[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2290 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2290

 To provide for affordable natural gas by rebalancing domestic supply 
 and demand and to promote the production of natural gas from domestic 
                               resources.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2006

  Mr. Pryor (for himself, Mr. Warner, and Mr. Talent) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To provide for affordable natural gas by rebalancing domestic supply 
 and demand and to promote the production of natural gas from domestic 
                               resources.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Reliable and 
Affordable Natural Gas Energy Reform Act of 2006''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Natural gas leases.
Sec. 3. Determination of adjacent zones and planning areas.
Sec. 4. Leasing moratoria in the OCS.
Sec. 5. Option to petition for extension of withdrawal from leasing 
                            within certain areas of the outer 
                            Continental Shelf.
Sec. 6. State requests to examine energy areas.
Sec. 7. Availability of certain areas for leasing.
Sec. 8. Neighboring State concurrence.
Sec. 9. Revenue sharing from moratorium areas.
Sec. 10. Revenue sharing from nonmoratorium areas.
Sec. 11. Repeal of requirement to conduct comprehensive inventory of 
                            OCS natural gas resources.
Sec. 12. Leases for areas located within 100 miles off California or 
                            Florida.
Sec. 13. Repurchase of certain leases.

SEC. 2. NATURAL GAS LEASES.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended by adding at the end the following:
    ``(q) Natural Gas Leases.--
            ``(1) In general.--Beginning with the 5-year outer 
        Continental Shelf oil and gas leasing program for 2007 through 
        2012, the Secretary may issue a lease under this section that 
        authorizes development and production of gas and associated 
        condensate and other hydrocarbon liquids in a moratorium area 
        (as defined in section 18(j)(1)) in accordance with regulations 
        issued under paragraph (2).
            ``(2) Regulations.--Not later than October 1, 2006, the 
        Secretary shall issue regulations that, for purposes of this 
        section--
                    ``(A) define `natural gas' in a manner that 
                includes--
                            ``(i) hydrocarbons and other substances in 
                        a gaseous state at atmospheric pressure and a 
                        temperature of 60 degrees Fahrenheit;
                            ``(ii) liquids that condense (gas liquids) 
                        from natural gas in the process of treatment, 
                        dehydration, decompression, or compression 
                        prior to the point for measuring volume and 
                        quality of the production established by the 
                        Secretary, acting through the Minerals 
                        Management Service;
                            ``(iii) other associated hydrocarbon 
                        liquids if the predominant component is natural 
                        gas and gas liquids; and
                            ``(iv) natural gas liquefied for 
                        transportation;
                    ``(B) provide that natural gas leases shall contain 
                the same rights and obligations as oil and gas leases;
                    ``(C) provide that, in reviewing the adequacy of 
                bids for natural gas leases, the Secretary, acting 
                through the Minerals Management Service, shall exclude 
                the value of any crude oil estimated to be discovered 
                within the boundaries of the leasing area;
                    ``(D) provide for cancellation of a natural gas 
                lease, with payment of the fair value of the lease 
                rights canceled, if the Secretary determines that 
                hydrocarbons other than natural gas and natural gas 
                liquids will be the predominant production from the 
                lease; and
                    ``(E) provide that, at the request and with the 
                consent of the Governor of the State adjacent to the 
                lease area, as determined under section 18(j)(2)(B)(i), 
                and with the consent of the lessee, an existing natural 
                gas lease may be converted, without an increase in the 
                rental royalty rate and without further payment in the 
                nature of a lease bonus, to a lease under subsection 
                (b), in accordance with a process, to be established by 
                the Secretary, that requires--
                            ``(i) consultation by the Secretary with 
                        the Governor of the State and the lessee with 
                        respect to the operating conditions of the 
                        lease, taking into consideration environmental 
                        resource conservation and recovery, economic 
                        factors, and other factors, as the Secretary 
                        determines to be relevant; and
                            ``(ii) compliance with the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4321 et seq.).
            ``(3) Effect of other laws.--Any Federal law (including 
        regulations) that applies to an oil and gas lease on the outer 
        Continental Shelf shall apply to a natural gas lease issued 
        under this subsection.''.

