Title: Alaska Oil and Gas Production Act
Policy area: Energy

Summary:
Alaska Oil and Gas Production Act
This bill authorizes the exploration, leasing, development, production, and transportation of oil and gas to and from the Coastal Plain of Alaska.
The Bureau of Land Management (BLM)	must establish a competitive oil and gas leasing program for oil and gas exploration, development, and production on the Coastal Plain.
The bill amends the Alaska National Interest Lands Conservation Act to repeal the prohibition against production of oil and gas from the Arctic National Wildlife Refuge.
The BLM may not close land within the Coastal Plain to oil and gas leasing, exploration, development, or production except in accordance with this bill.
The BLM must conduct a second lease sale in Coastal Plain areas within 18 months after the first lease sale is conducted under this bill.
The bill sets forth certain environmental protection standards for the Coastal Plain that the BLM must follow when administering this bill.
The bill directs the BLM to convey certain land to the Kaktovik Inupiat Corporation and the Arctic Slope Regional Corporation.
The bill establishes the western coastal boundary of the Arctic National Wildlife Refuge.
The bill establishes the Coastal Plain Local Government Impact Aid Assistance Fund to provide financial assistance to governmental entities in Alaska directly impacted by oil or gas exploration or production on the Coastal Plain. Additionally, the bill restricts the use of such financial assistance to specified purposes, including mitigation and coordination efforts.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 49 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                 S. 49

  To provide for a leasing program within the Coastal Plain, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 5, 2017

 Ms. Murkowski (for herself and Mr. Sullivan) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To provide for a leasing program within the Coastal Plain, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Alaska Oil and Gas 
Production Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Leasing program for land within the Coastal Plain.
Sec. 4. Lease sales.
Sec. 5. Grant of leases by the Secretary.
Sec. 6. Lease terms and conditions.
Sec. 7. Coastal Plain environmental protection.
Sec. 8. Rights-of-way and easements across the Coastal Plain.
Sec. 9. Conveyance.
Sec. 10. Clarification of western coastal boundary of ANWR.
Sec. 11. Local government impact aid and community service assistance.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastal plain.--The term ``Coastal Plain'' means the 
        area generally described in appendix I to part 37 of title 50, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this Act), except that the westerly boundary of 
        the Coastal Plain shall be the boundary depicted on the map 
        prepared under section 10(b).
            (2) Deformed area of the coastal plain.--The term 
        ``Deformed Area of the Coastal Plain'' means the approximately 
        1,125,000 acres generally depicted as the deformed area south 
        and east of the Marsh Creek anticline in figure 2 of fact sheet 
        0028-01 of the United States Geological Survey.
            (3) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to--
                    (A) section 1002 of the Alaska National Interest 
                Lands Conservation Act (16 U.S.C. 3142); and
                    (B) section 102(2)(C) of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) Undeformed area of the coastal plain.--The term 
        ``Undeformed Area of the Coastal Plain'' means the 
        approximately 375,000 acres generally depicted as the 
        undeformed area north and west of the Marsh Creek anticline in 
        figure 2 of fact sheet 0028-01 of the United States Geological 
        Survey.

