[House Report 109-531]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-531

======================================================================
 
                DEEP OCEAN ENERGY RESOURCES ACT OF 2006

                                _______
                                

 June 26, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4761]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 4761) to provide for exploration, development, and 
production activities for mineral resources on the outer 
Continental Shelf, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Deep Ocean Energy Resources Act of 
2006''.

SEC. 2. POLICY.

  It is the policy of the United States that--
          (1) the United States is blessed with abundant energy 
        resources on the outer Continental Shelf and has developed a 
        comprehensive framework of environmental laws and regulations 
        and fostered the development of state-of-the-art technology 
        that allows for the responsible development of these resources 
        for the benefit of its citizenry;
          (2) adjacent States are required by the circumstances to 
        commit significant resources in support of exploration, 
        development, and production activities for mineral resources on 
        the outer Continental Shelf, and it is fair and proper for a 
        portion of the receipts from such activities to be shared with 
        Adjacent States and their local coastal governments;
          (3) the existing laws governing the leasing and production of 
        the mineral resources of the outer Continental Shelf have 
        reduced the production of mineral resources, have preempted 
        Adjacent States from being sufficiently involved in the 
        decisions regarding the allowance of mineral resource 
        development, and have been harmful to the national interest;
          (4) the national interest is served by granting the Adjacent 
        States more options related to whether or not mineral leasing 
        should occur in the outer Continental Shelf within their 
        Adjacent Zones;
          (5) it is not reasonably foreseeable that exploration of a 
        leased tract located more than 25 miles seaward of the 
        coastline, development and production of a natural gas 
        discovery located more than 25 miles seaward of the coastline, 
        or development and production of an oil discovery located more 
        than 50 miles seaward of the coastline will adversely affect 
        resources near the coastline;
          (6) transportation of oil from a leased tract might 
        reasonably be foreseen, under limited circumstances, to have 
        the potential to adversely affect resources near the coastline 
        if the oil is within 50 miles of the coastline, but such 
        potential to adversely affect such resources is likely no 
        greater, and probably less, than the potential impacts from 
        tanker transportation because tanker spills usually involve 
        large releases of oil over a brief period of time; and
          (7) among other bodies of inland waters, the Great Lakes, 
        Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle 
        Sound, San Francisco Bay, and Puget Sound are not part of the 
        outer Continental Shelf, and are not subject to leasing by the 
        Federal Government for the exploration, development, and 
        production of any mineral resources that might lie beneath 
        them.

SEC. 3. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.

  Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
          (1) by amending paragraph (f) to read as follows:
  ``(f) The term `affected State' means the Adjacent State.'';
          (2) by striking the semicolon at the end of each of 
        paragraphs (a) through (o) and inserting a period;
          (3) by striking ``; and'' at the end of paragraph (p) and 
        inserting a period;
          (4) by adding at the end the following:
  ``(r) The term `Adjacent State' means, with respect to any program, 
plan, lease sale, leased tract or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, any State the laws 
of which are declared, pursuant to section 4(a)(2), to be the law of 
the United States for the portion of the outer Continental Shelf on 
which such program, plan, lease sale, leased tract or activity 
appertains or is, or is proposed to be, conducted. For purposes of this 
paragraph, the term `State' includes Puerto Rico and the other 
Territories of the United States.
  ``(s) The term `Adjacent Zone' means, with respect to any program, 
plan, lease sale, leased tract, or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, the portion of the 
outer Continental Shelf for which the laws of a particular Adjacent 
State are declared, pursuant to section 4(a)(2), to be the law of the 
United States.
  ``(t) The term `miles' means statute miles.
  ``(u) The term `coastline' has the same meaning as the term `coast 
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C. 
1301(c)).
  ``(v) The term `Neighboring State' means a coastal State having a 
common boundary at the coastline with the Adjacent State.''; and
          (5) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States exclusive 
        economic zone adjacent to the Territories of the United 
        States''.

SEC. 4. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.

  Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``, 
and the President'' and all that follows through the end of the 
sentence and inserting the following: ``. The lines extending seaward 
and defining each State's Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental Shelf region 
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning 
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning 
Areas', `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
Planning Areas', and `Atlantic OCS Region State Adjacent Zones and OCS 
Planning Areas', all of which are dated September 2005 and on file in 
the Office of the Director, Minerals Management Service.''.

SEC. 5. ADMINISTRATION OF LEASING.

  Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
  ``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a 
producing lease may relinquish to the Secretary any portion of a lease 
that the lessee has no interest in producing and that the Secretary 
finds is geologically prospective. In return for any such 
relinquishment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, in 
accordance with regulations promulgated by the Secretary to carry out 
this subsection. The Secretary shall publish final regulations 
implementing this subsection within 365 days after the date of the 
enactment of the Deep Ocean Energy Resources Act of 2006.
  ``(l) Natural Gas Lease Regulations.--Not later than July 1, 2007, 
the Secretary shall publish a final regulation that shall--
          ``(1) establish procedures for entering into natural gas 
        leases;
          ``(2) ensure that natural gas leases are only available for 
        tracts on the outer Continental Shelf that are wholly within 
        100 miles of the coastline within an area withdrawn from 
        disposition by leasing on the day after the date of enactment 
        of the Deep Ocean Energy Resources Act of 2006;
          ``(3) provide that natural gas leases shall contain the same 
        rights and obligations established for oil and gas leases, 
        except as otherwise provided in the Deep Ocean Energy Resources 
        Act of 2006;
          ``(4) provide that, in reviewing the adequacy of bids for 
        natural gas leases, the value of any crude oil estimated to be 
        contained within any tract shall be excluded;
          ``(5) provide that any crude oil produced from a well and 
        reinjected into the leased tract shall not be subject to 
        payment of royalty, and that the Secretary shall consider, in 
        setting the royalty rates for a natural gas lease, the 
        additional cost to the lessee of not producing any crude oil; 
        and
          ``(6) provide that any Federal law that applies to an oil and 
        gas lease on the outer Continental Shelf shall apply to a 
        natural gas lease unless otherwise clearly inapplicable.''.

SEC. 6. GRANT OF LEASES BY SECRETARY.

  Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended--
          (1) in subsection (a)(1) by inserting after the first 
        sentence the following: ``Further, the Secretary may grant 
        natural gas leases in a manner similar to the granting of oil 
        and gas leases and under the various bidding systems available 
        for oil and gas leases.'';
          (2) by adding at the end of subsection (b) the following:
``The Secretary may issue more than one lease for a given tract if each 
lease applies to a separate and distinct range of vertical depths, 
horizontal surface area, or a combination of the two. The Secretary may 
issue regulations that the Secretary determines are necessary to manage 
such leases consistent with the purposes of this Act.'';
          (3) by amending subsection (p)(2)(B) to read as follows:
          ``(B) The Secretary shall provide for the payment to coastal 
        states, and their local coastal governments, of 75 percent of 
        Federal receipts from projects authorized under this section 
        located partially or completely within the area extending 
        seaward of State submerged lands out to 4 marine leagues from 
        the coastline, and the payment to coastal states of 50 percent 
        of the receipts from projects completely located in the area 
        more than 4 marine leagues from the coastline. Payments shall 
        be based on a formula established by the Secretary by 
        rulemaking no later than 180 days after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 2006 that 
        provides for equitable distribution, based on proximity to the 
        project, among coastal states that have coastline that is 
        located within 200 miles of the geographic center of the 
        project.''.
          (4) by adding at the end the following:
  ``(q) Natural Gas Leases.--
          ``(1) Right to produce natural gas.--A lessee of a natural 
        gas lease shall have the right to produce the natural gas from 
        a field on a natural gas leased tract if the Secretary 
        estimates that the discovered field has at least 40 percent of 
        the economically recoverable Btu content of the field contained 
        within natural gas and such natural gas is economical to 
        produce.
          ``(2) Crude oil.--A lessee of a natural gas lease may not 
        produce crude oil from the lease.
          ``(3) Estimates of btu content.--The Secretary shall make 
        estimates of the natural gas Btu content of discovered fields 
        on a natural gas lease only after the completion of at least 
        one exploration well, the data from which has been tied to the 
        results of a three-dimensional seismic survey of the field. The 
        Secretary may not require the lessee to further delineate any 
        discovered field prior to making such estimates.
          ``(4) Definition of natural gas.--For purposes of a natural 
        gas lease, natural gas means natural gas and all substances 
        produced in association with gas, including, but not limited 
        to, hydrocarbon liquids (other than crude oil) that are 
        obtained by the condensation of hydrocarbon vapors and separate 
        out in liquid form from the produced gas stream.
  ``(r) Removal of Restrictions on Joint Bidding in Certain Areas of 
the Outer Continental Shelf.--Restrictions on joint bidders shall no 
longer apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions determined 
to be `frontier tracts' or otherwise `high cost tracts' under final 
regulations that shall be published by the Secretary by not later than 
365 days after the date of the enactment of the Deep Ocean Energy 
Resources Act of 2006.
  ``(s) Royalty Suspension Provisions.--The Secretary shall agree to a 
request by any lessee to amend any lease issued for Central and Western 
Gulf of Mexico tracts during the period of December 1, 1995, through 
December 31, 2000, to incorporate price thresholds applicable to 
royalty suspension provisions, or amend existing price thresholds, in 
the amount of $40.50 per barrel (2006 dollars) for oil and for natural 
gas of $6.75 per million Btu (2006 dollars). Any amended lease shall 
impose the new or revised price thresholds effective October 1, 2005. 
Existing lease provisions shall prevail through September 30, 2005. 
After the date of the enactment of the Deep Ocean Energy Resources Act 
of 2006, price thresholds shall apply to any royalty suspension volumes 
granted by the Secretary. Unless otherwise set by Secretary by 
regulation or for a particular lease sale, the price thresholds shall 
be $40.50 for oil (2006 dollars) and $6.75 for natural gas (2006 
dollars).
  ``(t) Royalty Rate for Oil and Gas or Natural Gas Leases on the Outer 
Continental Shelf.--After the date of the enactment of the Deep Ocean 
Energy Resources Act of 2006, the base royalty rate for new oil and gas 
or natural gas leases on the outer Continental Shelf shall be the same 
for all leased tracts.
  ``(u) Conservation of Resources Fees.--
          ``(1) Not later than one year after the date of the enactment 
        of the Deep Ocean Energy Resources Act of 2006, the Secretary 
        by regulation shall establish a conservation of resources fee 
        for producing leases that will apply to new and existing leases 
        which shall be set at $9 per barrel for oil and $1.25 per 
        million Btu for gas. This fee shall only apply to leases in 
        production located in more than 200 meters of water for which 
        royalties are not being paid when prices exceed $40.50 per 
        barrel for oil and $6.75 per million Btu for natural gas in 
        2006, dollars. This fee shall apply to production from and 
        after October 1, 2005, and shall be treated as offsetting 
        receipts.
          ``(2) Not later than one year after the date of the enactment 
        of the Deep Ocean Energy Resources Act of 2006, the Secretary 
        by regulation shall establish a conservation of resources fee 
        for nonproducing leases that will apply to new and existing 
        leases which shall be set at not less than $1.00 nor more than 
        $4.00 per acre per year. This fee shall apply from and after 
        October 1, 2005, and shall be treated as offsetting 
        receipts.'';
          (5) by striking subsection (a)(3)(A) and redesignating the 
        subsequent subparagraphs as subparagraphs (A) and (B), 
        respectively;
          (6) in subsection (a)(3)(A) (as so redesignated) by striking 
        ``In the Western'' and all that follows through ``the 
        Secretary'' the first place it appears and inserting ``The 
        Secretary''; and
          (7) effective October 1, 2006, in subsection (g)--
                  (A) by striking all after ``(g)'', except paragraph 
                (3);
                  (B) by striking the last sentence of paragraph (3); 
                and
                  (C) by striking ``(3)''.

SEC. 7. DISPOSITION OF RECEIPTS.

  Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended--
          (1) by designating the existing text as subsection (a);
          (2) in subsection (a) (as so designated) by inserting ``, if 
        not paid as otherwise provided in this title'' after 
        ``receipts''; and
          (3) by adding the following:
  ``(b) Treatment of OCS Receipts From Tracts Completely Within 100 
Miles of the Coastline.--
          ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2), (3), and 
        (4).
          ``(2) Phased-in receipts sharing.--
                  ``(A) Beginning October 1, 2005, the Secretary shall 
                share OCS Receipts derived from the following areas:
                          ``(i) Lease tracts located on portions of the 
                        Gulf of Mexico OCS Region completely beyond 4 
                        marine leagues from any coastline and 
                        completely within 100 miles of any coastline 
                        that are available for leasing under the 2002-
                        2007 5-Year Oil and Gas Leasing Program in 
                        effect prior to the date of the enactment of 
                        the Deep Ocean Energy Resources Act of 2006.
                          ``(ii) Lease tracts in production prior to 
                        October 1, 2005, completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of any coastline located on 
                        portions of the OCS that were not available for 
                        leasing under the 2002-2007 5-Year OCS Oil and 
                        Gas Leasing Program in effect prior to the date 
                        of the enactment of the Deep Ocean Energy 
                        Resources Act of 2006.
                          ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2005, located in the 
                        Alaska OCS Region completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of the coastline.
                  ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                          ``(i) For fiscal year 2006, 6.0 percent.
                          ``(ii) For fiscal year 2007, 7.0 percent.
                          ``(iii) For fiscal year 2008, 8.0 percent.
                          ``(iv) For fiscal year 2009, 9.0 percent.
                          ``(v) For fiscal year 2010, 12.0 percent.
                          ``(vi) For fiscal year 2011, 15.0 percent.
                          ``(vii) For fiscal year 2012, 18.0 percent.
                          ``(viii) For fiscal year 2013, 21.0 percent.
                          ``(ix) For fiscal year 2014, 24.0 percent.
                          ``(x) For fiscal year 2015, 27.0 percent.
                          ``(xi) For fiscal year 2016, 30.0 percent.
                          ``(xii) For fiscal year 2017, 33.0 percent.
                          ``(xiii) For fiscal year 2018, 36.0 percent.
                          ``(xiv) For fiscal year 2019, 39.0 percent.
                          ``(xv) For fiscal year 2020, 42.0 percent.
                          ``(xvi) For fiscal year 2021, 45.0 percent.
                          ``(xvii) For fiscal year 2022 and each 
                        subsequent fiscal year, 50.0 percent.
                  ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 6(2) of the Deep 
                Ocean Energy Resources Act of 2006.
          ``(3) Immediate receipts sharing.--Beginning October 1, 2005, 
        the Secretary shall share 50 percent of OCS Receipts derived 
        from all leases located completely beyond 4 marine leagues from 
        any coastline and completely within 100 miles of any coastline 
        not included within the provisions of paragraph (2).
          ``(4) Receipts sharing from tracts within 4 marine leagues of 
        any coastline.--Beginning October 1, 2005, the Secretary shall 
        share 75 percent of OCS Receipts derived from all leases 
        located completely or partially within 4 marine leagues from 
        any coastline.
          ``(5) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2), (3), and 
        (4) as follows:
                  ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year as follows:
                          ``(i) 85 percent to the Adjacent State.
                          ``(ii) 5 percent into the Treasury, which 
                        shall be allocated to the account established 
                        by section 14 of the Deep Ocean Energy 
                        Resources Act of 2006.
                          ``(iii) 5 percent into the account 
                        established by section 23 of the Deep Ocean 
                        Energy Resources Act of 2006.
                          ``(iv) 5 percent into the account established 
                        by section 26 of the Deep Ocean Energy 
                        Resources Act of 2006.
                  ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year as follows:
                          ``(i) 85 percent to the Adjacent State and 
                        any other producing State or States with a 
                        leased tract within its Adjacent Zone within 
                        100 miles of its coastline that generated 
                        royalties during the fiscal year, if the other 
                        producing or States have a coastline point 
                        within 300 miles of any portion of the leased 
                        tract, in which case the amount allocated for 
                        the leased tract shall be--
                                  ``(I) one-third to the Adjacent 
                                State; and
                                  ``(II) two-thirds to each producing 
                                State, including the Adjacent State, 
                                inversely proportional to the distance 
                                between the nearest point on the 
                                coastline of the producing State and 
                                the geographic center of the leased 
                                tract.
                          ``(ii) 5 percent into the Treasury, which 
                        shall be allocated to the account established 
                        by section 14 of the Deep Ocean Energy 
                        Resources Act of 2006.
                          ``(iii) 5 percent into the account 
                        established by section 23 of the Deep Ocean 
                        Energy Resources Act of 2006.
                          ``(iv) 5 percent into the account established 
                        by section 26 of the Deep Ocean Energy 
                        Resources Act of 2006.
  ``(c) Treatment of OCS Receipts From Tracts Partially or Completely 
Beyond 100 Miles of the Coastline.--
          ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2) and (3).
          ``(2) Phased-in receipts sharing.--
                  ``(A) Beginning October 1, 2005, the Secretary shall 
                share OCS Receipts derived from the following areas:
                          ``(i) Lease tracts located on portions of the 
                        Gulf of Mexico OCS Region partially or 
                        completely beyond 100 miles of any coastline 
                        that were available for leasing under the 2002-
                        2007 5-Year Oil and Gas Leasing Program in 
                        effect prior to the date of enactment of the 
                        Deep Ocean Energy Resources Act of 2006.
                          ``(ii) Lease tracts in production prior to 
                        October 1, 2005, partially or completely beyond 
                        100 miles of any coastline located on portions 
                        of the OCS that were not available for leasing 
                        under the 2002-2007 5-Year OCS Oil and Gas 
                        Leasing Program in effect prior to the date of 
                        enactment of the Deep Ocean Energy Resources 
                        Act of 2006.
                          ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2005, located in the 
                        Alaska OCS Region partially or completely 
                        beyond 100 miles of the coastline.
                  ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                          ``(i) For fiscal year 2006, 6.0 percent.
                          ``(ii) For fiscal year 2007, 7.0 percent.
                          ``(iii) For fiscal year 2008, 8.0 percent.
                          ``(iv) For fiscal year 2009, 9.0 percent.
                          ``(v) For fiscal year 2010, 12.0 percent.
                          ``(vi) For fiscal year 2011, 15.0 percent.
                          ``(vii) For fiscal year 2012, 18.0 percent.
                          ``(viii) For fiscal year 2013, 21.0 percent.
                          ``(ix) For fiscal year 2014, 24.0 percent.
                          ``(x) For fiscal year 2015, 27.0 percent.
                          ``(xi) For fiscal year 2016, 30.0 percent.
                          ``(xii) For fiscal year 2017, 33.0 percent.
                          ``(xiii) For fiscal year 2018, 36.0 percent.
                          ``(xiv) For fiscal year 2019, 39.0 percent.
                          ``(xv) For fiscal year 2020, 42.0 percent.
                          ``(xvi) For fiscal year 2021, 45.0 percent.
                          ``(xvii) For fiscal year 2022 and each 
                        subsequent fiscal year, 50.0 percent.
                  ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 6(2) of the Deep 
                Ocean Energy Resources Act of 2006.
          ``(3) Immediate receipts sharing.--Beginning October 1, 2005, 
        the Secretary shall share 50 percent of OCS Receipts derived on 
        and after October 1, 2005, from all leases located partially or 
        completely beyond 100 miles of any coastline not included 
        within the provisions of paragraph (2).
          ``(4) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2) and (3) as 
        follows:
                  ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year as follows:
                          ``(i) 85 percent to the Adjacent State.
                          ``(ii) 5 percent into the Treasury, which 
                        shall be allocated to the account established 
                        by section 14 of the Deep Ocean Energy 
                        Resources Act of 2006.
                          ``(iii) 5 percent into the account 
                        established by section 23 of the Deep Ocean 
                        Energy Resources Act of 2006.
                          ``(iv) 5 percent into the account established 
                        by section 26 of the Deep Ocean Energy 
                        Resources Act of 2006.
                  ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year as follows:
                          ``(i) 85 percent to the Adjacent State and 
                        any other producing State or States with a 
                        leased tract within its Adjacent Zone partially 
                        or completely beyond 100 miles of its coastline 
                        that generated royalties during the fiscal 
                        year, if the other producing State or States 
                        have a coastline point within 300 miles of any 
                        portion of the leased tract, in which case the 
                        amount allocated for the leased tract shall 
                        be--
                                  ``(I) one-third to the Adjacent 
                                State; and
                                  ``(II) two-thirds to each producing 
                                State, including the Adjacent State, 
                                inversely proportional to the distance 
                                between the nearest point on the 
                                coastline of the producing State and 
                                the geographic center of the leased 
                                tract.
                          ``(ii) 5 percent into the account established 
                        by section 14 of the Deep Ocean Energy 
                        Resources Act of 2006.
                          ``(iii) 5 percent into the account 
                        established by section 23 of the Deep Ocean 
                        Energy Resources Act of 2006.
                          ``(iv) 5 percent into the account established 
                        by section 26 of the Deep Ocean Energy 
                        Resources Act of 2006.
  ``(d) Transmission of Allocations.--
          ``(1) In general.--Not later than 90 days after the end of 
        each fiscal year, the Secretary shall transmit--
                  ``(A) to each State 60 percent of such State's 
                allocations under subsections (b)(5)(A)(i), 
                (b)(5)(B)(i), (c)(4)(A)(i), and (c)(4)(B)(i) for the 
                immediate prior fiscal year;
                  ``(B) to coastal county-equivalent and municipal 
                political subdivisions of such State a total of 40 
                percent of such State's allocations under subsections 
                (b)(5)(A)(i), (b)(5)(B)(i), (c)(4)(A)(i), and 
                (c)(4)(B)(i), together with all accrued interest 
                thereon; and
                  ``(C) the remaining allocations under subsections 
                (b)(5) and (c)(4), together with all accrued interest 
                thereon.
          ``(2) Allocations to coastal county-equivalent political 
        subdivisions.--The Secretary shall make an initial allocation 
        of the OCS Receipts to be shared under paragraph (1)(B) as 
        follows:
                  ``(A) 25 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely more than 25 miles landward of the coastline 
                and at least a part of which lies not more than 75 
                miles landward from the coastline, with the allocation 
                among such coastal county-equivalent political 
                subdivisions based on population.
                  ``(B) 75 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely or partially less than 25 miles landward of 
                the coastline, with the allocation among such coastal 
                county-equivalent political subdivisions to be further 
                allocated as follows:
                          ``(i) 25 percent shall be allocated based on 
                        the ratio of such coastal county-equivalent 
                        political subdivision's population to the 
                        coastal population of all coastal county-
                        equivalent political subdivisions in the State.
                          ``(ii) 25 percent shall be allocated based on 
                        the ratio of such coastal county-equivalent 
                        political subdivision's coastline miles to the 
                        coastline miles of all coastal county-
                        equivalent political subdivisions in the State 
                        as calculated by the Secretary. In such 
                        calculations, coastal county-equivalent 
                        political subdivisions without a coastline 
                        shall be considered to have 50 percent of the 
                        average coastline miles of the coastal county-
                        equivalent political subdivisions that do have 
                        coastlines.
                          ``(iii) 25 percent shall be allocated to all 
                        coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on a formula 
                        that allocates the funds based on such coastal 
                        county-equivalent political subdivision's 
                        relative distance from the leased tract.
                          ``(iv) 25 percent shall be allocated to all 
                        coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on the relative 
                        level of outer Continental Shelf oil and gas 
                        activities in a coastal political subdivision 
                        compared to the level of outer Continental 
                        Shelf activities in all coastal political 
                        subdivisions in the State. The Secretary shall 
                        define the term `outer Continental Shelf oil 
                        and gas activities' for purposes of this 
                        subparagraph to include, but not be limited to, 
                        construction of vessels, drillships, and 
                        platforms involved in exploration, production, 
                        and development on the outer Continental Shelf; 
                        support and supply bases, ports, and related 
                        activities; offices of geologists, 
                        geophysicists, engineers, and other 
                        professionals involved in support of 
                        exploration, production, and development of oil 
                        and gas on the outer Continental Shelf; 
                        pipelines and other means of transporting oil 
                        and gas production from the outer Continental 
                        Shelf; and processing and refining of oil and 
                        gas production from the outer Continental 
                        Shelf. For purposes of this subparagraph, if a 
                        coastal county-equivalent political subdivision 
                        does not have a coastline, its coastal point 
                        shall be the point on the coastline closest to 
                        it.
          ``(3) Allocations to coastal municipal political 
        subdivisions.--The initial allocation to each coastal county-
        equivalent political subdivision under paragraph (2) shall be 
        further allocated to the coastal county-equivalent political 
        subdivision and any coastal municipal political subdivisions 
        located partially or wholly within the boundaries of the 
        coastal county-equivalent political subdivision as follows:
                  ``(A) One-third shall be allocated to the coastal 
                county-equivalent political subdivision.
                  ``(B) Two-thirds shall be allocated on a per capita 
                basis to the municipal political subdivisions and the 
                county-equivalent political subdivision, with the 
                allocation to the latter based upon its population not 
                included within the boundaries of a municipal political 
                subdivision.
  ``(e) Investment of Deposits.--Amounts deposited under this section 
shall be invested by the Secretary of the Treasury in securities backed 
by the full faith and credit of the United States having maturities 
suitable to the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as determined 
by the Secretary of the Treasury.
  ``(f) Use of Funds.--A recipient of funds under this section may use 
the funds for one or more of the following:
          ``(1) To reduce in-State college tuition at public 
        institutions of higher learning and otherwise support public 
        education, including career technical education.
          ``(2) To make transportation infrastructure improvements.
          ``(3) To reduce taxes.
          ``(4) To promote, fund, and provide for--
                  ``(A) coastal or environmental restoration;
                  ``(B) fish, wildlife, and marine life habitat 
                enhancement;
                  ``(C) waterways construction and maintenance;
                  ``(D) levee construction and maintenance and shore 
                protection; and
                  ``(E) marine and oceanographic education and 
                research.
          ``(5) To promote, fund, and provide for --
                  ``(A) infrastructure associated with energy 
                production activities conducted on the outer 
                Continental Shelf;
                  ``(B) energy demonstration projects;
                  ``(C) supporting infrastructure for shore-based 
                energy projects;
                  ``(D) State geologic programs, including geologic 
                mapping and data storage programs, and state 
                geophysical data acquisition;
                  ``(E) State seismic monitoring programs, including 
                operation of monitoring stations;
                  ``(F) development of oil and gas resources through 
                enhanced recovery techniques;
                  ``(G) alternative energy development, including bio 
                fuels, coal-to-liquids, oil shale, tar sands, 
                geothermal, geopressure, wind, waves, currents, hydro, 
                and other renewable energy;
                  ``(H) energy efficiency and conservation programs; 
                and
                  ``(I) front-end engineering and design for facilities 
                that produce liquid fuels from hydrocarbons and other 
                biological matter.
          ``(6) To promote, fund, and provide for--
                  ``(A) historic preservation programs and projects;
                  ``(B) natural disaster planning and response; and,
                  ``(C) hurricane and natural disaster insurance 
                programs.
          ``(7) For any other purpose as determined by State law.
  ``(g) No Accounting Required.--No recipient of funds under this 
section shall be required to account to the Federal Government for the 
expenditure of such funds, except as otherwise may be required by law. 
However, States may enact legislation providing for accounting for and 
auditing of such expenditures. Further, funds allocated under this 
section to States and political subdivisions may be used as matching 
funds for other Federal programs.
  ``(h) Effect of Future Laws.--Enactment of any future Federal statute 
that has the effect, as determined by the Secretary, of restricting any 
Federal agency from spending appropriated funds, or otherwise 
preventing it from fulfilling its pre-existing responsibilities as of 
the date of enactment of the statute, unless such responsibilities have 
been reassigned to another Federal agency by the statute with no 
prevention of performance, to issue any permit or other approval 
impacting on the OCS oil and gas leasing program, or any lease issued 
thereunder, or to implement any provision of this Act shall 
automatically prohibit any sharing of OCS Receipts under this section 
directly with the States, and their coastal political subdivisions, for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting effects within 30 
days of a petition by any outer Continental Shelf lessee or producing 
State.
  ``(i) Definitions.--In this section:
          ``(1) Coastal county-equivalent political subdivision.--The 
        term `coastal county-equivalent political subdivision' means a 
        political jurisdiction immediately below the level of State 
        government, including a county, parish, borough in Alaska, 
        independent municipality not part of a county, parish, or 
        borough in Alaska, or other equivalent subdivision of a coastal 
        State, that lies within the coastal zone.
          ``(2) Coastal municipal political subdivision.--The term 
        `coastal municipal political subdivision' means a municipality 
        located within and part of a county, parish, borough in Alaska, 
        or other equivalent subdivision of a State, all or part of 
        which coastal municipal political subdivision lies within the 
        coastal zone.
          ``(3) Coastal population.--The term `coastal population' 
        means the population of all coastal county-equivalent political 
        subdivisions, as determined by the most recent official data of 
        the Census Bureau.
          ``(4) Coastal zone.--The term `coastal zone' means that 
        portion of a coastal State, including the entire territory of 
        any coastal county-equivalent political subdivision at least a 
        part of which lies, within 75 miles landward from the 
        coastline, or a greater distance as determined by State law 
        enacted to implement this section.
          ``(5) Bonus bids.--The term `bonus bids' means all funds 
        received by the Secretary to issue an outer Continental Shelf 
        minerals lease.
          ``(6) Royalties.--The term `royalties' means all funds 
        received by the Secretary from production of oil or natural 
        gas, or the sale of production taken in-kind, from an outer 
        Continental Shelf minerals lease.
          ``(7) Producing state.--The term `producing State' means an 
        Adjacent State having an Adjacent Zone containing leased tracts 
        from which OCS Receipts were derived.
          ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
        bids, royalties, and conservation of resources fees.''.

SEC. 8. REVIEW OF OUTER CONTINENTAL SHELF EXPLORATION PLANS.

  Subsections (c) and (d) of section 11 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1340) are amended to read as follows:
  ``(c) Plan Review; Plan Provisions.--
          ``(1) Except as otherwise provided in this Act, prior to 
        commencing exploration pursuant to any oil and gas lease issued 
        or maintained under this Act, the holder thereof shall submit 
        an exploration plan (hereinafter in this section referred to as 
        a `plan') to the Secretary for review which shall include all 
        information and documentation required under paragraphs (2) and 
        (3). The Secretary shall review the plan for completeness 
        within 10 days of submission. If the Secretary finds that the 
        plan is not complete, the Secretary shall notify the lessee 
        with a detailed explanation and require such modifications of 
        such plan as are necessary to achieve completeness. The 
        Secretary shall have 10 days to review a modified plan for 
        completeness. Such plan may apply to more than one lease held 
        by a lessee in any one region of the outer Continental Shelf, 
        or by a group of lessees acting under a unitization, pooling, 
        or drilling agreement, and the lessee shall certify that such 
        plan is consistent with the terms of the lease and is 
        consistent with all statutory and regulatory requirements in 
        effect on the date of issuance of the lease, and any 
        regulations promulgated under this Act to the conservation of 
        resources after the date of the lease issuances. The Secretary 
        shall have 30 days from the date the plan is deemed complete to 
        conduct a review of the plan. If the Secretary finds the plan 
        is not consistent with the lease and all such statutory and 
        regulatory requirements, the Secretary shall notify the lessee 
        with a detailed explanation of such modifications of such plan 
        as are necessary to achieve compliance. The Secretary shall 
        have 30 days to review any modified plan submitted by the 
        lessee. The lessee shall not take any action under the 
        exploration plan within the 30-day review period, or thereafter 
        until the plan has been modified to achieve compliance as so 
        notified.
          ``(2) An exploration plan submitted under this subsection 
        shall include, in the degree of detail which the Secretary may 
        by regulation require--
                  ``(A) a schedule of anticipated exploration 
                activities to be undertaken;
                  ``(B) a description of equipment to be used for such 
                activities;
                  ``(C) the general location of each well to be 
                drilled; and
                  ``(D) such other information deemed pertinent by the 
                Secretary.
          ``(3) The Secretary may, by regulation, require that such 
        plan be accompanied by a general statement of development and 
        production intentions which shall be for planning purposes only 
        and which shall not be binding on any party.
  ``(d) Plan Revisions; Conduct of Exploration Activities.--
          ``(1) If a significant revision of an exploration plan under 
        this subsection is submitted to the Secretary, the process to 
        be used for the review of such revision shall be the same as 
        set forth in subsection (c) of this section.
          ``(2) All exploration activities pursuant to any lease shall 
        be conducted in accordance with an exploration plan or a 
        revised plan which has been submitted to and reviewed by the 
        Secretary.''.

SEC. 9. RESERVATION OF LANDS AND RIGHTS.

  Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 1341) 
is amended--
          (1) in subsection (a) by adding at the end the following: 
        ``The President may partially or completely revise or revoke 
        any prior withdrawal made by the President under the authority 
        of this section. The President may not revise or revoke a 
        withdrawal that was initiated by a petition from a State and 
        approved by the Secretary of the Interior under subsection (h). 
        A withdrawal by the President may be for a term not to exceed 
        10 years. When considering potential uses of the outer 
        Continental Shelf, to the maximum extent possible, the 
        President shall accommodate competing interests and potential 
        uses.'';
          (2) by adding at the end the following:
  ``(g) Availability for Leasing Within Certain Areas of the Outer 
Continental Shelf.--
          ``(1) Prohibition against leasing.--
                  ``(A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, from and after enactment of the Deep Ocean 
                Energy Resources Act of 2006, the Secretary shall not 
                offer for leasing for oil and gas, or natural gas, any 
                area within 50 miles of the coastline that was 
                withdrawn from disposition by leasing in the Atlantic 
                OCS Region or the Pacific OCS Region, or the Gulf of 
                Mexico OCS Region Eastern Planning Area, as depicted on 
                the maps referred to in this subparagraph, under the 
                `Memorandum on Withdrawal of Certain Areas of the 
                United States Outer Continental Shelf from Leasing 
                Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated 
                June 12, 1998, or any area within 50 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or 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.
                  ``(B) Areas between 50 and 100 miles from the 
                coastline.--Unless an Adjacent State petitions under 
                subsection (h) within one year after the date of the 
                enactment of the Deep Ocean Energy Resources Act of 
                2006 for natural gas leasing or by June 30, 2009, for 
                oil and gas leasing, the Secretary shall offer for 
                leasing any area more than 50 miles but less than 100 
                miles from the coastline that was 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 maps referred 
                to in this subparagraph, under the `Memorandum on 
                Withdrawal of Certain Areas of the United States Outer 
                Continental Shelf from Leasing Disposition', 34 Weekly 
                Comp. Pres. Doc. 1111, dated June 12, 1998, or any area 
                more than 50 miles but less than 100 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or within the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
          ``(2) Revocation of withdrawal.--The provisions of the 
        `Memorandum on Withdrawal of Certain Areas of the United States 
        Outer Continental Shelf from Leasing Disposition', 34 Weekly 
        Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked 
        and are no longer in effect regarding any areas that are more 
        than 100 miles from the coastline, nor for any areas that are 
        less than 100 miles from the coastline and are included within 
        the Gulf of Mexico OCS Region Central Planning Area as depicted 
        on the map entitled `Gulf of Mexico OCS Region State Adjacent 
        Zones and OCS Planning Areas' dated September 2005 and on file 
        in the Office of the Director, Minerals Management Service. The 
        2002-2007 5-Year Outer Continental Shelf Oil and Gas Leasing 
        Program is hereby amended to include the areas added to the 
        Gulf of Mexico OCS Region Central Planning Area by this Act to 
        the extent that such areas were included within the original 
        boundaries of proposed Lease Sale 181. The amendment to such 
        leasing program includes a sale in such additional areas, which 
        shall be held no later than June 30, 2007. The Final 
        Environmental Impact Statement prepared for this area for Lease 
        Sale 181 shall be deemed sufficient for all purposes for each 
        lease sale in which such area is offered for lease during the 
        2002-2007 5-Year Outer Continental Shelf Oil and Gas Leasing 
        Program without need for supplementation. Any tract only 
        partially added to the Gulf of Mexico OCS Region Central 
        Planning Area by this Act shall be eligible for leasing of the 
        part of such tract that is included within the Gulf of Mexico 
        OCS Region Central Planning Area, and the remainder of such 
        tract that lies outside of the Gulf of Mexico OCS Region 
        Central Planning Area may be developed and produced by the 
        lessee of such partial tract using extended reach or similar 
        drilling from a location on a leased area. Further, any area in 
        the OCS withdrawn from leasing may be leased, and thereafter 
        developed and produced by the lessee using extended reach or 
        similar drilling from a location on a leased area located in an 
        area available for leasing.
          ``(3) Petition for leasing.--
                  ``(A) In general.--The Governor of the State, upon 
                concurrence of its legislature, may submit to the 
                Secretary a petition requesting that the Secretary make 
                available any area that is within the State's Adjacent 
                Zone, included within the provisions of paragraph (1), 
                and that (i) is greater than 25 miles from any point on 
                the coastline of a Neighboring State for the conduct of 
                offshore leasing, pre-leasing, and related activities 
                with respect to natural gas leasing; or (ii) is greater 
                than 50 miles from any point on the coastline of a 
                Neighboring State for the conduct of offshore leasing, 
                pre-leasing, and related activities with respect to oil 
                and gas leasing. The Adjacent State may also petition 
                for leasing any other area within its Adjacent Zone if 
                leasing is allowed in the similar area of the Adjacent 
                Zone of the applicable Neighboring State, or if not 
                allowed, if the Neighboring State, acting through its 
                Governor, expresses its concurrence with the petition. 
                The Secretary shall only consider such a petition upon 
                making a finding that leasing is allowed in the similar 
                area of the Adjacent Zone of the applicable Neighboring 
                State or upon receipt of the concurrence of the 
                Neighboring State. The date of receipt by the Secretary 
                of such concurrence by the Neighboring State shall 
                constitute the date of receipt of the petition for that 
                area for which the concurrence applies. Except for any 
                area described in the last sentence of paragraph (2), a 
                petition for leasing any part of the Alabama Adjacent 
                Zone that is a part of the Gulf of Mexico Eastern 
                Planning Area, as indicated on the map entitled `Gulf 
                of Mexico OCS Region State Adjacent Zones and OCS 
                Planning Areas' which is dated September 2005 and on 
                file in the Office of the Director, Minerals Management 
                Service, shall require the concurrence of both Alabama 
                and Florida.
                  ``(B) Limitations on leasing.--In its petition, a 
                State with an Adjacent Zone that contains leased tracts 
                may condition new leasing for oil and gas, or natural 
                gas for tracts within 25 miles of the coastline by--
                          ``(i) requiring a net reduction in the number 
                        of production platforms;
                          ``(ii) requiring a net increase in the 
                        average distance of production platforms from 
                        the coastline;
                          ``(iii) limiting permanent surface occupancy 
                        on new leases to areas that are more than 10 
                        miles from the coastline;
                          ``(iv) limiting some tracts to being produced 
                        from shore or from platforms located on other 
                        tracts; or
                          ``(v) other conditions that the Adjacent 
                        State may deem appropriate as long as the 
                        Secretary does not determine that production is 
                        made economically or technically impracticable 
                        or otherwise impossible.
                  ``(C) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that leasing the area would 
                probably cause serious harm or damage to the marine 
                resources of the State's Adjacent Zone. Prior to 
                approving the petition, the Secretary shall complete an 
                environmental assessment that documents the anticipated 
                environmental effects of leasing in the area included 
                within the scope of the petition.
                  ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C) the petition shall be considered to be 
                approved 90 days after receipt of the petition.
                  ``(E) Amendment of the 5-year leasing program.--
                Notwithstanding section 18, within 180 days of the 
                approval of a petition under subparagraph (C) or (D), 
                after the expiration of the time limits in paragraph 
                (1)(B), and within 180 days after the enactment of the 
                Deep Ocean Energy Resources Act of 2006 for the areas 
                made available for leasing under paragraph (2), the 
                Secretary shall amend the current 5-Year Outer 
                Continental Shelf Oil and Gas Leasing Program to 
                include a lease sale or sales for at least 75 percent 
                of the associated areas, unless there are, from the 
                date of approval, expiration of such time limits, or 
                enactment, as applicable, fewer than 12 months 
                remaining in the current 5-Year Leasing Program in 
                which case the Secretary shall include the associated 
                areas within lease sales under the next 5-Year Leasing 
                Program. For purposes of amending the 5-Year Program in 
                accordance with this section, further consultations 
                with States shall not be required. For purposes of this 
                section, an environmental assessment performed under 
                the provisions of the National Environmental Policy Act 
                of 1969 to assess the effects of approving the petition 
                shall be sufficient to amend the 5-Year Leasing 
                Program.
  ``(h) Option to Petition for Extension of Withdrawal From Leasing 
Within Certain Areas of the Outer Continental Shelf.--
          ``(1) In general.--The Governor of the State, upon the 
        concurrence of its legislature, may submit to the Secretary 
        petitions requesting that the Secretary extend for a period of 
        time of up to 5 years for each petition the withdrawal from 
        leasing for all or part of any area within the State's Adjacent 
        Zone located more than 50 miles, but less than 100 miles, from 
        the coastline that is subject to subsection (g)(1)(B). A State 
        may petition multiple times for any particular area but not 
        more than once per calendar year for any particular area. A 
        State must submit separate petitions, with separate votes by 
        its legislature, for oil and gas leasing and for natural gas 
        leasing. A petition of a State may request some areas to be 
        withdrawn from all leasing and some areas to be withdrawn only 
        from one type of leasing. Petitions for extending the 
        withdrawal from leasing of any part of the Alabama Adjacent 
        Zone that is more than 50 miles, but less than 100 miles, from 
        the coastline that is a part of the Gulf of Mexico OCS Region 
        Eastern Planning Area, as indicated on the map entitled `Gulf 
        of Mexico OCS Region State Adjacent Zones and OCS Planning 
        Areas' which is dated September 2005 and on file in the Office 
        of the Director, Minerals Management Service, may be made by 
        either Alabama or Florida.
          ``(2) Action by secretary.--The Secretary shall perform an 
        environmental assessment under the National Environmental 
        Policy Act of 1969 to assess the effects of approving the 
        petition under paragraph (1). Not later than 90 days after 
        receipt of the petition, the Secretary shall approve the 
        petition, unless the Secretary determines that extending the 
        withdrawal from leasing would probably cause serious harm or 
        damage to the marine resources of the State's Adjacent Zone. 
        The Secretary shall not approve a petition from a State that 
        extends the remaining period of a withdrawal of an area from 
        leasing for a total of more than 10 years. However, the 
        Secretary may approve petitions to extend the withdrawal from 
        leasing of any area ad infinitum, subject only to the 
        limitations contained in this subsection.
          ``(3) Failure to act.--If the Secretary fails to approve or 
        deny a petition in accordance with paragraph (2) the petition 
        shall be considered to be approved 90 days after receipt of the 
        petition.
  ``(i) Effect of Other Laws.--Adoption by any Adjacent State of any 
constitutional provision, or enactment of any State statute, that has 
the effect, as determined by the Secretary, of restricting either the 
Governor or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automatically (1) 
prohibit any sharing of OCS Receipts under this Act with the Adjacent 
State, and its coastal political subdivisions, and (2) prohibit the 
Adjacent State from exercising any authority under subsection (h), for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting constitutional 
provision or State statute within 30 days of a petition by any outer 
Continental Shelf lessee or coastal State.''.

SEC. 10. OUTER CONTINENTAL SHELF LEASING PROGRAM.

  Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) 
is amended--
          (1) in subsection (a), by adding at the end of paragraph (3) 
        the following: ``The Secretary shall, in each 5-year program, 
        include lease sales that when viewed as a whole propose to 
        offer for oil and gas or natural gas leasing at least 75 
        percent of the available unleased acreage within each OCS 
        Planning Area. Available unleased acreage is that portion of 
        the outer Continental Shelf that is not under lease at the time 
        of the proposed lease sale, and has not otherwise been made 
        unavailable for leasing by law.'';
          (2) in subsection (c), by striking so much as precedes 
        paragraph (3) and inserting the following:
  ``(c)(1) During the preparation of any proposed leasing program under 
this section, the Secretary shall consider and analyze leasing 
throughout the entire Outer Continental Shelf without regard to any 
other law affecting such leasing. During this preparation the Secretary 
shall invite and consider suggestions from any interested Federal 
agency, including the Attorney General, in consultation with the 
Federal Trade Commission, and from the Governor of any coastal State. 
The Secretary may also invite or consider any suggestions from the 
executive of any local government in a coastal State that have been 
previously submitted to the Governor of such State, and from any other 
person. Further, the Secretary shall consult with the Secretary of 
Defense regarding military operational needs in the outer Continental 
Shelf. The Secretary shall work with the Secretary of Defense to 
resolve any conflicts that might arise regarding offering any area of 
the outer Continental Shelf for oil and gas or natural gas leasing. If 
the Secretaries are not able to resolve all such conflicts, any 
unresolved issues shall be elevated to the President for resolution.
  ``(2) After the consideration and analysis required by paragraph (1), 
including the consideration of the suggestions received from any 
interested Federal agency, the Federal Trade Commission, the Governor 
of any coastal State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal Register a 
proposed leasing program accompanied by a draft environmental impact 
statement prepared pursuant to the National Environmental Policy Act of 
1969. After the publishing of the proposed leasing program and during 
the comment period provided for on the draft environmental impact 
statement, the Secretary shall submit a copy of the proposed program to 
the Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in the Governor's State that the Governor, in the 
discretion of the Governor, determines will be affected by the proposed 
program. If any comment by such Governor is received by the Secretary 
at least 15 days prior to submission to the Congress pursuant to 
paragraph (3) and includes a request for any modification of such 
proposed program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such request in 
such modified form as the Secretary considers appropriate, and stating 
the Secretary's reasons therefor. All such correspondence between the 
Secretary and the Governor of any affected State, together with any 
additional information and data relating thereto, shall accompany such 
proposed program when it is submitted to the Congress.''; and
          (3) by adding at the end the following:
  ``(i) Projection of State Adjacent Zone Resources and State and Local 
Government Shares of OCS Receipts.--Concurrent with the publication of 
the scoping notice at the beginning of the development of each 5-year 
outer Continental Shelf oil and gas leasing program, or as soon 
thereafter as possible, the Secretary shall--
          ``(1) provide to each Adjacent State a current estimate of 
        proven and potential oil and gas resources located within the 
        State's Adjacent Zone; and
          ``(2) provide to each Adjacent State, and coastal political 
        subdivisions thereof, a best-efforts projection of the OCS 
        Receipts that the Secretary expects will be shared with each 
        Adjacent State, and its coastal political subdivisions, using 
        the assumption that the unleased tracts within the State's 
        Adjacent Zone are fully made available for leasing, including 
        long-term projected OCS Receipts. In addition, the Secretary 
        shall include a macroeconomic estimate of the impact of such 
        leasing on the national economy and each State's economy, 
        including investment, jobs, revenues, personal income, and 
        other categories.''.

SEC. 11. COORDINATION WITH ADJACENT STATES.

  Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345) 
is amended--
          (1) in subsection (a) in the first sentence by inserting ``, 
        for any tract located within the Adjacent State's Adjacent 
        Zone,'' after ``government''; and
          (2) by adding the following:
  ``(f)(1) No Federal agency may permit or otherwise approve, without 
the concurrence of the Adjacent State, the construction of a crude oil 
or petroleum products (or both) pipeline within the part of the 
Adjacent State's Adjacent Zone that is withdrawn from oil and gas or 
natural gas leasing, except that such a pipeline may be approved, 
without such Adjacent State's concurrence, to pass through such 
Adjacent Zone if at least 50 percent of the production projected to be 
carried by the pipeline within its first 10 years of operation is from 
areas of the Adjacent State's Adjacent Zone.
  ``(2) No State may prohibit the construction within its Adjacent Zone 
or its State waters of a natural gas pipeline that will transport 
natural gas produced from the outer Continental Shelf. However, an 
Adjacent State may prevent a proposed natural gas pipeline landing 
location if it proposes two alternate landing locations in the Adjacent 
State, acceptable to the Adjacent State, located within 50 miles on 
either side of the proposed landing location.''.

SEC. 12. ENVIRONMENTAL STUDIES.

  Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1346) is amended--
          (1) by inserting ``(1)'' after ``(d)''; and
          (2) by adding at the end the following:
  ``(2) For all programs, lease sales, leases, and actions under this 
Act, the following shall apply regarding the application of the 
National Environmental Policy Act of 1969:
          ``(A) Granting or directing lease suspensions and the conduct 
        of all preliminary activities on outer Continental Shelf 
        tracts, including seismic activities, are categorically 
        excluded from the need to prepare either an environmental 
        assessment or an environmental impact statement, and the 
        Secretary shall not be required to analyze whether any 
        exceptions to a categorical exclusion apply for activities 
        conducted under the authority of this Act.
          ``(B) The environmental impact statement developed in support 
        of each 5-year oil and gas leasing program provides the 
        environmental analysis for all lease sales to be conducted 
        under the program and such sales shall not be subject to 
        further environmental analysis.
          ``(C) Exploration plans shall not be subject to any 
        requirement to prepare an environmental impact statement, and 
        the Secretary may find that exploration plans are eligible for 
        categorical exclusion due to the impacts already being 
        considered within an environmental impact statement or due to 
        mitigation measures included within the plan.
          ``(D) Within each OCS Planning Area, after the preparation of 
        the first development and production plan environmental impact 
        statement for a leased tract within the Area, future 
        development and production plans for leased tracts within the 
        Area shall only require the preparation of an environmental 
        assessment unless the most recent development and production 
        plan environmental impact statement within the Area was 
        finalized more than 10 years prior to the date of the approval 
        of the plan, in which case an environmental impact statement 
        shall be required.''.