SEC. 3. 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--
            (1) by designating the first, second, and third sentences 
        as clause (i), (iii), and (iv), respectively;
            (2) in clause (i) (as so designated), by striking ``, and 
        the President'' and all that follows through the end of the 
        sentence; and
            (3) by inserting after clause (i) (as so designated) the 
        following:
    ``(ii) The lines extending seaward and defining the Adjacent Zone 
of each State, and each Planning Area of the outer Continental Shelf, 
shall be as indicated on the maps for each outer Continental Shelf 
region entitled--
            ``(I) `Alaska OCS Region State Adjacent Zone and OCS 
        Planning Areas';
            ``(II) `Pacific OCS Region State Adjacent Zones and OCS 
        Planning Areas';
            ``(III) `Gulf of Mexico OCS Region State Adjacent Zones and 
        OCS Planning Areas'; and
            ``(IV) `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. 4. LEASING MORATORIA IN THE OCS.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended by adding at the end the following:
    ``(i) Leasing Within Certain Areas of the Outer Continental 
Shelf.--
            ``(1) Prohibition against leasing.--Except as otherwise 
        provided in this subsection and subsection (k), prior to June 
        30, 2012, the Secretary shall not offer for leasing for natural 
        gas--
                    ``(A) any area withdrawn from disposition by 
                leasing in the Atlantic OCS Region, the Pacific OCS 
                Region, or the Gulf of Mexico OCS Region Eastern 
                Planning Area, as depicted on the applicable map 
                described in subparagraph (B), under the `Memorandum on 
                Withdrawal of Certain Areas of the United States Outer 
                Continental Shelf from Leasing Disposition', from 34 
                Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; or
                    ``(B) any area not withdrawn under that Memorandum 
                that is included within--
                            ``(i) 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
                            ``(ii) 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.--
                    ``(A) In general.--The withdrawal of any area from 
                disposition by leasing under the `Memorandum on 
                Withdrawal of Certain Areas of the United States Outer 
                Continental Shelf from Leasing Disposition', from 34 
                Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, 
                shall have no force or effect with respect to any area 
                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.
                    ``(B) Additional areas.--The Secretary shall amend 
                the 5-year outer Continental Shelf oil and gas leasing 
                program for 2002 through 2007 to include--
                            ``(i) the areas added to the Gulf of Mexico 
                        OCS Region Central Planning Area by this 
                        paragraph to the extent that the areas were 
                        included within the original boundaries of 
                        proposed Lease Sale 181; and
                            ``(ii) 2 sales in such additional areas, 1 
                        of which shall be held not later than January 
                        2007 and 1 of which shall be held not later 
                        than June 2007.
                    ``(C) Environmental impact statement.--The final 
                environmental impact statement prepared for an area 
                covered by this paragraph for Lease Sale 181 shall be 
                considered sufficient for all purposes for each lease 
                sale in which the area is offered for lease during the 
                5-year outer Continental Shelf oil and gas leasing 
                program for 2002 through 2007 without need for 
                supplementation.
                    ``(D) Partial tracts.--
                            ``(i) Part within planning area.--Any tract 
                        only partially added to the Gulf of Mexico OCS 
                        Region Central Planning Area by this paragraph 
                        shall be eligible for leasing of the part of 
                        the tract that is included within the Gulf of 
                        Mexico OCS Region Central Planning Area.
                            ``(ii) Part outside planning area.--The 
                        remainder of the tract that lies outside of the 
                        Gulf of Mexico OCS Region Central Planning Area 
                        may be developed and produced by the lessee of 
                        the partial tract using extended reach or 
                        similar drilling from a location on a leased 
                        area.''.

SEC. 5. OPTION TO PETITION FOR EXTENSION OF WITHDRAWAL FROM LEASING 
              WITHIN CERTAIN AREAS OF THE OUTER CONTINENTAL SHELF.