SEC. 3. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

    (a) In General.--
            (1) Authorization.--Congress authorizes the exploration, 
        leasing, development, production, and transportation of oil and 
        gas in and from the Coastal Plain.
            (2) Actions.--The Secretary shall take such actions as are 
        necessary--
                    (A) to establish and implement, in accordance with 
                this Act, a competitive oil and gas leasing program 
                that will result in an environmentally sound program 
                for the exploration, development, and production of the 
                oil and gas resources of the Coastal Plain; and
                    (B) to administer this Act through regulations, 
                lease terms, conditions, restrictions, prohibitions, 
                stipulations, and other provisions that--
                            (i) ensure, to the maximum extent 
                        practicable, that the oil and gas exploration, 
                        development, and production activities on the 
                        Coastal Plain will result in no significant 
                        adverse effect on fish and wildlife, fish and 
                        wildlife habitat, subsistence resources, and 
                        the environment; and
                            (ii) require the application of the best 
                        commercially available technology for oil and 
                        gas exploration, development, and production to 
                        all exploration, development, and production 
                        operations under this Act in a manner that 
                        ensures the receipt of fair market value by the 
                        public for the mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents contained 
        in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
        striking the item relating to section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.)--
                    (A) the oil and gas preleasing and leasing program 
                authorized by this Act, and any activities authorized 
                under this Act, including exploration, development, 
                production, and transportation activities, shall be 
                considered to be compatible with the purposes for which 
                the Arctic National Wildlife Refuge was established; 
                and
                    (B) no further findings or decisions shall be 
                required to implement the preleasing and leasing 
                program and the activities authorized under this Act.
            (2) Compliance with nepa for oil and gas preleasing and 
        leasing and production from the first lease sale.--
                    (A) In general.--Subject to paragraph (3), the oil 
                and gas preleasing and leasing program authorized by 
                this Act, including the first lease sale conducted 
                under the leasing program and exploration, development, 
                production, and transportation activities associated 
                with any lease issued under the first lease sale, shall 
                not constitute a major Federal action for purposes of 
                the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
                    (B) No further review required.--Subject to 
                paragraph (3), no further review under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.) shall be required to implement the oil and gas 
                preleasing and leasing program authorized by this Act, 
                including the first lease sale conducted under the 
                leasing program and exploration, development, 
                production, and transportation activities associated 
                with any lease issued under the first lease sale.
            (3) Compliance with nepa for other actions.--
                    (A) In general.--Before conducting the second lease 
                sale under this Act, the Secretary shall prepare an 
                environmental impact statement in accordance with the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.) with respect to the actions authorized by 
                this Act that are not referred to in paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not--
                            (i) identify nonleasing alternative courses 
                        of action; or
                            (ii) analyze the environmental effects of 
                        those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 2 years after the date of enactment of this Act, 
                the Secretary shall identify only a preferred action 
                and a single leasing alternative for the second lease 
                sale authorized under this Act.
                    (D) Effect of compliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy all requirements for the 
                analysis and consideration of the environmental effects 
                of proposed leasing under this Act.
    (d) Relationship to State and Local Authority.--Nothing in this Act 
expands or limits any State or local regulatory authority.
    (e) Limitation on Closed Areas.--The Secretary shall not close land 
within the Coastal Plain to oil and gas leasing or to exploration, 
development, or production except in accordance with this Act.
    (f) Regulations.--Not later than 1 year after the date of enactment 
of this Act, in consultation with the State of Alaska, North Slope 
Borough, Alaska, the City of Kaktovik, Alaska, and the Arctic Slope 
Regional Corporation, the Secretary shall promulgate such regulations 
as are necessary to carry out this Act.
    (g) Authorization on KIC-ASRC Private Land.--Exploratory drilling, 
leasing, development, and production of oil and gas resources are 
authorized on the private land owned by the Kaktovik Inupiat 
Corporation and the Arctic Slope Regional Corporation described in 
Appendix 2 of the agreement between the Arctic Slope Regional 
Corporation and the United States, dated August 9, 1983.

SEC. 4. LEASE SALES.

    (a) In General.--Land may be leased pursuant to this Act to any 
person qualified to obtain a lease for deposits of oil and gas under 
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in a lease sale;
            (2) the holding of lease sales after the nomination process 
        described in paragraph (1); and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this Act shall be by 
sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this Act, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 300,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 1 year after the date of enactment of 
        this Act, conduct the first lease sale under this Act;
            (2) not later than 18 months after the date on which the 
        first lease sale is conducted under paragraph (1), conduct a 
        second lease sale under this Act; and
            (3) conduct additional sales at appropriate intervals if 
        sufficient interest in exploration or development exists to 
        warrant the conduct of the additional sales.

SEC. 5. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--Upon payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary shall grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 4 a lease for any land on the Coastal Plain.
    (b) Subsequent Transfers.--No lease issued under this Act may be 
sold, exchanged, assigned, sublet, or otherwise transferred except with 
the approval of the Secretary.

SEC. 6. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this Act 
shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent of the amount or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary, after consultation with the 
        State of Alaska, North Slope Borough, Alaska, the City of 
        Kaktovik, Alaska, and the Arctic Slope Regional Corporation, 
        may--
                    (A) close such portions of the Deformed Area of the 
                Coastal Plain to exploratory drilling activities as are 
                necessary to protect caribou calving areas and other 
                species of fish and wildlife; and
                    (B) close, on a seasonal basis only, such portions 
                of the Undeformed Area of the Coastal Plain to 
                exploratory drilling activities as are necessary to 
                protect caribou calving areas and other species of fish 
                and wildlife;
            (3) require that each lessee of land within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of land that is adversely affected in connection with 
        exploration, development, production, or transportation 
        activities within the Coastal Plain conducted 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 responsibility and 
        liability described in paragraph (3) to another person without 
        the express written approval of the Secretary;
            (5) provide that the standard of reclamation for land 
        required to be reclaimed under this Act shall be, to the 
        maximum extent practicable--
                    (A) a condition capable of supporting the uses that 
                the land was capable of supporting prior to any 
                exploration, development, or production activities; or
                    (B) on application by the lessee, to a higher or 
                better standard, as approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        3(a)(2); and
            (7) provide that each lessee, and each agent and contractor 
        of a lessee, shall use their best efforts to provide a fair 
        share of employment and contracting for Alaska Natives and 
        Alaska Native Corporations from throughout the State of Alaska, 
        as determined by the level of obligation previously agreed to 
        in the Federal Agreement and Grant Right-of-Way for the Trans-
        Alaska Pipeline issued on January 23, 1974, in accordance with 
        section 28 of the Mineral Leasing Act (30 U.S.C. 185) and the 
        Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et 
        seq.).
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this Act, and in recognizing the 
proprietary interest of the Federal Government in labor stability and 
in the ability of construction labor and management to meet the 
particular needs and conditions of projects to be developed under the 
leases issued pursuant to this Act (including the special concerns of 
the parties to those leases), shall require that each lessee, and each 
agent and contractor of a lessee, under this Act negotiate to obtain a 
project labor agreement for the employment of laborers and mechanics on 
production, maintenance, and construction under the lease.

