,,ii #aaeth ,,congress #ast ,session ,s4 #di ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #e1 #bjag ,ms4 ,murkowski 7for herself and ,mr4 ,sullivan7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to provide for a leasing program within the ,coastal ,plain1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,alaska ,oil and ,gas ,production ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,sec4 #c4 ,leasing program for land within the ,coastal ,plain4 ,sec4 #d4 ,lease sales4 ,sec4 #e4 ,grant of leases by the ,secretary4 ,sec4 #f4 ,lease terms and conditions4 ,sec4 #g4 ,coastal ,plain environmental protection4 ,sec4 #h4 ,rights-of-way and easements across the ,coastal ,plain4 ,sec4 #i4 ,conveyance4 ,sec4 #aj4 ,clarification of western coastal boundary of ,,anwr4 ,sec4 #aa4 ,local government impact aid and community service assistance4 #b4 ,definitions ,in this ,act3 7#a7 ,coastal plain ,the term ,coastal ,plain means the area generally described in appendix ,i to part #cg of title #ej1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act71 except that the westerly boundary of the ,coastal ,plain shall be the boundary depicted on the map prepared under section #aj7;b74 7#b7 ,deformed area of the coastal plain ,the term ,deformed ,area of the ,coastal ,plain means the approximately #a1abe1jjj acres generally depicted as the deformed area south and east of the ,marsh ,creek anticline in figure #b of fact sheet #jjbh-ja of the ,united ,states ,geological ,survey4 7#c7 ,final statement ,the term ,final ,statement means the final legislative environmental impact statement on the ,coastal ,plain1 dated ,april #aihg1 and prepared pursuant to-- 7,a7 section #ajjb of the ,alaska ,national ,interest ,lands ,conservation ,act 7#af ,u4,s4,c4 #cadb72 and 7,b7 section #ajb7b77;,c7 of the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dccb7b77;,c774 7#d7 ,secretary ,the term ,secretary means the ,secretary of the ,interior4 7#e7 ,undeformed area of the coastal plain ,the term ,undeformed ,area of the ,coastal ,plain means the approximately #cge1jjj acres generally depicted as the undeformed area north and west of the ,marsh ,creek anticline in figure #b of fact sheet #jjbh-ja of the ,united ,states ,geological ,survey4 #c4 ,leasing program for land within the ,coastal ,plain 7a7 ,in general 7#a7 ,authorization ,congress authorizes the exploration1 leasing1 development1 production1 and transportation of oil and gas in and from the ,coastal ,plain4 7#b7 ,actions ,the ,secretary shall take such actions as are necessary-- 7,a7 to establish and implement1 in accordance with this ,act1 a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration1 development1 and production of the oil and gas resources of the ,coastal ,plain2 and 7,b7 to administer this ,act through regulations1 lease terms1 conditions1 restrictions1 prohibitions1 stipulations1 and other provisions that-- 7i7 ensure1 to the maximum extent practicable1 that the oil and gas exploration1 development1 and production activities on the ,coastal ,plain will result in no significant adverse effect on fish and wildlife1 fish and wildlife habitat1 subsistence resources1 and the environment2 and 7ii7 require the application of the best commercially available technology for oil and gas exploration1 development1 and production to all exploration1 development1 and production operations under this ,act in a manner that ensures the receipt of fair market value by the public for the mineral resources to be leased4 7b7 ,repeal 7#a7 ,repeal ,section #ajjc of the ,alaska ,national ,interest ,lands ,conservation ,act 7#af ,u4,s4,c4 #cadc7 is repealed4 7#b7 ,conforming amendment ,the table of contents contained in section #a of that ,act 7#af ,u4,s4,c4 #caja note7 is amended by striking the item relating to section #ajjc4 7c7 ,compliance with requirements under certain other laws 7#a7 ,compatibility ,for purposes of the ,national ,wildlife ,refuge ,system ,administration ,act of #aiff 7#af ,u4,s4,c4 #ffh;dd et seq47-- 7,a7 the oil and gas preleasing and leasing program authorized by this ,act1 and any activities authorized under this ,act1 including exploration1 development1 production1 and transportation activities1 shall be considered to be compatible with the purposes for which the ,arctic ,national ,wildlife ,refuge was established2 and 7,b7 no further findings or decisions shall be required to implement the preleasing and leasing program and the activities authorized under this ,act4 7#b7 ,compliance with ,,nepa for oil and gas preleasing and leasing and production from the first lease sale 7,a7 ,in general ,subject to paragraph 7#c71 the oil and gas preleasing and leasing