[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4761 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 4761
To provide for exploration, development, and production activities for
mineral resources on the outer Continental Shelf, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 15, 2006
Mr. Jindal (for himself, Mr. Baker, Mr. Boustany, and Mrs. Drake)
introduced the following bill; which was referred to the Committee on
Resources
_______________________________________________________________________
A BILL
To provide for exploration, development, and production activities for
mineral resources on the outer Continental Shelf, 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.
This Act may be cited as the ``Domestic Energy Production through
Offshore Exploration and Equitable Treatment of State Holdings Act of
2006''.
SEC. 2. POLICY.
It is the policy of the United States that--
(1) adjacent States are required by the circumstances to
commit significant resources in support of exploration,
development, and production activities for mineral resources on
the outer Continental Shelf, and it is fair and proper for a
portion of the receipts from such activities to be shared with
Adjacent States and their local coastal governments;
(2) the existing laws governing the leasing and production
of the mineral resources of the outer Continental Shelf have
reduced the production of mineral resources, have preempted
Adjacent States from being sufficiently involved in the
decisions regarding the allowance of mineral resource
development, and have been harmful to the national interest;
(3) the national interest is served by granting the
Adjacent States more options related to whether or not mineral
leasing should occur in the outer Continental Shelf within
their Adjacent Zones;
(4) it is not reasonably foreseeable that exploration of a
leased tract located more than 25 miles seaward of the
coastline, development and production of a natural gas
discovery located more than 25 miles seaward of the coastline,
or development and production of an oil discovery located more
than 50 miles seaward of the coastline will adversely affect
resources near the coastline;
(5) transportation of oil from a leased tract might
reasonably be foreseen, under limited circumstances, to have
the potential to adversely affect resources near the coastline
if the oil is within 50 miles of the coastline, but such
potential to adversely affect such resources is likely no
greater, and probably less, than the potential impacts from
tanker transportation because tanker spills usually involve
large releases of oil over a brief period of time; and
(6) among other bodies of inland waters, the Great Lakes,
Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle
Sound, San Francisco Bay, and Puget Sound are not part of the
outer Continental Shelf, and are not subject to leasing by the
Federal Government for the exploration, development, and
production of any mineral resources that might lie beneath
them.
SEC. 3. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)
is amended--
(1) by amending paragraph (f) to read as follows:
``(f) The term `affected State' means the Adjacent State.'';
(2) by striking the semicolon at the end of each of
paragraphs (a) through (o) and inserting a period;
(3) by striking ``; and'' at the end of paragraph (p) and
inserting a period;
(4) by adding at the end the following:
``(r) The term `Adjacent State' means, with respect to any program,
plan, lease sale, leased tract or other activity, proposed, conducted,
or approved pursuant to the provisions of this Act, any State the laws
of which are declared, pursuant to section 4(a)(2), to be the law of
the United States for the portion of the outer Continental Shelf on
which such program, plan, lease sale, leased tract or activity
appertains or is, or is proposed to be, conducted. For purposes of this
paragraph, the term `State' includes Puerto Rico and the other
Territories of the United States.
``(s) The term `Adjacent Zone' means, with respect to any program,
plan, lease sale, leased tract, or other activity, proposed, conducted,
or approved pursuant to the provisions of this Act, the portion of the
outer Continental Shelf for which the laws of a particular Adjacent
State are declared, pursuant to section 4(a)(2), to be the law of the
United States.
``(t) The term `miles' means statute miles.
``(u) The term `coastline' has the same meaning as the term `coast
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C.
1301(c)).
``(v) The term `Neighboring State' means a coastal state having a
common boundary at the coastline with the Adjacent State.''; and
(5) in paragraph (a), by inserting after ``control'' the
following: ``or lying within the United States exclusive
economic zone adjacent to the Territories of the United
States''.
SEC. 4. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.
Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``,
and the President'' and all that follows through the end of the
sentence and inserting the following: ``The lines extending seaward and
defining each State's Adjacent Zone, and each OCS Planning Area, are as
indicated on the maps for each outer Continental Shelf region entitled
`Alaska OCS Region State Adjacent Zone and OCS Planning Areas',
`Pacific OCS Region State Adjacent Zones and OCS Planning Areas', `Gulf
of Mexico OCS Region State Adjacent Zones and OCS Planning Areas', and
`Atlantic OCS Region State Adjacent Zones and OCS Planning Areas', all
of which are dated September 2005 and on file in the Office of the
Director, Minerals Management Service.''.
SEC. 5. ADMINISTRATION OF LEASING.
Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334)
is amended by adding at the end the following:
``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a
producing lease may relinquish to the Secretary any portion of a lease
that the lessee has no interest in producing and that the Secretary
finds is geologically prospective. In return for any such
relinquishment, the Secretary shall provide to the lessee a royalty
incentive for the portion of the lease retained by the lessee, in
accordance with regulations promulgated by the Secretary to carry out
this subsection. The Secretary shall publish final regulations
implementing this subsection within 365 days after the date of the
enactment of the Domestic Energy Production through Offshore
Exploration and Equitable Treatment of State Holdings Act of 2006.
``(l) Natural Gas Lease Regulations.--Not later than July 1, 2007,
the Secretary shall publish a final regulation that shall--
``(1) establish procedures for entering into natural gas
leases;
``(2) ensure that natural gas leases are only available for
tracts on the outer Continental Shelf that are wholly within
125 miles of the coastline within an area withdrawn from
disposition by leasing on the day after the date of enactment
of the Domestic Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act of 2006;
``(3) provide that natural gas leases shall contain the
same rights and obligations established for oil and gas leases,
except as otherwise provided in the Domestic Energy Production
through Offshore Exploration and Equitable Treatment of State
Holdings Act of 2006;
``(4) provide that, in reviewing the adequacy of bids for
natural gas leases, the value of any crude oil estimated to be
contained within any tract shall be excluded;
``(5) provide that any crude oil produced from a well and
reinjected into the leased tract shall not be subject to
payment of royalty, and that the Secretary shall consider, in
setting the royalty rates for a natural gas lease, the
additional cost to the lessee of not producing any crude oil;
and
``(6) provide that any Federal law that applies to an oil
and gas lease on the outer Continental Shelf shall apply to a
natural gas lease unless otherwise clearly inapplicable.''.
SEC. 6. GRANT OF LEASES BY SECRETARY.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended--
(1) in subsection (a)(1) by inserting after the first
sentence the following: ``Further, the Secretary may grant
natural gas leases in a manner similar to the granting of oil
and gas leases and under the various bidding systems available
for oil and gas leases.'';
(2) by adding at the end of subsection (b) the following:
``The Secretary may issue more than one lease for a given tract
if each lease applies to a separate and distinct range of
vertical depths, horizontal surface area, or a combination of
the two. The Secretary may issue regulations that the Secretary
determines are necessary to manage such leases consistent with
the purposes of this Act.'';
(3) in subsection (p)(2)(B)--
(A) by striking ``27'' and inserting ``50''; and
(B) by striking ``15'' and inserting ``200'';
(4) by adding at the end the following:
``(q) Natural Gas Leases.--
``(1) Right to produce natural gas.--A lessee of a natural
gas lease shall have the right to produce the natural gas from
a natural gas leased tract if the Secretary estimates that the
discovered field has at least 40 percent of the economically
recoverable Btu content of the field contained within natural
gas and such natural gas is economical to produce.
``(2) Right to produce crude oil.--A lessee of a natural
gas lease may produce crude oil from the lease unless the
Governor and the legislature of the Adjacent State object to
such production within 180 days after receipt of written notice
from the lessee of intent to produce crude oil from the lease.
If the leased tract is located within 50 miles of the nearest
point on the coastline of a Neighboring State, the Governor and
legislature of the Neighboring State shall also receive such
notice and have the right to object to such production within
180 days after receipt of such notice.
``(3) Estimates of btu content.--The Secretary shall make
estimates of the natural gas Btu content of discovered fields
on a natural gas lease only after the completion of at least
one exploration well, the data from which has been tied to the
results of a three-dimensional seismic survey of the field. The
Secretary may not require the lessee to further delineate any
discovered field prior to making such estimates.
``(4) Transportation of crude oil.--If an Adjacent State or
any applicable Neighboring State does not object to production
of crude oil from a natural gas lease, the lessee shall be
permitted to transport the crude oil from the leased tract
through Adjacent State waters, and Neighboring State waters if
applicable, to facilities onshore in the Adjacent State, and
Neighboring State if applicable, unless the lessee agreed to
other arrangements with the Adjacent State or Neighboring
State, or both.
``(5) Repurchase of certain natural gas leases.--Upon
request of the lessee and certification by the Secretary of the
Interior that a natural gas lease contains all or part of a
commercial oil and gas discovery that is not allowed to be
produced because it does not meet the standard set in paragraph
(1), the Secretary of the Treasury shall repurchase the lease
by issuance of a check or electronic payment from OCS Receipts
to the lessee in full compensation for the repurchase. The
Secretary shall recoup from the State and local governments any
funds previously shared with them that were derived from the
repurchased lease. Such recoupment shall only be from the State
and local governments' shares of OCS receipts that are payable
after the date of repurchase.
``(6) Amount of compensation.--Repurchase compensation for
each lease repurchased under the authority of this section
shall be in the amount of the lesser of the original bonus bid
paid for the lease or, if the lessee is not the original
lessee, the compensation paid by the current lessee to obtain
its interest in the lease. In addition, the lessee shall be
compensated for any expenses directly attributable to the lease
that the lessee incurs after acquisition of its interest in the
lease to be repurchased, including rentals, seismic acquisition
costs, drilling costs, and other reasonable expenses on the
lease, including expenses incurred in the repurchase process,
to the extent that the lessee has not previously been
compensated by the United States for such expenses. The lessee
shall not be compensated for general overhead expenses or
employee salaries.
``(7) Priority right to obtain future oil and gas lease.--
The lessee, or a designee of the lessee, of a repurchased
natural gas leased tract shall have the right to repurchase
such tract as an oil and gas lease, on a noncompetitive basis,
by repaying the amount received by the lessee if the tract is
made available for lease under an oil and gas lease within 30
years after the repurchase.
``(8) Definition of natural gas.--For purposes of a natural
gas lease, natural gas means natural gas and all substances
produced in association with gas, including, but not limited
to, hydrocarbon liquids (other than crude oil) that are
obtained by the condensation of hydrocarbon vapors and separate
out in liquid form from the produced gas stream.
``(r) Removal of Restrictions on Joint Bidding in Certain Areas of
the Outer Continental Shelf.--Restrictions on joint bidders shall no
longer apply to tracts located in the Alaska OCS Region. Such
restrictions shall not apply to tracts in other OCS regions determined
to be `frontier tracts' or otherwise `high cost tracts' under final
regulations that shall be published by the Secretary by not later than
365 days after the date of the enactment of the Domestic Energy
Production through Offshore Exploration and Equitable Treatment of
State Holdings Act of 2006.'';
(5) by striking subsection (a)(3)(A) and redesignating the
subsequent subparagraphs as subparagraphs (A) and (B),
respectively;
(6) in subsection (a)(3)(A) (as so redesignated) by
striking ``In the Western'' and all that follows through ``the
Secretary'' the first place it appears and inserting ``The
Secretary''; and
(7) effective October 1, 2006, in subsection (g)--
(A) by striking all after ``(g)'', except paragraph
(3);
(B) by striking the last sentence of paragraph (3);
and
(C) by striking ``(3)''.
SEC. 7. DISPOSITION OF RECEIPTS.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended--
(1) by designating the existing text as subsection (a);
(2) in subsection (a) (as so designated) by inserting ``,
if not paid as otherwise provided in this title'' after
``receipts''; and
(3) by adding the following:
``(b) Treatment of OCS Receipts From Tracts Completely Within 100
Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2), (3), and
(4).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2005, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region completely beyond
4 marine leagues from any coastline and
completely within 100 miles of any coastline
that are available for leasing under the 2002-
2007 5-Year Oil and Gas Leasing Program in
effect prior to the date of the enactment of
the Domestic Energy Production through Offshore
Exploration and Equitable Treatment of State
Holdings Act of 2006.
``(ii) Lease tracts in production prior to
October 1, 2005, completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of any coastline located on
portions of the OCS that were not available for
leasing under the 2002-2007 5-Year OCS Oil and
Gas Leasing Program in effect prior to the date
of the enactment of the Domestic Energy
Production through Offshore Exploration and
Equitable Treatment of State Holdings Act of
2006.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2005, located in the
Alaska OCS Region completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2006, 6.0 percent.
``(ii) For fiscal year 2007, 7.0 percent.
``(iii) For fiscal year 2008, 8.0 percent.
``(iv) For fiscal year 2009, 9.0 percent.
``(v) For fiscal year 2010, 12.0 percent.
``(vi) For fiscal year 2011, 15.0 percent.
``(vii) For fiscal year 2012, 18.0 percent.
