HR 3089 IHCommentsClose CommentsPermalink

To secure unrestricted reliable energy for American consumption and transmission.CommentsClose CommentsPermalink

July 18, 2007

Mr. THORNBERRY introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Ways and Means and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To secure unrestricted reliable energy for American consumption and transmission.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `No More Excuses Energy Act of 2007'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--REFINERIES

Sec. 101. Issuance of guidance.CommentsClose CommentsPermalink





Sec. 102. Tax-exempt financing of domestic use oil refinery facilities.CommentsClose CommentsPermalink





Sec. 103. Designation and availability of Federal lands for oil and natural gas refineries.CommentsClose CommentsPermalink

TITLE II--ALTERNATIVE ENERGY

Sec. 201. Extension of wind production tax credit.CommentsClose CommentsPermalink

TITLE III--NUCLEAR ENERGY

Sec. 301. Waste Confidence.CommentsClose CommentsPermalink





Sec. 302. ASME Nuclear Certification credit.CommentsClose CommentsPermalink

TITLE IV--DRILLING

Subtitle A--Tax Provisions

Sec. 401. Credit for producing fuel from nonconventional sources to apply to gas produced onshore from formations more than 15,000 feet deep.CommentsClose CommentsPermalink





Sec. 402. Tax credit for carbon dioxide captured from industrial sources and used in enhanced oil and natural gas recovery.CommentsClose CommentsPermalink

Subtitle B--Termination of Congressional Moratoria on Oil and Gas Development on the Outer Continental Shelf

Sec. 411. Termination of laws prohibiting expenditures for oil and natural gas leasing and preleasing activities regarding areas of the outer continental shelf.CommentsClose CommentsPermalink

Subtitle C--Oil and Gas Development on the Coastal Plain of Alaska

Sec. 421. Short title.CommentsClose CommentsPermalink





Sec. 422. Definitions.CommentsClose CommentsPermalink





Sec. 423. Leasing program for lands within the Coastal Plain.CommentsClose CommentsPermalink





Sec. 424. Lease sales.CommentsClose CommentsPermalink





Sec. 425. Grant of leases by the Secretary.CommentsClose CommentsPermalink





Sec. 426. Lease terms and conditions.CommentsClose CommentsPermalink





Sec. 427. Coastal plain environmental protection.CommentsClose CommentsPermalink





Sec. 428. Expedited judicial review.CommentsClose CommentsPermalink





Sec. 429. Federal and State distribution of revenues.CommentsClose CommentsPermalink





Sec. 430. Rights-of-way across the Coastal Plain.CommentsClose CommentsPermalink





Sec. 431. Conveyance.CommentsClose CommentsPermalink





Sec. 432. Local government impact aid and community service assistance.CommentsClose CommentsPermalink

TITLE I--REFINERIES

SEC. 101. ISSUANCE OF GUIDANCE.

The Secretary of the Treasury shall, not later than 60 days after the date of the enactment of this Act, prescribe the regulations described in paragraph (1) of section 179C(b) of the Internal Revenue Code of 1986 (relating to election to expense certain refineries).CommentsClose CommentsPermalink

SEC. 102. TAX-EXEMPT FINANCING OF DOMESTIC USE OIL REFINERY FACILITIES.

(a) In General-CommentsClose CommentsPermalink





(1) TREATMENT AS EXEMPT FACILITY BOND- Subsection (a) of section 142 (relating to exempt facility bond) is amended by striking `or' at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting `, and', and by inserting at the end the following new paragraph:CommentsClose CommentsPermalink





`(16) domestic use oil refinery facilities.'.CommentsClose CommentsPermalink





(2) DOMESTIC USE OIL REFINERY FACILITIES- Section 142 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(n) Domestic Use Oil Refinery Facilities-CommentsClose CommentsPermalink





`(1) IN GENERAL- For purposes of subsection (a)(16), the term `domestic use oil refinery facility' means any facility in the United States--CommentsClose CommentsPermalink





`(A) which processes liquid fuel from crude oil, andCommentsClose CommentsPermalink





`(B) all of the output of which it is reasonably certain ultimate consumption will occur in the United States.CommentsClose CommentsPermalink





`(2) ELECTION TO TERMINATE TAX-EXEMPT BOND FINANCING BY CERTAIN REFINERIES- In the case of a facility financed with bonds which would cease to be tax-exempt by reason of the failure to meet the domestic use requirement of this subsection, rules similar to the rules of subsection (f)(4) shall apply for purposes of this section.'.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 103. DESIGNATION AND AVAILABILITY OF FEDERAL LANDS FOR OIL AND NATURAL GAS REFINERIES.