SEC. 7. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Activities on the Coastal Plain.--In accordance with section 3, the 
Secretary shall administer this Act through regulations, lease terms, 
conditions, restrictions, prohibitions, stipulations, or other 
provisions that--
            (1) ensure, to the maximum extent practicable, that oil and 
        gas exploration, development, and production activities on the 
        Coastal Plain will result in no significant adverse effect on 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum surface acreage covered in 
        connection with the leasing program by production and support 
        facilities, including airstrips and any areas covered by gravel 
        berms or piers for support of pipelines, does not exceed 2,000 
        acres on the Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
require, with respect to any proposed drilling and related activities 
on the Coastal Plain, that--
            (1) a site-specific environmental analysis be made of the 
        probable effects, if any, that the drilling or related 
        activities will have on fish and wildlife, fish and wildlife 
        habitat, subsistence resources, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the maximum extent practicable) any 
        significant adverse effect identified under paragraph (1); and
            (3) the development of the plan occur after consultation 
        with--
                    (A) each agency having jurisdiction over matters 
                mitigated by the plan;
                    (B) the State of Alaska;
                    (C) North Slope Borough, Alaska;
                    (D) the City of Kaktovik, Alaska; and
                    (E) the Arctic Slope Regional Corporation.
    (c) Regulations To Protect the Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this Act, the Secretary shall prepare 
and promulgate regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, or other measures designed to ensure, to 
the maximum extent practicable, that the activities carried out on the 
Coastal Plain under this Act are conducted in a manner consistent with 
the purposes and environmental requirements of this Act.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations for the leasing program under this Act 
shall require--
            (1) compliance with all applicable provisions of Federal 
        and State environmental law (including regulations); and
            (2) implementation of and compliance with--
                    (A) standards that are at least as effective as the 
                safety and environmental mitigation measures, as 
                described in items 1 through 29 on pages 167 through 
                169 of the Final Statement;
                    (B) reclamation and rehabilitation requirements in 
                accordance with this Act for the removal from the 
                Coastal Plain of all oil and gas development and 
                production facilities, structures, and equipment on 
                completion of oil and gas production operations, except 
                in a case in which the Secretary determines that those 
                facilities, structures, or equipment--
                            (i) would assist in the management of the 
                        Arctic National Wildlife Refuge; and
                            (ii) are donated to the United States for 
                        that purpose; and
                    (C) reasonable stipulations for protection of 
                cultural and archaeological resources.
    (e) Access to Public Land.--The Secretary shall--
            (1) manage public land in the Coastal Plain in accordance 
        with subsections (a) and (b) of section 811 of the Alaska 
        National Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public land in the Coastal Plain for traditional 
        uses.

SEC. 8. RIGHTS-OF-WAY AND EASEMENTS ACROSS THE COASTAL PLAIN.

    For purposes of section 1102(4)(A) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or 
easements across the Coastal Plain for the exploration, development, 
production, or transportation of oil and gas shall be considered to be 
established incident to the management of the Coastal Plain under this 
section.

SEC. 9. CONVEYANCE.