program authorized by this ,act1 including the first lease sale conducted under the leasing program and exploration1 development1 production1 and transportation activities associated with any lease issued under the first lease sale1 shall not constitute a major ,federal action for purposes of the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7,b7 ,no further review required ,subject to paragraph 7#c71 no further review under the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq47 shall be required to implement the oil and gas preleasing and leasing program authorized by this ,act1 including the first lease sale conducted under the leasing program and exploration1 development1 production1 and transportation activities associated with any lease issued under the first lease sale4 7#c7 ,compliance with ,,nepa for other actions 7,a7 ,in general ,before conducting the second lease sale under this ,act1 the ,secretary shall prepare an environmental impact statement in accordance with the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq47 with respect to the actions authorized by this ,act that are not referred to in paragraph 7#b74 7,b7 ,identification and analysis ,notwithstanding any other provision of law1 in carrying out this paragraph1 the ,secretary shall not-- 7i7 identify nonleasing alternative courses of action2 or 7ii7 analyze the environmental effects of those courses of action4 7,c7 ,identification of preferred action ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall identify only a preferred action and a single leasing alternative for the second lease sale authorized under this ,act4 7,d7 ,effect of compliance ,notwithstanding any other provision of law1 compliance with this paragraph shall be considered to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this ,act4 7d7 ,relationship to state and local authority ,nothing in this ,act expands or limits any ,state or local regulatory authority4 7e7 ,limitation on closed areas ,the ,secretary shall not close land within the ,coastal ,plain to oil and gas leasing or to exploration1 development1 or production except in accordance with this ,act4 7f7 ,regulations ,not later than #a year after the date of enactment of this ,act1 in consultation with the ,state of ,alaska1 ,north ,slope ,borough1 ,alaska1 the ,city of ,kaktovik1 ,alaska1 and the ,arctic ,slope ,regional ,corporation1 the ,secretary shall promulgate such regulations as are necessary to carry out this ,act4 7g7 ,authorization on ,,kic-,,asrc private land ,exploratory drilling1 leasing1 development1 and production of oil and gas resources are authorized on the private land owned by the ,kaktovik ,inupiat ,corporation and the ,arctic ,slope ,regional ,corporation described in ,appendix #b of the agreement between the ,arctic ,slope ,regional ,corporation and the ,united ,states1 dated ,august #i1 #aihc4 #d4 ,lease sales 7a7 ,in general ,land may be leased pursuant to this ,act to any person qualified to obtain a lease for deposits of oil and gas under the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq474 7b7 ,procedures ,the ,secretary shall1 by regulation1 establish procedures for-- 7#a7 receipt and consideration of sealed nominations for any area in the ,coastal ,plain for inclusion in a lease sale2 7#b7 the holding of lease sales after the nomination process described in paragraph 7#a72 and 7#c7 public notice of and comment on designation of areas to be included in1 or excluded from1 a lease sale4 7c7 ,lease sale bids ,bidding for leases under this ,act shall be by sealed competitive cash bonus bids4 7d7 ,acreage minimum in first sale ,for the first lease sale under this ,act1 the ,secretary shall offer for lease those tracts the ,secretary considers to have the greatest potential for the discovery of hydrocarbons1 taking into consideration nominations received pursuant to subsection 7b77#a71 but in no case less than #cjj1jjj acres4 7e7 ,timing of lease sales ,the ,secretary shall-- 7#a7 not later than #a year after the date of enactment of this ,act1 conduct the first lease sale under this ,act2 7#b7 not later than #ah months after the date on which the first lease sale is conducted under paragraph 7#a71 conduct a second lease sale under this ,act2 and 7#c7 conduct additional sales at appropriate intervals if sufficient interest in exploration or development exists to warrant the conduct of the additional sales4 #e4 ,grant of leases by the ,secretary 7a7 ,in general ,upon payment by a lessee of such bonus as may be accepted by the ,secretary1 the ,secretary shall grant to the highest responsible qualified bidder in a lease sale conducted pursuant to section #d a lease for any