(a) Designation- Within 18 months after the date of enactment of this Act, the President shall designate at least ten sites on Federal lands that are suitable for the siting of an oil refinery or natural gas refinery (or both).CommentsClose CommentsPermalink





(b) Availability of Lands- Within 24 months after the date of enactment of this Act, the President shall make each site designated under subsection (a) available to the private sector for construction of an oil refinery or natural gas refinery (or both), as appropriate.CommentsClose CommentsPermalink

TITLE II--ALTERNATIVE ENERGY

SEC. 201. EXTENSION OF WIND PRODUCTION TAX CREDIT.

(a) In General- Paragraph (1) of section 45(d) is amended by striking `2009' and inserting `2019'.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to property originally placed in service on or after January 1, 2009.CommentsClose CommentsPermalink

TITLE III--NUCLEAR ENERGY

SEC. 301. WASTE CONFIDENCE.

The Nuclear Regulatory Commission may not deny an application for a license, permit, or other authorization under the Atomic Energy Act of 1954 on the grounds that sufficient capacity does not exist, or will not become available on a timely basis, for disposal of spent nuclear fuel or high-level radioactive waste from the facility for which the license, permit, or other authorization is sought.CommentsClose CommentsPermalink

SEC. 302. ASME NUCLEAR CERTIFICATION CREDIT.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 45O. ASME NUCLEAR CERTIFICATION CREDIT.

`(a) In General- For purposes of section 38, the ASME Nuclear Certification credit determined under this section for any taxable year is an amount equal to 15 percent of the qualified nuclear expenditures paid or incurred by the taxpayer.CommentsClose CommentsPermalink





`(b) Qualified Nuclear Expenditures- For purposes of this section, the term `qualified nuclear expenditures' means any expenditure related to--CommentsClose CommentsPermalink





`(1) obtaining a certification under the American Society of Mechanical Engineers Nuclear Component Certification program, orCommentsClose CommentsPermalink





`(2) increasing the taxpayer's capacity to construct, fabricate, assemble, or install components--CommentsClose CommentsPermalink





`(A) for any facility which uses nuclear energy to produce electricity, andCommentsClose CommentsPermalink





`(B) with respect to the construction, fabrication, assembly, or installation of which the taxpayer is certified under such program.CommentsClose CommentsPermalink





`(c) Timing of Credit- The credit allowed under subsection (a) for any expenditures shall be allowed--CommentsClose CommentsPermalink





`(1) in the case of a qualified nuclear expenditure described in subsection (b)(1), for the taxable year of such certification, andCommentsClose CommentsPermalink





`(2) in the case of any other qualified nuclear expenditure, for the taxable year in which such expenditure is paid or incurred.CommentsClose CommentsPermalink





`(d) Special Rules-CommentsClose CommentsPermalink





`(1) BASIS ADJUSTMENT- For purposes of this subtitle, if a credit is allowed under this section for an expenditure, the increase in basis which would result (but for this subsection) for such expenditure shall be reduced by the amount of the credit allowed under this section.CommentsClose CommentsPermalink





`(2) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed under this chapter for any amount taken into account in determining the credit under this section.CommentsClose CommentsPermalink





`(e) Termination- This section shall not apply to any expenditures paid or incurred in taxable years beginning after December 31, 2019.'.CommentsClose CommentsPermalink





(b) Conforming Amendments- (1) Subsection (b) of section 38 is amended by striking `plus' at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting `, plus', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(32) the ASME Nuclear Certification credit determined under section 45O(a).'.CommentsClose CommentsPermalink





(2) Subsection (a) of section 1016 (relating to adjustments to basis) is amended by striking `and' at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(38) to the extent provided in section 45O(e)(1).'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

TITLE IV--DRILLING

Subtitle A--Tax Provisions

SEC. 401. CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCES TO APPLY TO GAS PRODUCED ONSHORE FROM FORMATIONS MORE THAN 15,000 FEET DEEP.

(a) In General- Subparagraph (B) of section 45K(c)(1) is amended by striking `or' at the end of clause (i), by striking `and' at the end of clause (ii) and inserting `or', and by inserting after clause (ii) the following new clause:CommentsClose CommentsPermalink





`(iii) an onshore well from a formation more than 15,000 feet deep, and'.CommentsClose CommentsPermalink





(b) Eligible Deep Gas Wells- Section 45K is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(h) Eligible Deep Gas Wells- In the case of a well producing qualified fuel described in subsection (c)(1)(B)(iii)--CommentsClose CommentsPermalink





`(1) for purposes of subsection (e)(1)(A), such well shall be treated as drilled before January 1, 1993, if such well is drilled after the date of the enactment of this subsection, andCommentsClose CommentsPermalink





`(2) subsection (e)(2) shall not apply.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 402. TAX CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES AND USED IN ENHANCED OIL AND NATURAL GAS RECOVERY.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 (relating to business credits), as amended by section 302, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 45P. CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES AND USED AS A TERTIARY INJECTANT IN ENHANCED OIL AND NATURAL GAS RECOVERY.