``(viii) For fiscal year 2013, 21.0
percent.
``(ix) For fiscal year 2014, 24.0 percent.
``(x) For fiscal year 2015, 27.0 percent.
``(xi) For fiscal year 2016, 30.0 percent.
``(xii) For fiscal year 2017, 33.0 percent.
``(xiii) For fiscal year 2018, 36.0
percent.
``(xiv) For fiscal year 2019, 39.0 percent.
``(xv) For fiscal year 2020, 42.0 percent.
``(xvi) For fiscal year 2021, 45.0 percent.
``(xvii) For fiscal year 2022 and each
subsequent fiscal year, 50.0 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 6(2) of the
Domestic Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act of 2006.
``(3) Immediate receipts sharing.--Beginning October 1,
2005, the Secretary shall share 50 percent of OCS Receipts
derived from all leases located completely beyond 4 marine
leagues from any coastline and completely within 100 miles of
any coastline not included within the provisions of paragraph
(2).
``(4) Receipts sharing from tracts within 4 marine leagues
of any coastline.--Beginning October 1, 2005, the Secretary
shall share 75 percent of OCS Receipts derived from all leases
located completely or partially within 4 marine leagues from
any coastline.
``(5) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2), (3), and
(4) as follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year as follows:
``(i) 87.5 percent to the Adjacent State.
``(ii) 6.25 percent into the Treasury,
which shall be allocated to the account
established by section 14 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iii) 5 percent into the account
established by section 23 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iv) 1.25 percent into the account
established by section 26 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year as follows:
``(i) 87.5 percent to the Adjacent State
and any other producing State or States with a
leased tract within its Adjacent Zone within
100 miles of its coastline that generated
royalties during the fiscal year, if the other
producing or States have a coastline point
within 300 miles of any portion of the leased
tract, in which case the amount allocated for
the leased tract shall be--
``(I) one-third to the Adjacent
State; and
``(II) two-thirds to each producing
State, including the Adjacent State,
inversely proportional to the distance
between the nearest point on the
coastline of the producing State and
the geographic center of the leased
tract.
``(ii) 6.25 percent into the Treasury,
which shall be allocated to the account
established by section 14 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iii) 5 percent into the account
established by section 23 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iv) 1.25 percent into the account
established by section 26 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(c) Treatment of OCS Receipts From Tracts Partially or Completely
Beyond 100 Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2) and (3).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2005, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region partially or
completely beyond 100 miles of any coastline
that are available for leasing under the 2002-
2007 5-Year Oil and Gas Leasing Program in
effect prior to the date of enactment of the
Domestic Energy Production through Offshore
Exploration and Equitable Treatment of State
Holdings Act of 2006.
``(ii) Lease tracts in production prior to
October 1, 2005, partially or completely beyond
100 miles of any coastline located on portions
of the OCS that were not available for leasing
under the 2002-2007 5-Year OCS Oil and Gas
Leasing Program in effect prior to the date of
enactment of the Domestic Energy Production
through Offshore Exploration and Equitable
Treatment of State Holdings Act of 2006.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2005, located in the
Alaska OCS Region partially or completely
beyond 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2006, 6.0 percent.
``(ii) For fiscal year 2007, 7.0 percent.
``(iii) For fiscal year 2008, 8.0 percent.
``(iv) For fiscal year 2009, 9.0 percent.
``(v) For fiscal year 2010, 12.0 percent.
``(vi) For fiscal year 2011, 15.0 percent.
``(vii) For fiscal year 2012, 18.0 percent.
``(viii) For fiscal year 2013, 21.0
percent.
``(ix) For fiscal year 2014, 24.0 percent.
``(x) For fiscal year 2015, 27.0 percent.
``(xi) For fiscal year 2016, 30.0 percent.
``(xii) For fiscal year 2017, 33.0 percent.
``(xiii) For fiscal year 2018, 36.0
percent.
``(xiv) For fiscal year 2019, 39.0 percent.
``(xv) For fiscal year 2020, 42.0 percent.
``(xvi) For fiscal year 2021, 45.0 percent.
``(xvii) For fiscal year 2022 and each
subsequent fiscal year, 50.0 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 6(2) of the
Domestic Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act of 2006.
``(3) Immediate receipts sharing.--Beginning October 1,
2005, the Secretary shall share 50 percent of OCS Receipts
derived on and after October 1, 2005, from all leases located
partially or completely beyond 100 miles of any coastline not
included within the provisions of paragraph (2).
``(4) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2) and (3) as
follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year as follows:
``(i) 87.5 percent to the Adjacent State.
``(ii) 6.25 percent into the Treasury,
which shall be allocated to the account
established by section 14 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iii) 5 percent into the account
established by section 23 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iv) 1.25 percent into the account
established by section 26 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year as follows:
``(i) 87.5 percent to the Adjacent State
and any other producing State or States with a
leased tract within its Adjacent Zone partially
or completely beyond 100 miles of its coastline
that generated royalties during the fiscal
year, if the other producing State or States
have a coastline point within 300 miles of any
portion of the leased tract, in which case the
amount allocated for the leased tract shall
be--
``(I) one-third to the Adjacent
State; and
``(II) two-thirds to each producing
State, including the Adjacent State,
inversely proportional to the distance
between the nearest point on the
coastline of the producing State and
the geographic center of the leased
tract.
``(ii) 6.25 percent into the account
established by section 14 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iii) 5 percent into the account
established by section 23 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(iv) 1.25 percent into the account
established by section 26 of the Domestic
Energy Production through Offshore Exploration
and Equitable Treatment of State Holdings Act
of 2006.
``(d) Transmission of Allocations.--
``(1) In general.--Not later than 90 days after the end of
each fiscal year, the Secretary shall transmit--
``(A) to each State two-thirds of such State's
allocations under subsections (b)(5)(A)(i),
(b)(5)(B)(i), (c)(4)(A)(i), and (c)(4)(B)(i) for the
immediate prior fiscal year;
``(B) to coastal county-equivalent and municipal
political subdivisions of such State a total of one-
third of such State's allocations under subsections
(b)(5)(A)(i), (b)(5)(B)(i), (c)(4)(A)(i), and
(c)(4)(B)(i), together with all accrued interest
thereon; and
``(C) the remaining allocations under subsections
(b)(5) and (c)(4), together with all accrued interest
thereon.
``(2) Allocations to coastal county-equivalent political
subdivisions.--The Secretary shall make an initial allocation
of the OCS Receipts to be shared under paragraph (1)(B) as
follows:
``(A) 25 percent shall be allocated based on the
ratio of such coastal county-equivalent political
subdivision's population to the coastal population of
all coastal county-equivalent political subdivisions in
the State.
``(B) 25 percent shall be allocated based on the
ratio of such coastal county-equivalent political
subdivision's coastline miles to the coastline miles of
all coastal county-equivalent political subdivisions in
the State as calculated by the Secretary. In such
calculations, coastal county-equivalent political
subdivisions without a coastline shall be considered to
have 50 percent of the average coastline miles of the
coastal county-equivalent political subdivisions that
do have coastlines.
``(C) 25 percent shall be allocated to all coastal
county-equivalent political subdivisions having a
coastline point within 300 miles of the leased tract
for which OCS Receipts are being shared based on a
formula that allocates the funds based on such coastal
county-equivalent political subdivision's relative
distance from the leased tract.
``(D) 25 percent shall be allocated to all coastal
county-equivalent political subdivisions having a
coastline point within 300 miles of the leased tract
for which OCS Receipts are being shared based on the
relative level of outer Continental Shelf oil and gas
activities in a coastal political subdivision compared
to the level of outer Continental Shelf activities in
all coastal political subdivisions in the State. The
Secretary shall define the term `outer Continental
Shelf oil and gas activities' for purposes of this
subparagraph to include, but not be limited to,
construction of vessels, drillships, and platforms
involved in exploration, production, and development on
the outer Continental Shelf; support and supply bases,
ports, and related activities; offices of geologists,
geophysicists, engineers, and other professionals
involved in support of exploration, production, and
development of oil and gas on the outer Continental
Shelf; pipelines and other means of transporting oil
and gas production from the outer Continental Shelf;
and processing and refining of oil and gas production
from the outer Continental Shelf. For purposes of this
subparagraph, if a coastal county-equivalent political
subdivision does not have a coastline, its coastal
point shall be the point on the coastline closest to
it.
``(3) Allocations to coastal municipal political
subdivisions.--The initial allocation to each coastal county-
equivalent political subdivision under paragraph (2) shall be
further allocated to the coastal county-equivalent political
subdivision and any coastal municipal political subdivisions
located partially or wholly within the boundaries of the
coastal county-equivalent political subdivision as follows:
``(A) One-third shall be allocated to the coastal
county-equivalent political subdivision.
``(B) Two-thirds shall be allocated on a per capita
basis to the municipal political subdivisions and the
county-equivalent political subdivision, with the
allocation to the latter based upon its population not
included within the boundaries of a municipal political
subdivision.
``(e) Investment of Deposits.--Amounts deposited under this section
shall be invested by the Secretary 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 in which they are deposited and
yielding the highest reasonably available interest rates as determined
by the Secretary of the Treasury.
``(f) Use of Funds.--A recipient of funds under this section may
use the funds for one or more of the following:
``(1) To reduce in-State college tuition at public
institutions of higher learning and otherwise support public
education, including career technical education.
``(2) To make transportation infrastructure improvements.
``(3) To reduce taxes.
``(4) To promote and provide for--
``(A) coastal or environmental restoration;
``(B) fish, wildlife, and marine life habitat
enhancement;
``(C) waterways maintenance;
``(D) shore protection; and
``(E) marine and oceanographic education and
research.
``(5) To improve infrastructure associated with energy
production activities conducted on the outer Continental Shelf.
``(6) To fund energy demonstration projects and supporting
infrastructure for energy projects.
``(7) For any other purpose as determined by State law.
``(g) No Accounting Required.--No recipient of funds under this
section shall be required to account to the Federal Government for the
expenditure of such funds, except as otherwise may be required by law.
However, States may enact legislation providing for accounting for and
auditing of such expenditures. Further, funds allocated under this
section to States and political subdivisions may be used as matching
funds for other Federal programs.
``(h) Effect of Future Laws.--Enactment of any future Federal
statute that has the effect, as determined by the Secretary, of
restricting any Federal agency from spending appropriated funds, or
otherwise preventing it from fulfilling its pre-existing
responsibilities as of the date of enactment of the statute, unless
such responsibilities have been reassigned to another Federal agency by
the statute with no prevention of performance, to issue any permit or
other approval impacting on the OCS oil and gas leasing program, or any
lease issued thereunder, or to implement any provision of this Act
shall automatically prohibit any sharing of OCS Receipts under this
section directly with the States, and their coastal political
subdivisions, for the duration of the restriction. The Secretary shall
make the determination of the existence of such restricting effects
within 30 days of a petition by any outer Continental Shelf lessee or
producing State.
``(i) Definitions.--In this section:
``(1) Coastal county-equivalent political subdivision.--The
term `coastal county-equivalent political subdivision' means a
political jurisdiction immediately below the level of State
government, including a county, parish, borough in Alaska,
independent municipality not part of a county, parish, or
borough in Alaska, or other equivalent subdivision of a coastal
State, that lies within the coastal zone.
``(2) Coastal municipal political subdivision.--The term
`coastal municipal political subdivision' means a municipality
located within and part of a county, parish, borough in Alaska,
or other equivalent subdivision of a State, all or part of
which coastal municipal political subdivision lies within the
coastal zone.
``(3) Coastal population.--The term `coastal population'
means the population of all coastal county-equivalent political
subdivisions, as determined by the most recent official data of
the Census Bureau.
``(4) Coastal zone.--The term `coastal zone' means that
portion of a coastal State, including the entire territory of
any coastal county-equivalent political subdivision at least a
part of which lies, within 75 miles landward from the
coastline, or a greater distance as determined by State law
enacted to implement this section.
``(5) Bonus bids.--The term `bonus bids' means all funds
received by the Secretary to issue an outer Continental Shelf
minerals lease.
``(6) Royalties.--The term `royalties' means all funds
received by the Secretary from production of oil or natural
gas, or the sale of production taken in-kind, from an outer
Continental Shelf minerals lease.
``(7) Producing state.--The term `producing State' means an
Adjacent State having an Adjacent Zone containing leased tracts
from which OCS Receipts were derived.
``(8) OCS receipts.--The term `OCS Receipts' means bonus
bids and royalties.''.
SEC. 8. REVIEW OF OUTER CONTINENTAL SHELF EXPLORATION PLANS.