SEC. 13. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION 
                    PLANS.

  Section 25 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1351(a)) is amended to read as follows:

``SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION 
                    PLANS.

  ``(a) Development and Production Plans; Submission to Secretary; 
Statement of Facilities and Operation; Submission to Governors of 
Affected States and Local Governments.--
          ``(1) Prior to development and production pursuant to an oil 
        and gas lease issued on or after September 18, 1978, for any 
        area of the outer Continental Shelf, or issued or maintained 
        prior to September 18, 1978, for any area of the outer 
        Continental Shelf, with respect to which no oil or gas has been 
        discovered in paying quantities prior to September 18, 1978, 
        the lessee shall submit a development and production plan 
        (hereinafter in this section referred to as a `plan') to the 
        Secretary for review.
          ``(2) A plan shall be accompanied by a statement describing 
        all facilities and operations, other than those on the outer 
        Continental Shelf, proposed by the lessee and known by the 
        lessee (whether or not owned or operated by such lessee) that 
        will be constructed or utilized in the development and 
        production of oil or gas from the lease area, including the 
        location and site of such facilities and operations, the land, 
        labor, material, and energy requirements associated with such 
        facilities and operations, and all environmental and safety 
        safeguards to be implemented.
          ``(3) Except for any privileged or proprietary information 
        (as such term is defined in regulations issued by the 
        Secretary), the Secretary, within 30 days after receipt of a 
        plan and statement, shall--
                  ``(A) submit such plan and statement to the Governor 
                of any affected State, and upon request to the 
                executive of any affected local government; and
                  ``(B) make such plan and statement available to any 
                appropriate interstate regional entity and the public.
  ``(b) Development and Production Activities in Accordance With Plan 
as Lease Requirement.--After enactment of the Deep Ocean Energy 
Resources Act of 2006, no oil and gas lease may be issued pursuant to 
this Act in any region of the outer Continental Shelf, unless such 
lease requires that development and production activities be carried 
out in accordance with a plan that complies with the requirements of 
this section. This section shall also apply to leases that do not have 
an approved development and production plan as of the date of enactment 
of the Deep Ocean Energy Resources Act of 2006.
  ``(c) Scope and Contents of Plan.--A plan may apply to more than one 
oil and gas lease, and shall set forth, in the degree of detail 
established by regulations issued by the Secretary--
          ``(1) the general work to be performed;
          ``(2) a description of all facilities and operations located 
        on the outer Continental Shelf that are proposed by the lessee 
        or known by the lessee (whether or not owned or operated by 
        such lessee) to be directly related to the proposed 
        development, including the location and size of such facilities 
        and operations, and the land, labor, material, and energy 
        requirements associated with such facilities and operations;
          ``(3) the environmental safeguards to be implemented on the 
        outer Continental Shelf and how such safeguards are to be 
        implemented;
          ``(4) all safety standards to be met and how such standards 
        are to be met;
          ``(5) an expected rate of development and production and a 
        time schedule for performance; and
          ``(6) such other relevant information as the Secretary may by 
        regulation require.
  ``(d) Completeness Review of the Plan.--
          ``(1) Prior to commencing any activity under a development 
        and production plan pursuant to any oil and gas lease issued or 
        maintained under this Act, the lessee shall certify that the 
        plan is consistent with the terms of the lease and that it is 
        consistent with all statutory and regulatory requirements in 
        effect on the date of issuance of the lease, and any 
        regulations promulgated under this Act related to the 
        conservation of resources after the date of lease issuance. The 
        plan shall include all required information and documentation 
        required under subsection (c).
          ``(2) The Secretary shall review the plan for completeness 
        within 30 days of submission. If the Secretary finds that the 
        plan is not complete, the Secretary shall notify the lessee 
        with a detailed explanation of such modifications of such plan 
        as are necessary to achieve completeness. The Secretary shall 
        have 30 days to review a modified plan for completeness.
  ``(e) Review for Consistency of the Plan.--
          ``(1) After a determination that a plan is complete, the 
        Secretary shall have 120 days to conduct a review of the plan, 
        to ensure that it is consistent with the terms of the lease, 
        and that it is consistent with all such statutory and 
        regulatory requirements applicable to the lease. The review 
        shall ensure that the plan is consistent with lease terms, and 
        statutory and regulatory requirements applicable to the lease, 
        related to national security or national defense, including any 
        military operating stipulations or other restrictions. The 
        Secretary shall seek the assistance of the Department of 
        Defense in the conduct of the review of any plan prepared under 
        this section for a lease containing military operating 
        stipulations or other restrictions and shall accept the 
        assistance of the Department of Defense in the conduct of the 
        review of any plan prepared under this section for any other 
        lease when the Secretary of Defense requests an opportunity to 
        participate in the review. If the Secretary finds that the plan 
        is not consistent, the Secretary shall notify the lessee with a 
        detailed explanation of such modifications of such plan as are 
        necessary to achieve consistency.
          ``(2) The Secretary shall have 120 days to review a modified 
        plan.
          ``(3) The lessee shall not conduct any activities under the 
        plan during any 120-day review period, or thereafter until the 
        plan has been modified to achieve compliance as so notified.
          ``(4) After review by the Secretary provided for by this 
        section, a lessee may operate pursuant to the plan without 
        further review or approval by the Secretary.
  ``(f) Review of Revision of the Approved Plan.--The lessee may submit 
to the Secretary any revision of a plan if the lessee determines that 
such revision will lead to greater recovery of oil and natural gas, 
improve the efficiency, safety, and environmental protection of the 
recovery operation, is the only means available to avoid substantial 
economic hardship to the lessee, or is otherwise not inconsistent with 
the provisions of this Act, to the extent such revision is consistent 
with protection of the human, marine, and coastal environments. The 
process to be used for the review of any such revision shall be the 
same as that set forth in subsections (d) and (e).
  ``(g) Cancellation of Lease on Failure to Submit Plan or Comply With 
a Plan.--Whenever the owner of any lease fails to submit a plan in 
accordance with regulations issued under this section, or fails to 
comply with a plan, the lease may be canceled in accordance with 
section 5(c) and (d). Termination of a lease because of failure to 
comply with a plan, including required modifications or revisions, 
shall not entitle a lessee to any compensation.
  ``(h) Production and Transportation of Natural Gas; Submission of 
Plan to Federal Energy Regulatory Commission; Impact Statement.--If any 
development and production plan submitted to the Secretary pursuant to 
this section provides for the production and transportation of natural 
gas, the lessee shall contemporaneously submit to the Federal Energy 
Regulatory Commission that portion of such plan that relates to the 
facilities for transportation of natural gas. The Secretary and the 
Federal Energy Regulatory Commission shall agree as to which of them 
shall prepare an environmental impact statement pursuant to the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
applicable to such portion of such plan, or conduct studies as to the 
effect on the environment of implementing it. Thereafter, the findings 
and recommendations by the agency preparing such environmental impact 
statement or conducting such studies pursuant to such agreement shall 
be adopted by the other agency, and such other agency shall not 
independently prepare another environmental impact statement or 
duplicate such studies with respect to such portion of such plan, but 
the Federal Energy Regulatory Commission, in connection with its review 
of an application for a certificate of public convenience and necessity 
applicable to such transportation facilities pursuant to section 7 of 
the Natural Gas Act (15 U.S.C. 717f), may prepare such environmental 
studies or statement relevant to certification of such transportation 
facilities as have not been covered by an environmental impact 
statement or studies prepared by the Secretary. The Secretary, in 
consultation with the Federal Energy Regulatory Commission, shall 
promulgate rules to implement this subsection, but the Federal Energy 
Regulatory Commission shall retain sole authority with respect to rules 
and procedures applicable to the filing of any application with the 
Commission and to all aspects of the Commission's review of, and action 
on, any such application.''.

SEC. 14. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT FUND ACT OF 2006.

  (a) Findings.--The Congress finds the following:
          (1) Energy and minerals exploration, development, and 
        production on Federal onshore and offshore lands, including 
        bio-based fuel, natural gas, minerals, oil, geothermal, and 
        power from wind, waves, currents, and thermal energy, involves 
        significant outlays of funds by Federal and State wildlife, 
        fish, and natural resource management agencies for 
        environmental studies, planning, development, monitoring, and 
        management of wildlife, fish, air, water, and other natural 
        resources.
          (2) State wildlife, fish, and natural resource management 
        agencies are funded primarily through permit and license fees 
        paid to the States by the general public to hunt and fish, and 
        through Federal excise taxes on equipment used for these 
        activities.
          (3) Funds generated from consumptive and recreational uses of 
        wildlife, fish, and other natural resources currently are 
        inadequate to address the natural resources related to energy 
        and minerals development on Federal onshore and offshore lands.
          (4) Funds available to Federal agencies responsible for 
        managing Federal onshore and offshore lands and Federal-trust 
        wildlife and fish species and their habitats are inadequate to 
        address the natural resources related to energy and minerals 
        development on Federal onshore and offshore lands.
          (5) Receipts derived from sales, bonus bids, and royalties 
        under the mineral leasing laws of the United States are paid to 
        the Treasury through the Minerals Management Service of the 
        Department of the Interior.
          (6) None of the receipts derived from sales, bonus bids, and 
        royalties under the minerals leasing laws of the United States 
        are paid to the Federal or State agencies to examine, monitor, 
        and manage wildlife, fish, air, water, and other natural 
        resources related to natural gas, oil, and mineral exploration 
        and development.
  (b) Purposes.--It is the purpose of this section to--
          (1) establish a fund for the monitoring and management of 
        wildlife and fish, and their habitats, and air, water, and 
        other natural resources related to energy and minerals 
        development on Federal onshore and offshore lands;
          (2) make available receipts derived from sales, bonus bids, 
        royalties, and fees from onshore and offshore gas, mineral, 
        oil, and any additional form of energy and minerals development 
        under the laws of the United States for the purposes of such 
        fund;
          (3) distribute funds from such fund each fiscal year to the 
        Secretary of the Interior and the States; and
          (4) use the distributed funds to secure the necessary trained 
        workforce or contractual services to conduct environmental 
        studies, planning, development, monitoring, and post-
        development management of wildlife and fish and their habitats 
        and air, water, and other natural resources that may be related 
        to bio-based fuel, gas, mineral, oil, wind, or other energy 
        exploration, development, transportation, transmission, and 
        associated activities on Federal onshore and offshore lands, 
        including, but not limited to--
                  (A) pertinent research, surveys, and environmental 
                analyses conducted to identify any impacts on wildlife, 
                fish, air, water, and other natural resources from 
                energy and mineral exploration, development, 
                production, and transportation or transmission;
                  (B) projects to maintain, improve, or enhance 
                wildlife and fish populations and their habitats or 
                air, water, or other natural resources, including 
                activities under the Endangered Species Act of 1973;
                  (C) research, surveys, environmental analyses, and 
                projects that assist in managing, including mitigating 
                either onsite or offsite, or both, the impacts of 
                energy and mineral activities on wildlife, fish, air, 
                water, and other natural resources; and
                  (D) projects to teach young people to live off the 
                land.
  (c) Definitions.--In this section:
          (1) Enhancement fund.--The term ``Enhancement Fund'' means 
        the Federal Energy Natural Resources Enhancement Fund 
        established by subsection (d).
          (2) State.--The term ``State'' means the Governor of the 
        State.
  (d) Establishment and Use of Federal Energy Natural Resources 
Enhancement Fund.--
          (1) Enhancement fund.--There is established in the Treasury a 
        separate account to be known as the ``Federal Energy Natural 
        Resources Enhancement Fund''.
          (2) Funding.--The Secretary of the Treasury shall deposit in 
        the Enhancement Fund--
                  (A) such sums as are provided by sections 
                9(b)(5)(A)(ii), 9(b)(5)(B)(ii), 9(c)(4)(A)(ii), and 
                9(c)(4)(B)(ii) of the Outer Continental Shelf Lands 
                Act, as amended by this Act;
                  (B)(i) during the period of October 1, 2006, through 
                September 30, 2015, one percent of all sums paid into 
                the Treasury under section 35 of the Mineral Leasing 
                Act (30 U.S.C. 191), and
                  (ii) beginning October 1, 2015, and thereafter, 2.5 
                percent of all sums paid into the Treasury under 
                section 35 of the Mineral Leasing Act (30 U.S.C. 191); 
                and
                  (C)(i) during the period of October 1, 2006, through 
                September 30, 2015, one percent of all sums paid into 
                the Treasury from receipts derived from bonus bids and 
                royalties from other mineral leasing on public lands, 
                and
                  (ii) beginning October 1, 2015, and thereafter, 2.5 
                percent of all sums paid into the Treasury from 
                receipts derived from bonus bids and royalties from 
                other mineral leasing on public lands.
          (3) Investments.--The Secretary of the Treasury shall invest 
        the amounts deposited under paragraph (2) and all accrued 
        interest on the amounts deposited under paragraph (2) only in 
        interest bearing obligations of the United States or in 
        obligations guaranteed as to both principal and interest by the 
        United States.
          (4) Payment to secretary of the interior.--
                  (A) In general.--Beginning with fiscal year 2007, and 
                in each fiscal year thereafter, one-third of amounts 
                deposited into the Enhancement Fund, together with the 
                interest thereon, shall be available, without fiscal 
                year limitations, to the Secretary of the Interior for 
                use for the purposes described in (b)(4).
                  (B) Withdrawals and transfer of funds.--The Secretary 
                of the Treasury shall withdraw such amounts from the 
                Enhancement Fund as the Secretary of the Interior may 
                request, subject to the limitation in (A), and transfer 
                such amounts to the Secretary of the Interior to be 
                used, at the discretion of the Secretary of the 
                Interior, by the Minerals Management Service, the 
                Bureau of Land Management, and the United States Fish 
                and Wildlife Service for use for the purposes described 
                in subsection (b)(4).
          (5) Payment to states.--
                  (A) In general.--Beginning with fiscal year 2007, and 
                in each fiscal year thereafter, two-thirds of amounts 
                deposited into the Enhancement Fund, together with the 
                interest thereon, shall be available, without fiscal 
                year limitations, to the States for use for the 
                purposes described in (b)(4).
                  (B) Withdrawals and transfer of funds.--Within the 
                first 90 days of each fiscal year, the Secretary of the 
                Treasury shall withdraw amounts from the Enhancement 
                Fund and transfer such amounts to the States based on 
                the proportion of all receipts that were collected the 
                previous fiscal year from Federal leases within the 
                boundaries of each State and each State's outer 
                Continental Shelf Adjacent Zone as determined in 
                accordance with section 4(a) of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1333(a)), as amended by this 
                Act.
                  (C) Use of payments by state.--Each State shall use 
                the payments made under subparagraph (B) only for 
                carrying out projects and programs for the purposes 
                described in (b)(4).
                  (D) Encourage use of private funds by state.--Each 
                State shall use the payments made under subparagraph 
                (B) to leverage private funds for carrying out projects 
                for the purposes described in (b)(4).
  (e) Limitation on Use.--Amounts available under this section may not 
be used for the purchase of any interest in land.
  (f) Reports to Congress.--
          (1) In general.--Beginning in fiscal year 2008 and continuing 
        for each fiscal year thereafter, the Secretary of the Interior 
        and each State receiving funds from the Enhancement Fund shall 
        submit a report to the Committee on Energy and Natural 
        Resources of the Senate and the Committee on Resources of the 
        House of Representatives.
          (2) Required information.--Reports submitted to the Congress 
        by the Secretary of the Interior and States under this 
        subsection shall include the following information regarding 
        expenditures during the previous fiscal year:
                  (A) A summary of pertinent scientific research and 
                surveys conducted to identify impacts on wildlife, 
                fish, and other natural resources from energy and 
                mineral developments.
                  (B) A summary of projects planned and completed to 
                maintain, improve or enhance wildlife and fish 
                populations and their habitats or other natural 
                resources.
                  (C) A list of additional actions that assist, or 
                would assist, in managing, including mitigating either 
                onsite or offsite, or both, the impacts of energy and 
                mineral development on wildlife, fish, and other 
                natural resources.
                  (D) A summary of private (non-Federal) funds used to 
                plan, conduct, and complete the plans and programs 
                identified in paragraphs (2)(A) and (2)(B).

SEC. 15. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF 
                    APPROPRIATED FUNDS FOR CERTAIN PURPOSES.

  All provisions of existing Federal law prohibiting the spending of 
appropriated funds to conduct oil and natural gas leasing and 
preleasing activities, or to issue a lease to any person, for any area 
of the outer Continental Shelf shall have no force or effect.

SEC. 16. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

  (a) In General.--No Federal agency may permit construction or 
operation (or both) of any facility, or designate or maintain a 
restricted transportation corridor or operating area on the Federal 
outer Continental Shelf or in State waters, that will be incompatible 
with, as determined by the Secretary of the Interior, oil and gas or 
natural gas leasing and substantially full exploration and production 
of tracts that are geologically prospective for oil or natural gas (or 
both).
  (b) Exceptions.--Subsection (a) shall not apply to any facility, 
transportation corridor, or operating area the construction, operation, 
designation, or maintenance of which is or will be--
          (1) located in an area of the outer Continental Shelf that is 
        unavailable for oil and gas or natural gas leasing by operation 
        of law;
          (2) used for a military readiness activity (as defined in 
        section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
          (3) required in the national interest, as determined by the 
        President.

SEC. 17. REPURCHASE OF CERTAIN LEASES.

  (a) Authority to Repurchase and Cancel Certain Leases.--The Secretary 
of the Interior shall repurchase and cancel any Federal oil and gas, 
geothermal, coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, if the Secretary finds that such lease qualifies 
for repurchase and cancellation under the regulations authorized by 
this section.
  (b) Regulations.--Not later than 365 days after the date of the 
enactment of this Act, the Secretary shall publish a final regulation 
stating the conditions under which a lease referred to in subsection 
(a) would qualify for repurchase and cancellation, and the process to 
be followed regarding repurchase and cancellation. Such regulation 
shall include, but not be limited to, the following:
          (1) The Secretary shall repurchase and cancel a lease after 
        written request by the lessee upon a finding by the Secretary 
        that--
                  (A) a request by the lessee for a required permit or 
                other approval complied with applicable law, except the 
                Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
                seq.), and terms of the lease and such permit or other 
                approval was denied;
                  (B) a Federal agency failed to act on a request by 
                the lessee for a required permit, other approval, or 
                administrative appeal within a regulatory or statutory 
                time-frame associated with the requested action, 
                whether advisory or mandatory, or if none, within 180 
                days; or
                  (C) a Federal agency attached a condition of 
                approval, without agreement by the lessee, to a 
                required permit or other approval if such condition of 
                approval was not mandated by Federal statute or 
                regulation in effect on the date of lease issuance, or 
                was not specifically allowed under the terms of the 
                lease.
          (2) A lessee shall not be required to exhaust administrative 
        remedies regarding a permit request, administrative appeal, or 
        other required request for approval for the purposes of this 
        section.
          (3) The Secretary shall make a final agency decision on a 
        request by a lessee under this section within 180 days of 
        request.
          (4) Compensation to a lessee to repurchase and cancel a lease 
        under this section shall be the amount that a lessee would 
        receive in a restitution case for a material breach of 
        contract.
          (5) Compensation shall be in the form of a check or 
        electronic transfer from the Department of the Treasury from 
        funds deposited into miscellaneous receipts under the authority 
        of the same Act that authorized the issuance of the lease being 
        repurchased.
          (6) Failure of the Secretary to make a final agency decision 
        on a request by a lessee under this section within 180 days of 
        request shall result in a 10 percent increase in the 
        compensation due to the lessee if the lease is ultimately 
        repurchased.
  (c) No Prejudice.--This section shall not be interpreted to prejudice 
any other rights that the lessee would have in the absence of this 
section.

SEC. 18. OFFSITE ENVIRONMENTAL MITIGATION.

  Notwithstanding any other provision of law, any person conducting 
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the 
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act 
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.), 
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying 
any mitigation requirements associated with such activities propose 
mitigation measures on a site away from the area impacted and the 
Secretary of the Interior shall accept these proposed measures if the 
Secretary finds that they generally achieve the purposes for which 
mitigation measures appertained.

SEC. 19. AMENDMENTS TO THE MINERAL LEASING ACT.

  Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is 
amended to read as follows:
  ``(g) Regulation of Surface-Disturbing Activities.--
          ``(1) Regulation of surface-disturbing activities.--The 
        Secretary of the Interior, or for National Forest lands, the 
        Secretary of Agriculture, shall regulate all surface-disturbing 
        activities conducted pursuant to any lease issued under this 
        Act, and shall determine reclamation and other actions as 
        required in the interest of conservation of surface resources.
          ``(2) Submission of exploration plan; completion review; 
        compliance review.--
                  ``(A) Prior to beginning oil and gas exploration 
                activities, a lessee shall submit an exploration plan 
                to the Secretary of the Interior for review.
                  ``(B) The Secretary shall review the plan for 
                completeness within 10 days of submission.
                  ``(C) In the event the exploration plan is determined 
                to be incomplete, the Secretary shall notify the lessee 
                in writing and specify the items or information needed 
                to complete the exploration plan.
                  ``(D) The Secretary shall have 10 days to review any 
                modified exploration plan submitted by the lessee.
                  ``(E) To be deemed complete, an exploration plan 
                shall include, in the degree of detail to be determined 
                by the Secretary by rule or regulation--
                          ``(i) a drilling plan containing a 
                        description of the drilling program;
                          ``(ii) the surface and projected completion 
                        zone location;
                          ``(iii) pertinent geologic data;
                          ``(iv) expected hazards, and proposed 
                        mitigation measures to address such hazards;
                          ``(v) a schedule of anticipated exploration 
                        activities to be undertaken;
                          ``(vi) a description of equipment to be used 
                        for such activities;
                          ``(vii) a certification from the lessee 
                        stating that the exploration plan complies with 
                        all lease, regulatory and statutory 
                        requirements in effect on the date of the 
                        issuance of the lease and any regulations 
                        promulgated after the date of lease issuance 
                        related to the conservation of resources;
                          ``(viii) evidence that the lessee has secured 
                        an adequate bond, surety, or other financial 
                        arrangement prior to commencement of any 
                        surface disturbing activity;
                          ``(ix) a plan that details the complete and 
                        timely reclamation of the lease tract; and
                          ``(x) such other relevant information as the 
                        Secretary may by regulation require.
                  ``(F) Upon a determination that the exploration plan 
                is complete, the Secretary shall have 30 days from the 
                date the plan is deemed complete to conduct a review of 
                the plan.
                  ``(G) If the Secretary finds the exploration plan is 
                not consistent with all statutory and regulatory 
                requirements described in subparagraph (E)(vii), the 
                Secretary shall notify the lessee with a detailed 
                explanation of such modifications of the exploration 
                plan as are necessary to achieve compliance.
                  ``(H) The lessee shall not take any action under the 
                exploration plan within a 30 day review period, or 
                thereafter until the plan has been modified to achieve 
                compliance as so notified.
                  ``(I) After review by the Secretary provided by this 
                subsection, a lessee may operate pursuant to the plan 
                without further review or approval by the Secretary.
          ``(3) Plan revisions; conduct of exploration activities.--
                  ``(A) If a significant revision of an exploration 
                plan under this subsection is submitted to the 
                Secretary, the process to be used for the review of 
                such revision shall be the same as set forth in 
                paragraph (1) of this subsection.
                  ``(B) All exploration activities pursuant to any 
                lease shall be conducted in accordance with an 
                exploration plan that has been submitted to and 
                reviewed by the Secretary or a revision of such plan.
          ``(4) Submission of development and production plan; 
        completeness review; compliance review.--
                  ``(A) Prior to beginning oil and gas development and 
                production activities, a lessee shall submit a 
                development and exploration plan to the Secretary of 
                the Interior. Upon submission, such plans shall be 
                subject to a review for completeness.
                  ``(B) The Secretary shall review the plan for 
                completeness within 30 days of submission.
                  ``(C) In the event a development and production plan 
                is determined to be incomplete, the Secretary shall 
                notify the lessee in writing and specify the items or 
                information needed to complete the plan.
                  ``(D) The Secretary shall have 30 days to review for 
                completeness any modified development and production 
                plan submitted by the lessee.
                  ``(E) To be deemed complete, a development and 
                production plan shall include, in the degree of detail 
                to be determined by the Secretary by rule or 
                regulation--
                          ``(i) a drilling plan containing a 
                        description of the drilling program;
                          ``(ii) the surface and projected completion 
                        zone location;
                          ``(iii) pertinent geologic data;
                          ``(iv) expected hazards, and proposed 
                        mitigation measures to address such hazards;
                          ``(v) a statement describing all facilities 
                        and operations proposed by the lessee and known 
                        by the lessee (whether or not owned or operated 
                        by such lessee) that shall be constructed or 
                        utilized in the development and production of 
                        oil or gas from the leases areas, including the 
                        location and site of such facilities and 
                        operations, the land, labor, material, and 
                        energy requirements associated with such 
                        facilities and operations;
                          ``(vi) the general work to be performed;
                          ``(vii) the environmental safeguards to be 
                        implemented in connection with the development 
                        and production and how such safeguards are to 
                        be implemented;
                          ``(viii) all safety standards to be met and 
                        how such standards are to be met;
                          ``(ix) an expected rate of development and 
                        production and a time schedule for performance;
                          ``(x) a certification from the lessee stating 
                        that the development and production plan 
                        complies with all lease, regulatory, and 
                        statutory requirements in effect on the date of 
                        issuance of the lease, and any regulations 
                        promulgated after the date of lease issuance 
                        related to the conservation of resources;
                          ``(xi) evidence that the lessee has secured 
                        an adequate bond, surety, or other financial 
                        arrangement prior to commencement of any 
                        surface disturbing activity;
                          ``(xii) a plan that details the complete and 
                        timely reclamation of the lease tract; and
                          ``(xiii) such other relevant information as 
                        the Secretary may by regulation require.
                  ``(F) Upon a determination that the development and 
                production plan is complete, the Secretary shall have 
                120 days from the date the plan is deemed complete to 
                conduct a review of the plan.
                  ``(G) If the Secretary finds the development and 
                production plan is not consistent with all statutory 
                and regulatory requirements described in subparagraph 
                (E)(x), the Secretary shall notify the lessee with a 
                detailed explanation of such modifications of the 
                development and production plan as are necessary to 
                achieve compliance.
                  ``(H) The lessee shall not take any action under the 
                development and production plan within a 120 day review 
                period, or thereafter until the plan has been modified 
                to achieve compliance as so notified.
          ``(5) Plan revisions; conduct of development and production 
        activities.--
                  ``(A) If a significant revision of a development and 
                production plan under this subsection is submitted to 
                the Secretary, the process to be used for the review of 
                such revision shall be the same as set forth in 
                paragraph (4) of this subsection.
                  ``(B) All development and production activities 
                pursuant to any lease shall be conducted in accordance 
                with a development and production plan that has been 
                submitted to and reviewed by the Secretary or a 
                revision of such plan.
          ``(6) Cancellation of lease on failure to submit plan or 
        comply with approved plan.--Whenever the owner of any lease 
        fails to submit a plan in accordance with regulations issued 
        under this section, or fails to comply with a plan, the lease 
        may be canceled in accordance with section 31. Termination of a 
        lease because of failure to comply with a plan, including 
        required modifications or revisions, shall not entitle a lessee 
        to any compensation.''.

SEC. 20. MINERALS MANAGEMENT SERVICE.

  The bureau known as the ``Minerals Management Service'' in the 
Department of the Interior shall be known as the ``National Ocean 
Resources and Royalty Service''.

SEC. 21. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS 
                    AND OTHER FACILITIES FOR ARTIFICIAL REEF, 
                    SCIENTIFIC RESEARCH, OR OTHER USES.

  (a) Short Title.--This section may be cited as the ``Rigs to Reefs 
Act of 2006''.
  (b) In General.--The Outer Continental Shelf Lands Act (43 U.S.C. 
1301 et seq.) is amended by inserting after section 9 the following:

``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND 
                    OTHER FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC 
                    RESEARCH, OR OTHER USES.

  ``(a) In General.--The Secretary shall issue regulations under which 
the Secretary may authorize use of an offshore oil and gas platform or 
other facility that is decommissioned from service for oil and gas 
purposes for an artificial reef, scientific research, or any other use 
authorized under section 8(p) or any other applicable Federal law.
  ``(b) Transfer Requirements.--The Secretary shall not allow the 
transfer of a decommissioned offshore oil and gas platform or other 
facility to another person unless the Secretary is satisfied that the 
transferee is sufficiently bonded, endowed, or otherwise financially 
able to fulfill its obligations, including but not limited to--
          ``(1) ongoing maintenance of the platform or other facility;
          ``(2) any liability obligations that might arise;
          ``(3) removal of the platform or other facility if determined 
        necessary by the Secretary; and
          ``(4) any other requirements and obligations that the 
        Secretary may deem appropriate by regulation.
  ``(c) Plugging and Abandonment.--The Secretary shall ensure that 
plugging and abandonment of wells is accomplished at an appropriate 
time.
  ``(d) Potential to Petition to Opt-Out of Regulations.--An Adjacent 
State acting through a resolution of its legislature, with concurrence 
of its Governor, may preliminarily petition to opt-out of the 
application of regulations promulgated under this section to platforms 
and other facilities located in the area of its Adjacent Zone within 12 
miles of the coastline. Upon receipt of the preliminary petition, the 
Secretary shall complete an environmental assessment that documents the 
anticipated environmental effects of approving the petition. The 
Secretary shall provide the environmental assessment to the State, 
which then has the choice of no action or confirming its petition by 
further action of its legislature, with the concurrence of its 
Governor. The Secretary is authorized to except such area from the 
application of such regulations, and shall approve any confirmed 
petition.
  ``(e) Limitation on Liability.--A person that had used an offshore 
oil and gas platform or other facility for oil and gas purposes and 
that no longer has any ownership or control of the platform or other 
facility shall not be liable under Federal law for any costs or damages 
arising from such platform or other facility after the date the 
platform or other facility is used for any purpose under subsection 
(a), unless such costs or damages arise from--
          ``(1) use of the platform or other facility by the person for 
        development or production of oil or gas; or
          ``(2) another act or omission of the person.
  ``(f) Other Leasing and Use not Affected.--This section, and the use 
of any offshore oil and gas platform or other facility for any purpose 
under subsection (a), shall not affect--
          ``(1) the authority of the Secretary to lease any area under 
        this Act; or
          ``(2) any activity otherwise authorized under this Act.''.
  (c) Deadline for Regulations.--The Secretary of the Interior shall 
issue regulations under subsection (b) by not later than 180 days after 
the date of the enactment of this Act.
  (d) Study and Report on Effects of Removal of Platforms.--Not later 
than one year after the date of enactment of this Act, the Secretary of 
the Interior, in consultation with other Federal agencies as the 
Secretary deems advisable, shall study and report to the Congress 
regarding how the removal of offshore oil and gas platforms and other 
facilities from the outer Continental Shelf would affect existing fish 
stocks and coral populations.

SEC. 22. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF 
                    OCS OIL AND NATURAL GAS RESOURCES.

  The Energy Policy Act of 2005 (Public Law 109-58) is amended--
          (1) by repealing section 357 (119 Stat. 720; 42 U.S.C. 
        15912); and
          (2) in the table of contents in section 1(b), by striking the 
        item relating to such section 357.

SEC. 23. MINING AND PETROLEUM SCHOOLS.

  (a) Federal Energy and Mineral Resources Professional Development 
Fund.--
          (1) Professional development fund.--There is established in 
        the Treasury a separate account to be known as the ``Federal 
        Energy And Mineral Resources Professional Development Fund'' 
        (in this section referred to as the ``Professional Development 
        Fund'').
          (2) Funding.--The Secretary of the Treasury shall deposit in 
        the Professional Development Fund--
                  (A) such sums as are provided by sections 
                9(b)(5)(A)(iii), 9(b)(5)(B)(iii), 9(c)(4)(A)(iii), and 
                9(c)(4)(B)(iii) of the Outer Continental Shelf Lands 
                Act, as amended by this Act;
                  (B)(i) during the period of October 1, 2006, through 
                September 30, 2015, one percent of all sums paid into 
                the Treasury under section 35 of the Mineral Leasing 
                Act (30 U.S.C. 191), and
                  (ii) beginning October 1, 2015, and thereafter, 2.5 
                percent of all sums paid into the Treasury under 
                section 35 of the Mineral Leasing Act (30 U.S.C. 191);
                  (C)(i) during the period of October 1, 2006, through 
                September 30, 2015, one percent of all sums paid into 
                the Treasury from receipts derived from bonus bids and 
                royalties from other mineral leasing on public lands, 
                and
                  (ii) beginning October 1, 2015, and thereafter, 2.5 
                percent of all sums paid into the Treasury from 
                receipts derived from bonus bids and royalties from 
                other mineral leasing on public lands;
                  (D) donations received under paragraph (4);
                  (E) amounts referred to in section 2325 of the 
                Revised Statutes; and
                  (F) funds received under section 10 of the Energy and 
                Mineral Schools Reinvestment Act, as amended by this 
                Act.
          (3) Investments.--The Secretary of the Treasury shall invest 
        the amounts deposited under paragraph (2) and all accrued 
        interest on the amounts deposited under paragraph (2) only in 
        interest bearing obligations of the United States or in 
        obligations guaranteed as to both principal and interest by the 
        United States.
          (4) Donations.--The Secretary of the Interior may solicit and 
        accept donations of funds for deposit into the Professional 
        Development Fund.
          (5) Availability to secretary of the interior.--
                  (A) In general.--Beginning with fiscal year 2007, and 
                in each fiscal year thereafter, the amounts deposited 
                into the Professional Development Fund, together with 
                the interest thereon, shall be available, without 
                fiscal year limitations, to the Secretary of the 
                Interior for use to carry out the Energy and Mineral 
                Schools Reinvestment Act.
                  (B) Withdrawals and transfer of funds.--The Secretary 
                of the Treasury shall withdraw such amounts from the 
                Professional Development Fund as the Secretary of the 
                Interior may request and transfer such amounts to the 
                Secretary of the Interior to be used, at the discretion 
                of the Secretary to carry out the Energy and Mineral 
                Schools Reinvestment Act.
  (b) Maintenance and Restoration of Existing and Historic Petroleum 
and Mining Engineering Programs.--Public Law 98-409 (30 U.S.C. 1221 et 
seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE.

  ``This Act may be cited as the `Energy and Mineral Schools 
Reinvestment Act'.

``SEC. 2. POLICY.

  ``It is the policy of the United States to maintain the human capital 
needed to preserve and foster the economic, energy, and mineral 
resources security of the United States. The petroleum and mining 
engineering programs and the applied geology and geophysics programs at 
State chartered schools, universities, and institutions that produce 
human capital are national assets and should be assisted with Federal 
funds to ensure their continued health and existence.

``SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING PETROLEUM AND 
                    MINING ENGINEERING EDUCATION PROGRAMS.

  ``(a) Using the funds in the Federal Energy And Mineral Resources 
Professional Development Fund, the Secretary of the Interior (in this 
Act referred to as the `Secretary') shall provide funds to each 
historic and existing State-chartered recognized petroleum or mining 
school to assist such schools, universities, and institutions in 
maintaining programs in petroleum, mining, and mineral engineering 
education and research. All funds shall be directed only to these 
programs and shall be subject to the conditions of this section. Such 
funds shall not be less than 33 percent of the annual outlay of funds 
under this Act.
  ``(b) In this Act the term `historic and existing State-chartered 
recognized petroleum or mining school' means a school, university, or 
educational institution with the presence of an engineering program 
meeting the specific program criteria, established by the member 
societies of ABET, Inc., for petroleum, mining, or mineral engineering 
and that is accredited on the date of enactment of the Deep Ocean 
Energy Resources Act of 2006 by ABET, Inc.
  ``(c) It shall be the duty of each school, university, or institution 
receiving funds under this section to provide for and enhance the 
training of undergraduate and graduate petroleum, mining, and mineral 
engineers through research, investigations, demonstrations, and 
experiments. All such work shall be carried out in a manner that will 
enhance undergraduate education.
  ``(d) Each school, university, or institution receiving funds under 
this Act shall maintain the program for which the funds are provided 
for 10 years after the date of the first receipt of such funds and take 
steps agreed to by the Secretary to increase the number of 
undergraduate students enrolled in and completing the programs of study 
in petroleum, mining, and mineral engineering.
  ``(e) The research, investigation, demonstration, experiment, and 
training authorized by this section may include development and 
production of conventional and non-conventional fuel resources, the 
production of metallic and non-metallic mineral resources including 
industrial mineral resources, and the production of stone, sand, and 
gravel. In all cases the work carried out with funds made available 
under this Act shall include a significant opportunity for 
participation by undergraduate students.
  ``(f) Research funded by this Act related to energy and mineral 
resource development and production may include studies of petroleum, 
mining, and mineral extraction and immediately related beneficiation 
technology; mineral economics, reclamation technology and practices for 
active operations, and the development of re-mining systems and 
technologies to facilitate reclamation that fosters the ultimate 
recovery of resources at abandoned petroleum, mining, and aggregate 
production sites.
  ``(g) Grants for basic science and engineering studies and research 
shall not require additional participation by funding partners. Grants 
for studies to demonstrate the proof of concept for science and 
engineering or the demonstration of feasibility and implementation 
shall include participation by industry and may include funding from 
other Federal agencies.
  ``(h)(1) No funds made available under this section shall be applied 
to the acquisition by purchase or lease of any land or interests 
therein, or the rental, purchase, construction, preservation, or repair 
of any building.
  ``(2) Funding made available under this section may be used with the 
express approval of the Secretary for proposals that will provide for 
maintaining or upgrading of existing laboratories and laboratory 
equipment. Funding for such maintenance shall not be used for 
university overhead expenses.
  ``(3) Funding made available under this Act may be used for 
maintaining and upgrading mines and oil and gas drilling rigs owned by 
a school, university, or institution described in this section that are 
used for undergraduate and graduate training and worker safety 
training. All requests for funding such mines and oil and gas drilling 
rigs must demonstrate that they have been owned by the school, 
university, or institution for 5 years prior to the date of enactment 
of the Deep Ocean Energy Resources Act of 2006 and have been actively 
used for instructional or training purposes during that time.
  ``(4) Any funding made available under this section for research, 
investigation, demonstration, experiment, or training shall not be used 
for university overhead charges in excess of 10 percent of the amount 
authorized by the Secretary.

``SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING PROGRAMS.

  ``A school, university, or educational institution that formerly met 
the requirements of section 3(b) immediately before the date of the 
enactment of the Deep Ocean Energy Resources Act of 2006, or that seeks 
to establish a new program described in section 3(b), shall be eligible 
for funding under this Act only if it--
          ``(1) establishes a petroleum, mining, or mineral engineering 
        program that meets the specific program criteria and is 
        accredited as such by ABET, Inc.;
          ``(2) agrees to the conditions of subsections (c) through (h) 
        of section 3 and the Secretary, as advised by the Committee 
        established by section 11, determines that the program will 
        strengthen and increase the number of nationally available, 
        well- qualified faculty members in petroleum, mining, and 
        mineral engineering; and
          ``(3) agrees to maintain the accredited program for 10 years 
        after the date of the first receipt of funds under this Act.

``SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING SCHOOLS.

  ``Where appropriate, the Secretary may make funds available to 
consortia of schools, universities, or institutions described in 
sections 3, 4, and 6, including those consortia that include schools, 
universities, or institutions that are ineligible for funds under this 
Act if those schools, universities, or institutions, respectively, have 
skills, programs, or facilities specifically identified as needed by 
the consortia to meet the necessary expenses for purposes of--
          ``(1) specific energy and mineral research projects of broad 
        application that could not otherwise be undertaken, including 
        the expenses of planning and coordinating regional petroleum, 
        geothermal, mining, and mineral engineering or beneficiation 
        projects by two or more schools; and
          ``(2) research into any aspects of petroleum, geothermal, 
        mining, or mineral engineering or beneficiation problems, 
        including but not limited to exploration, that are related to 
        the mission of the Department of the Interior and that are 
        considered by the Committee to be desirable.

``SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL RESOURCE PROGRAMS 
                    IN PETROLEUM AND MINERAL EXPLORATION GEOLOGY, 
                    PETROLEUM GEOPHYSICS, OR MINING GEOPHYSICS.

  ``(a) Twenty percent of the annual outlay of funds under this Act may 
be granted to schools, universities, and institutions other than those 
described in sections 3 and 4.
  ``(b) The Secretary, as advised by the Committee established by 
section 11, shall determine the eligibility of a college or university 
to receive funding under this Act using criteria that include--
          ``(1) the presence of a substantial program of undergraduate 
        and graduate geoscience instruction and research in one or more 
        of the following specialties: petroleum geology, geothermal 
        geology, mineral exploration geology, economic geology, 
        industrial minerals geology, mining geology, petroleum 
        geophysics, mining geophysics, geological engineering, or 
        geophysical engineering that has a demonstrated history of 
        achievement;
          ``(2) evidence of institutional commitment for the purposes 
        of this Act that includes a significant opportunity for 
        participation by undergraduate students in research;
          ``(3) evidence that such school, university, or institution 
        has or can obtain significant industrial cooperation in 
        activities within the scope of this Act;
          ``(4) agreement by the school, university, or institution to 
        maintain the programs for which the funding is sought for the 
        10-year period beginning on the date the school, university, or 
        institution first receives such funds; and
          ``(5) requiring that such funding shall be for the purposes 
        set forth in subsections (c) through (h) of section 3 and 
        subject to the conditions set forth in section 3(h).

``SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.

  ``(a) The Secretary shall utilize 19 percent of the annual outlay of 
funds under this Act for the purpose of providing merit-based 
scholarships for undergraduate education, graduate fellowships, and 
postdoctoral fellowships.
  ``(b) In order to receive a scholarship or a graduate fellowship, an 
individual student must be a lawful permanent resident of the United 
States or a United States citizen and must agree in writing to complete 
a course of studies and receive a degree in petroleum, mining, or 
mineral engineering, petroleum geology, geothermal geology, mining and 
economic geology, petroleum and mining geophysics, or mineral 
economics.
  ``(c) The regulations required by section 9 shall require that an 
individual, in order to retain a scholarship or graduate fellowship, 
must continue in one of the course of studies listed in subsection (b) 
of this section, must remain in good academic standing, as determined 
by the school, institution, or university and must allow for 
reinstatement of the scholarship or graduate fellowship by the 
Secretary, upon the recommendation of the school or institution. Such 
regulations may also provide for recovery of funds from an individual 
who fails to complete any of the courses of study listed in subsection 
(b) of this section after notice that such completion is a requirement 
of receipt funding under this Act.

``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.

  ``(a) Each application for funds under this Act shall state, among 
other things, the nature of the project to be undertaken; the period 
during which it will be pursued; the qualifications of the personnel 
who will direct and conduct it; the estimated costs; the importance of 
the project to the Nation, region, or States concerned; its relation to 
other known research projects theretofore pursued or being pursued; the 
extent to which the proposed project will maximize the opportunity for 
the training of undergraduate petroleum, mining, and mineral engineers; 
geologists and geophysicists; and the extent of participation by 
nongovernmental sources in the project.
  ``(b) No funds shall be made available under this Act except for a 
project approved by the Secretary. All funds shall be made available 
upon the basis of merit of the project, the need for the knowledge that 
it is expected to produce when completed, and the opportunity it 
provides for the undergraduate training of individuals as petroleum, 
mining, and mineral engineers, geologists, and geophysicists.
  ``(c) Funds available under this Act shall be paid at such times and 
in such amounts during each fiscal year as determined by the Secretary, 
and upon vouchers approved by the Secretary. Each school, university, 
or institution that receives funds under this Act shall--
          ``(1) establish its plan to provide for the training of 
        individuals as petroleum, mining, and mineral engineers, 
        geologists, and geophysicists under a curriculum appropriate to 
        the field of mineral resources and mineral engineering and 
        related fields;
          ``(2) establish policies and procedures that assure that 
        Federal funds made available under this Act for any fiscal year 
        will supplement and, to the extent practicable, increase the 
        level of funds that would, in the absence of such Federal 
        funds, be made available for purposes of this Act, and in no 
        case supplant such funds; and
          ``(3) have an officer appointed by its governing authority 
        who shall receive and account for all funds paid under this Act 
        and shall make an annual report to the Secretary on or before 
        the first day of September of each year, on work accomplished 
        and the status of projects underway, together with a detailed 
        statement of the amounts received under this Act during the 
        preceding fiscal year, and of its disbursements on schedules 
        prescribed by the Secretary.
  ``(d) If any of the funds received by the authorized receiving 
officer of a program under this Act are found by the Secretary to have 
been improperly diminished, lost, or misapplied, such funds shall be 
recovered by the Secretary.
  ``(e) Schools, universities, and institutions receiving funds under 
this Act are authorized and encouraged to plan and conduct programs 
under this Act in cooperation with each other and with such other 
agencies, business enterprises and individuals.

``SEC. 9. DUTIES OF SECRETARY.

  ``(a) The Secretary, acting through the Assistant Secretary for Land 
and Minerals Management, shall administer this Act and shall prescribe 
such rules and regulations as may be necessary to carry out its 
provisions not later than 1 year after the enactment of the Deep Ocean 
Energy Resources Act of 2006.
  ``(b)(1) There is established in the Department of the Interior, 
under the supervision of the Assistant Secretary for Land and Minerals 
Management, an office to be known as the Office of Petroleum and Mining 
Schools (hereafter in this Act referred to as the `Office') to 
administer the provisions of this Act. There shall be a Director of the 
Office who shall be a member of the Senior Executive Service. The 
position of the Director shall be allocated from among the existing 
Senior Executive Service positions at the Department of the Interior 
and shall be a career reserved position as defined in section 
3132(a)(8) of title 5, United States Code.
  ``(2) The Director is authorized to appoint a Deputy Director and to 
employ such officers and employees as may be necessary to enable the 
Office to carry out its functions, not to exceed fifteen. Such 
appointments shall be made from existing positions at the Department of 
the Interior, and shall be subject to the provisions of title 5, United 
States Code, governing appointments in the competitive service. Such 
positions shall be paid in accordance with the provisions of chapter 51 
and subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates.
  ``(3) In carrying out his or her functions, the Director shall assist 
and advise the Secretary and the Committee established by section 11 of 
this Act by
          ``(A) providing professional and administrative staff support 
        for the Committee including recordkeeping and maintaining 
        minutes of all Committee and subcommittee meetings;
          ``(B) coordinating the activities of the Committee with 
        Federal agencies and departments, and the schools, 
        universities, and institutions to which funds are provided 
        under this Act;
          ``(C) maintaining accurate records of funds disbursed for all 
        scholarships, fellowships, research grants, and grants for 
        career technical education purposes;
          ``(D) preparing any regulations required to implement this 
        Act;
          ``(E) conducting site visits at schools, universities, and 
        institutions receiving funding under this Act; and
          ``(F) serving as a central repository for reports and 
        clearing house for public information on research funded by 
        this Act.
  ``(4) The Director or an employee of the Office shall be present at 
each meeting of the Committee established by section 11 or a 
subcommittee of such Committee.
  ``(5) The Director is authorized to contract with public or private 
agencies, institutions, and organizations and with individuals without 
regard to section 3324(a) and (b) of title 31, United States Code, and 
section 5 of title 41, United States Code, in carrying out his or her 
functions.
  ``(6) As needed the Director shall ascertain whether the requirements 
of this Act have been met by schools, universities, institutions, and 
individuals, including the payment of any revenues derived from patents 
into the fund created by section 23(a) of this Act as required by 
section 10(d).
  ``(c) The Secretary, acting through the Office of Petroleum and 
Mining Schools, shall furnish such advice and assistance as will best 
promote the purposes of this Act, shall participate in coordinating 
research, investigations, demonstrations, and experiments initiated 
under this Act, shall indicate to schools, universities, and 
institutions receiving funds under this Act such lines of inquiry that 
seem most important, and shall encourage and assist in the 
establishment and maintenance of cooperation between such schools, 
universities, and institutions, other research organizations, the 
Department of the Interior, and other Federal agencies.
  ``(d) The Secretary shall establish procedures--
          ``(1) to ensure that each employee and contractor of the 
        Office established by this section and each member of the 
        committee established by section 11 of this Act shall disclose 
        to the Secretary any financial interests in or financial 
        relationships with schools, universities, institutions or 
        individuals receiving funds, scholarships or fellowships under 
        this Act;
          ``(2) to require any employee, contractor, or member of the 
        committee with a financial relationship disclosed under 
        paragraph (1) to recuse themselves from--
                  ``(A) any recommendation or decision regarding the 
                awarding of funds, scholarships or fellowships; or
                  ``(B) any review, report, analysis or investigation 
                regarding compliance with the provisions of this Act by 
                a school, university, institution or any individual.
  ``(e) On or before the first day of July of each year beginning after 
the date of enactment of this sentence, schools, universities, and 
institutions receiving funds under this Act shall certify compliance 
with this Act and upon request of the Director of the office 
established by this section provide documentation of such compliance.
  ``(f) An individual granted a scholarship or fellowship with funds 
provided under this Act shall through their respective school, 
university, or institution, advise the Director of the office 
established by this Act of progress towards completion of the course of 
studies and upon the awarding of the degree within 30 days after the 
award.
  ``(g) The regulations required by this section shall include a 
preference for veterans and service members who have received or will 
receive either the Afghanistan Campaign Medal or the Iraq Campaign 
Medal as authorized by Public Law 108-234, and Executive Order 13363.

