(18) by striking ``The detailed'' and inserting the
        following:
            ``(2) Initial lease sales.--The detailed'';
            (19) by striking ``section 104(b) of the Naval Petroleum
        Reserves Production Act of 1976 (90 Stat. 304; 42 U.S.C. 6504)''
        and inserting ``section 104(a)''; and
            (20) by adding at the end the following:

    ``(o) Regulations.--As soon as practicable after the date of
enactment of the Energy Policy Act of 2005, the Secretary shall issue
regulations to implement this section.
    ``(p) Waiver of Administration for Conveyed Lands.--
            ``(1) In general.--Notwithstanding section 14(g) of the
        Alaska Native Claims Settlement Act (43 U.S.C. 1613(g))--
                    ``(A) the Secretary of the Interior shall waive
                administration of any oil and gas lease to the extent
                that the lease covers any land in the Reserve in which
                all of the subsurface estate is conveyed to the Arctic
                Slope Regional Corporation (referred to in this
                subsection as the `Corporation');
                    ``(B)(i) in a case in which a conveyance of a
                subsurface estate described in subparagraph (A) does not
                include all of the land covered by the oil and gas
                lease, the person that owns the subsurface estate in any
                particular portion of the land covered by the lease
                shall be entitled to all of the revenues reserved under
                the lease as to that portion, including, without
                limitation, all the royalty payable with respect to oil
                or gas produced from or allocated to that portion;
                          ``(ii) in a case described in clause (i), the
                      Secretary of the Interior shall--
                                    ``(I) segregate the lease into 2
                                leases, 1 of which shall cover only the
                                subsurface estate conveyed to the
                                Corporation; and

[[Page 119 STAT. 708]]

                                    ``(II) waive administration of the
                                lease that covers the subsurface estate
                                conveyed to the Corporation; and
                          ``(iii) the segregation of the lease described
                      in clause (ii)(I) has no effect on the obligations
                      of the lessee under either of the resulting
                      leases, including obligations relating to
                      operations, production, or other circumstances
                      (other than payment of rentals or royalties); and
                    ``(C) nothing in this subsection limits the
                authority of the Secretary of the Interior to manage the
                federally-owned surface estate within the Reserve.''.

    (c) Conforming Amendments.--Section 104 of the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6504) is amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) through (d) as
        subsections (a) through (c), respectively.

SEC. 348. <<NOTE: Alaska. 42 USC 15906.>> NORTH SLOPE SCIENCE
            INITIATIVE.

    (a) Establishment.--
            (1) In general.--The Secretary of the Interior shall
        establish a long-term initiative to be known as the ``North
        Slope Science Initiative'' (referred to in this section as the
        ``Initiative'').
            (2) Purpose.--The purpose of the Initiative shall be to
        implement efforts to coordinate collection of scientific data
        that will provide a better understanding of the terrestrial,
        aquatic, and marine ecosystems of the North Slope of Alaska.

    (b) Objectives.--To ensure that the Initiative is conducted through
a comprehensive science strategy and implementation plan, the Initiative
shall, at a minimum--
            (1) identify and prioritize information needs for inventory,
        monitoring, and research activities to address the individual
        and cumulative effects of past, ongoing, and anticipated
        development activities and environmental change on the North
        Slope;
            (2) develop an understanding of information needs for
        regulatory and land management agencies, local governments, and
        the public;
            (3) focus on prioritization of pressing natural resource
        management and ecosystem information needs, coordination, and
        cooperation among agencies and organizations;
            (4) coordinate ongoing and future inventory, monitoring, and
        research activities to minimize duplication of effort, share
        financial resources and expertise, and assure the collection of
        quality information;
            (5) identify priority needs not addressed by agency science
        programs in effect on the date of enactment of this Act and
        develop a funding strategy to meet those needs;
            (6) provide a consistent approach to high caliber science,
        including inventory, monitoring, and research;
            (7) maintain and improve public and agency access to--
                    (A) accumulated and ongoing research; and
                    (B) contemporary and traditional local knowledge;
                and

[[Page 119 STAT. 709]]

            (8) ensure through appropriate peer review that the science
        conducted by participating agencies and organizations is of the
        highest technical quality.