    (a) In General.--Notwithstanding section 1302(h)(2) of the Alaska 
National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
remove any cloud on title to land, and to clarify land ownership 
patterns, the Secretary shall--
            (1) to the extent necessary to fulfill the entitlement of 
        the Kaktovik Inupiat Corporation under sections 12 and 14 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), 
        as determined by the Secretary, convey to that Corporation the 
        surface estate of the land described in paragraph (1) of Public 
        Land Order 6959, in accordance with the terms and conditions of 
        the agreement between the Secretary, the United States Fish and 
        Wildlife Service, the Bureau of Land Management, and the 
        Kaktovik Inupiat Corporation, dated January 22, 1993; and
            (2) convey to the Arctic Slope Regional Corporation the 
        remaining subsurface estate to which that Corporation is 
        entitled under the agreement between that corporation and the 
        United States, dated August 9, 1983.
    (b) Land Adjacent to and Southwest of ANWR.--As a condition of 
receipt of the benefits under this Act, the State of Alaska shall 
convey to the United States all right, title, and interest in and to 
the approximately 598,767 acres generally depicted as ``Proposed Trade 
Land'' on the map entitled ``Proposed ANWR Exchange'', prepared by the 
State of Alaska Department of Natural Resources, and dated July 2015.

SEC. 10. CLARIFICATION OF WESTERN COASTAL BOUNDARY OF ANWR.

    (a) In General.--The western coastal boundary of the Arctic 
National Wildlife Refuge is defined--
            (1) as the boundary originally established as part of the 
        Alaska Arctic Wildlife Range under Public Land Order 2214, 
        dated December 6, 1960 (25 Fed. Reg. 12598); and
            (2) consistent with the order of the case styled United 
        States v. Alaska (521 U.S. 1 (1997)).
    (b) Revised Map.--As soon as practicable after the date of 
enactment of this Act, the Secretary shall prepare a revised map of the 
Arctic National Wildlife Refuge that reflects the western coastal 
boundary of the Arctic National Wildlife Refuge described in subsection 
(a).

SEC. 11. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Establishment of Fund.--
            (1) In general.--There is established in the Treasury a 
        fund to be known as the ``Coastal Plain Local Government Impact 
        Aid Assistance Fund'' (referred to in this section as the 
        ``Fund'').
            (2) Use.--Amounts in the Fund may be used only to provide 
        financial assistance in accordance with subsection (b).
            (3) Deposits.--Subject to paragraph (4), of amounts of 
        revenues payable to the State of Alaska under section 35 of the 
        Mineral Leasing Act (30 U.S.C. 191) that are derived from 
        rents, bonuses, and royalties from Federal leases and lease 
        sales authorized under this Act--
                    (A) $28,000,000 shall be deposited in the Fund for 
                the first fiscal year for which amounts are received by 
                the United States from Federal leases and lease sales 
                authorized under this Act; and
                    (B) $7,000,000 shall be deposited in the Fund for 
                each fiscal year thereafter.
            (4) Limitation on deposits.--The total amount in the Fund 
        may not exceed $28,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the Fund in interest-bearing securities 
        of the United States.
    (b) Financial Assistance.--
            (1) In general.--The Secretary shall use amounts available 
        from the Fund to provide timely financial assistance to North 
        Slope Borough, Alaska, the City of Kaktovik, Alaska, and any 
        other borough, municipal subdivision, village, or other 
        community in the State of Alaska that is directly impacted by 
        exploration for, or the production of, oil or gas on the 
        Coastal Plain under this Act, as determined by the Secretary.
            (2) Use of assistance.--Financial assistance provided under 
        this subsection may be used only for--
                    (A) planning for mitigation of the potential 
                effects of oil and gas exploration and development on 
                environmental, social, cultural, recreational, and 
                subsistence values;
                    (B) implementing mitigation plans and maintaining 
                mitigation projects;
                    (C) developing, carrying out, and maintaining 
                projects and programs that provide new or expanded 
                public facilities and services to address needs and 
                problems associated with the effects described in 
                subparagraph (A), including firefighting, police, 
                water, waste treatment, medivac, and medical services; 
                and
                    (D) the establishment by North Slope Borough, 
                Alaska, of a coordination office in the City of 
                Kaktovik, Alaska--
                            (i) to coordinate with and advise 
                        developers on local conditions of, impacts on, 
                        and the history of the areas utilized for 
                        development under this Act; and
                            (ii) to provide to the Committee on Natural 
                        Resources of the House of Representatives and 
                        the Committee on Energy and Natural Resources 
                        of the Senate an annual report that describes 
                        the status of coordination between developers 
                        and the communities affected by development 
                        under this Act.
    (c) Application.--
            (1) In general.--To receive assistance under subsection 
        (b), a community described in subsection (b)(1) shall submit to 
        the Secretary an application for assistance, in such form and 
        under such procedures as the Secretary may prescribe by 
        regulation.
            (2) North slope borough communities.--A community located 
        in North Slope Borough, Alaska, may apply for assistance under 
        this section either directly with the Secretary or through the 
        North Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist North Slope Borough, Alaska, and other 
        communities eligible for assistance under this section in 
        developing and submitting applications under this subsection.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary from the Fund $7,000,000 for each fiscal 
year to provide financial assistance under this section.
                                 <all>