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HR 4761 PCS 
the date of the enactment of this Act and before 
July 1, 2010, for an oil and gas lease for an area 
wholly within 100 miles of the coastline within the 
California Adjacent Zone or Florida Adjacent Zone 
shall not be treated as received by the Secretary 
until the earlier of July 1, 2010, or the date on 
which a petition by the Adjacent State for oil and 
gas leasing covering the area within which is located 
the area subject to the oil and gas lease was ap-
proved. 
(b) FURTHER
LEASE
CANCELLATION
AND
EX-
CHANGE PROVISIONS.— 
(1) CANCELLATION OF LEASE.—As part of the 
lease exchange process under this section, the Sec-
retary shall cancel a lease that is exchanged under 
this section. 
(2) CONSENT OF LESSEES.—All lessees holding 
an interest in a lease must consent to cancellation 
of their leasehold interests in order for the lease to 
be cancelled and exchanged under this section. 
(3) WAIVER OF RIGHTS.—As a prerequisite to 
the exchange of a lease under this section, the lessee 
must waive any rights to bring any litigation against 
the United States related to the transaction. 
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HR 4761 PCS 
(4) PLUGGING AND ABANDONMENT.—The plug-
ging and abandonment requirements for any wells 
located on any lease to be cancelled and exchanged 
under this section must be complied with by the les-
sees prior to the cancellation and exchange. 
(c) AREA PARTIALLY WITHIN 100 MILES OF FLOR-
IDA.—An existing oil and gas lease for an area located 
partially within 100 miles of the coastline within the Flor-
ida n Adjacent Zone may only be developed and produced 
using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on 
the area of the lease. This subsection shall not apply if 
Florida has petitioned for leasing closer to the coastline 
than 100 miles. 
(d) EXISTING OIL AND GAS LEASE DEFINED.—In 
this section the term ‘‘existing oil and gas lease’’ means 
an oil and gas lease in effect on the date of the enactment 
of this Act. 
SEC. 26. COASTAL IMPACT ASSISTANCE. 
Section 31 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356a) is repealed. 
SEC. 27. OIL SHALE AND TAR SANDS AMENDMENTS. 
(a) REPEAL OF REQUIREMENT TO ESTABLISH PAY-
MENTS.—Section 369(o) of the Energy Policy Act of 2005 
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119 
HR 4761 PCS 
(Public Law 109–58; 119 Stat. 728; 42 U.S.C. 15927) 
is repealed. 
(b) TREATMENT OF REVENUES.—Section 21 of the 
Mineral Leasing Act (30 U.S.C. 241) is amended by add-
ing at the end the following: 
‘‘(e) REVENUES.— 
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of section 35, all revenues received from and 
under an oil shale or tar sands lease shall be dis-
posed of as provided in this subsection. 
‘‘(2) 
ROYALTY
RATES
FOR
COMMERCIAL 
LEASES.— 
‘‘(A) ROYALTY
RATES.—The Secretary 
shall model the royalty schedule for oil shale 
and tar sands leases based on the royalty pro-
gram currently in effect for the production of 
synthetic crude oil from oil sands in the Prov-
ince of Alberta, Canada. 
‘‘(B) REDUCTION.—The Secretary shall re-
duce any royalty otherwise required to be paid 
under subparagraph (A) under any oil shale or 
tar sands lease on a sliding scale based upon 
market price, with a 10 percent reduction if the 
average futures price of NYMEX Light Sweet 
Crude, or a similar index, drops, for the pre-
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HR 4761 PCS 
vious quarter year, below $50 (in January 1, 
2006, dollars), and an 80 percent reduction if 
the average price drops below $30 (in January 
1, 2006, dollars) for the quarter previous to the 
one in which the production is sold. 
‘‘(3) DISPOSITION OF REVENUES.— 
‘‘(A) DEPOSIT.—The Secretary shall de-
posit into a separate account in the Treasury 
all revenues derived from any oil shale or tar 
sands lease. 