    (c) Membership.--
            (1) In general.--To ensure comprehensive collection of
        scientific data, in carrying out the Initiative, the Secretary
        shall consult and coordinate with Federal, State, and local
        agencies that have responsibilities for land and resource
        management across the North Slope.
            (2) Cooperative agreements.--The Secretary shall enter into
        cooperative agreements with the State of Alaska, the North Slope
        Borough, the Arctic Slope Regional Corporation, and other
        Federal agencies as appropriate to coordinate efforts, share
        resources, and fund projects under this section.

    (d) Science <<NOTE: Establishment.>> Technical Advisory Panel.--
            (1) In general.--The Initiative shall include a panel to
        provide advice on proposed inventory, monitoring, and research
        functions.
            (2) Membership.--The panel described in paragraph (1) shall
        consist of a representative group of not more than 15 scientists
        and technical experts from diverse professions and interests,
        including the oil and gas industry, subsistence users, Native
        Alaskan entities, conservation organizations, wildlife
        management organizations, and academia, as determined by the
        Secretary.

    (e) Reports.--Not later than 3 years after the date of enactment of
this section and each year thereafter, the Secretary shall publish a
report that describes the studies and findings of the Initiative.
    (f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 349. <<NOTE: 42 USC 15907.>> ORPHANED, ABANDONED, OR IDLED WELLS ON
            FEDERAL LAND.

    (a) In General.--The <<NOTE: Deadline.>> Secretary, in cooperation
with the Secretary of Agriculture, shall establish a program not later
than 1 year after the date of enactment of this Act to remediate,
reclaim, and close orphaned, abandoned, or idled oil and gas wells
located on land administered by the land management agencies within the
Department of the Interior and the Department of Agriculture.

    (b) Activities.--The program under subsection (a) shall--
            (1) include a means of ranking orphaned, abandoned, or idled
        wells sites for priority in remediation, reclamation, and
        closure, based on public health and safety, potential
        environmental harm, and other land use priorities;
            (2) provide for identification and recovery of the costs of
        remediation, reclamation, and closure from persons or other
        entities currently providing a bond or other financial assurance
        required under State or Federal law for an oil or gas well that
        is orphaned, abandoned, or idled; and
            (3) provide for recovery from the persons or entities
        identified under paragraph (2), or their sureties or guarantors,
        of the costs of remediation, reclamation, and closure of such
        wells.

    (c) Cooperation and Consultations.--In carrying out the program
under subsection (a), the Secretary shall--

[[Page 119 STAT. 710]]

            (1) work cooperatively with the Secretary of Agriculture and
        the States within which Federal land is located; and
            (2) consult with the Secretary of Energy and the Interstate
        Oil and Gas Compact Commission.

    (d) Plan.--Not <<NOTE: Deadline.>> later than 1 year after the date
of enactment of this Act, the Secretary, in cooperation with the
Secretary of Agriculture, shall submit to Congress a plan for carrying
out the program under subsection (a).

    (e) Idled Well.--For the purposes of this section, a well is idled
if--
            (1) the well has been nonoperational for at least 7 years;
        and
            (2) there is no anticipated beneficial use for the well.

    (f) Federal Reimbursement for Orphaned Well Reclamation Pilot
Program.--
            (1) Reimbursement for remediating, reclaiming, and closing
        wells on land subject to a new lease.--The Secretary shall carry
        out a pilot program under which, in issuing a new oil and gas
        lease on federally owned land on which 1 or more orphaned wells
        are located, the Secretary--
                    (A) may require, other than as a condition of the
                lease, that the lessee remediate, reclaim, and close in
                accordance with standards established by the Secretary,
                all orphaned wells on the land leased; and
                    (B) shall develop a program to reimburse a lessee,
                through a royalty credit against the Federal share of
                royalties owed or other means, for the reasonable actual
                costs of remediating, reclaiming, and closing the
                orphaned wells pursuant to that requirement.
            (2) Reimbursement for reclaiming orphaned wells on other
        land.--In carrying out this subsection, the Secretary--
                    (A) may authorize any lessee under an oil and gas
                lease on federally owned land to reclaim in accordance
                with the Secretary's standards--
                          (i) an orphaned well on unleased federally
                      owned land; or
                          (ii) an orphaned well located on an existing
                      lease on federally owned land for the reclamation
                      of which the lessee is not legally responsible;
                      and
                    (B) shall develop a program to provide reimbursement
                of 100 percent of the reasonable actual costs of
                remediating, reclaiming, and closing the orphaned well,
                through credits against the Federal share of royalties
                or other means.
            (3) Regulations.--The Secretary may issue such regulations
        as are appropriate to carry out this subsection.

