[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 503 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 503

 To authorize the exploration, leasing, development, and production of 
oil and gas in and from the western portion of the Coastal Plain of the 
   State of Alaska without surface occupancy, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2009

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

_______________________________________________________________________

                                 A BILL


 
 To authorize the exploration, leasing, development, and production of 
oil and gas in and from the western portion of the Coastal Plain of the 
   State of Alaska without surface occupancy, 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 ``No Surface Occupancy Western Arctic 
Coastal Plain Domestic Energy Security Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastal plain.--The term ``Coastal Plain'' means the 
        area identified as the ``1002 Coastal Plain Area'' on the map.
            (2) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to--
                    (A) section 1002 of the Alaska National Interest 
                Lands Conservation Act (16 U.S.C. 3142); and
                    (B) section 102(2)(C) of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (3) Map.--The term ``map'' means the map entitled ``Arctic 
        National Wildlife Refuge'', dated September 2005, and prepared 
        by the United States Geological Survey.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior (or the designee of the Secretary), acting 
        through the Director of the Bureau of Land Management, in 
        consultation with the Director of the United States Fish and 
        Wildlife Service and in coordination with a State coordinator 
        appointed by the Governor of the State of Alaska.
            (5) Western coastal plain.--The term ``Western Coastal 
        Plain'' means that area of the Coastal Plain--
                    (A) that borders the land of the State of Alaska to 
                the west and State of Alaska offshore waters of the 
                Beaufort Sea on the north; and
                    (B) from which the Secretary, in the sole 
                discretion of the Secretary, finds oil and gas can be 
                produced through the use of horizontal drilling or 
                other subsurface technology from sites outside or 
                underneath the surface of the Coastal Plain.

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

    (a) In General.--
            (1) Authorization.--There is authorized the exploration, 
        leasing, development, and production of oil and gas from the 
        Western Coastal Plain.
            (2) Actions.--The Secretary shall take such actions as are 
        necessary--
                    (A) to establish and implement, in accordance with 
                this Act, a competitive oil and gas leasing program 
                that will result in an environmentally sound program 
                for the exploration, development, and production of the 
                oil and gas resources of the Western Coastal Plain; and
                    (B) to administer this Act through regulations, 
                lease terms, conditions, restrictions, prohibitions, 
                stipulations, and other provisions that--
                            (i) ensure the oil and gas exploration, 
                        development, and production activities on the 
                        Western Coastal Plain will result in no 
                        significant adverse effect on fish and 
                        wildlife, fish and wildlife habitat, 
                        subsistence resources, and the environment;
                            (ii) prohibit surface occupancy of the 
                        Western Coastal Plain during oil and gas 
                        development and production; and
                            (iii) require the application of the best 
                        commercially available technology for oil and 
                        gas exploration, development, and production to 
                        all exploration, development, and production 
                        operations under this Act in a manner that 
                        ensures the receipt of fair market value by the 
                        public for the mineral resources to be leased.
    (b) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.)--
                    (A) the oil and gas leasing program and activities 
                authorized by this section in the Western Coastal Plain 
                shall be considered to be compatible with the purposes 
                for which the Arctic National Wildlife Refuge was 
                established; and
                    (B) no further findings or decisions shall be 
                required to implement that program and those 
                activities.
            (2) Adequacy of doi legislative environmental impact 
        statement.--The Final Statement shall be considered to satisfy 
        the requirements of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) 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 Act 
        before the conduct of the first lease sale.
    (c) Relationship to State and Local Authority.--Nothing in this Act 
expands or limits any State or local regulatory authority.
    (d) Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall promulgate such 
        regulations as are necessary to carry out this Act.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, as appropriate, revise the rules and 
        regulations promulgated under paragraph (1) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the attention of the Secretary.

SEC. 4. LEASE SALES.

    (a) Qualified Lessees.--
            (1) In general.--Except as provided in paragraph (2), land 
        may be leased under this Act to any person qualified to obtain 
        a lease for deposits of oil and gas under the Mineral Leasing 
        Act (30 U.S.C. 181 et seq.).
            (2) Exclusion.--Land may not be leased under this Act to 
        any person prohibited from participation in a lease sale under 
        section 1002(e)(2)(C) of the Alaska National Interest Lands 
        Conservation Act (16 U.S.C. 3142(e)(2)(C)).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Western Coastal Plain for inclusion in, or 
        exclusion from, a lease sale;
            (2) the holding of lease sales after the nomination process 
        described in paragraph (1); and
            (3) public notice of, and comment on, designation of areas 
        to be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this Act shall be by 
sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this Act, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 18 months after the date of enactment of 
        this Act, conduct the first lease sale under this Act;
            (2) not later than 2 years after the first lease sale, 
        conduct a second lease sale under this Act; and
            (3) conduct additional sales at appropriate intervals if, 
        as determined by the Secretary, sufficient interest in 
        development exists to warrant the conduct of the additional 
        sales.