‘‘(B) ALLOCATIONS TO STATES AND LOCAL 
POLITICAL SUBDIVISIONS.—The Secretary shall 
allocate 50 percent of the revenues deposited 
into the account established under subpara-
graph (A) to the State within the boundaries of 
which the leased lands are located, with a por-
tion of that to be paid directly by the Secretary 
to the State’s local political subdivisions as pro-
vided in this paragraph. 
‘‘(C) TRANSMISSION OF ALLOCATIONS.— 
‘‘(i) IN GENERAL.—Not later than the 
last business day of the month after the 
month in which the revenues were received, 
the Secretary shall transmit— 
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HR 4761 PCS 
‘‘(I) to each State two-thirds of 
such State’s allocations under sub-
paragraph (B), and in accordance 
with clauses (ii) and (iii) to certain 
county-equivalent and municipal polit-
ical subdivisions of such State a total 
of one-third of such State’s allocations 
under subparagraph (B), together 
with all accrued interest thereon; and 
‘‘(II) the remaining balance of 
such revenues deposited into the ac-
count that are not allocated under 
subparagraph (B), together with in-
terest thereon, shall be transmitted to 
the miscellaneous receipts account of 
the Treasury, except that until a lease 
has been in production for 20 years 
50 percent of such remaining balance 
derived from a lease shall be paid in 
accordance with subclause (I). 
‘‘(ii) 
ALLOCATIONS
TO
CERTAIN 
COUNTY-EQUIVALENT POLITICAL SUBDIVI-
SIONS.—The Secretary shall under clause 
(i)(I) make equitable allocations of the rev-
enues to county-equivalent political sub-
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122 
HR 4761 PCS 
divisions that the Secretary determines are 
closely associated with the leasing and pro-
duction of oil shale and tar sands, under a 
formula that the Secretary shall determine 
by regulation. 
‘‘(iii) ALLOCATIONS
TO
MUNICIPAL 
POLITICAL SUBDIVISIONS.—The initial al-
location to each county-equivalent political 
subdivision under clause (ii) shall be fur-
ther allocated to the county-equivalent po-
litical subdivision and any municipal polit-
ical subdivisions located partially or wholly 
within the boundaries of the county-equiva-
lent political subdivision on an equitable 
basis under a formula that the Secretary 
shall determine by regulation. 
‘‘(D) INVESTMENT OF DEPOSITS.—The de-
posits in the Treasury account established 
under this section shall be invested by the Sec-
retary of the Treasury in securities backed by 
the full faith and credit of the United States 
having maturities suitable to the needs of the 
account and yielding the highest reasonably 
available interest rates as determined by the 
Secretary of the Treasury. 
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123 
HR 4761 PCS 
‘‘(E) USE
OF
FUNDS.—A recipient of 
funds under this subsection may use the funds 
for any lawful purpose as determined by State 
law. Funds allocated under this subsection to 
States and local political subdivisions may be 
used as matching funds for other Federal pro-
grams without limitation. Funds allocated to 
local political subdivisions under this subsection 
may not be used in calculation of payments to 
such local political subdivisions under programs 
for payments in lieu of taxes or other similar 
programs. 
‘‘(F) NO ACCOUNTING REQUIRED.—No re-
cipient of funds under this subsection shall be 
required to account to the Federal Government 
for the expenditure of such funds, except as 
otherwise may be required by law. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) 
COUNTY-EQUIVALENT
POLITICAL 
SUBDIVISION.—The term ‘county-equivalent po-
litical subdivision’ means a political jurisdiction 
immediately below the level of State govern-
ment, including a county, parish, borough in 
Alaska, independent municipality not part of a 
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124 
HR 4761 PCS 
county, parish, or borough in Alaska, or other 
equivalent subdivision of a State. 
‘‘(B) 
MUNICIPAL
POLITICAL
SUBDIVI-
SION.—The term ‘municipal political subdivi-
sion’ means a municipality located within and 
part of a county, parish, borough in Alaska, or 
other equivalent subdivision of a State.’’. 