    (g) Technical Assistance Program for Non-Federal Land.--
            (1) In general.--The Secretary of Energy shall establish a
        program to provide technical and financial assistance to oil and
        gas producing States to facilitate State efforts over a 10-year
        period to ensure a practical and economical remedy for
        environmental problems caused by orphaned or abandoned oil and
        gas exploration or production well sites on State or private
        land.
            (2) Assistance.--The Secretary of Energy shall work with the
        States, through the Interstate Oil and Gas Compact Commission,
        to assist the States in quantifying and mitigating

[[Page 119 STAT. 711]]

        environmental risks of onshore orphaned or abandoned oil or gas
        wells on State and private land.
            (3) Activities.--The program under paragraph (1) shall
        include--
                    (A) mechanisms to facilitate identification, if
                feasible, of the persons currently providing a bond or
                other form of financial assurance required under State
                or Federal law for an oil or gas well that is orphaned
                or abandoned;
                    (B) criteria for ranking orphaned or abandoned well
                sites based on factors such as public health and safety,
                potential environmental harm, and other land use
                priorities;
                    (C) information and training programs on best
                practices for remediation of different types of sites;
                and
                    (D) funding of State mitigation efforts on a cost-
                shared basis.

    (h) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to
        carry out this section $25,000,000 for each of fiscal years 2006
        through 2010.
            (2) Use.--Of the amounts authorized under paragraph (1),
        $5,000,000 are authorized for each fiscal year for activities
        under subsection (f).

SEC. 350. COMBINED HYDROCARBON LEASING.

    (a) Special Provisions Regarding Leasing.--Section 17(b)(2) of the
Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:

    ``(B) For any area that contains any combination of tar sand and oil
or gas (or both), the Secretary may issue under this Act, separately--
            ``(i) a lease for exploration for and extraction of tar
        sand; and
            ``(ii) a lease for exploration for and development of oil
        and gas.

    ``(C) A lease issued for tar sand shall be issued using the same
bidding process, annual rental, and posting period as a lease issued for
oil and gas, except that the minimum acceptable bid required for a lease
issued for tar sand shall be $2 per acre.
    ``(D) The Secretary may waive, suspend, or alter any requirement
under section 26 that a permittee under a permit authorizing prospecting
for tar sand must exercise due diligence, to promote any resource
covered by a combined hydrocarbon lease.''.
    (b) Conforming Amendment.--Section 17(b)(1)(B) of the Mineral
Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the second sentence
by inserting ``, subject to paragraph (2)(B),'' after ``Secretary''.
    (c) Regulations.--Not <<NOTE: Deadline. 30 USC 226 note.>> later
than 45 days after the date of enactment of this Act, the Secretary
shall issue final regulations to implement this section.

SEC. 351. <<NOTE: National Geographical and Geophysical Data
            Preservation Program Act of 2005. 42 USC
            15908.>> PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.

    (a) Short Title.--This section may be cited as the ``National
Geological and Geophysical Data Preservation Program Act of 2005''.

[[Page 119 STAT. 712]]

    (b) Program.--The Secretary shall carry out a National Geological
and Geophysical Data Preservation Program in accordance with this
section--
            (1) to archive geologic, geophysical, and engineering data,
        maps, well logs, and samples;
            (2) to provide a national catalog of such archival material;
        and
            (3) to provide technical and financial assistance related to
        the archival material.

    (c) Plan.--Not <<NOTE: Deadline.>> later than 1 year after the date
of enactment of this Act, the Secretary shall submit to Congress a plan
for the implementation of the Program.