SEC. 5. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--On payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary may grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 4 a lease for any land on the Western Coastal Plain.
    (b) Subsequent Transfers.--
            (1) In general.--No lease issued under this Act may be 
        sold, exchanged, assigned, sublet, or otherwise transferred 
        except with the approval of the Secretary.
            (2) Condition for approval.--Before granting any approval 
        under paragraph (1), the Secretary shall consult with, and give 
        due consideration to the opinion of, the Attorney General.

SEC. 6. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this Act 
shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent of the quantity or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, such portions of the Western Coastal Plain to 
        exploratory drilling activities as are necessary to protect 
        caribou calving areas and other species of fish and wildlife;
            (3) require that each lessee of land within the Western 
        Coastal Plain shall be fully responsible and liable for the 
        reclamation of land within the Western Coastal Plain and any 
        other Federal land that is adversely affected in connection 
        with exploration activities conducted under the lease and 
        within the Western Coastal Plain by the lessee or by any of the 
        subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability described in paragraph (3) to another person without 
        the express written approval of the Secretary;
            (5) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        3(a)(2);
            (6) provide that each lessee, and each agent and contractor 
        of a lessee, shall use the best efforts of the lessee to 
        provide a fair share of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State, as determined by the level of obligation previously 
        agreed to in the Federal Agreement; and
            (7) contain such other provisions as the Secretary 
        determines to be necessary to ensure compliance with this Act, 
        including regulations promulgated under this Act.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this Act, and in recognizing the 
proprietary interest of the Federal Government in labor stability and 
in the ability of construction labor and management to meet the 
particular needs and conditions of projects to be developed under the 
leases issued pursuant to this Act (including the special concerns of 
the parties to those leases), shall require that each lessee, and each 
agent and contractor of a lessee, under this Act negotiate to obtain a 
project labor agreement for the employment of laborers and mechanics on 
production, maintenance, and construction under the lease.

SEC. 7. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaints.--
            (1) Deadline.--A complaint seeking judicial review of a 
        provision of this Act or an action of the Secretary under this 
        Act shall be filed--
                    (A) except as provided in subparagraph (B), during 
                the 90-day period beginning on the date on which the 
                action being challenged was carried out; or
                    (B) in the case of a complaint based solely on 
                grounds arising after the 90-day period described in 
                subparagraph (A), by not later than 90 days after the 
                date on which the complainant knew or reasonably should 
                have known about the grounds for the complaint.
            (2) Venue.--A complaint seeking judicial review of a 
        provision of this Act or an action of the Secretary under this 
        Act shall be filed in the United States Court of Appeals for 
        the District of Columbia Circuit.
            (3) Scope.--
                    (A) In general.--Judicial review of a decision of 
                the Secretary relating to a lease sale under this Act 
                (including an environmental analysis of such a lease 
                sale) shall be--
                            (i) limited to a review of whether the 
                        decision is in accordance with this Act; and
                            (ii) based on the administrative record of 
                        the decision.
                    (B) Presumptions.--Any identification by the 
                Secretary of a preferred course of action relating to a 
                lease sale, and any analysis by the Secretary of 
                environmental effects, under this Act shall be presumed 
                to be correct unless proven otherwise by clear and 
                convincing evidence.
    (b) Limitation on Other Review.--Any action of the Secretary that 
is subject to judicial review under this section shall not be subject 
to judicial review in any civil or criminal proceeding for enforcement.

