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nues are generated is located within the area
formed by the extension of the State’s seaward
lateral boundaries.
‘‘(B) 35 percent of each Coastal Energy
State’s allocable share as determined under
subparagraph (A) shall be allocated among and
paid directly to the coastal political subdivisions
of the State by the Secretary based on the fol-
lowing formula:
‘‘(i) 25 percent shall be allocated
based on the ratio of each coastal political
subdivision’s coastal population to the
coastal population of all coastal political
subdivisions of the Coastal Energy State.
‘‘(ii) 25 percent shall be allocated
based on the ratio of each coastal political
subdivision’s coastline miles to the coast-
line miles of all coastal political subdivi-
sions of the State. In the case of a coastal
political subdivision without a coastline,
the coastline of the political subdivision for
purposes of this clause shall be one-third
the average length of the coastline of the
other coastal political subdivisions of the
State.
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‘‘(iii) 50 percent shall be allocated
based on a formula that allocates 75 per-
cent of the funds based on such coastal po-
litical subdivision’s relative distance from
any leased tract used to calculate that
State’s allocation and 25 percent of the
funds based on the relative level of outer
Continental Shelf oil and gas activities in
a coastal political subdivision to the level of
outer Continental Shelf oil and gas activi-
ties in all coastal political subdivisions in
such State, as determined by the Sec-
retary.
‘‘(d) ADMINISTRATIVE EXPENSES.—Of amounts in
the Fund each fiscal year, the Secretary may use up to
one-half of one percent for the administrative costs of im-
plementing this section.
‘‘(e) DISPOSITION OF FUNDS.—A Coastal Energy
State or coastal political subdivision may use funds pro-
vided to such entity under this section for any payment
that is eligible to be made with funds provided to States
under section 35 of the Mineral Leasing Act (30 U.S.C.
191).’’.
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SEC. 2054. REPURCHASE OF LEASES THAT ARE NOT AL-
LOWED TO BE EXPLORED OR DEVELOPED.
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—Notwithstanding any other provisions of
law, any Federal oil and gas, geothermal, coal, oil shale,
or tar sands lease, whether onshore or offshore, issued by
the Secretary, or units of such leases if unitized, that by
operation of law, including but not limited to denial of a
permit request, (1) is not allowed to be explored in the
lawful manner requested by the lessee, or (2) if explored
resulting in a commercial discovery is not allowed to be
developed or produced in the lawful manner requested by
the lessee, shall, upon the written request of the lessee
and a finding by the Secretary that such lease qualifies,
be authorized for repurchase and cancelled by the Sec-
retary. If a permit, approval, or appeal has been expressly
denied and the proposal of the lessee is found by the Sec-
retary not to have been in compliance with law, the lessee
shall not be entitled to have the lease repurchased and
cancelled. However, if the lessee alleges that the Govern-
ment has failed to act on a proposal of the lessee within
the applicable period of time, the Secretary shall make no
inquiry or determination as to whether the contents of the
request complied with the law, and the Secretary shall re-
strict the Secretary’s findings to whether or not the Gov-
ernment failed to act within the applicable period of time.