    (a) Option to Petition.--
            (1) In general.--The Governor of a State may submit to the 
        Secretary a petition requesting that the Secretary extend for a 
        period of time described in paragraph (2) the withdrawal from 
        leasing for all or part of any area within the Adjacent Zone of 
        the State within 125 miles of the coastline of the State.
            (2) Length of extension.--
                    (A) In general.--The period of time requested in a 
                petition submitted under paragraph (1) shall not exceed 
                5 years for each petition.
                    (B) Limitation.--The Secretary shall not grant a 
                petition submitted under paragraph (1) that extends the 
                remaining period of a withdrawal of an area from 
                leasing for a total of more than 10 years.
            (3) Multiple petitions.--A State may petition multiple 
        times for a particular area, but not more than once per 
        calendar year for any particular area.
            (4) Contents of petition.--A petition submitted under 
        paragraph (1) may--
                    (A) apply to natural gas leasing; and
                    (B) request some areas to be withdrawn from all 
                leasing and some areas only withdrawn from one type of 
                leasing.
            (5) Alabama adjacent zone.--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'', dated September 2005 and on file in the Office of the 
        Director, Minerals Management Service, may be made by either 
        the Governor of Alabama or the Governor of Florida.
    (b) Action by Secretary.--Not later than 90 days after receipt of a 
petition submitted under subsection (a), the Secretary shall approve 
the petition, unless the Secretary determines that extending the 
withdrawal from leasing would likely have an adverse effect on the 
availability of necessary energy resources, which would contribute to 
significant economic hardship on a national or regional basis, or would 
otherwise not be in the national interest.
    (c) Failure to Act.--If the Secretary fails to approve or deny a 
petition in accordance with subsection (b), the petition shall be 
considered to be approved 90 days after the date on which the Secretary 
received the petition.

SEC. 6. STATE REQUESTS TO EXAMINE ENERGY AREAS.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) (as amended by section 4) is amended by adding at the end the 
following:
    ``(j) State Requests to Examine Energy Areas.--
            ``(1) Definitions.--In this subsection through subsection 
        (m):
                    ``(A) Lease.--The term `lease' includes a natural 
                gas lease under section 8(q).
                    ``(B) Moratorium area.--The term `moratorium area' 
                means--
                            ``(i) any area withdrawn from disposition 
                        by leasing by the `Memorandum on Withdrawal of 
                        Certain Areas of the United States Outer 
                        Continental Shelf from Leasing Disposition', 
                        from 34 Weekly Comp. Pres. Doc. 1111, dated 
                        June 12, 1998; and
                            ``(ii) any area of the outer Continental 
                        Shelf as to which Congress has denied the use 
                        of appropriated funds or other means for 
                        preleasing, leasing, or related activities.
            ``(2) Resource estimates.--
                    ``(A) Requests.--At any time, the Governor of an 
                affected State (acting on behalf of the State) may 
                request the Secretary to provide a current estimate of 
                proven and potential natural gas resources that may 
                result, and resulting State revenues, in any moratorium 
                area (or any part of the moratorium area the Governor 
                identifies) adjacent to, or lying seaward of the 
                coastline of, that State.
                    ``(B) Response of secretary.--Not later than 45 
                days after the date on which the Governor of a State 
                requests an estimate under subparagraph (A), the 
                Secretary shall provide--
                            ``(i) a current estimate of proven and 
                        potential natural gas resources in any 
                        moratorium areas off the shore of a State;
                            ``(ii) an estimate of potential revenues 
                        that could be shared under this Act if 
                        resources were developed and produced; and
                            ``(iii) an explanation of the planning 
                        processes that could lead to the leasing, 
                        exploration, development, and production of the 
                        natural gas resources within the area 
                        identified.''.