`(a) General Rule- For purposes of section 38, the captured carbon dioxide tertiary injectant credit for any taxable year is an amount equal to the product of--CommentsClose CommentsPermalink





`(1) the credit amount, andCommentsClose CommentsPermalink





`(2) the qualified carbon dioxide captured from industrial sources and used as a tertiary injectant in qualified enhanced oil and natural gas recovery which is attributable to the taxpayer.CommentsClose CommentsPermalink





`(b) Credit Amount- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The credit amount is $0.75 per 1,000 standard cubic feet.CommentsClose CommentsPermalink





`(2) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 2007, there shall be substituted for the $0.75 amount under paragraph (1) an amount equal to the product of--CommentsClose CommentsPermalink





`(A) $0.75, multiplied byCommentsClose CommentsPermalink





`(B) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting `2006' for `1990'.CommentsClose CommentsPermalink





`(c) Qualified Carbon Dioxide- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified carbon dioxide' means carbon dioxide captured from an anthropogenic source that--CommentsClose CommentsPermalink





`(A) would otherwise be released into the atmosphere as industrial emission of greenhouse gas,CommentsClose CommentsPermalink





`(B) is measurable at the source of capture,CommentsClose CommentsPermalink





`(C) is compressed, treated, and transported via pipeline,CommentsClose CommentsPermalink





`(D) is sold as a tertiary injectant in qualified enhanced oil and natural gas recovery, andCommentsClose CommentsPermalink





`(E) is permanently sequestered in geological formations as a result of the enhanced oil and natural gas recovery process.CommentsClose CommentsPermalink





`(2) ANTHROPOGENIC SOURCE- An anthropogenic source of carbon dioxide is an industrial source, including any of the following types of plants, and facilities related to such plant--CommentsClose CommentsPermalink





`(A) a coal and natural gas fired electrical generating power station,CommentsClose CommentsPermalink





`(B) a natural gas processing and treating plant,CommentsClose CommentsPermalink





`(C) an ethanol plant,CommentsClose CommentsPermalink





`(D) a fertilizer plant, andCommentsClose CommentsPermalink





`(E) a chemical plant.CommentsClose CommentsPermalink





`(3) DEFINITIONS-CommentsClose CommentsPermalink





`(A) QUALIFIED ENHANCED OIL AND NATURAL GAS RECOVERY- The term `qualified enhanced oil and natural gas recovery' has the meaning given such term by section 43(c)(2).CommentsClose CommentsPermalink





`(B) TERTIARY INJECTANT- The term `tertiary injectant' has the same meaning as when used within section 193(b)(1).CommentsClose CommentsPermalink





`(d) Other Definitions and Special Rules- For purposes of this section--CommentsClose CommentsPermalink





`(1) ONLY CARBON DIOXIDE CAPTURED WITHIN THE UNITED STATES TAKEN INTO ACCOUNT- Sales shall be taken into account under this section only with respect to qualified carbon dioxide of which is within--CommentsClose CommentsPermalink





`(A) the United States (within the meaning of section 638(1)), orCommentsClose CommentsPermalink





`(B) a possession of the United States (within the meaning of section 638(2)).CommentsClose CommentsPermalink





`(2) RECYCLED CARBON DIOXIDE- The term `qualified carbon dioxide' includes the initial deposit of captured carbon dioxide used as a tertiary injectant. Such term does not include carbon dioxide that is re-captured, recycled, and re-injected as part of the enhanced oil and natural gas recovery process.CommentsClose CommentsPermalink





`(3) CREDIT ATTRIBUTABLE TO TAXPAYER- Any credit under this section shall be attributable to the person that captures, treats, compresses, transports and sells the carbon dioxide for use as a tertiary injectant in enhanced oil and natural gas recovery, except to the extent provided in regulations prescribed by the Secretary.'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 38(b) (relating to general business credit), as amended by section 302, is amended by striking `plus' at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting `, plus', and by adding at the end of following new paragraph:CommentsClose CommentsPermalink





`(33) the captured carbon dioxide tertiary injectant credit determined under section 45P(a).'.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink





`Sec. 45P. Credit for carbon dioxide captured from industrial sources and used as a tertiary injectant in enhanced oil and natural gas recovery.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

Subtitle B--Termination of Congressional Moratoria on Oil and Gas Development on the Outer Continental Shelf

SEC. 411. TERMINATION OF LAWS PROHIBITING EXPENDITURES FOR OIL AND NATURAL GAS LEASING AND PRELEASING ACTIVITIES REGARDING AREAS OF THE OUTER CONTINENTAL SHELF.