Subsections (c) and (d) of section 11 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1340) are amended to read as follows:
``(c) Plan Review; Plan Provisions.--
``(1) Except as otherwise provided in this Act, prior to
commencing exploration pursuant to any oil and gas lease issued
or maintained under this Act, the holder thereof shall submit
an exploration plan (hereinafter in this section referred to as
a `plan') to the Secretary for review which shall include all
information and documentation required under paragraphs (2) and
(3). The Secretary shall review the plan for completeness
within 10 days of submission. If the Secretary finds that the
plan is not complete, the Secretary shall notify the lessee
with a detailed explanation and require such modifications of
such plan as are necessary to achieve completeness. The
Secretary shall have 10 days to review a modified plan for
completeness. Such plan may apply to more than one lease held
by a lessee in any one region of the outer Continental Shelf,
or by a group of lessees acting under a unitization, pooling,
or drilling agreement, and the lessee shall certify that such
plan is consistent with the terms of the lease and is
consistent with all statutory and regulatory requirements in
effect on the date of issuance of the lease. The Secretary
shall have 30 days from the date the plan is deemed complete to
conduct a review of the plan. If the Secretary finds the plan
is not consistent with the lease and all such statutory and
regulatory requirements, the Secretary shall notify the lessee
with a detailed explanation of such modifications of such plan
as are necessary to achieve compliance. The Secretary shall
have 30 days to review any modified plan submitted by the
lessee. The lessee shall not take any action under the
exploration plan within the 30-day review period, or thereafter
until the plan has been modified to achieve compliance as so
notified.
``(2) An exploration plan submitted under this subsection
shall include, in the degree of detail which the Secretary may
by regulation require--
``(A) a schedule of anticipated exploration
activities to be undertaken;
``(B) a description of equipment to be used for
such activities;
``(C) the general location of each well to be
drilled; and
``(D) such other information deemed pertinent by
the Secretary.
``(3) The Secretary may, by regulation, require that such
plan be accompanied by a general statement of development and
production intentions which shall be for planning purposes only
and which shall not be binding on any party.
``(d) Plan Revisions; Conduct of Exploration Activities.--
``(1) If a significant revision of an exploration plan
under this subsection is submitted to the Secretary, the
process to be used for the review of such revision shall be the
same as set forth in subsection (c) of this section.
``(2) All exploration activities pursuant to any lease
shall be conducted in accordance with an exploration plan or a
revised plan which has been submitted to and reviewed by the
Secretary.''.
SEC. 9. RESERVATION OF LANDS AND RIGHTS.
Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C.
1341) is amended--
(1) in subsection (a) by adding at the end the following:
``The President may partially or completely revise or revoke
any prior withdrawal made by the President under the authority
of this section. The President may not revise or revoke a
withdrawal that was initiated by a petition from a State and
approved by the Secretary of the Interior under subsection (h).
A withdrawal by the President may be for a term not to exceed
10 years. In considering a potential withdrawal under this
subsection, to the maximum extent practicable the President
shall accommodate competing interests and potential uses of the
outer Continental Shelf.'';
(2) by adding at the end the following:
``(g) Option to Petition for Leasing Within Certain Areas of the
Outer Continental Shelf.--
``(1) Prohibition against leasing.--Except as otherwise
provided in this subsection, prior to June 30, 2012, the
Secretary shall not offer for leasing for oil and gas, or for
natural gas, any area withdrawn from disposition by leasing in
the Atlantic OCS Region or the Pacific OCS Region, or the Gulf
of Mexico OCS Region Eastern Planning Area, as depicted on the
map referred to within this paragraph, under the `Memorandum on
Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition', 34 Weekly Comp.
Pres. Doc. 1111, dated June 12, 1998, or any area not withdrawn
under that Memorandum that is included within the Gulf of
Mexico OCS Region Eastern Planning Area as indicated on the map
entitled `Gulf of Mexico OCS Region State Adjacent Zones and
OCS Planning Areas' or within the Florida Straits Planning Area
as indicated on the map entitled `Atlantic OCS Region State
Adjacent Zones and OCS Planning Areas', both of which are dated
September 2005 and on file in the Office of the Director,
Minerals Management Service.
``(2) Revocation of withdrawal.--The provisions of the
`Memorandum on Withdrawal of Certain Areas of the United States
Outer Continental Shelf from Leasing Disposition', 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked
and are no longer in effect regarding any areas included within
the Gulf of Mexico OCS Region Central Planning Area as
indicated on the map entitled `Gulf of Mexico OCS Region State
Adjacent Zones and OCS Planning Areas' dated September 2005 and
on file in the Office of the Director, Minerals Management
Service. The 2002-2007 5-Year Outer Continental Shelf Oil and
Gas Leasing Program is hereby amended to include the areas
added to the Gulf of Mexico OCS Region Central Planning Area by
this Act to the extent that such areas were included within the
original boundaries of proposed Lease Sale 181. The amendment
to such leasing program includes two sales in such additional
areas, one of which shall be held in January 2007 and one of
which shall be held in June 2007. The Final Environmental
Impact Statement prepared for this area for Lease Sale 181
shall be deemed sufficient for all purposes for each lease sale
in which such area is offered for lease during the 2002-2007 5-
Year Outer Continental Shelf Oil and Gas Leasing Program
without need for supplementation. Any tract only partially
added to the Gulf of Mexico OCS Region Central Planning Area by
this Act shall be eligible for leasing of the part of such
tract that is included within the Gulf of Mexico OCS Region
Central Planning Area, and the remainder of such tract that
lies outside of the Gulf of Mexico OCS Region Central Planning
Area may be developed and produced by the lessee of such
partial tract using extended reach or similar drilling from a
location on a leased area.
``(3) Petition for leasing.--
``(A) In general.--The Governor of the State, upon
concurrence of its legislature, may submit to the
Secretary a petition requesting that the Secretary make
available any area that is within the State's Adjacent
Zone, included within the provisions of paragraph (1),
and that (i) is greater than 25 miles from any point on
the coastline of a Neighboring State for the conduct of
offshore leasing, pre-leasing, and related activities
with respect to natural gas leasing; or (ii) is greater
than 50 miles from any point on the coastline of a
Neighboring State for the conduct of offshore leasing,
pre-leasing, and related activities with respect to oil
and gas leasing. The Adjacent State may also petition
for leasing any other area within its Adjacent Zone if
leasing is allowed in the similar area of the Adjacent
Zone of the applicable Neighboring State, or if not
allowed, if the Neighboring State, acting through its
Governor, expresses its concurrence with the petition.
The Secretary shall only consider such a petition upon
making a finding that leasing is allowed in the similar
area of the Adjacent Zone of the applicable Neighboring
State or upon receipt of the concurrence of the
Neighboring State. The date of receipt by the Secretary
of such concurrence by the Neighboring State shall
constitute the date of receipt of the petition for that
area for which the concurrence applies. A petition for
leasing any part of the Alabama Adjacent Zone that is a
part of the Gulf of Mexico Eastern Planning Area, as
indicated on the map entitled `Gulf of Mexico OCS
Region State Adjacent Zones and OCS Planning Areas'
which is dated September 2005 and on file in the Office
of the Director, Minerals Management Service, shall
require the concurrence of both Alabama and Florida.
``(B) Limitations on leasing.--In its petition, a
State with an Adjacent Zone that contains leased tracts
may condition oil and gas, or natural gas, new leasing
for tracts within 25 miles of the coastline by--
``(i) requiring a net reduction in the
number of production platforms;
``(ii) requiring a net increase in the
average distance of production platforms from
the coastline;
``(iii) limiting permanent surface
occupancy on new leases to areas that are more
than 10 miles from the coastline;
``(iv) limiting some tracts to being
produced from shore or from platforms located
on other tracts; or
``(v) other conditions that the Adjacent
State may deem appropriate as long as the
Secretary does not determine that production is
made economically or technically impracticable
or otherwise impossible.
``(C) Action by secretary.--Not later than 90 days
after receipt of a petition under subparagraph (A), the
Secretary shall approve the petition, unless the
Secretary determines that leasing the area would
probably cause serious harm or damage to the marine
resources of the State's Adjacent Zone. Prior to
approving the petition, the Secretary shall complete an
environmental assessment that documents the anticipated
environmental effects of leasing in the area included
within the scope of the petition.
``(D) Failure to act.--If the Secretary fails to
approve or deny a petition in accordance with
subparagraph (C) the petition shall be considered to be
approved 90 days after receipt of the petition.
``(E) Amendment of the 5-year leasing program.--
Notwithstanding section 18, within 180 days of the
approval of a petition under subparagraph (C) or (D),
the Secretary shall amend the current 5-Year Outer
Continental Shelf Oil and Gas Leasing Program to
include a lease sale or sales for the entire area
covered by the approved petition, unless there are,
from the date of approval, fewer than 12 months
remaining in the current 5-Year Leasing Program in
which case the Secretary shall include the areas
covered by the approved petition within lease sales
under the next 5-Year Leasing Program. For purposes of
amending the 5-Year Program in accordance with this
section, further consultations with States shall not be
required. The environmental assessment performed under
the provisions of the National Environmental Policy Act
of 1969 to assess the effects of approving the petition
shall be sufficient to amend the 5-Year Leasing
Program.
``(h) Option to Petition for Extension of Withdrawal From Leasing
Within Certain Areas of the Outer Continental Shelf.--
``(1) In general.--The Governor of the State, upon the
concurrence of its legislature, may submit to the Secretary
petitions requesting that the Secretary extend for a period of
time of up to 5 years for each petition the withdrawal from
leasing for all or part of any area within the State's Adjacent
Zone within 125 miles of the coastline that is subject to
subsection (g)(1). A State may petition multiple times for any
particular area but not more than once per calendar year for
any particular area. A State must submit separate petitions,
with separate votes by its legislature, for areas within 50
miles of the coastline, areas more than 50 miles but not
exceeding 100 miles from the coastline, and areas exceeding 100
miles but not exceeding 125 miles from the coastline. A
petition of a State may apply to either oil and gas leasing or
natural gas leasing, or both, and may request some areas to be
withdrawn from all leasing and some areas to be withdrawn only
from one type of leasing. A petition for extending the
withdrawal from leasing of any part of the Alabama Adjacent
Zone that is a part of the Gulf of Mexico OCS Region Eastern
Planning Area, as indicated on the map entitled `Gulf of Mexico
OCS Region State Adjacent Zones and OCS Planning Areas' which
is dated September 2005 and on file in the Office of the
Director, Minerals Management Service, may be made by either
Alabama or Florida.
``(2) Action by secretary.--The Secretary shall perform an
environmental assessment under the National Environmental
Policy Act of 1969 to assess the effects of approving the
petition under paragraph (1). Not later than 90 days after
receipt of the petition, the Secretary shall approve the
petition, unless the Secretary determines that extending the
withdrawal from leasing would probably cause serious harm or
damage to the marine resources of the State's Adjacent Zone.
The Secretary shall not approve a petition from a State that
extends the remaining period of a withdrawal of an area from
leasing for a total of more than 10 years. However, the
Secretary may approve petitions to extend the withdrawal from
leasing of any area ad infinitum, subject only to the
limitations contained in this subsection.
``(3) Failure to act.--If the Secretary fails to approve or
deny a petition in accordance with paragraph (2) the petition
shall be considered to be approved 90 days after receipt of the
petition.
``(i) Effect of Other Laws.--Adoption by any Adjacent State of any
constitutional provision, or enactment of any State statute, that has
the effect, as determined by the Secretary, of restricting either the
Governor or the Legislature, or both, from exercising full discretion
related to subsection (g) or (h), or both, shall automatically (1)
prohibit any sharing of OCS Receipts under this Act with the Adjacent
State, and its coastal political subdivisions, and (2) prohibit the
Adjacent State from exercising any authority under subsection (h), for
the duration of the restriction. The Secretary shall make the
determination of the existence of such restricting constitutional
provision or State statute within 30 days of a petition by any outer
Continental Shelf lessee or coastal State.''.
SEC. 10. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) is amended--
(1) in subsection (a), by adding at the end of paragraph
(3) the following: ``The Secretary shall, in each 5-year
program, include lease sales that when viewed as a whole
propose to offer for oil and gas or natural gas leasing at
least 75 percent of the available unleased acreage within each
OCS Planning Area. Available unleased acreage is that portion
of the outer Continental Shelf that is not under lease at the
time of the proposed lease sale, and has not otherwise been
made unavailable for leasing by law.'';
(2) in subsection (c), by striking so much as precedes
paragraph (3) and inserting the following:
``(c)(1) During the preparation of any proposed leasing program
under this section, the Secretary shall consider and analyze leasing
throughout the entire Outer Continental Shelf without regard to any
other law affecting such leasing. During this preparation the Secretary
shall invite and consider suggestions from any interested Federal
agency, including the Attorney General, in consultation with the
Federal Trade Commission, and from the Governor of any coastal State.
The Secretary may also invite or consider any suggestions from the
executive of any local government in a coastal State that have been
previously submitted to the Governor of such State, and from any other
person. Further, the Secretary shall consult with the Secretary of
Defense regarding military operational needs in the outer Continental
Shelf. The Secretary shall work with the Secretary of Defense to
resolve any conflicts that might arise regarding offering any area of
the outer Continental Shelf for oil and gas or natural gas leasing. If
the Secretaries are not able to resolve all such conflicts, any
unresolved issues shall be elevated to the President for resolution.