``SEC. 10. COORDINATION.

  ``(a) Nothing in this Act shall be construed to impair or modify the 
legal relationship existing between any of the schools, universities, 
and institutions under whose direction a program is established with 
funds provided under this Act and the government of the State in which 
it is located. Nothing in this Act shall in any way be construed to 
authorize Federal control or direction of education at any school, 
university, or institution.
  ``(b) The programs authorized by this Act are intended to enhance the 
Nation's petroleum, mining, and mineral engineering education programs 
and to enhance educational programs in petroleum and mining exploration 
and to increase the number of individuals enrolled in and completing 
these programs. To achieve this intent, the Secretary and the Committee 
established by section 11 shall receive the continuing advice and 
cooperation of all agencies of the Federal Government concerned with 
the identification, exploration, and development of energy and mineral 
resources.
  ``(c) Nothing in this Act is intended to give or shall be construed 
as giving the Secretary any authority over mining and mineral resources 
research conducted by any agency of the Federal Government, or as 
repealing or diminishing existing authorities or responsibilities of 
any agency of the Federal Government to plan and conduct, contract for, 
or assist in research in its area of responsibility and concern with 
regard to mining and mineral resources.
  ``(d) The schools, universities, and institutions receiving funding 
under this Act shall make detailed reports to the Office of Petroleum 
and Mining Schools on projects completed, in progress, or planned with 
funds provided under this Act. All such reports shall available to the 
public on not less than an annual basis through the Office of Petroleum 
and Mining Schools. All uses, products, processes, patents, and other 
developments resulting from any research, demonstration, or experiment 
funded in whole or in part under this Act shall be made available 
promptly to the general public, subject to exception or limitation, if 
any, as the Secretary may find necessary in the interest of national 
security. Schools, universities, and institutions receiving patents for 
inventions funded in whole or in part under this Act shall be governed 
by the applicable Federal law, except that one percent of gross annual 
revenues due to the holders of the patents that are derived from such 
patents shall be paid by the holders of the patents to the Federal 
Energy and Mineral Resources Professional Development Fund established 
by section 23(a) of the Deep Ocean Energy Resources Act of 2006.

``SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL ENGINEERING AND 
                    ENERGY AND MINERAL RESOURCE EDUCATION.

  ``(a) The Secretary shall appoint a Committee on Petroleum, Mining, 
and Mineral Engineering and Energy and Mineral Resource Education 
composed of--
          ``(1) the Assistant Secretary of the Interior responsible for 
        land and minerals management and not more than 16 other persons 
        who are knowledgeable in the fields of mining and mineral 
        resources research, including 2 university administrators one 
        of whom shall be from historic and existing petroleum and 
        mining schools; a community, technical, or tribal college 
        administrator; a career technical education educator; 6 
        representatives equally distributed from the petroleum, mining, 
        and aggregate industries; a working miner; a working oilfield 
        worker; a representative of the Interstate Oil and Gas Compact 
        Commission; a representative from the Interstate Mining Compact 
        Commission; a representative from the Western Governors 
        Association; a representative of the State geologists, and a 
        representative of a State mining and reclamation agency. In 
        making these 16 appointments, the Secretary shall consult with 
        interested groups.
          ``(2) The Assistant Secretary for Land and Minerals 
        Management, in the capacity of the Chairman of the Committee, 
        may have present during meetings of the Committee 
        representatives of Federal agencies with responsibility for 
        energy and minerals resources management, energy and mineral 
        resource investigations, energy and mineral commodity 
        information, international trade in energy and mineral 
        commodities, mining safety regulation and mine safety research, 
        and research into the development, production, and utilization 
        of energy and mineral commodities. These representatives shall 
        serve as technical advisors to the committee and shall have no 
        voting responsibilities.
  ``(b) The Committee shall consult with, and make recommendations to, 
the Secretary on all matters relating to funding energy and mineral 
resources research, the awarding of scholarships and fellowships and 
allocation of funding made under this Act. The Secretary shall consult 
with and carefully consider recommendations of the Committee in such 
matters.
  ``(c) Committee members, other than officers or employees of Federal, 
State, or local governments, shall be, for each day (including 
traveltime) during which they are performing Committee business, paid 
at a rate fixed by the Secretary but not in excess of the daily 
equivalent of the maximum rate of pay for level IV of the Executive 
Schedule under section 5136 of title 5, United States Code, and shall 
be fully reimbursed for travel, subsistence, and related expenses.
  ``(d) The Committee shall be chaired by the Assistant Secretary of 
the Interior responsible for land and minerals management. There shall 
also be elected a Vice Chairman by the Committee from among the members 
referred to in this section. The Vice Chairman shall perform such 
duties as are determined to be appropriate by the committee, except 
that the Chairman of the Committee must personally preside at all 
meetings of the full Committee. The Committee may organize itself into 
such subcommittees as the Committee may deem appropriate.
  ``(e) Following completion of the report required by section 385 of 
the Energy Policy Act of 2005, the Committee shall consider the 
recommendations of the report, ongoing efforts in the schools, 
universities, and institutions receiving funding under this Act, the 
Federal and State Governments, and the private sector, and shall 
formulate and recommend to the Secretary a national plan for a program 
utilizing the fiscal resources provided under this Act. The Committee 
shall submit such plan to the Secretary for approval. Upon approval, 
the plan shall guide the Secretary and the Committee in their actions 
under this Act.
  ``(f) Section 10 of the Federal Advisory Committee Act (5 U.S.C. App. 
2) shall not apply to the Committee.

``SEC. 12. CAREER TECHNICAL EDUCATION.

  ``(a) Up to 25 percent of the annual outlay of funds under this Act 
may be granted to schools or institutions including, but not limited 
to, colleges, universities, community colleges, tribal colleges, 
technical institutes, and secondary schools, other than those described 
in sections 3, 4, 5, and 6.
  ``(b) The Secretary, as advised by the Committee established under 
section 11, shall determine the eligibility of a school or institution 
to receive funding under this section using criteria that include--
          ``(1) the presence of a State-approved program in mining 
        engineering technology, petroleum engineering technology, 
        industrial engineering technology, or industrial technology 
        that--
                  ``(A) is focused on technology and its use in energy 
                and mineral production and related maintenance, 
                operational safety, or energy infrastructure protection 
                and security;
                  ``(B) prepares students for advanced or supervisory 
                roles in the mining industry or the petroleum industry; 
                and
                  ``(C) grants either an associate's degree or a 
                baccalaureate degree in one of the subjects listed in 
                subparagraph (A);
          ``(2) the presence of a program, including a secondary school 
        vocational education program or career academy, that provides 
        training for individuals entering the petroleum, coal mining, 
        or mineral mining industries; or
          ``(3) the presence of a State-approved program of career 
        technical education at a secondary school, offered 
        cooperatively with a community college in one of the industrial 
        sectors of--
                  ``(A) agriculture, forestry, or fisheries;
                  ``(B) utilities;
                  ``(C) construction;
                  ``(D) manufacturing; and
                  ``(E) transportation and warehousing.
  ``(c) Schools or institutions receiving funds under this section must 
show evidence of an institutional commitment for the purposes of career 
technical education and provide evidence that the school or institution 
has received or will receive industry cooperation in the form of 
equipment, employee time, or donations of funds to support the 
activities that are within the scope of this section.
  ``(d) Schools or institutions receiving funds under this section must 
agree to maintain the programs for which the funding is sought for a 
period of 10 years beginning on the date the school or institution 
receives such funds, unless the Secretary finds that a shorter period 
of time is appropriate for the local labor market or is required by 
State authorities.
  ``(e) Schools or institutions receiving funds under this section may 
combine these funds with State funds, and other Federal funds where 
allowed by law, to carry out programs described in this section, 
however the use of the funds received under this section must be 
reported to the Secretary not less than annually.

``SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE ENHANCEMENT.

  ``(a) Physical Science, Engineering and Technology Scholarship 
Program.--
          ``(1) From the funds made available to carry out this 
        section, the Secretary shall use 30 percent of that amount to 
        provide financial assistance for education in physical 
        sciences, engineering, and engineering or industrial technology 
        and disciplines that, as determined by the Secretary, are 
        critical to the functions of the Department of the Interior and 
        are needed in the Department of the Interior workforce.
          ``(2) The Secretary of the Interior may award a scholarship 
        in accordance with this section to a person who--
                  ``(A) is a citizen of the United States;
                  ``(B) is pursuing an undergraduate or advanced degree 
                in a critical skill or discipline described in 
                paragraph (1) at an institution of higher education; 
                and
                  ``(C) enters into a service agreement with the 
                Secretary of the Interior as described in subsection 
                (e).
          ``(3) The amount of the financial assistance provided under a 
        scholarship awarded to a person under this subsection shall be 
        the amount determined by the Secretary of the Interior as being 
        necessary to pay all educational expenses incurred by that 
        person, including tuition, fees, cost of books, laboratory 
        expenses, and expenses of room and board. The expenses paid, 
        however, shall be limited to those educational expenses 
        normally incurred by students at the institution of higher 
        education involved.
  ``(b) Scholarship Program for Students Attending Minority Serving 
Higher Education Institutions.--
          ``(1) From the funds made available to carry out this 
        section, the Secretary shall use 25 percent of that amount to 
        award scholarships in accordance with this section to persons 
        who--
                  ``(A) are enrolled in a Minority Serving Higher 
                Education Institutions.
                  ``(B) are citizens of the United States;
                  ``(C) are pursuing an undergraduate or advanced 
                degree in agriculture, engineering, engineering or 
                industrial technology, or physical sciences, or other 
                discipline that is found by the Secretary to be 
                critical to the functions of the Department of the 
                Interior and are needed in the Department of the 
                Interior workforce; and
                  ``(D) enter into a service agreement with the 
                Secretary of the Interior as described in subsection 
                (e).
          ``(2) The amount of the financial assistance provided under a 
        scholarship awarded to a person under this subsection shall be 
        the amount determined by the Secretary of the Interior as being 
        necessary to pay all educational expenses incurred by that 
        person, including tuition, fees, cost of books, laboratory 
        expenses, and expenses of room and board. The expenses paid, 
        however, shall be limited to those educational expenses 
        normally incurred by students at the institution of higher 
        education involved.
  ``(c) Education Partnerships With Minority Serving Higher Education 
Institutions.--
          ``(1) The Secretary shall require the director of each Bureau 
        and Office, to foster the participation of Minority Serving 
        Higher Education Institutions in any regulatory activity, land 
        management activity, science activity, engineering or 
        industrial technology activity, or engineering activity carried 
        out by the Department of the Interior.
          ``(2) From the funds made available to carry out this 
        section, the Secretary shall use 25 percent of that amount to 
        support activities at Minority Serving Higher Education 
        Institutions by--
                  ``(A) funding faculty and students in these 
                institutions in collaborative research projects that 
                are directly related to the Departmental or Bureau 
                missions;
                  ``(B) allowing equipment transfer to Minority Serving 
                Higher Education Institutions as a part of a 
                collaborative research program directly related to a 
                Departmental or Bureau mission;
                  ``(C) allowing faculty and students at these Minority 
                Serving Higher Education Institutions to participate 
                Departmental and Bureau training activities;
                  ``(D) funding paid internships in Departmental and 
                Bureau facilities for students at Minority Serving 
                Higher Education Institutions;
                  ``(E) assigning Departmental and Bureau personnel to 
                positions located at Minority Serving Higher 
                Educational Institutions to serve as mentors to 
                students interested in a science, technology or 
                engineering disciplines related to the mission of the 
                Department or the Bureaus.
  ``(d) Kindergarten Through Grade Twelve Science Education Enhancement 
Program.--
          ``(1) From the funds made available to carry out this 
        section, the Secretary shall use 20 percent of that amount to 
        support activities designed to enhance the knowledge and 
        expertise of teachers of basic sciences, mathematics, 
        engineering and technology in Kindergarten through Grade Twelve 
        programs.
          ``(2) The Secretary is authorized to--
                  ``(A) support competitive events for students under 
                the supervision of teachers that are designed to 
                encourage student interest and knowledge in science, 
                engineering, technology and mathematics;
                  ``(B) support competitively-awarded, peer-reviewed 
                programs to promote professional development for 
                mathematics, science, engineering and technology 
                teachers who teach in grades from kindergarten through 
                grade 12;
                  ``(C) support summer internships at Department 
                facilities, for mathematics, science, engineering and 
                technology teachers who teach in grades from 
                kindergarten through grade 12; and
                  ``(D) sponsor and assist in sponsoring educational 
                and teacher training activities in subject areas 
                identified as critical skills.
  ``(e) Service Agreement for Recipients of Assistance.--
          ``(1) To receive financial assistance under subsection (a) 
        and subsection (b) of this section--
                  ``(A) in the case of an employee of the Department of 
                the Interior, the employee shall enter into a written 
                agreement to continue in the employment of the 
                department for the period of obligated service 
                determined under paragraph (2); and
                  ``(B) in the case of a person not an employee of the 
                Department of the Interior, the person shall enter into 
                a written agreement to accept and continue employment 
                in the Department of the Interior for the period of 
                obligated service determined under paragraph (2).
          ``(2) For the purposes of this section, the period of 
        obligated service for a recipient of a scholarship under this 
        section shall be the period determined by the Secretary of the 
        Interior as being appropriate to obtain adequate service in 
        exchange for the financial assistance provided under the 
        scholarship. In no event may the period of service required of 
        a recipient be less than the total period of pursuit of a 
        degree that is covered by the scholarship. The period of 
        obligated service is in addition to any other period for which 
        the recipient is obligated to serve in the civil service of the 
        United States.
          ``(3) An agreement entered into under this subsection by a 
        person pursuing an academic degree shall include any terms and 
        conditions that the Secretary of the Interior determines 
        necessary to protect the interests of the United States or 
        otherwise appropriate for carrying out this section.
  ``(f) Refund for Period of Unserved Obligated Service.--
          ``(1) A person who voluntarily terminates service before the 
        end of the period of obligated service required under an 
        agreement entered into under subsection (e) shall refund to the 
        United States an amount determined by the Secretary of the 
        Interior as being appropriate to obtain adequate service in 
        exchange for financial assistance.
          ``(2) An obligation to reimburse the United States imposed 
        under paragraph (1) is for all purposes a debt owed to the 
        United States.
          ``(3) The Secretary of the Interior may waive, in whole or in 
        part, a refund required under paragraph (1) if the Secretary 
        determines that recovery would be against equity and good 
        conscience or would be contrary to the best interests of the 
        United States.
          ``(4) A discharge in bankruptcy under title 11, United States 
        Code, that is entered less than five years after the 
        termination of an agreement under this section does not 
        discharge the person signing such agreement from a debt arising 
        under such agreement or under this subsection.
  ``(g) Relationship to Other Programs.--The Secretary of the Interior 
shall coordinate the provision of financial assistance under the 
authority of this section with the provision of financial assistance 
under the authorities provided in this Act in order to maximize the 
benefits derived by the Department of Interior from the exercise of all 
such authorities.
  ``(h) Report.--Not later than September 1 of each year, the Secretary 
of the Interior shall submit to the Committee on Resources of the House 
of Representatives and the Committee on Energy and Natural Resources of 
the Senate a report on the status of the assistance program carried out 
under this section. The report shall describe the programs within the 
Department designed to recruit and retain a workforce on a short-term 
basis and on a long-term basis.
  ``(i) Definitions.--As used in this section:
          ``(1) The term `Minority Serving Higher Education 
        Institutions' means a Hispanic-serving institution, 
        historically Black college or university, Alaska Native-serving 
        institution, or tribal college.
          ``(2) The term `Hispanic-serving institution' has the meaning 
        given the term in section 502(a) of the Higher Education Act of 
        1965 (20 U.S.C. 1101a(a)).
          ``(3) The term `historically Black college or university' has 
        the meaning given the term `part B institution' in section 322 
        of the Higher Education Act of 1965 (20 U.S.C. 1061).
          ``(4) The term `tribal college' has the meaning given the 
        term `tribally controlled college or university' in section 
        2(a) of the Tribally Controlled College Assistance Act of 1978 
        (25 U.S.C. 1801(a)).
          ``(5) The term `institution of higher education' has the 
        meaning given such term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001).
          ``(6) The term `Alaska Native-serving institution' has the 
        meaning given the term in section 317 of the Higher Education 
        Act of 1965 (20 U.S.C. 1059d).
  ``(j) Funding.--The Secretary shall spend 3 percent of the annual 
outlay under this Act to implement this section not to exceed 
$10,000,000.''.

SEC. 24. ONSHORE AND OFFSHORE MINERAL LEASE FEES.

  Except as otherwise provided in this Act, the Department of the 
Interior is prohibited from charging fees applicable to actions on 
Federal onshore and offshore oil and gas, coal, geothermal, and other 
mineral leases, including transportation of any production from such 
leases, if such fees were not established in final regulations prior to 
the date of issuance of the lease.

SEC. 25. OCS REGIONAL HEADQUARTERS.

  The headquarters for the Gulf of Mexico Region shall permanently be 
located within the State of Louisiana within 25 miles of the center of 
Jackson Square, New Orleans, Louisiana. Further, not later than July 1, 
2008, the Secretary of the Interior shall establish the headquarters 
for the Atlantic OCS Region and the headquarters for the Pacific OCS 
Region within a State bordering the Atlantic OCS Region and a State 
bordering the Pacific OCS Region, respectively, from among the States 
bordering those Regions, that petitions by no later than January 1, 
2008, for leasing, for oil and gas or natural gas, covering at least 40 
percent of the area of its Adjacent Zone within 100 miles of the 
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be 
located within 25 miles of the coastline and each MMS OCS regional 
headquarters shall be the permanent duty station for all Minerals 
Management Service personnel that on a daily basis spend on average 60 
percent or more of their time in performance of duties in support of 
the activities of the respective Region, except that the Minerals 
Management Service may house regional inspection staff in other 
locations. Each OCS Region shall each be led by a Regional Director who 
shall be an employee within the Senior Executive Service.

SEC. 26. NATIONAL GEO FUND ACT OF 2006.

  (a) Short Title.--This section may be cited as the ``National Geo 
Fund Act of 2006''.
  (b) Purposes.--The purpose of this section is to--
          (1) establish a fund to provide funding for the management of 
        geologic programs, geologic mapping, geophysical and other 
        seismic studies, seismic monitoring programs, and the 
        preservation and use of geologic and geophysical data, 
        geothermal and geopressure energy resource management, 
        unconventional energy resources management, and renewable 
        energy management associated with ocean wave, current, and 
        thermal resources;
          (2) make available receipts derived from sales, bonus bids, 
        royalties, and fees from onshore and offshore gas, minerals, 
        oil, and any additional form of energy exploration and 
        development under the laws of the United States for the 
        purposes of the such fund;
          (3) distribute funds from such fund each fiscal year to the 
        Secretary of the Interior and the States; and
          (4) use the distributed funds to manage activities conducted 
        under this section, and to secure the necessary trained 
        workforce, contractual services, and other support, including 
        maintenance and capital investments, to perform the functions 
        and activities described in paragraph (1).
  (c) Definitions.--In this section:
          (1) Geo fund.--The term ``Geo Fund'' means the National Geo 
        Fund established by subsection (d).
          (2) State.--The term ``State'' means the agency of a State 
        designated by its Governor or State law to perform the 
        functions and activities described in subsection (b)(1).
  (d) Establishment and Use of the Geo Fund.--
          (1) Geo fund.--There is established in the Treasury a 
        separate account to be known as the ``National Geo Fund''.
          (2) Funding.--The Secretary of the Treasury shall deposit in 
        the Geo Fund--
                  (A) such sums as are provided by sections 
                9(b)(5)(A)(iv), 9(b)(5)(B)(iv), 9(c)(4)(A)(iv), and 
                9(c)(4)(B)(iv) of the Outer Continental Shelf Lands 
                Act, as amended by this Act;
                  (B)(i) during the period of October 1, 2006, through 
                September 30, 2015, one percent of all sums paid into 
                the Treasury under section 35 of the Mineral Leasing 
                Act (30 U.S.C. 191), and
                  (ii) beginning October 1, 2015, and thereafter, 2.5 
                percent of all sums paid into the Treasury under 
                section 35 of the Mineral Leasing Act (30 U.S.C. 191);
                  (C)(i) during the period of October 1, 2006, through 
                September 30, 2015, one percent of all sums paid into 
                the Treasury from receipts derived from bonus bids and 
                royalties from other mineral leasing on public lands, 
                and
                  (ii) beginning October 1, 2015, and thereafter, 2.5 
                percent of all sums paid into the Treasury from 
                receipts derived from bonus bids and royalties from 
                other mineral leasing on public lands; and
                  (D) $65,000,000 from outer Continental Shelf bonus 
                bids, royalties, and conservation of resources fees 
                received in fiscal year 2007, and $50,000,000 from 
                outer Continental Shelf bonus bids, royalties, and 
                conservation of resources fees received in each of 
                fiscal years 2008, 2009, 2010, 2011, 2012, and 2013, 75 
                percent of which shall be used to implement subsection 
                (g) and all of which shall remain available until 
                expended.
          (3) Investments.--The Secretary of the Treasury shall invest 
        the amounts deposited under paragraph (2) and all accrued 
        interest on the amounts deposited under paragraph (2) only in 
        interest bearing obligations of the United States or in 
        obligations guaranteed as to both principal and interest by the 
        United States.
          (4) Availability to secretary of the interior.--
                  (A) In general.--Beginning with fiscal year 2007, and 
                in each fiscal year thereafter, one-third of amounts 
                deposited into the Geo Fund, unless otherwise specified 
                herein, together with the interest thereon, shall be 
                available, without fiscal year limitations, to the 
                Secretary of the Interior for use for the purposes 
                described in subsection (b)(4).
                  (B) Withdrawals and transfer of funds.--The Secretary 
                of the Treasury shall withdraw such amounts from the 
                Geo Fund as the Secretary of the Interior may request, 
                subject to the limitation in subparagraph (A), and 
                transfer such amounts to the Secretary of the Interior 
                to be used, at the discretion of the Secretary of the 
                Interior, by the Minerals Management Service, the 
                Bureau of Land Management, and the United States 
                Geological Survey for the purposes described in 
                subsection (b)(4). No funds distributed from the Geo 
                Fund may be used to purchase an interest in land.
          (5) Payment to states.--
                  (A) In general.--Beginning with fiscal year 2007, and 
                in each fiscal year thereafter, two-thirds of amounts 
                deposited into the Geo Fund, unless otherwise specified 
                herein, together with the interest thereon, shall be 
                available, without fiscal year limitations, to the 
                States for use for the purposes described in subsection 
                (b)(4).
                  (B) Withdrawals and transfer of funds.--Within the 
                first 90 days of each fiscal year, the Secretary of the 
                Treasury shall withdraw amounts from the Geo Fund and 
                transfer such amounts to the States based on a formula 
                devised by the Secretary of the Interior based on the 
                relative needs of the States and the needs of the 
                Nation.
                  (C) Use of payments by states.--Each State shall use 
                the payments made under subparagraph (B) only for 
                carrying out projects and programs for the purposes 
                described in subsection (b)(4). No funds distributed 
                from the Geo Fund may be used to purchase an interest 
                in land.
                  (D) Encouragement of use of private funds by 
                states.--Each State shall use the payments made under 
                subparagraph (B) to leverage private funds for carrying 
                out projects for the purposes described in subsection 
                (b)(4).
                  (E) Report to congress.--Beginning in fiscal year 
                2008 and continuing for each fiscal year thereafter, 
                the Secretary of the Interior and each State receiving 
                funds from the Geo Fund shall submit a report to the 
                Committee on Energy and Natural Resources of the Senate 
                and the Committee on Resources of the House of 
                Representatives. Reports submitted to the Congress by 
                the Secretary of the Interior and the States shall 
                include detailed information regarding expenditures 
                during the previous fiscal year.
  (e) Strategic Unconventional Resources.--
          (1) Program.--The Secretary of the Interior shall establish a 
        program for production of fuels from strategic unconventional 
        resources, and production of oil and gas resources using CO2 
        enhanced recovery. The program shall focus initially on 
        activities and domestic resources most likely to result in 
        significant production in the near future, and shall include 
        work necessary to improve extraction techniques, including 
        surface and in situ operations. The program shall include 
        characterization and assessment of potential resources, a 
        sampling program, appropriate laboratory and other analyses and 
        testing, and assessment of methods for exploration and 
        development of these strategic unconventional resources.
          (2) Pilot projects.--The program created in paragraph (1) 
        shall include, but not be limited to, pilot projects on (A) the 
        Maverick Basin heavy oil and tar sands formations of Texas, 
        including the San Miguel deposits, (B) the Greater Green River 
        Basin heavy oil, oil shale, tar sands, and coal deposits of 
        Colorado, Utah, and Wyoming, (C) the shale, tar sands, heavy 
        oil, and coal deposits in the Alabama-Mississippi-Tennessee 
        region, (D) the shale, tar sands, heavy oil, and coal deposits 
        in the Ohio River valley, and (E) strategic unconventional 
        resources in California. The Secretary shall identify and 
        report to Congress on feasible incentives to foster recovery of 
        unconventional fuels by private industry within the United 
        States. Such incentives may include, but are not limited to, 
        long-term contracts for the purchase of unconventional fuels 
        for defense purposes, Federal grants and loan guarantees for 
        necessary capital expenditures, and favorable terms for the 
        leasing of Government lands containing unconventional 
        resources.
          (3) Definitions.--In this subsection:
                  (A) Strategic unconventional resources.--The term 
                ``strategic unconventional resources'' means 
                hydrocarbon resources, including heavy oil, oil shale, 
                tar sands, and coal deposits, from which liquid fuels 
                may be produced.
                  (B) In situ extraction methods.--The term ``in situ 
                extraction methods'' means recovery techniques that are 
                applied to the resources while they are still in the 
                ground, and are in commercial use or advanced stages of 
                development. Such techniques include, but are not 
                limited to, steam flooding, steam-assisted gravity 
                drainage (including combination with electric power 
                generation where appropriate), cyclic steam 
                stimulation, air injection, and chemical treatment.
          (4) Funding.--The Secretary shall carry out the program for 
        the production of strategic unconventional fuels with funds 
        from the Geo Fund in each of fiscal years 2007 through 2011 in 
        the amount of not less than $35,000,000 each year. Each pilot 
        project shall be allocated not less than $4,000,000 per year in 
        each of fiscal years 2007 through 2011.
  (f) Support of Geothermal and Geopressure Oil and Gas Energy 
Production.--
          (1) In general.--The Secretary shall carry out a grant 
        program in support of geothermal and geopressure oil and gas 
        energy production. The program shall include grants for a total 
        of not less than three assessments of the use of innovative 
        geothermal techniques such as organic rankine cycle systems at 
        marginal, unproductive, and productive oil and gas wells, and 
        not less than one assessment of the use of innovative 
        geopressure techniques. The Secretary shall, to the extent 
        practicable and in the public interest, make awards that--
                  (A) include not less than five oil or gas well sites 
                per project award;
                  (B) use a range of oil or gas well hot water source 
                temperatures from 150 degrees Fahrenheit to 300 degrees 
                Fahrenheit;
                  (C) use existing or new oil or gas wells;
                  (D) cover a range of sizes from 175 kilowatts to one 
                megawatt;
                  (E) are located at a range of sites including tribal 
                lands, Federal lease, State, or privately owned sites;
                  (F) can be replicated at a wide range of sites;
                  (G) facilitate identification of optimum techniques 
                among competing alternatives;
                  (H) include business commercialization plans that 
                have the potential for production of equipment at high 
                volumes and operation and support at a large number of 
                sites; and
                  (I) satisfy other criteria that the Secretary 
                determines are necessary to carry out the program.
        The Secretary shall give preference to assessments that address 
        multiple elements contained in subparagraphs (A) through (I).
          (2) Grant awards.--
                  (A) In general.--Each grant award for assessment of 
                innovative geothermal or geopressure technology such as 
                organic rankine cycle systems at oil and gas wells made 
                by the Secretary under this section shall include--
                          (i) necessary and appropriate site 
                        engineering study;
                          (ii) detailed economic assessment of site 
                        specific conditions;
                          (iii) appropriate feasibility studies to 
                        determine ability for replication;
                          (iv) design or adaptation of existing 
                        technology for site specific circumstances or 
                        conditions;
                          (v) installation of equipment, service, and 
                        support; and
                          (vi) monitoring for a minimum of one year 
                        after commissioning date.
          (3) Competitive grant selection.--Not less than 180 days 
        after the date of the enactment of this Act, the Secretary 
        shall conduct a national solicitation for applications for 
        grants under the program. Grant recipients shall be selected on 
        a competitive basis based on criteria in subsection (b).
          (4) Federal share.--The Federal share of costs of grants 
        under this subsection shall be provided from funds made 
        available to carry out this section. The Federal share of the 
        cost of a project carried out with such a grant shall not 
        exceed 50 percent of such cost.
          (5) Funding.--The Secretary shall carry out the grant program 
        under this subsection with funds from the Geo Fund in each of 
        fiscal years 2007 through 2011 in the amount of not less than 
        $5,000,000 each fiscal year. No funds authorized under this 
        section may be used for the purposes of drilling new wells.
          (6) Amendment.--Section 4 of the Geothermal Steam Act of 1970 
        (30 USC 1003) is amended by adding at the end the following:
  ``(h) Geothermal Resources Co-Produced With the Minerals.--Any person 
who holds a lease or who operates a cooperative or unit plan under the 
Mineral Leasing Act, in the absence of an existing lease for geothermal 
resources under this Act, shall upon notice to the Secretary have the 
right to utilize any geothermal resources co-produced with the minerals 
for which the lease was issued during the operation of that lease or 
cooperative or unit plan, for the generating of electricity to operate 
the lease. Any electricity that is produced in excess of that which is 
required to operate the lease and that is sold for purposes outside of 
the boundary of the lease shall be subject to the requirements of 
section 5.''
  (g) Liquid Fuels Grant Program.--
          (1) Program.--The Secretary of the Interior shall establish a 
        grant program for facilities for coal-to-liquids, petroleum 
        coke-to-liquids, oil shale, tar sands, heavy oil, and Alaska 
        natural gas-to-liquids and to assess the production of low-rank 
        coal water fuel (in this subsection referred to as ``LRCWF'').
          (2) LRCWF.--The LRCWF grant project location shall use 
        lignite coal from fields near the Tombigbee River within 60 
        miles of a land-grant college and shall be allocated 
        $15,000,000 for expenditure during fiscal year 2007.
          (3) Definitions.--In this subsection:
                  (A) Coal-to-liquids front-end engineering and 
                design.--The terms ``coal-to-liquids front-end 
                engineering and design'' and ``FEED'' mean those 
                expenditures necessary to engineer, design, and obtain 
                permits for a facility for a particular geographic 
                location which will utilize a process or technique to 
                produce liquid fuels from coal resources.
                  (B) Low-rank coal water fuel.--In this subsection the 
                term ``low-rank coal water fuel'' means a liquid fuel 
                produced from hydrothermal treatment of lignite and 
                sub-bituminous coals.
          (4) Grant provisions.--All grants shall require a 50 percent 
        non-Federal cost share. The first 4 FEED grant recipients who 
        receive full project construction financing commitments, based 
        on earliest calendar date, shall not be required to repay any 
        of their grants. The next 4 FEED grant recipients who receive 
        such commitments shall be required to repay 25 percent of the 
        grant. The next 4 FEED grant recipients who receive such 
        commitments shall be required to repay 50 percent of the grant, 
        and the remaining FEED grant recipeints shall be required to 
        repay 75 percent of the grant. The LRCWF recipient shall not be 
        required to repay the grant. Any required repayment shall be 
        paid as part of the closing process for any construction 
        financing relating to the grant. No repayment shall require the 
        payment of interest if repaid within 5 years of the issuance of 
        the grant. FEED grants shall be be limited to a maximum of 
        $1,000,000 per 1,000 barrels per day of liquid fuels production 
        capacity, not to exceed $25 million per year.
          (5) Funding.--The Secretary shall carry out the grant program 
        established by this subsection with funds from the Geo Fund.
  (h) Renewable Energy From Ocean Wave, Current, and Thermal 
Resources.--
          (1) Program.--The Secretary of the Interior shall establish a 
        grant program for the production of renewable energy from ocean 
        waves, currents, and thermal resources.
          (2) Grant provisions.--All grants under this subsection shall 
        require a 50 percent non-Federal cost share.
          (3) Funding.--The Secretary shall carry out this grant 
        program with funds from the Geo Fund in each of fiscal years 
        2007 through 2011 in the amount of not less than $6,000,000 
        each year, and thereafter in such amounts as the Secretary may 
        find appropriate.
  (i) Amendment to the Surface Mining Control and Reclamation Act of 
1977.--Section 517 of the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1267) is amended by adding adding at the end the 
following:
  ``(i) Any person who provides the regulatory authority with a map 
under subsection (b)(1) shall not be liable to any other person in any 
way for the accuracy or completeness of any such map which was not 
prepared and certified by or on behalf of such person.''.

SEC. 27. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR 
                    FLORIDA.

  (a) Authorization to Cancel and Exchange Certain Existing Oil and Gas 
Leases; Prohibition on Submittal of Exploration Plans for Certain 
Leases Prior to June 30, 2010.--
          (1) Authority.--Within 2 years after the date of enactment of 
        this Act, the lessee of an existing oil and gas lease for an 
        area located completely within 100 miles of the coastline 
        within the California or Florida Adjacent Zones shall have the 
        option, without compensation, of exchanging such lease for a 
        new oil and gas lease having a primary term of 5 years. For the 
        area subject to the new lease, the lessee may select any 
        unleased tract on the outer Continental Shelf that is in an 
        area available for leasing. Further, with the permission of the 
        relevant Governor, such a lessee may convert its existing oil 
        and gas lease into a natural gas lease having a primary term of 
        5 years and covering the same area as the existing lease or 
        another area within the same State's Adjacent Zone within 100 
        miles of the coastline.
          (2) Administrative process.--The Secretary of the Interior 
        shall establish a reasonable administrative process to 
        implement paragraph (1). Exchanges and conversions under 
        subsection (a), including the issuance of new leases, shall not 
        be considered to be major Federal actions for purposes of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.). Further, such actions conducted in accordance with this 
        section are deemed to be in compliance all provisions of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
          (3) Operating restrictions.--A new lease issued in exchange 
        for an existing lease under this section shall be subject to 
        such national defense operating stipulations on the OCS tract 
        covered by the new lease as may be applicable upon issuance.
          (4) Priority.--The Secretary shall give priority in the lease 
        exchange process based on the amount of the original bonus bid 
        paid for the issuance of each lease to be exchanged. The 
        Secretary shall allow leases covering partial tracts to be 
        exchanged for leases covering full tracts conditioned upon 
        payment of additional bonus bids on a per-acre basis as 
        determined by the average per acre of the original bonus bid 
        per acre for the partial tract being exchanged.
          (5) Exploration plans.--Any exploration plan submitted to the 
        Secretary of the Interior after the date of the enactment of 
        this Act and before July 1, 2010, for an oil and gas lease for 
        an area wholly within 100 miles of the coastline within the 
        California Adjacent Zone or Florida Adjacent Zone shall not be 
        treated as received by the Secretary until the earlier of July 
        1, 2010, or the date on which a petition by the Adjacent State 
        for oil and gas leasing covering the area within which is 
        located the area subject to the oil and gas lease was approved.
  (b) Further Lease Cancellation and Exchange Provisions.--
          (1) Cancellation of lease.--As part of the lease exchange 
        process under this section, the Secretary shall cancel a lease 
        that is exchanged under this section.
          (2) Consent of lessees.--All lessees holding an interest in a 
        lease must consent to cancellation of their leasehold interests 
        in order for the lease to be cancelled and exchanged under this 
        section.
          (3) Waiver of rights.--As a prerequisite to the exchange of a 
        lease under this section, the lessee must waive any rights to 
        bring any litigation against the United States related to the 
        transaction.
          (4) Plugging and abandonment.--The plugging and abandonment 
        requirements for any wells located on any lease to be cancelled 
        and exchanged under this section must be complied with by the 
        lessees prior to the cancellation and exchange.
  (c) Area Partially Within 100 Miles of Florida.--An existing oil and 
gas lease for an area located partially within 100 miles of the 
coastline within the Florida n Adjacent Zone may only be developed and 
produced using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on the area of the 
lease. This subsection shall not apply if Florida has petitioned for 
leasing closer to the coastline than 100 miles.
  (d) Existing Oil and Gas Lease Defined.--In this section the term 
``existing oil and gas lease'' means an oil and gas lease in effect on 
the date of the enactment of this Act.

SEC. 28. COASTAL IMPACT ASSISTANCE.

   Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a) is repealed.

SEC. 29. OIL SHALE AND TAR SANDS AMENDMENTS.

  (a) Repeal of Requirement to Establish Payments.--Section 369(o) of 
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 728; 42 
U.S.C. 15927) is repealed.
  (b) Treatment of Revenues.--Section 21 of the Mineral Leasing Act (30 
U.S.C. 241) is amended by adding at the end the following:
  ``(e) Revenues.--
          ``(1) In general.--Notwithstanding the provisions of section 
        35, all revenues received from and under an oil shale or tar 
        sands lease shall be disposed of as provided in this 
        subsection.
          ``(2) Royalty rates for commercial leases.--
                  ``(A) Royalty rates.--The Secretary shall model the 
                royalty schedule for oil shale and tar sands leases 
                based on the royalty program currently in effect for 
                the production of synthetic crude oil from oil sands in 
                the Province of Alberta, Canada.
                  ``(B) Reduction.--The Secretary shall reduce any 
                royalty otherwise required to be paid under 
                subparagraph (A) under any oil shale or tar sands lease 
                on a sliding scale based upon market price, with a 10 
                percent reduction if the average futures price of NYMEX 
                Light Sweet Crude, or a similar index, drops, for the 
                previous quarter year, below $50 (in January 1, 2006, 
                dollars), and an 80 percent reduction if the average 
                price drops below $30 (in January 1, 2006, dollars) for 
                the quarter previous to the one in which the production 
                is sold.
          ``(3) Disposition of revenues.--
                  ``(A) Deposit.--The Secretary shall deposit into a 
                separate account in the Treasury all revenues derived 
                from any oil shale or tar sands lease.
                  ``(B) Allocations to states and local political 
                subdivisions.--The Secretary shall allocate 50 percent 
                of the revenues deposited into the account established 
                under subparagraph (A) to the State within the 
                boundaries of which the leased lands are located, with 
                a portion of that to be paid directly by the Secretary 
                to the State's local political subdivisions as provided 
                in this paragraph.
                  ``(C) Transmission of allocations.--
                          ``(i) In general.--Not later than the last 
                        business day of the month after the month in 
                        which the revenues were received, the Secretary 
                        shall transmit--
                                  ``(I) to each State two-thirds of 
                                such State's allocations under 
                                subparagraph (B), and in accordance 
                                with clauses (ii) and (iii) to certain 
                                county-equivalent and municipal 
                                political subdivisions of such State a 
                                total of one-third of such State's 
                                allocations under subparagraph (B), 
                                together with all accrued interest 
                                thereon; and
                                  ``(II) the remaining balance of such 
                                revenues deposited into the account 
                                that are not allocated under 
                                subparagraph (B), together with 
                                interest thereon, shall be transmitted 
                                to the miscellaneous receipts account 
                                of the Treasury, except that until a 
                                lease has been in production for 20 
                                years 50 percent of such remaining 
                                balance derived from a lease shall be 
                                paid in accordance with subclause (I).
                          ``(ii) Allocations to certain county-
                        equivalent political subdivisions.--The 
                        Secretary shall under clause (i)(I) make 
                        equitable allocations of the revenues to 
                        county-equivalent political subdivisions that 
                        the Secretary determines are closely associated 
                        with the leasing and production of oil shale 
                        and tar sands, under a formula that the 
                        Secretary shall determine by regulation.
                          ``(iii) Allocations to municipal political 
                        subdivisions.--The initial allocation to each 
                        county-equivalent political subdivision under 
                        clause (ii) shall be further allocated to the 
                        county-equivalent political subdivision and any 
                        municipal political subdivisions located 
                        partially or wholly within the boundaries of 
                        the county-equivalent political subdivision on 
                        an equitable basis under a formula that the 
                        Secretary shall determine by regulation.
                  ``(D) Investment of deposits.--The deposits in the 
                Treasury account established under this section shall 
                be invested by the Secretary of the Treasury in 
                securities backed by the full faith and credit of the 
                United States having maturities suitable to the needs 
                of the account and yielding the highest reasonably 
                available interest rates as determined by the Secretary 
                of the Treasury.
                  ``(E) Use of funds.--A recipient of funds under this 
                subsection may use the funds for any lawful purpose as 
                determined by State law. Funds allocated under this 
                subsection to States and local political subdivisions 
                may be used as matching funds for other Federal 
                programs without limitation. Funds allocated to local 
                political subdivisions under this subsection may not be 
                used in calculation of payments to such local political 
                subdivisions under programs for payments in lieu of 
                taxes or other similar programs.
                  ``(F) No accounting required.--No recipient of funds 
                under this subsection shall be required to account to 
                the Federal Government for the expenditure of such 
                funds, except as otherwise may be required by law.
          ``(4) Definitions.--In this subsection:
                  ``(A) County-equivalent political subdivision.--The 
                term `county-equivalent political subdivision' means a 
                political jurisdiction immediately below the level of 
                State government, including a county, parish, borough 
                in Alaska, independent municipality not part of a 
                county, parish, or borough in Alaska, or other 
                equivalent subdivision of a State.
                  ``(B) Municipal political subdivision.--The term 
                `municipal political subdivision' means a municipality 
                located within and part of a county, parish, borough in 
                Alaska, or other equivalent subdivision of a State.''.

SEC. 30. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAYMENTS UNDER SECURE 
                    RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT 
                    OF 2000.

  Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended by inserting after subsection (i), as added by section 7 of 
this Act, the following new subsection:
  ``(j) Availability of Funds for Payments Under Secure Rural Schools 
and Community Self-Determination Act of 2000.--Notwithstanding any 
other provision of this section, $50,000,000 of OCS Receipts shall be 
available to the Secretary of the Treasury for each of fiscal years 
2007 through 2012 to make payments under sections 102 and 103 of the 
Secure Rural Schools and Community Self-Determination Act of 2000 
(Public Law 106-393; 16 U.S.C. 500 note). The Secretary of the Treasury 
shall use the funds made available by this subsection to make such 
payments in lieu of using funds in the Treasury not otherwise 
appropriated, as otherwise authorized by sections 102(b)(3) and 
103(b)(2) of such Act.''.

                          Purpose of the Bill

    The purpose of H.R. 4761 is to provide for exploration, 
development, and production activities for mineral resources on 
the outer Continental Shelf, and for other purposes.

                  Background and Need for Legislation

    The U.S. is more than 60 percent dependent on foreign 
sources of oil to meet our domestic energy requirements. This 
dependence has a direct impact on our trade deficit, which 
increased by 2.5 percent in April 2006 specifically due to 
increased crude oil prices.
    In 2003, the National Defense Council Foundation estimated 
that the ``hidden cost'' of imported oil totaled $305 billion. 
Because the price of crude oil is expected to remain above the 
$60 range for the foreseeable future, the ``hidden cost'' of 
importing our oil in 2006 will be more than $825 billion. If we 
were to calculate that cost on a per gallon basis, gasoline 
refined from Persian Gulf oil would be $10.86 per gallon.
    U.S. consumers have been experiencing high gasoline costs 
at the pump and are expected to see high home heating costs 
this winter. The U.S. chemical, manufacturing, agriculture and 
other industries are being forced overseas in search of lower 
raw material costs like natural gas.
    While many people advocate conservation and the use of 
renewable and alternative energy as a solution to our high 
gasoline prices (including the use of solar and wind energy), 
they fail to realize that energy generated from renewable 
resources is generally for electrical power generation, not 
transportation fuel.
    Three types of energy are required to meet the needs of the 
American people: transportation fuels (27 percent of the 
Nation's energy requirement)--largely crude oil; feed stock for 
manufacturing of chemicals and other products--primarily 
natural gas; and fuels used to generate electrical power--a 
mixture of coal, natural gas, hydropower, and nuclear.
    Today approximately 10 percent of the Nation's energy needs 
are generated from renewable and alternative energy resources. 
Of these resources, 9 percent is used to generate electricity 
(7 percent from hydropower) and 1 percent is used for 
transportation fuels. We are still almost 100 percent dependent 
on crude oil for our transportation fuel, 60 percent of which 
is imported.
    Another important factor affecting the Nation's energy 
requirements is population. This is often overlooked by critics 
of energy consumption particularly in discussions regarding the 
use of fossil fuels--fuels that are used for transportation, 
chemicals, manufacturing and agriculture as well as electrical 
power generation.
    Between 1970 and 2004 the U.S. population grew by 40 
percent and our energy requirements grew by 47 percent, an 
almost identical growth pattern. During this same time period 
the Gross Domestic Product grew by 187 percent, vehicle miles 
driven increased by 171 percent and air pollution was 
significantly diminished. These statistics demonstrate that the 
country has strong conservation practices, achieved significant 
energy efficiency and instituted strong pollution controls.
    Increasing costs of energy are due to world-wide supply and 
demand imbalances, and in the U.S. is further compounded by 
contradicting land use and environmental policy. A recent 
example is the increase in the U.S. demand for natural gas 
which is priced on a domestic not global market. Natural gas 
was traditionally used in manufacturing and for home heating 
and cooking. With changes to the Clean Air Act in the 1990s, 
natural gas was increasingly used to generate electricity. 
However, access to additional domestic sources of natural gas 
was concurrently being restricted. In this case, policy and the 
private sector response to the legislation drove natural gas 
prices from around $2.00 to $2.50 per thousand cubic feet (Mcf) 
during the 1990s to an average of $9.00 Mcf during 2005. These 
high gas prices (the highest in the world) have adversely 
impacted the domestic manufacturing sector, in particular the 
chemical industry which uses natural gas as feed stock for much 
of what they produce, driving this and other industries 
offshore where natural gas prices are more reasonable. 
According to the American Chemistry Council, the U.S. chemical 
industry posted a trade surplus of $20.3 billion in 1997, the 
largest in the Nation's history. But last year the industry 
registered a trade deficit of more than $9 billion. Since the 
price of natural gas began to spike, the industry has lost more 
than $60 billion in business to foreign competitors. In that 
same time period, more than 100,000 good-paying jobs in the 
chemical industry have disappeared.
    The Forest Products Industry has also suffered from high 
energy costs. Currently energy is the third largest 
manufacturing cost for the industry at 18 percent for pulp and 
paper mills--up from 12 percent just three years ago. For some 
mills, the cost of energy is about to eclipse employee 
compensation. The impacts of rising energy prices on the forest 
products industry have been dramatic. Over 232 mills have 
closed and 182,000 jobs lost (12 percent of employment) since 
2000 when energy prices started a steep rise. High energy costs 
contributed significantly to these closures and layoffs. The 
National Association of Manufacturers estimates that 3.1 
million jobs have been lost since 2000 as a result of high 
energy costs.
    Recent natural disasters exposed the vulnerability of our 
domestic energy infrastructure. Years of inadequate federal 
energy policies forced the concentration of vital energy 
production and refining into a single area of the country, the 
Gulf Coast. But, as with any critical facilities or 
infrastructure, geographical diversification and/or redundancy 
are key to withstanding sudden shocks to the system.
    Extreme weather impacts to the Gulf Coast energy 
infrastructure sent a shock through the energy markets--crude 
oil prices jumped on reports of domestic oil production shut-
ins; gasoline prices jumped on reports of damage to refining 
capacity; natural gas prices jumped on reports of production 
shut-ins as well as processing facility and pipeline 
infrastructure damage. These increases in energy prices likely 
are here to stay unless the country recognizes that our own 
federal lands contain a wealth of domestic energy resources 
that can be responsibly produced to alleviate high energy 
costs.
    Meanwhile, as the thirst for oil from emerging economies 
such as China and India increases, our Nation's reliance on the 
very same oil sources as these countries has risen to an all-
time high of more than 60 percent of our consumption. America's 
energy trade deficit is more than 25 percent of our total 
balance of payments and continues to rapidly increase. The 
margin of spare global oil supply capacity is at an all-time 
low, even lower than the 1970s when oil disruptions rocked the 
U.S. and world economies. This increasing global demand and 
tight production capacity means less energy and higher prices 
for America.
    Our reliance on foreign countries for oil poses yet another 
problem: dependence on increasingly unstable governments. We 
face a future where we are more dependent on rogue foreign 
nations, but we are no longer guaranteed to be the major 
recipient of their energy, and countries like China continue to 
secure contracts and gain favor with these nations.
    The U.S. could improve the supply-demand imbalance by 
producing from more of our own energy resources. Instead the 
U.S. government is rationing its energy resources through 
moratoria on development. For example, in the U.S., 85 percent 
of the outer Continental Shelf (OCS) of the lower-48 states 
currently is locked away from any development potential for 
natural gas and oil resources through both a Presidential 
withdrawal and annual Congressional moratoria.The Minerals 
Management Service of the Department of the Interior says that the 
areas under moratoria likely contain between 94 and 164 Trillion cubic 
feet of natural gas and between 21.25 and 40.6 billion barrels of oil--
enough resources to lower consumer costs for natural gas and oil for 
decades to come.
    The issue of access to domestic resources remains a 
significant hurdle to bolstering U.S. energy security. Coastal 
states, for example, depend on the whim of the federal 
government to determine whether energy development occurs off 
their coasts. Additionally, those coastal states that do 
support energy development off their shores are not compensated 
as adequately as their land-locked state counterparts. Coastal 
states must be afforded the opportunity for self-determination 
regarding energy development off their shores and, if they 
choose to facilitate development, they should be compensated 
for supporting energy development for the Nation. Although 
technological advancements in exploration and production have 
sustained some resource growth, policies preventing access to 
the responsible development of these resources continue to keep 
domestic energy resource potential off-line.
    The Energy Policy Act of 2005, signed into law by the 
President on August 8, 2005, was but a first step toward 
acknowledging these global energy issues and strengthening U.S. 
energy policy. Conference Committee negotiations ultimately 
failed to include some key measures to encourage domestic 
energy production. Thus, while this first step was in the right 
direction, the bill failed to seriously address responsible 
access to, and production of, energy from U.S. public lands.
    As ordered reported from the Committee on Resources, H.R. 
4761, the Deep Ocean Energy Resources Act of 2006, is a 
compromise between H.R. 4761 and H.R. 4318. It provides 
abundant domestic supplies of energy and will create hundreds 
of thousands of high paying family wage jobs. The reported bill 
provides a framework for responsible access to, and production 
of, energy from the U.S. OCS, and empowers States to control 
their coastal areas. The bill protects the interest of States 
that don't want energy production near their coastlines by 
permanently establishing a moratoria on oil and gas development 
within 50 miles of the U.S. coast. States that want energy 
development can opt out of the moratorium. The reported bill 
also provides equitable sharing of energy receipts.
    In addition, the reported bill establishes ``conservation 
of resources fees'' for non-producing oil and gas leases and 
deep water (greater than 200 meters) producing leases that are 
not paying royalties. The fee for these producing leases kicks 
in when prices exceed $40.50 per barrel for oil and $6.75 per 
million Btu for natural gas in 2006 dollars. The fees apply to 
production starting October 1, 2005. This new fee addresses the 
mistake made in leases issued in 1998 and 1999 (where price 
triggers for royalties were not included) without violating 
contractual obligations the United States has with the lease 
holders.
    H.R. 4761 as ordered reported creates three funds from 
onshore and offshore mineral receipts to support our domestic 
energy programs. They are: the Federal Energy Natural Resources 
Enhancement Fund; the Federal Energy and Mineral Resources 
Professional Development Fund; and the National Geo Fund.
    Under the Federal Energy Natural Resources Enhancement 
Fund, funds from federal mineral receipts are provided for the 
Department of the Interior and the States where energy 
production occurs, including OCS Adjacent Zones, for monitoring 
and management of wildlife and fish, and their habitats, and 
air, water, and other natural resources related to energy and 
minerals development on federal onshore and offshore lands (See 
Full Committee Hearing on H.R. 4761, June 14, 2006, at http://
resourcescommittee.house.gov/archives/109/full/index.htm).
    Under the Federal Energy and Mineral Resources Professional 
Development Fund, funds from federal mineral receipts are 
provided to support existing programs at ABET-accredited 
petroleum and mining schools, applied geology and geophysics 
programs, and to individuals for degrees in petroleum and 
mining engineering, petroleum/mining geology and geophysics and 
mineral economics. Twenty-five percent of the Funds go to 
support programs at colleges, universities, community colleges, 
tribal colleges, and technical institutes for career technical 
education programs to train skilled workers in the oil and gas, 
coal and mineral mining industries. Programs have a preference 
for Iraq and Afghanistan veterans, and minorities. Also 
included is a scholarship program for personnel needed to 
support the Department of the Interior. Section 23 of the bill 
also establishes an Office of Petroleum and Mining Schools 
within the Department of Interior (See Energy and Mineral 
Resources Subcommittee Oversight Hearing on ``The Aging of the 
Energy and Minerals Workforce: A Crisis in the Making at http:/
/resourcescommittee.house.gov/archives/108/emr/index.htm).
    Under the National Geo Fund, funds from federal mineral 
receipts are provided for a program for the production of fuels 
from strategic unconventional resources and production of oil 
and gas resources using certain techniques, including five 
pilot projects. In addition, the funds are provided for several 
grant programs in support of geothermal and geopressure oil and 
gas energy production and facilities for coal-to-liquids, 
petroleum coke-to-liquids, oil shale, tar sands, heavy oil, 
and, in Alaska natural gas-to-liquids projects. All but the 
first four grants will require a part of the grant to be 
repaid.
    Section 21 of the reported text encourages marine life 
development through a federal rigs-to-reefs program which 
authorizes the use of decommissioned offshore oil and gas 
platforms and other facilities for artificial reefs. For those 
states that do not want to participate in this program there is 
a provision that allows them to opt out within 12 miles of the 
coastline.
    Section 29 of the reported bill strengthens the new oil 
shale program implemented through the Energy Policy Act of 2005 
by establishing a royalty framework built upon the successful 
Canadian model that helped spur the more than 1 million 
barrels/day in oil production from Alberta's oil sands. The 
section also increases revenue sharing with state and local 
governments during the first 20 years of production.