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.CommentsClose CommentsPermalink

Subtitle C--Oil and Gas Development on the Coastal Plain of Alaska

SEC. 421. SHORT TITLE.

This subtitle may be cited as the `American-Made Energy and Good Jobs Act'.CommentsClose CommentsPermalink

SEC. 422. DEFINITIONS.

In this subtitle:CommentsClose CommentsPermalink





(1) COASTAL PLAIN- The term `Coastal Plain' means that area described in appendix I to part 37 of title 50, Code of Federal Regulations.CommentsClose CommentsPermalink





(2) SECRETARY- The term `Secretary', except as otherwise provided, means the Secretary of the Interior or the Secretary's designee.CommentsClose CommentsPermalink

SEC. 423. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

(a) In General- The Secretary shall take such actions as are necessary--CommentsClose CommentsPermalink





(1) to establish and implement, in accordance with this subtitle and acting through the Director of the Bureau of Land Management in consultation with the Director of the United States Fish and Wildlife Service, a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain; andCommentsClose CommentsPermalink





(2) to administer the provisions of this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, subsistence resources, and the environment, including, in furtherance of this goal, by requiring the application of the best commercially available technology for oil and gas exploration, development, and production to all exploration, development, and production operations under this subtitle in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased.CommentsClose CommentsPermalink





(b) Repeal-CommentsClose CommentsPermalink





(1) REPEAL- Section 1003 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- The table of contents in section 1 of such Act is amended by striking the item relating to section 1003.CommentsClose CommentsPermalink





(c) Compliance With Requirements Under Certain Other Laws-CommentsClose CommentsPermalink





(1) COMPATIBILITY- For purposes of the National Wildlife Refuge System Administration Act of 1966 (16 U.S.C. 668dd et seq.), the oil and gas leasing program and activities authorized by this section in the Coastal Plain are deemed to be compatible with the purposes for which the Arctic National Wildlife Refuge was established, and no further findings or decisions are required to implement this determination.CommentsClose CommentsPermalink





(2) ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S LEGISLATIVE ENVIRONMENTAL IMPACT STATEMENT- The `Final Legislative Environmental Impact Statement' (April 1987) on the Coastal Plain prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the requirements under the National Environmental Policy Act of 1969 that apply with respect to prelease activities, including actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this subtitle before the conduct of the first lease sale.CommentsClose CommentsPermalink





(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS- Before conducting the first lease sale under this subtitle, the Secretary shall prepare an environmental impact statement under the National Environmental Policy Act of 1969 with respect to the actions authorized by this Act that are not referred to in paragraph (2). Notwithstanding any other law, the Secretary is not required to identify nonleasing alternative courses of action or to analyze the environmental effects of such courses of action. The Secretary shall only identify a preferred action for such leasing and a single leasing alternative, and analyze the environmental effects and potential mitigation measures for those two alternatives. The identification of the preferred action and related analysis for the first lease sale under this subtitle shall be completed within 18 months after the date of enactment of this Act. The Secretary shall only consider public comments that specifically address the Secretary's preferred action and that are filed within 20 days after publication of an environmental analysis. Notwithstanding any other law, compliance with this paragraph is deemed to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this subtitle.CommentsClose CommentsPermalink





(d) Relationship to State and Local Authority- Nothing in this subtitle shall be considered to expand or limit State and local regulatory authority.CommentsClose CommentsPermalink





(e) Special Areas-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary, after consultation with the State of Alaska, the city of Kaktovik, and the North Slope Borough, may designate up to a total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary determines that the Special Area is of such unique character and interest so as to require special management and regulatory protection. The Secretary shall designate as such a Special Area the Sadlerochit Spring area, comprising approximately 4,000 acres.CommentsClose CommentsPermalink





(2) MANAGEMENT- Each such Special Area shall be managed so as to protect and preserve the area's unique and diverse character including its fish, wildlife, and subsistence resource values.CommentsClose CommentsPermalink





(3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY- The Secretary may exclude any Special Area from leasing. If the Secretary leases a Special Area, or any part thereof, for purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the lands comprising the Special Area.CommentsClose CommentsPermalink





(4) DIRECTIONAL DRILLING- Notwithstanding the other provisions of this subsection, the Secretary may lease all or a portion of a Special Area under terms that permit the use of horizontal drilling technology from sites on leases located outside the Special Area.CommentsClose CommentsPermalink





(f) Limitation on Closed Areas- The Secretary's sole authority to close lands within the Coastal Plain to oil and gas leasing and to exploration, development, and production is that set forth in this subtitle.CommentsClose CommentsPermalink





(g) Regulations-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall prescribe such regulations as may be necessary to carry out this subtitle, including rules and regulations relating to protection of the fish and wildlife, their habitat, subsistence resources, and environment of the Coastal Plain, by no later than 15 months after the date of enactment of this Act.CommentsClose CommentsPermalink





(2) REVISION OF REGULATIONS- The Secretary shall periodically review and, if appropriate, revise the rules and regulations issued under subsection (a) to reflect any significant biological, environmental, or engineering data that come to the Secretary's attention.CommentsClose CommentsPermalink

SEC. 424. LEASE SALES.