``(2) After the consideration and analysis required by paragraph
(1), including the consideration of the suggestions received from any
interested Federal agency, the Federal Trade Commission, the Governor
of any coastal State, any local government of a coastal State, and any
other person, the Secretary shall publish in the Federal Register a
proposed leasing program accompanied by a draft environmental impact
statement prepared pursuant to the National Environmental Policy Act of
1969. After the publishing of the proposed leasing program and during
the comment period provided for on the draft environmental impact
statement, the Secretary shall submit a copy of the proposed program to
the Governor of each affected State for review and comment. The
Governor may solicit comments from those executives of local
governments in the Governor's State that the Governor, in the
discretion of the Governor, determines will be affected by the proposed
program. If any comment by such Governor is received by the Secretary
at least 15 days prior to submission to the Congress pursuant to
paragraph (3) and includes a request for any modification of such
proposed program, the Secretary shall reply in writing, granting or
denying such request in whole or in part, or granting such request in
such modified form as the Secretary considers appropriate, and stating
the Secretary's reasons therefor. All such correspondence between the
Secretary and the Governor of any affected State, together with any
additional information and data relating thereto, shall accompany such
proposed program when it is submitted to the Congress.''; and
(3) by adding at the end the following:
``(i) Projection of State Adjacent Zone Resources and State and
Local Government Shares of OCS Receipts.--Concurrent with the
publication of the scoping notice at the beginning of the development
of each 5-year outer Continental Shelf oil and gas leasing program, or
as soon thereafter as possible, the secretary shall--
``(1) provide to each Adjacent State a current
estimate of proven and potential oil and gas resources
located within the State's Adjacent Zone; and
``(2) provide to each Adjacent State, and coastal
political subdivisions thereof, a best-efforts
projection of the OCS Receipts that the Secretary
expects will be shared with each Adjacent State, and
its coastal political subdivisions, using the
assumption that the unleased tracts within the State's
Adjacent Zone are fully made available for leasing,
including long-term projected OCS Receipts. In
addition, the Secretary shall include a macroeconomic
estimate of the impact of such leasing on the national
economy and each State's economy, including investment,
jobs, revenues, personal income, and other
categories.''.
SEC. 11. COORDINATION WITH ADJACENT STATES.
Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C.
1345) is amended--
(1) in subsection (a) in the first sentence by inserting
``, for any tract located within the Adjacent State's Adjacent
Zone,'' after ``government''; and
(2) by adding the following:
``(f)(1) No Federal agency may permit or otherwise approve, without
the concurrence of the Adjacent State, the construction of a crude oil
or petroleum products (or both) pipeline within the part of the
Adjacent State's Adjacent Zone that is not available by law for oil and
gas or natural gas leasing, except that such a pipeline may be approved
to pass through such Adjacent Zone if at least 50 percent of the
production projected to be carried by the pipeline within its first 10
years of operation is from areas of the Adjacent State's Adjacent Zone.
``(2) No State may prohibit the construction within its
Adjacent Zone or its State waters of a natural gas pipeline
that will transport natural gas produced from the outer
Continental Shelf. However, an Adjacent State may prevent a
proposed natural gas pipeline landing location if it proposes
two alternate landing locations in the Adjacent State,
acceptable to the Adjacent State, located within 50 miles on
either side of the proposed landing location.''.
SEC. 12. ENVIRONMENTAL STUDIES.
Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C.
1346) is amended--
(1) by inserting ``(1)'' after ``(d)''; and
(2) by adding at the end the following:
``(2) For all programs, lease sales, leases, and actions
under this Act, the following shall apply regarding the
application of the National Environmental Policy Act of 1969:
``(A) Granting or directing lease suspensions and
the conduct of all preliminary activities on outer
Continental Shelf tracts, including seismic activities,
are categorically excluded from the need to prepare
either an environmental assessment or an environmental
impact statement, and the Secretary shall not be
required to analyze whether any exceptions to a
categorical exclusion apply for activities conducted
under the authority of this Act.
``(B) The environmental impact statement developed
in support of each 5-year oil and gas leasing program
provides the environmental analysis for all lease sales
to be conducted under the program and such sales shall
not be subject to further environmental analysis.
``(C) Exploration plans shall not be subject to any
requirement to prepare an environmental impact
statement, and the Secretary may find that exploration
plans are eligible for categorical exclusion due to the
impacts already being considered within an
environmental impact statement or due to mitigation
measures included within the plan.
``(D) Within each OCS Planning Area, after the
preparation of the first development and production
plan environmental impact statement for a leased tract
within the Area, future development and production
plans for leased tracts within the Area shall only
require the preparation of an environmental assessment
unless the most recent development and production plan
environmental impact statement within the Area was
finalized more than 10 years prior to the date of the
approval of the plan, in which case an environmental
impact statement shall be required.''.
SEC. 13. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION
PLANS.
Section 25 of the Outer Continental Shelf Lands Act (43 U.S.C.
1351(a)) is amended to read as follows:
``SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION
PLANS.
``(a) Development and Production Plans; Submission to Secretary;
Statement of Facilities and Operation; Submission to Governors of
Affected States and Local Governments.--
``(1) Prior to development and production pursuant to an
oil and gas lease issued on or after September 18, 1978, for
any area of the outer Continental Shelf, or issued or
maintained prior to September 18, 1978, for any area of the
outer Continental Shelf, with respect to which no oil or gas
has been discovered in paying quantities prior to September 18,
1978, the lessee shall submit a development and production plan
(hereinafter in this section referred to as a `plan') to the
Secretary for review.
``(2) A plan shall be accompanied by a statement describing
all facilities and operations, other than those on the outer
Continental Shelf, proposed by the lessee and known by the
lessee (whether or not owned or operated by such lessee) that
will be constructed or utilized in the development and
production of oil or gas from the lease area, including the
location and site of such facilities and operations, the land,
labor, material, and energy requirements associated with such
facilities and operations, and all environmental and safety
safeguards to be implemented.
``(3) Except for any privileged or proprietary information
(as such term is defined in regulations issued by the
Secretary), the Secretary, within 30 days after receipt of a
plan and statement, shall--
``(A) submit such plan and statement to the
Governor of any affected State, and upon request to the
executive of any affected local government; and
``(B) make such plan and statement available to any
appropriate interstate regional entity and the public.
``(b) Development and Production Activities in Accordance With Plan
as Lease Requirement.--After enactment of the Domestic Energy
Production through Offshore Exploration and Equitable Treatment of
State Holdings Act of 2006, no oil and gas lease may be issued pursuant
to this Act in any region of the outer Continental Shelf, unless such
lease requires that development and production activities be carried
out in accordance with a plan that complies with the requirements of
this section. This section shall also apply to leases that do not have
an approved development and production plan as of the date of enactment
of the Domestic Energy Production through Offshore Exploration and
Equitable Treatment of State Holdings Act of 2006.
``(c) Scope and Contents of Plan.--A plan may apply to more than
one oil and gas lease, and shall set forth, in the degree of detail
established by regulations issued by the Secretary--
``(1) the general work to be performed;
``(2) a description of all facilities and operations
located on the outer Continental Shelf that are proposed by the
lessee or known by the lessee (whether or not owned or operated
by such lessee) to be directly related to the proposed
development, including the location and size of such facilities
and operations, and the land, labor, material, and energy
requirements associated with such facilities and operations;
``(3) the environmental safeguards to be implemented on the
outer Continental Shelf and how such safeguards are to be
implemented;
``(4) all safety standards to be met and how such standards
are to be met;
``(5) an expected rate of development and production and a
time schedule for performance; and
``(6) such other relevant information as the Secretary may
by regulation require.
``(d) Completeness Review of the Plan.--
``(1) Prior to commencing any activity under a development
and production plan pursuant to any oil and gas lease issued or
maintained under this Act, the lessee shall certify that the
plan is consistent with the terms of the lease and that it is
consistent with all statutory and regulatory requirements in
effect on the date of issuance of the lease. The plan shall
include all required information and documentation required
under subsection (c).
``(2) The Secretary shall review the plan for completeness
within 30 days of submission. If the Secretary finds that the
plan is not complete, the Secretary shall notify the lessee
with a detailed explanation of such modifications of such plan
as are necessary to achieve completeness. The Secretary shall
have 30 days to review a modified plan for completeness.
``(e) Review for Consistency of the Plan.--
``(1) After a determination that a plan is complete, the
Secretary shall have 120 days to conduct a review of the plan,
to ensure that it is consistent with the terms of the lease,
and that it is consistent with all such statutory and
regulatory requirements applicable to the lease. The review
shall ensure that the plan is consistent with lease terms, and
statutory and regulatory requirements applicable to the lease,
related to national security or national defense, including any
military operating stipulations or other restrictions. The
Secretary shall seek the assistance of the Department of
Defense in the conduct of the review of any plan prepared under
this section for a lease containing military operating
stipulations or other restrictions and shall accept the
assistance of the Department of Defense in the conduct of the
review of any plan prepared under this section for any other
lease when the Secretary of Defense requests an opportunity to
participate in the review. If the Secretary finds that the plan
is not consistent, the Secretary shall notify the lessee with a
detailed explanation of such modifications of such plan as are
necessary to achieve consistency.
``(2) The Secretary shall have 120 days to review a
modified plan.
``(3) The lessee shall not conduct any activities under the
plan during any 120-day review period, or thereafter until the
plan has been modified to achieve compliance as so notified.
``(4) After review by the Secretary provided for by this
section, a lessee may operate pursuant to the plan without
further review or approval by the Secretary.
``(f) Review of Revision of the Approved Plan.--The lessee may
submit to the Secretary any revision of a plan if the lessee determines
that such revision will lead to greater recovery of oil and natural
gas, improve the efficiency, safety, and environmental protection of
the recovery operation, is the only means available to avoid
substantial economic hardship to the lessee, or is otherwise not
inconsistent with the provisions of this Act, to the extent such
revision is consistent with protection of the human, marine, and
coastal environments. The process to be used for the review of any such
revision shall be the same as that set forth in subsections (d) and
(e).
``(g) Cancellation of Lease on Failure to Submit Plan or Comply
With a Plan.--Whenever the owner of any lease fails to submit a plan in
accordance with regulations issued under this section, or fails to
comply with a plan, the lease may be canceled in accordance with
section 5(c) and (d). Termination of a lease because of failure to
comply with a plan, including required modifications or revisions,
shall not entitle a lessee to any compensation.
``(h) Production and Transportation of Natural Gas; Submission of
Plan to Federal Energy Regulatory Commission; Impact Statement.--If any
development and production plan submitted to the Secretary pursuant to
this section provides for the production and transportation of natural
gas, the lessee shall contemporaneously submit to the Federal Energy
Regulatory Commission that portion of such plan that relates to the
facilities for transportation of natural gas. The Secretary and the
Federal Energy Regulatory Commission shall agree as to which of them
shall prepare an environmental impact statement pursuant to the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
applicable to such portion of such plan, or conduct studies as to the
effect on the environment of implementing it. Thereafter, the findings
and recommendations by the agency preparing such environmental impact
statement or conducting such studies pursuant to such agreement shall
be adopted by the other agency, and such other agency shall not
independently prepare another environmental impact statement or
duplicate such studies with respect to such portion of such plan, but
the Federal Energy Regulatory Commission, in connection with its review
of an application for a certificate of public convenience and necessity
applicable to such transportation facilities pursuant to section 7 of
the Natural Gas Act (15 U.S.C. 717f), may prepare such environmental
studies or statement relevant to certification of such transportation
facilities as have not been covered by an environmental impact
statement or studies prepared by the Secretary. The Secretary, in
consultation with the Federal Energy Regulatory Commission, shall
promulgate rules to implement this subsection, but the Federal Energy
Regulatory Commission shall retain sole authority with respect to rules
and procedures applicable to the filing of any application with the
Commission and to all aspects of the Commission's review of, and action
on, any such application.''.
SEC. 14. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT FUND ACT OF 2006.
(a) Findings.--The Congress finds the following:
(1) Energy and minerals exploration, development, and
production on Federal onshore and offshore lands, including
bio-based fuel, natural gas, minerals, oil, geothermal, and
power from wind, waves, currents, and thermal energy, involves
significant outlays of funds by Federal and State wildlife,
fish, and natural resource management agencies for
environmental studies, planning, development, monitoring, and
management of wildlife, fish, air, water, and other natural
resources.
(2) State wildlife, fish, and natural resource management
agencies are funded primarily through permit and license fees
paid to the States by the general public to hunt and fish, and
through Federal excise taxes on equipment used for these
activities.
(3) Funds generated from consumptive and recreational uses
of wildlife, fish, and other natural resources currently are
inadequate to address the natural resources related to energy
and minerals development on Federal onshore and offshore lands.