                            Committee Action

    Congressman Bobby Jindal (R-LA) introduced H.R. 4761 on 
February 15, 2006, and it was referred to the Committee on 
Resources. Within the Committee, it was referred to the 
Subcommittee on Energy and Mineral Resources. The Subcommittee 
was discharged from further consideration of the bill under 
Committee Rule 6(e). The Committee held a hearing on the bill 
on June 14, 2006. The Committee met to consider the bill on 
June 21, 2006. Chairman Richard Pombo (R-CA) offered an 
amendment in the nature of a substitute.
    The following amendments were offered to the amendment in 
the nature of a substitute:
    Congressman Don Young (R-AK) offered an amendment to 
include Alaska Native-serving institutions as eligible for 
funding under the Department of the Interior Workforce 
Enhancement program. The amendment was adopted by voice vote.
    Congressman Mark Udall (D-CO) offered a substitute 
amendment which struck all sections of the bill and authorized 
oil and gas leasing in the Lease Sale 181 area offshore the 
States of Florida and Alabama. The amendment failed by voice 
vote.
    Congressman Jim Gibbons (R-NV) offered an amendment to make 
clarifying and technical changes to Section 23, Mining and 
Petroleum Schools. The amendment was adopted by voice vote.
    Congressman Edward Markey (D-MA) offered an amendment which 
struck all portions of the bill except Section 6(u), 
Conservation of Resources Fees. The amendment failed on a roll 
call vote of 7 to 23, as follows:


    Congressman Greg Walden (R-OR) offered an amendment to 
provide $50 million per year for six years in outer Continental 
Shelf receipts for payments under the Secure Rural Schools and 
Community Self-Determination Act of 2000. The amendment was 
adopted by voice vote.
    Congressman Ken Calvert (R-CA) offered and withdrew an 
amendment concerning the role of the Secretary of Defense under 
the bill.
    Congressman Jeff Flake (R-AZ) offered and withdrew an 
amendment entitled ``Authorization of Activities and Exports 
Involving Hydrocarbon Resources by United States Companies.''
    Congresswoman Thelma Drake (R-VA) offered an amendment 
refocusing Section 26 of the bill on production of energy and 
alternative energy resources. The amendment was adopted by 
voice vote.
    Congressman Mark Udall offered an amendment to change the 
calculation of royalties, fees, rentals, bonuses or other 
payments for oil shale and tar sands. The amendment failed by 
voice vote.
    Congressman Henry Brown (R-SC) offered an amendment which 
altered the allocation of receipts between coastal states for 
receipts from outer Continental Shelf tracts located partially 
or completely beyond 100 miles of the coastline. The amendment 
was adopted by voice vote.
    The Pombo amendment in the nature of a substitute, as 
amended, was adopted by voice vote. The bill, as amended, was 
ordered favorably reported by a roll call vote of 29 to 9, as 
follows:


                      Section-by-Section Analysis


Section 1. Short title

    This Act may be cited as the ``Deep Ocean Energy Resources 
Act of 2006.''

Section 2. Policy

    The United States is blessed with abundant energy resources 
on the outer Continental Shelf and has developed a 
comprehensive framework of environmental laws and regulations 
and fostered the development of state-of-the-art technology 
that allows for the responsible development of these resources 
for the benefit of its citizenry.
    Adjacent States (ocean states) incur expenses in support of 
outer Continental Shelf (OCS) activities and should receive a 
portion of the revenues. Existing laws have reduced production 
of minerals, have pre-empted State involvement in mineral 
resource development decisions, and have been harmful to the 
National interest.
    Adjacent States should have more options as to whether 
mineral leasing should occur within their Adjacent Zones. At 
certain distances offshore, it is not reasonably foreseeable 
that mineral exploration and development activities will 
adversely affect resources near the coastline.
    Inland waters, including the Great Lakes, Long Island 
Sound, Delaware Bay, Chesapeake Bay, Albemarle Sound, San 
Francisco Bay, and Puget Sound are not part of the outer 
Continental Shelf and are not subject to oil and natural gas 
leasing by the federal government.

Section 3. Definitions under the Outer Continental Shelf Lands Act

    The section amends section 2 of the Outer Continental Shelf 
Lands Act (OCSLA, 43 U.S.C. 1331) to define terms such as 
``Adjacent State'', ``Adjacent Zone'', ``Neighboring State'', 
and other necessary terms, and includes Puerto Rico and the 
other territories of the United States under the definition of 
``State''.

Section 4. Determination of adjacent zones and planning areas

    This section amends Section 4 of the OCSLA (43 U.S.C. 1333) 
to designate State Adjacent Zones and OCS Planning Areas on 
maps incorporated into the bill by reference. Maps are drawn 
using medial lateral boundary principles with equitable 
adjustments on a proportional basis. Among other things, the 
maps ensure that all coastal States have Adjacent Zones that 
extend to the outer edge of the United States Exclusive 
Economic Zone. Without this equitable provision, the Adjacent 
Zones of seven coastal States would be ``pinched-out'' close to 
the coastline. Fin addition, this section provides that the 
line between the Alabama and Florida Adjacent Zones extends due 
south from the coastline for 125 miles.

Section 5. Administration of leasing

    This section adds new subsections to Section 5 of the OCSLA 
(43 U.S.C. 1334) to provide that a lessee may voluntarily 
relinquish a part of its producing lease if the Secretary of 
the Interior finds that the part of the lease to be 
relinquished is geologically prospective. In return, the 
Secretary shall provide the lessee with a royalty incentive on 
the portion of the lease retained by the lessee. This provision 
is expected to make large deep gas prospects on the Gulf of 
Mexico shelf available for leasing and production, while 
keeping the existing depleting fields in production. This 
section also provides for natural gas lease regulations to be 
issued by the Secretary. Finally, the section limits natural 
gas leases to tracts wholly within 100 miles of the coastline 
within areas withdrawn from leasing on the day after the date 
of enactment.

Section 6. Grant of leases by Secretary

    This section amends Section 8 of the OCSLA (43 U.S.C. 1337) 
and authorizes the Secretary of the Interior to issue a second 
lease on a tract, a part of which was voluntarily relinquished 
under Section 5. It also encourages alternative energy 
development by increasing the Adjacent State's share of 
receipts from alternative energy and other activities on the 
OCS from 27 to 75 percent within 12 miles, and from 27 to 50 
percent beyond 12 miles, and extends the distance within which 
sharing applies from 15 miles to 200 miles. It also authorizes 
the Secretary to grant natural gas leases within 100 miles of 
the coastline.
    Furthermore, the section defines the provisions of a 
natural gas lease, provides a process for possible production 
of crude oil from the lease, provides for repurchase of a 
natural gas lease under certain circumstances, and provides for 
a preference right for the lessee in case of future oil and gas 
leasing.
    The section removes restrictions on joint bidders within 
the Alaska OCS Region and within other areas where the 
Secretary determines the tracts to be ``frontier tracts'' or 
otherwise ``high cost tracts.''
    The section eliminates receipts sharing under the Outer 
Continental Shelf Lands Act Section 8(g) effective October 1, 
2006 (because new sharing provisions supercede this sharing 
authority).
    This section also establishes ``conservation of resources 
fees'' for non-producing leases and deep water (greater than 
200 meters) producing leases that are not paying royalties. The 
fee for these producing leases kicks in when prices exceed 
$40.50 per barrel for oil and $6.75 per million Btu for natural 
gas in 2006 dollars. The fees apply to production starting 
October 1, 2005. This new fee addresses the mistake made in 
leases issued in 1998 and 1999 (where price triggers for 
royalties were not included in the lease) without violating 
contractual obligations the United States has with the lease 
holders.

Section 7. Disposition of receipts

    This section amends OCSLA Section 9 (43 U.S.C. 1338). 
Sharing from leases begins on October 1, 2005, with the rate of 
sharing from current program areas being phased-in, while new 
program areas share at the full rate immediately. Full phase-in 
of sharing to 50 percent of OCS receipts (beyond four marine 
leagues) occurs in 2023 for payments in 2022. The section 
creates a new sharing zone between the offshore State boundary 
and four marine leagues (12 nautical miles). Within this zone, 
75 percent is shared immediately. Beyond four marine leagues, 
the bill allocates, using formulas, 50 percent of revenues to 
Adjacent States, nearby States, all producing States, the new 
Federal Energy Natural Resources Enhancement Fund (Section 14), 
the new Federal Energy and Mineral Resources Professional 
Development Fund (Section 23), and the new National Geo Fund 
(Section 26). A large part of the receipts shared with States 
are further shared with local coastal political subdivisions.
    This section further provides that shared funds may be used 
for any other purpose as determined by State law, including 
possible reduction of in-State college tuition, transportation 
infrastructure improvements, tax reduction, coastal or 
environmental restoration, improving infrastructure associated 
with energy production activities conducted on the outer 
Continental Shelf, and to fund energy demonstration projects 
and supporting infrastructure for energy projects. The section 
also provides that no State or local government recipient of 
funds under these provisions shall be required to account to 
the federal government for the expenditure of the funds unless 
otherwise provided by law. Shared funds may be used as matching 
funds for other federal programs.

Section 8. Review of Outer Continental Shelf exploration plans

    This section amends Section 11 of the OCSLA (43 U.S.C. 
1340) to require holders of oil and gas, or natural gas, leases 
to submit an exploration plan to the Secretary of the Interior 
for review for compliance with mandated lease terms and 
applicable statutes and regulations.

Section 9. Reservation of lands and rights

    This section amending OCSLA Section 12 (43 U.S.C. 1341) 
clarifies that the President has the authority to completely 
revise or revoke any prior Presidential withdrawal of lands 
from oil and gas exploration and development. The section 
revokes the current Presidential withdrawals. Further, 
withdrawals shall be for a term not to exceed 10 years at any 
one time. It also provides that the President, when considering 
a potential withdrawal, shall, to the maximum extent 
practicable, accommodate competing interests and potential uses 
of the OCS.
    The section provides for no leasing in perpetuity within 50 
miles of the coastline within areas currently unavailable for 
leasing, unless the Adjacent State petitions for leasing (opt 
out). The section provides that Adjacent States have one year 
in which to petition the Secretary to prevent (opt in) natural 
gas leasing in areas currently unavailable for leasing, and 
three years in which to petition to prevent oil and gas 
leasing. If the State fails to act within those time periods, 
its Adjacent Zone between 50 and 100 miles will be made 
available for leasing. The section also makes the area 
currently under moratoria immediately available for leasing if 
it is more than 100 miles from the coastline.
    The section provides a method for Adjacent States (Governor 
with concurrence of the legislature) to seek approval from the 
Secretary of the Interior to ``opt out'' of any withdrawals, 
including the option of the State to request oil and natural 
gas leasing, or natural gas leasing. States may only petition 
for natural gas leasing within 100 miles of the coastline. 
Leasing may not take place within 25 miles of the nearest point 
of the coastline of a Neighboring State, nor may an oil andgas 
lease be issued within 50 miles of the coastline of a Neighboring 
State, unless the Neighboring State has leasing within those same 
distances or expresses its concurrence.
    The section directs the Secretary to amend the existing 5-
Year Program to include leasing in areas where a State's 
petition to ``opt out'' has been approved.
    The section further provides States whose Adjacent Zone 
contains an area withdrawn from leasing between 50 and 100 
miles from the coastline the option of petitioning to extend 
the existing Presidential withdrawals in up to 5-year 
increments ad infinitum, with a total of 10 years of withdrawal 
left at any one point in time. The petition must be by Governor 
with concurrence of the legislature.
    The section amends the 2002-2007 5-Year Program to provide 
for a lease sales in the areas added to the Gulf of Mexico OCS 
Region Central Planning Area. It provides that any future 
leasing in the so-called ``stovepipe'' area within the Alabama 
Adjacent Zone would require the concurrence of Alabama and 
Florida.

Section 10. Outer Continental Shelf Leasing Program

    This section amends Section 18 of the OCSLA (43 U.S.C. 
1344) to provide that the Secretary of the Interior shall 
include projections of OCS receipts sharing within each 5-Year 
leasing program as if all areas would be available for leasing. 
The Secretary shall also include a macroeconomic estimate of 
the impact of such leasing on the national economy and each 
State's economy, including investment, jobs, revenues, personal 
income, and other categories. The section restricts the 5-Year 
Program to three versions rather than the current four, 
requires that the Program include 75 percent of the available, 
unleased acreage in each OCS planning area, and requires 
analysis of leasing all areas without regard to other law 
affecting such leasing.
    This section further provides for resolution by the 
President of any unresolved conflicts between use of the OCS 
for military purposes and energy production.

Section 11. Coordination with adjacent States

    This section amends Section 19 of the OCSLA (43 U.S.C. 
1345) and provides that no federal agency may permit or 
approve, without the concurrence of the Adjacent State, the 
construction of a crude oil or petroleum products pipeline (or 
both) within the part of the State's Adjacent Zone that is not 
available by law for oil and gas leasing or natural gas 
leasing, with one exception for crude oil produced from the 
State's Adjacent Zone. It also provides that States may not 
prohibit the landing of a natural gas pipeline transporting 
natural gas from the OCS; however, a State may veto a 
particular landing location if it proposes two acceptable 
landing locations within 50 miles on either side of the 
proposed location.

Section 12. Environmental studies

    This section amends OCSLA Section 20 (43 U.S.C. 1346) and 
provides for categorical exclusions under the National 
Environmental Policy Act for suspensions and preliminary 
activities on an offshore lease that has no, or minor, impact 
on the environment. It provides that the Environmental Impact 
Statement (EIS) for the 5-Year Leasing Program is sufficient 
for all lease sales to be conducted under the Program. It 
provides that OCS exploration plans shall not require an EIS, 
and may be categorically excluded because history has shown 
that exploration plans cause only minor impacts, if detectable.
    The section also strengthens environmental review 
provisions by requiring that at least every 10 years a 
development plan in each planning area must be subject to an 
EIS. Current OCSLA provisions only require the first 
development plan in each region to be subject to an EIS.

Section 13. Review of Outer Continental Shelf development and 
        production plans

    This section amends Section 25 of the OCSLA (43 U.S.C. 
1351) and requires holder of oil or natural gas lease to submit 
a development and production plan to Secretary of the Interior 
for review for compliance with mandated lease terms and 
applicable statutes and regulations. It also requires 
collaboration between Secretary of the Interior and affected 
States' Governors.

Section 14. Federal Energy Natural Resources Enhancement Fund Act of 
        2006

    This section establishes a fund for the monitoring, 
management, and enhancement of wildlife and fish, and their 
habitats, and air, water, and other natural resources related 
to energy and minerals development on federal onshore and 
offshore lands.
    The fund will receive 1 percent through fiscal year 2015 
and 2.5 percent thereafter of federal onshore mineral leasing 
bonus bids and royalties, together with 2.5 percent of phased-
in revenue from the OCS. One- third of the Fund is paid 
annually to the Secretary of the Interior for use by the Fish 
and Wildlife Service, Bureau of Land Management, and the 
Minerals Management Service. Two- thirds of the Fund will go to 
the State from which the revenues were derived.

Section 15. Termination of effect of laws prohibiting the spending of 
        appropriated funds for certain purposes

    This section eliminates any existing leasing moratoria 
provisions in appropriation laws for the current fiscal year.

Section 16. Outer Continental Shelf incompatible use

    This section protects against OCS uses that are 
incompatible with ``substantially full'' exploration and 
production of oil and natural gas from geologically prospective 
tracts in areas that are available for leasing by law. The 
President may allow exceptions based on a national interest 
finding.

Section 17. Repurchase of certain leases

    This section authorizes the Secretary of the Interior to 
repurchase and cancel onshore and offshore leases if the lease 
is not allowed to be explored and/or developed under certain 
circumstances. A similar provision was included as part of H.R. 
6, as approved by the House on Representatives on April 21, 
2005.

Section 18. Offsite environmental mitigation

    This section provides that the Secretary of the Interior 
shall allow offsite mitigation if the mineral lessee (onshore 
or offshore) makes a proposal that generally achieves the 
purpose for which mitigation measures appertain.

Section 19. Amendments to the Mineral Leasing Act

    This section updates Section 17 of the Mineral Leasing Act 
(30 U.S.C. 226) to be more compatible with OCS development by 
requiring compliance with plan review, revision, and 
completeness procedures.

Section 20. Minerals management service

    This section renames the ``Minerals Management Service'' in 
the Department of the Interior as the ``National Ocean 
Resources and Royalty Service.''

Section 21. Authority to use decommissioned offshore oil and gas 
        platforms and other facilities for artificial reef, scientific 
        research, or other uses

    This section creates a new Section 10 of the OCSLA and 
provides that decommissioned offshore oil and gas production 
platforms may be retained in place as artificial reefs and for 
other purposes. The section also provides for regulation of 
such facilities, and provides that Adjacent States may require 
removal of such platforms within 12 miles of the coastline. The 
section gives the Secretary of the Interior guidance in 
processes required for proper decommission of platforms and 
other studies.

Section. 22. Repeal of requirement to conduct comprehensive inventory 
        of OCS oil and natural gas resources

    This section repeals Section 357 of the Energy Policy Act 
of 2005 (Public Law 109-58; 119 Stat. 720; 42 U.S.C. 15912) 
which requires the Secretary of the Interior to conduct a 
comprehensive inventory, including 3-D seismic surveys, of all 
OCS lands. The Secretary has no funds to contract for 3-D 
seismic surveys and the resource assessment part of the 
inventory is duplicative of other law.

Section 23. Mining and petroleum schools

    This section establishes the ``Federal Energy and Mineral 
Resources Professional Development Fund.'' It gives the 
Secretary of the Interior the authority to make deposits into 
the Fund and directs that the Fund will receive 1 percent 
through fiscal year 2015 and 2.5 percent thereafter of federal 
onshore mineral leasing bonus bids and royalties, together with 
2.5 percent of the phased-in revenue sharing in the OCS. These 
monies are to maintain and encourage the growth of the energy 
and minerals workforce. This section repeals the currently 
unfunded and inoperative Mining and Mineral Resource Institutes 
Act of 1984 (Public Law 98-409), and makes it national policy 
to preserve and foster the human capital necessary for national 
economic, energy and minerals security.
    Under this section, funds go to support existing programs 
at ABET-accredited petroleum and mining schools, applied 
geology and geophysics programs, and to individuals for degrees 
in petroleum and mining engineering, petroleum/mining geology 
and geophysics, and mineral economics. All university level 
schools accepting the funds have a duty to increase the number 
of undergraduates enrolled in the supported programs and to 
produce more engineers, geologists and geophysicists for the 
petroleum and mining industries. Funds go to support programs 
at colleges, universities, community colleges, tribal colleges, 
and technical institutes for career technical education 
programs to train skilled workers in the oil and gas, coal and 
mineral mining industries. Additionally funds can go to support 
State-approved programs at secondary schools offered 
cooperatively with higher education institutions that provide 
career technical education for agriculture, forestry, 
fisheries, utilities, construction, manufacturing, and 
transportation and warehousing. Oversight and administration of 
the program is vested in the Secretary of the Interior and in 
an advisory committee comprised of State officials and industry 
officials.

Section 24. Onshore and offshore mineral lease fees

    This section prevents the creation of new fees by 
Department of the Interior applicable to federal onshore and 
offshore mineral leases that were not in effect on the date of 
lease issuance.

Section 25. OCS regional headquarters

    This section requires the Gulf of Mexico OCS Regional 
Headquarters to be permanently established within Louisiana 
within 25 miles of the center of Jackson Square, New Orleans. 
It requires the Secretary of the Interior to establish 
headquarters by January 1, 2008, and provides location 
guidelines. The section further provides that the Atlantic and 
Pacific regional directors shall be employees within the Senior 
Executive Service.

Section 26. National Geo Fund

    This section establishes the ``National Geo Fund.'' It 
directs Secretary of the Interior to make deposits into the 
Fund and directs that the Fund will receive 1 percent through 
fiscal year 2015 and 2.5 percent thereafter of federal onshore 
mineral leasing bonus bids and royalties, together with 2.5 
percent of the phased-in revenue sharing in the OCS.
    The section directs the Secretary of the Treasury to 
annually convey 1/3 of the Fund to the Secretary of the 
Interior and 2/3 to the States (based on a formula devised by 
the Secretary of theInterior) to conduct geologic mapping, 
preserve and make geologic data available for use, manage geologic 
programs, seismic monitoring programs, geothermal, unconventional 
energy, and renewable energy management and grants.
    It makes available $65 million in fiscal year 2007 for 
implementation, and $50 million for fiscal years 2008 through 
2013, and sets guidelines for State expenditures of such funds.
    It also provides funding for pilot projects, including 
Maverick Basin heavy oil and tar sands; Greater Green River 
Basin heavy oil, oil shale, tar sands and coal deposits; heavy 
oil, tar sands and coal deposits in Alabama-Mississippi-
Tennessee region; Ohio River Valley tar sands, heavy oil and 
coal deposits; and strategic unconventional resources in 
California. It also directs the Secretary to carry out a grant 
program for no less than three assessments of the use of 
geothermal techniques for oil and gas well production 
enhancement. Finally, it provides funding for coal to liquids 
programs.

Section 27. Leases for areas located within 100 miles of California or 
        Florida

    This section grants the Secretary of the Interior the 
authority, on request of a lessee, to cancel existing leases 
located completely within 100 miles of the coastline within the 
California and Florida Adjacent Zones and exchange them for new 
leases in areas available for leasing.
    Such new leases shall be subject to any applicable national 
defense operating restrictions. The section directs that any 
exploration plan submitted to the Secretary after the date of 
enactment and before July 1, 2010, for an oil and gas lease 
wholly within 100 miles of the coastline within the California 
and Florida Adjacent Zones shall not be treated as received by 
the Secretary until the earlier of July 1, 2010, or the date on 
which a State petition for leasing in the area was approved. 
The section provides that an existing oil and gas lease located 
partially within 100 miles of the coastline within the Florida 
Adjacent Zone may only be developed and produced using wells 
drilled from well-head locations at least 100 miles from the 
coastline to any bottom-hole location on the area of the lease.

Section 28. Coastal impact assistance

    Repeals OCSLA Section 31 (43 U.S.C. 1356a) which provides 
for coastal impact assistance (those provisions are superceded 
by other provisions in this bill).

Section 29. Oil shale and tar sands amendments

    This section strengthens the new oil shale program 
implemented through the Energy Policy Act of 2005 by 
establishing a royalty framework built upon the successful 
Canadian model that helped spur the more than 1 million 
barrels/day in oil production from Alberta's oil sands. It 
ensures ``host'' States retain \2/3\ of the non-federal share 
of oil shale and tar sands lease revenues, and ensures \1/3\ 
goes to counties ``hosting'' the oil shale and tar sands 
production. Further, during the first 20 years of production 
from a lease, the State and counties will receive 50 percent of 
the federal share of lease revenues, including bonus bids and 
royalties. These funds may be used by the State and counties to 
support infrastructure related to oil shale and tar sands 
production.

Section 30. Availability of OCS receipts to provide payments under 
        Secure Rural Schools and Community Self-Determination Act of 
        2000

    This section would provide $50,000,000 from OCS receipts 
for each of fiscal years 2007 through 2012 to fund the Secure 
Rural Schools and Community Self-Determination Act (Public Law 
106-393). This Secure Rural Schools Act provides funding for 
rural forested counties that no longer receive revenues from 
federal timber sales due to the collapse in the federal timber 
program in the 1990s. The revenues received by counties are to 
be used on public education and transportation, resource 
projects on public land and search, rescue and emergency 
services. The Committee intends that funding only be provided 
if the authority to initiate projects under the Secure Rural 
Schools Act (due to expire at the end of fiscal year 2006) is 
reauthorized.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                  Federal Advisory Committee Statement

    The functions of the proposed advisory committee authorized 
in the bill are not currently being nor could they be performed 
by one or more agencies, an advisory committee already in 
existence or by enlarging the mandate of an existing advisory 
committee.

                   Constitutional Authority Statement

    Article I, section 8, clauses 14 and 18 of the Constitution 
of the United States grants Congress the authority to enact 
this bill.

                    Compliance with House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. According to the Congressional Budget Office, 
enactment of this bill will increase net direct spending by 
$900M in 2007, $3.2B over the 2007-2011 period and $11B over 
the 2007 through 2016 time span.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to provide for exploration, 
development, and production activities for mineral resources on 
the outer Continental Shelf, and for other purposes.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 26, 2006.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4761, the Deep 
Ocean Energy Resources Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kathleen 
Gramp.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 4761--Deep Ocean Energy Resources Act of 2006

    Summary: H.R. 4761 would make several changes to programs 
related to the development of federally owned resources, 
particularly oil and natural gas. The legislation also would 
provide new authority to spend receipts from mineral leases.
    On balance, CBO estimates that enacting H.R. 4761 would 
increase net direct spending by about $900 million in 2007, 
$3.2 billion over the 2007-2011 period, and $11.0 billion over 
the 2007-2016 period. The bulk of those effects would reflect 
changes in receipts from leases of submerged lands on the Outer 
Continental Shelf (OCS) and the distribution of such receipts.
    H.R. 4761 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA). CBO expects that 
enacting this legislation would benefit a number of state, 
local, and tribal governments.
    CBO will provide a separate analysis of H.R. 4761's impact 
on the private sector.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4761 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment), 800 (general government), 
and 950 (undistributed offsetting receipts).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Outlays in Billions of Dollars, by Fiscal Year
                                       -----------------------------------------------------------------------------------------------------------------
                                          2007     2008     2009     2010     2011     2012     2013     2014     2015     2016    2007-2011   2007-2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Changes in Direct Spending

Changes in the Terms of Oil and Gas
 Leases
    Fee on deepwater OCS leases.......        0     -0.8     -0.8     -0.9     -1.2     -1.1     -1.2     -1.7     -1.9     -1.7       -3.8       -11.4
    Fee on nonproducing leases........        0     -0.1     -0.1     -0.1     -0.1     -0.1     -0.1     -0.1     -0.1     -0.1       -0.5        -1.1
    New price thresholds for royalty          0      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.2      0.2        0.5         1.2
     relief for certain leases........
    Change in royalty rate for new OCS        *        *        *        *        *        *      0.1      0.1      0.2      0.2       -0.1         0.5
     leases...........................
    Compensation for certain                  0      0.6      0.6        *        *        *        *        *        *        *        1.2         1.2
     nonproducing leases..............
    Other changes to lease terms......        *        *        *        *        *        *        *        *        *        *          *         0.1
Expand Federal Areas Subject to               0     -0.3     -0.2     -0.5     -0.3     -0.3     -0.5     -0.6     -0.7     -0.8       -1.2        -4.0
 Mineral Leasing......................
Changes in Authority to spend Federal
 Mineral Receipts
    Repeal of certain OCS receipt-         -0.3     -0.3     -0.3     -0.3     -0.1     -0.1     -0.1     -0.1     -0.1     -0.1       -1.4        -2.0
     sharing programs.................
    New OCS receipt-sharing with            0.8      0.9      1.4      1.2      1.7      2.0      2.3      3.0      3.4      3.8        6.1        20.7
     states...........................
    Other federal programs............      0.4      0.4      0.5      0.5      0.6      0.6      0.6      0.7      0.8      0.9        2.3         5.9
                                       -----------------------------------------------------------------------------------------------------------------
        Total Changes.................      0.9      0.5      1.2      0.0      0.7      1.2      1.2      1.4      1.8      2.3        3.2        11.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Memorandum:
    OCS Receipts Under Current Law \1\     -8.3    -10.5     -9.8    -10.0    -10.1     -9.4    -11.0    -10.9    -10.9    -11.2      -48.7      -102.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
OCS = Outer Continental Shelf.
Budget authority is equal to outlays for most programs that involve collection and spending of OCS receipts.
* = Between -$50 million and $50 million.
Notes: Details may not sum to totals because of rounding.
\1\ The current-law estimates are from CBO's march 2006 baseline. The receipt estimates are net of payments to states to share proceeds from leases
  located within specified distances of their coastlines.

    Basis of Estimate: H.R. 4761 would make several changes to 
programs related to the development of federally owned 
resources, particularly oil and natural gas in submerged lands 
on the Outer Continental Shelf. The legislation would change 
the financial terms of certain OCS leases, authorize new oil 
and gas leasing in certain areas of the OCS, and provide new 
authority to spend receipts from both OCS and onshore mineral 
leases.
    On balance, CBO estimates that enacting H.R. 4761 would 
increase net direct spending by $11 billion over the 2007-2016 
period. That estimated impact is dominated by new spending for 
direct payments to states totaling about $20.6 billion over the 
2007-2016 period. For this estimate, CBO assumes that H.R. 4761 
will be enacted near the start of fiscal year 2007. Estimates 
for key provisions are described below.

Changes in the financial terms of oil and gas leases

    H.R. 4761 would modify the terms of certain leases issued 
by the Department of the Interior (DOI). Taken together, CBO 
estimates that these provisions would increase offsetting 
receipts (thereby reducing direct spending) by a total of $9.4 
billion over the 2007-2016 period.
    Fee on Deepwater OCS Leases. Section 6 would impose a new 
fee on lessees producing oil or gas in deep waters of the OCS 
unless the lease includes limits on the firm's eligibility for 
royalty relief when oil and gas prices exceed price thresholds 
specified in the bill ($40.50 per barrel of oil and $6.75 per 
million Btu of natural gas, both in 2006 dollars). This 
``conservation of resources'' fee would be set at $9 per barrel 
of oil and $1.25 per million Btu for natural gas and would 
apply retroactively to volumes produced since October 1, 2005. 
The Secretary of the Interior would be required to renegotiate 
certain leases issued in the Gulf of Mexico from December 1, 
1995, through December 31, 2000, if requested by the lessee. 
The bill would require the Secretary to issue regulations 
implementing the fee within one year after enactment of the 
bill. The bill also specifies that proceeds from the fee would 
be treated as offsetting receipts for the purposes of budgetary 
accounting.
    This provision would apply to certain deepwater leases 
issued in 1998 and 1999 that provided royalty relief regardless 
of the market price of oil or gas. Based on information from 
the DOI regarding future production from those leases and CBO's 
current forecast of future oil and gas prices, CBO estimates 
that those lessees would pay an additional $11.4 billion over 
the next 10 years, assuming they opted to pay royalties instead 
of the proposed fee.
    Under CBO's price assumptions, the proposed fee would cost 
lessees more than royalty payments under renegotiated leases. 
Thus, we expect that most lessees would exercise the bill's 
option for renegotiating the affected leases that do not 
include price thresholds.
    CBO anticipates that companies would wait until after the 
rules are issued to decide which option they prefer, based on 
their expectations about future prices and production. Thus, we 
expect that any payments would most likely begin in fiscal year 
2008. For this estimate, CBO assumes that the department would 
allow the companies to spread the amounts due on their 2006 and 
2007 production over a four-year period.
    Fee on Nonproducing Leases. Section 6 also would impose a 
new ``conservation of resources'' fee on new and existing 
leases that are not in production, retroactive to October 1, 
2005. The bill would direct the Secretary to set this fee at no 
less than $1 per acre and no more than $4 per acre, and would 
specify that the payments be classified as offsetting receipts 
for purposes of budgetary accounting. For this estimate, CBO 
assumes that the Secretary would set the fee at the midpoint of 
the range, or $2.50 per acre. Based on historical data on the 
amount of nonproducing acreage on the OCS, we estimate that 
implementing this fee would increase offsetting receipts from 
areas leased under current law by about $500 million over the 
next five years and about $1.1 billion over the 2007-2016 
period.
    New Price Thresholds for Certain Royalty Relief. Under this 
bill, firms holding deepwater leases issued between 1996 and 
2000 could renegotiate those leases to incorporate the price 
thresholds specified in the bill. The opportunity to 
renegotiate would apply to all such leases, including those 
that already limit eligibility for royalty relief when prices 
exceed certain levels. Because the price thresholds in the bill 
are higher than the prices reflected in the existing lease 
contracts--especially for natural gas--CBO expects that most 
firms would choose to renegotiate their existing leases. 
Raising the price thresholds in the contracts would reduce the 
likelihood that a lessee would have to pay royalties if prices 
decline in the future. CBO estimates that enacting this 
provision would reduce royalty collections by about $1.2 
billion over the next 10 years, based on our current outlook 
for future energy prices and expectations regarding price 
volatility.
    Change in Royalty Rate for New OCS Leases. Under current 
law, the royalty rate for production on the OCS varies 
depending on the depth of the water. Lessees generally pay a 
12.5 percent royalty on revenues from oil and gas produced in 
waters more than 400 meters deep, and 16.7 percent in more 
shallow water. Section 6 would require a uniform royalty rate 
for all OCS production from new leases.
    For this estimate, CBO assumes that the Secretary would set 
the royalty rate at 12.5 percent for new leases, rather than 
increasing the rate paid in deeper waters. (Under current law 
the royalty rate cannot be less than 12.5 percent.) CBO expects 
that lowering the royalty rate on new leases in shallow water 
would reduce federal royalties, but would also increase bonus 
bids for new leases in that area because of the increased 
profitability of those leases. Using CBO's baseline assumptions 
regarding bonuses and royalties that will be derived from such 
leases, we estimate that enacting this provision would increase 
offsetting receipts by about $100 million over the next five 
years (reflecting higher bonus bids in the near term) but would 
increase direct spending by about $500 million over the 10-year 
period (reflecting the net effect of royalty losses once 
production begins on the leases).
    Compensation for Certain Nonproducing Leases. Section 17 
would direct the Secretary of the Interior to repurchase and 
cancel certain federal leases and to compensate the lessee for 
the amount that the lessee would receive in a restitution case 
for material breach of contract. The bill would compel the 
Secretary to make these payments after receiving a written 
request from the lessee and making certain findings. Under the 
bill, eligibility for compensation could be based on several 
factors, including:
           If the lessee was denied certain permits or 
        approvals despite compliance with applicable laws 
        (except for compliance with the Coastal Zone Management 
        Act),
           If a federal agency failed to act on an 
        application for permits or approvals within a specified 
        period of time, or .
           If a federal agency attached conditions to a 
        lease that were unacceptable to the lessee and not 
        specifically allowed under the terms of the lease.
    The lessee would not be required to exhaust other 
administrative venues before requesting resolution under this 
section.
    Based on the status of certain litigation involving OCS 
leases off the coast of California, CBO estimates that enacting 
this provision could cost the federal government about $1.2 
billion over the next 10 years.
    Other Provisions Affecting Payments from Lessees. Other 
provisions in the bill would reduce the amounts paid to the 
government by lessees, relative to current law. For example, 
the bill would prohibit the Department of the Interior from 
charging fees related to federal actions on offshore or onshore 
leases that were not established in final regulations prior to 
issuance of the lease. It also would allow lessees to exchange, 
within two years of enactment, existing oil and gas leases that 
are located within 100 miles of the coasts of California or 
Florida for certain tracts being offered for lease in other 
areas. Finally, the bill would allow those holding a producing 
lease to relinquish any portion of the lease deemed productive 
in exchange for a royalty incentive on the portion retained by 
the lessee. CBO estimates that enacting these provisions would 
increase direct spending by between $50 million and $100 
million over the 2007-2016 period.

Expand federal areas subject to mineral leasing

    Under H.R. 4761, the Secretary of the Interior would offer 
some OCS areas for leasing that otherwise may not have been 
leased over the next 10 years under current policies. Subject 
to state decisions about the potential leasing of some of the 
new areas, CBO estimates that leasing these new areas would 
increase federal receipts from bonuses, royalties, rental 
payments, and conservation of resources fees by a total of $4 
billion over the next 10 years.
    Under current law, moratoria generally prohibit new leasing 
and pre-leasing activities in most OCS areas outside of the 
western and central Gulf of Mexico (leasing occurs in small 
parts of the eastern Gulf of Mexico and the Alaskan OCS). Under 
current law, those moratoria are in effect through June 2012. 
As a result, CBO does not expect significant receipts from new 
offshore leases to be generated in the moratorium areas--under 
current law--over the next 10 years.
    Upon enactment of the bill, the moratoria would no longer 
apply to areas more than 100 miles from the coast or to certain 
areas within the central Gulf of Mexico planning area. In 
addition, states would have some discretion over whether to 
allow new leasing for oil or natural gas within 100 miles of 
their coastline. Leasing would be prohibited within 50 miles of 
the coast in areas previously under leasing restrictions unless 
a state requests that the area be opened leasing. The Secretary 
of the Interior would be required to lease areas between 50 and 
100 miles of the coast after June 30, 2009, unless a state 
submits a petition requesting that the area be withdrawn from 
leasing for a period of up to five years. State petitions to 
allow or prohibit leasing would be subject to various 
procedural requirements.
    CBO estimates that gross proceeds from bonuses for new OCS 
leases paid by winning bidders and royalties from the 
associated production would total about $1.2 billion over the 
2007-2011 period and $4 billion over the 2007-2016 period. That 
estimate relies on studies prepared by DOI on the oil and gas 
resources that might be produced in areas where CBO expects new 
leasing would occur, particularly the eastern Gulf of Mexico, 
the Pacific OCS, the Atlantic OCS, and the Alaskan OCS. 
Although CBO cannot predict the extent to which states would 
choose to allow leasing within the 100-mile limit, CBO assumes 
that there is a 50 percent chance that most states would allow 
some leasing to occur. Under the deadlines specified in the 
bill, CBO expects that some leasing in new areas would occur 
toward the end of fiscal year 2007, resulting in additional 
receipts starting in 2008.
    Other provisions in the bill would authorize new types of 
leases on the OCS, including leases that only allow for the 
development of natural gas resources (but not oil) within 100 
miles of the coastline, leases for different vertical or 
horizontal areas within a tract, and leases to extract oil and 
gas from restricted areas by means of extended reach or similar 
drilling methods. CBO does not have sufficient information at 
this time on the technical feasibility or market value of such 
arrangements to assess the timing or magnitude of any 
additional receipts from such types of leases.

Changes in authority to spend federal mineral receipts

    CBO estimates that other provisions of H.R. 4761 would 
increase net direct spending of OCS and onshore receipts by 
about $900 million in 2007 and $24.5 billion over the 2007-2016 
period. That estimate includes the effects of provisions that 
would repeal existing programs to share OCS receipts with 
states, establish a new program to share those receipts, and 
provide funding for other federal programs.
    Repeal of Existing Programs to Share OCS Receipts with 
States. Under current law, certain coastal states receive 27 
percent of receipts from leases on OCS land located within 
specified distances of their coastlines. In addition, from OCS 
receipts, current law provides $250 million a year over the 
2007-2010 period for payments to certain states to support 
efforts to restore and enhance coastal resources. H.R. 4671 
would end both of those programs. CBO estimates that resulting 
savings would total over $300 million in 2007 and $2 billion 
over the 2007-2016 period.
    New Program to Share OCS Receipts with States. H.R. 4761 
would specify new requirements for sharing OCS receipts with 
states that would result in significantly larger payments than 
those provided under current law. In general, states would 
receive direct payments equal to 85 percent of the following 
amounts (the remaining 15 percent would be used for other 
federal programs, as described in the following section):
           From leases within 12 miles of shore, 75 
        percent of bonuses, royalties, and conservation fees;
           From leases beyond 12 miles of shore located 
        within areas made newly available under H.R. 4761, 50 
        percent of bonuses, royalties, and conservation fees;
           From leases beyond 12 miles of shore located 
        within areas where leasing is permitted under current 
        law, 6 percent of bonuses, royalties, and conservation 
        fees generated in 2006, increasing to 50 percent by 
        2022.
    CBO estimates that total payments under the proposed 
formulas would total about $800 million in 2007 and nearly 
$20.6 billion over the 2007-2016 period, with payments 
continuing in perpetuity beyond that time. Over the next 10 
years, we estimate that roughly $18.9 billion of payments would 
come from leases we expect to generate receipts under current 
law, taking into account proposed changes to the fiscal terms 
of such leases. We estimate that the balance of payments--$1.7 
billion--would come from leases issued pursuant to H.R. 4761.
    Other Federal Programs. The legislation would authorize the 
Secretary to spend, without further appropriation action, a 
portion of the proceeds from new OCS leases as well as 
specified percentages of amounts that would be collected under 
current law from onshore and offshore mineral leases. Funding 
would support programs to enhance natural resources; provide 
financial support to certain colleges, universities, and 
vocational schools; develop geologic information; and make 
payments to certain states and counties to support rural 
schools. Based on historical spending patterns for activities 
similar to those proposed, CBO estimates that new direct 
spending under the legislation would total about $400 million 
in 2007 and about $5.9 billion over the 2007-2016 period, with 
additional spending continuing for many years after 2016.
    Estimated impact on state, local, and tribal governments: 
H.R. 4761 contains no intergovernmental mandates as defined in 
UMRA. CBO expects that enacting this legislation would benefit 
some coastal states and localities by providing for greater 
sharing of federal receipts from oil and gas leases in the 
Outer Continental Shelf. These and other states also would 
benefit from various grants and payments authorized by this 
bill.
    Enacting this bill also would give coastal states greater 
input about whether mineral leasing will be allowed in waters 
near their coasts. It would give states the opportunity to 
petition the federal government to remove existing restrictions 
on leasing within 50 miles of their shores, but would require 
such a petition, agreed to by the governor and legislature, for 
a state to maintain restrictions in the zone between 50 and 100 
miles from shore.
    Estimated impact on the private sector: CBO will provide a 
separate analysis of H.R. 4761's impact on the private sector.
    Estimate prepared by: Federal Costs: Kathleen Gramp (OCS 
provisions) and Megan Carroll (onshore mineral receipts).
    Impact on State, local, and tribal governments: Marjorie 
Miller.
    Impact on the private sector: Tyler Kruzich.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

OUTER CONTINENTAL SHELF LANDS ACT

           *       *       *       *       *       *       *


  Sec. 2. Definitions.--When used in this Act--
  (a) The term ``outer Continental Shelf'' means all submerged 
lands lying seaward and outside of the area of lands beneath 
navigable waters as defined in section 2 of the Submerged Lands 
Act (Public Law 31, Eighty-third Congress, first session), and 
of which the subsoil and seabed appertain to the United States 
and are subject to its jurisdiction and control[;] or lying 
within the United States exclusive economic zone adjacent to 
the Territories of the United States.
  (b) The term ``Secretary'' means the Secretary of the 
Interior, except that with respect to functions under this Act 
transferred to, or vested in, the Secretary of Energy or the 
Federal Energy Regulatory Commission by or pursuant to the 
Department of Energy Organization Act (42 U.S.C. 7101 et seq.), 
the term ``Secretary'' means the Secretary of Energy, or the 
Federal Energy Regulatory Commission, as the case may be[;].
  (c) The term ``lease'' means any form of authorization which 
is issued under section 8 or maintained under section 6 of this 
Act and which authorizes exploration for, and development and 
production of, minerals[;].
  (d) The term ``person'' includes, in addition to a natural 
person, an association, a State, a political subdivision of a 
State, or a private, public, or municipal corporation[;].
  (e) The term ``coastal zone'' means the coastal waters 
(including the lands therein and thereunder) and the adjacent 
shorelands (including the waters therein and thereunder), 
strongly influenced by each other and in proximity to the 
shorelines of the several coastal States, and includes islands, 
transition and intertidal areas, salt marshes, wetlands, and 
beaches, which zone extends seaward to the outer limit of the 
United States territorial sea and extends inland from the 
shorelines to the extent necessary to control shorelands, the 
uses of which have a direct and significant impact on the 
coastal waters, and the inward boundaries of which may be 
identified by the several coastal States, pursuant to the 
authority of section 305(b)(1) of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1454(b)(1))[;].
  [(f) The term ``affected State'' means, with respect to any 
program, plan, lease sale, or other activity, proposed, 
conducted, or approved pursuant to the provisions of this Act, 
any State--
          [(1) the laws of which are declared, pursuant to 
        section 4(a)(2) of this Act, to be the law of the 
        United States for the portion of the outer Continental 
        Shelf on which such activity is, or is proposed to be, 
        conducted;
          [(2) which is, or is proposed to be, directly 
        connected by transportation facilities to any 
        artificial island or structure referred to in section 
        4(a)(1) of this Act;
          [(3) which is receiving, or in accordance with the 
        proposed activity will receive, oil for processing, 
        refining, or transshipment which was extracted from the 
        outer Continental Shelf and transported directly to 
        such State by means of vessels or by a combination of 
        means including vessels;
          [(4) which is designated by the Secretary as a State 
        in which there is a substantial probability of 
        significant impact on or damage to the coastal, marine, 
        or human environment, or a State in which there will be 
        significant changes in the social, governmental, or 
        economic infrastructure, resulting from the 
        exploration, development, and production of oil and gas 
        anywhere on the Outer Continental Shelf; or
          [(5) in which the Secretary finds that because of 
        such activity there is, or will be, a significant risk 
        of serious damage, due to factors such as prevailing 
        winds and currents, to the marine or coastal 
        environment in the event of any oilspill, blowout, or 
        release of oil or gas from vessels, pipelines, or other 
        transshipment facilities;]
  (f) The term ``affected State'' means the Adjacent State.
  (g) The term ``marine environment'' means the physical, 
atmospheric, and biological components, conditions, and factors 
which interactively determine the productivity, state, 
condition, and quality of the marine ecosystem, including the 
waters of the high seas, the contiguous zone, transitional and 
intertidal areas, salt marshes, and wetlands within the coastal 
zone and on the outer Continental Shelf[;].
  (h) The term ``coastal environment'' means the physical 
atmospheric, and biological components, conditions, and factors 
which interactively determine the productivity, state, 
condition, and quality of the terrestrial ecosystem from the 
shoreline inward to the boundaries of the coastal zone[;].
  (i) The term ``human environment'' means the physical, 
social, and economic components, conditions, and factors which 
interactively determine the state, condition, and quality of 
living conditions, employment, and health of those affected, 
directly or indirectly, by activities occurring on the outer 
Continental Shelf[;].
  (j) The term ``Governor'' means the Governor of a State, or 
the person or entity designated by, or pursuant to, State law 
to exercise the powers granted to such Governor pursuant to 
this Act[;].
  (k) The term ``exploration'' means the process of searching 
for minerals, including (1) geophysical surveys where magnetic, 
gravity, seismic, or other systems are used to detect or imply 
the presence of such minerals, and (2) any drilling, whether on 
or off known geological structures, including the drilling of a 
well in which a discovery of oil or natural gas in paying 
quantities is made and the drilling of any additional 
delineation well after such discovery which is needed to 
delineate any reservoir and to enable the lessee to determine 
whether to proceed with development and production[;].
  (l) The term ``development'' means those activities which 
take place following discovery of minerals in paying 
quantities, including geophysical activity, drilling, platform 
construction, and operation of all onshore support facilities, 
and which are for the purpose of ultimately producing the 
minerals discovered[;].
  (m) The term ``production'' means those activities which take 
place after the successful completion of any means for the 
removal of minerals, including such removal, field operations, 
transfer of minerals to shore, operation monitoring, 
maintenance, and work-over drilling[;].
  (n) The term ``antitrust law'' means--
          (1) * * *

           *       *       *       *       *       *       *

          (5) the Act of June 19, 1936, chapter 592 (15 U.S.C. 
        13, 13a, 13b, and 21a)[;].
  (o) The term ``fair market value'' means the value of any 
mineral (1) computed at a unit price equivalent to the average 
unit price at which such mineral was sold pursuant to a lease 
during the period for which any royalty or net profit share is 
accrued or reserved to the United States pursuant to such 
lease, or (2) if there were no such sales, or if the Secretary 
finds that there were an insufficient number of such sales to 
equitably determine such value, computed at the average unit 
price at which such mineral was sold pursuant to other leases 
in the same region of the outer Continental Shelf during such 
period, or (3) if there were no sales of such mineral from such 
region during such period, or if the Secretary finds that there 
are an insufficient number of such sales to equitably determine 
such value, at an appropriate price determined by the 
Secretary[;].
  (p) The term ``major Federal action'' means any action or 
proposal by the Secretary which is subject to the provisions of 
section 102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C))[; and].