(a) In General- Lands may be leased pursuant to this subtitle to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act (30 U.S.C. 181 et seq.).CommentsClose CommentsPermalink





(b) Procedures- The Secretary shall, by regulation, establish procedures for--CommentsClose CommentsPermalink





(1) receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subsection (c)) from, a lease sale;CommentsClose CommentsPermalink





(2) the holding of lease sales after such nomination process; andCommentsClose CommentsPermalink





(3) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale.CommentsClose CommentsPermalink





(c) Lease Sale Bids- Bidding for leases under this subtitle shall be by sealed competitive cash bonus bids.CommentsClose CommentsPermalink





(d) Acreage Minimum in First Sale- In the first lease sale under this subtitle, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, taking into consideration nominations received pursuant to subsection (b)(1), but in no case less than 200,000 acres.CommentsClose CommentsPermalink





(e) Timing of Lease Sales- The Secretary shall--CommentsClose CommentsPermalink





(1) conduct the first lease sale under this subtitle within 22 months after the date of the enactment of this Act; andCommentsClose CommentsPermalink





(2) conduct additional sales so long as sufficient interest in development exists to warrant, in the Secretary's judgment, the conduct of such sales.CommentsClose CommentsPermalink

SEC. 425. GRANT OF LEASES BY THE SECRETARY.

(a) In General- The Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section 424 any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary.CommentsClose CommentsPermalink





(b) Subsequent Transfers- No lease issued under this subtitle may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary. Prior to any such approval the Secretary shall consult with, and give due consideration to the views of, the Attorney General.CommentsClose CommentsPermalink

SEC. 426. LEASE TERMS AND CONDITIONS.

An oil or gas lease issued pursuant to this subtitle shall--CommentsClose CommentsPermalink





(1) provide for the payment of a royalty of not less than 12 1/2 percent in amount or value of the production removed or sold from the lease, as determined by the Secretary under the regulations applicable to other Federal oil and gas leases;CommentsClose CommentsPermalink





(2) require that the lessee of lands within the Coastal Plain shall be fully responsible and liable for the reclamation of lands within the Coastal Plain and any other Federal lands that are adversely affected in connection with exploration, development, production, or transportation activities conducted under the lease and within the Coastal Plain by the lessee or by any of the subcontractors or agents of the lessee;CommentsClose CommentsPermalink





(3) provide that the lessee may not delegate or convey, by contract or otherwise, the reclamation responsibility and liability to another person without the express written approval of the Secretary;CommentsClose CommentsPermalink





(4) provide that the standard of reclamation for lands required to be reclaimed under this subtitle shall be, as nearly as practicable, a condition capable of supporting the uses which the lands were capable of supporting prior to any exploration, development, or production activities, or upon application by the lessee, to a higher or better use as approved by the Secretary;CommentsClose CommentsPermalink





(5) include requirements and restrictions to provide for reasonable protection of fish and wildlife, their habitat, subsistence resources, and the environment as determined by the Secretary;CommentsClose CommentsPermalink





(6) prohibit the export of oil produced under the lease; andCommentsClose CommentsPermalink





(7) contain such other provisions as the Secretary determines necessary to ensure compliance with the provisions of this subtitle and the regulations issued under this subtitle.CommentsClose CommentsPermalink

SEC. 427. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

(a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain Activities- The Secretary shall, consistent with the requirements of section 423, administer the provisions of this subtitle through regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other provisions that--CommentsClose CommentsPermalink





(1) ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, and the environment;CommentsClose CommentsPermalink





(2) require the application of the best commercially available technology for oil and gas exploration, development, and production on all new exploration, development, and production operations; andCommentsClose CommentsPermalink





(3) ensure that the maximum amount of surface acreage covered by production and support facilities, including airstrips and any areas covered by gravel berms or piers for support of pipelines, does not exceed 2,000 acres on the Coastal Plain.CommentsClose CommentsPermalink





(b) Site-Specific Assessment and Mitigation- The Secretary shall also require, with respect to any proposed drilling and related activities, that--CommentsClose CommentsPermalink





(1) a site-specific analysis be made of the probable effects, if any, that the drilling or related activities will have on fish and wildlife, their habitat, subsistence resources, and the environment;CommentsClose CommentsPermalink





