Sets forth provisions for the making of transition payments for FY2008-FY2012 to eligible states, U.S. territories, and counties previously receiving payments under the Secure Rural Schools and Community Self-Determination Act of 2000.

Sets forth special requirements with regard to transition payments for FY2008-FY2011 applicable to the states of California, Oregon, and Washington and eligible counties in those states in lieu of the payments that otherwise would have been made under the above transition payment provisions.

Directs the Secretaries of the Interior and Agriculture to promulgate regulations to establish new fees or fee increases for commercial activities on federal lands, National Forest System lands, and National Grasslands administered by the respective Secretary.

(Sec. 3) Sets forth provisions for the making of transition payments for FY2008-FY2011 to eligible states, U.S. territories, and counties previously receiving payments under the Secure Rural Schools and Community Self-Determination Act of 2000.

Sets forth provisions concerning the election of payment amounts by affected counties.

Requires each eligible county receiving a payment or a portion of a state's payment to reserve not less than 15% of the amount received for expenditure in accordance with titles II (Special Projects on Federal Lands) and III (County Projects) of such Act.

Extends the authority to initiate such projects under titles II and III through September 30, 2012.

(Sec. 4) Sets forth special requirements with regard to transition payments for FY2008-FY2011 applicable to the states of California, Louisiana, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, and Washington and eligible counties in those states in lieu of the payments that otherwise would have been made under the above transition payment provisions.

Requires each eligible county receiving such a transition payment or a portion of such payment as prescribed under such requirements, to reserve not less than 15% of the amount received for expenditure in accordance with titles II and III as required above.

(Sec. 5) Sets forth provisions for the establishment of conservation of resources fees for producing and nonproducing federal oil and gas leases in the Gulf of Mexico.

Requires the Secretary of the Interior to agree to a request by any lessee to amend any lease for Central and Western Gulf of Mexico tracts issued during the period of January 1, 1998, through December 31, 1999, to incorporate price thresholds applicable to royalty suspension provisions, or amend existing price thresholds, of a specified amount per barrel for oil and per million Btu for natural gas.

(Sec. 6) Expresses the sense of Congress regarding the distribution of Secure Rural Schools transition payments to eligible counties under this Act.