(4) Funds available to Federal agencies responsible for
managing Federal onshore and offshore lands and Federal-trust
wildlife and fish species and their habitats are inadequate to
address the natural resources related to energy and minerals
development on Federal onshore and offshore lands.
(5) Receipts derived from sales, bonus bids, and royalties
under the mineral leasing laws of the United States are paid to
the Treasury through the Minerals Management Service of the
Department of the Interior.
(6) None of the receipts derived from sales, bonus bids,
and royalties under the minerals leasing laws of the United
States are paid to the Federal or State agencies to examine,
monitor, and manage wildlife, fish, air, water, and other
natural resources related to natural gas, oil, and mineral
exploration and development.
(b) Purposes.--It is the purpose of this section to--
(1) establish a fund for the monitoring and management of
wildlife and fish, and their habitats, and air, water, and
other natural resources related to energy and minerals
development on Federal onshore and offshore lands;
(2) make available receipts derived from sales, bonus bids,
and royalties from onshore and offshore gas, mineral, oil, and
any additional form of energy exploration and development under
the laws of the United States for the purposes of such fund;
(3) distribute funds from such fund each fiscal year to the
Secretary of the Interior and the States; and
(4) use the distributed funds to secure the necessary
trained workforce or contractual services to conduct
environmental studies, planning, development, monitoring, and
post-development management of wildlife and fish and their
habitats and air, water, and other natural resources that may
be related to bio-based fuel, gas, mineral, oil, wind, or other
energy exploration, development, transportation, transmission,
and associated activities on Federal onshore and offshore
lands, including, but not limited to--
(A) pertinent research, surveys, and environmental
analyses conducted to identify any impacts on wildlife,
fish, air, water, and other natural resources from
energy and mineral exploration, development,
production, and transportation or transmission;
(B) projects to maintain, improve, or enhance
wildlife and fish populations and their habitats or
air, water, or other natural resources, including
activities under the Endangered Species Act of 1973;
(C) research, surveys, environmental analyses, and
projects that assist in managing, including mitigating
either onsite or offsite, or both, the impacts of
energy and mineral activities on wildlife, fish, air,
water, and other natural resources; and
(D) projects to teach young people to live off the
land.
(c) Definitions.--In this section:
(1) Enhancement fund.--The term ``Enhancement Fund'' means
the Federal Energy Natural Resources Enhancement Fund
established by subsection (d).
(2) State.--The term ``State'' means the State government
agency primarily responsible for fish and wildlife trust
resources within a State.
(d) Establishment and Use of Federal Energy Natural Resources
Enhancement Fund.--
(1) Enhancement fund.--There is established in the Treasury
a separate account to be known as the ``Federal Energy Natural
Resources Enhancement Fund''.
(2) Funding.--The Secretary of the Treasury shall deposit
in the Enhancement Fund--
(A) such sums as are provided by sections
9(b)(5)(A)(ii), 9(b)(5)(B)(ii), 9(c)(4)(A)(ii), and
9(c)(4)(B)(ii) of the Outer Continental Shelf Lands
Act, as amended by this Act;
(B)(i) during the period of October 1, 2006,
through September 30, 2015, 0.5 percent of all sums
paid into the Treasury under section 35 of the Mineral
Leasing Act (30 U.S.C. 191), and
(ii) beginning October 1, 2015, and thereafter, 2.5
percent of all sums paid into the Treasury under
section 35 of the Mineral Leasing Act (30 U.S.C. 191);
and
(C)(i) during the period of October 1, 2006,
through September 30, 2015, 0.5 percent of all sums
paid into the Treasury from receipts derived from bonus
bids and royalties from other mineral leasing on public
lands, and
(ii) beginning October 1, 2015, and thereafter, 2.5
percent of all sums paid into the Treasury from
receipts derived from bonus bids and royalties from
other mineral leasing on public lands.
(3) Investments.--The Secretary of the Treasury shall
invest the amounts deposited under paragraph (2) and all
accrued interest on the amounts deposited under paragraph (2)
only in interest bearing obligations of the United States or in
obligations guaranteed as to both principal and interest by the
United States.
(4) Payment to secretary of the interior.--
(A) In general.--Beginning with fiscal year 2007,
and in each fiscal year thereafter, one-third of
amounts deposited into the Enhancement Fund, together
with the interest thereon, shall be available, without
fiscal year limitations, to the Secretary of the
Interior for use for the purposes described in (b)(4).
(B) Withdrawals and transfer of funds.--The
Secretary of the Treasury shall withdraw such amounts
from the Enhancement Fund as the Secretary of the
Interior may request, subject to the limitation in (A),
and transfer such amounts to the Secretary of the
Interior to be used, at the discretion of the Secretary
of the Interior, by the Minerals Management Service,
the Bureau of Land Management, and the United States
Fish and Wildlife Service for use for the purposes
described in subsection (b)(4).
(5) Payment to states.--
(A) In general.--Beginning with fiscal year 2007,
and in each fiscal year thereafter, two-thirds of
amounts deposited into the Enhancement Fund, together
with the interest thereon, shall be available, without
fiscal year limitations, to the States for use for the
purposes described in (b)(4).
(B) Withdrawals and transfer of funds.--Within the
first 90 days of each fiscal year, the Secretary of the
Treasury shall withdraw amounts from the Enhancement
Fund and transfer such amounts to the States based on
the proportion of all receipts that were collected the
previous fiscal year from Federal leases within the
boundaries of each State and each State's outer
Continental Shelf Adjacent Zone as determined in
accordance with section 4(a) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1333(a)), as amended by this
Act.
(C) Use of payments by state.--Each State shall use
the payments made under subparagraph (B) only for
carrying out projects and programs for the purposes
described in (b)(4).
(D) Encourage use of private funds by state.--Each
State shall use the payments made under subparagraph
(B) to leverage private funds for carrying out projects
for the purposes described in (b)(4).
(e) Limitation on Use.--Amounts available under this section may
not be used for the purchase of any interest in land.
(f) Reports to Congress.--
(1) In general.--Beginning in fiscal year 2008 and
continuing for each fiscal year thereafter, the Secretary of
the Interior and each State receiving funds from the
Enhancement Fund shall submit a report to the Committee on
Energy and Natural Resources of the Senate and the Committee on
Resources of the House of Representatives.
(2) Required information.--Reports submitted to the
Congress by the Secretary of the Interior and States under this
subsection shall include the following information regarding
expenditures during the previous fiscal year:
(A) A summary of pertinent scientific research and
surveys conducted to identify impacts on wildlife,
fish, and other natural resources from energy and
mineral developments.
(B) A summary of projects planned and completed to
maintain, improve or enhance wildlife and fish
populations and their habitats or other natural
resources.
(C) A list of additional actions that assist, or
would assist, in managing, including mitigating either
onsite or offsite, or both, the impacts of energy and
mineral development on wildlife, fish, and other
natural resources.
(D) A summary of private (non-Federal) funds used
to plan, conduct, and complete the plans and programs
identified in paragraphs (2)(A) and (2)(B).
SEC. 15. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF
APPROPRIATED FUNDS FOR CERTAIN PURPOSES.
All provisions of existing Federal law prohibiting the spending of
appropriated funds to conduct oil and natural gas leasing and
preleasing activities for any area of the outer Continental Shelf shall
have no force or effect.
SEC. 16. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.
(a) In General.--No Federal agency may permit construction or
operation (or both) of any facility, or designate or maintain a
restricted transportation corridor or operating area on the Federal
outer Continental Shelf or in State waters, that will be incompatible
with, as determined by the Secretary of the Interior, oil and gas or
natural gas leasing and substantially full exploration and production
of tracts that are geologically prospective for oil or natural gas (or
both).
(b) Exceptions.--Subsection (a) shall not apply to any facility,
transportation corridor, or operating area the construction, operation,
designation, or maintenance of which is or will be--
(1) located in an area of the outer Continental Shelf that
is unavailable for oil and gas or natural gas leasing by
operation of law;
(2) used for a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
(3) required in the national interest, as determined by the
President.
SEC. 17. REPURCHASE OF CERTAIN LEASES.
(a) Authority to Repurchase and Cancel Certain Leases.--The
Secretary of the Interior shall repurchase and cancel any Federal oil
and gas, geothermal, coal, oil shale, tar sands, or other mineral
lease, whether onshore or offshore, if the Secretary finds that such
lease qualifies for repurchase and cancellation under the regulations
authorized by this section.
(b) Regulations.--Not later than 365 days after the date of the
enactment of this Act, the Secretary shall publish a final regulation
stating the conditions under which a lease referred to in subsection
(a) would qualify for repurchase and cancellation, and the process to
be followed regarding repurchase and cancellation. Such regulation
shall include, but not be limited to, the following:
(1) The Secretary shall repurchase and cancel a lease after
written request by the lessee upon a finding by the Secretary
that--
(A) a request by the lessee for a required permit
or other approval complied with applicable law, except
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), and terms of the lease and such permit or
other approval was denied;
(B) a Federal agency failed to act on a request by
the lessee for a required permit, other approval, or
administrative appeal within a regulatory or statutory
time-frame associated with the requested action,
whether advisory or mandatory, or if none, within 180
days; or
(C) a Federal agency attached a condition of
approval, without agreement by the lessee, to a
required permit or other approval if such condition of
approval was not mandated by Federal statute or
regulation in effect on the date of lease issuance, or
was not specifically allowed under the terms of the
lease.
(2) A lessee shall not be required to exhaust
administrative remedies regarding a permit request,
administrative appeal, or other required request for approval
for the purposes of this section.
(3) The Secretary shall make a final agency decision on a
request by a lessee under this section within 180 days of
request.
(4) Compensation to a lessee to repurchase and cancel a
lease under this section shall be the amount that a lessee
would receive in a restitution case for a material breach of
contract.
(5) Compensation shall be in the form of a check or
electronic transfer from the Department of the Treasury from
funds deposited into miscellaneous receipts under the authority
of the same Act that authorized the issuance of the lease being
repurchased.
(6) Failure of the Secretary to make a final agency
decision on a request by a lessee under this section within 180
days of request shall result in a 10 percent increase in the
compensation due to the lessee if the lease is ultimately
repurchased.
(c) No Prejudice.--This section shall not be interpreted to
prejudice any other rights that the lessee would have in the absence of
this section.
SEC. 18. OFFSITE ENVIRONMENTAL MITIGATION.
Notwithstanding any other provision of law, any person conducting
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C.
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.),
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying
any mitigation requirements associated with such activities propose
mitigation measures on a site away from the area impacted and the
Secretary of the Interior shall accept these proposed measures if the
Secretary finds that they generally achieve the purposes for which
mitigation measures appertained.
SEC. 19. AMENDMENTS TO THE MINERAL LEASING ACT.
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is
amended to read as follows:
``(g) Regulation of Surface-Disturbing Activities.--
``(1) Regulation of surface-disturbing activities.--The
Secretary of the Interior, or for National Forest lands, the
Secretary of Agriculture, shall regulate all surface-disturbing
activities conducted pursuant to any lease issued under this
Act, and shall determine reclamation and other actions as
required in the interest of conservation of surface resources.
``(2) Submission of exploration plan; completion review;
compliance review.--
``(A) Prior to beginning oil and gas exploration
activities, a lessee shall submit an exploration plan
to the Secretary of the Interior for review.
``(B) The Secretary shall review the plan for
completeness within 10 days of submission.
``(C) In the event the exploration plan is
determined to be incomplete, the Secretary shall notify
the lessee in writing and specify the items or
information needed to complete the exploration plan.
``(D) The Secretary shall have 10 days to review
any modified exploration plan submitted by the lessee.
``(E) To be deemed complete, an exploration plan
shall include, in the degree of detail to be determined
by the Secretary by rule or regulation--
``(i) a drilling plan containing a
description of the drilling program;
``(ii) the surface and projected completion
zone location;
``(iii) pertinent geologic data;
``(iv) expected hazards, and proposed
mitigation measures to address such hazards;
``(v) a schedule of anticipated exploration
activities to be undertaken;
``(vi) a description of equipment to be
used for such activities;
``(vii) a certification from the lessee
stating that the exploration plan complies with
all lease, regulatory and statutory
requirements in effect on the date of the
issuance of the lease;
``(viii) evidence that the lessee has
secured an adequate bond, surety, or other
financial arrangement prior to commencement of
any surface disturbing activity;
``(ix) a plan that details the complete and
timely reclamation of the lease tract; and
``(x) such other relevant information as
the Secretary may by regulation require.
``(F) Upon a determination that the exploration
plan is complete, the Secretary shall have 30 days from
the date the plan is deemed complete to conduct a
review of the plan.
``(G) If the Secretary finds the exploration plan
is not consistent with all statutory and regulatory
requirements in effect on the date of issuance of the
lease, the Secretary shall notify the lessee with a
detailed explanation of such modifications of the
exploration plan as are necessary to achieve
compliance.