(2) a plan be implemented to avoid, minimize, and mitigate (in that order and to the extent practicable) any significant adverse effect identified under paragraph (1); andCommentsClose CommentsPermalink





(3) the development of the plan shall occur after consultation with the agency or agencies having jurisdiction over matters mitigated by the plan.CommentsClose CommentsPermalink





(c) Regulations To Protect Coastal Plain Fish and Wildlife Resources, Subsistence Users, and the Environment- Before implementing the leasing program authorized by this subtitle, the Secretary shall prepare and promulgate regulations, lease terms, conditions, restrictions, prohibitions, stipulations, and other measures designed to ensure that the activities undertaken on the Coastal Plain under this subtitle are conducted in a manner consistent with the purposes and environmental requirements of this subtitle.CommentsClose CommentsPermalink





(d) Compliance With Federal and State Environmental Laws and Other Requirements- The proposed regulations, lease terms, conditions, restrictions, prohibitions, and stipulations for the leasing program under this subtitle shall require compliance with all applicable provisions of Federal and State environmental law, and shall also require the following:CommentsClose CommentsPermalink





(1) Standards at least as effective as the safety and environmental mitigation measures set forth in items 1 through 29 at pages 167 through 169 of the `Final Legislative Environmental Impact Statement' (April 1987) on the Coastal Plain.CommentsClose CommentsPermalink





(2) Seasonal limitations on exploration, development, and related activities, where necessary, to avoid significant adverse effects during periods of concentrated fish and wildlife breeding, denning, nesting, spawning, and migration.CommentsClose CommentsPermalink





(3) Design safety and construction standards for all pipelines and any access and service roads, that--CommentsClose CommentsPermalink





(A) minimize, to the maximum extent possible, adverse effects upon the passage of migratory species such as caribou; andCommentsClose CommentsPermalink





(B) minimize adverse effects upon the flow of surface water by requiring the use of culverts, bridges, and other structural devices.CommentsClose CommentsPermalink





(4) Prohibitions on general public access and use on all pipeline access and service roads.CommentsClose CommentsPermalink





(5) Stringent reclamation and rehabilitation requirements, consistent with the standards set forth in this subtitle, requiring the removal from the Coastal Plain of all oil and gas development and production facilities, structures, and equipment upon completion of oil and gas production operations, except that the Secretary may exempt from the requirements of this paragraph those facilities, structures, or equipment that the Secretary determines would assist in the management of the Arctic National Wildlife Refuge and that are donated to the United States for that purpose.CommentsClose CommentsPermalink





(6) Appropriate prohibitions or restrictions on access by all modes of transportation.CommentsClose CommentsPermalink





(7) Appropriate prohibitions or restrictions on sand and gravel extraction.CommentsClose CommentsPermalink





(8) Consolidation of facility siting.CommentsClose CommentsPermalink





(9) Appropriate prohibitions or restrictions on use of explosives.CommentsClose CommentsPermalink





(10) Avoidance, to the extent practicable, of springs, streams, and river system; the protection of natural surface drainage patterns, wetlands, and riparian habitats; and the regulation of methods or techniques for developing or transporting adequate supplies of water for exploratory drilling.CommentsClose CommentsPermalink





(11) Avoidance or minimization of air traffic-related disturbance to fish and wildlife.CommentsClose CommentsPermalink





(12) Treatment and disposal of hazardous and toxic wastes, solid wastes, reserve pit fluids, drilling muds and cuttings, and domestic wastewater, including an annual waste management report, a hazardous materials tracking system, and a prohibition on chlorinated solvents, in accordance with applicable Federal and State environmental law.CommentsClose CommentsPermalink





(13) Fuel storage and oil spill contingency planning.CommentsClose CommentsPermalink





(14) Research, monitoring, and reporting requirements.CommentsClose CommentsPermalink





(15) Field crew environmental briefings.CommentsClose CommentsPermalink





(16) Avoidance of significant adverse effects upon subsistence hunting, fishing, and trapping by subsistence users.CommentsClose CommentsPermalink





(17) Compliance with applicable air and water quality standards.CommentsClose CommentsPermalink





(18) Appropriate seasonal and safety zone designations around well sites, within which subsistence hunting and trapping shall be limited.CommentsClose CommentsPermalink





(19) Reasonable stipulations for protection of cultural and archeological resources.CommentsClose CommentsPermalink





(20) All other protective environmental stipulations, restrictions, terms, and conditions deemed necessary by the Secretary.CommentsClose CommentsPermalink





(e) Considerations- In preparing and promulgating regulations, lease terms, conditions, restrictions, prohibitions, and stipulations under this section, the Secretary shall consider the following:CommentsClose CommentsPermalink





(1) The stipulations and conditions that govern the National Petroleum Reserve-Alaska leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska Final Integrated Activity Plan/Environmental Impact Statement.CommentsClose CommentsPermalink