    (d) Data Archive System.--
            (1) Establishment.--The Secretary shall establish, as a
        component of the Program, a data archive system to provide for
        the storage, preservation, and archiving of subsurface, surface,
        geological, geophysical, and engineering data and samples. The
        Secretary, in consultation with the Advisory Committee, shall
        develop guidelines relating to the data archive system,
        including the types of data and samples to be preserved.
            (2) System components.--The system shall be comprised of
        State agencies that elect to be part of the system and agencies
        within the Department of the Interior that maintain geological
        and geophysical data and samples that are designated by the
        Secretary in accordance with this subsection. The Program shall
        provide for the storage of data and samples through data
        repositories operated by such agencies.
            (3) Limitation of designation.--The Secretary may not
        designate a State agency as a component of the data archive
        system unless that agency is the agency that acts as the
        geological survey in the State.
            (4) Data from federal land.--The data archive system shall
        provide for the archiving of relevant subsurface data and
        samples obtained from Federal land--
                    (A) in the most appropriate repository designated
                under paragraph (2), with preference being given to
                archiving data in the State in which the data were
                collected; and
                    (B) consistent with all applicable law and
                requirements relating to confidentiality and proprietary
                data.

    (e) National Catalog.--
            (1) In general.--As soon as practicable after the date of
        enactment of this Act, the Secretary shall develop and maintain,
        as a component of the Program, a national catalog that
        identifies--
                    (A) data and samples available in the data archive
                system established under subsection (d);
                    (B) the repository for particular material in the
                system; and
                    (C) the means of accessing the material.
            (2) Availability.--The Secretary shall make the national
        catalog accessible to the public on the site of the Survey on
        the Internet, consistent with all applicable requirements
        related to confidentiality and proprietary data.

    (f) Advisory Committee.--
            (1) In general.--The Advisory Committee shall advise the
        Secretary on planning and implementation of the Program.

[[Page 119 STAT. 713]]

            (2) New duties.--In addition to its duties under the
        National Geologic Mapping Act of 1992 (43 U.S.C. 31a et seq.),
        the Advisory Committee shall perform the following duties:
                    (A) Advise the Secretary on developing guidelines
                and procedures for providing assistance for facilities
                under subsection (g)(1).
                    (B) Review and critique the draft implementation
                plan prepared by the Secretary under subsection (c).
                    (C) Identify useful studies of data archived under
                the Program that will advance understanding of the
                Nation's energy and mineral resources, geologic hazards,
                and engineering geology.
                    (D) Review the progress of the Program in archiving
                significant data and preventing the loss of such data,
                and the scientific progress of the studies funded under
                the Program.
                    (E) Include in the annual report to the Secretary
                required under section 5(b)(3) of the National Geologic
                Mapping Act of 1992 (43 U.S.C. 31d(b)(3)) an evaluation
                of the progress of the Program toward fulfilling the
                purposes of the Program under subsection (b).

    (g) Financial Assistance.--
            (1) Archive facilities.--Subject to the availability of
        appropriations, the Secretary shall provide financial assistance
        to a State agency that is designated under subsection (d)(2) for
        providing facilities to archive energy material.
            (2) Studies.--Subject to the availability of appropriations,
        the Secretary shall provide financial assistance to any State
        agency designated under subsection (d)(2) for studies and
        technical assistance activities that enhance understanding,
        interpretation, and use of materials archived in the data
        archive system established under subsection (d).
            (3) Federal share.--The Federal share of the cost of an
        activity carried out with assistance under this subsection shall
        be not more than 50 percent of the total cost of the activity.
            (4) Private contributions.--
        The <<NOTE: Applicability.>> Secretary shall apply to the non-
        Federal share of the cost of an activity carried out with
        assistance under this subsection the value of private
        contributions of property and services used for that activity.

    (h) Report.--The Secretary shall include in each report under
section 8 of the National Geologic Mapping Act of 1992 (43 U.S.C. 31g)--
            (1) a description of the status of the Program;
            (2) an evaluation of the progress achieved in developing the
        Program during the period covered by the report; and
            (3) any recommendations for legislative or other action the
        Secretary considers necessary and appropriate to fulfill the
        purposes of the Program under subsection (b).

    (i) Maintenance of State Effort.--It is the intent of Congress that
the States not use this section as an opportunity to reduce State
resources applied to the activities that are the subject of the Program.
    (j) Definitions.--In this section:
            (1) Advisory committee.--The term ``Advisory Committee''
        means the advisory committee established under section 5 of the
        National Geologic Mapping Act of 1992 (43 U.S.C. 31d).