SEC. 28. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAY-
MENTS UNDER SECURE RURAL SCHOOLS 
AND COMMUNITY SELF-DETERMINATION ACT 
OF 2000. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended by inserting after subsection 
(i), as added by section 7 of this Act, the following new 
subsection: 
‘‘(j) CONDITIONAL AVAILABILITY
OF FUNDS
FOR 
PAYMENTS UNDER SECURE RURAL SCHOOLS AND COM-
MUNITY SELF-DETERMINATION ACT OF 2000.— 
‘‘(1) AVAILABILITY
OF
FUNDS.—Subject to 
paragraph (2), but notwithstanding any other provi-
sion of this section, $50,000,000 of OCS Receipts 
shall be available to the Secretary of the Treasury 
for each of fiscal years 2007 through 2012 to make 
payments under sections 102 and 103 of the Secure 
Rural Schools and Community Self-Determination 
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125 
HR 4761 PCS 
Act of 2000 (Public Law 106–393; 16 U.S.C. 500 
note). The Secretary of the Treasury shall use the 
funds made available by this subsection to make 
such payments in lieu of using funds in the Treas-
ury not otherwise appropriated, as otherwise author-
ized by sections 102(b)(3) and 103(b)(2) of such 
Act. 
‘‘(2) CONDITION ON AVAILABILITY.—OCS Re-
ceipts shall be available under paragraph (1) for a 
fiscal year only if— 
‘‘(A) title I of the Secure Rural Schools 
and Community Self-Determination Act of 
2000 has been reauthorized through at least 
that fiscal year; and 
‘‘(B) the authority to initiate projects 
under titles II and III of such Act has been ex-
tended through at least that fiscal year.’’. 
SEC. 29. SENSE OF THE CONGRESS TO BUY AND BUILD 
AMERICAN. 
(a) BUY AND BUILD AMERICAN.—It is the intention 
of the Congress that this Act, among other things, result 
in a healthy and growing American industrial, manufac-
turing, transportation, and service sector employing the 
vast talents of America’s workforce to assist in the devel-
opment of affordable energy from the Outer Continental 
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126 
HR 4761 PCS 
Shelf. Moreover, the Congress intends to monitor the de-
ployment of personnel and material in the Outer Conti-
nental Shelf to encourage the development of American 
technology and manufacturing to enable United States 
workers to benefit from this Act by good jobs and careers, 
as well as the establishment of important industrial facili-
ties to support expanded access to American resources. 
(b) SAFEGUARD FOR EXTRAORDINARY ABILITY.— 
Section 30(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘regulations which’’ and insert-
ing ‘‘regulations that shall be supplemental and com-
plimentary with and under no circumstances a substi-
tution for the provisions of the Constitution and laws of 
the United States extended to the subsoil and seabed of 
the outer Continental Shelf pursuant to section 4(a)(1) 
of this Act, except insofar as such laws would otherwise 
apply to individuals who have extraordinary ability in the 
sciences, arts, education, or business, which has been dem-
onstrated by sustained national or international acclaim, 
and that’’. 
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127 
HR 4761 PCS 
SEC. 30. AVAILABILITY OF OCS RECEIPTS TO PROVIDE 
FUNDS FOR TRANSPORTATION INFRASTRUC-
TURE OF THE NATION’S CAPITAL. 
Section 9 of the Outer Continental Shelf Lands Act 
(43. U.S.C. 1338) is further amended by adding at the 
end the following new subsection: 
‘‘(k) AVAILABILITY OF FUNDS FOR IMPROVEMENTS 
TO THE TRANSPORTATION INFRASTRUCTURE OF THE NA-
TION’S CAPITAL.—Notwithstanding any other provision of 
this section, $150,000,000 of OCS Receipts shall be avail-
able to the Secretary of the Treasury for each of fiscal 
years 2007 through 2016 to make payments, subject to 
appropriations, to the Washington Metropolitan Area 
Transit Authority (as defined in the National Capital 
Transportation Act of 1969) (sec. 9—1111.01 et seq., 
D.C. Official Code) to finance in part the capital and pre-
ventive maintenance projects included in the Capital Im-
provement Program approved by the Board of Directors 
of the Washington Metropolitan Area Transit Authority. 
Passed the House of Representatives June 29, 2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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