           *       *       *       *       *       *       *

  (r) The term ``Adjacent State'' means, with respect to any 
program, plan, lease sale, leased tract or other activity, 
proposed, conducted, or approved pursuant to the provisions of 
this Act, any State the laws of which are declared, pursuant to 
section 4(a)(2), to be the law of the United States for the 
portion of the outer Continental Shelf on which such program, 
plan, lease sale, leased tract or activity appertains or is, or 
is proposed to be, conducted. For purposes of this paragraph, 
the term ``State'' includes Puerto Rico and the other 
Territories of the United States.
  (s) The term ``Adjacent Zone'' means, with respect to any 
program, plan, lease sale, leased tract, or other activity, 
proposed, conducted, or approved pursuant to the provisions of 
this Act, the portion of the outer Continental Shelf for which 
the laws of a particular Adjacent State are declared, pursuant 
to section 4(a)(2), to be the law of the United States.
  (t) The term ``miles'' means statute miles.
  (u) The term ``coastline'' has the same meaning as the term 
``coast line'' as defined in section 2(c) of the Submerged 
Lands Act (43 U.S.C. 1301(c)).
  (v) The term ``Neighboring State'' means a coastal State 
having a common boundary at the coastline with the Adjacent 
State.

           *       *       *       *       *       *       *

  Sec. 4. Laws Applicable to Outer Continental Shelf.--(a)(1) * 
* *
  (2)(A) To the extent that they are applicable and not 
inconsistent with this Act or with other Federal laws and 
regulations of the Secretary now in effect or hereafter 
adopted, the civil and criminal laws of each adjacent State, 
now in effect or hereafter adopted, amended, or repealed are 
hereby declared to be the law of the United States for that 
portion of the subsoil and seabed of the outer Continental 
Shelf, and artificial islands and fixed structures erected 
thereon, which would be within the area of the State if its 
boundaries were extended seaward to the outer margin of the 
outer Continental Shelf[, and the President shall determine and 
publish in the Federal Register such projected lines extending 
seaward and defining each such area]. The lines extending 
seaward and defining each State's Adjacent Zone, and each OCS 
Planning Area, are as indicated on the maps for each outer 
Continental Shelf region entitled ``Alaska OCS Region State 
Adjacent Zone and OCS Planning Areas'', ``Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas'', ``Gulf of Mexico 
OCS Region State Adjacent Zones and OCS Planning Areas'', and 
``Atlantic OCS Region State Adjacent Zones and OCS Planning 
Areas'', all of which are dated September 2005 and on file in 
the Office of the Director, Minerals Management Service. All of 
such applicable laws shall be administered and enforced by the 
appropriate officers and courts of the United States. State 
taxation laws shall not apply to the outer Continental Shelf.

           *       *       *       *       *       *       *

  Sec. 5. Administration of Leasing of the Outer Continental 
Shelf.--(a) * * *

           *       *       *       *       *       *       *

  (k) Voluntary Partial Relinquishment of a Lease.--Any lessee 
of a producing lease may relinquish to the Secretary any 
portion of a lease that the lessee has no interest in producing 
and that the Secretary finds is geologically prospective. In 
return for any such relinquishment, the Secretary shall provide 
to the lessee a royalty incentive for the portion of the lease 
retained by the lessee, in accordance with regulations 
promulgated by the Secretary to carry out this subsection. The 
Secretary shall publish final regulations implementing this 
subsection within 365 days after the date of the enactment of 
the Deep Ocean Energy Resources Act of 2006.
  (l) Natural Gas Lease Regulations.--Not later than July 1, 
2007, the Secretary shall publish a final regulation that 
shall--
          (1) establish procedures for entering into natural 
        gas leases;
          (2) ensure that natural gas leases are only available 
        for tracts on the outer Continental Shelf that are 
        wholly within 100 miles of the coastline within an area 
        withdrawn from disposition by leasing on the day after 
        the date of enactment of the Deep Ocean Energy 
        Resources Act of 2006;
          (3) provide that natural gas leases shall contain the 
        same rights and obligations established for oil and gas 
        leases, except as otherwise provided in the Deep Ocean 
        Energy Resources Act of 2006;
          (4) provide that, in reviewing the adequacy of bids 
        for natural gas leases, the value of any crude oil 
        estimated to be contained within any tract shall be 
        excluded;
          (5) provide that any crude oil produced from a well 
        and reinjected into the leased tract shall not be 
        subject to payment of royalty, and that the Secretary 
        shall consider, in setting the royalty rates for a 
        natural gas lease, the additional cost to the lessee of 
        not producing any crude oil; and
          (6) provide that any Federal law that applies to an 
        oil and gas lease on the outer Continental Shelf shall 
        apply to a natural gas lease unless otherwise clearly 
        inapplicable.

           *       *       *       *       *       *       *

  Sec. 8. Leases, Easements, and Rights-of-way on the Outer 
Continental Shelf.--(a)(1) The Secretary is authorized to grant 
to the highest responsible qualified bidder or bidders by 
competitive bidding, under regulations promulgated in advance, 
any oil and gas lease on submerged lands of the outer 
Continental Shelf which are not covered by leases meeting the 
requirements of subsection (a) of section 6 of this Act. 
Further, the Secretary may grant natural gas leases in a manner 
similar to the granting of oil and gas leases and under the 
various bidding systems available for oil and gas leases. Such 
regulations may provide for the deposit of cash bids in an 
interest-bearing account until the Secretary announces his 
decision on whether to accept the bids, with the interest 
earned thereon to be paid to the Treasury as to bids that are 
accepted and to the unsuccessful bidders as to bids that are 
rejected. The bidding shall be by sealed bid and, at the 
discretion of the Secretary, on the basis of--
          (A) * * *

           *       *       *       *       *       *       *

  (3)[(A) The Secretary may, in order to promote increased 
production on the lease area, through direct, secondary, or 
tertiary recovery means, reduce or eliminate any royalty or net 
profit share set forth in the lease for such area.]
  [(B) In the Western and Central Planning Areas of the Gulf of 
Mexico and the portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude and in the Planning Areas 
offshore Alaska, the Secretary] (A) The Secretary may, in order 
to--
          (i) * * *

           *       *       *       *       *       *       *

  [(C)] (B) * * *

           *       *       *       *       *       *       *

  (b) An oil and gas lease issued pursuant to this section 
shall--
          (1) * * *

           *       *       *       *       *       *       *

The Secretary may issue more than one lease for a given tract 
if each lease applies to a separate and distinct range of 
vertical depths, horizontal surface area, or a combination of 
the two. The Secretary may issue regulations that the Secretary 
determines are necessary to manage such leases consistent with 
the purposes of this Act.

           *       *       *       *       *       *       *

  (g)[(1) At the time of soliciting nominations for the leasing 
of lands containing tracts wholly or partially within three 
nautical miles of the seaward boundary of any coastal State, 
and subsequently as new information is obtained or developed by 
the Secretary, the Secretary, in addition to the information 
required by section 26 of this Act, shall provide the Governor 
of such State--
          [(A) an identification and schedule of the areas and 
        regions proposed to be offered for leasing;
          [(B) at the request of the Governor of such State, 
        all information from all sources concerning the 
        geographical, geological, and ecological 
        characteristics of such tracts;
          [(C) an estimate of the oil and gas reserves in the 
        areas proposed for leasing; and
          [(D) at the request of the Governor of such State, an 
        identification of any field, geological structure, or 
        trap located wholly or partially within three nautical 
        miles of the seaward boundary of such coastal State, 
        including all information relating to the entire field, 
        geological structure, or trap.
The provisions of the first sentence of subsection (c) and the 
provisions of subsections (e)-(h) of section 26 of this Act 
shall be applicable to the release by the Secretary of any 
information to any coastal State under this paragraph. In 
addition, the provisions of subsections (c) and (e)-(h) of 
section 26 of this Act shall apply in their entirety to the 
release by the Secretary to any coastal State of any 
information relating to Federal lands beyond three nautical 
miles of the seaward boundary of such coastal State.
  [(2) Notwithstanding any other provision of this Act, the 
Secretary shall deposit into a separate account in the Treasury 
of the United States all bonuses, rents, and royalties, and 
other revenues (derived from any bidding system authorized 
under subsection (a)(1), excluding Federal income and windfall 
profits taxes, and derived from any lease issued after 
September 18, 1978 of any Federal tract which lies wholly (or, 
in the case of Alaska, partially until seven years from the 
date of settlement of any boundary dispute that is the subject 
of an agreement under section 7 of this Act entered into prior 
to January 1, 1986 or until April 15, 1993 with respect to any 
other tract) within three nautical miles of the seaward 
boundary of any coastal State, or, (except as provided above 
for Alaska) in the case where a Federal tract lies partially 
within three nautical miles of the seaward boundary, a 
percentage of bonuses, rents, royalties, and other revenues 
(derived from any bidding system authorized under subsection 
(a)(1), excluding Federal income and windfall profits taxes, 
and derived from any lease issued after September 18, 1978 of 
such tract equal to the percentage of surface acreage of the 
tract that lies within such three nautical miles. Except as 
provided in paragraph (5) of this subsection, not later than 
the last business day of the month following the month in which 
those revenues are deposited in the Treasury, the Secretary 
shall transmit to such coastal State 27 percent of those 
revenues, together with all accrued interest thereon. The 
remaining balance of such revenues shall be transmitted 
simultaneously to the miscellaneous receipts account of the 
Treasury of the United States.
  [(3)] Whenever the Secretary or the Governor of a coastal 
State determines that a common potentially hydrocarbon-bearing 
area may underlie the Federal and State boundary, the Secretary 
or the Governor shall notify the other party in writing of his 
determination and the Secretary shall provide to the Governor 
notice of the current and projected status of the tract or 
tracts containing the common potentially hydrocarbon-bearing 
area. If the Secretary has leased or intends to lease such 
tract or tracts, the Secretary and the Governor of the coastal 
State may enter into an agreement to divide the revenues from 
production of any common potentially hydrocarbon-bearing area, 
by unitization or other royalty sharing agreement, pursuant to 
existing law. If the Secretary and the Governor do not enter 
into an agreement, the Secretary may nevertheless proceed with 
the leasing of the tract or tracts. [Any revenue received by 
the United States under such an agreement shall be subject to 
the requirements of paragraph (2).]
  [(4) The deposits in the Treasury account described in this 
section shall be invested by the Secretary of the Treasury in 
securities backed by the full faith and credit of the United 
States having maturities suitable to the needs of the account 
and yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury.
  [(5)(A) When there is a boundary dispute between the United 
States and a State which is subject to an agreement under 
section 7 of this Act, the Secretary shall credit to the 
account established pursuant to such agreement all bonuses, 
rents, and royalties, and other revenues (derived from any 
bidding system authorized under subsection (a)(1)), excluding 
Federal income and windfall profits taxes, and derived from any 
lease issued after September 18, 1978 of any Federal tract 
which lies wholly or partially within three nautical miles of 
the seaward boundary asserted by the State, if that money has 
not otherwise been deposited in such account. Proceeds of an 
escrow account established pursuant to an agreement under 
section 7 shall be distributed as follows:
          [(i) Twenty-seven percent of all bonuses, rents, and 
        royalties, and other revenues (derived from any bidding 
        system authorized under subsection (a)(1)), excluding 
        Federal income and windfall profits taxes, and derived 
        from any lease issued after September 18, 1978, of any 
        tract which lies wholly within three nautical miles of 
        the seaward boundary asserted by the Federal Government 
        in the boundary dispute, together with all accrued 
        interest thereon, shall be paid to the State either--
                  [(I) within thirty days of December 1, 1987, 
                or
                  [(II) by the last business day of the month 
                following the month in which those revenues are 
                deposited in the Treasury, whichever date is 
                later.
          [(ii) Upon the settlement of a boundary dispute which 
        is subject to a section 7 agreement between the United 
        States and a State, the Secretary shall pay to such 
        State any additional moneys due such State from amounts 
        deposited in or credit to the escrow account. If there 
        is insufficient money deposited in the escrow account, 
        the Secretary shall transmit, from any revenues derived 
        from any lease of Federal lands under this Act, the 
        remaining balance due such State in accordance with the 
        formula set forth in section 8004(b)(1)(B) of the Outer 
        Continental Shelf Lands Act Amendments of 1985.
  [(B) This paragraph applies to all Federal oil and gas lease 
sales, under this Act, including joint lease sales, occurring 
after September 18, 1978.
  [(6) This section shall be deemed to take effect on October 
1, 1985, for purposes of determining the amounts to be 
deposited in the separate account and the States' shares 
described in paragraph (2).
  [(7) When the Secretary leases any tract which lies wholly or 
partially within three miles of the seaward boundary of two or 
more States, the revenues from such tract shall be distributed 
as otherwise provided by this section, except that the State's 
share of such revenues that would otherwise result under this 
section shall be divided equally among such States.]

           *       *       *       *       *       *       *

  (p) Leases, Easements, or Rights-of-way for Energy and 
Related Purposes.--
          (1) * * *
          (2) Payments and revenues.--(A) * * *
          [(B) The Secretary shall provide for the payment of 
        27 percent of the revenues received by the Federal 
        Government as a result of payments under this section 
        from projects that are located wholly or partially 
        within the area extending three nautical miles seaward 
        of State submerged lands. Payments shall be made based 
        on a formula established by the Secretary by rulemaking 
        no later than 180 days after the date of enactment of 
        this section that provides for equitable distribution, 
        based on proximity to the project, among coastal states 
        that have a coastline that is located within 15 miles 
        of the geographic center of the project.]
          (B) The Secretary shall provide for the payment to 
        coastal states, and their local coastal governments, of 
        75 percent of Federal receipts from projects authorized 
        under this section located partially or completely 
        within the area extending seaward of State submerged 
        lands out to 4 marine leagues from the coastline, and 
        the payment to coastal states of 50 percent of the 
        receipts from projects completely located in the area 
        more than 4 marine leagues from the coastline. Payments 
        shall be based on a formula established by the 
        Secretary by rulemaking no later than 180 days after 
        the date of the enactment of the Deep Ocean Energy 
        Resources Act of 2006 that provides for equitable 
        distribution, based on proximity to the project, among 
        coastal states that have coastline that is located 
        within 200 miles of the geographic center of the 
        project.

           *       *       *       *       *       *       *

  (q) Natural Gas Leases.--
          (1) Right to produce natural gas.--A lessee of a 
        natural gas lease shall have the right to produce the 
        natural gas from a field on a natural gas leased tract 
        if the Secretary estimates that the discovered field 
        has at least 40 percent of the economically recoverable 
        Btu content of the field contained within natural gas 
        and such natural gas is economical to produce.
          (2) Crude oil.--A lessee of a natural gas lease may 
        not produce crude oil from the lease.
          (3) Estimates of btu content.--The Secretary shall 
        make estimates of the natural gas Btu content of 
        discovered fields on a natural gas lease only after the 
        completion of at least one exploration well, the data 
        from which has been tied to the results of a three-
        dimensional seismic survey of the field. The Secretary 
        may not require the lessee to further delineate any 
        discovered field prior to making such estimates.
          (4) Definition of natural gas.--For purposes of a 
        natural gas lease, natural gas means natural gas and 
        all substances produced in association with gas, 
        including, but not limited to, hydrocarbon liquids 
        (other than crude oil) that are obtained by the 
        condensation of hydrocarbon vapors and separate out in 
        liquid form from the produced gas stream.
  (r) Removal of Restrictions on Joint Bidding in Certain Areas 
of the Outer Continental Shelf.--Restrictions on joint bidders 
shall no longer apply to tracts located in the Alaska OCS 
Region. Such restrictions shall not apply to tracts in other 
OCS regions determined to be ``frontier tracts'' or otherwise 
``high cost tracts'' under final regulations that shall be 
published by the Secretary by not later than 365 days after the 
date of the enactment of the Deep Ocean Energy Resources Act of 
2006.
  (s) Royalty Suspension Provisions.--The Secretary shall agree 
to a request by any lessee to amend any lease issued for 
Central and Western Gulf of Mexico tracts during the period of 
December 1, 1995, through December 31, 2000, to incorporate 
price thresholds applicable to royalty suspension provisions, 
or amend existing price thresholds, in the amount of $40.50 per 
barrel (2006 dollars) for oil and for natural gas of $6.75 per 
million Btu (2006 dollars). Any amended lease shall impose the 
new or revised price thresholds effective October 1, 2005. 
Existing lease provisions shall prevail through September 30, 
2005. After the date of the enactment of the Deep Ocean Energy 
Resources Act of 2006, price thresholds shall apply to any 
royalty suspension volumes granted by the Secretary. Unless 
otherwise set by Secretary by regulation or for a particular 
lease sale, the price thresholds shall be $40.50 for oil (2006 
dollars) and $6.75 for natural gas (2006 dollars).
  (t) Royalty Rate for Oil and Gas or Natural Gas Leases on the 
Outer Continental Shelf.--After the date of the enactment of 
the Deep Ocean Energy Resources Act of 2006, the base royalty 
rate for new oil and gas or natural gas leases on the outer 
Continental Shelf shall be the same for all leased tracts.
  (u) Conservation of Resources Fees.--
          (1) Not later than one year after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 
        2006, the Secretary by regulation shall establish a 
        conservation of resources fee for producing leases that 
        will apply to new and existing leases which shall be 
        set at $9 per barrel for oil and $1.25 per million Btu 
        for gas. This fee shall only apply to leases in 
        production located in more than 200 meters of water for 
        which royalties are not being paid when prices exceed 
        $40.50 per barrel for oil and $6.75 per million Btu for 
        natural gas in 2006, dollars. This fee shall apply to 
        production from and after October 1, 2005, and shall be 
        treated as offsetting receipts.
          (2) Not later than one year after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 
        2006, the Secretary by regulation shall establish a 
        conservation of resources fee for nonproducing leases 
        that will apply to new and existing leases which shall 
        be set at not less than $1.00 nor more than $4.00 per 
        acre per year. This fee shall apply from and after 
        October 1, 2005, and shall be treated as offsetting 
        receipts.
  Sec. 9. Disposition of Revenues.--(a) All rentals, royalties, 
and other sums paid to the Secretary or the Secretary of the 
Navy under any lease on the outer Continental Shelf for the 
period from June 5, 1950, to date, and thereafter shall be 
deposited in the Treasury of the United States and credited to 
miscellaneous receipts, if not paid as otherwise provided in 
this title.
  (b) Treatment of OCS Receipts From Tracts Completely Within 
100 Miles of the Coastline.--
          (1) Deposit.--The Secretary shall deposit into a 
        separate account in the Treasury the portion of OCS 
        Receipts for each fiscal year that will be shared under 
        paragraphs (2), (3), and (4).
          (2) Phased-in receipts sharing.--
                  (A) Beginning October 1, 2005, the Secretary 
                shall share OCS Receipts derived from the 
                following areas:
                          (i) Lease tracts located on portions 
                        of the Gulf of Mexico OCS Region 
                        completely beyond 4 marine leagues from 
                        any coastline and completely within 100 
                        miles of any coastline that are 
                        available for leasing under the 2002-
                        2007 5-Year Oil and Gas Leasing Program 
                        in effect prior to the date of the 
                        enactment of the Deep Ocean Energy 
                        Resources Act of 2006.
                          (ii) Lease tracts in production prior 
                        to October 1, 2005, completely beyond 4 
                        marine leagues from any coastline and 
                        completely within 100 miles of any 
                        coastline located on portions of the 
                        OCS that were not available for leasing 
                        under the 2002-2007 5-Year OCS Oil and 
                        Gas Leasing Program in effect prior to 
                        the date of the enactment of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iii) Lease tracts for which leases 
                        are issued prior to October 1, 2005, 
                        located in the Alaska OCS Region 
                        completely beyond 4 marine leagues from 
                        any coastline and completely within 100 
                        miles of the coastline.
                  (B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases 
                described in subparagraph (A) derived during 
                the fiscal year indicated:
                          (i) For fiscal year 2006, 6.0 
                        percent.
                          (ii) For fiscal year 2007, 7.0 
                        percent.
                          (iii) For fiscal year 2008, 8.0 
                        percent.
                          (iv) For fiscal year 2009, 9.0 
                        percent.
                          (v) For fiscal year 2010, 12.0 
                        percent.
                          (vi) For fiscal year 2011, 15.0 
                        percent.
                          (vii) For fiscal year 2012, 18.0 
                        percent.
                          (viii) For fiscal year 2013, 21.0 
                        percent.
                          (ix) For fiscal year 2014, 24.0 
                        percent.
                          (x) For fiscal year 2015, 27.0 
                        percent.
                          (xi) For fiscal year 2016, 30.0 
                        percent.
                          (xii) For fiscal year 2017, 33.0 
                        percent.
                          (xiii) For fiscal year 2018, 36.0 
                        percent.
                          (xiv) For fiscal year 2019, 39.0 
                        percent.
                          (xv) For fiscal year 2020, 42.0 
                        percent.
                          (xvi) For fiscal year 2021, 45.0 
                        percent.
                          (xvii) For fiscal year 2022 and each 
                        subsequent fiscal year, 50.0 percent.
                  (C) The provisions of this paragraph shall 
                not apply to leases that could not have been 
                issued but for section 5(k) of this Act or 
                section 6(2) of the Deep Ocean Energy Resources 
                Act of 2006.
          (3) Immediate receipts sharing.--Beginning October 1, 
        2005, the Secretary shall share 50 percent of OCS 
        Receipts derived from all leases located completely 
        beyond 4 marine leagues from any coastline and 
        completely within 100 miles of any coastline not 
        included within the provisions of paragraph (2).
          (4) Receipts sharing from tracts within 4 marine 
        leagues of any coastline.--Beginning October 1, 2005, 
        the Secretary shall share 75 percent of OCS Receipts 
        derived from all leases located completely or partially 
        within 4 marine leagues from any coastline.
          (5) Allocations.--The Secretary shall allocate the 
        OCS Receipts deposited into the separate account 
        established by paragraph (1) that are shared under 
        paragraphs (2), (3), and (4) as follows:
                  (A) Bonus bids.--Deposits derived from bonus 
                bids from a leased tract, including interest 
                thereon, shall be allocated at the end of each 
                fiscal year as follows:
                          (i) 85 percent to the Adjacent State.
                          (ii) 5 percent into the Treasury, 
                        which shall be allocated to the account 
                        established by section 14 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iii) 5 percent into the account 
                        established by section 23 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iv) 5 percent into the account 
                        established by section 26 of the Deep 
                        Ocean Energy Resources Act of 2006.
                  (B) Royalties.--Deposits derived from 
                royalties from a leased tract, including 
                interest thereon, shall be allocated at the end 
                of each fiscal year as follows:
                          (i) 85 percent to the Adjacent State 
                        and any other producing State or States 
                        with a leased tract within its Adjacent 
                        Zone within 100 miles of its coastline 
                        that generated royalties during the 
                        fiscal year, if the other producing or 
                        States have a coastline point within 
                        300 miles of any portion of the leased 
                        tract, in which case the amount 
                        allocated for the leased tract shall 
                        be--
                                  (I) one-third to the Adjacent 
                                State; and
                                  (II) two-thirds to each 
                                producing State, including the 
                                Adjacent State, inversely 
                                proportional to the distance 
                                between the nearest point on 
                                the coastline of the producing 
                                State and the geographic center 
                                of the leased tract.
                          (ii) 5 percent into the Treasury, 
                        which shall be allocated to the account 
                        established by section 14 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iii) 5 percent into the account 
                        established by section 23 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iv) 5 percent into the account 
                        established by section 26 of the Deep 
                        Ocean Energy Resources Act of 2006.
  (c) Treatment of OCS Receipts From Tracts Partially or 
Completely Beyond 100 Miles of the Coastline.--
          (1) Deposit.--The Secretary shall deposit into a 
        separate account in the Treasury the portion of OCS 
        Receipts for each fiscal year that will be shared under 
        paragraphs (2) and (3).
          (2) Phased-in receipts sharing.--
                  (A) Beginning October 1, 2005, the Secretary 
                shall share OCS Receipts derived from the 
                following areas:
                          (i) Lease tracts located on portions 
                        of the Gulf of Mexico OCS Region 
                        partially or completely beyond 100 
                        miles of any coastline that were 
                        available for leasing under the 2002-
                        2007 5-Year Oil and Gas Leasing Program 
                        in effect prior to the date of 
                        enactment of the Deep Ocean Energy 
                        Resources Act of 2006.
                          (ii) Lease tracts in production prior 
                        to October 1, 2005, partially or 
                        completely beyond 100 miles of any 
                        coastline located on portions of the 
                        OCS that were not available for leasing 
                        under the 2002-2007 5-Year OCS Oil and 
                        Gas Leasing Program in effect prior to 
                        the date of enactment of the Deep Ocean 
                        Energy Resources Act of 2006.
                          (iii) Lease tracts for which leases 
                        are issued prior to October 1, 2005, 
                        located in the Alaska OCS Region 
                        partially or completely beyond 100 
                        miles of the coastline.
                  (B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases 
                described in subparagraph (A) derived during 
                the fiscal year indicated:
                          (i) For fiscal year 2006, 6.0 
                        percent.
                          (ii) For fiscal year 2007, 7.0 
                        percent.
                          (iii) For fiscal year 2008, 8.0 
                        percent.
                          (iv) For fiscal year 2009, 9.0 
                        percent.
                          (v) For fiscal year 2010, 12.0 
                        percent.
                          (vi) For fiscal year 2011, 15.0 
                        percent.
                          (vii) For fiscal year 2012, 18.0 
                        percent.
                          (viii) For fiscal year 2013, 21.0 
                        percent.
                          (ix) For fiscal year 2014, 24.0 
                        percent.
                          (x) For fiscal year 2015, 27.0 
                        percent.
                          (xi) For fiscal year 2016, 30.0 
                        percent.
                          (xii) For fiscal year 2017, 33.0 
                        percent.
                          (xiii) For fiscal year 2018, 36.0 
                        percent.
                          (xiv) For fiscal year 2019, 39.0 
                        percent.
                          (xv) For fiscal year 2020, 42.0 
                        percent.
                          (xvi) For fiscal year 2021, 45.0 
                        percent.
                          (xvii) For fiscal year 2022 and each 
                        subsequent fiscal year, 50.0 percent.
                  (C) The provisions of this paragraph shall 
                not apply to leases that could not have been 
                issued but for section 5(k) of this Act or 
                section 6(2) of the Deep Ocean Energy Resources 
                Act of 2006.
          (3) Immediate receipts sharing.--Beginning October 1, 
        2005, the Secretary shall share 50 percent of OCS 
        Receipts derived on and after October 1, 2005, from all 
        leases located partially or completely beyond 100 miles 
        of any coastline not included within the provisions of 
        paragraph (2).
          (4) Allocations.--The Secretary shall allocate the 
        OCS Receipts deposited into the separate account 
        established by paragraph (1) that are shared under 
        paragraphs (2) and (3) as follows:
                  (A) Bonus bids.--Deposits derived from bonus 
                bids from a leased tract, including interest 
                thereon, shall be allocated at the end of each 
                fiscal year as follows:
                          (i) 85 percent to the Adjacent State.
                          (ii) 5 percent into the Treasury, 
                        which shall be allocated to the account 
                        established by section 14 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iii) 5 percent into the account 
                        established by section 23 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iv) 5 percent into the account 
                        established by section 26 of the Deep 
                        Ocean Energy Resources Act of 2006.
                  (B) Royalties.--Deposits derived from 
                royalties from a leased tract, including 
                interest thereon, shall be allocated at the end 
                of each fiscal year as follows:
                          (i) 85 percent to the Adjacent State 
                        and any other producing State or States 
                        with a leased tract within its Adjacent 
                        Zone partially or completely beyond 100 
                        miles of its coastline that generated 
                        royalties during the fiscal year, if 
                        the other producing State or States 
                        have a coastline point within 300 miles 
                        of any portion of the leased tract, in 
                        which case the amount allocated for the 
                        leased tract shall be--
                                  (I) one-third to the Adjacent 
                                State; and
                                  (II) two-thirds to each 
                                producing State, including the 
                                Adjacent State, inversely 
                                proportional to the distance 
                                between the nearest point on 
                                the coastline of the producing 
                                State and the geographic center 
                                of the leased tract.
                          (ii) 5 percent into the account 
                        established by section 14 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iii) 5 percent into the account 
                        established by section 23 of the Deep 
                        Ocean Energy Resources Act of 2006.
                          (iv) 5 percent into the account 
                        established by section 26 of the Deep 
                        Ocean Energy Resources Act of 2006.
  (d) Transmission of Allocations.--
          (1) In general.--Not later than 90 days after the end 
        of each fiscal year, the Secretary shall transmit--
                  (A) to each State 60 percent of such State's 
                allocations under subsections (b)(5)(A)(i), 
                (b)(5)(B)(i), (c)(4)(A)(i), and (c)(4)(B)(i) 
                for the immediate prior fiscal year;
                  (B) to coastal county-equivalent and 
                municipal political subdivisions of such State 
                a total of 40 percent of such State's 
                allocations under subsections (b)(5)(A)(i), 
                (b)(5)(B)(i), (c)(4)(A)(i), and (c)(4)(B)(i), 
                together with all accrued interest thereon; and
                  (C) the remaining allocations under 
                subsections (b)(5) and (c)(4), together with 
                all accrued interest thereon.
          (2) Allocations to coastal county-equivalent 
        political subdivisions.--The Secretary shall make an 
        initial allocation of the OCS Receipts to be shared 
        under paragraph (1)(B) as follows:
                  (A) 25 percent shall be allocated to coastal 
                county-equivalent political subdivisions that 
                are completely more than 25 miles landward of 
                the coastline and at least a part of which lies 
                not more than 75 miles landward from the 
                coastline, with the allocation among such 
                coastal county-equivalent political 
                subdivisions based on population.
                  (B) 75 percent shall be allocated to coastal 
                county-equivalent political subdivisions that 
                are completely or partially less than 25 miles 
                landward of the coastline, with the allocation 
                among such coastal county-equivalent political 
                subdivisions to be further allocated as 
                follows:
                          (i) 25 percent shall be allocated 
                        based on the ratio of such coastal 
                        county-equivalent political 
                        subdivision's population to the coastal 
                        population of all coastal county-
                        equivalent political subdivisions in 
                        the State.
                          (ii) 25 percent shall be allocated 
                        based on the ratio of such coastal 
                        county-equivalent political 
                        subdivision's coastline miles to the 
                        coastline miles of all coastal county-
                        equivalent political subdivisions in 
                        the State as calculated by the 
                        Secretary. In such calculations, 
                        coastal county-equivalent political 
                        subdivisions without a coastline shall 
                        be considered to have 50 percent of the 
                        average coastline miles of the coastal 
                        county-equivalent political 
                        subdivisions that do have coastlines.
                          (iii) 25 percent shall be allocated 
                        to all coastal county-equivalent 
                        political subdivisions having a 
                        coastline point within 300 miles of the 
                        leased tract for which OCS Receipts are 
                        being shared based on a formula that 
                        allocates the funds based on such 
                        coastal county-equivalent political 
                        subdivision's relative distance from 
                        the leased tract.
                          (iv) 25 percent shall be allocated to 
                        all coastal county-equivalent political 
                        subdivisions having a coastline point 
                        within 300 miles of the leased tract 
                        for which OCS Receipts are being shared 
                        based on the relative level of outer 
                        Continental Shelf oil and gas 
                        activities in a coastal political 
                        subdivision compared to the level of 
                        outer Continental Shelf activities in 
                        all coastal political subdivisions in 
                        the State. The Secretary shall define 
                        the term ``outer Continental Shelf oil 
                        and gas activities'' for purposes of 
                        this subparagraph to include, but not 
                        be limited to, construction of vessels, 
                        drillships, and platforms involved in 
                        exploration, production, and 
                        development on the outer Continental 
                        Shelf; support and supply bases, ports, 
                        and related activities; offices of 
                        geologists, geophysicists, engineers, 
                        and other professionals involved in 
                        support of exploration, production, and 
                        development of oil and gas on the outer 
                        Continental Shelf; pipelines and other 
                        means of transporting oil and gas 
                        production from the outer Continental 
                        Shelf; and processing and refining of 
                        oil and gas production from the outer 
                        Continental Shelf. For purposes of this 
                        subparagraph, if a coastal county-
                        equivalent political subdivision does 
                        not have a coastline, its coastal point 
                        shall be the point on the coastline 
                        closest to it.
          (3) Allocations to coastal municipal political 
        subdivisions.--The initial allocation to each coastal 
        county-equivalent political subdivision under paragraph 
        (2) shall be further allocated to the coastal county-
        equivalent political subdivision and any coastal 
        municipal political subdivisions located partially or 
        wholly within the boundaries of the coastal county-
        equivalent political subdivision as follows:
                  (A) One-third shall be allocated to the 
                coastal county-equivalent political 
                subdivision.
                  (B) Two-thirds shall be allocated on a per 
                capita basis to the municipal political 
                subdivisions and the county-equivalent 
                political subdivision, with the allocation to 
                the latter based upon its population not 
                included within the boundaries of a municipal 
                political subdivision.
  (e) Investment of Deposits.--Amounts deposited under this 
section shall be invested by the Secretary of the Treasury in 
securities backed by the full faith and credit of the United 
States having maturities suitable to the needs of the account 
in which they are deposited and yielding the highest reasonably 
available interest rates as determined by the Secretary of the 
Treasury.
  (f) Use of Funds.--A recipient of funds under this section 
may use the funds for one or more of the following:
          (1) To reduce in-State college tuition at public 
        institutions of higher learning and otherwise support 
        public education, including career technical education.
          (2) To make transportation infrastructure 
        improvements.
          (3) To reduce taxes.
          (4) To promote, fund, and provide for--
                  (A) coastal or environmental restoration;
                  (B) fish, wildlife, and marine life habitat 
                enhancement;
                  (C) waterways construction and maintenance;
                  (D) levee construction and maintenance and 
                shore protection; and
                  (E) marine and oceanographic education and 
                research.
          (5) To promote, fund, and provide for --
                  (A) infrastructure associated with energy 
                production activities conducted on the outer 
                Continental Shelf;
                  (B) energy demonstration projects;
                  (C) supporting infrastructure for shore-based 
                energy projects;
                  (D) State geologic programs, including 
                geologic mapping and data storage programs, and 
                state geophysical data acquisition;
                  (E) State seismic monitoring programs, 
                including operation of monitoring stations;
                  (F) development of oil and gas resources 
                through enhanced recovery techniques;
                  (G) alternative energy development, including 
                bio fuels, coal-to-liquids, oil shale, tar 
                sands, geothermal, geopressure, wind, waves, 
                currents, hydro, and other renewable energy;
                  (H) energy efficiency and conservation 
                programs; and
                  (I) front-end engineering and design for 
                facilities that produce liquid fuels from 
                hydrocarbons and other biological matter.
          (6) To promote, fund, and provide for--
                  (A) historic preservation programs and 
                projects;
                  (B) natural disaster planning and response; 
                and,
                  (C) hurricane and natural disaster insurance 
                programs.
          (7) For any other purpose as determined by State law.
  (g) No Accounting Required.--No recipient of funds under this 
section shall be required to account to the Federal Government 
for the expenditure of such funds, except as otherwise may be 
required by law. However, States may enact legislation 
providing for accounting for and auditing of such expenditures. 
Further, funds allocated under this section to States and 
political subdivisions may be used as matching funds for other 
Federal programs.
  (h) Effect of Future Laws.--Enactment of any future Federal 
statute that has the effect, as determined by the Secretary, of 
restricting any Federal agency from spending appropriated 
funds, or otherwise preventing it from fulfilling its pre-
existing responsibilities as of the date of enactment of the 
statute, unless such responsibilities have been reassigned to 
another Federal agency by the statute with no prevention of 
performance, to issue any permit or other approval impacting on 
the OCS oil and gas leasing program, or any lease issued 
thereunder, or to implement any provision of this Act shall 
automatically prohibit any sharing of OCS Receipts under this 
section directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The 
Secretary shall make the determination of the existence of such 
restricting effects within 30 days of a petition by any outer 
Continental Shelf lessee or producing State.
  (i) Definitions.--In this section:
          (1) Coastal county-equivalent political 
        subdivision.--The term ``coastal county-equivalent 
        political subdivision'' means a political jurisdiction 
        immediately below the level of State government, 
        including a county, parish, borough in Alaska, 
        independent municipality not part of a county, parish, 
        or borough in Alaska, or other equivalent subdivision 
        of a coastal State, that lies within the coastal zone.
          (2) Coastal municipal political subdivision.--The 
        term ``coastal municipal political subdivision'' means 
        a municipality located within and part of a county, 
        parish, borough in Alaska, or other equivalent 
        subdivision of a State, all or part of which coastal 
        municipal political subdivision lies within the coastal 
        zone.
          (3) Coastal population.--The term ``coastal 
        population'' means the population of all coastal 
        county-equivalent political subdivisions, as determined 
        by the most recent official data of the Census Bureau.
          (4) Coastal zone.--The term ``coastal zone'' means 
        that portion of a coastal State, including the entire 
        territory of any coastal county-equivalent political 
        subdivision at least a part of which lies, within 75 
        miles landward from the coastline, or a greater 
        distance as determined by State law enacted to 
        implement this section.
          (5) Bonus bids.--The term ``bonus bids'' means all 
        funds received by the Secretary to issue an outer 
        Continental Shelf minerals lease.
          (6) Royalties.--The term ``royalties'' means all 
        funds received by the Secretary from production of oil 
        or natural gas, or the sale of production taken in-
        kind, from an outer Continental Shelf minerals lease.
          (7) Producing state.--The term ``producing State'' 
        means an Adjacent State having an Adjacent Zone 
        containing leased tracts from which OCS Receipts were 
        derived.
          (8) OCS receipts.--The term ``OCS Receipts'' means 
        bonus bids, royalties, and conservation of resources 
        fees.
  (j) Availability of Funds for Payments Under Secure Rural 
Schools and Community Self-Determination Act of 2000.--
Notwithstanding any other provision of this section, 
$50,000,000 of OCS Receipts shall be available to the Secretary 
of the Treasury for each of fiscal years 2007 through 2012 to 
make payments under sections 102 and 103 of the Secure Rural 
Schools and Community Self-Determination Act of 2000 (Public 
Law 106-393; 16 U.S.C. 500 note). The Secretary of the Treasury 
shall use the funds made available by this subsection to make 
such payments in lieu of using funds in the Treasury not 
otherwise appropriated, as otherwise authorized by sections 
102(b)(3) and 103(b)(2) of such Act.

SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND OTHER 
                    FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC 
                    RESEARCH, OR OTHER USES.

  (a) In General.--The Secretary shall issue regulations under 
which the Secretary may authorize use of an offshore oil and 
gas platform or other facility that is decommissioned from 
service for oil and gas purposes for an artificial reef, 
scientific research, or any other use authorized under section 
8(p) or any other applicable Federal law.
  (b) Transfer Requirements.--The Secretary shall not allow the 
transfer of a decommissioned offshore oil and gas platform or 
other facility to another person unless the Secretary is 
satisfied that the transferee is sufficiently bonded, endowed, 
or otherwise financially able to fulfill its obligations, 
including but not limited to--
          (1) ongoing maintenance of the platform or other 
        facility;
          (2) any liability obligations that might arise;
          (3) removal of the platform or other facility if 
        determined necessary by the Secretary; and
          (4) any other requirements and obligations that the 
        Secretary may deem appropriate by regulation.
  (c) Plugging and Abandonment.--The Secretary shall ensure 
that plugging and abandonment of wells is accomplished at an 
appropriate time.
  (d) Potential to Petition to Opt-Out of Regulations.--An 
Adjacent State acting through a resolution of its legislature, 
with concurrence of its Governor, may preliminarily petition to 
opt-out of the application of regulations promulgated under 
this section to platforms and other facilities located in the 
area of its Adjacent Zone within 12 miles of the coastline. 
Upon receipt of the preliminary petition, the Secretary shall 
complete an environmental assessment that documents the 
anticipated environmental effects of approving the petition. 
The Secretary shall provide the environmental assessment to the 
State, which then has the choice of no action or confirming its 
petition by further action of its legislature, with the 
concurrence of its Governor. The Secretary is authorized to 
except such area from the application of such regulations, and 
shall approve any confirmed petition.
  (e) Limitation on Liability.--A person that had used an 
offshore oil and gas platform or other facility for oil and gas 
purposes and that no longer has any ownership or control of the 
platform or other facility shall not be liable under Federal 
law for any costs or damages arising from such platform or 
other facility after the date the platform or other facility is 
used for any purpose under subsection (a), unless such costs or 
damages arise from--
          (1) use of the platform or other facility by the 
        person for development or production of oil or gas; or
          (2) another act or omission of the person.
  (f) Other Leasing and Use not Affected.--This section, and 
the use of any offshore oil and gas platform or other facility 
for any purpose under subsection (a), shall not affect--
          (1) the authority of the Secretary to lease any area 
        under this Act; or
          (2) any activity otherwise authorized under this Act.
  Sec. 11. Geological and Geophysical Explorations.--(a) * * *

           *       *       *       *       *       *       *

  [(c)(1) Except as otherwise provided in the Act, prior to 
commencing exploration pursuant to any oil and gas lease issued 
or maintained under this Act, the holder thereof shall submit 
an exploration plan to the Secretary for approval. Such plan 
may apply to more than one lease held by a lessee in any one 
region of the outer Continental Shelf, or by a group of lessees 
acting under a unitization, pooling, or drilling agreement, and 
shall be approved by the Secretary if he finds that such plan 
is consistent with the provisions of this Act, regulations 
prescribed under this Act, including regulations prescribed by 
the Secretary pursuant to paragraph (8) of section 5(a) of this 
Act, and the provisions of such lease. The Secretary shall 
require such modifications of such plan as are necessary to 
achieve such consistency. The Secretary shall approve such 
plan, as submitted or modified, within thirty days of its 
submission, except that the Secretary shall disapprove such 
plan if he determines that (A) any proposed activity under such 
plan would result in any condition described in section 
5(a)(2)(A)(i) of this Act, and (B) such proposed activity 
cannot be modified to avoid such condition. If the Secretary 
disapproves a plan under the preceding sentence, he may, 
subject to section 5(a)(2)(B) of this Act, cancel such lease 
and the lessee shall be entitled to compensation in accordance 
with the regulations prescribed under section 5(a)(2)(C) (i) or 
(ii) of this Act.
  [(2) The Secretary shall not grant any license or permit for 
any activity described in detail in an exploration plan and 
affecting any land use or water use in the coastal zone of a 
State with a coastal zone management program approved pursuant 
to section 306 of the Coastal Zone Management Act of 1972 (16 
U.S.C. 1455), unless the State concurs or is conclusively 
presumed to concur with the consistency certification 
accompanying such plan pursuant to section 307(c)(3)(B) (i) or 
(ii) of such Act, or the Secretary of Commerce makes the 
finding authorized by section 307(c)(3)(B)(iii) of such Act.
  [(3) An exploration plan submitted under this subsection 
shall include, in the degree of detail which the Secretary may 
by regulation require--
          [(A) a schedule of anticipated exploration activities 
        to be undertaken;
          [(B) a description of equipment to be used for such 
        activities;
          [(C) the general location of each well to be drilled; 
        and
          [(D) such other information deemed pertinent by the 
        Secretary.
  [(4) The Secretary may, by regulation, require that such plan 
be accompanied by a general statement of development and 
production intentions which shall be for planning purposes only 
and which shall not be binding on any party.
  [(d) The Secretary may, by regulation, require any lessee 
operating under an approved exploration plan to obtain a permit 
prior to drilling any well in accordance with such plan.]
  (c) Plan Review; Plan Provisions.--
          (1) Except as otherwise provided in this Act, prior 
        to commencing exploration pursuant to any oil and gas 
        lease issued or maintained under this Act, the holder 
        thereof shall submit an exploration plan (hereinafter 
        in this section referred to as a ``plan'') to the 
        Secretary for review which shall include all 
        information and documentation required under paragraphs 
        (2) and (3). The Secretary shall review the plan for 
        completeness within 10 days of submission. If the 
        Secretary finds that the plan is not complete, the 
        Secretary shall notify the lessee with a detailed 
        explanation and require such modifications of such plan 
        as are necessary to achieve completeness. The Secretary 
        shall have 10 days to review a modified plan for 
        completeness. Such plan may apply to more than one 
        lease held by a lessee in any one region of the outer 
        Continental Shelf, or by a group of lessees acting 
        under a unitization, pooling, or drilling agreement, 
        and the lessee shall certify that such plan is 
        consistent with the terms of the lease and is 
        consistent with all statutory and regulatory 
        requirements in effect on the date of issuance of the 
        lease, and any regulations promulgated under this Act 
        to the conservation of resources after the date of the 
        lease issuances. The Secretary shall have 30 days from 
        the date the plan is deemed complete to conduct a 
        review of the plan. If the Secretary finds the plan is 
        not consistent with the lease and all such statutory 
        and regulatory requirements, the Secretary shall notify 
        the lessee with a detailed explanation of such 
        modifications of such plan as are necessary to achieve 
        compliance. The Secretary shall have 30 days to review 
        any modified plan submitted by the lessee. The lessee 
        shall not take any action under the exploration plan 
        within the 30-day review period, or thereafter until 
        the plan has been modified to achieve compliance as so 
        notified.
          (2) An exploration plan submitted under this 
        subsection shall include, in the degree of detail which 
        the Secretary may by regulation require--
                  (A) a schedule of anticipated exploration 
                activities to be undertaken;
                  (B) a description of equipment to be used for 
                such activities;
                  (C) the general location of each well to be 
                drilled; and
                  (D) such other information deemed pertinent 
                by the Secretary.
          (3) The Secretary may, by regulation, require that 
        such plan be accompanied by a general statement of 
        development and production intentions which shall be 
        for planning purposes only and which shall not be 
        binding on any party.
  (d) Plan Revisions; Conduct of Exploration Activities.--
          (1) If a significant revision of an exploration plan 
        under this subsection is submitted to the Secretary, 
        the process to be used for the review of such revision 
        shall be the same as set forth in subsection (c) of 
        this section.
          (2) All exploration activities pursuant to any lease 
        shall be conducted in accordance with an exploration 
        plan or a revised plan which has been submitted to and 
        reviewed by the Secretary.