[[Page 119 STAT. 714]]

            (2) Program.--The term ``Program'' means the National
        Geological and Geophysical Data Preservation Program carried out
        under this section.
            (3) Secretary.--The term ``Secretary'' means the Secretary
        of the Interior, acting through the Director of the United
        States Geological Survey.
            (4) Survey.--The term ``Survey'' means the United States
        Geological Survey.

    (k) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $30,000,000 for each of fiscal
years 2006 through 2010.

SEC. 352. OIL AND GAS LEASE ACREAGE LIMITATIONS.

    Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) is
amended by inserting after ``acreage held in special tar sand areas''
the following: ``, and acreage under any lease any portion of which has
been committed to a federally approved unit or cooperative plan or
communitization agreement or for which royalty (including compensatory
royalty or royalty in-kind) was paid in the preceding calendar year,''.

SEC. 353. <<NOTE: 42 USC 15909.>> GAS HYDRATE PRODUCTION INCENTIVE.

    (a) Purpose.--The purpose of this section is to promote natural gas
production from the natural gas hydrate resources on the outer
Continental Shelf and Federal lands in Alaska by providing royalty
incentives.
    (b) Suspension of Royalties.--
            (1) In general.--The Secretary may grant royalty relief in
        accordance with this section for natural gas produced from gas
        hydrate resources under an eligible lease.
            (2) Eligible leases.--A lease shall be an eligible lease for
        purposes of this section if--
                    (A) it is issued under the Outer Continental Shelf
                Lands Act (43 U.S.C. 1331 et seq.), or is an oil and gas
                lease issued for onshore Federal lands in Alaska;
                    (B) it is issued prior to January 1, 2016; and
                    (C) production under the lease of natural gas from
                gas hydrate resources commences prior to January 1,
                2018.
            (3) Amount of relief.--The Secretary shall conduct a
        rulemaking and grant royalty relief under this section as a
        suspension volume if the Secretary determines that such royalty
        relief would encourage production of natural gas from gas
        hydrate resources from an eligible lease. The maximum suspension
        volume shall be 30 billion cubic feet of natural gas per lease.
        Such relief shall be in addition to any other royalty relief
        under any other provision applicable to the lease that does not
        specifically grant a gas hydrate production incentive. Such
        royalty suspension volume shall be applied to any eligible
        production occurring on or after the date of publication of the
        advanced notice of proposed rulemaking.
            (4) Limitation.--The Secretary may place limitations on
        royalty relief granted under this section based on market price.

    (c) Application.--This section shall apply to any eligible lease
issued before, on, or after the date of enactment of this Act.
    (d) Rulemakings.--
            (1) Requirement.--
        The <<NOTE: Publication. Notices. Deadlines.>> Secretary shall
        publish the advanced notice of proposed rulemaking within 180
        days after the date of enactment of this Act and complete the
        rulemaking

[[Page 119 STAT. 715]]

        implementing this section within 365 days after the date of
        enactment of this Act.
            (2) Gas hydrate resources defined.--Such regulations shall
        define the term ``gas hydrate resources'' to include both the
        natural gas content of gas hydrates within the hydrate stability
        zone and free natural gas trapped by and beneath the hydrate
        stability zone.

    (e) Review.--Not <<NOTE: Deadline. Reports.>> later than 365 days
after the date of enactment of this Act, the Secretary, in consultation
with the Secretary of Energy, shall carry out a review of, and submit to
Congress a report on, further opportunities to enhance production of
natural gas from gas hydrate resources on the outer Continental Shelf
and on Federal lands in Alaska through the provision of other production
incentives or through technical or financial assistance.

SEC. 354. <<NOTE: 42 USC 15910.>> ENHANCED OIL AND NATURAL GAS
            PRODUCTION THROUGH CARBON DIOXIDE INJECTION.