(2) The environmental protection standards that governed the initial Coastal Plain seismic exploration program under parts 37.31 to 37.33 of title 50, Code of Federal Regulations.CommentsClose CommentsPermalink





(3) The land use stipulations for exploratory drilling on the KIC-ASRC private lands that are set forth in Appendix 2 of the August 9, 1983, agreement between Arctic Slope Regional Corporation and the United States.CommentsClose CommentsPermalink





(f) Facility Consolidation Planning-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall, after providing for public notice and comment, prepare and update periodically a plan to govern, guide, and direct the siting and construction of facilities for the exploration, development, production, and transportation of Coastal Plain oil and gas resources.CommentsClose CommentsPermalink





(2) OBJECTIVES- The plan shall have the following objectives:CommentsClose CommentsPermalink





(A) Avoiding unnecessary duplication of facilities and activities.CommentsClose CommentsPermalink





(B) Encouraging consolidation of common facilities and activities.CommentsClose CommentsPermalink





(C) Locating or confining facilities and activities to areas that will minimize impact on fish and wildlife, their habitat, and the environment.CommentsClose CommentsPermalink





(D) Utilizing existing facilities wherever practicable.CommentsClose CommentsPermalink





(E) Enhancing compatibility between wildlife values and development activities.CommentsClose CommentsPermalink





(g) Access to Public Lands- The Secretary shall--CommentsClose CommentsPermalink





(1) manage public lands in the Coastal Plain subject to subsections (a) and (b) of section 811 of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3121); andCommentsClose CommentsPermalink





(2) ensure that local residents shall have reasonable access to public lands in the Coastal Plain for traditional uses.CommentsClose CommentsPermalink

SEC. 428. EXPEDITED JUDICIAL REVIEW.

(a) Filing of Complaint-CommentsClose CommentsPermalink





(1) DEADLINE- Subject to paragraph (2), any complaint seeking judicial review of any provision of this Act or any action of the Secretary under this subtitle shall be filed--CommentsClose CommentsPermalink





(A) except as provided in subparagraph (B), within the 90-day period beginning on the date of the action being challenged; orCommentsClose CommentsPermalink





(B) in the case of a complaint based solely on grounds arising after such period, within 90 days after the complainant knew or reasonably should have known of the grounds for the complaint.CommentsClose CommentsPermalink





(2) VENUE- Any complaint seeking judicial review of any provision of this subtitle or any action of the Secretary under this subtitle may be filed only in the United States Court of Appeals for the District of Columbia.CommentsClose CommentsPermalink





(3) LIMITATION ON SCOPE OF CERTAIN REVIEW- Judicial review of a Secretarial decision to conduct a lease sale under this subtitle, including the environmental analysis thereof, shall be limited to whether the Secretary has complied with the terms of this subtitle and shall be based upon the administrative record of that decision. The Secretary's identification of a preferred course of action to enable leasing to proceed and the Secretary's analysis of environmental effects under this subtitle shall be presumed to be correct unless shown otherwise by clear and convincing evidence to the contrary.CommentsClose CommentsPermalink





(b) Limitation on Other Review- Actions of the Secretary with respect to which review could have been obtained under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.CommentsClose CommentsPermalink

SEC. 429. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

(a) In General- Notwithstanding any other provision of law, of the amount of adjusted bonus, rental, and royalty revenues from Federal oil and gas leasing and operations authorized under this subtitle--CommentsClose CommentsPermalink





(1) 25 percent shall be paid to the State of Alaska; andCommentsClose CommentsPermalink





(2) except as provided in section 432(d), the balance shall be deposited into the Treasury as miscellaneous receipts.CommentsClose CommentsPermalink





(b) Payments to Alaska- Payments to the State of Alaska under this section shall be made semiannually.CommentsClose CommentsPermalink

SEC. 430. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

(a) In General- The Secretary shall issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas--CommentsClose CommentsPermalink





(1) except as provided in paragraph (2), under section 28 of the Mineral Leasing Act (30 U.S.C. 185), without regard to title XI of the Alaska National Interest Lands Conservation Act (30 U.S.C. 3161 et seq.); andCommentsClose CommentsPermalink





(2) under title XI of the Alaska National Interest Lands Conservation Act (30 U.S.C. 3161 et seq.), for access authorized by sections 1110 and 1111 of that Act (16 U.S.C. 3170 and 3171).CommentsClose CommentsPermalink





(b) Terms and Conditions- The Secretary shall include in any right-of-way or easement issued under subsection (a) such terms and conditions as may be necessary to ensure that transportation of oil and gas does not result in a significant adverse effect on the fish and wildlife, subsistence resources, their habitat, and the environment of the Coastal Plain, including requirements that facilities be sited or designed so as to avoid unnecessary duplication of roads and pipelines.CommentsClose CommentsPermalink





(c) Regulations- The Secretary shall include in regulations under section 423(g) provisions granting rights-of-way and easements described in subsection (a) of this section.CommentsClose CommentsPermalink

SEC. 431. CONVEYANCE.

