miles from the coastline of Florida and is located 
west of 86 degrees 41 minutes longitude. 
(2) ADMINISTRATIVE PROCESS.—The Secretary 
of the Interior shall establish a reasonable adminis-
trative process through which a lessee may exercise 
its option to exchange an oil and gas lease for a new 
oil and gas lease as provided for in this section. 
Such exchanges, including the issuance of new 
leases, shall not be considered to be major Federal 
actions for purposes of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.). Fur-
ther, such exchanges conducted in accordance with 
this section are deemed to be in compliance all provi-
sions of the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.). The Secretary shall issue a 
new lease in exchange for the lease being exchanged 
notwithstanding that the area that will be subject to 
the lease may be withdrawn from leasing under the 
Outer Continental Shelf Lands Act or otherwise un-
available for leasing under the provisions of any 
other law. 
(3) OPERATING
RESTRICTIONS.—A new lease 
issued in exchange for an existing lease under this 
section shall be subject to such national defense op-
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sroberts on PROD1PC70 with BILLS
erating restrictions on the OCS tract covered by the 
new lease as may be applicable upon issuance. 
(4) PRIORITY.—The Secretary shall give pri-
ority in the lease exchange process based on the 
amount of the original bonus bid paid for the 
issuance of each lease to be exchanged. The Sec-
retary shall allow leases covering partial tracts to be 
exchanged for leases covering full tracts conditioned 
upon payment of additional bonus bids on a per-acre 
basis as determined by the average per acre of the 
original bonus bid per acre for the partial tract 
being exchanged. 
(5) EXPLORATION
PLANS.—Any exploration 
plan submitted to the Secretary of the Interior after 
the date of the enactment of this Act and before 
July 1, 2012, for an oil and gas lease for an area 
wholly within 125 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, 2012, 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. 
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(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. 
(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) 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. 
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SEC. 25. COASTAL IMPACT ASSISTANCE. 
Section 31 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356a) is repealed. 
SEC. 26. OIL SHALE AND TAR SANDS AMENDMENTS. 
(a) REPEAL OF REQUIREMENT TO ESTABLISH PAY-
MENTS.—Section 369(o) of the Energy Policy Act of 2005 
(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) INITIAL PRODUCTION.—For the first 
10 years after initial production under each oil 
shale or tar sands lease issued under the com-
mercial leasing program established under sub-
section (d), the Secretary shall set the royalty 
rate at not less than 1 percent nor more than 
3 percent of the gross value of production. 
However, the initial production period royalty 
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sroberts on PROD1PC70 with BILLS
rate set by the Secretary shall not apply to pro-
duction occurring more than 15 years after the 
date of issuance of the lease. 
‘‘(B) SUBSEQUENT
PERIODS.—After the 
periods of time specified in subparagraph (A), 
the Secretary shall set the royalty rate on each 
oil shale or tar sands lease issued under the 
commercial leasing program established under 
subsection (d) at not less than 6 percent nor 
more than 9 percent of the gross value of pro-
duction. 
‘‘(C) REDUCTION.—The Secretary shall re-
duce any royalty otherwise required to be paid 
under subparagraphs (A) and (B) under any oil 
shale or tar sands lease on a sliding scale based 
upon market price, with a 10 percent reduction 
if the monthly average price of NYMEX West 
Texas Intermediate crude oil at Cushing, Okla-
homa, (WTI) drops below $50 (in 2005 dollars) 
for the month in which the production is sold, 
and an 80 percent reduction if the monthly av-
erage price of WTI drops below $30 (in 2005 
dollars) for the month in which the production 
is sold. 
‘‘(3) DISPOSITION OF REVENUES.— 
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