    (a) Production Incentive.--
            (1) Findings.--Congress finds the following:
                    (A) Approximately two-thirds of the original oil in
                place in the United States remains unproduced.
                    (B) Enhanced oil and natural gas production from the
                sequestering of carbon dioxide and other appropriate
                gases has the potential to increase oil and natural gas
                production.
                    (C) Capturing and productively using carbon dioxide
                would help reduce the carbon intensity of the economy.
            (2) Purpose.--The purpose of this section is--
                    (A) to promote the capturing, transportation, and
                injection of produced carbon dioxide, natural carbon
                dioxide, and other appropriate gases or other matter for
                sequestration into oil and gas fields; and
                    (B) to promote oil and natural gas production from
                the outer Continental Shelf and onshore Federal lands
                under lease by providing royalty incentives to use
                enhanced recovery techniques using injection of the
                substances referred to in subparagraph (A).

    (b) Suspension of Royalties.--
            (1) In general.--If the Secretary determines that reduction
        of the royalty under a Federal oil and gas lease that is an
        eligible lease is in the public interest and promotes the
        purposes of this section, the Secretary shall undertake a
        rulemaking to provide for such reduction for an eligible lease.
            (2) Rulemakings.--
        The <<NOTE: Publication. Notices. Deadlines.>> Secretary shall
        publish the advanced notice of proposed rulemaking within 180
        days after the date of enactment of this Act and complete the
        rulemaking implementing this section within 365 days after the
        date of enactment of this Act.
            (3) Eligible leases.--A lease shall be an eligible lease for
        purposes of this section if--
                    (A) it is a lease for production of oil and gas from
                the outer Continental Shelf or Federal onshore lands;
                    (B) the injection of the substances referred to in
                subsection (a)(2)(A) will be used as an enhanced
                recovery technique on such lease; and
                    (C) the Secretary determines that the lease contains
                oil or gas that would not likely be produced without the
                royalty reduction provided under this section.

[[Page 119 STAT. 716]]

            (4) Amount of relief.--The rulemaking shall provide for a
        suspension volume, which shall not exceed 5,000,000 barrels of
        oil equivalent for each eligible lease. Such suspension volume
        shall be applied to any production from an eligible lease
        occurring on or after the date of publication of any advanced
        notice of proposed rulemaking under this subsection.
            (5) Limitation.--The Secretary may place limitations on the
        royalty reduction granted under this section based on market
        price.
            (6) Application.--This section shall apply to any eligible
        lease issued before, on, or after the date of enactment of this
        Act.

    (c) Demonstration Program.--
            (1) Establishment.--
                    (A) In general.--The Secretary of Energy shall
                establish a competitive grant program to provide grants
                to producers of oil and gas to carry out projects to
                inject carbon dioxide for the purpose of enhancing
                recovery of oil or natural gas while increasing the
                sequestration of carbon dioxide.
                    (B) Projects.--The demonstration program shall
                provide for--
                          (i) not more than 10 projects in the Willistin
                      Basin in North Dakota and Montana; and
                          (ii) 1 project in the Cook Inlet Basin in
                      Alaska.
            (2) Requirements.--
                    (A) In general.--The Secretary of Energy shall issue
                requirements relating to applications for grants under
                paragraph (1).
                    (B) Rulemaking.--The issuance of requirements under
                subparagraph (A) shall not require a rulemaking.
                    (C) Minimum requirements.--At a minimum, the
                Secretary shall require under subparagraph (A) that an
                application for a grant include--
                          (i) a description of the project proposed in
                      the application;
                          (ii) an estimate of the production increase
                      and the duration of the production increase from
                      the project, as compared to conventional recovery
                      techniques, including water flooding;
                          (iii) an estimate of the carbon dioxide
                      sequestered by project, over the life of the
                      project;
                          (iv) a plan to collect and disseminate data
                      relating to each project to be funded by the
                      grant;
                          (v) a description of the means by which the
                      project will be sustainable without Federal
                      assistance after the completion of the term of the
                      grant;
                          (vi) a complete description of the costs of
                      the project, including acquisition, construction,
                      operation, and maintenance costs over the expected
                      life of the project;
                          (vii) a description of which costs of the
                      project will be supported by Federal assistance
                      under this section; and
                          (viii) a description of any secondary or
                      tertiary recovery efforts in the field and the
                      efficacy of water flood recovery techniques used.