land on the ,coastal ,plain4 7b7 ,subsequent transfers ,no lease issued under this ,act may be sold1 exchanged1 assigned1 sublet1 or otherwise transferred except with the approval of the ,secretary4 #f4 ,lease terms and conditions 7a7 ,in general ,an oil or gas lease issued pursuant to this ,act shall-- 7#a7 provide for the payment of a royalty of not less than #aba_/b percent of the amount or value of the production removed or sold from the lease1 as determined by the ,secretary in accordance with regulations applicable to other ,federal oil and gas leases2 7#b7 provide that the ,secretary1 after consultation with the ,state of ,alaska1 ,north ,slope ,borough1 ,alaska1 the ,city of ,kaktovik1 ,alaska1 and the ,arctic ,slope ,regional ,corporation1 may-- 7,a7 close such portions of the ,deformed ,area of the ,coastal ,plain to exploratory drilling activities as are necessary to protect caribou calving areas and other species of fish and wildlife2 and 7,b7 close1 on a seasonal basis only1 such portions of the ,undeformed ,area of the ,coastal ,plain to exploratory drilling activities as are necessary to protect caribou calving areas and other species of fish and wildlife2 7#c7 require that each lessee of land within the ,coastal ,plain shall be fully responsible and liable for the reclamation of land that is adversely affected in connection with exploration1 development1 production1 or transportation activities within the ,coastal ,plain conducted by the lessee or by any of the subcontractors or agents of the lessee2 7#d7 provide that the lessee may not delegate or convey1 by contract or otherwise1 the reclamation responsibility and liability described in paragraph 7#c7 to another person without the express written approval of the ,secretary2 7#e7 provide that the standard of reclamation for land required to be reclaimed under this ,act shall be1 to the maximum extent practicable-- 7,a7 a condition capable of supporting the uses that the land was capable of supporting prior to any exploration1 development1 or production activities2 or 7,b7 on application by the lessee1 to a higher or better standard1 as approved by the ,secretary2 7#f7 contain terms and conditions relating to protection of fish and wildlife1 fish and wildlife habitat1 subsistence resources1 and the environment as required under section #c7;a77#b72 and 7#g7 provide that each lessee1 and each agent and contractor of a lessee1 shall use their best efforts to provide a fair share of employment and contracting for ,alaska ,natives and ,alaska ,native ,corporations from throughout the ,state of ,alaska1 as determined by the level of obligation previously agreed to in the ,federal ,agreement and ,grant ,right-of-,way for the ,trans-,alaska ,pipeline issued on ,january #bc1 #aigd1 in accordance with section #bh of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #ahe7 and the ,trans-,alaska ,pipeline ,authorization ,act 7#dc ,u4,s4,c4 #afea et seq474 7b7 ,project labor agreements ,the ,secretary1 as a term and condition of each lease under this ,act1 and in recognizing the proprietary interest of the ,federal ,government in labor stability and in the ability of construction labor and management to meet the particular needs and conditions of projects to be developed under the leases issued pursuant to this ,act 7including the special concerns of the parties to those leases71 shall require that each lessee1 and each agent and contractor of a lessee1 under this ,act negotiate to obtain a project labor agreement for the employment of laborers and mechanics on production1 maintenance1 and construction under the lease4 #g4 ,coastal ,plain environmental protection 7a7 ,no significant adverse effect standard ,to govern authorized activities on the coastal plain ,in accordance with section #c1 the ,secretary shall administer this ,act through regulations1 lease terms1 conditions1 restrictions1 prohibitions1 stipulations1 or other provisions that-- 7#a7 ensure1 to the maximum extent practicable1 that oil and gas exploration1 development1 and production activities on the ,coastal ,plain will result in no significant adverse effect on fish and wildlife1 fish and wildlife habitat1 subsistence resources1 and the environment2 7#b7 require the application of the best commercially available technology for oil and gas exploration1 development1 and production on all new exploration1 development1 and production operations2 and 7#c7 ensure that the maximum surface acreage covered in connection with the leasing program by production and support facilities1 including airstrips and any areas covered by gravel berms or piers for support of pipelines1 does not exceed #b1jjj acres on the ,coastal ,plain4 7b7 ,site-,specific assessment and mitigation ,the ,secretary shall require1 with respect to any proposed drilling and related activities on the ,coastal ,plain1 that-- 7#a7 a site-specific environmental analysis be made of the probable effects1 if any1 that the drilling or related activities will have on fish and wildlife1 fish and wildlife habitat1 subsistence resources1 and the environment2 7#b7 a plan be implemented to avoid1 minimize1 and mitigate 7in that order and to the maximum extent practicable7 any significant adverse effect identified under paragraph 7#a72 and 7#c7 the development of the plan occur after consultation with-- 7,a7 each agency having jurisdiction over matters mitigated by the plan2 7,b7 the ,state of ,alaska2 7,c7 ,north ,slope ,borough1 ,alaska2 7,d7 the ,city of ,kaktovik1 ,alaska2 and 7,e7 the ,arctic ,slope ,regional ,corporation4 7c7 ,regulations ,to protect the coastal plain fish and wildlife resources1 subsistence users1 and the environment ,before implementing the leasing program authorized by this ,act1 the ,secretary shall prepare and promulgate regulations1 lease terms1 conditions1 restrictions1 prohibitions1 stipulations1 or other measures designed to ensure1 to the maximum extent practicable1 that the activities carried out on the ,coastal ,plain under this ,act are conducted in a manner consistent with the purposes and environmental requirements of this ,act4 7d7 ,compliance with federal and state environmental laws and other requirements ,the regulations1 lease terms1 conditions1 restrictions1 prohibitions1 and stipulations for the leasing program under this ,act shall require-- 7#a7 compliance with all applicable provisions of ,federal and ,state environmental law 7including regulations72 and 7#b7 implementation of and compliance with-- 7,a7 standards that are at least as effective as the safety and environmental mitigation measures1 as described in items #a through #bi on pages #afg through #afi of the ,final ,statement2 7,b7 reclamation and rehabilitation requirements in accordance with this ,act for the removal from the ,coastal ,plain of all oil and gas development and production facilities1 structures1 and equipment on completion of oil and gas production operations1 except in a case in which the ,secretary determines that those facilities1 structures1 or equipment-- 7i7 would assist in the management of the ,arctic ,national ,wildlife ,refuge2 and 7ii7 are donated to the ,united ,states for that purpose2 and 7,c7 reasonable stipulations for protection of cultural and archaeological resources4 7e7 ,access to public land ,the ,secretary shall-- 7#a7 manage public land in the ,coastal ,plain in accordance with subsections 7a7 and 7b7 of section #haa of the ,alaska ,national ,interest ,lands ,conservation ,act 7#af ,u4,s4,c4 #caba72 and 7#b7 ensure that local residents shall have reasonable access to public land in the ,coastal ,plain for traditional uses4 #h4 ,rights-of-way and easements across the ,coastal ,plain ,for purposes of section #aajb7d77;,a7 of the ,alaska ,national ,interest ,lands ,conservation ,act 7#af ,u4,s4,c4 #cafb7d77;,a771 any rights-of-way or easements across the ,coastal ,plain for the exploration1 development1 production1 or transportation of oil and gas shall be considered to be established incident to the management of the ,coastal ,plain under this section4 #i4 ,conveyance 7a7 ,in general ,notwithstanding section #acjb7;h77#b7 of the ,alaska ,national ,interest ,lands ,conservation ,act 7#af ,u4,s4,c4 #caib7;h77#b771 to remove any cloud on title to land1 and to clarify land ownership patterns1 the ,secretary shall-- 7#a7 to the extent necessary to fulfill the entitlement of the ,kaktovik ,inupiat ,corporation under sections #ab and #ad of the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afaa1 #afac71 as determined by the ,secretary1 convey to that ,corporation the surface estate of the land described in paragraph 7#a7 of ,public ,land ,order #fiei1 in accordance with the terms and conditions of the agreement between the ,secretary1 the ,united ,states ,fish and ,wildlife ,service1 the ,bureau of ,land ,management1 and the ,kaktovik ,inupiat ,corporation1 dated ,january #bb1 #aiic2 and 7#b7 convey to the ,arctic ,slope ,regional ,corporation the remaining subsurface estate to which that ,corporation is entitled under the agreement between that corporation and the ,united ,states1 dated ,august #i1 #aihc4 7b7 ,land adjacent to and southwest of ,,anwr ,as a condition of receipt of the benefits under this ,act1 the ,state of ,alaska shall convey to the ,united ,states all right1 title1 and interest in and to the approximately #eih1gfg