``(H) The lessee shall not take any action under
the exploration plan within a 30 day review period, or
thereafter until the plan has been modified to achieve
compliance as so notified.
``(I) After review by the Secretary provided by
this subsection, a lessee may operate pursuant to the
plan without further review or approval by the
Secretary.
``(3) Plan revisions; conduct of exploration activities.--
``(A) If a significant revision of an exploration
plan under this subsection is submitted to the
Secretary, the process to be used for the review of
such revision shall be the same as set forth in
paragraph (1) of this subsection.
``(B) All exploration activities pursuant to any
lease shall be conducted in accordance with an
exploration plan that has been submitted to and
reviewed by the Secretary or a revision of such plan.
``(4) Submission of development and production plan;
completeness review; compliance review.--
``(A) Prior to beginning oil and gas development
and production activities, a lessee shall submit a
development and exploration plan to the Secretary of
the Interior. Upon submission, such plans shall be
subject to a review for completeness.
``(B) The Secretary shall review the plan for
completeness within 30 days of submission.
``(C) In the event a development and production
plan is determined to be incomplete, the Secretary
shall notify the lessee in writing and specify the
items or information needed to complete the plan.
``(D) The Secretary shall have 30 days to review
for completeness any modified development and
production plan submitted by the lessee.
``(E) To be deemed complete, a development and
production plan shall include, in the degree of detail
to be determined by the Secretary by rule or
regulation--
``(i) a drilling plan containing a
description of the drilling program;
``(ii) the surface and projected completion
zone location;
``(iii) pertinent geologic data;
``(iv) expected hazards, and proposed
mitigation measures to address such hazards;
``(v) a statement describing all facilities
and operations proposed by the lessee and known
by the lessee (whether or not owned or operated
by such lessee) that shall be constructed or
utilized in the development and production of
oil or gas from the leases areas, including the
location and site of such facilities and
operations, the land, labor, material, and
energy requirements associated with such
facilities and operations;
``(vi) the general work to be performed;
``(vii) the environmental safeguards to be
implemented in connection with the development
and production and how such safeguards are to
be implemented;
``(viii) all safety standards to be met and
how such standards are to be met;
``(ix) an expected rate of development and
production and a time schedule for performance;
``(x) a certification from the lessee
stating that the development and production
plan complies with all lease, regulatory, and
statutory requirements in effect on the date of
issuance of the lease;
``(xi) evidence that the lessee has secured
an adequate bond, surety, or other financial
arrangement prior to commencement of any
surface disturbing activity;
``(xii) a plan that details the complete
and timely reclamation of the lease tract; and
``(xiii) such other relevant information as
the Secretary may by regulation require.
``(F) Upon a determination that the development and
production plan is complete, the Secretary shall have
120 days from the date the plan is deemed complete to
conduct a review of the plan.
``(G) If the Secretary finds the development and
production plan is not consistent with all statutory
and regulatory requirements in effect on the date of
issuance of the lease, the Secretary shall notify the
lessee with a detailed explanation of such
modifications of the development and production plan as
are necessary to achieve compliance.
``(H) The lessee shall not take any action under
the development and production plan within a 120 day
review period, or thereafter until the plan has been
modified to achieve compliance as so notified.
``(5) Plan revisions; conduct of development and production
activities.--
``(A) If a significant revision of a development
and production plan under this subsection is submitted
to the Secretary, the process to be used for the review
of such revision shall be the same as set forth in
paragraph (4) of this subsection.
``(B) All development and production activities
pursuant to any lease shall be conducted in accordance
with an exploration plan that has been submitted to and
reviewed by the Secretary or a revision of such plan.
``(6) Cancellation of lease on failure to submit plan or
comply with approved plan.--Whenever the owner of any lease
fails to submit a plan in accordance with regulations issued
under this section, or fails to comply with a plan, the lease
may be canceled in accordance with section 31. Termination of a
lease because of failure to comply with a plan, including
required modifications or revisions, shall not entitle a lessee
to any compensation.''.
SEC. 20. MINERALS MANAGEMENT SERVICE.
The bureau known as the ``Minerals Management Service'' in the
Department of the Interior shall be known as the ``National Ocean
Resources and Royalty Service''.
SEC. 21. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS
AND OTHER FACILITIES FOR MARICULTURE, ARTIFICIAL REEF,
SCIENTIFIC RESEARCH, OR OTHER USES.
(a) Short Title.--This section may be cited as the ``Rigs to Reefs
Act of 2005''.
(b) In General.--The Outer Continental Shelf Lands Act (43 U.S.C.
1301 et seq.) is amended by inserting after section 9 the following:
``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND
OTHER FACILITIES FOR MARICULTURE, ARTIFICIAL REEF,
SCIENTIFIC RESEARCH, OR OTHER USES.
``(a) In General.--The Secretary shall issue regulations under
which the Secretary may authorize use of an offshore oil and gas
platform or other facility that is decommissioned from service for oil
and gas purposes for culture of marine organisms, an artificial reef,
scientific research, or any other use authorized under section 8(p).
``(b) Transfer Requirements.--The Secretary shall not allow the
transfer of a decommissioned offshore oil and gas platform or other
facility to another person unless the Secretary is satisfied that the
transferee is sufficiently bonded, endowed, or otherwise financially
able to fulfill its obligations, including but not limited to--
``(1) ongoing maintenance of the platform or other
facility;
``(2) any liability obligations that might arise;
``(3) removal of the platform or other facility if
determined necessary by the Secretary; and
``(4) any other requirements and obligations that the
Secretary may deem appropriate by regulation.
``(c) Plugging and Abandonment.--The Secretary shall ensure that
obligations of a lessee regarding the plugging and abandonment of wells
are unaffected by implementation of this section.
``(d) Potential to Petition to Opt-Out of Regulations.--An Adjacent
State acting through a resolution of its legislature, with concurrence
of its Governor, may petition to opt-out of the application of
regulations promulgated under this section to platforms and other
facilities located in the area of its Adjacent Zone within 25 miles of
the coastline. The Secretary is authorized to except such area from the
application of such regulations, and shall approve such petition,
unless the Secretary finds that approving the petition would probably
cause serious harm or damage to the marine resources of the State's
Adjacent Zone. Prior to acting on the petition, the Secretary shall
complete an environmental assessment that documents the anticipated
environmental effects of approving the petition.
``(e) Limitation on Liability.--A person that had used an offshore
oil and gas platform or other facility for oil and gas purposes and
that no longer has any ownership or control of the platform or other
facility shall not be liable under Federal law for any costs or damages
arising from such platform or other facility after the date the
platform or other facility is used for any purpose under subsection
(a), unless such costs or damages arise from--
``(1) use of the platform or other facility by the person
for development or production of oil or gas; or
``(2) another act or omission of the person.
``(f) Other Leasing and Use not Affected.--This section, and the
use of any offshore oil and gas platform or other facility for any
purpose under subsection (a), shall not affect--
``(1) the authority of the Secretary to lease any area
under this Act; or
``(2) any activity otherwise authorized under this Act.''.
(c) Deadline for Regulations.--The Secretary of the Interior shall
issue regulations under subsection (b) by not later than 180 days after
the date of the enactment of this Act.
(d) Study and Report on Effects of Removal of Platforms.--Not later
than one year after the date of enactment of this Act, the Secretary of
the Interior, in consultation with other Federal agencies as the
Secretary deems advisable, shall study and report to the Congress
regarding how the removal of offshore oil and gas platforms and other
facilities from the outer Continental Shelf would affect existing fish
stocks and coral populations.
SEC. 22. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF
OCS OIL AND NATURAL GAS RESOURCES.
The Energy Policy Act of 2005 (Public Law 109-58) is amended--
(1) by repealing section 357 (119 Stat. 720; 42 U.S.C.
15912); and
(2) in the table of contents in section 1(b), by striking
the item relating to such section 357.
SEC. 23. MINING AND PETROLEUM SCHOOLS.
(a) Federal Energy and Mineral Resources Professional Development
Fund.--
(1) Professional development fund.--There is established in
the Treasury a separate account to be known as the ``Federal
Energy And Mineral Resources Professional Development Fund''
(in this section referred to as the ``Professional Development
Fund'').
(2) Funding.--The Secretary of the Treasury shall deposit
in the Professional Development Fund--
(A) such sums as are provided by sections
9(b)(5)(A)(iii), 9(b)(5)(B)(iii), 9(c)(4)(A)(iii), and
9(c)(4)(B)(iii) of the Outer Continental Shelf Lands
Act, as amended by this Act;
(B)(i) during the period of October 1, 2006,
through September 30, 2015, 0.4 percent of all sums
paid into the Treasury under section 35 of the Mineral
Leasing Act (30 U.S.C. 191), and
(ii) beginning October 1, 2015, and thereafter, 2.0
percent of all sums paid into the Treasury under
section 35 of the Mineral Leasing Act (30 U.S.C. 191);
(C)(i) during the period of October 1, 2006,
through September 30, 2015, 0.4 percent of all sums
paid into the Treasury from receipts derived from bonus
bids and royalties from other mineral leasing on public
lands, and
(ii) beginning October 1, 2015, and thereafter, 2.0
percent of all sums paid into the Treasury from
receipts derived from bonus bids and royalties from
other mineral leasing on public lands;
(D) donations received under paragraph (4);
(E) amounts referred to in section 2325 of the
Revised Statutes; and
(F) funds received under section 10 of the Energy
and Mineral Schools Reinvestment Act, as amended by
this Act.
(3) Investments.--The Secretary of the Treasury shall
invest the amounts deposited under paragraph (2) and all
accrued interest on the amounts deposited under paragraph (2)
only in interest bearing obligations of the United States or in
obligations guaranteed as to both principal and interest by the
United States.
(4) Donations.--The Secretary of the Interior may solicit
and accept donations of funds for deposit into the Professional
Development Fund.
(5) Availability to secretary of the interior.--
(A) In general.--Beginning with fiscal year 2007,
and in each fiscal year thereafter, the amounts
deposited into the Professional Development Fund,
together with the interest thereon, shall be available,
without fiscal year limitations, to the Secretary of
the Interior for use to carry out the Energy and
Mineral Schools Reinvestment Act.
(B) Withdrawals and transfer of funds.--The
Secretary of the Treasury shall withdraw such amounts
from the Professional Development Fund as the Secretary
of the Interior may request and transfer such amounts
to the Secretary of the Interior to be used, at the
discretion of the Secretary to carry out the Energy and
Mineral Schools Reinvestment Act.
(b) Maintenance and Restoration of Existing and Historic Petroleum
and Mining Engineering Programs.--Public Law 98-409 (30 U.S.C. 1221 et
seq.) is amended to read as follows:
``SEC. 1. SHORT TITLE.
``This Act may be cited as the `Energy and Mineral Schools
Reinvestment Act'.
``SEC. 2. POLICY.
``It is the policy of the United States to maintain the human
capital needed to preserve and foster the economic, energy, and mineral
resources security of the United States. The petroleum and mining
engineering programs and the applied geology and geophysics programs at
State chartered schools, universities, and institutions that produce
human capital are national assets and should be assisted with Federal
funds to ensure their continued health and existence.
``SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING PETROLEUM AND
MINING ENGINEERING EDUCATION PROGRAMS.
``(a) Using the funds in the Federal Energy And Mineral Resources
Professional Development Fund, the Secretary of the Interior (in this
Act referred to as the `Secretary') shall provide funds to each
historic and existing State-chartered recognized petroleum or mining
school to assist such schools, universities, and institutions in
maintaining programs in petroleum, mining, and mineral engineering
education and research. All funds shall be directed only to these
programs and shall be subject to the conditions of this section. Such
funds shall not be less than 35 percent of the annual outlay of funds
under this Act.
``(b) In this Act the term `historic and existing State-chartered
recognized petroleum or mining school' means a school, university, or
educational institution with the presence of an engineering program
meeting the specific program criteria, established by the member
societies of ABET, Inc., for petroleum, mining, or mineral engineering
and that is accredited on the date of enactment of the Domestic Energy
Production through Offshore Exploration and Equitable Treatment of
State Holdings Act of 2006 by ABET, Inc.
``(c) It shall be the duty of each school, university, or
institution receiving funds under this section to provide for and
enhance the training of undergraduate and graduate petroleum, mining,
and mineral engineers through research, investigations, demonstrations,
and experiments. All such work shall be carried out in a manner that
will enhance undergraduate education.
``(d) Each school, university, or institution receiving funds under
this Act shall maintain the program for which the funds are provided
for 10 years after the date of the first receipt of such funds take
steps agreed to by the Secretary, to increase the number of
undergraduate students enrolled in and completing the programs of study
in petroleum, mining, and mineral engineering.
``(e) The research, investigation, demonstration, experiment, and
training authorized by this section may include development and
production of conventional and non-conventional fuel resources, the
production of metallic and non-metallic mineral resources including
industrial mineral resources, and the production of stone, sand, and
gravel. In all cases the work carried out with funds made available
under this Act shall include a significant opportunity for
participation by undergraduate students.
