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SEC. 2204. LEASE SALES.
(a) IN GENERAL.—Lands may be leased pursuant to
this title to any person qualified to obtain a lease for de-
posits of oil and gas under the Mineral Leasing Act (30
U.S.C. 181 et seq.).
(b) PROCEDURES.—The Secretary shall, by regula-
tion, establish procedures for—
(1) receipt and consideration of sealed nomina-
tions for any area in the Coastal Plain for inclusion
in, or exclusion (as provided in subsection (c)) from,
a lease sale;
(2) the holding of lease sales after such nomina-
tion process; and
(3) public notice of and comment on designa-
tion of areas to be included in, or excluded from, a
lease sale.
(c) LEASE SALE BIDS.—Bidding for leases under
this title shall be by sealed competitive cash bonus bids.
(d) ACREAGE MINIMUM IN FIRST SALE.—In the first
lease sale under this title, the Secretary shall offer for
lease those tracts the Secretary considers to have the
greatest potential for the discovery of hydrocarbons, tak-
ing into consideration nominations received pursuant to
subsection (b)(1), but in no case less than 200,000 acres.
(e) TIMING
OF
LEASE
SALES.—The Secretary
shall—
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(1) conduct the first lease sale under this title
within 22 months after the date of the enactment of
this Act; and
(2) conduct additional sales so long as sufficient
interest in development exists to warrant, in the Sec-
retary’s judgment, the conduct of such sales.
SEC. 2205. GRANT OF LEASES BY THE SECRETARY.
(a) IN GENERAL.—The Secretary may grant to the
highest responsible qualified bidder in a lease sale con-
ducted pursuant to section 2204 any lands to be leased
on the Coastal Plain upon payment by the lessee of such
bonus as may be accepted by the Secretary.
(b) SUBSEQUENT
TRANSFERS.—No lease issued
under this title may be sold, exchanged, assigned, sublet,
or otherwise transferred except with the approval of the
Secretary. Prior to any such approval the Secretary shall
consult with, and give due consideration to the views of,
the Attorney General.
SEC. 2206. LEASE TERMS AND CONDITIONS.
(a) IN GENERAL.—An oil or gas lease issued pursu-
ant to this title shall—
(1) provide for the payment of a royalty of not
less than 121⁄2 percent in amount or value of the
production removed or sold from the lease, as deter-
992
mined by the Secretary under the regulations appli-
cable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a
seasonal basis, portions of the Coastal Plain to ex-
ploratory drilling activities as necessary to protect
caribou calving areas and other species of fish and
wildlife;
(3) require that the lessee of lands within the
Coastal Plain shall be fully responsible and liable for
the reclamation of lands within the Coastal Plain
and any other Federal lands that are adversely af-
fected in connection with exploration, development,
production, or transportation activities conducted
under the lease and within the Coastal Plain by the
lessee or by any of the subcontractors or agents of
the lessee;
(4) provide that the lessee may not delegate or
convey, by contract or otherwise, the reclamation re-
sponsibility and liability to another person without
the express written approval of the Secretary;
(5) provide that the standard of reclamation for
lands required to be reclaimed under this title shall
be, as nearly as practicable, a condition capable of
supporting the uses which the lands were capable of
supporting prior to any exploration, development, or
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production activities, or upon application by the les-
see, to a higher or better use as approved by the
Secretary;
(6) contain terms and conditions relating to
protection of fish and wildlife, their habitat, and the
environment 
as 
required 
pursuant 
to 
section
2203(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share,
as determined by the level of obligation previously
agreed to in the 1974 agreement implementing sec-
tion 29 of the Federal Agreement and Grant of
Right of Way for the Operation of the Trans-Alaska
Pipeline, of employment and contracting for Alaska
Natives and Alaska Native Corporations from
throughout the State;
(8) prohibit the export of oil produced under
the lease; and
(9) contain such other provisions as the Sec-
retary determines necessary to ensure compliance
with the provisions of this title and the regulations
issued under this title.
(b) PROJECT LABOR AGREEMENTS.—The Secretary,
as a term and condition of each lease under this title and
in recognizing the Government’s proprietary interest in