SEC. 7. AVAILABILITY OF CERTAIN AREAS FOR LEASING.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) (as amended by section 6) is amended by adding at the end the 
following:
    ``(k) Availability of Certain Areas for Leasing.--
            ``(1) Petition.--
                    ``(A) In general.--On consideration of the 
                information received from the Secretary, the Governor 
                (acting on behalf of the State of the Governor) may 
                submit to the Secretary a petition requesting that the 
                Secretary make available for leasing any portion of a 
                moratorium area in the Adjacent Zone of the State.
                    ``(B) Contents.--In a petition under subparagraph 
                (A), a Governor may request that an area described in 
                subparagraph (A) be made available for leasing under 
                subsection (b) or (q), or both, of section 8.
            ``(2) Action by secretary.--Not later than 90 days after 
        the date of receipt of a petition under paragraph (1), the 
        Secretary shall approve the petition unless the Secretary 
        determines that leasing in the affected area presents a 
        significant likelihood of incidents associated with the 
        development of resources that would cause serious harm or 
        damage to the marine resources of the area or of an adjacent 
        State.
            ``(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 as of the date that is 90 
        days after the date of receipt of the petition.
            ``(4) Treatment.--Notwithstanding any other provision of 
        this section, not later than 180 days after the date on which a 
        petition is approved, or considered to be approved, under 
        paragraph (2) or (3), the Secretary shall--
                    ``(A) treat the petition of the Governor under 
                paragraph (1) as a proposed revision to a leasing 
                program under this section; and
                    ``(B) except as provided in paragraph (5), expedite 
                the revision of the 5-year outer Continental Shelf oil 
                and gas leasing program in effect as of that date to 
                include any lease sale for any area covered by the 
                petition.
            ``(5) Inclusion in subsequent plans.--
                    ``(A) In general.--If there are less than 18 months 
                remaining in the 5-year outer Continental Shelf oil and 
                gas leasing program described in paragraph (4)(B), the 
                Secretary, without consultation with any State, shall 
                include the areas covered by the petition in lease 
                sales under the subsequent 5-year outer Continental 
                Shelf oil and gas leasing program.
                    ``(B) Environmental assessment.--Before modifying a 
                5-Year outer Continental Shelf oil and gas leasing 
                program under subparagraph (A), the Secretary shall 
                complete an environmental assessment that describes any 
                anticipated environmental effect of leasing in the area 
                covered by the petition.
            ``(6) Spending limitations.--Any Federal spending 
        limitation with respect to preleasing, leasing, or a related 
        activity in an area made available for leasing under this 
        subsection shall terminate as of the date on which the petition 
        of the Governor relating to the area is approved, or considered 
        to be approved, under paragraph (2) or (3).
            ``(7) Application.--This subsection shall not apply to--
                    ``(A) any area designated as a national marine 
                sanctuary or a national wildlife refuge;
                    ``(B) any area not included in the outer 
                Continental Shelf;
                    ``(C) the Great Lakes (as defined in section 
                118(a)(3) of the Federal Water Pollution Control Act 
                (33 U.S.C. 1268(a)(3));
                    ``(D) the eastern coast of the State of Florida; or
                    ``(E) Bristol Bay.
            ``(8) Great lakes.--The Great Lakes (as defined in section 
        118(a)(3) of the Federal Water Pollution Control Act (33 U.S.C. 
        1268(a)(3)))--
                    ``(A) shall not be considered part of the outer 
                Continental Shelf under this Act; and
                    ``(B) shall not be subject to production.''.

SEC. 8. NEIGHBORING STATE CONCURRENCE.

    (a) Notice.--The Secretary of the Interior shall provide notice to 
a neighboring State of any proposed lease of natural gas if the lease 
would be located within 20 miles of the nearest point on the coastline 
of the State.
    (b) Objection.--Not later than 30 days after receiving the notice, 
the Governor of the State may object to the issuance of the lease on 
grounds that the lease presents a significant risk to environmental and 
economic resources of the State.
    (c) Secretary Review.--If the Secretary, after review of the 
objection and consultation with the adjacent State, concurs that the 
lease presents a significant risk described in subsection (b), and that 
the risk cannot be reasonably mitigated--
            (1) the Secretary shall not approve an exploration plan for 
        the lease; and
            (2) the lease shall be eligible for repurchase in 
        accordance with section 13.
    (d) Nonapplicability.--This section does not apply to a State 
covered by section 12.