``(f) Research funded by this Act related to energy and mineral
resource development and production may include studies of petroleum,
mining, and mineral extraction and immediately related beneficiation
technology; mineral economics, reclamation technology and practices for
active operations, and the development of re-mining systems and
technologies to facilitate reclamation that fosters the ultimate
recovery of resources at abandoned petroleum, mining, and aggregate
production sites.
``(g) Grants for basic science and engineering studies and research
shall not require additional participation by funding partners. Grants
for studies to demonstrate the proof of concept for science and
engineering or the demonstration of feasibility and implementation
shall include participation by industry and may include funding from
other Federal agencies.
``(h)(1) No funds made available under this section shall be
applied to the acquisition by purchase or lease of any land or
interests therein, or the rental, purchase, construction, preservation,
or repair of any building.
``(2) Funding made available under this section may be used with
the express approval of the Secretary for proposals that will provide
for maintaining or upgrading of existing laboratories and laboratory
equipment. Funding for such maintenance shall not be used for
university overhead expenses.
``(3) Funding made available under this Act may be used for
maintaining and upgrading mines and oil and gas drilling rigs owned by
a school, university, or institution described in this section that are
used for undergraduate and graduate training and worker safety
training. All requests for funding such mines and oil and gas drilling
rigs must demonstrate that they have been owned by the school,
university, or institution for 5 years prior to the date of enactment
of the Domestic Energy Production through Offshore Exploration and
Equitable Treatment of State Holdings Act of 2006 and have been
actively used for instructional or training purposes during that time.
``(4) Any funding made available under this section for research,
investigation, demonstration, experiment, or training shall not be used
for university overhead charges in excess of 10 percent of the amount
authorized by the Secretary.
``SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING PROGRAMS.
``A school, university, or educational institution that formerly
met the requirements of section 3(b) immediately before the date of the
enactment of the Domestic Energy Production through Offshore
Exploration and Equitable Treatment of State Holdings Act of 2006, or
that seeks to establish a new program described in section 3(b), shall
be eligible for funding under this Act only if it--
``(1) establishes a petroleum, mining, or mineral
engineering program that meets the specific program criteria
and is accredited as such by ABET, Inc.;
``(2) agrees to the conditions of subsections (c), (d), and
(e) of section 3 and the Secretary, as advised by the Committee
established by section 11, determines that the program will
strengthen and increase the number of nationally available,
well- qualified faculty members in petroleum, mining, and
mineral engineering; and
``(3) agrees to maintain the accredited program for 10
years after the date of the first receipt of funds under this
Act.
``SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING SCHOOLS.
``(a) Where appropriate, the Secretary may make funds available to
consortia of schools, universities, or institutions described in
sections 3, 4, and 6 to meet the necessary expenses for purposes of--
``(1) specific energy and mineral research projects of
broad application that could not otherwise be undertaken,
including the expenses of planning and coordinating regional
petroleum, mining, and mineral engineering projects by two or
more schools; and
``(2) research into any aspects of petroleum, mining, or
mineral engineering problems, including but not limited to
exploration, that are related to the mission of the Department
of the Interior and that are considered by the Committee to be
desirable.
``(b) Each application for funds under subsection (a) shall state,
among other things, the nature of the project to be undertaken; the
period during which it will be pursued; the qualifications of the
personnel who will direct and conduct it; the estimated costs; the
importance of the project to the Nation, region, or States concerned;
its relation to other known research projects theretofore pursued or
being pursued; the extent to which the proposed project will maximize
the opportunity for the training of undergraduate petroleum, mining,
and mineral engineers; and the extent of participation by
nongovernmental sources in the project.
``(c) No funds shall be made available under this section except
for a project approved by the Secretary. All funds shall be made
available upon the basis of merit of the project, the need for the
knowledge that it is expected to produce when completed, and the
opportunity it provides for the undergraduate training of individuals
as petroleum, mining, and mineral engineers.
``SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL RESOURCE PROGRAMS
IN PETROLEUM AND MINERAL EXPLORATION GEOLOGY, PETROLEUM
GEOPHYSICS, OR MINING GEOPHYSICS.
``(a) Up to 20 percent of the annual outlay of funds under this Act
may be granted to schools, universities, and institutions other than
those described in sections 3 and 4.
``(b) The Secretary, as advised by the Committee established by
section 11, shall determine the eligibility of a college or university
to receive funding under this Act using criteria that include--
``(1) the presence of a substantial program of
undergraduate and graduate geoscience instruction and research
in one or more of the following specialties: petroleum geology,
mineral exploration geology, economic geology, industrial
minerals geology, mining geology, petroleum geophysics, mining
geophysics, geological engineering, or geophysical engineering
that has a demonstrated history of achievement;
``(2) evidence of institutional commitment for the purposes
of this Act that includes a significant opportunity for
participation by undergraduate students in research;
``(3) evidence that such school, university, or institution
has or can obtain significant industrial cooperation in
activities within the scope of this Act;
``(4) agreement by the school, university, or institution
to maintain the programs for which the funding is sought for
the 10-year period beginning on the date the school,
university, or institution first receives such funds; and
``(5) requiring that such funding shall be for the purposes
set forth in subsections (e), (f), and (g) of section 3 and
subject to the conditions set forth in section 3(h).
``SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.
``(a) The Secretary shall utilize not more than 30 percent of the
annual outlay of funds under this Act for the purpose of providing
merit-based scholarships for undergraduate education, graduate
fellowships, and postdoctoral fellowships.
``(b) In order to receive a scholarship or a graduate fellowship,
an individual student must be a lawful permanent resident of the United
States or a United States citizen and must agree in writing to complete
a course of studies and receive a degree in petroleum, mining, or
mineral engineering, petroleum geology, mining and economic geology,
petroleum and mining geophysics, or mineral economics.
``(c) The regulations required by section 9 shall require that an
individual, in order to retain a scholarship or graduate fellowship,
must continue in one of the course of studies listed in subsection (b)
of this section, must remain in good academic standing, as determined
by the school, institution, or university and must allow for
reinstatement of the scholarship or graduate fellowship by the
Secretary, upon the recommendation of the school or institution. Such
regulations may also provide for recovery of funds from an individual
who fails to complete any of the courses of study listed in subsection
(b) of this section after notice that such completion is a requirement
of receipt funding under this Act.
``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.
``(a) Funds available under this Act shall be paid at such times
and in such amounts during each fiscal year as determined by the
Secretary, and upon vouchers approved by the Secretary. Each school,
university, or institution that receives funds under this Act shall--
``(1) establish its plan to provide for the training of
individuals as petroleum or mineral engineers and scientists
under a curriculum appropriate to the field of mineral
resources and mineral engineering and related fields;
``(2) establish policies and procedures that assure that
Federal funds made available under this Act for any fiscal year
will supplement and, to the extent practicable, increase the
level of funds that would, in the absence of such Federal
funds, be made available for purposes of this Act, and in no
case supplant such funds; and
``(3) have an officer appointed by its governing authority
who shall receive and account for all funds paid under this Act
and shall make an annual report to the Secretary on or before
the first day of September of each year, on work accomplished
and the status of projects underway, together with a detailed
statement of the amounts received under this Act during the
preceding fiscal year, and of its disbursements on schedules
prescribed by the Secretary.
``(b) If any of the funds received by the authorized receiving
officer of a program under this Act are found by the Secretary to have
been improperly diminished, lost, or misapplied, such funds shall be
recovered by the Secretary.
``(c) Schools, universities, and institutions receiving funds under
this Act are authorized and encouraged to plan and conduct programs
under this Act in cooperation with each other and with such other
agencies, business enterprises and individuals.
``SEC. 9. DUTIES OF SECRETARY.
``(a) The Secretary, acting through the Assistant Secretary for
Land and Minerals Management, shall administer this Act and, after
consultation with other interested Federal agencies, shall prescribe
such rules and regulations as may be necessary to carry out its
provisions not later than 1 year after the enactment of the Domestic
Energy Production through Offshore Exploration and Equitable Treatment
of State Holdings Act of 2006.
``(b) The Secretary shall furnish such advice and assistance as
will best promote the purposes of this Act, shall participate in
coordinating research, investigations, demonstrations, and experiments
initiated under this Act, shall indicate to schools, universities, and
institutions receiving funds under this Act such lines of inquiry that
seem most important, and shall encourage and assist in the
establishment and maintenance of cooperation between such schools,
universities, and institutions, other research organizations, the
Department of the Interior, and other Federal agencies.
``(c) On or before the first day of July of each year beginning
after the date of enactment of this sentence, schools, universities,
and institutions receiving funds under this Act shall certify
compliance with this Act. An individual granted a scholarship or
fellowship with funds provided under this Act, shall through their
respective school, university, or institution, advise the Secretary
upon completion of the course of studies and the awarding of the degree
within 30 days after the award. As needed the Secretary shall ascertain
whether the requirements of this Act have been met by schools,
universities, and institutions and individuals.
``SEC. 10. COORDINATION.
``(a) Nothing in this Act shall be construed to impair or modify
the legal relationship existing between any of the schools,
universities, and institutions under whose direction a program is
established with funds provided under this Act and the government of
the State in which it is located. Nothing in this Act shall in any way
be construed to authorize Federal control or direction of education at
any school, university, or institution.
``(b) The programs authorized by this Act are intended to enhance
the Nation's petroleum, mining, and mineral engineering education
programs and to enhance educational programs in petroleum and mining
exploration and to increase the number of individuals enrolled in and
completing these programs. To achieve this intent, the Secretary and
the Committee established by section 11 shall receive the continuing
advice and cooperation of all agencies of the Federal Government
concerned with the identification, exploration, and development energy
and mineral resources.
``(c) Nothing in this Act is intended to give or shall be construed
as giving the Secretary any authority over mining and mineral resources
research conducted by any agency of the Federal Government, or as
repealing or diminishing existing authorities or responsibilities of
any agency of the Federal Government to plan and conduct, contract for,
or assist in research in its area of responsibility and concern with
regard to mining and mineral resources.
``(d) The schools, universities, and institutions receiving funding
under this Act shall generally make publicly available the information
and reports on projects completed, in progress, or planned with funds
provided under this Act. This information shall be made available on an
annual basis. All uses, products, processes, patents, and other
developments resulting from any research, demonstration, or experiment
funded in whole or in part under this Act shall be made available
promptly to the general public, subject to exception or limitation, if
any, as the Secretary may find necessary in the interest of national
security. Schools, universities, and institutions receiving patents for
inventions funded in whole or in part under this Act shall be governed
by the applicable Federal law, except that one percent of gross
revenues derived from such patents shall be paid by the schools and the
institutions to the Federal Energy and Mineral Resources Professional
Development Fund established by section 23(a) of the Domestic Energy
Production through Offshore Exploration and Equitable Treatment of
State Holdings Act of 2006.
``SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL ENGINEERING AND
ENERGY AND MINERAL RESOURCE EDUCATION.
``(a) The Secretary shall appoint a Committee on Petroleum, Mining,
and Mineral Engineering and Energy and Mineral Resource Education
composed of--
``(1) the Assistant Secretary of the Interior responsible
for land and minerals management and not more than 16 other
persons who are knowledgeable in the fields of mining and
mineral resources research, including 2 university
administrators one of whom shall be from historic and existing
petroleum and mining schools; a community, technical, or tribal
college administrator; a career technical education educator; 6
representatives equally distributed from the petroleum, mining,
and aggregate industries; a working miner; a working oilfield
worker; a representative of the Interstate Oil and Gas Compact
Commission; a representative from the Interstate Mining Compact
Commission; a representative from the Western Governors
Association; a representative of the State geologists, and a
representative of a State mining and reclamation agency. In
making these 16 appointments, the Secretary shall consult with
interested groups.
``(2) The Assistant Secretary for Land and Minerals
Management, in the capacity of the Chairman of the Committee,
may have present during meetings of the Committee
representatives of Federal agencies with responsibility for
energy and minerals resources management, energy and mineral
resource investigations, energy and mineral commodity
information, international trade in energy and mineral
commodities, mining regulation and mine safety research, and
research into the development, production, and utilization of
energy and mineral commodities. These representatives shall
serve as technical advisors to the committee and shall have no
voting responsibilities.
``(b) The Committee shall consult with, and make recommendations
to, the Secretary on all matters relating to funding energy and mineral
resources research and the awarding and allocation of funding made
under this Act. The Secretary shall consult with and carefully consider
recommendations of the Committee in such matters.
``(c) Committee members, other than officers or employees of
Federal, State, or local governments, shall be, for each day (including
traveltime) during which they are performing Committee business, paid
at a rate fixed by the Secretary but not in excess of the daily
equivalent of the maximum rate of pay for level IV of the Executive
Schedule under section 5136 of title 5, United States Code, and shall
be fully reimbursed for travel, subsistence, and related expenses.
