. 
(d) 
EASEMENTS, 
SPECIAL-USE
PERMITS, 
AND 
RIGHTS-OF-WAY.—Upon completion of regulations re-
quired under subsection (b), easements, special-use per-
mits, and rights-of-way shall not be available for commer-
cial wind and solar projects on Federal lands under the 
administrative jurisdiction of the Bureau of Land Man-
agement or Forest Service, except for the placement and 
operation of testing or data collection devices or facilities 
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that will not result in the commercial sale of electric 
power. 
(e) NONCOMPETITIVE LEASING.— 
(1) IN
GENERAL.—The Secretary may issue 
leases under this section on a noncompetitive basis 
if— 
(A) the lease is for resource data collection 
or equipment testing; 
(B) the lease will not result in the commer-
cial sale of electric power; 
(C) the lease has a term of not more than 
5 years; and 
(D) the Secretary, after public notice of a 
proposed lease, determines that there is no 
competitive interest. 
(2) PREFERENCE.—In any competitive lease 
sale for lands subject to a lease awarded under this 
subsection, the Secretary may give a preference to 
the holder of the lease under this subsection. 
(f) TRANSITION
TO COMMERCIAL LEASING.—The 
Secretary of the Interior, for lands under the jurisdiction 
of the Bureau of Land Management, and the Secretary 
of Agriculture, for lands under the jurisdiction of the For-
est Service, may issue an easement, special-use permit, or 
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right-of-way for a commercial wind or solar project for 
which— 
(1) a plan of development has been submitted 
to the relevant Secretary before the date of enact-
ment of this Act; or 
(2) a meteorological testing tower or other data 
collection device has been installed under an ap-
proved easement, special-use permit, or right-of-way 
before the date of enactment of this Act. 
(g) DILIGENT DEVELOPMENT REQUIREMENTS.—The 
Secretary shall, by regulation, designate work require-
ments and milestones to ensure that diligent development 
is carried out under each lease issued under this subtitle. 
SEC. 502. LAND MANAGEMENT. 
The Secretary, in consultation with the Director of 
the Bureau of Land Management and the Chief of the 
Forest Service, shall issue regulations that— 
(1) establish the duration of leases under this 
subtitle; 
(2) require the holder of a lease granted under 
this subtitle to— 
(A) furnish a surety bond or other form of 
security, as prescribed by the Director; 
(B) upon completion of activities author-
ized by the lease provide for— 
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(i) the restoration of the area that is 
subject to the lease to the condition in 
which the area existed before the granting 
of the lease; or 
(ii) mitigation activities if restoration 
to such condition is impractical; and 
(C) comply with such other requirements 
as the Director and affected Federal land man-
ager consider necessary to protect the interests 
of the public and the United States; and 
(3) establish best management practices and re-
quire renewable energy operators to comply with 
those practices to ensure the sound, efficient, and 
environmentally responsible development of wind and 
solar resources on Federal lands in a manner that 
shall avoid, minimize, and mitigate actual and an-
ticipated impacts to habitat and ecosystem function 
resulting from such development and to areas pro-
posed for wilderness or other protection. 
SEC. 503. REVENUES. 
(a) 
ESTABLISHMENT
OF
PAYMENT
REQUIRE-
MENTS.—The Secretary shall establish royalties, fees, 
rentals, bonus bids, or other payments for leases issued 
under this subtitle, that shall— 
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