           *       *       *       *       *       *       *

  Sec. 12. Reservations.--(a) The President of the United 
States may, from time to time, withdraw from disposition any of 
the unleased lands of the outer Continental Shelf. The 
President may partially or completely revise or revoke any 
prior withdrawal made by the President under the authority of 
this section. The President may not revise or revoke a 
withdrawal that was initiated by a petition from a State and 
approved by the Secretary of the Interior under subsection (h). 
A withdrawal by the President may be for a term not to exceed 
10 years. When considering potential uses of the outer 
Continental Shelf, to the maximum extent possible, the 
President shall accommodate competing interests and potential 
uses.

           *       *       *       *       *       *       *

  (g) Availability for Leasing Within Certain Areas of the 
Outer Continental Shelf.--
          (1) Prohibition against leasing.--
                  (A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, from and after enactment of the 
                Deep Ocean Energy Resources Act of 2006, the 
                Secretary shall not offer for leasing for oil 
                and gas, or natural gas, any area within 50 
                miles of the coastline that was withdrawn from 
                disposition by leasing in the Atlantic OCS 
                Region or the Pacific OCS Region, or the Gulf 
                of Mexico OCS Region Eastern Planning Area, as 
                depicted on the maps referred to in this 
                subparagraph, under the ``Memorandum on 
                Withdrawal of Certain Areas of the United 
                States Outer Continental Shelf from Leasing 
                Disposition'', 34 Weekly Comp. Pres. Doc. 1111, 
                dated June 12, 1998, or any area within 50 
                miles of the coastline not withdrawn under that 
                Memorandum that is included within the Gulf of 
                Mexico OCS Region Eastern Planning Area as 
                indicated on the map entitled ``Gulf of Mexico 
                OCS Region State Adjacent Zones and OCS 
                Planning Areas'' or 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.
                  (B) Areas between 50 and 100 miles from the 
                coastline.--Unless an Adjacent State petitions 
                under subsection (h) within one year after the 
                date of the enactment of the Deep Ocean Energy 
                Resources Act of 2006 for natural gas leasing 
                or by June 30, 2009, for oil and gas leasing, 
                the Secretary shall offer for leasing any area 
                more than 50 miles but less than 100 miles from 
                the coastline that was 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 maps referred to in this 
                subparagraph, under the ``Memorandum on 
                Withdrawal of Certain Areas of the United 
                States Outer Continental Shelf from Leasing 
                Disposition'', 34 Weekly Comp. Pres. Doc. 1111, 
                dated June 12, 1998, or any area more than 50 
                miles but less than 100 miles of the coastline 
                not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region 
                Eastern Planning Area as indicated on the map 
                entitled ``Gulf of Mexico OCS Region State 
                Adjacent Zones and OCS Planning Areas'' or 
                within the Florida Straits Planning Area as 
                indicated on the map entitled ``Atlantic OCS 
                Region State Adjacent Zones and OCS Planning 
                Areas'', both of which are dated September 2005 
                and on file in the Office of the Director, 
                Minerals Management Service.
          (2) Revocation of withdrawal.--The provisions of the 
        ``Memorandum on Withdrawal of Certain Areas of the 
        United States Outer Continental Shelf from Leasing 
        Disposition'', 34 Weekly Comp. Pres. Doc. 1111, dated 
        June 12, 1998, are hereby revoked and are no longer in 
        effect regarding any areas that are more than 100 miles 
        from the coastline, nor for any areas that are less 
        than 100 miles from the coastline and are included 
        within the Gulf of Mexico OCS Region Central Planning 
        Area as depicted on the map entitled ``Gulf of Mexico 
        OCS Region State Adjacent Zones and OCS Planning 
        Areas'' dated September 2005 and on file in the Office 
        of the Director, Minerals Management Service. The 2002-
        2007 5-Year Outer Continental Shelf Oil and Gas Leasing 
        Program is hereby amended to include the areas added to 
        the Gulf of Mexico OCS Region Central Planning Area by 
        this Act to the extent that such areas were included 
        within the original boundaries of proposed Lease Sale 
        181. The amendment to such leasing program includes a 
        sale in such additional areas, which shall be held no 
        later than June 30, 2007. The Final Environmental 
        Impact Statement prepared for this area for Lease Sale 
        181 shall be deemed sufficient for all purposes for 
        each lease sale in which such area is offered for lease 
        during the 2002-2007 5-Year Outer Continental Shelf Oil 
        and Gas Leasing Program without need for 
        supplementation. Any tract only partially added to the 
        Gulf of Mexico OCS Region Central Planning Area by this 
        Act shall be eligible for leasing of the part of such 
        tract that is included within the Gulf of Mexico OCS 
        Region Central Planning Area, and the remainder of such 
        tract that lies outside of the Gulf of Mexico OCS 
        Region Central Planning Area may be developed and 
        produced by the lessee of such partial tract using 
        extended reach or similar drilling from a location on a 
        leased area. Further, any area in the OCS withdrawn 
        from leasing may be leased, and thereafter developed 
        and produced by the lessee using extended reach or 
        similar drilling from a location on a leased area 
        located in an area available for leasing.
          (3) Petition for leasing.--
                  (A) In general.--The Governor of the State, 
                upon concurrence of its legislature, may submit 
                to the Secretary a petition requesting that the 
                Secretary make available any area that is 
                within the State's Adjacent Zone, included 
                within the provisions of paragraph (1), and 
                that (i) is greater than 25 miles from any 
                point on the coastline of a Neighboring State 
                for the conduct of offshore leasing, pre-
                leasing, and related activities with respect to 
                natural gas leasing; or (ii) is greater than 50 
                miles from any point on the coastline of a 
                Neighboring State for the conduct of offshore 
                leasing, pre-leasing, and related activities 
                with respect to oil and gas leasing. The 
                Adjacent State may also petition for leasing 
                any other area within its Adjacent Zone if 
                leasing is allowed in the similar area of the 
                Adjacent Zone of the applicable Neighboring 
                State, or if not allowed, if the Neighboring 
                State, acting through its Governor, expresses 
                its concurrence with the petition. The 
                Secretary shall only consider such a petition 
                upon making a finding that leasing is allowed 
                in the similar area of the Adjacent Zone of the 
                applicable Neighboring State or upon receipt of 
                the concurrence of the Neighboring State. The 
                date of receipt by the Secretary of such 
                concurrence by the Neighboring State shall 
                constitute the date of receipt of the petition 
                for that area for which the concurrence 
                applies. Except for any area described in the 
                last sentence of paragraph (2), a petition for 
                leasing any part of the Alabama Adjacent Zone 
                that is a part of the Gulf of Mexico Eastern 
                Planning Area, as indicated on the map entitled 
                ``Gulf of Mexico OCS Region State Adjacent 
                Zones and OCS Planning Areas'' which is dated 
                September 2005 and on file in the Office of the 
                Director, Minerals Management Service, shall 
                require the concurrence of both Alabama and 
                Florida.
                  (B) Limitations on leasing.--In its petition, 
                a State with an Adjacent Zone that contains 
                leased tracts may condition new leasing for oil 
                and gas, or natural gas for tracts within 25 
                miles of the coastline by--
                          (i) requiring a net reduction in the 
                        number of production platforms;
                          (ii) requiring a net increase in the 
                        average distance of production 
                        platforms from the coastline;
                          (iii) limiting permanent surface 
                        occupancy on new leases to areas that 
                        are more than 10 miles from the 
                        coastline;
                          (iv) limiting some tracts to being 
                        produced from shore or from platforms 
                        located on other tracts; or
                          (v) other conditions that the 
                        Adjacent State may deem appropriate as 
                        long as the Secretary does not 
                        determine that production is made 
                        economically or technically 
                        impracticable or otherwise impossible.
                  (C) Action by secretary.--Not later than 90 
                days after receipt of a petition under 
                subparagraph (A), the Secretary shall approve 
                the petition, unless the Secretary determines 
                that leasing the area would probably cause 
                serious harm or damage to the marine resources 
                of the State's Adjacent Zone. Prior to 
                approving the petition, the Secretary shall 
                complete an environmental assessment that 
                documents the anticipated environmental effects 
                of leasing in the area included within the 
                scope of the petition.
                  (D) Failure to act.--If the Secretary fails 
                to approve or deny a petition in accordance 
                with subparagraph (C) the petition shall be 
                considered to be approved 90 days after receipt 
                of the petition.
                  (E) Amendment of the 5-year leasing 
                program.--Notwithstanding section 18, within 
                180 days of the approval of a petition under 
                subparagraph (C) or (D), after the expiration 
                of the time limits in paragraph (1)(B), and 
                within 180 days after the enactment of the Deep 
                Ocean Energy Resources Act of 2006 for the 
                areas made available for leasing under 
                paragraph (2), the Secretary shall amend the 
                current 5-Year Outer Continental Shelf Oil and 
                Gas Leasing Program to include a lease sale or 
                sales for at least 75 percent of the associated 
                areas, unless there are, from the date of 
                approval, expiration of such time limits, or 
                enactment, as applicable, fewer than 12 months 
                remaining in the current 5-Year Leasing Program 
                in which case the Secretary shall include the 
                associated areas within lease sales under the 
                next 5-Year Leasing Program. For purposes of 
                amending the 5-Year Program in accordance with 
                this section, further consultations with States 
                shall not be required. For purposes of this 
                section, an environmental assessment performed 
                under the provisions of the National 
                Environmental Policy Act of 1969 to assess the 
                effects of approving the petition shall be 
                sufficient to amend the 5-Year Leasing Program.
  (h) Option to Petition for Extension of Withdrawal From 
Leasing Within Certain Areas of the Outer Continental Shelf.--
          (1) In general.--The Governor of the State, upon the 
        concurrence of its legislature, may submit to the 
        Secretary petitions requesting that the Secretary 
        extend for a period of time of up to 5 years for each 
        petition the withdrawal from leasing for all or part of 
        any area within the State's Adjacent Zone located more 
        than 50 miles, but less than 100 miles, from the 
        coastline that is subject to subsection (g)(1)(B). A 
        State may petition multiple times for any particular 
        area but not more than once per calendar year for any 
        particular area. A State must submit separate 
        petitions, with separate votes by its legislature, for 
        oil and gas leasing and for natural gas leasing. A 
        petition of a State may request some areas to be 
        withdrawn from all leasing and some areas to be 
        withdrawn only from one type of leasing. Petitions for 
        extending the withdrawal from leasing of any part of 
        the Alabama Adjacent Zone that is more than 50 miles, 
        but less than 100 miles, from the coastline that is a 
        part of the Gulf of Mexico OCS Region Eastern Planning 
        Area, as indicated on the map entitled ``Gulf of Mexico 
        OCS Region State Adjacent Zones and OCS Planning 
        Areas'' which is dated September 2005 and on file in 
        the Office of the Director, Minerals Management 
        Service, may be made by either Alabama or Florida.
          (2) Action by secretary.--The Secretary shall perform 
        an environmental assessment under the National 
        Environmental Policy Act of 1969 to assess the effects 
        of approving the petition under paragraph (1). Not 
        later than 90 days after receipt of the petition, the 
        Secretary shall approve the petition, unless the 
        Secretary determines that extending the withdrawal from 
        leasing would probably cause serious harm or damage to 
        the marine resources of the State's Adjacent Zone. The 
        Secretary shall not approve a petition from a State 
        that extends the remaining period of a withdrawal of an 
        area from leasing for a total of more than 10 years. 
        However, the Secretary may approve petitions to extend 
        the withdrawal from leasing of any area ad infinitum, 
        subject only to the limitations contained in this 
        subsection.
          (3) Failure to act.--If the Secretary fails to 
        approve or deny a petition in accordance with paragraph 
        (2) the petition shall be considered to be approved 90 
        days after receipt of the petition.
  (i) Effect of Other Laws.--Adoption by any Adjacent State of 
any constitutional provision, or enactment of any State 
statute, that has the effect, as determined by the Secretary, 
of restricting either the Governor or the Legislature, or both, 
from exercising full discretion related to subsection (g) or 
(h), or both, shall automatically (1) prohibit any sharing of 
OCS Receipts under this Act with the Adjacent State, and its 
coastal political subdivisions, and (2) prohibit the Adjacent 
State from exercising any authority under subsection (h), for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting 
constitutional provision or State statute within 30 days of a 
petition by any outer Continental Shelf lessee or coastal 
State.

           *       *       *       *       *       *       *

  Sec. 18. Outer Continental Shelf Leasing Program.--(a) The 
Secretary, pursuant to procedures set forth in subsections (c) 
and (d) of this section, shall prepare and periodically revise, 
and maintain an oil and gas leasing program to implement the 
policies of this Act. The leasing program shall consist of a 
schedule of proposed lease sales indicating, as precisely as 
possible, the size, timing, and location of leasing activity 
which he determines will best meet national energy needs for 
the five-year period following its approval or reapproval. Such 
leasing program shall be prepared and maintained in a manner 
consistent with the following principles:
          (1) * * *

           *       *       *       *       *       *       *

          (3) The Secretary shall select the timing and 
        location of leasing, to the maximum extent practicable, 
        so as to obtain a proper balance between the potential 
        for environmental damage, the potential for the 
        discovery of oil and gas, and the potential for adverse 
        impact on the coastal zone. The Secretary shall, in 
        each 5-year program, include lease sales that when 
        viewed as a whole propose to offer for oil and gas or 
        natural gas leasing at least 75 percent of the 
        available unleased acreage within each OCS Planning 
        Area. Available unleased acreage is that portion of the 
        outer Continental Shelf that is not under lease at the 
        time of the proposed lease sale, and has not otherwise 
        been made unavailable for leasing by law.

           *       *       *       *       *       *       *

  [(c)(1) During the preparation of any proposed leasing 
program under this section, the Secretary shall invite and 
consider suggestions for such program from any interested 
Federal agency, including the Attorney General, in consultation 
with the Federal Trade Commission, and from the Governor of any 
State which may become an affected State under such proposed 
program. The Secretary may also invite or consider any 
suggestions from the executive of any affected local government 
in such an affected State, which have been previously submitted 
to the Governor of such State, and from any other person.
  [(2) After such preparation and at least sixty days prior to 
publication of a proposed leasing program in the Federal 
Register pursuant to paragraph (3) of this subsection, the 
Secretary shall submit a copy of such proposed program to the 
Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in his State which he, in his discretion, 
determines will be affected by the proposed program. If any 
comment by such Governor is received by the Secretary at least 
fifteen days prior to submission to the Congress pursuant to 
such paragraph (3) and includes a request for any modification 
of such proposed program, the Secretary shall reply in writing, 
granting or denying such request in whole or in part, or 
granting such request in such modified form as the Secretary 
considers appropriate, and stating his reasons therefor. All 
such correspondence between the Secretary and Governor of any 
affected State, together with any additional information and 
data relating thereto, shall accompany such proposed program 
when it is submitted to the Congress.]
  (c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall consider and analyze 
leasing throughout the entire Outer Continental Shelf without 
regard to any other law affecting such leasing. During this 
preparation the Secretary shall invite and consider suggestions 
from any interested Federal agency, including the Attorney 
General, in consultation with the Federal Trade Commission, and 
from the Governor of any coastal State. The Secretary may also 
invite or consider any suggestions from the executive of any 
local government in a coastal State that have been previously 
submitted to the Governor of such State, and from any other 
person. Further, the Secretary shall consult with the Secretary 
of Defense regarding military operational needs in the outer 
Continental Shelf. The Secretary shall work with the Secretary 
of Defense to resolve any conflicts that might arise regarding 
offering any area of the outer Continental Shelf for oil and 
gas or natural gas leasing. If the Secretaries are not able to 
resolve all such conflicts, any unresolved issues shall be 
elevated to the President for resolution.
  (2) After the consideration and analysis required by 
paragraph (1), including the consideration of the suggestions 
received from any interested Federal agency, the Federal Trade 
Commission, the Governor of any coastal State, any local 
government of a coastal State, and any other person, the 
Secretary shall publish in the Federal Register a proposed 
leasing program accompanied by a draft environmental impact 
statement prepared pursuant to the National Environmental 
Policy Act of 1969. After the publishing of the proposed 
leasing program and during the comment period provided for on 
the draft environmental impact statement, the Secretary shall 
submit a copy of the proposed program to the Governor of each 
affected State for review and comment. The Governor may solicit 
comments from those executives of local governments in the 
Governor's State that the Governor, in the discretion of the 
Governor, determines will be affected by the proposed program. 
If any comment by such Governor is received by the Secretary at 
least 15 days prior to submission to the Congress pursuant to 
paragraph (3) and includes a request for any modification of 
such proposed program, the Secretary shall reply in writing, 
granting or denying such request in whole or in part, or 
granting such request in such modified form as the Secretary 
considers appropriate, and stating the Secretary's reasons 
therefor. All such correspondence between the Secretary and the 
Governor of any affected State, together with any additional 
information and data relating thereto, shall accompany such 
proposed program when it is submitted to the Congress.

           *       *       *       *       *       *       *

  (i) Projection of State Adjacent Zone Resources and State and 
Local Government Shares of OCS Receipts.--Concurrent with the 
publication of the scoping notice at the beginning of the 
development of each 5-year outer Continental Shelf oil and gas 
leasing program, or as soon thereafter as possible, the 
Secretary shall--
          (1) provide to each Adjacent State a current estimate 
        of proven and potential oil and gas resources located 
        within the State's Adjacent Zone; and
          (2) provide to each Adjacent State, and coastal 
        political subdivisions thereof, a best-efforts 
        projection of the OCS Receipts that the Secretary 
        expects will be shared with each Adjacent State, and 
        its coastal political subdivisions, using the 
        assumption that the unleased tracts within the State's 
        Adjacent Zone are fully made available for leasing, 
        including long-term projected OCS Receipts. In 
        addition, the Secretary shall include a macroeconomic 
        estimate of the impact of such leasing on the national 
        economy and each State's economy, including investment, 
        jobs, revenues, personal income, and other categories.
  Sec. 19. Coordination and Consultation With Affected States 
and Local Governments.--(a) Any Governor of any affected State 
or the executive of any affected local government, for any 
tract located within the Adjacent State's Adjacent Zone, in 
such State may submit recommendations to the Secretary 
regarding the size, timing, or location of a proposed lease 
sale or with respect to a proposed development and production 
plan. Prior to submitting recommendations to the Secretary, the 
executive of any affected local government in any affected 
State must forward his recommendations to the Governor of such 
State.

           *       *       *       *       *       *       *

  (f)(1) No Federal agency may permit or otherwise approve, 
without the concurrence of the Adjacent State, the construction 
of a crude oil or petroleum products (or both) pipeline within 
the part of the Adjacent State's Adjacent Zone that is 
withdrawn from oil and gas or natural gas leasing, except that 
such a pipeline may be approved, without such Adjacent State's 
concurrence, to pass through such Adjacent Zone if at least 50 
percent of the production projected to be carried by the 
pipeline within its first 10 years of operation is from areas 
of the Adjacent State's Adjacent Zone.
  (2) No State may prohibit the construction within its 
Adjacent Zone or its State waters of a natural gas pipeline 
that will transport natural gas produced from the outer 
Continental Shelf. However, an Adjacent State may prevent a 
proposed natural gas pipeline landing location if it proposes 
two alternate landing locations in the Adjacent State, 
acceptable to the Adjacent State, located within 50 miles on 
either side of the proposed landing location.
  Sec. 20. Environmental Studies.--(a) * * *

           *       *       *       *       *       *       *

  (d)(1) The Secretary shall consider available relevant 
environmental information in making decisions (including those 
relating to exploration plans, drilling permits, and 
development and production plans), in developing appropriate 
regulations and lease conditions, and in issuing operating 
orders.
  (2) For all programs, lease sales, leases, and actions under 
this Act, the following shall apply regarding the application 
of the National Environmental Policy Act of 1969:
          (A) Granting or directing lease suspensions and the 
        conduct of all preliminary activities on outer 
        Continental Shelf tracts, including seismic activities, 
        are categorically excluded from the need to prepare 
        either an environmental assessment or an environmental 
        impact statement, and the Secretary shall not be 
        required to analyze whether any exceptions to a 
        categorical exclusion apply for activities conducted 
        under the authority of this Act.
          (B) The environmental impact statement developed in 
        support of each 5-year oil and gas leasing program 
        provides the environmental analysis for all lease sales 
        to be conducted under the program and such sales shall 
        not be subject to further environmental analysis.
          (C) Exploration plans shall not be subject to any 
        requirement to prepare an environmental impact 
        statement, and the Secretary may find that exploration 
        plans are eligible for categorical exclusion due to the 
        impacts already being considered within an 
        environmental impact statement or due to mitigation 
        measures included within the plan.
          (D) Within each OCS Planning Area, after the 
        preparation of the first development and production 
        plan environmental impact statement for a leased tract 
        within the Area, future development and production 
        plans for leased tracts within the Area shall only 
        require the preparation of an environmental assessment 
        unless the most recent development and production plan 
        environmental impact statement within the Area was 
        finalized more than 10 years prior to the date of the 
        approval of the plan, in which case an environmental 
        impact statement shall be required.

           *       *       *       *       *       *       *

  [Sec. 25. Oil and Gas Development and Production.--(a)(1) 
Prior to development and production pursuant to an oil and gas 
lease issued after the date of enactment of this section in any 
area of the outer Continental Shelf, other than the Gulf of 
Mexico, or issued or maintained prior to such date of enactment 
in any area of the outer Continental Shelf, other than the Gulf 
of Mexico, with respect to which no oil or gas has been 
discovered in paying quantities prior to such date of 
enactment, the lessee shall submit a development and production 
plan (hereinafter in this section referred to as a ``plan'') to 
the Secretary, for approval pursuant to this section.
  [(2) A plan shall be accompanied by a statement describing 
all facilities and operations, other than those on the outer 
Continental Shelf, proposed by the lessee and known by him 
(whether or not owned or operated by such lessee) which will be 
constructed or utilized in the development and production of 
oil or gas from the lease area, including the location and site 
of such facilities and operations, the land, labor, material, 
and energy requirements associated with such facilities and 
operations, and all environmental and safety safeguards to be 
implemented.
  [(3) Except for any privileged or proprietary information (as 
such term is defined in regulations issued by the Secretary), 
the Secretary, within ten days after receipt of a plan and 
statement, shall (A) submit such plan and statement to the 
Governor of any affected State, and, upon request, to the 
executive of any affected local government, and (B) make such 
plan and statement available to any appropriate interstate 
regional entity and the public.
  [(b) After the date of enactment of this section, no oil and 
gas lease may be issued pursuant to this Act in any region of 
the outer Continental Shelf, other than the Gulf of Mexico, 
unless such lease requires that development and production 
activities be carried out in accordance with a plan which 
complies with the requirements of this section.
  [(c) A plan may apply to more than one oil and gas lease, and 
shall set forth, in the degree of detail established by 
regulations issued by the Secretary--
          [(1) the specific work to be performed;
          [(2) a description of all facilities and operations 
        located on the outer Continental Self which are 
        proposed by the lessee of known by him (whether or not 
        owned or operated by such lessee) to be directly 
        related to proposed development, including the location 
        and size of such facilities and operations, and the 
        land, labor, material, and energy requirements 
        associated with such facilities and operations;
          [(3) the environmental safeguards to be implemented 
        on the outer Continental Shelf and how much safeguards 
        are to be implemented;
          [(4) all safety standards to be met and how such 
        standards are to be met;
          [(5) an expected rate of development and production 
        and a time schedule for performance; and
          [(6) such other relevant information as the Secretary 
        may by regulation require.
  [(d) The Secretary shall not grant any license or permit for 
any activity described in detail in a plan affecting any land 
use or water use in the coastal zone of a State with a coastal 
zone management program approved pursuant to section 306 of the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1455), unless 
the State concurs or is conclusively presumed to concur with 
the consistency certification accompanying such plan pursuant 
to section 307(c)(3)(B) (i) or (ii) of such Act, or the 
Secretary of Commerce makes the finding authorized by section 
307(c)(3)(B)(iii) of such Act.
  [(e)(1) At least once the Secretary shall declare the 
approval of a development and production plan in any area or 
region (as defined by the Secretary) of the outer Continental 
Shelf, other than the Gulf of Mexico, to be a major Federal 
action.
  [(2) The Secretary may require lessees of tracts for which 
development and production plans have not been approved, to 
submit preliminary or final plans for their leases, prior to or 
immediately after a determination by the Secretary that the 
procedures under the National Environmental Policy Act of 1969 
shall commence.
  [(f) If approval of a development and production plan is 
found to be a major Federal action, the Secretary shall 
transmit the draft environmental impact statement to the 
Governor of any affected State, and upon request, to the 
executive of any local government, and shall make such draft 
available to any appropriate interstate regional entity and the 
public.
  [(g) If approval of a development and production plan is not 
found to be a major Federal action, the Governor of any 
affected State and the executive of any affected local 
government shall have sixty days from the date of receipt of 
the plan from the Secretary to submit comments and 
recommendations. Prior to submitting recommendations to the 
Secretary, the executive of any affected local government must 
forward his recommendations to the Governor of his State. Such 
comments and recommendations shall be made available to the 
public upon request. In addition, any interested person may 
submit comments and recommendations.
  [(h)(1) After reviewing the record of any public hearing held 
with respect to the approval of a plan pursuant to the National 
Environmental Policy Act of 1969 or the comments and 
recommendations submitted under subsection (g) of this section, 
the Secretary shall, within sixty days after the release of the 
final environmental impact statement prepared pursuant to the 
National Environmental Policy Act of 1969 in accordance with 
subsection (e) of this section, or sixty days after the period 
provided for comment under subsection (g) of this section, 
approve, disapprove, or require modifications of the plan. The 
Secretary shall require modification of a plan if he determines 
that the lessee has failed to make adequate provision in such 
plan for safe operations on the lease area or for protection of 
the human, marine, or coastal environment, including compliance 
with the regulations prescribed by the Secretary pursuant to 
paragraph (8) of section 5(a) of this Act. Any modification 
required by the Secretary which involves activities for which a 
Federal license or permit is required and which affects any 
land use or water use in the coastal zone of a State with a 
coastal zone management program approved pursuant to section 
306 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1455) 
must receive concurrence by such State with respect to the 
consistency certification accompanying such plan pursuant to 
section 307(c)(3)(B) (i) or (ii) of such Act unless the 
Secretary of Commerce makes the finding authorized by section 
307(c)(3)(B)(iii) of such Act. The Secretary shall disapprove a 
plan--
          [(A) if the lessee fails to demonstrate that he can 
        comply with the requirements of this Act or other 
        applicable Federal law, including the regulations 
        prescribed by the Secretary pursuant to paragraph (8) 
        of section 5(a) of this Act;
          [(B) if any of the activities described in detail in 
        the plan for which a Federal license or permit is 
        required and which affects any land use or water use in 
        the coastal zone of a State with a coastal zone 
        management program approved pursuant to section 306 of 
        the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1455) do not receive concurrence by such State with 
        respect to the consistency certification accompanying 
        such plan pursuant to section 307(c)(3)(B) (i) or (ii) 
        of such Act and the Secretary of Commerce does not make 
        the finding authorized by section 307(c)(3)(B)(iii) of 
        such Act;
          [(C) if operations threaten national security or 
        national defense; or
          [(D) if the Secretary determines, because of 
        exceptional geological conditions in the lease areas, 
        exceptional resource values in the marine or coastal 
        environment, or other exceptional circumstances, that 
        (i) implementation of the plan would probably cause 
        serious harm or damage to life (including fish and 
        other aquatic life), to property, to any mineral 
        deposits (in areas leased or not leased), to the 
        national security or defense, or to the marine, coastal 
        or human environments, (ii) the threat of harm or 
        damage will not disappear or decrease to an acceptable 
        extent within a reasonable period of time, and (iii) 
        the advantages of disapproving the plan outweigh the 
        advantages of development and production.
  [(2)(A) If a plan is disapproved--
          [(i) under subparagraph (A) of paragraph (1); or
          [(ii) under subparagraph (B) of paragraph (1) with 
        respect to a lease issued after approval of a coastal 
        zone management program pursuant to the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1455),
the lessee shall not be entitled to compensation because of 
such disapproval.
  [(B) If a plan is disapproved--
          [(i) under subparagraph (C) or (D) of paragraph (1); 
        or
          [(ii) under subparagraph (B) of paragraph (1) with 
        respect to a lease issued before approval of a coastal 
        zone management program pursuant to the Coastal Zone 
        Management Act of 1972, and such approval occurs after 
        the lessee has submitted a plan to the Secretary,
the term of the lease shall be duly extended, and at any time 
within five years after such disapproval, the lessee may 
reapply for approval of the same or a modified plan, and the 
Secretary shall approve, disapprove, or require modifications 
of such plan in accordance with this subsection.
  [(C) Upon expiration of the five-year period described in 
subparagraph (B) of this paragraph, or, in the Secretary's 
discretion, at an earlier time upon request of a lessee, if the 
Secretary has not approved a plan, the Secretary shall cancel 
the lease and the lessee shall be entitled to receive 
compensation in accordance with section 5(a)(2)(C) of this Act. 
The Secretary may, at any time within the five-year period 
described in subparagraph (B) of this paragraph, require the 
lessee to submit a development and production plan for 
approval, disapproval, or modification. If the lessee fails to 
submit a required plan expeditiously and in good faith, the 
Secretary shall find that the lessee has not been duly diligent 
in pursuing his obligations under the lease, and shall 
immediately initiate procedures to cancel such lease, without 
compenation, under the provisions of section 5(c) of this Act.
  [(3) The Secretary shall, from time to time, review each plan 
approved under this section. Such review shall be based upon 
changes in available information and other onshore or offshore 
conditions affecting or impacted by development and production 
pursuant to such plan. If the review indicates that the plan 
should be revised to meet the requirements of this subsection, 
the Secretary shall require such revision.
  [(i) The Secretary may approve any revision of an approved 
plan proposed by the lessee if he determines that such revision 
will lead to greater recovery of oil and natural gas, improve 
the efficiency, safety and environmental protection of the 
recovery operation, is the only means available to avoid 
substantial economic hardship to the lessee, or is otherwise 
not inconsistent with the provisions of this Act, to the extent 
such revision is consistent with protection of the human, 
marine, and coastal environments. Any revision of an approved 
plan which the Secretary determines is significant shall be 
reviewed in accordance with subsections (d) through (f) of this 
section.
  [(j) Whenever the owner of any lease fails to submit a plan 
in accordance with regulations issued under this section, or 
fails to comply with an approved plan, the lease may be 
canceled in accordance with sections 5 (c) and (d). Termination 
of a lease because of failure to comply with an approved plan, 
including required modifications or revisions, shall not 
entitle a lessee to any compensation.
  [(k) If any development and production plan submitted to the 
Secretary pursuant to this section provides for the production 
and transportation of natural gas, the lessee shall 
contemporaneously submit to the Federal Energy Regulatory 
Commission that portion of such plan which relates to 
production of natural gas and the facilities for transportation 
of natural gas. The Secretary and the Federal Energy Regulatory 
Commission shall agree as to which of them shall prepare an 
environmental impact statement pursuant to the National 
Environmental Policy Act of 1969 applicable to such portion of 
such plan, or conduct studies as to the effect on the 
environment of implementing it. Thereafter, the findings and 
recommendations by the agency preparing such environmental 
impact statement or conducting such studies pursuant to such 
agreement shall be adopted by the other agency, and such other 
agency shall not independently prepare another environmental 
impact statement or duplicate such studies with respect to such 
portion of such plan, but the Federal Energy Regulatory 
Commission, in connection with its review of an application for 
a certificate of public convenience and necessity applicable to 
such transportation facilities pursuant to section 7 of the 
Natural Gas Act (15 U.S.C. 717), may prepare such environmental 
studies or statement relevant to certification of such 
transportation facilities as have not been covered by an 
environmental impact statement or studies prepared by the 
Secretary. The Secretary, in consultation with the Federal 
Energy Regulatory Commission, shall promulgate rules to 
implement this subsection, but the Federal Energy Regulatory 
Commission shall retain sole authority with respect to rules 
and procedures applicable to the filing of any application with 
the Commission and to all aspects of the Commission's review 
of, and action on, any such application.
  [(l) The Secretary may require the provisions of this section 
to apply to an oil and gas lease issued or maintained under 
this Act, which is located in that area of the Gulf of Mexico 
which is adjacent to the State of Florida, as determined 
pursuant to section 4(a)(2) of this Act.]

SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVELOPMENT AND PRODUCTION 
                    PLANS.

  (a) Development and Production Plans; Submission to 
Secretary; Statement of Facilities and Operation; Submission to 
Governors of Affected States and Local Governments.--
          (1) Prior to development and production pursuant to 
        an oil and gas lease issued on or after September 18, 
        1978, for any area of the outer Continental Shelf, or 
        issued or maintained prior to September 18, 1978, for 
        any area of the outer Continental Shelf, with respect 
        to which no oil or gas has been discovered in paying 
        quantities prior to September 18, 1978, the lessee 
        shall submit a development and production plan 
        (hereinafter in this section referred to as a ``plan'') 
        to the Secretary for review.
          (2) A plan shall be accompanied by a statement 
        describing all facilities and operations, other than 
        those on the outer Continental Shelf, proposed by the 
        lessee and known by the lessee (whether or not owned or 
        operated by such lessee) that will be constructed or 
        utilized in the development and production of oil or 
        gas from the lease area, including the location and 
        site of such facilities and operations, the land, 
        labor, material, and energy requirements associated 
        with such facilities and operations, and all 
        environmental and safety safeguards to be implemented.
          (3) Except for any privileged or proprietary 
        information (as such term is defined in regulations 
        issued by the Secretary), the Secretary, within 30 days 
        after receipt of a plan and statement, shall--
                  (A) submit such plan and statement to the 
                Governor of any affected State, and upon 
                request to the executive of any affected local 
                government; and
                  (B) make such plan and statement available to 
                any appropriate interstate regional entity and 
                the public.
  (b) Development and Production Activities in Accordance With 
Plan as Lease Requirement.--After enactment of the Deep Ocean 
Energy Resources Act of 2006, no oil and gas lease may be 
issued pursuant to this Act in any region of the outer 
Continental Shelf, unless such lease requires that development 
and production activities be carried out in accordance with a 
plan that complies with the requirements of this section. This 
section shall also apply to leases that do not have an approved 
development and production plan as of the date of enactment of 
the Deep Ocean Energy Resources Act of 2006.
  (c) Scope and Contents of Plan.--A plan may apply to more 
than one oil and gas lease, and shall set forth, in the degree 
of detail established by regulations issued by the Secretary--
          (1) the general work to be performed;
          (2) a description of all facilities and operations 
        located on the outer Continental Shelf that are 
        proposed by the lessee or known by the lessee (whether 
        or not owned or operated by such lessee) to be directly 
        related to the proposed development, including the 
        location and size of such facilities and operations, 
        and the land, labor, material, and energy requirements 
        associated with such facilities and operations;
          (3) the environmental safeguards to be implemented on 
        the outer Continental Shelf and how such safeguards are 
        to be implemented;
          (4) all safety standards to be met and how such 
        standards are to be met;
          (5) an expected rate of development and production 
        and a time schedule for performance; and
          (6) such other relevant information as the Secretary 
        may by regulation require.
  (d) Completeness Review of the Plan.--
          (1) Prior to commencing any activity under a 
        development and production plan pursuant to any oil and 
        gas lease issued or maintained under this Act, the 
        lessee shall certify that the plan is consistent with 
        the terms of the lease and that it is consistent with 
        all statutory and regulatory requirements in effect on 
        the date of issuance of the lease, and any regulations 
        promulgated under this Act related to the conservation 
        of resources after the date of lease issuance. The plan 
        shall include all required information and 
        documentation required under subsection (c).
          (2) The Secretary shall review the plan for 
        completeness within 30 days of submission. If the 
        Secretary finds that the plan is not complete, the 
        Secretary shall notify the lessee with a detailed 
        explanation of such modifications of such plan as are 
        necessary to achieve completeness. The Secretary shall 
        have 30 days to review a modified plan for 
        completeness.
  (e) Review for Consistency of the Plan.--
          (1) After a determination that a plan is complete, 
        the Secretary shall have 120 days to conduct a review 
        of the plan, to ensure that it is consistent with the 
        terms of the lease, and that it is consistent with all 
        such statutory and regulatory requirements applicable 
        to the lease. The review shall ensure that the plan is 
        consistent with lease terms, and statutory and 
        regulatory requirements applicable to the lease, 
        related to national security or national defense, 
        including any military operating stipulations or other 
        restrictions. The Secretary shall seek the assistance 
        of the Department of Defense in the conduct of the 
        review of any plan prepared under this section for a 
        lease containing military operating stipulations or 
        other restrictions and shall accept the assistance of 
        the Department of Defense in the conduct of the review 
        of any plan prepared under this section for any other 
        lease when the Secretary of Defense requests an 
        opportunity to participate in the review. If the 
        Secretary finds that the plan is not consistent, the 
        Secretary shall notify the lessee with a detailed 
        explanation of such modifications of such plan as are 
        necessary to achieve consistency.
          (2) The Secretary shall have 120 days to review a 
        modified plan.
          (3) The lessee shall not conduct any activities under 
        the plan during any 120-day review period, or 
        thereafter until the plan has been modified to achieve 
        compliance as so notified.
          (4) After review by the Secretary provided for by 
        this section, a lessee may operate pursuant to the plan 
        without further review or approval by the Secretary.
  (f) Review of Revision of the Approved Plan.--The lessee may 
submit to the Secretary any revision of a plan if the lessee 
determines that such revision will lead to greater recovery of 
oil and natural gas, improve the efficiency, safety, and 
environmental protection of the recovery operation, is the only 
means available to avoid substantial economic hardship to the 
lessee, or is otherwise not inconsistent with the provisions of 
this Act, to the extent such revision is consistent with 
protection of the human, marine, and coastal environments. The 
process to be used for the review of any such revision shall be 
the same as that set forth in subsections (d) and (e).
  (g) Cancellation of Lease on Failure to Submit Plan or Comply 
With a Plan.--Whenever the owner of any lease fails to submit a 
plan in accordance with regulations issued under this section, 
or fails to comply with a plan, the lease may be canceled in 
accordance with section 5(c) and (d). Termination of a lease 
because of failure to comply with a plan, including required 
modifications or revisions, shall not entitle a lessee to any 
compensation.
  (h) Production and Transportation of Natural Gas; Submission 
of Plan to Federal Energy Regulatory Commission; Impact 
Statement.--If any development and production plan submitted to 
the Secretary pursuant to this section provides for the 
production and transportation of natural gas, the lessee shall 
contemporaneously submit to the Federal Energy Regulatory 
Commission that portion of such plan that relates to the 
facilities for transportation of natural gas. The Secretary and 
the Federal Energy Regulatory Commission shall agree as to 
which of them shall prepare an environmental impact statement 
pursuant to the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) applicable to such portion of such plan, 
or conduct studies as to the effect on the environment of 
implementing it. Thereafter, the findings and recommendations 
by the agency preparing such environmental impact statement or 
conducting such studies pursuant to such agreement shall be 
adopted by the other agency, and such other agency shall not 
independently prepare another environmental impact statement or 
duplicate such studies with respect to such portion of such 
plan, but the Federal Energy Regulatory Commission, in 
connection with its review of an application for a certificate 
of public convenience and necessity applicable to such 
transportation facilities pursuant to section 7 of the Natural 
Gas Act (15 U.S.C. 717f), may prepare such environmental 
studies or statement relevant to certification of such 
transportation facilities as have not been covered by an 
environmental impact statement or studies prepared by the 
Secretary. The Secretary, in consultation with the Federal 
Energy Regulatory Commission, shall promulgate rules to 
implement this subsection, but the Federal Energy Regulatory 
Commission shall retain sole authority with respect to rules 
and procedures applicable to the filing of any application with 
the Commission and to all aspects of the Commission's review 
of, and action on, any such application.

           *       *       *       *       *       *       *


[SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.

  [(a) Definitions.--In this section:
          [(1) Coastal political subdivision.--The term 
        ``coastal political subdivision'' means a political 
        subdivision of a coastal State any part of which 
        political subdivision is--
                  [(A) within the coastal zone (as defined in 
                section 304 of the Coastal Zone Management Act 
                of 1972 (16 U.S.C. 1453)) of the coastal State 
                as of the date of enactment of the Energy 
                Policy Act of 2005; and
                  [(B) not more than 200 nautical miles from 
                the geographic center of any leased tract.
          [(2) Coastal population.--The term ``coastal 
        population'' means the population, as determined by the 
        most recent official data of the Census Bureau, of each 
        political subdivision any part of which lies within the 
        designated coastal boundary of a State (as defined in a 
        State's coastal zone management program under the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et 
        seq.)).
          [(3) Coastal state.--The term ``coastal State'' has 
        the meaning given the term in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
          [(4) Coastline.--The term ``coastline'' has the 
        meaning given the term ``coast line'' in section 2 of 
        the Submerged Lands Act (43 U.S.C. 1301).
          [(5) Distance.--The term ``distance'' means the 
        minimum great circle distance, measured in statute 
        miles.
          [(6) Leased tract.--The term ``leased tract'' means a 
        tract that is subject to a lease under section 6 or 8 
        for the purpose of drilling for, developing, and 
        producing oil or natural gas resources.
          [(7) Leasing moratoria.--The term ``leasing 
        moratoria'' means the prohibitions on preleasing, 
        leasing, and related activities on any geographic area 
        of the outer Continental Shelf as contained in sections 
        107 through 109 of division E of the Consolidated 
        Appropriations Act, 2005 (Public Law 108-447; 118 Stat. 
        3063).
          [(8) Political subdivision.--The term ``political 
        subdivision'' means the local political jurisdiction 
        immediately below the level of State government, 
        including counties, parishes, and boroughs.
          [(9) Producing state.--
                  [(A) In general.--The term ``producing 
                State'' means a coastal State that has a 
                coastal seaward boundary within 200 nautical 
                miles of the geographic center of a leased 
                tract within any area of the outer Continental 
                Shelf.
                  [(B) Exclusion.--The term ``producing State'' 
                does not include a producing State, a majority 
                of the coastline of which is subject to leasing 
                moratoria, unless production was occurring on 
                January 1, 2005, from a lease within 10 
                nautical miles of the coastline of that State.
          [(10) Qualified outer continental shelf revenues.--
                  [(A) In general.--The term ``qualified Outer 
                Continental Shelf revenues'' means all amounts 
                received by the United States from each leased 
                tract or portion of a leased tract--
                          [(i) lying--
                                  [(I) seaward of the zone 
                                covered by section 8(g); or
                                  [(II) within that zone, but 
                                to which section 8(g) does not 
                                apply; and
                          [(ii) the geographic center of which 
                        lies within a distance of 200 nautical 
                        miles from any part of the coastline of 
                        any coastal State.
                  [(B) Inclusions.--The term ``qualified Outer 
                Continental Shelf revenues'' includes bonus 
                bids, rents, royalties (including payments for 
                royalty taken in kind and sold), net profit 
                share payments, and related late-payment 
                interest from natural gas and oil leases issued 
                under this Act.
                  [(C) Exclusion.--The term ``qualified Outer 
                Continental Shelf revenues'' does not include 
                any revenues from a leased tract or portion of 
                a leased tract that is located in a geographic 
                area subject to a leasing moratorium on January 
                1, 2005, unless the lease was in production on 
                January 1, 2005.
  [(b) Payments to Producing States and Coastal Political 
Subdivisions.--
          [(1) In general.--The Secretary shall, without 
        further appropriation, disburse to producing States and 
        coastal political subdivisions in accordance with this 
        section $250,000,000 for each of fiscal years 2007 
        through 2010.
          [(2) Disbursement.--In each fiscal year, the 
        Secretary shall disburse to each producing State for 
        which the Secretary has approved a plan under 
        subsection (c), and to coastal political subdivisions 
        under paragraph (4), such funds as are allocated to the 
        producing State or coastal political subdivision, 
        respectively, under this section for the fiscal year.
          [(3) Allocation among producing states.--
                  [(A) In general.--Except as provided in 
                subparagraph (C) and subject to subparagraph 
                (D), the amounts available under paragraph (1) 
                shall be allocated to each producing State 
                based on the ratio that--
                          [(i) the amount of qualified outer 
                        Continental Shelf revenues generated 
                        off the coastline of the producing 
                        State; bears to
                          [(ii) the amount of qualified outer 
                        Continental Shelf revenues generated 
                        off the coastline of all producing 
                        States.
                  [(B) Amount of outer continental shelf 
                revenues.--For purposes of subparagraph (A)--
                          [(i) the amount of qualified outer 
                        Continental Shelf revenues for each of 
                        fiscal years 2007 and 2008 shall be 
                        determined using qualified outer 
                        Continental Shelf revenues received for 
                        fiscal year 2006; and
                          [(ii) the amount of qualified outer 
                        Continental Shelf revenues for each of 
                        fiscal years 2009 and 2010 shall be 
                        determined using qualified outer 
                        Continental Shelf revenues received for 
                        fiscal year 2008.
                  [(C) Multiple producing states.--In a case in 
                which more than one producing State is located 
                within 200 nautical miles of any portion of a 
                leased tract, the amount allocated to each 
                producing State for the leased tract shall be 
                inversely proportional to the distance 
                between--
                          [(i) the nearest point on the 
                        coastline of the producing State; and
                          [(ii) the geographic center of the 
                        leased tract.
                  [(D) Minimum allocation.--The amount 
                allocated to a producing State under 
                subparagraph (A) shall be at least 1 percent of 
                the amounts available under paragraph (1).
          [(4) Payments to coastal political subdivisions.--
                  [(A) In general.--The Secretary shall pay 35 
                percent of the allocable share of each 
                producing State, as determined under paragraph 
                (3) to the coastal political subdivisions in 
                the producing State.
                  [(B) Formula.--Of the amount paid by the 
                Secretary to coastal political subdivisions 
                under subparagraph (A)--
                          [(i) 25 percent shall be allocated to 
                        each coastal political subdivision in 
                        the proportion that--
                                  [(I) the coastal population 
                                of the coastal political 
                                subdivision; bears to
                                  [(II) the coastal population 
                                of all coastal political 
                                subdivisions in the producing 
                                State;
                          [(ii) 25 percent shall be allocated 
                        to each coastal political subdivision 
                        in the proportion that--
                                  [(I) the number of miles of 
                                coastline of the coastal 
                                political subdivision; bears to
                                  [(II) the number of miles of 
                                coastline of all coastal 
                                political subdivisions in the 
                                producing State; and
                          [(iii) 50 percent shall be allocated 
                        in amounts that are inversely 
                        proportional to the respective 
                        distances between the points in each 
                        coastal political subdivision that are 
                        closest to the geographic center of 
                        each leased tract, as determined by the 
                        Secretary.
                  [(C) Exception for the state of louisiana.--
                For the purposes of subparagraph (B)(ii), the 
                coastline for coastal political subdivisions in 
                the State of Louisiana without a coastline 
                shall be considered to be \1/3\ the average 
                length of the coastline of all coastal 
                political subdivisions with a coastline in the 
                State of Louisiana.
                  [(D) Exception for the state of alaska.--For 
                the purposes of carrying out subparagraph 
                (B)(iii) in the State of Alaska, the amounts 
                allocated shall be divided equally among the 
                two coastal political subdivisions that are 
                closest to the geographic center of a leased 
                tract.
                  [(E) Exclusion of certain leased tracts.--For 
                purposes of subparagraph (B)(iii), a leased 
                tract or portion of a leased tract shall be 
                excluded if the tract or portion of a leased 
                tract is located in a geographic area subject 
                to a leasing moratorium on January 1, 2005, 
                unless the lease was in production on that 
                date.
          [(5) No approved plan.--
                  [(A) In general.--Subject to subparagraph (B) 
                and except as provided in subparagraph (C), in 
                a case in which any amount allocated to a 
                producing State or coastal political 
                subdivision under paragraph (4) or (5) is not 
                disbursed because the producing State does not 
                have in effect a plan that has been approved by 
                the Secretary under subsection (c), the 
                Secretary shall allocate the undisbursed amount 
                equally among all other producing States.
                  [(B) Retention of allocation.--The Secretary 
                shall hold in escrow an undisbursed amount 
                described in subparagraph (A) until such date 
                as the final appeal regarding the disapproval 
                of a plan submitted under subsection (c) is 
                decided.
                  [(C) Waiver.--The Secretary may waive 
                subparagraph (A) with respect to an allocated 
                share of a producing State and hold the 
                allocable share in escrow if the Secretary 
                determines that the producing State is making a 
                good faith effort to develop and submit, or 
                update, a plan in accordance with subsection 
                (c).
  [(c) Coastal Impact Assistance Plan.--
          [(1) Submission of state plans.--
                  [(A) In general.--Not later than July 1, 
                2008, the Governor of a producing State shall 
                submit to the Secretary a coastal impact 
                assistance plan.
                  [(B) Public participation.--In carrying out 
                subparagraph (A), the Governor shall solicit 
                local input and provide for public 
                participation in the development of the plan.
          [(2) Approval.--
                  [(A) In general.--The Secretary shall approve 
                a plan of a producing State submitted under 
                paragraph (1) before disbursing any amount to 
                the producing State, or to a coastal political 
                subdivision located in the producing State, 
                under this section.
                  [(B) Components.--The Secretary shall approve 
                a plan submitted under paragraph (1) if--
                          [(i) the Secretary determines that 
                        the plan is consistent with the uses 
                        described in subsection (d); and
                          [(ii) the plan contains--
                                  [(I) the name of the State 
                                agency that will have the 
                                authority to represent and act 
                                on behalf of the producing 
                                State in dealing with the 
                                Secretary for purposes of this 
                                section;
                                  [(II) a program for the 
                                implementation of the plan that 
                                describes how the amounts 
                                provided under this section to 
                                the producing State will be 
                                used;
                                  [(III) for each coastal 
                                political subdivision that 
                                receives an amount under this 
                                section--
                                          [(aa) the name of a 
                                        contact person; and
                                          [(bb) a description 
                                        of how the coastal 
                                        political subdivision 
                                        will use amounts 
                                        provided under this 
                                        section;
                                  [(IV) a certification by the 
                                Governor that ample opportunity 
                                has been provided for public 
                                participation in the 
                                development and revision of the 
                                plan; and
                                  [(V) a description of 
                                measures that will be taken to 
                                determine the availability of 
                                assistance from other relevant 
                                Federal resources and programs.
          [(3) Amendment.--Any amendment to a plan submitted 
        under paragraph (1) shall be--
                  [(A) developed in accordance with this 
                subsection; and
                  [(B) submitted to the Secretary for approval 
                or disapproval under paragraph (4).
          [(4) Procedure.--Not later than 90 days after the 
        date on which a plan or amendment to a plan is 
        submitted under paragraph (1) or (3), the Secretary 
        shall approve or disapprove the plan or amendment.
  [(d) Authorized Uses.--
          [(1) In general.--A producing State or coastal 
        political subdivision shall use all amounts received 
        under this section, including any amount deposited in a 
        trust fund that is administered by the State or coastal 
        political subdivision and dedicated to uses consistent 
        with this section, in accordance with all applicable 
        Federal and State laws, only for one or more of the 
        following purposes:
                  [(A) Projects and activities for the 
                conservation, protection, or restoration of 
                coastal areas, including wetland.
                  [(B) Mitigation of damage to fish, wildlife, 
                or natural resources.
                  [(C) Planning assistance and the 
                administrative costs of complying with this 
                section.
                  [(D) Implementation of a federally-approved 
                marine, coastal, or comprehensive conservation 
                management plan.
                  [(E) Mitigation of the impact of outer 
                Continental Shelf activities through funding of 
                onshore infrastructure projects and public 
                service needs.
          [(2) Compliance with authorized uses.--If the 
        Secretary determines that any expenditure made by a 
        producing State or coastal political subdivision is not 
        consistent with this subsection, the Secretary shall 
        not disburse any additional amount under this section 
        to the producing State or the coastal political 
        subdivision until such time as all amounts obligated 
        for unauthorized uses have been repaid or reobligated 
        for authorized uses.
          [(3) Limitation.--Not more than 23 percent of amounts 
        received by a producing State or coastal political 
        subdivision for any 1 fiscal year shall be used for the 
        purposes described in subparagraphs (C) and (E) of 
        paragraph (1).]
                              ----------                              