``(d) The Committee shall be chaired by the Assistant Secretary of
the Interior responsible for land and minerals management. There shall
also be elected a Vice Chairman by the Committee from among the members
referred to in this section. The Vice Chairman shall perform such
duties as are determined to be appropriate by the committee, except
that the Chairman of the Committee must personally preside at all
meetings of the full Committee. The Committee may organize itself into
such subcommittees as the Committee may deem appropriate.
``(e) Following completion of the report required by section 385 of
the Energy Policy Act of 2005, the Committee shall consider the
recommendations of the report, ongoing efforts in the schools,
universities, and institutions receiving funding under this Act, the
Federal and State Governments, and the private sector, and shall
formulate and recommend to the Secretary a national plan for a program
utilizing the fiscal resources provided under this Act. The Committee
shall submit such plan to the Secretary for approval. Upon approval,
the plan shall guide the Secretary and the Committee in their actions
under this Act.
``(f) Section 10 of the Federal Advisory Committee Act (5 U.S.C.
App. 2) shall not apply to the Committee.
``SEC. 12. CAREER TECHNICAL EDUCATION.
``(a) Up to 15 percent of the annual outlay of funds under this Act
may be granted to schools or institutions including, but not limited
to, colleges, universities, community colleges, tribal colleges,
technical institutes, and secondary schools, other than those described
in sections 3, 4, 5, and 6.
``(b) The Secretary, as advised by the Committee established under
section 11, shall determine the eligibility of a school or institution
to receive funding under this section using criteria that include--
``(1) the presence of a substantial program of training,
including vocational education for individuals seeking to enter
the oil and gas, coal mining, or mineral mining industries in a
skilled technical trade offered by the schools or institutions
referred to in subsection (a); or
``(2) the presence of a State-approved program of career
technical education at a secondary school, offered
cooperatively with a schools or institutions referred to in
subsection (a) in one of the industrial sectors of--
``(A) agriculture, forestry, or fisheries;
``(B) utilities;
``(C) construction;
``(D) manufacturing; and
``(E) transportation and warehousing.
``(c) Schools or institutions receiving funds under this section
must show evidence of an institutional commitment for the purposes
career technical education and provide evidence that the school or
institution can obtain industrial cooperation in activities within the
scope of this Act.
``(d) Schools or institutions receiving funds under this section
must agree to maintain the programs for which the funding is sought for
a period of 10 years beginning on the date the school or institution
receives such funds, unless the Secretary finds that a shorter period
of time is appropriate for the local labor market or is required by
State authorities.''.
SEC. 24. ONSHORE AND OFFSHORE MINERAL LEASE FEES.
Notwithstanding any other provision of law, the Department of the
Interior is prohibited from charging fees applicable to actions on
Federal onshore and offshore oil and gas, coal, geothermal, and other
mineral leases, including transportation of any production from such
leases, if such fees were not established in final regulations prior to
the date of issuance of the lease.
SEC. 25. OCS REGIONAL HEADQUARTERS.
The headquarters for the Gulf of Mexico Region shall permanently be
located within the State of Louisiana within 25 miles of the center of
Jackson Square, New Orleans, Louisiana. Further, not later than July 1,
2008, the Secretary of the Interior shall establish the headquarters
for the Atlantic OCS Region and the headquarters for the Pacific OCS
Region within a State bordering the Atlantic OCS Region and a State
bordering the Pacific OCS Region, respectively, from among the States
bordering those Regions, that petitions by no later than January 1,
2008, for leasing, for oil and gas or natural gas, covering at least 40
percent of the area of its Adjacent Zone within 100 miles of the
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be
located within 25 miles of the coastline and each MMS OCS regional
headquarters shall be the permanent duty station for all Minerals
Management Service personnel that on a daily basis spend on average 60
percent or more of their time in performance of duties in support of
the activities of the respective Region, except that the Minerals
Management Service may house regional inspection staff in other
locations. Each OCS Region shall each be led by a Regional Director who
shall be an employee within the Senior Executive Service.
SEC. 26. NATIONAL GEOLOGIC DATA AND MAPPING FUND ACT OF 2005.
(a) Short Title.--This section may be cited as the ``National
Geologic Data and Mapping Fund Act of 2006''.
(b) Purposes.--The purpose of this section is to--
(1) establish a fund to provide funding for geologic
mapping and the preservation and use of geologic data;
(2) make available receipts derived from sales, bonus bids,
and royalties from onshore and offshore gas, minerals, oil, and
any additional form of energy exploration and development under
the laws of the United States for the purposes of the such
fund;
(3) distribute funds from such fund each fiscal year to the
Secretary of the Interior and the States; and
(4) use the distributed funds to secure the necessary
trained workforce, contractual services, and other support,
including maintenance and capital investments, to conduct
geologic mapping and preserve and make geologic data available
for use.
(c) Definitions.--In this section:
(1) Geologic fund.--The term ``Geologic Fund'' means the
National Geologic Data and Mapping Fund established by
subsection (d).
(2) State.--The term ``State'' means the State geological
survey, the agency that acts as the State geological survey, or
any other State government agency primarily responsible for
geologic mapping or geologic data preservation (or both) within
a State.
(d) Establishment and Use of National Geologic Data and Mapping
Fund.--
(1) Geologic fund.--There is established in the Treasury a
separate account to be known as the ``National Geologic Data
and Mapping Fund''.
(2) Funding.--The Secretary of the Treasury shall deposit
in the Enhancement Fund--
(A) such sums as are provided by sections
9(b)(5)(A)(iv), 9(b)(5)(B)(iv), 9(c)(4)(A)(iv), and
9(c)(4)(B)(iv) of the Outer Continental Shelf Lands
Act, as amended by this Act;
(B)(i) during the period of October 1, 2006,
through September 30, 2015, 0.1 percent of all sums
paid into the Treasury under section 35 of the Mineral
Leasing Act (30 U.S.C. 191), and
(ii) beginning October 1, 2015, and thereafter, 0.5
percent of all sums paid into the Treasury under
section 35 of the Mineral Leasing Act (30 U.S.C. 191);
and
(C)(i) during the period of October 1, 2006,
through September 30, 2015, 0.1 percent of all sums
paid into the Treasury from receipts derived from bonus
bids and royalties from other mineral leasing on public
lands, and
(ii) beginning October 1, 2015, and thereafter, 0.5
percent of all sums paid into the Treasury from
receipts derived from bonus bids and royalties from
other mineral leasing on public lands.
(3) Investments.--The Secretary of the Treasury shall
invest the amounts deposited under paragraph (2) and all
accrued interest on the amounts deposited under paragraph (2)
only in interest bearing obligations of the United States or in
obligations guaranteed as to both principal and interest by the
United States.
(4) Availability to secretary of the interior.--
(A) In general.--Beginning with fiscal year 2007,
and in each fiscal year thereafter, one-third of
amounts deposited into the Geologic Fund, together with
the interest thereon, shall be available, without
fiscal year limitations, to the Secretary of the
Interior for use for the purposes described in
subsection (b)(4).
(B) Withdrawals and transfer of funds.--The
Secretary of the Treasury shall withdraw such amounts
from the Geologic Fund as the Secretary of the Interior
may request, subject to the limitation in subparagraph
(A), and transfer such amounts to the Secretary of the
Interior to be used, at the discretion of the Secretary
of the Interior, by the Minerals Management Service,
the Bureau of Land Management, and the United States
Geological Survey for the purposes described in
subsection (b)(4). No funds distributed from the
Geologic Fund may be used to purchase an interest in
land.
(5) Payment to states.--
(A) In general.--Beginning with fiscal year 2007,
and in each fiscal year thereafter, two-thirds of
amounts deposited into the Geologic Fund, together with
the interest thereon, shall be available, without
fiscal year limitations, to the States for use for the
purposes described in subsection (b)(4).
(B) Withdrawals and transfer of funds.--Within the
first 90 days of each fiscal year, the Secretary of the
Treasury shall withdraw amounts from the Geologic Fund
and transfer such amounts to the States based on a
formula devised by the Secretary of the Interior based
on the relative geologic mapping and data preservation
needs of the States.
(C) Use of payments by states.--Each State shall
use the payments made under subparagraph (B) only for
carrying out projects and programs for the purposes
described in subsection (b)(4). No funds distributed
from the Geologic Fund may be used to purchase an
interest in land.
(D) Encouragement of use of private funds by
states.--Each State shall use the payments made under
subparagraph (B) to leverage private funds for carrying
out projects for the purposes described in subsection
(b)(4).
(e) Report to Congress.--Beginning in fiscal year 2008 and
continuing for each fiscal year thereafter, the Secretary of the
Interior and each State receiving funds from the Geologic Fund shall
submit a report to the Committee on Energy and Natural Resources of the
Senate and the Committee on Resources of the House of Representatives.
Reports submitted to the Congress by the Secretary of the Interior and
the States shall include detailed information regarding expenditures
during the previous fiscal year.
SEC. 27. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR
FLORIDA.
(a) Authorization to Cancel and Exchange Certain Existing Oil and
Gas Leases; Prohibition on Submittal of Exploration Plans for Certain
Leases Prior to June 30, 2012.--
(1) Authority.--Effective 180 days after the date of
enactment of this subtitle, the lessee of an existing oil and
gas lease for an area located completely within 100 miles of
the coastline within the California or Florida Adjacent Zones
shall have the option, without compensation, of exchanging such
lease for a new oil and gas lease having a primary term of 5
years. For the area subject to the new lease, the lessee may
select any unleased tract at least part of which is located
within the area between 100 and 125 miles from the coastline,
and completely beyond 100 miles from the coastline, within the
same Adjacent State's Adjacent Zone as the lease being
exchanged.
(2) Administrative process.--The Secretary of the Interior
shall establish a reasonable administrative 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.). Further, such exchanges conducted in
accordance with this section are deemed to be in compliance all
provisions 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 unavailable 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 operating restrictions on the OCS tract
covered by the new lease as may be applicable upon issuance.
(4) Priority.--The Secretary shall give priority 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 Secretary 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 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, 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 approved.
(b) Further Lease Cancellation and Exchange Provisions.--
(1) Cancellation of lease.--As part of the lease exchange
process under this section, the Secretary 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 plugging and abandonment
requirements for any wells located on any lease to be cancelled
and exchanged under this section must be complied with by the
lessees prior to the cancellation and exchange.
(c) Area Partially Within 100 Miles of Florida.--An existing oil
and gas lease for an area located partially within 100 miles of the
coastline within the Florida 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.
(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. 28. COASTAL IMPACT ASSISTANCE.
Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is repealed.
SEC. 29. OIL SHALE AND TAR SANDS AMENDMENTS.
(a) Repeal of Requirement to Establish Payments.--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 adding at the end the following:
``(e) Revenues.--
``(1) In general.--Notwithstanding the provisions of
section 35, all revenues received from and under an oil shale
or tar sands lease shall be disposed 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 commercial leasing program
established under subsection (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 rate set
by the Secretary shall not apply to production
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
production.
``(C) Reduction.--The Secretary shall reduce 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, Oklahoma, (WTI) drops below $50 (in 2005
dollars) for the month in which the production is sold,
and an 80 percent reduction if the monthly average
price of WTI drops below $30 (in 2005 dollars) for the
month in which the production is sold.
``(3) Disposition of revenues.--
``(A) Deposit.--The Secretary shall deposit 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 subparagraph (A) to the State within the
boundaries of which the leased lands are located, with
a portion of that to be paid directly by the Secretary
to the State's local political subdivisions as provided
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--
``(I) to each State two-thirds of
such State's allocations under
subparagraph (B), and in accordance
with clauses (ii) and (iii) to certain
county-equivalent and municipal
political 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
account that are not allocated under
subparagraph (B), together with
interest 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 subdivisions.--The
Secretary shall under clause (i)(I) make
equitable allocations of the revenues to
county-equivalent political subdivisions that
the Secretary determines are closely associated
with the leasing and production of oil shale
and tar sands, under a formula that the
Secretary shall determine by regulation.
``(iii) Allocations to municipal political
subdivisions.--The initial allocation to each
county-equivalent political subdivision under
clause (ii) shall be further allocated to the
county-equivalent political subdivision and any
municipal political subdivisions located
partially or wholly within the boundaries of
the county-equivalent political subdivision on
an equitable basis under a formula that the
Secretary shall determine by regulation.
``(D) Investment of deposits.--The deposits in the
Treasury account established under this section shall
be invested by the Secretary 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.
``(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 programs 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 recipient 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 political subdivision' means a
political jurisdiction immediately below the level of
State government, including a county, parish, borough
in Alaska, independent municipality not part of a
county, parish, or borough in Alaska, or other
equivalent subdivision of a State.
``(B) Municipal political subdivision.--The term
`municipal political subdivision' means a municipality
located within and part of a county, parish, borough in
Alaska, or other equivalent subdivision of a State.''.
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