acres generally depicted as ,proposed ,trade ,land on the map entitled ,proposed ,,anwr ,exchange1 prepared by the ,state of ,alaska ,department of ,natural ,resources1 and dated ,july #bjae4 #aj4 ,clarification of western coastal boundary of ,,anwr 7a7 ,in general ,the western coastal boundary of the ,arctic ,national ,wildlife ,refuge is defined-- 7#a7 as the boundary originally established as part of the ,alaska ,arctic ,wildlife ,range under ,public ,land ,order #bbad1 dated ,december #f1 #aifj 7#be ,fed4 ,reg4 #abeih72 and 7#b7 consistent with the order of the case styled ,united ,states v4 ,alaska 7#eba ,u4,s4 #a 7#aiig774 7b7 ,revised map ,as soon as practicable after the date of enactment of this ,act1 the ,secretary shall prepare a revised map of the ,arctic ,national ,wildlife ,refuge that reflects the western coastal boundary of the ,arctic ,national ,wildlife ,refuge described in subsection 7a74 #aa4 ,local government impact aid and community service assistance 7a7 ,establishment of fund 7#a7 ,in general ,there is established in the ,treasury a fund to be known as the ,coastal ,plain ,local ,government ,impact ,aid ,assistance ,fund 7referred to in this section as the ,fund74 7#b7 ,use ,amounts in the ,fund may be used only to provide financial assistance in accordance with subsection 7b74 7#c7 ,deposits ,subject to paragraph 7#d71 of amounts of revenues payable to the ,state of ,alaska under section #ce of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aia7 that are derived from rents1 bonuses1 and royalties from ,federal leases and lease sales authorized under this ,act-- 7,a7 #bh1jjj1jjj shall be deposited in the ,fund for the first fiscal year for which amounts are received by the ,united ,states from ,federal leases and lease sales authorized under this ,act2 and 7,b7 #g1jjj1jjj shall be deposited in the ,fund for each fiscal year thereafter4 7#d7 ,limitation on deposits ,the total amount in the ,fund may not exceed #bh1jjj1jjj4 7#e7 ,investment of balances ,the ,secretary of the ,treasury shall invest amounts in the ,fund in interest-bearing securities of the ,united ,states4 7b7 ,financial assistance 7#a7 ,in general ,the ,secretary shall use amounts available from the ,fund to provide timely financial assistance to ,north ,slope ,borough1 ,alaska1 the ,city of ,kaktovik1 ,alaska1 and any other borough1 municipal subdivision1 village1 or other community in the ,state of ,alaska that is directly impacted by exploration for1 or the production of1 oil or gas on the ,coastal ,plain under this ,act1 as determined by the ,secretary4 7#b7 ,use of assistance ,financial assistance provided under this subsection may be used only for-- 7,a7 planning for mitigation of the potential effects of oil and gas exploration and development on environmental1 social1 cultural1 recreational1 and subsistence values2 7,b7 implementing mitigation plans and maintaining mitigation projects2 7,c7 developing1 carrying out1 and maintaining projects and programs that provide new or expanded public facilities and services to address needs and problems associated with the effects described in subparagraph 7,a71 including firefighting1 police1 water1 waste treatment1 medivac1 and medical services2 and 7,d7 the establishment by ,north ,slope ,borough1 ,alaska1 of a coordination office in the ,city of ,kaktovik1 ,alaska-- 7i7 to coordinate with and advise developers on local conditions of1 impacts on1 and the history of the areas utilized for development under this ,act2 and 7ii7 to provide to the ,committee on ,natural ,resources of the ,house of ,representatives and the ,committee on ,energy and ,natural ,resources of the ,senate an annual report that describes the status of coordination between developers and the communities affected by development under this ,act4 7c7 ,application 7#a7 ,in general ,to receive assistance under subsection 7b71 a community described in subsection 7b77#a7 shall submit to the ,secretary an application for assistance1 in such form and under such procedures as the ,secretary may prescribe by regulation4 7#b7 ,north slope borough communities ,a community located in ,north ,slope ,borough1 ,alaska1 may apply for assistance under this section either directly with the ,secretary or through the ,north ,slope ,borough4 7#c7 ,application assistance ,the ,secretary shall work closely with and assist ,north ,slope ,borough1 ,alaska1 and other communities eligible for assistance under this section in developing and submitting applications under this subsection4 7d7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary from the ,fund #g1jjj1jjj for each fiscal year to provide financial assistance under this section4