SEC. 9. REVENUE SHARING FROM MORATORIUM AREAS.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) (as amended by section 7) is amended by adding at the end the 
following:
    ``(l) Revenue Sharing From Moratorium Areas.--
            ``(1) Bonus bids.--If the Governor of a State requests the 
        Secretary to allow natural gas leasing in a moratorium area and 
        the Secretary allows the leasing, the State shall, without 
        further appropriation or action, receive 50 percent of any 
        bonus bid paid for leasing rights in the area.
            ``(2) Post leasing revenues.--In addition to bonus bids 
        under paragraph (1), a State described in paragraph (1) shall 
        receive, from leasing of the area, 50 percent of--
                    ``(A) any lease rental minimum royalty;
                    ``(B) any royalty proceeds from a sale of royalties 
                taken in kind by the Secretary; and
                    ``(C) any other revenues from a bidding system 
                under section 8.
            ``(3) Conservation royalties.--After making distributions 
        in accordance with paragraphs (1) and (2) and in accordance 
        with section 31, the Secretary shall, without further 
        appropriation or action, distribute a conservation royalty 
        equal to 12.5 percent of Federal royalty revenues derived from 
        an area leased under this section in an amount not to exceed 
        $1,250,000,000 from all areas leased under this section for any 
        year, into the following programs that distribute conservation 
        funds to States:
                    ``(A) The Federal aid to wildlife restoration fund 
                established under section 3(a)(1) of the Pittman-
                Robertson Wildlife Restoration Act (16 U.S.C. 
                669b(a)(1)).
                    ``(B) The land and water conservation fund 
                established under section 2 of the Land and Water 
                Conservation Fund Act of 1965 (16 U.S.C. 460l-5) to 
                provide financial assistance to States under section 6 
                of that Act (16 U.S.C. 460l-8).''.

SEC. 10. REVENUE SHARING FROM NONMORATORIUM AREAS.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) (as amended by section 9) is amended by adding at the end the 
following:
    ``(m) Revenue Sharing From Nonmoratorium Area.--Revenues from 
production that occurs beginning on the date that is 5 years after the 
date of enactment of this subsection in an area that is not a 
moratorium area shall be distributed in the same proportion and for the 
same uses as provided in subsection (l).''.

SEC. 11. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF 
              OCS NATURAL GAS RESOURCES.

    Section 357 of the Energy Policy Act of 2005 (42 U.S.C. 15912) is 
repealed.

SEC. 12. LEASES FOR AREAS LOCATED WITHIN 100 MILES OFF CALIFORNIA OR 
              FLORIDA.

    (a) In General.--Effective beginning on the date that is 180 days 
after the date of enactment of this Act, the lessee of a natural gas 
lease in existence on the date of enactment of this Act for an area 
located completely within 100 miles of the coastline and within the 
California or Florida Adjacent Zones shall have the option, without 
compensation, of exchanging the lease for a new natural gas lease 
having a primary term of 5 years.
    (b) Tracts.--For the area subject to the new lease, the lessee may 
select any unleased tract--
            (1) at least part of which is located within the area 
        between 100 and 125 miles from the coastline; and
            (2) that is located--
                    (A) completely beyond 100 miles from the coastline; 
                and
                    (B) within the same Adjacent Zone of the adjacent 
                State as the lease being exchanged.
    (c) Administrative Process.--
            (1) In general.--The Secretary of the Interior (referred to 
        in this section as the ``Secretary'') shall establish a 
        reasonable administrative process through which a lessee may 
        exercise the option of the lessee to exchange a natural gas 
        lease for a new natural gas lease in accordance with this 
        section.
            (2) Relationship to other laws.--An exchange of leases 
        conducted in accordance with this section (including the 
        issuance of a new lease)--
                    (A) shall not be considered to be a major Federal 
                action for purposes of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
                    (B) shall be considered in compliance with the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
                seq.).
            (3) Withdrawal.--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 (43 U.S.C. 
        1331 et seq.) or otherwise unavailable for leasing under any 
        other law.
    (d) 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 outer Continental Shelf tract 
covered by the new lease as apply on the date of issuance of the new 
lease.
    (e) Priority.--
            (1) Bonus bid.--The Secretary shall give priority in the 
        lease exchange process under this section based on the amount 
        of the original bonus bid paid for the issuance of each lease 
        to be exchanged.
            (2) Exchange of partial tracts for full tracts.--The 
        Secretary shall allow leases covering partial tracts to be 
        exchanged for leases covering full tracts under this section 
        conditioned on payment of additional bonus bids on a per-acre 
        basis, as determined based on the average per acre of the 
        original bonus bid per acre for the partial tract being 
        exchanged.
    (f) Exploration Plans.--An exploration plan submitted to the 
Secretary during the period beginning on the date of enactment of this 
Act and ending June 30, 2012, for a natural gas lease for an area 
wholly within 100 miles of the coastline within the California Adjacent 
Zone or the Florida Adjacent Zone shall not be treated as received by 
the Secretary until the earlier of--
            (1) July 1, 2012; or
            (2) the date of approval of a petition by the Adjacent 
        State for natural gas leasing covering the area within which is 
        located the area subject to the natural gas lease.
    (g) 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.
    (h) Conditions for Lease Exchange.--For a lease to be cancelled and 
exchanged under this section--
            (1) each lessee holding an interest in the lease must 
        consent to cancellation of the leasehold interest of the 
        lessee;
            (2) each lessee must waive any rights to bring any 
        litigation against the United States related to the 
        transaction; and
            (3) the plugging and abandonment requirements for any well 
        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.
    (i) Area Partially Within 100 Miles of Florida.--A natural gas 
lease in existence on the date of enactment of this Act for an area 
located partially within 100 miles of the coastline within the Florida 
Adjacent Zone may only be developed and produced under this section 
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.