MINERAL LEASING ACT

           *       *       *       *       *       *       *


  Sec. 17. (a) * * *

           *       *       *       *       *       *       *

  [(g) The Secretary of the Interior, or for National Forest 
lands, the Secretary of Agriculture, shall regulate all 
surface-disturbing activities conducted pursuant to any lease 
issued under this Act, and shall determine reclamation and 
other actions as required in the interest of conservation of 
surface resources. No permit to drill on an oil and gas lease 
issued under this Act may be granted without the analysis and 
approval by the Secretary concerned of a plan of operations 
covering proposed surface-disturbing activities within the 
lease area. The Secretary concerned shall, by rule or 
regulation, establish such standards as may be necessary to 
ensure that an adequate bond, surety, or other financial 
arrangement will be established prior to the commencement of 
surface-disturbing activities on any lease, to ensure the 
complete and timely reclamation of the lease tract, and the 
restoration of any lands or surface waters adversely affected 
by lease operations after the abandonment or cessation of oil 
and gas operations on the lease. The Secretary shall not issue 
a lease or leases or approve the assignment of any lease or 
leases under the terms of this section to any person, 
association, corporation, or any subsidiary, affiliate, or 
person controlled by or under common control with such person, 
association, or corporation, during any period in which, as 
determined by the Secretary of the Interior or Secretary of 
Agriculture, such entity has failed or refused to comply in any 
material respect with the reclamation requirements and other 
standards established under this section for any prior lease to 
which such requirements and standards applied. Prior to making 
such determination with respect to any such entity the 
concerned Secretary shall provide such entity with adequate 
notification and an opportunity to comply with such reclamation 
requirements and other standards and shall consider whether any 
administrative or judicial appeal is pending. Once the entity 
has complied with the reclamation requirement or other standard 
concerned an oil or gas lease may be issued to such entity 
under this Act.]
  (g) Regulation of Surface-Disturbing Activities.--
          (1) Regulation of surface-disturbing activities.--The 
        Secretary of the Interior, or for National Forest 
        lands, the Secretary of Agriculture, shall regulate all 
        surface-disturbing activities conducted pursuant to any 
        lease issued under this Act, and shall determine 
        reclamation and other actions as required in the 
        interest of conservation of surface resources.
          (2) Submission of exploration plan; completion 
        review; compliance review.--
                  (A) Prior to beginning oil and gas 
                exploration activities, a lessee shall submit 
                an exploration plan to the Secretary of the 
                Interior for review.
                  (B) The Secretary shall review the plan for 
                completeness within 10 days of submission.
                  (C) In the event the exploration plan is 
                determined to be incomplete, the Secretary 
                shall notify the lessee in writing and specify 
                the items or information needed to complete the 
                exploration plan.
                  (D) The Secretary shall have 10 days to 
                review any modified exploration plan submitted 
                by the lessee.
                  (E) To be deemed complete, an exploration 
                plan shall include, in the degree of detail to 
                be determined by the Secretary by rule or 
                regulation--
                          (i) a drilling plan containing a 
                        description of the drilling program;
                          (ii) the surface and projected 
                        completion zone location;
                          (iii) pertinent geologic data;
                          (iv) expected hazards, and proposed 
                        mitigation measures to address such 
                        hazards;
                          (v) a schedule of anticipated 
                        exploration activities to be 
                        undertaken;
                          (vi) a description of equipment to be 
                        used for such activities;
                          (vii) a certification from the lessee 
                        stating that the exploration plan 
                        complies with all lease, regulatory and 
                        statutory requirements in effect on the 
                        date of the issuance of the lease and 
                        any regulations promulgated after the 
                        date of lease issuance related to the 
                        conservation of resources;
                          (viii) evidence that the lessee has 
                        secured an adequate bond, surety, or 
                        other financial arrangement prior to 
                        commencement of any surface disturbing 
                        activity;
                          (ix) a plan that details the complete 
                        and timely reclamation of the lease 
                        tract; and
                          (x) such other relevant information 
                        as the Secretary may by regulation 
                        require.
                  (F) Upon a determination that the exploration 
                plan is complete, the Secretary shall have 30 
                days from the date the plan is deemed complete 
                to conduct a review of the plan.
                  (G) If the Secretary finds the exploration 
                plan is not consistent with all statutory and 
                regulatory requirements described in 
                subparagraph (E)(vii), the Secretary shall 
                notify the lessee with a detailed explanation 
                of such modifications of the exploration plan 
                as are necessary to achieve compliance.
                  (H) The lessee shall not take any action 
                under the exploration plan within a 30 day 
                review period, or thereafter until the plan has 
                been modified to achieve compliance as so 
                notified.
                  (I) After review by the Secretary provided by 
                this subsection, a lessee may operate pursuant 
                to the plan without further review or approval 
                by the Secretary.
          (3) Plan revisions; conduct of exploration 
        activities.--
                  (A) If a significant revision of an 
                exploration plan under this subsection is 
                submitted to the Secretary, the process to be 
                used for the review of such revision shall be 
                the same as set forth in paragraph (1) of this 
                subsection.
                  (B) All exploration activities pursuant to 
                any lease shall be conducted in accordance with 
                an exploration plan that has been submitted to 
                and reviewed by the Secretary or a revision of 
                such plan.
          (4) Submission of development and production plan; 
        completeness review; compliance review.--
                  (A) Prior to beginning oil and gas 
                development and production activities, a lessee 
                shall submit a development and exploration plan 
                to the Secretary of the Interior. Upon 
                submission, such plans shall be subject to a 
                review for completeness.
                  (B) The Secretary shall review the plan for 
                completeness within 30 days of submission.
                  (C) In the event a development and production 
                plan is determined to be incomplete, the 
                Secretary shall notify the lessee in writing 
                and specify the items or information needed to 
                complete the plan.
                  (D) The Secretary shall have 30 days to 
                review for completeness any modified 
                development and production plan submitted by 
                the lessee.
                  (E) To be deemed complete, a development and 
                production plan shall include, in the degree of 
                detail to be determined by the Secretary by 
                rule or regulation--
                          (i) a drilling plan containing a 
                        description of the drilling program;
                          (ii) the surface and projected 
                        completion zone location;
                          (iii) pertinent geologic data;
                          (iv) expected hazards, and proposed 
                        mitigation measures to address such 
                        hazards;
                          (v) a statement describing all 
                        facilities and operations proposed by 
                        the lessee and known by the lessee 
                        (whether or not owned or operated by 
                        such lessee) that shall be constructed 
                        or utilized in the development and 
                        production of oil or gas from the 
                        leases areas, including the location 
                        and site of such facilities and 
                        operations, the land, labor, material, 
                        and energy requirements associated with 
                        such facilities and operations;
                          (vi) the general work to be 
                        performed;
                          (vii) the environmental safeguards to 
                        be implemented in connection with the 
                        development and production and how such 
                        safeguards are to be implemented;
                          (viii) all safety standards to be met 
                        and how such standards are to be met;
                          (ix) an expected rate of development 
                        and production and a time schedule for 
                        performance;
                          (x) a certification from the lessee 
                        stating that the development and 
                        production plan complies with all 
                        lease, regulatory, and statutory 
                        requirements in effect on the date of 
                        issuance of the lease, and any 
                        regulations promulgated after the date 
                        of lease issuance related to the 
                        conservation of resources;
                          (xi) evidence that the lessee has 
                        secured an adequate bond, surety, or 
                        other financial arrangement prior to 
                        commencement of any surface disturbing 
                        activity;
                          (xii) a plan that details the 
                        complete and timely reclamation of the 
                        lease tract; and
                          (xiii) such other relevant 
                        information as the Secretary may by 
                        regulation require.
                  (F) Upon a determination that the development 
                and production plan is complete, the Secretary 
                shall have 120 days from the date the plan is 
                deemed complete to conduct a review of the 
                plan.
                  (G) If the Secretary finds the development 
                and production plan is not consistent with all 
                statutory and regulatory requirements described 
                in subparagraph (E)(x), the Secretary shall 
                notify the lessee with a detailed explanation 
                of such modifications of the development and 
                production plan as are necessary to achieve 
                compliance.
                  (H) The lessee shall not take any action 
                under the development and production plan 
                within a 120 day review period, or thereafter 
                until the plan has been modified to achieve 
                compliance as so notified.
          (5) Plan revisions; conduct of development and 
        production activities.--
                  (A) If a significant revision of a 
                development and production plan under this 
                subsection is submitted to the Secretary, the 
                process to be used for the review of such 
                revision shall be the same as set forth in 
                paragraph (4) of this subsection.
                  (B) All development and production activities 
                pursuant to any lease shall be conducted in 
                accordance with a development and production 
                plan that has been submitted to and reviewed by 
                the Secretary or a revision of such plan.
          (6) Cancellation of lease on failure to submit plan 
        or comply with approved plan.--Whenever the owner of 
        any lease fails to submit a plan in accordance with 
        regulations issued under this section, or fails to 
        comply with a plan, the lease may be canceled in 
        accordance with section 31. Termination of a lease 
        because of failure to comply with a plan, including 
        required modifications or revisions, shall not entitle 
        a lessee to any compensation.

           *       *       *       *       *       *       *

  Sec. 21. (a) * * *

           *       *       *       *       *       *       *

  (e) Revenues.--
          (1) In general.--Notwithstanding the provisions of 
        section 35, all revenues received from and under an oil 
        shale or tar sands lease shall be disposed of as 
        provided in this subsection.
          (2) Royalty rates for commercial leases.--
                  (A) Royalty rates.--The Secretary shall model 
                the royalty schedule for oil shale and tar 
                sands leases based on the royalty program 
                currently in effect for the production of 
                synthetic crude oil from oil sands in the 
                Province of Alberta, Canada.
                  (B) Reduction.--The Secretary shall reduce 
                any royalty otherwise required to be paid under 
                subparagraph (A) under any oil shale or tar 
                sands lease on a sliding scale based upon 
                market price, with a 10 percent reduction if 
                the average futures price of NYMEX Light Sweet 
                Crude, or a similar index, drops, for the 
                previous quarter year, below $50 (in January 1, 
                2006, dollars), and an 80 percent reduction if 
                the average price drops below $30 (in January 
                1, 2006, dollars) for the quarter previous to 
                the one in which the production is sold.
          (3) Disposition of revenues.--
                  (A) Deposit.--The Secretary shall deposit 
                into a separate account in the Treasury all 
                revenues derived from any oil shale or tar 
                sands lease.
                  (B) Allocations to states and local political 
                subdivisions.--The Secretary shall allocate 50 
                percent of the revenues deposited into the 
                account established under subparagraph (A) to 
                the State within the boundaries of which the 
                leased lands are located, with a portion of 
                that to be paid directly by the Secretary to 
                the State's local political subdivisions as 
                provided in this paragraph.
                  (C) Transmission of allocations.--
                          (i) In general.--Not later than the 
                        last business day of the month after 
                        the month in which the revenues were 
                        received, the Secretary shall 
                        transmit--
                                  (I) to each State two-thirds 
                                of such State's allocations 
                                under subparagraph (B), and in 
                                accordance with clauses (ii) 
                                and (iii) to certain county-
                                equivalent and municipal 
                                political subdivisions of such 
                                State a total of one-third of 
                                such State's allocations under 
                                subparagraph (B), together with 
                                all accrued interest thereon; 
                                and
                                  (II) the remaining balance of 
                                such revenues deposited into 
                                the account that are not 
                                allocated under subparagraph 
                                (B), together with interest 
                                thereon, shall be transmitted 
                                to the miscellaneous receipts 
                                account of the Treasury, except 
                                that until a lease has been in 
                                production for 20 years 50 
                                percent of such remaining 
                                balance derived from a lease 
                                shall be paid in accordance 
                                with subclause (I).
                          (ii) Allocations to certain county-
                        equivalent political subdivisions.--The 
                        Secretary shall under clause (i)(I) 
                        make equitable allocations of the 
                        revenues to county-equivalent political 
                        subdivisions that the Secretary 
                        determines are closely associated with 
                        the leasing and production of oil shale 
                        and tar sands, under a formula that the 
                        Secretary shall determine by 
                        regulation.
                          (iii) Allocations to municipal 
                        political subdivisions.--The initial 
                        allocation to each county-equivalent 
                        political subdivision under clause (ii) 
                        shall be further allocated to the 
                        county-equivalent political subdivision 
                        and any municipal political 
                        subdivisions located partially or 
                        wholly within the boundaries of the 
                        county-equivalent political subdivision 
                        on an equitable basis under a formula 
                        that the Secretary shall determine by 
                        regulation.
                  (D) Investment of deposits.--The deposits in 
                the Treasury account established under this 
                section shall be invested by the Secretary of 
                the Treasury in securities backed by the full 
                faith and credit of the United States having 
                maturities suitable to the needs of the account 
                and yielding the highest reasonably available 
                interest rates as determined by the Secretary 
                of the Treasury.
                  (E) Use of funds.--A recipient of funds under 
                this subsection may use the funds for any 
                lawful purpose as determined by State law. 
                Funds allocated under this subsection to States 
                and local political subdivisions may be used as 
                matching funds for other Federal programs 
                without limitation. Funds allocated to local 
                political subdivisions under this subsection 
                may not be used in calculation of payments to 
                such local political subdivisions under 
                programs for payments in lieu of taxes or other 
                similar programs.
                  (F) No accounting required.--No recipient of 
                funds under this subsection shall be required 
                to account to the Federal Government for the 
                expenditure of such funds, except as otherwise 
                may be required by law.
          (4) Definitions.--In this subsection:
                  (A) County-equivalent political 
                subdivision.--The term ``county-equivalent 
                political subdivision'' means a political 
                jurisdiction immediately below the level of 
                State government, including a county, parish, 
                borough in Alaska, independent municipality not 
                part of a county, parish, or borough in Alaska, 
                or other equivalent subdivision of a State.
                  (B) Municipal political subdivision.--The 
                term ``municipal political subdivision'' means 
                a municipality located within and part of a 
                county, parish, borough in Alaska, or other 
                equivalent subdivision of a State.

           *       *       *       *       *       *       *

                              ----------                              


                       ENERGY POLICY ACT OF 2005

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Energy 
Policy Act of 2005''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
Sec. 1. Short title; table of contents.
     * * * * * * *

                         TITLE III--OIL AND GAS

     * * * * * * *

                    Subtitle E--Production Incentives

     * * * * * * *
[Sec. 357. Comprehensive inventory of OCS oil and natural gas 
          resources.]

           *       *       *       *       *       *       *


TITLE III--OIL AND GAS

           *       *       *       *       *       *       *


Subtitle E--Production Incentives

           *       *       *       *       *       *       *


[SEC. 357. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS 
                    RESOURCES.

  [(a) In General.--The Secretary shall conduct an inventory 
and analysis of oil and natural gas resources beneath all of 
the waters of the United States Outer Continental Shelf 
(``OCS''). The inventory and analysis shall--
          [(1) use available data on oil and gas resources in 
        areas offshore of Mexico and Canada that will provide 
        information on trends of oil and gas accumulation in 
        areas of the OCS;
          [(2) use any available technology, except drilling, 
        but including 3-D seismic technology to obtain accurate 
        resource estimates;
          [(3) analyze how resource estimates in OCS areas have 
        changed over time in regards to gathering geological 
        and geophysical data, initial exploration, or full 
        field development, including areas such as the 
        deepwater and subsalt areas in the Gulf of Mexico;
          [(4) estimate the effect that understated oil and gas 
        resource inventories have on domestic energy 
        investments; and
          [(5) identify and explain how legislative, 
        regulatory, and administrative programs or processes 
        restrict or impede the development of identified 
        resources and the extent that they affect domestic 
        supply, such as moratoria, lease terms and conditions, 
        operational stipulations and requirements, approval 
        delays by the Federal Government and coastal States, 
        and local zoning restrictions for onshore processing 
        facilities and pipeline landings.
  [(b) Reports.--The Secretary shall submit a report to 
Congress on the inventory of estimates and the analysis of 
restrictions or impediments, together with any recommendations, 
within 6 months of the date of enactment of the section. The 
report shall be publicly available and updated at least every 5 
years.]

Subtitle F--Access to Federal Lands

           *       *       *       *       *       *       *


SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL 
                    FUELS.

  (a) * * *

           *       *       *       *       *       *       *

  [(o) Royalty Rates for Leases.--The Secretary shall establish 
royalties, fees, rentals, bonus, or other payments for leases 
under this section that shall--
          [(1) encourage development of the oil shale and tar 
        sands resource; and
          [(2) ensure a fair return to the United States.]

           *       *       *       *       *       *       *

                              ----------                              


              MINING AND MINERAL RESOURCES INSTITUTES ACT

                          (Public Law 98-409)

   AN ACT To establish a State Mining and Mineral Resources Research 
               Institute program, and for other purposes.

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

            [AUTHORIZATION OF STATE ALLOTMENTS TO INSTITUTES

  [Section 1. (a)(1) There are authorized to be appropriated to 
the Secretary of the Interior (hereafter in this Act referred 
to as the ``Secretary'') funds adequate to provide for each 
participating State $400,000 for each of the fiscal years 
ending September 30, 1990, through September 30, 1994, to 
assist the States in carrying on the work of a competent and 
qualified mining and mineral resources research institute or 
center (hereafter in this Act referred to as the ``institute'') 
at one public college or university in the State which meets 
the eligibility criteria established in section 10.
  [(2)(A) Funds appropriated under this section shall be made 
available for grants to be matched on a basis of no less than 2 
non-Federal dollars for each Federal dollar.
  [(B) If there is more than one such eligible college or 
university in a State, funds appropriated under this Act shall, 
in the absence of a designation to the contrary by act of the 
legislature of the State, be granted to one such college or 
university designated by the Governor of the State.
  [(C) Where a State does not have a public college or 
university eligible under section 10, the Committee on Mining 
and Mineral Resources Research established in section 9 
(hereafter in this Act referred to as the ``Committee'') may 
allocate the State's allotment to one private college or 
university which it determines to be eligible under such 
section.
  [(b) It shall be the duty of each institute to plan and 
conduct, or arrange for a component or components of the 
college or university with which it is affiliated to conduct 
research, investigations, demonstrations, and experiments of 
either, or both, a basic or practical nature in relation to 
mining and mineral resources, and to provide for the training 
of mineral engineers and scientists through such research, 
investigations, demonstrations, and experiments. The subject of 
such research, investigation, demonstration, experiment, and 
training may include exploration; extraction; processing; 
development; production of fuel and nonfuel mineral resources; 
mining and mineral technology; supply and demand for minerals; 
conservation and best use of available supplies of minerals; 
the economic, legal, social, engineering, recreational, 
biological, geographic, ecological, and other aspects of 
mining, mineral resources, and mineral reclamation. Such 
research, investigation, demonstration, experiment, and 
training shall consider the interrelationship with the natural 
environment, the varying conditions and needs of the respective 
States, and mining and mineral resources research projects 
being conducted by agencies of the Federal and State 
governments and other institutes.

                     [RESEARCH FUNDS TO INSTITUTES

  [Sec. 2. (a) There is authorized to be appropriated to the 
Secretary not more than $15,000,000 for each of the fiscal 
years ending September 30, 1990, through September 30, 1994, 
which shall remain available until expended. Such funds when 
appropriated shall be made available to an institute or to 
institutes participating in a generic mineral technology center 
to meet the necessary expenses for purposes of--
          [(1) specific mineral research and demonstration 
        projects of broad application, which could not 
        otherwise be undertaken, including the expenses of 
        planning and coordinating regional mining and mineral 
        resources research projects by two or more institutes; 
        and
          [(2) research into any aspects of mining and mineral 
        resources problems related to the mission of the 
        Department of the Interior, which are deemed by the 
        Committee to be desirable and are not otherwise being 
        studied.
There is authorized to be appropriated to the Secretary not 
more than $1,800,000 for each of the fiscal years after fiscal 
year 1996 to be made available by the Secretary to an institute 
or institutes experienced in investigating the continental 
shelf regions of the United States, the deep seabed and near 
shore environments of islands, and the Arctic and cold water 
regions as a source for nonfuel minerals. Such funds are to be 
used by the institute or institutes to assist in developing 
domestic technological capabilities required for the location 
of, and the efficient and environmentally sound recovery of, 
minerals (other than oil and gas) from the Nation's shallow and 
deep seabed.
  [(b) Each application for funds under subsection (a) of this 
section shall state, among other things, the nature of the 
project to be undertaken; the period during which it will be 
pursued; the qualifications of the personnel who will direct 
and conduct it; the estimated costs; the importance of the 
project to the Nation, region, or State concerned; its relation 
to other known research projects theretofore pursued or being 
pursued; the extent to which the proposed project will provide 
opportunity for the training of mining and mineral engineers 
and scientists; and the extent of participation by 
nongovernmental sources in the project.
  [(c) The Committee shall review all such funding applications 
and recommend to the Secretary the use of the institutes, 
insofar as practicable, to perform special research. 
Recommendations shall be made without regard to the race, 
religion, or sex of the personnel who will conduct and direct 
the research, and on the basis of the facilities available in 
relation to the particular needs of the research project; 
special geographic, geologic, or climatic conditions within the 
immediate vicinity of the institute; any other special 
requirements of the research project; and the extent to which 
such project will provide an opportunity for training 
individuals as mineral engineers and scientists. The Committee 
shall recommend to the Secretary the designation and 
utilization of such portions of the funds authorized to be 
appropriated by this section as it deems appropriate for the 
purpose of providing scholarships, graduate fellowships, and 
postdoctoral fellowships.
  [(d) No funds shall be made available under subsection (a) of 
this section except for a project approved by the Secretary and 
all funds shall be made available upon the basis of merit of 
the project, the need for the knowledge which it is expected to 
produce when completed, and the opportunity it provides for the 
training of individuals as mineral engineers and scientists.
  [(e) No funds made available under this section shall be 
applied to the acquisition by purchase or lease of any land or 
interests therein, or the rental, purchase, construction, 
preservation, or repair of any building.

                           [FUNDING CRITERIA

  [Sec. 3. (a) Funds available to institutes under sections 1 
and 2 of this Act shall be paid at such times and in such 
amounts during each fiscal year as determined by the Secretary, 
and upon vouchers approved by him. Each institute shall--
          [(1) set forth its plan to provide for the training 
        of individuals as mineral engineers and scientists 
        under a curriculum appropriate to the field of mineral 
        resources and mineral engineering and related fields;
          [(2) set forth policies and procedures which assure 
        that Federal funds made available under this Act for 
        any fiscal year will supplement and, to the extent 
        practicable, increase the level of funds that would, in 
        the absence of such Federal funds, be made available 
        for purposes of this Act, and in no case supplant such 
        funds; and
          [(3) have an officer appointed by its governing 
        authority who shall receive and account for all funds 
        paid under the provisions of this Act and shall make an 
        annual report to the Secretary on or before the first 
        day of September of each year, on work accomplished and 
        the status of projects underway, together with a 
        detailed statement of the amounts received under any 
        provisions of this Act during the preceding fiscal 
        year, and of its disbursements on schedules prescribed 
        by the Secretary.
If any of the funds received by the authorized receiving 
officer of any institute under the provisions of this Act shall 
by any action or contingency be found by the Secretary to have 
been improperly diminished, lost, or misapplied, such funds 
shall be replaced by the State concerned and until so replaced 
no subsequent appropriation shall be allotted or paid to any 
institute of such State.
  [(b) The institutes are authorized and encouraged to plan and 
conduct programs under this Act in cooperation with each other 
and with such other agencies and individuals as may contribute 
to the solution of the mining and mineral resources problems 
involved. Moneys appropriated pursuant to this Act shall be 
available for paying the necessary expenses of planning, 
coordinating, and conducting such cooperative research.

                        [DUTIES OF THE SECRETARY

  [Sec. 4. (a) The Secretary, acting through the Director of 
the Bureau of Mines, shall administer this Act and, after full 
consultation with other interested Federal agencies, shall 
prescribe such rules and regulations as may be necessary to 
carry out its provisions. The Secretary shall furnish such 
advice and assistance as will best promote the purposes of this 
Act, shall participate in coordinating research initiated under 
this Act by the institutes, shall indicate to them such lines 
of inquiry that seem most important, and shall encourage and 
assist in the establishment and maintenance of cooperation by 
and between the institutes and between them and other research 
organizations, the United States Department of the Interior, 
and other Federal establishments.
  [(b) On or before the first day of July in each year 
beginning after the date of enactment of this Act, the 
Secretary shall ascertain whether the requirements of section 
3(a) have been met as to each institute and State.
  [(c) The Secretary shall make an annual report to the 
Congress of the receipts, expenditures, and work of the 
institutes in all States under the provisions of this Act. The 
Secretary's report shall indicate whether any portion of an 
appropriation available for allotment to any State has been 
withheld and, if so, the reason therefor.

                               [AUTONOMY

  [Sec. 5. Nothing in this Act shall be construed to impair or 
modify the legal relationship existing between any of the 
colleges or universities under whose direction an institute is 
established and the government of the State in which it is 
located, and nothing in this Act shall in any way be construed 
to authorize Federal control or direction of education at any 
college or university.

                       [MISCELLANEOUS PROVISIONS

  [Sec. 6. (a) The Secretary shall obtain the continuing advice 
and cooperation of all agencies of the Federal Government 
concerned with mining and mineral resources, of State and local 
governments, and of private institutions and individuals to 
assure that the programs authorized by this Act will supplement 
and not be redundant with respect to established mining and 
minerals research programs, and to stimulate research in 
otherwise neglected areas, and to contribute to a comprehensive 
nationwide program of mining and minerals research, with due 
regard for the protection and conservation of the environment. 
The Secretary shall make generally available information and 
reports on projects completed, in progress, or planned under 
the provisions of this Act, in addition to any direct 
publication of information by the institutes themselves.
  [(b) Nothing in this Act is intended to give or shall be 
construed as giving the Secretary any authority over mining and 
mineral resources research conducted by any agency of the 
Federal Government, or as repealing or diminishing existing 
authorities or responsibilities of any agency of the Federal 
Government to plan and conduct, contract for, or assist in 
research in its area of responsibility and concern with regard 
to mining and mineral resources.
  [(c) No research, demonstration, or experiment shall be 
carried out under this Act by an institute financed by grants 
under this Act, unless all uses, products, processes, patents, 
and other developments resulting therefrom, with such exception 
or limitation, if any, as the Secretary may find necessary in 
the public interest, are made available promptly to the general 
public. Patentable inventions shall be governed by the 
provisions of Public Law 96-517. Nothing contained in this 
section shall deprive the owner of any background patent 
relating to any such activities of any rights which that owner 
may have under that patent.
  [(d)(1) There is authorized to be appropriated to the 
Secretary $450,000 for each of the fiscal years ending 
September 30, 1990, through September 30, 1994, to administer 
this Act. No funds may be withheld by the Secretary for 
administrative expenses from those authorized to be 
appropriated by sections 1 and 2 of this Act.
  [(2) There are authorized to be appropriated to the Secretary 
such sums as are necessary for the printing and publishing of 
the results of activities carried out by institutes and generic 
mineral technology centers under this Act, but such 
appropriations shall not exceed $550,000 in any single fiscal 
year.

                         [CENTER FOR CATALOGING

  [Sec. 7. The Secretary shall establish a center for 
cataloging current and projected scientific research in all 
fields of mining and mineral resources. Each Federal agency 
doing mining and mineral resources research shall cooperate by 
providing the cataloging center with information on work 
underway or scheduled by it. The cataloging center shall 
classify and maintain for public use a catalog of mining and 
mineral resources research and investigation projects in 
progress or scheduled by all Federal agencies and by such non-
Federal agencies of government, colleges, universities, private 
institutions, firms, and individuals as may make such 
information available.

                        [INTERAGENCY COOPERATION

  [Sec. 8. The President shall, by such means as he deems 
appropriate, clarify agency responsibility for Federal mining 
and mineral resources research and provide for interagency 
coordination of such research, including the research 
authorized by this Act. Such coordination shall include--
          [(1) continuing review of the adequacy of the 
        Government-wide program in mining and mineral resources 
        research;
          [(2) identification and elimination of duplication 
        and overlap between agency programs;
          [(3) identification of technical needs in various 
        mining and mineral resources research categories;
          [(4) recommendations with respect to allocation of 
        technical effort among Federal agencies;
          [(5) review of technical manpower needs, and findings 
        concerning management policies to improve the quality 
        of the Government-wide research effort; and
          [(6) actions to facilitate interagency communication 
        at management levels.

                               [COMMITTEE

  [Sec. 9. (a) The Secretary shall appoint a Committee on 
Mining and Mineral Resources Research composed of--
          [(1) the Assistant Secretary of the Interior 
        responsible for minerals and mining research, or his 
        delegate;
          [(2) the Director, Bureau of Mines, or his delegate;
          [(3) the Director, United States Geological Survey, 
        or his delegate;
          [(4) the Director of the National Science Foundation, 
        or his delegate;
          [(5) the President, National Academy of Sciences, or 
        his delegate;
          [(6) the President, National Academy of Engineering, 
        or his delegate; and
          [(7) not more than 7 other persons who are 
        knowledgeable in the fields of mining and mineral 
        resources research, including two university 
        administrators involved in the conduct of programs 
        authorized by this Act, 3 representatives from the 
        mining industry, a working miner, and a representative 
        from the conservation community. In making these 7 
        appointments, the Secretary shall consult with 
        interested groups.
  [(b) The Committee shall consult with, and make 
recommendations to, the Secretary on all matters relating to 
mining and mineral resources research and the determinations 
that are required to be made under this Act. The Secretary 
shall consult with, and consider recommendations of, such 
Committee in such matters.
  [(c) Committee members, other than officers or employees of 
Federal, State, or local governments, shall be, for each day 
(including traveltime) during which they are performing 
Committee business, paid at a rate fixed by the Secretary but 
not excess of the daily equivalent of the maximum rate of pay 
for grade GS-18 of the General Schedule under section 5332 of 
title 5 of the United States Code, and shall be fully 
reimbursed for travel, subsistence, and related expenses.
  [(d) The Committee shall be jointly chaired by the Assistant 
Secretary of the Interior responsible for minerals and mining 
and a person to be elected by the Committee from among the 
members referred to in paragraphs (5), (6), and (7) of 
subsection (a) of this section.
  [(e) The Committee shall develop a national plan for research 
in mining and mineral resources, considering ongoing efforts in 
the universities, the Federal Government, and the private 
sector, and shall formulate and recommend a program to 
implement the plan utilizing resources provided for under this 
Act. The Committee shall submit such plan to the Secretary, the 
President, and the Congress on or before March 1, 1986, and 
shall submit an annual update of such plan by January 15 of 
each calendar year.
  [(f) Section 10 of the Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to the Committee.

                         [ELIGIBILITY CRITERIA

  [Sec. 10. (a) The Committee shall determine the eligibility 
of a college or university to participate as a mining and 
mineral resources research institute under this Act using 
criteria which include--
          [(1) the presence of a substantial program of 
        graduate instruction and research in mining or mineral 
        extraction or closely related fields which has a 
        demonstrated history of achievement;
          [(2) evidence of institutional commitment for the 
        purposes of this Act;
          [(3) evidence that such institution has or can obtain 
        significant industrial cooperation in activities within 
        the scope of this Act; and
          [(4) the presence of an engineering program in mining 
        or minerals extraction that is accredited by the 
        Accreditation Board for Engineering and Technology, or 
        evidence of equivalent institutional capability as 
        determined by the Committee.
  [(b)(1) Notwithstanding the provisions of subsection (a), 
those colleges or universities which, on the date of enactment 
of the Mining and Mineral Resources Research Institute 
Amendments of 1988, have a mining or mineral resources research 
institute program which has been found to be eligible pursuant 
to this Act shall continue to be eligible subject to review at 
least once during the period authorized by the Mining and 
Mineral Resources Research Institute Amendments of 1988, under 
the provisions of subsection (a). The results of such review 
shall be submitted by January 15, 1992, pursuant to section 
11(a)(2) of the Mining and Mineral Resources Research Institute 
Amendments of 1988.
  [(2) Generic mineral technology centers established by the 
Secretary under this Act are to be composed of institutes 
eligible pursuant to subsection (a). Existing generic mineral 
technology centers shall continue to be eligible under this Act 
subject to at least one review prior to January 15, 1992, 
pursuant to section 11(a)(3) of the Mining and Mineral 
Resources Research Institute Amendments of 1988.

[SEC. 11. SHORT TITLE.

  [This Act may be cited as the ``Mining and Mineral Resources 
Institutes Act''.

[SEC. 12. STRATEGIC RESOURCES GENERIC MINERAL TECHNOLOGY CENTER.

  [(a) Establishment.--The Secretary of Interior is authorized 
and directed to establish a Strategic Resources Mineral 
Technology Center (hereinafter referred to as the ``center'') 
for the purpose of improving existing, and developing new, 
technologies that will decrease the dependence of the United 
States on supplies of strategic and critical minerals.
  [(b) Functions.--The center shall--
          [(1) provide for studies and technology development 
        in the areas of mineral extraction and refining 
        processes, product substitution and conservation of 
        mineral resources through recycling and advanced 
        processing and fabrication methods;
          [(2) identify new deposits of strategic and critical 
        mineral resources; and
          [(3) facilitate the transfer of information, studies, 
        and technologies developed by the center to the private 
        sector.
  [(c) Criteria.--The Secretary shall establish the center 
referred to in subsection (a) at a university that--
          [(1) does not currently host a generic mineral 
        technology center;
          [(2) has established advanced degree programs in 
        geology and geological engineering, and metallurgical 
        and mining engineering;
          [(3) has expertise in materials and advanced 
        processing research; and
          [(4) is located west of the 100th meridian.
  [(d) Authorization of Appropriations.--There is authorized to 
be appropriated such sums as may be necessary to carry out this 
section.]

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Energy and Mineral Schools 
Reinvestment Act''.

SEC. 2. POLICY.

  It is the policy of the United States to maintain the human 
capital needed to preserve and foster the economic, energy, and 
mineral resources security of the United States. The petroleum 
and mining engineering programs and the applied geology and 
geophysics programs at State chartered schools, universities, 
and institutions that produce human capital are national assets 
and should be assisted with Federal funds to ensure their 
continued health and existence.

SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING PETROLEUM AND 
                    MINING ENGINEERING EDUCATION PROGRAMS.

  (a) Using the funds in the Federal Energy And Mineral 
Resources Professional Development Fund, the Secretary of the 
Interior (in this Act referred to as the ``Secretary'') shall 
provide funds to each historic and existing State-chartered 
recognized petroleum or mining school to assist such schools, 
universities, and institutions in maintaining programs in 
petroleum, mining, and mineral engineering education and 
research. All funds shall be directed only to these programs 
and shall be subject to the conditions of this section. Such 
funds shall not be less than 33 percent of the annual outlay of 
funds under this Act.
  (b) In this Act the term ``historic and existing State-
chartered recognized petroleum or mining school'' means a 
school, university, or educational institution with the 
presence of an engineering program meeting the specific program 
criteria, established by the member societies of ABET, Inc., 
for petroleum, mining, or mineral engineering and that is 
accredited on the date of enactment of the Deep Ocean Energy 
Resources Act of 2006 by ABET, Inc.
  (c) It shall be the duty of each school, university, or 
institution receiving funds under this section to provide for 
and enhance the training of undergraduate and graduate 
petroleum, mining, and mineral engineers through research, 
investigations, demonstrations, and experiments. All such work 
shall be carried out in a manner that will enhance 
undergraduate education.
  (d) Each school, university, or institution receiving funds 
under this Act shall maintain the program for which the funds 
are provided for 10 years after the date of the first receipt 
of such funds and take steps agreed to by the Secretary to 
increase the number of undergraduate students enrolled in and 
completing the programs of study in petroleum, mining, and 
mineral engineering.
  (e) The research, investigation, demonstration, experiment, 
and training authorized by this section may include development 
and production of conventional and non-conventional fuel 
resources, the production of metallic and non-metallic mineral 
resources including industrial mineral resources, and the 
production of stone, sand, and gravel. In all cases the work 
carried out with funds made available under this Act shall 
include a significant opportunity for participation by 
undergraduate students.
  (f) Research funded by this Act related to energy and mineral 
resource development and production may include studies of 
petroleum, mining, and mineral extraction and immediately 
related beneficiation technology; mineral economics, 
reclamation technology and practices for active operations, and 
the development of re-mining systems and technologies to 
facilitate reclamation that fosters the ultimate recovery of 
resources at abandoned petroleum, mining, and aggregate 
production sites.
  (g) Grants for basic science and engineering studies and 
research shall not require additional participation by funding 
partners. Grants for studies to demonstrate the proof of 
concept for science and engineering or the demonstration of 
feasibility and implementation shall include participation by 
industry and may include funding from other Federal agencies.
  (h)(1) No funds made available under this section shall be 
applied to the acquisition by purchase or lease of any land or 
interests therein, or the rental, purchase, construction, 
preservation, or repair of any building.
  (2) Funding made available under this section may be used 
with the express approval of the Secretary for proposals that 
will provide for maintaining or upgrading of existing 
laboratories and laboratory equipment. Funding for such 
maintenance shall not be used for university overhead expenses.
  (3) Funding made available under this Act may be used for 
maintaining and upgrading mines and oil and gas drilling rigs 
owned by a school, university, or institution described in this 
section that are used for undergraduate and graduate training 
and worker safety training. All requests for funding such mines 
and oil and gas drilling rigs must demonstrate that they have 
been owned by the school, university, or institution for 5 
years prior to the date of enactment of the Deep Ocean Energy 
Resources Act of 2006 and have been actively used for 
instructional or training purposes during that time.
  (4) Any funding made available under this section for 
research, investigation, demonstration, experiment, or training 
shall not be used for university overhead charges in excess of 
10 percent of the amount authorized by the Secretary.

SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING PROGRAMS.

  A school, university, or educational institution that 
formerly met the requirements of section 3(b) immediately 
before the date of the enactment of the Deep Ocean Energy 
Resources Act of 2006, or that seeks to establish a new program 
described in section 3(b), shall be eligible for funding under 
this Act only if it--
          (1) establishes a petroleum, mining, or mineral 
        engineering program that meets the specific program 
        criteria and is accredited as such by ABET, Inc.;
          (2) agrees to the conditions of subsections (c) 
        through (h) of section 3 and the Secretary, as advised 
        by the Committee established by section 11, determines 
        that the program will strengthen and increase the 
        number of nationally available, well- qualified faculty 
        members in petroleum, mining, and mineral engineering; 
        and
          (3) agrees to maintain the accredited program for 10 
        years after the date of the first receipt of funds 
        under this Act.

SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING SCHOOLS.

  Where appropriate, the Secretary may make funds available to 
consortia of schools, universities, or institutions described 
in sections 3, 4, and 6, including those consortia that include 
schools, universities, or institutions that are ineligible for 
funds under this Act if those schools, universities, or 
institutions, respectively, have skills, programs, or 
facilities specifically identified as needed by the consortia 
to meet the necessary expenses for purposes of--
          (1) specific energy and mineral research projects of 
        broad application that could not otherwise be 
        undertaken, including the expenses of planning and 
        coordinating regional petroleum, geothermal, mining, 
        and mineral engineering or beneficiation projects by 
        two or more schools; and
          (2) research into any aspects of petroleum, 
        geothermal, mining, or mineral engineering or 
        beneficiation problems, including but not limited to 
        exploration, that are related to the mission of the 
        Department of the Interior and that are considered by 
        the Committee to be desirable.

SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL RESOURCE PROGRAMS 
                    IN PETROLEUM AND MINERAL EXPLORATION GEOLOGY, 
                    PETROLEUM GEOPHYSICS, OR MINING GEOPHYSICS.

  (a) Twenty percent of the annual outlay of funds under this 
Act may be granted to schools, universities, and institutions 
other than those described in sections 3 and 4.
  (b) The Secretary, as advised by the Committee established by 
section 11, shall determine the eligibility of a college or 
university to receive funding under this Act using criteria 
that include--
          (1) the presence of a substantial program of 
        undergraduate and graduate geoscience instruction and 
        research in one or more of the following specialties: 
        petroleum geology, geothermal geology, mineral 
        exploration geology, economic geology, industrial 
        minerals geology, mining geology, petroleum geophysics, 
        mining geophysics, geological engineering, or 
        geophysical engineering that has a demonstrated history 
        of achievement;
          (2) evidence of institutional commitment for the 
        purposes of this Act that includes a significant 
        opportunity for participation by undergraduate students 
        in research;
          (3) evidence that such school, university, or 
        institution has or can obtain significant industrial 
        cooperation in activities within the scope of this Act;
          (4) agreement by the school, university, or 
        institution to maintain the programs for which the 
        funding is sought for the 10-year period beginning on 
        the date the school, university, or institution first 
        receives such funds; and
          (5) requiring that such funding shall be for the 
        purposes set forth in subsections (c) through (h) of 
        section 3 and subject to the conditions set forth in 
        section 3(h).

SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.

  (a) The Secretary shall utilize 19 percent of the annual 
outlay of funds under this Act for the purpose of providing 
merit-based scholarships for undergraduate education, graduate 
fellowships, and postdoctoral fellowships.
  (b) In order to receive a scholarship or a graduate 
fellowship, an individual student must be a lawful permanent 
resident of the United States or a United States citizen and 
must agree in writing to complete a course of studies and 
receive a degree in petroleum, mining, or mineral engineering, 
petroleum geology, geothermal geology, mining and economic 
geology, petroleum and mining geophysics, or mineral economics.
  (c) The regulations required by section 9 shall require that 
an individual, in order to retain a scholarship or graduate 
fellowship, must continue in one of the course of studies 
listed in subsection (b) of this section, must remain in good 
academic standing, as determined by the school, institution, or 
university and must allow for reinstatement of the scholarship 
or graduate fellowship by the Secretary, upon the 
recommendation of the school or institution. Such regulations 
may also provide for recovery of funds from an individual who 
fails to complete any of the courses of study listed in 
subsection (b) of this section after notice that such 
completion is a requirement of receipt funding under this Act.

SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.

  (a) Each application for funds under this Act shall state, 
among other things, the nature of the project to be undertaken; 
the period during which it will be pursued; the qualifications 
of the personnel who will direct and conduct it; the estimated 
costs; the importance of the project to the Nation, region, or 
States concerned; its relation to other known research projects 
theretofore pursued or being pursued; the extent to which the 
proposed project will maximize the opportunity for the training 
of undergraduate petroleum, mining, and mineral engineers; 
geologists and geophysicists; and the extent of participation 
by nongovernmental sources in the project.
  (b) No funds shall be made available under this Act except 
for a project approved by the Secretary. All funds shall be 
made available upon the basis of merit of the project, the need 
for the knowledge that it is expected to produce when 
completed, and the opportunity it provides for the 
undergraduate training of individuals as petroleum, mining, and 
mineral engineers, geologists, and geophysicists.
  (c) Funds available under this Act shall be paid at such 
times and in such amounts during each fiscal year as determined 
by the Secretary, and upon vouchers approved by the Secretary. 
Each school, university, or institution that receives funds 
under this Act shall--
          (1) establish its plan to provide for the training of 
        individuals as petroleum, mining, and mineral 
        engineers, geologists, and geophysicists under a 
        curriculum appropriate to the field of mineral 
        resources and mineral engineering and related fields;
          (2) establish policies and procedures that assure 
        that Federal funds made available under this Act for 
        any fiscal year will supplement and, to the extent 
        practicable, increase the level of funds that would, in 
        the absence of such Federal funds, be made available 
        for purposes of this Act, and in no case supplant such 
        funds; and
          (3) have an officer appointed by its governing 
        authority who shall receive and account for all funds 
        paid under this Act and shall make an annual report to 
        the Secretary on or before the first day of September 
        of each year, on work accomplished and the status of 
        projects underway, together with a detailed statement 
        of the amounts received under this Act during the 
        preceding fiscal year, and of its disbursements on 
        schedules prescribed by the Secretary.
  (d) If any of the funds received by the authorized receiving 
officer of a program under this Act are found by the Secretary 
to have been improperly diminished, lost, or misapplied, such 
funds shall be recovered by the Secretary.
  (e) Schools, universities, and institutions receiving funds 
under this Act are authorized and encouraged to plan and 
conduct programs under this Act in cooperation with each other 
and with such other agencies, business enterprises and 
individuals.

SEC. 9. DUTIES OF SECRETARY.