In order to maximize Federal revenues by removing clouds on title to lands and clarifying land ownership patterns within the Coastal Plain, the Secretary, notwithstanding the provisions of section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall convey--CommentsClose CommentsPermalink





(1) to the Kaktovik Inupiat Corporation the surface estate of the lands described in paragraph 1 of Public Land Order 6959, to the extent necessary to fulfill the Corporation's entitlement under sections 12 and 14 of the Alaska Native Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance with the terms and conditions of the Agreement between the Department of the Interior, the United States Fish and Wildlife Service, the Bureau of Land Management, and the Kaktovik Inupiat Corporation effective January 22, 1993; andCommentsClose CommentsPermalink





(2) to the Arctic Slope Regional Corporation the remaining subsurface estate to which it is entitled pursuant to the August 9, 1983, agreement between the Arctic Slope Regional Corporation and the United States of America.CommentsClose CommentsPermalink

SEC. 432. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

(a) Financial Assistance Authorized-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary may use amounts available from the Coastal Plain Local Government Impact Aid Assistance Fund established by subsection (d) to provide timely financial assistance to entities that are eligible under paragraph (2) and that are directly impacted by the exploration for or production of oil and gas on the Coastal Plain under this subtitle.CommentsClose CommentsPermalink





(2) ELIGIBLE ENTITIES- The North Slope Borough, the City of Kaktovik, and any other borough, municipal subdivision, village, or other community in the State of Alaska that is directly impacted by exploration for, or the production of, oil or gas on the Coastal Plain under this Act, as determined by the Secretary, shall be eligible for financial assistance under this section.CommentsClose CommentsPermalink





(b) Use of Assistance- Financial assistance under this section may be used only for--CommentsClose CommentsPermalink





(1) planning for mitigation of the potential effects of oil and gas exploration and development on environmental, social, cultural, recreational, and subsistence values;CommentsClose CommentsPermalink





(2) implementing mitigation plans and maintaining mitigation projects;CommentsClose CommentsPermalink





(3) developing, carrying out, and maintaining projects and programs that provide new or expanded public facilities and services to address needs and problems associated with such effects, including fire-fighting, police, water, waste treatment, medivac, and medical services; andCommentsClose CommentsPermalink





(4) establishment of a coordination office, by the north slope borough, in the City of Kaktovik, which shall--CommentsClose CommentsPermalink





(A) coordinate with and advise developers on local conditions, impact, and history of the areas utilized for development; andCommentsClose CommentsPermalink





(B) provide to the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate an annual report on the status of coordination between developers and the communities affected by development.CommentsClose CommentsPermalink





(c) Application-CommentsClose CommentsPermalink





(1) IN GENERAL- Any community that is eligible for assistance under this section may submit an application for such assistance to the Secretary, in such form and under such procedures as the Secretary may prescribe by regulation.CommentsClose CommentsPermalink





(2) NORTH SLOPE BOROUGH COMMUNITIES- A community located in the North Slope Borough may apply for assistance under this section either directly to the Secretary or through the North Slope BoroughCommentsClose CommentsPermalink





(3) APPLICATION ASSISTANCE- The Secretary shall work closely with and assist the North Slope Borough and other communities eligible for assistance under this section in developing and submitting applications for assistance under this section.CommentsClose CommentsPermalink





(d) Establishment of Fund-CommentsClose CommentsPermalink





(1) IN GENERAL- There is established in the Treasury the Coastal Plain Local Government Impact Aid Assistance Fund.CommentsClose CommentsPermalink





(2) USE- Amounts in the fund may be used only for providing financial assistance under this section.CommentsClose CommentsPermalink





(3) DEPOSITS- Subject to paragraph (4), there shall be deposited into the fund amounts received by the United States as revenues derived from rents, bonuses, and royalties from Federal leases and lease sales authorized under this subtitle.CommentsClose CommentsPermalink





(4) LIMITATION ON DEPOSITS- The total amount in the fund may not exceed $11,000,000.CommentsClose CommentsPermalink





(5) INVESTMENT OF BALANCES- The Secretary of the Treasury shall invest amounts in the fund in interest bearing government securities.CommentsClose CommentsPermalink





(e) Authorization of Appropriations- To provide financial assistance under this section there is authorized to be appropriated to the Secretary from the Coastal Plain Local Government Impact Aid Assistance Fund $5,000,000 for each fiscal year.CommentsClose CommentsPermalink