SEC. 13. REPURCHASE OF CERTAIN LEASES.

    (a) In General.--The Secretary of the Interior (referred to in this 
section as the ``Secretary'') shall repurchase and cancel any Federal 
natural gas lease in the outer Continental Shelf, if the Secretary 
finds that the lease qualifies for repurchase and cancellation under 
the regulations authorized by this section.
    (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall publish a final 
        regulation prescribing 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, in a manner consistent with this 
        subsection.
            (2) Finding.--The Secretary shall repurchase and cancel a 
        lease under this section on a written request by the lessee and 
        a finding by the Secretary that--
                    (A) a request by the lessee for a required permit 
                or other approval complied with applicable law (other 
                than the Coastal Zone Management Act of 1972 (16 U.S.C. 
                1451 et seq.)) and terms of the lease and the 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--
                            (i) within a time period established by law 
                        (including regulations) for the requested 
                        action, whether advisory or mandatory; or
                            (ii) if no such period is established, 
                        within 180 days after receipt of the request; 
                        or
                    (C) a Federal agency attached a condition of 
                approval, without agreement by the lessee, to a 
                required permit or other approval that--
                            (i) was not required by Federal law 
                        (including regulations) in effect on the date 
                        of lease issuance; or
                            (ii) was not specifically allowed under the 
                        terms of the lease.
            (3) Exhaustion of remedies.--A lessee shall not be required 
        to exhaust administrative remedies regarding a permit request, 
        administrative appeal, or other required request for approval 
        under this section.
            (4) Deadline.--The Secretary shall make a final agency 
        decision on a request by a lessee under this section not later 
        than 180 days after receipt of the request.
            (5) Compensation.--
                    (A) Amount.--The amount of compensation to a lessee 
                to repurchase and cancel a lease under this section 
                shall be equal to the amount that a lessee would 
                receive in a restitution case for a material breach of 
                contract.
                    (B) Form.--The compensation shall be in the form of 
                a check or electronic transfer from the Secretary of 
                the Treasury from funds deposited into miscellaneous 
                receipts under the authority of the Act that authorized 
                the issuance of the lease being repurchased.
                    (C) Deadline.--The failure of the Secretary to make 
                a final agency decision on a request by a lessee under 
                this section in accordance with paragraph (4) shall 
                result in a percent increase in the compensation due to 
                the lessee if the lease is ultimately repurchased.
    (c) Other Rights.--This section does not affect any other right the 
lessee may have in the absence of this section.
                                 <all>