  (a) The Secretary, acting through the Assistant Secretary for 
Land and Minerals Management, shall administer this Act and 
shall prescribe such rules and regulations as may be necessary 
to carry out its provisions not later than 1 year after the 
enactment of the Deep Ocean Energy Resources Act of 2006.
  (b)(1) There is established in the Department of the 
Interior, under the supervision of the Assistant Secretary for 
Land and Minerals Management, an office to be known as the 
Office of Petroleum and Mining Schools (hereafter in this Act 
referred to as the ``Office'') to administer the provisions of 
this Act. There shall be a Director of the Office who shall be 
a member of the Senior Executive Service. The position of the 
Director shall be allocated from among the existing Senior 
Executive Service positions at the Department of the Interior 
and shall be a career reserved position as defined in section 
3132(a)(8) of title 5, United States Code.
  (2) The Director is authorized to appoint a Deputy Director 
and to employ such officers and employees as may be necessary 
to enable the Office to carry out its functions, not to exceed 
fifteen. Such appointments shall be made from existing 
positions at the Department of the Interior, and shall be 
subject to the provisions of title 5, United States Code, 
governing appointments in the competitive service. Such 
positions shall be paid in accordance with the provisions of 
chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates.
  (3) In carrying out his or her functions, the Director shall 
assist and advise the Secretary and the Committee established 
by section 11 of this Act by--
          (A) providing professional and administrative staff 
        support for the Committee including recordkeeping and 
        maintaining minutes of all Committee and subcommittee 
        meetings;
          (B) coordinating the activities of the Committee with 
        Federal agencies and departments, and the schools, 
        universities, and institutions to which funds are 
        provided under this Act;
          (C) maintaining accurate records of funds disbursed 
        for all scholarships, fellowships, research grants, and 
        grants for career technical education purposes;
          (D) preparing any regulations required to implement 
        this Act;
          (E) conducting site visits at schools, universities, 
        and institutions receiving funding under this Act; and
          (F) serving as a central repository for reports and 
        clearing house for public information on research 
        funded by this Act.
  (4) The Director or an employee of the Office shall be 
present at each meeting of the Committee established by section 
11 or a subcommittee of such Committee.
  (5) The Director is authorized to contract with public or 
private agencies, institutions, and organizations and with 
individuals without regard to section 3324(a) and (b) of title 
31, United States Code, and section 5 of title 41, United 
States Code, in carrying out his or her functions.
  (6) As needed the Director shall ascertain whether the 
requirements of this Act have been met by schools, 
universities, institutions, and individuals, including the 
payment of any revenues derived from patents into the fund 
created by section 23(a) of this Act as required by section 
10(d).
  (c) The Secretary, acting through the Office of Petroleum and 
Mining Schools, shall furnish such advice and assistance as 
will best promote the purposes of this Act, shall participate 
in coordinating research, investigations, demonstrations, and 
experiments initiated under this Act, shall indicate to 
schools, universities, and institutions receiving funds under 
this Act such lines of inquiry that seem most important, and 
shall encourage and assist in the establishment and maintenance 
of cooperation between such schools, universities, and 
institutions, other research organizations, the Department of 
the Interior, and other Federal agencies.
  (d) The Secretary shall establish procedures--
          (1) to ensure that each employee and contractor of 
        the Office established by this section and each member 
        of the committee established by section 11 of this Act 
        shall disclose to the Secretary any financial interests 
        in or financial relationships with schools, 
        universities, institutions or individuals receiving 
        funds, scholarships or fellowships under this Act;
          (2) to require any employee, contractor, or member of 
        the committee with a financial relationship disclosed 
        under paragraph (1) to recuse themselves from--
                  (A) any recommendation or decision regarding 
                the awarding of funds, scholarships or 
                fellowships; or
                  (B) any review, report, analysis or 
                investigation regarding compliance with the 
                provisions of this Act by a school, university, 
                institution or any individual.
  (e) On or before the first day of July of each year beginning 
after the date of enactment of this sentence, schools, 
universities, and institutions receiving funds under this Act 
shall certify compliance with this Act and upon request of the 
Director of the office established by this section provide 
documentation of such compliance.
  (f) An individual granted a scholarship or fellowship with 
funds provided under this Act shall through their respective 
school, university, or institution, advise the Director of the 
office established by this Act of progress towards completion 
of the course of studies and upon the awarding of the degree 
within 30 days after the award.
  (g) The regulations required by this section shall include a 
preference for veterans and service members who have received 
or will receive either the Afghanistan Campaign Medal or the 
Iraq Campaign Medal as authorized by Public Law 108-234, and 
Executive Order 13363.

SEC. 10. COORDINATION.

  (a) Nothing in this Act shall be construed to impair or 
modify the legal relationship existing between any of the 
schools, universities, and institutions under whose direction a 
program is established with funds provided under this Act and 
the government of the State in which it is located. Nothing in 
this Act shall in any way be construed to authorize Federal 
control or direction of education at any school, university, or 
institution.
  (b) The programs authorized by this Act are intended to 
enhance the Nation's petroleum, mining, and mineral engineering 
education programs and to enhance educational programs in 
petroleum and mining exploration and to increase the number of 
individuals enrolled in and completing these programs. To 
achieve this intent, the Secretary and the Committee 
established by section 11 shall receive the continuing advice 
and cooperation of all agencies of the Federal Government 
concerned with the identification, exploration, and development 
of energy and mineral resources.
  (c) Nothing in this Act is intended to give or shall be 
construed as giving the Secretary any authority over mining and 
mineral resources research conducted by any agency of the 
Federal Government, or as repealing or diminishing existing 
authorities or responsibilities of any agency of the Federal 
Government to plan and conduct, contract for, or assist in 
research in its area of responsibility and concern with regard 
to mining and mineral resources.
  (d) The schools, universities, and institutions receiving 
funding under this Act shall make detailed reports to the 
Office of Petroleum and Mining Schools on projects completed, 
in progress, or planned with funds provided under this Act. All 
such reports shall available to the public on not less than an 
annual basis through the Office of Petroleum and Mining 
Schools. All uses, products, processes, patents, and other 
developments resulting from any research, demonstration, or 
experiment funded in whole or in part under this Act shall be 
made available promptly to the general public, subject to 
exception or limitation, if any, as the Secretary may find 
necessary in the interest of national security. Schools, 
universities, and institutions receiving patents for inventions 
funded in whole or in part under this Act shall be governed by 
the applicable Federal law, except that one percent of gross 
annual revenues due to the holders of the patents that are 
derived from such patents shall be paid by the holders of the 
patents to the Federal Energy and Mineral Resources 
Professional Development Fund established by section 23(a) of 
the Deep Ocean Energy Resources Act of 2006.

SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL ENGINEERING AND 
                    ENERGY AND MINERAL RESOURCE EDUCATION.

  (a) The Secretary shall appoint a Committee on Petroleum, 
Mining, and Mineral Engineering and Energy and Mineral Resource 
Education composed of--
          (1) the Assistant Secretary of the Interior 
        responsible for land and minerals management and not 
        more than 16 other persons who are knowledgeable in the 
        fields of mining and mineral resources research, 
        including 2 university administrators one of whom shall 
        be from historic and existing petroleum and mining 
        schools; a community, technical, or tribal college 
        administrator; a career technical education educator; 6 
        representatives equally distributed from the petroleum, 
        mining, and aggregate industries; a working miner; a 
        working oilfield worker; a representative of the 
        Interstate Oil and Gas Compact Commission; a 
        representative from the Interstate Mining Compact 
        Commission; a representative from the Western Governors 
        Association; a representative of the State geologists, 
        and a representative of a State mining and reclamation 
        agency. In making these 16 appointments, the Secretary 
        shall consult with interested groups.
          (2) The Assistant Secretary for Land and Minerals 
        Management, in the capacity of the Chairman of the 
        Committee, may have present during meetings of the 
        Committee representatives of Federal agencies with 
        responsibility for energy and minerals resources 
        management, energy and mineral resource investigations, 
        energy and mineral commodity information, international 
        trade in energy and mineral commodities, mining safety 
        regulation and mine safety research, and research into 
        the development, production, and utilization of energy 
        and mineral commodities. These representatives shall 
        serve as technical advisors to the committee and shall 
        have no voting responsibilities.
  (b) The Committee shall consult with, and make 
recommendations to, the Secretary on all matters relating to 
funding energy and mineral resources research, the awarding of 
scholarships and fellowships and allocation of funding made 
under this Act. The Secretary shall consult with and carefully 
consider recommendations of the Committee in such matters.
  (c) Committee members, other than officers or employees of 
Federal, State, or local governments, shall be, for each day 
(including traveltime) during which they are performing 
Committee business, paid at a rate fixed by the Secretary but 
not in excess of the daily equivalent of the maximum rate of 
pay for level IV of the Executive Schedule under section 5136 
of title 5, United States Code, and shall be fully reimbursed 
for travel, subsistence, and related expenses.
  (d) The Committee shall be chaired by the Assistant Secretary 
of the Interior responsible for land and minerals management. 
There shall also be elected a Vice Chairman by the Committee 
from among the members referred to in this section. The Vice 
Chairman shall perform such duties as are determined to be 
appropriate by the committee, except that the Chairman of the 
Committee must personally preside at all meetings of the full 
Committee. The Committee may organize itself into such 
subcommittees as the Committee may deem appropriate.
  (e) Following completion of the report required by section 
385 of the Energy Policy Act of 2005, the Committee shall 
consider the recommendations of the report, ongoing efforts in 
the schools, universities, and institutions receiving funding 
under this Act, the Federal and State Governments, and the 
private sector, and shall formulate and recommend to the 
Secretary a national plan for a program utilizing the fiscal 
resources provided under this Act. The Committee shall submit 
such plan to the Secretary for approval. Upon approval, the 
plan shall guide the Secretary and the Committee in their 
actions under this Act.
  (f) Section 10 of the Federal Advisory Committee Act (5 
U.S.C. App. 2) shall not apply to the Committee.

SEC. 12. CAREER TECHNICAL EDUCATION.

  (a) Up to 25 percent of the annual outlay of funds under this 
Act may be granted to schools or institutions including, but 
not limited to, colleges, universities, community colleges, 
tribal colleges, technical institutes, and secondary schools, 
other than those described in sections 3, 4, 5, and 6.
  (b) The Secretary, as advised by the Committee established 
under section 11, shall determine the eligibility of a school 
or institution to receive funding under this section using 
criteria that include--
          (1) the presence of a State-approved program in 
        mining engineering technology, petroleum engineering 
        technology, industrial engineering technology, or 
        industrial technology that--
                  (A) is focused on technology and its use in 
                energy and mineral production and related 
                maintenance, operational safety, or energy 
                infrastructure protection and security;
                  (B) prepares students for advanced or 
                supervisory roles in the mining industry or the 
                petroleum industry; and
                  (C) grants either an associate's degree or a 
                baccalaureate degree in one of the subjects 
                listed in subparagraph (A);
          (2) the presence of a program, including a secondary 
        school vocational education program or career academy, 
        that provides training for individuals entering the 
        petroleum, coal mining, or mineral mining industries; 
        or
          (3) the presence of a State-approved program of 
        career technical education at a secondary school, 
        offered cooperatively with a community college in one 
        of the industrial sectors of--
                  (A) agriculture, forestry, or fisheries;
                  (B) utilities;
                  (C) construction;
                  (D) manufacturing; and
                  (E) transportation and warehousing.
  (c) Schools or institutions receiving funds under this 
section must show evidence of an institutional commitment for 
the purposes of career technical education and provide evidence 
that the school or institution has received or will receive 
industry cooperation in the form of equipment, employee time, 
or donations of funds to support the activities that are within 
the scope of this section.
  (d) Schools or institutions receiving funds under this 
section must agree to maintain the programs for which the 
funding is sought for a period of 10 years beginning on the 
date the school or institution receives such funds, unless the 
Secretary finds that a shorter period of time is appropriate 
for the local labor market or is required by State authorities.
  (e) Schools or institutions receiving funds under this 
section may combine these funds with State funds, and other 
Federal funds where allowed by law, to carry out programs 
described in this section, however the use of the funds 
received under this section must be reported to the Secretary 
not less than annually.

SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE ENHANCEMENT.

  (a) Physical Science, Engineering and Technology Scholarship 
Program.--
          (1) From the funds made available to carry out this 
        section, the Secretary shall use 30 percent of that 
        amount to provide financial assistance for education in 
        physical sciences, engineering, and engineering or 
        industrial technology and disciplines that, as 
        determined by the Secretary, are critical to the 
        functions of the Department of the Interior and are 
        needed in the Department of the Interior workforce.
          (2) The Secretary of the Interior may award a 
        scholarship in accordance with this section to a person 
        who--
                  (A) is a citizen of the United States;
                  (B) is pursuing an undergraduate or advanced 
                degree in a critical skill or discipline 
                described in paragraph (1) at an institution of 
                higher education; and
                  (C) enters into a service agreement with the 
                Secretary of the Interior as described in 
                subsection (e).
          (3) The amount of the financial assistance provided 
        under a scholarship awarded to a person under this 
        subsection shall be the amount determined by the 
        Secretary of the Interior as being necessary to pay all 
        educational expenses incurred by that person, including 
        tuition, fees, cost of books, laboratory expenses, and 
        expenses of room and board. The expenses paid, however, 
        shall be limited to those educational expenses normally 
        incurred by students at the institution of higher 
        education involved.
  (b) Scholarship Program for Students Attending Minority 
Serving Higher Education Institutions.--
          (1) From the funds made available to carry out this 
        section, the Secretary shall use 25 percent of that 
        amount to award scholarships in accordance with this 
        section to persons who--
                  (A) are enrolled in a Minority Serving Higher 
                Education Institutions.
                  (B) are citizens of the United States;
                  (C) are pursuing an undergraduate or advanced 
                degree in agriculture, engineering, engineering 
                or industrial technology, or physical sciences, 
                or other discipline that is found by the 
                Secretary to be critical to the functions of 
                the Department of the Interior and are needed 
                in the Department of the Interior workforce; 
                and
                  (D) enter into a service agreement with the 
                Secretary of the Interior as described in 
                subsection (e).
          (2) The amount of the financial assistance provided 
        under a scholarship awarded to a person under this 
        subsection shall be the amount determined by the 
        Secretary of the Interior as being necessary to pay all 
        educational expenses incurred by that person, including 
        tuition, fees, cost of books, laboratory expenses, and 
        expenses of room and board. The expenses paid, however, 
        shall be limited to those educational expenses normally 
        incurred by students at the institution of higher 
        education involved.
  (c) Education Partnerships With Minority Serving Higher 
Education Institutions.--
          (1) The Secretary shall require the director of each 
        Bureau and Office, to foster the participation of 
        Minority Serving Higher Education Institutions in any 
        regulatory activity, land management activity, science 
        activity, engineering or industrial technology 
        activity, or engineering activity carried out by the 
        Department of the Interior.
          (2) From the funds made available to carry out this 
        section, the Secretary shall use 25 percent of that 
        amount to support activities at Minority Serving Higher 
        Education Institutions by--
                  (A) funding faculty and students in these 
                institutions in collaborative research projects 
                that are directly related to the Departmental 
                or Bureau missions;
                  (B) allowing equipment transfer to Minority 
                Serving Higher Education Institutions as a part 
                of a collaborative research program directly 
                related to a Departmental or Bureau mission;
                  (C) allowing faculty and students at these 
                Minority Serving Higher Education Institutions 
                to participate Departmental and Bureau training 
                activities;
                  (D) funding paid internships in Departmental 
                and Bureau facilities for students at Minority 
                Serving Higher Education Institutions;
                  (E) assigning Departmental and Bureau 
                personnel to positions located at Minority 
                Serving Higher Educational Institutions to 
                serve as mentors to students interested in a 
                science, technology or engineering disciplines 
                related to the mission of the Department or the 
                Bureaus.
  (d) Kindergarten Through Grade Twelve Science Education 
Enhancement Program.--
          (1) From the funds made available to carry out this 
        section, the Secretary shall use 20 percent of that 
        amount to support activities designed to enhance the 
        knowledge and expertise of teachers of basic sciences, 
        mathematics, engineering and technology in Kindergarten 
        through Grade Twelve programs.
          (2) The Secretary is authorized to--
                  (A) support competitive events for students 
                under the supervision of teachers that are 
                designed to encourage student interest and 
                knowledge in science, engineering, technology 
                and mathematics;
                  (B) support competitively-awarded, peer-
                reviewed programs to promote professional 
                development for mathematics, science, 
                engineering and technology teachers who teach 
                in grades from kindergarten through grade 12;
                  (C) support summer internships at Department 
                facilities, for mathematics, science, 
                engineering and technology teachers who teach 
                in grades from kindergarten through grade 12; 
                and
                  (D) sponsor and assist in sponsoring 
                educational and teacher training activities in 
                subject areas identified as critical skills.
  (e) Service Agreement for Recipients of Assistance.--
          (1) To receive financial assistance under subsection 
        (a) and subsection (b) of this section--
                  (A) in the case of an employee of the 
                Department of the Interior, the employee shall 
                enter into a written agreement to continue in 
                the employment of the department for the period 
                of obligated service determined under paragraph 
                (2); and
                  (B) in the case of a person not an employee 
                of the Department of the Interior, the person 
                shall enter into a written agreement to accept 
                and continue employment in the Department of 
                the Interior for the period of obligated 
                service determined under paragraph (2).
          (2) For the purposes of this section, the period of 
        obligated service for a recipient of a scholarship 
        under this section shall be the period determined by 
        the Secretary of the Interior as being appropriate to 
        obtain adequate service in exchange for the financial 
        assistance provided under the scholarship. In no event 
        may the period of service required of a recipient be 
        less than the total period of pursuit of a degree that 
        is covered by the scholarship. The period of obligated 
        service is in addition to any other period for which 
        the recipient is obligated to serve in the civil 
        service of the United States.
          (3) An agreement entered into under this subsection 
        by a person pursuing an academic degree shall include 
        any terms and conditions that the Secretary of the 
        Interior determines necessary to protect the interests 
        of the United States or otherwise appropriate for 
        carrying out this section.
  (f) Refund for Period of Unserved Obligated Service.--
          (1) A person who voluntarily terminates service 
        before the end of the period of obligated service 
        required under an agreement entered into under 
        subsection (e) shall refund to the United States an 
        amount determined by the Secretary of the Interior as 
        being appropriate to obtain adequate service in 
        exchange for financial assistance.
          (2) An obligation to reimburse the United States 
        imposed under paragraph (1) is for all purposes a debt 
        owed to the United States.
          (3) The Secretary of the Interior may waive, in whole 
        or in part, a refund required under paragraph (1) if 
        the Secretary determines that recovery would be against 
        equity and good conscience or would be contrary to the 
        best interests of the United States.
          (4) A discharge in bankruptcy under title 11, United 
        States Code, that is entered less than five years after 
        the termination of an agreement under this section does 
        not discharge the person signing such agreement from a 
        debt arising under such agreement or under this 
        subsection.
  (g) Relationship to Other Programs.--The Secretary of the 
Interior shall coordinate the provision of financial assistance 
under the authority of this section with the provision of 
financial assistance under the authorities provided in this Act 
in order to maximize the benefits derived by the Department of 
Interior from the exercise of all such authorities.
  (h) Report.--Not later than September 1 of each year, the 
Secretary of the Interior shall submit to the Committee on 
Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate a report on the 
status of the assistance program carried out under this 
section. The report shall describe the programs within the 
Department designed to recruit and retain a workforce on a 
short-term basis and on a long-term basis.
  (i) Definitions.--As used in this section:
          (1) The term ``Minority Serving Higher Education 
        Institutions'' means a Hispanic-serving institution, 
        historically Black college or university, Alaska 
        Native-serving institution, or tribal college.
          (2) The term ``Hispanic-serving institution'' has the 
        meaning given the term in section 502(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1101a(a)).
          (3) The term ``historically Black college or 
        university'' has the meaning given the term ``part B 
        institution'' in section 322 of the Higher Education 
        Act of 1965 (20 U.S.C. 1061).
          (4) The term ``tribal college'' has the meaning given 
        the term ``tribally controlled college or university'' 
        in section 2(a) of the Tribally Controlled College 
        Assistance Act of 1978 (25 U.S.C. 1801(a)).
          (5) The term ``institution of higher education'' has 
        the meaning given such term in section 101 of the 
        Higher Education Act of 1965 (20 U.S.C. 1001).
          (6) The term ``Alaska Native-serving institution'' 
        has the meaning given the term in section 317 of the 
        Higher Education Act of 1965 (20 U.S.C. 1059d).
  (j) Funding.--The Secretary shall spend 3 percent of the 
annual outlay under this Act to implement this section not to 
exceed $10,000,000.
                              ----------                              


             SECTION 4 OF THE GEOTHERMAL STEAM ACT OF 1970

SEC. 4. LEASING PROCEDURES.

  (a) * * *

           *       *       *       *       *       *       *

  (h) Geothermal Resources Co-Produced With the Minerals.--Any 
person who holds a lease or who operates a cooperative or unit 
plan under the Mineral Leasing Act, in the absence of an 
existing lease for geothermal resources under this Act, shall 
upon notice to the Secretary have the right to utilize any 
geothermal resources co-produced with the minerals for which 
the lease was issued during the operation of that lease or 
cooperative or unit plan, for the generating of electricity to 
operate the lease. Any electricity that is produced in excess 
of that which is required to operate the lease and that is sold 
for purposes outside of the boundary of the lease shall be 
subject to the requirements of section 5.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 517 OF THE SURFACE MINING CONTROL AND RECLAMATION ACT OF 1977

                       INSPECTIONS AND MONITORING

  Sec. 517. (a) * * *

           *       *       *       *       *       *       *

  (i) Any person who provides the regulatory authority with a 
map under subsection (b)(1) shall not be liable to any other 
person in any way for the accuracy or completeness of any such 
map which was not prepared and certified by or on behalf of 
such person.

                            DISSENTING VIEWS

    We strongly oppose H.R. 4761, radical legislation which 
would jettison more than 25 years of laws and policies 
regarding management of national Outer Continental Shelf (OCS) 
lands and resources. H.R. 4761 is unnecessary, environmentally 
damaging, and fiscally irresponsible legislation which should 
be rejected by the House.
    A preliminary estimate by the Administration's Minerals 
Management Service (MMS) concluded that H.R. 4761 would add $69 
billion to the federal budget deficit over the first 15 years. 
[See: attached MMS letter dated June 21, 2006] And according to 
the prime sponsor of H.R. 4761, Louisiana alone would receive 
$2.6 billion annually and a total of $50 billion over the first 
thirty years of the legislation's implementation.
    In essence, H.R. 4761 would immediately cut in half the 
200-mile area in the Atlantic and Pacific coasts and in the 
Eastern Gulf of Mexico which has been protected by long-
standing Congressional moratoria and Presidential withdrawal 
from oil and gas leasing. H.R. 4761 would further abrogate 
Congress's powers by establishing a new, cumbersome state-
centric decision-making process that by design would encourage 
leasing and development of federal OCS lands and resources 
within 100 miles of coastal state boundaries.
    To entice and reward states which support offshore leasing, 
H.R. 4761 would establish a permanent revenue sharing 
entitlement program which would divert tens of billions of 
dollars of federal OCS revenues away from the Treasury. H.R. 
4761 would further add to the federal budget deficit by 
creating and funding several direct spending programs which are 
not subject to Congressional appropriations or sunsets and by 
an array of costly industry-friendly special interest 
provisions including royalty-reductions, lease buy-backs, and 
bans on new or increased fees.

  VAST AREAS OF THE OCS ARE CURRENTLY OPEN TO LEASING AND DEVELOPMENT

    The proponents of H.R. 4761 seek to create the specter 
that, unless more areas of the OCS are immediately opened to 
oil and gas leasing, U.S. oil and gas production will plunge 
and dire economic consequences will result. Opening the OCS 
moratoria areas, they also assert, will reduce oil and gas 
prices.
    In reality, the oil and gas industry has already been 
granted access to vast tracts of OCS lands and have explored or 
developed only a fraction of those assets. Under the Bush 
Administration--one of the most oil and gas friendly regimes in 
American history--the Department of the Interior has offered 
leases on over 267 million acres of the OCS and the industry 
has acquired leases for about 24 million acres. In total, over 
40 million acres of OCS lands are under industry lease and less 
than 7 million acres are in production. Moreover, according to 
the Mineral Management Service (MMS), the OCS lands currently 
available for leasing contain about 80 percent of developable 
OCS oil and gas reserves.
    As any American who has filled their gas tank can attest, 
the OCS leasing and drilling and profit bonanza that the oil 
and gas industry has enjoyed during the Bush Administration has 
utterly failed to lower prices at the pump. Rewarding Big Oil 
with expanded access to protected OCS moratoria areas is 
unnecessary and has no demonstrable correlation to lower oil 
and gas prices.

                   THE ILLUSION OF COASTAL PROTECTION

    The proponents of H.R. 4761 portray the legislation as a 
benign measure which empowers coastal states. They cite future 
Congressional action to repeal the OCS leasing moratoria as 
inevitable.
    Ironically, on May 18, 2006 the House approved the 
Department of the Interior, Environment and Related Agencies 
Appropriations Act for FY 2007 which would extend the current 
moratoria in the Atlantic and Pacific coasts and the Eastern 
Gulf of Mexico. An amendment to strike the entire oil and gas 
moratoria was rejected by an overwhelming vote of 279 to 141. 
No Governor or Congressional delegation representing a state 
currently under the moratoria sought in that process to opt-out 
or remove protections. Moreover, the current Presidential 
withdrawal is in effect until the year 2012.
    In reality, H.R. 4761 is a Trojan horse for coastal states 
which oppose OCS leasing on economic and environmental grounds. 
At the outset, H.R. 4761 shrinks the moratoria areas from 200 
miles under current law to 100 miles from the state boundaries. 
Within 50 to 100 miles, H.R. 4761 would cease protections 
unless the state acts: Governors would have to get the 
concurrence of their state legislatures within one year to 
petition the Department of the Interior to prevent so-called 
``natural gas only'' leasing and within three years to prevent 
oil leasing. In addition, states must re-petition every five 
years to maintain the protections. Within 50 miles, a state 
would have to affirmatively petition to allow for leasing, but 
would be granted between 50 and 75 percent of the revenues if 
they opt-in.
    Notably, the oil and gas industry is granted a huge 
loophole in H.R. 4761 to cross protective OCS moratoria 
boundaries under Section 9 which states: ``Further, any area of 
the OCS withdrawn from leasing may be leased and thereafter 
developed and produced by the lessee using extended reach or 
similar drilling from a location on a leased area located in an 
area available for leasing.'' In addition, under Section 11, 
the federal government pre-empts state authority over pipeline 
routing and no state may prohibit the construction of a natural 
gas pipeline through its own state waters.
    By a combination of shrinking moratoria areas, procedural 
hurdles, curbs on state powers, and financial incentives, it is 
clear that the fundamental purpose of H.R. 4761 is to foster 
oil and gas development in OCS areas where it is not supported 
or allowed today. And even in the event that states attempt to 
protect their own coasts, they would be subject to the whims of 
bordering states which may choose to allow development under 
the new state seaward boundaries established by Section 4.

   COASTAL STATE REVENUE SHARING AND A GROWING FEDERAL BUDGET DEFICIT

    The proponents of H.R. 4761 have asserted that OCS leasing 
in new areas will generate a windfall of revenue for coastal 
states and the federal Treasury. Under H.R. 4761, coastal 
states would receive 75 percent of OCS revenue within 12 miles 
seaward of the state/federal boundary and 50 percent of OCS 
revenue within 12 to 200 miles away.
    Under Section 8(g) of the Outer Continental Shelf Lands 
Act, coastal states currently receive 27 percent of OCS 
revenues within 3 miles seaward of the state/federal boundary. 
Currently, six coastal states (Alabama, Alaska, California, 
Louisiana, Mississippi and Texas) receive roughly $100 million 
annually under the 8(g) program, with about $40 million of that 
amount accruing to Louisiana. In the OCS area beyond the 3 mile 
8(g) zone, revenue generally goes to the Federal Treasury under 
current law. However, the Energy Policy Act of 2005 (P.L. 109-
58) provided that $250 million of OCS revenues be paid annually 
to the six coastal oil and gas producing states (a total of $1 
billion over four years).
    In reality, the expanded coastal revenue sharing under H.R. 
4761 is a new, permanent entitlement program which would divert 
Federal OCS revenues from existing offshore oil and gas leasing 
and production to adjacent states at enormous potential cost to 
the Treasury. Under H.R. 4761, individual states would receive 
revenues generated by the development--far beyond state 
boundaries--of public resources owned by all the American 
people. In fact, it is the federal revenue loss from the 
existing OCS areas open to leasing in the Gulf of Mexico that 
forms the basis for the sponsor's claim that Louisiana will 
gain $2.6 billion annually and $50 billion over the first 
thirty years under H.R. 4761.
    On June 14, 2006, at the sole hearing committee hearing 
held on H.R. 4761, the Minerals Management Service testified 
that:

          * * * we have serious concerns about this bill 
        because of its excessive short and long term costs * * 
        * the bill as drafted, would divert significant OCS 
        revenues from existing leases in Federal waters for 
        broad uses by coastal states. The revenue sharing 
        provisions of H.R. 4761 are inconsistent with the 
        President's budget priorities and would have a 
        significant, long-term impact on the budget deficit.

    On June 21, 2006, the Director of the MMS wrote to Chairman 
Pombo to restate the Administration's opposition to revenue 
sharing provisions applicable to existing OCS leases and to 
state a preliminary estimate that H.R. 4761 would result in a 
decline of $69 billion in federal revenue over the first 
fifteen years.

       NEW DIRECT SPENDING PROGRAMS/NO APPROPRIATIONS/NO SUNSETS

    In addition to state revenue sharing, the proponents of 
H.R. 4761 seek to expand support for offshore oil and gas 
drilling by creating new spending programs, for education and a 
variety of other purposes, funded by OCS revenues.
    In reality, H.R. 4761 makes a mockery of fiscal 
responsibility. The new spending programs in Section 14 
(Federal Energy Natural Resources Enhancement Fund Act of 
2006), Section 23 (Mining and Petroleum Schools), and Section 
26 (National Geo Fund Act) are not subject to Congressional 
appropriations or oversight. Moreover, they are permanent 
spending programs without a sunset date. Only Section 30 
(Secure Rural Schools) has a dollar cap and time limit of $250 
million and five years.
    The ultimate cost of these open-ended new programs is 
unknown, since H.R. 4761 authorizes funding based on 
percentages of OCS, Mineral Leasing Act and other revenues. At 
a time of enormous budget deficits and with many worthy 
existing programs under-funded, it is highly questionable that 
it is a national priority to create, for example, a new 
education office within the Department of the Interior as would 
Section 23 (Energy and Mineral Schools Reinvestment Act). In 
addition, nothing in H.R. 4761 provides any guarantee that the 
Land and Water Conservation Fund Act of 1965--a highly 
effective and popular program which, subject to appropriation, 
funds federal land acquisition and state park and recreation 
activities using OCS receipts--would be held harmless.

           ROYALTY RELIEF: A POTENTIAL SOLUTION HELD HOSTAGE

    The proponents of H.R. 4761 attempt to respond to public 
outrage over oil and gas companies which received royalty-free 
leases under the 1995 Outer Continental Shelf Deep Water 
Royalty Relief Act by imposing fees on any such leases which 
are not renegotiated to include market price threshold cutoffs 
for royalty relief.
    Mr. Markey offered an amendment which would have struck all 
the controversial OCS and spending provisions in H.R. 4761 and 
limited the legislation to the royalty-relief renegotiation 
incentive fees and a section imposing a modest rental fee on 
non-producing leases.
    In reality, by rejecting Mr. Markey's amendment, the 
sponsors of H.R. 4761 are holding a potential solution to the 
royalty relief problem hostage. During consideration of the 
Interior appropriations bill on May 18, 2006, the House voted 
overwhelmingly, 252 to 165, to adopt the Hinchey-Markey-Rahall 
amendment that would have offered a stronger incentive (no new 
OCS leases) for oil and gas companies to renegotiate leases 
that do not suspend royalty relief when prices are high. 
According to GAO estimates, the federal Treasury stands to lose 
as much as $80 billion, depending on the outcome of industry-
litigation, if the royalty relief problem is not addressed by 
Congress.
    To make matters worse, H.R. 4761 also includes a royalty 
relief mandate which is applicable to all new OCS leasing. In 
Section 6, new OCS leases are subject to the ``base royalty 
rate.'' In practical effect, for example, that means that the 
royalty rate for leases in shallow waters of the Gulf of Mexico 
would be lowered from 16 \2/3\ percent to 12 \1/2\ percent for 
no apparent policy reason other than to further subsidize a 
highly profitable industry.

             INDUSTRY FRIENDLY SPECIAL INTEREST PROVISIONS

    H.R. 4761 is replete with provisions designed to benefit 
the oil and gas and other energy industries at the expense of 
the public, and a few of the more egregious examples are cited 
below. A number of these provisions were debated and rejected 
by the conferees on the Energy Policy Act of 2005.
           Section 3 would change the definition of 
        ``Affected State'' as set forth in the Coastal Zone 
        Management Act and the Outer Continental Shelf Lands 
        Act, to ``Adjacent State'' and would significantly 
        dilute the role of coastal states in considering 
        proposed federal actions under the ``consistency'' 
        provisions of the CZMA.
           Section 10 would allow decommissioned oil 
        and gas rigs to be used for offshore fish farms and 
        other purposes, granting a full liability waiver to 
        lessees abandoning such rigs.
           Section 12 would exempt lease sales from the 
        analysis and public process required under the National 
        Environmental Protection Act (NEPA).
           Section 17 would require the federal 
        government to repurchase and cancel onshore and 
        offshore leases (covering oil and gas, geothermal, 
        coal, oil shale, tar sands, or other mineral leases) if 
        the lease is not allowed to be explored and/or 
        developed. A similar provision was debated and 
        ultimately dropped from the Energy Policy Act of 2005.
           Section 18 would override all other federal 
        laws and require the Secretary of the Interior to 
        accept ``off-site'' environmental mitigation from 
        activities occurring under the Mineral Leasing Act, the 
        Geothermal Steam Act, the Mineral Leasing Act for 
        Acquired Lands, the Weeks Act, the General Mining Act 
        of 1872, the Materials Act of 1947, or the Outer 
        Continental Shelf Lands Act. Under this provision, in 
        order to satisfy any mitigation requirements, a person 
        could propose mitigation elsewhere and the Secretary 
        would be required to accept the proposal if the 
        measures ``generally achieve the purposes for which 
        mitigation measures were appertained.''
           Section 24 would prohibit the creation of 
        any new fees related to any federal onshore and 
        offshore mineral lease that was not in effect on 
        January 1, 2005, and sets cap on increase of existing 
        fees concerning mineral leases. President Bush has 
        called in the FY 2007 budget proposal for the repeal of 
        a similar but more limited restriction that was 
        included in the Energy Policy Act of 2005.
           Section 29 would repeal the Energy Policy 
        Act of 2005 provisions relating to royalty obligations 
        on tar sands and oil shale leases and replace it with 
        one which significantly reduces the royalty obligations 
        of lessees.

                               CONCLUSION

    The oil and gas supply disruptions from hurricanes Katrina 
and Rita in 2005 should inspire Congress to pursue more diverse 
and secure sources of energy for the nation. Instead, H.R. 4761 
is based on the premise that the nation will remain, as 
President Bush has observed, ``addicted to oil'' and that 
leasing and development is the highest and best use of coastal 
resources. By terminating longstanding OCS moratoria, by 
establishing a permanent entitlement program using federal OCS 
revenue in an attempt to bribe coastal states to ignore the 
threat to their economies and environment and to reward those 
who already support existing leasing with huge windfalls, by 
creating new, open-ended spending programs not subject to 
appropriations or sunsets, and by a buffet of energy industry 
special interest riders, H.R. 4761 is costly and fundamentally 
misguided legislation that should not become law.

                                   Nick J. Rahall II.
                                   George Miller.
                                   Edward J. Markey.
                                   Dale Kildee.
                                   Frank Pallone, Jr.
                                   Jay Inslee.
                                   Raul Grijalva.
                                   Grace F. Napolitano.

                   U.S. Department of the Interior,
                               Minerals Management Service,
                                     Washington, DC, June 21, 2006.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: As you consider the Deep Ocean Energy 
Resources Act, I'd like to reiterate and expand upon several 
points I made in my testimony on the bill last week and the 
currently proposed amendment to that bill. As noted in my 
testimony, the Administration believes expanding access to 
offshore energy resources is important to the Nation's energy 
security. The Administration supports including a significant 
role for state views in the determination of future energy 
decisions in federal waters, and will not support drilling 
within at least 100 miles of the Florida coast.
    While supporting expanded access to energy resources, among 
other concerns, the Administration opposes certain aspects of 
the revenue sharing provisions of H.R. 4761. Our preliminary 
and very rough estimates indicate that these provisions, if 
unchanged, would result in a decline of $69 billion of retained 
federal royalties over 15 years. This diversion would have 
significant impacts on the federal debt. The States' share 
would rise by $86 billion, for a total of $91 billion.
    The Administration welcomes the opportunity for 
constructive discussions on revenue sharing options that would 
provide access to new oil and natural gas resources.
            Sincerely,
                                   R.M. ``Johnnie'' Burton,
                                                          Director.

                   Appendix--Committee Correspondence

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, June 23, 2006.
Hon. Bob Goodlatte,
Chairman, Committee on Agriculture,
Longworth HOB, Washington, DC.
    Dear Mr. Chairman: On June 21, 2006, the Committee on 
Resources ordered favorably reported with amendments H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006, to provide for the 
exploration, development, and production activities for mineral 
resources on the outer Continental Shelf, and for other 
purposes. The bill was referred solely to the Committee on 
Resources. During Committee consideration of the measure, an 
amendment was adopted that funds provisions of the Secure Rural 
Schools and Community Self-Determination Act of 2000 from 
receipts from the development of oil and natural gas resources 
of the outer Continental Shelf. Of course, the Committee on 
Agriculture has a jurisdictional interest in this provision. I 
have forwarded a copy of the Committee-reported text to your 
staff to review; the relevant portion is Section 30.
    Because it is my hope to schedule H.R. 4761 for 
consideration by the House of Representatives next week, I ask 
that you not request a sequential referral of the bill based on 
the inclusion of this provision. This agreement in no way 
affects your jurisdiction over the subject matter and it will 
not serve as precedent for future referrals. If a conference 
committee is convened on H.R. 4761 or a similar Senate measure, 
I would support your request to have the Committee on 
Agriculture represented on the conference for Section 30. In 
addition, I would be pleased to include this letter and any 
response you might have in the report on the bill to be filed 
on Monday, June 26, 2006.
    Thank you for your consideration of my request, and I look 
forward to bringing H.R. 4761 to the Floor soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                  Committee on Agriculture,
                                     Washington, DC, June 26, 2006.
Hon. Richard Pombo,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
    Dear Mr. Chairman: On June 21, 2006 the Committee on 
Resources ordered favorably reported H.R. 4761, the Domestic 
Energy Production through Offshore Exploration and Equitable 
Treatment of State Holdings Act of 2006. As introduced, H.R. 
4761, the Committee on Resources had sole jurisdiction.
    As you are aware, section 30 of the bill as amended affects 
the Committee on Agriculture's jurisdiction. Section 30 affects 
funding of the Secure Rural Schools Act which is the primary 
jurisdiction of the Committee on Agriculture.
    Because of your willingness to consult with the Committee 
on Agriculture regarding this issue and the need to expedite 
this legislation, I will waive consideration of the bill by the 
Committee on Agriculture. I do so with the understanding that 
the Committee on Agriculture does not waive its jurisdiction 
over H.R. 4761 or the subject matter of section 30. In 
addition, the Committee on Agriculture reserves its authority 
to seek conferees on any provisions of the bill that are within 
our jurisdiction during any House-Senate conference that may be 
convened on this legislation. I appreciate your commitment to 
support any request by our Committee for conferees on H.R. 
4761.
    I request that you include this letter and your preceding 
letter as part of your committee's report on the bill and the 
Congressional Record during consideration of the legislation on 
the House floor. Thank you for your cooperation in this matter.
            Sincerely,
                                             Bob Goodlatte,
                                Chairman, Committee on Agriculture.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, June 23, 2006.
Hon. Howard P. ``Buck'' McKeon,
Chairman, Committee on Education and the Workforce,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On June 21, 2006, the Committee on 
Resources ordered favorably reported with amendments H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006, to provide for the 
exploration, development, and production activities for mineral 
resources on the outer Continental Shelf, and for other 
purposes. The bill was referred solely to the Committee on 
Resources. During Committee consideration of the measure, an 
amendment was adopted to Section 23, Mining and Petroleum 
Schools, that expanded that provision. Section 23 helps ensure 
that we will have sufficient personnel to help America to 
manage its energy resources by funding specialized education 
and training opportunities and maintaining existing mining 
engineering programs through outer Continental Shelf oil and 
gas lease payments. While the Committee on Resources has 
jurisdiction under Rule X of the House of Representatives over 
``mining schools and experimental stations,'' I believe that 
the Committee on Education and the Workforce has a 
jurisdictional interest in Section 23. I have forwarded a copy 
of the Committee-reported text to your staff to review.
    Because it is my hope to schedule H.R. 4761 for 
consideration by the House of Representatives next week, I ask 
that you not request a sequential referral of the bill based on 
the inclusion of this provision. This agreement in no way 
affects your jurisdiction over the subject matter and it will 
not serve as precedent for future referrals. If a conference 
committee is convened on H.R. 4761 or a similar Senate measure, 
I would support your request to have the Committee on Education 
and Workforce represented on the conference for Section 23. In 
addition, I would be pleased to include this letter and any 
response you might have in the report on the bill to be filed 
on Monday, June 26, 2006.
    Thank you for your consideration of my request, and I look 
forward to bringing H.R. 4761 to the Floor soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                  Committee on Education and the Workforce,
                                     Washington, DC, June 24, 2006.
Hon. Richard W. Pombo,
Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: Thank you for your recent letter 
regarding H.R. 4761, the Deep Ocean Energy Resources Act of 
2006. I agree that the Committee on Education and the Workforce 
has a jurisdictional interest in provisions of Section 23, 
Mining and Petroleum Schools, of the bill as reported from your 
committee. Specifically, my committee has jurisdictional 
interest in education funding, post-secondary scholarships, 
career technical and vocational education, minority-serving 
higher education institutions, and basic math and science 
education programs as included in Section 23.
    Although I have significant reservations with new and 
potentially duplicative education programs created in Section 
23, I will not seek a sequential referral of this legislation 
because of the importance and timeliness of the Deep Ocean 
Energy Resources Act, and your willingness to work with the 
Committee of Education and the Workforce. However, I do so only 
with your assurance and understanding that this procedural 
route should not be construed to prejudice my committee's 
jurisdictional interest and prerogatives on these provisions or 
any other similar legislation and will not be considered as 
precedent for consideration of matters of jurisdictional 
interest to my committee in the future. Thank you for 
supporting the appointment of outside conferees from the 
Committee on Education and Workforce should these or similar 
provisions be considered in a conference with the Senate. 
Finally, thank you for including your letter and this response 
in the report on H.R. 4761.
            Sincerely,
                                 Howard P. ``Buck'' McKeon,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, June 23, 2006.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On June 21, 2006, the Committee on 
Resources ordered favorably reported with amendments H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006, to provide for the 
exploration, development, and production activities for mineral 
resources on the Outer Continental shelf, and for other 
purposes. The bill was referred solely to the Committee on 
Resources. Upon reviewing the reported text, it appears that 
the Committee on Energy and Commerce has a jurisdictional 
interest in certain provisions. I have forwarded a copy of the 
committee-reported text to your staff to review.
    Because it is my hope to schedule H.R. 4761 for 
consideration by the House of Representatives next week, I ask 
that you not request a sequential referral of the bill based on 
the inclusion of these provisions. This agreement in no way 
affects your jurisdiction over the subject matter and it will 
not serve as precedent for future referrals. If a conference 
committee is convened on H.R. 4761 or a similar Senate measure, 
I would support your request to have the Committee on Energy 
and Commerce represented on that conference for the appropriate 
sections. In addition, I would be pleased to include this 
letter and any response you might have in the report on the 
bill to be filed on Monday, June 26, 2006.
    Thank you for your consideration of my request, and I look 
forward to bringing H.R. 4761 to the Floor soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                     Washington, DC, June 26, 2006.
Hon. Richard Pombo,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
    Dear Chairman Pombo: Thank you for your letter concerning 
H.R. 4761, the Deep Ocean Energy Resources Act of 2006. As you 
know, the Committee on Energy and Commerce has jurisdiction 
over certain provisions in the bill as introduced and reported.
    I recognize your desire to bring this legislation before 
the House in an expeditious manner. Accordingly, I will not 
exercise my Committee's right to a full referral on the bill. 
By agreeing to waive its consideration of the bill, however, 
the Committee on Energy and Commerce does not waive its 
jurisdiction over H.R. 4761. In addition, the Committee on 
Energy and Commerce reserves its right to seek conferees on any 
provisions of the bill that are within its jurisdiction during 
any House-Senate conference that may be convened on this 
legislation. I thank you for your commitment to support any 
request by the Committee on Energy and Commerce for conferees 
on H.R. 4761 or similar legislation, and accept your offer to 
put our exchange of letters in the Committee report.
    Thank you for your attention to these matters, and I look 
forward to working with you as this legislation moves forward.
            Sincerely,
                                                Joe Barton,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, June 23, 2006.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On June 21, 2006, the Committee on 
Resources ordered favorably reported with amendments H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006, to provide for the 
exploration, development, and production activities for mineral 
resources on the Outer Continental shelf, and for other 
purposes. The bill was referred solely to the Committee on 
Resources. Upon reviewing the reported text, it appears that 
the Committee on Transportation and Infrastructure has a 
jurisdictional interest in certain provisions. I have forwarded 
a copy of the committee-reported text to your staff to review.
    Because it is my hope to schedule H.R. 4761 for 
consideration by the House of Representatives next week, I ask 
that you not request a sequential referral of the bill based on 
the inclusion of these provisions. This agreement in no way 
affects your jurisdiction over the subject matter and it will 
not serve as precedent for future referrals. If a conference 
committee is convened on H.R. 4761 or a similar Senate measure, 
I would support your request to have the Committee on 
Transportation and Infrastructure represented on that 
conference for the appropriate sections. In addition, I would 
be pleased to include this letter and any response you might 
have in the report on the bill to be filed on Monday, June 26, 
2006.
    Thank you for your consideration of my request, and I look 
forward to bringing H.R. 4761 to the Floor soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                     Washington, DC, June 26, 2006.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter on H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006. As you correctly 
point out the reported bill contains matters within the 
jurisdiction of the Transportation and Infrastructure 
Committee.
    Our Committee recognizes the importance of H.R. 4761 and 
the need for the legislation to move expeditiously. Therefore, 
while we have a valid claim to jurisdiction over certain 
provisions of the reported bill and based on your assurances, I 
will not request a sequential referral. This, of course, does 
not waive, reduce or otherwise affect the jurisdiction of the 
Transportation and Infrastructure Committee.
    Thank you for your cooperation in this matter and your 
leadership in developing our Nation's energy resources.
            Sincerely,
                                                  Don Young
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                     Washington, DC, June 26, 2006.
Hon. Sherwood Boehlert,
Chairman, Committee on Science
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On June 21, 2006, the Committee on 
Resources ordered favorably reported with amendments H.R. 4761, 
the Deep Ocean Energy Resources Act of 2006. The bill was 
referred solely to the Committee on Resources. The bill was 
substantially amended in Committee, and based on discussions 
with the Parliamentarian, I believe the Committee on Science 
has a jurisdictional interest in Sections 7, 21, 23 and 26 of 
the bill. In anticipation of this, I forwarded a copy of the 
Committee-reported text to your staff to review on June 22, 
2006.
    Because it is my hope to schedule H.R. 4761 for 
consideration by the House of Representatives this week, I ask 
that you not request a sequential referral of the bill based on 
the inclusion of these provisions. This agreement in no way 
affects your jurisdiction over the subject matter and it will 
not serve as precedent for future referrals. If a conference 
committee is convened on H.R. 4761 or a similar Senate measure, 
I would support your request to have the Committee on Science 
represented on the conference for the relevant sections. In 
addition, I would be pleased to include this letter and any 
response you might have in the report on the bill. Finally, if 
you have any substantive concerns with the bill language, I 
would be happy to direct my staff to work with yours to develop 
alternative language which addresses those concerns which could 
be offered as part of a manager's amendment to the bill on the 
House Floor.
    Thank you for your consideration of my request, and I look 
forward to enacting H.R. 4761 soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                      Committee on Science,
                                     Washington, DC, June 26, 2006.
Hon. Richard Pombo,
Chairman, Committee on Resources,
Longworth HOB, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter dated June 26, 
2006. I am writing regarding the jurisdictional interest of the 
Science Committee in matters being considered in H.R. 4761, the 
Deep Ocean Energy Resources Act of 2006, as amended in 
Committee. The Parliamentarian has confirmed that the Committee 
on Science has a jurisdictional interest in Sections 7, 21, 23 
and 26 of the bill. Thank you for providing a copy of the 
Committee-reported text to my staff and for agreeing to address 
some of my concerns by making changes to the bill language in 
the Manager's Amendment to be offered on the House floor.
    The Science Committee recognizes the importance of H.R. 
4761 and the need for the legislation to move expeditiously. 
Therefore, pursuant to our agreement to incorporate changes to 
H.R. 4761 on the floor, I will not request a sequential 
referral. This, of course, is conditional on our mutual 
understanding that nothing in this legislation or my decision 
to forgo a sequential referral waives, reduces or otherwise 
affects the jurisdiction of the Science Committee, and that a 
copy of this letter and your June 26 letter will be included in 
the Committee report and in the Congressional Record when the 
bill is considered on the House Floor.
    I appreciate your agreement to support any Science 
Committee request to be conferees during any House-Senate 
conference on this legislation.
    Thank you for your attention to this matter.
            Sincerely,
                                         Sherwood Boehlert,
                                                          Chairman.

                                  
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