SEC. 8. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Establishment of Fund.--
            (1) In general.--The Secretary shall establish in the 
        Treasury a fund to be known as the ``Coastal Plain Local 
        Government Impact Aid Assistance Fund'' (referred to in this 
        section as the ``Fund'') to offset any planning, land use-
        related, or service-related impacts of offshore development 
        caused by this Act.
            (2) Deposits.--The Secretary of the Treasury shall deposit 
        into the Fund, $15,000,000 each year from the amount available 
        under section 9(1).
    (b) Assistance.--The Governor of Alaska, in cooperation with the 
Mayor of the North Slope Borough, shall use amounts in the Fund to 
provide assistance to the North Slope Borough, Alaska, the City of 
Kaktovik, Alaska, and any other borough, municipal subdivision, 
village, or other community in the State of Alaska that is directly 
impacted by exploration for, or the production of, oil or gas on or 
near the Coastal Plain under this Act, or any Alaska Native Regional 
Corporation acting on behalf of the villages and communities within its 
region whose land lies along the right of way of the Trans Alaska 
Pipeline System, as determined by the Governor.
    (c) Application.--
            (1) In general.--To receive assistance under subsection 
        (b), a community or Regional Corporation described in that 
        subsection shall submit to the Governor, or to the Mayor of the 
        North Slope Borough, an application in such time, in such 
        manner, and containing such information as the Governor may 
        require.
            (2) Action by north slope borough.--The Mayor of the North 
        Slope Borough shall submit to the Governor each application 
        received under paragraph (1) as soon as practicable after the 
        date on which the application is received.
            (3) Assistance of governor.--The Governor shall assist 
        communities in submitting applications under this subsection to 
        the maximum extent practicable.
    (d) Use of Funds.--A community or Regional Corporation that 
receives funds under subsection (b) may use the funds--
            (1) to plan for mitigation, implement a mitigation plan, or 
        maintain a mitigation project to address the potential effects 
        of oil and gas exploration and development on environmental, 
        social, cultural, recreational, and subsistence resources of 
        the community;
            (2) to develop, carry out, and maintain--
                    (A) a project to provide new or expanded public 
                facilities; or
                    (B) services to address the needs and problems 
                associated with the effects described in paragraph (1), 
                including firefighting, police, water and waste 
                treatment, first responder, rescue, and other medical 
                services;
            (3) to compensate residents of the Coastal Plain or nearby 
        waters for significant damage to environmental, social, 
        cultural, recreation, or subsistence resources; and
            (4) in the City of Kaktovik, Alaska--
                    (A) to develop a mechanism for providing members of 
                the Kaktovikmiut Inupiat community an opportunity--
                            (i) to monitor development in or near the 
                        Coastal Plain; and
                            (ii) to provide information and 
                        recommendations based on traditional knowledge; 
                        and
                    (B) to establish a local coordination office, to be 
                managed by the Mayor of the North Slope Borough, in 
                coordination with the City of Kaktovik, Alaska--
                            (i) to coordinate with and advise 
                        developers on local conditions and the history 
                        of areas affected by development;
                            (ii) to collect from residents of the 
                        Coastal Plain information regarding the impacts 
                        of development on fish, wildlife, whales, other 
                        marine mammals, habitats, subsistence 
                        resources, and the environment of the Coastal 
                        Plain; and
                            (iii) to ensure that the information 
                        collected under clause (ii) is submitted to any 
                        appropriate Federal agency.

SEC. 9. ALLOCATION 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 Act--
            (1) 50 percent shall be paid semiannually to the State of 
        Alaska; and
            (2) 50 percent shall be allocated in accordance with 
        subsection (b).
    (b) Allocation of Federal Funds.--Any amounts made available under 
subsection (a)(2), plus an appropriated amount equal to the amount of 
Federal income tax attributable to sales of oil and gas produced from 
operations described in subsection (a), shall be deposited in an 
account in the Treasury which shall be available, without further 
appropriation or fiscal year limitation, each fiscal year as follows:
            (1) $15,000,000 shall be deposited by the Secretary of the 
        Treasury into the Fund created under section 8(a)(1).
            (2) The remainder shall be available as follows:
                    (A) 50 percent shall be available to the Department 
                of Energy to carry out alternative energy programs 
                established under the Energy Policy Act of 2005 (42 
                U.S.C. 15801 et seq.), the Energy Independence and 
                Security Act of 2007 (42 U.S.C. 17001 et seq.), or an 
                amendment made by either of those Acts, as determined 
                by the Secretary of Energy.
                    (B) 25 percent shall be available to the Department 
                of the Interior for award to wildlife habitat and fish 
                and game programs authorized by the Pittman-Robertson 
                Wildlife Restoration Act (16 U.S.C. 669 et seq.) and 
                the Dingell-Johnson Sport Fish Restoration Act) 
                (commonly known as the ``Wallop-Breaux Act'') (16 
                U.S.C. 777 et seq.).
                    (C) 25 percent shall remain in the general fund of 
                the Treasury.
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