[[Page 119 STAT. 717]]

            (3) Partners.--An applicant for a grant under paragraph (1)
        may carry out a project under a pilot program in partnership
        with 1 or more other public or private entities.
            (4) Selection criteria.--In evaluating applications under
        this subsection, the Secretary of Energy shall--
                    (A) consider the previous experience with similar
                projects of each applicant; and
                    (B) give priority consideration to applications
                that--
                          (i) are most likely to maximize production of
                      oil and gas in a cost-effective manner;
                          (ii) sequester significant quantities of
                      carbon dioxide from anthropogenic sources;
                          (iii) demonstrate the greatest commitment on
                      the part of the applicant to ensure funding for
                      the proposed project and the greatest likelihood
                      that the project will be maintained or expanded
                      after Federal assistance under this section is
                      completed; and
                          (iv) minimize any adverse environmental
                      effects from the project.
            (5) Demonstration program requirements.--
                    (A) Maximum amount.--The Secretary of Energy shall
                not provide more than $3,000,000 in Federal assistance
                under this subsection to any applicant.
                    (B) Cost sharing.--The Secretary of Energy shall
                require cost-sharing under this subsection in accordance
                with section 988.
                    (C) Period of grants.--
                          (i) In general.--A <<NOTE: Deadline.>> project
                      funded by a grant under this subsection shall
                      begin construction not later than 2 years after
                      the date of provision of the grant, but in any
                      case not later than December 31, 2010.
                          (ii) Term.--The Secretary shall not provide
                      grant funds to any applicant under this subsection
                      for a period of more than 5 years.
            (6) Transfer of <<NOTE: Procedures.>> information and
        knowledge.--The Secretary of Energy shall establish mechanisms
        to ensure that the information and knowledge gained by
        participants in the program under this subsection are
        transferred among other participants and interested persons,
        including other applicants that submitted applications for a
        grant under this subsection.
            (7) Schedule.--
                    (A) Publication.--Not <<NOTE: Deadline. Federal
                Register, publication.>> later than 180 days after the
                date of enactment of this Act, the Secretary of Energy
                shall publish in the Federal Register, and elsewhere, as
                appropriate, a request for applications to carry out
                projects under this subsection.
                    (B) Date for applications.--
                An <<NOTE: Deadline.>> application for a grant under
                this subsection shall be submitted not later than 180
                days after the date of publication of the request under
                subparagraph (A).
                    (C) Selection.--After the date by which applications
                for grants are required to be submitted under
                subparagraph (B), the Secretary of Energy, in a timely
                manner, shall select, after peer review and based on the
                criteria under paragraph (4), those projects to be
                awarded a grant under this subsection.

[[Page 119 STAT. 718]]

    (d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

    (a) Assessment.--The Secretary of Energy shall assess the economic
implications of the dependence of the State of Hawaii on oil as the
principal source of energy for the State, including--
            (1) the short- and long-term prospects for crude oil supply
        disruption and price volatility and potential impacts on the
        economy of Hawaii;
            (2) the economic relationship between oil-fired generation
        of electricity from residual fuel and refined petroleum products
        consumed for ground, marine, and air transportation;
            (3) the technical and economic feasibility of increasing the
        contribution of renewable energy resources for generation of
        electricity, on an island-by-island basis, including--
                    (A) siting and facility configuration;
                    (B) environmental, operational, and safety
                considerations;
                    (C) the availability of technology;
                    (D) the effects on the utility system, including
                reliability;
                    (E) infrastructure and transport requirements;
                    (F) community support; and
                    (G) other factors affecting the economic impact of
                such an increase and any effect on the economic
                relationship described in paragraph (2);
            (4) the technical and economic feasibility of using
        liquefied natural gas to displace residual fuel oil for electric
        generation, including neighbor island opportunities, and the
        effect of the displacement on the economic relationship
        described in paragraph (2), including--
                    (A) the availability of supply;
                    (B) siting and facility configuration for onshore
                and offshore liquefied natural gas receiving terminals;
                    (C) the factors described in subparagraphs (B)
                through (F) of paragraph (3); and
                    (D) other economic factors;
            (5) the technical and economic feasibility of using
        renewable energy sources (including hydrogen) for ground,
        marine, and air transportation energy applications to displace
        the use of refined petroleum products, on an island-by-island
        basis, and the economic impact of the displacement on the
        relationship described in paragraph (2); and
            (6) an island-by-island approach to--
                    (A) the development of hydrogen from renewable
                resources; and
                    (B) the application of hydrogen to the energy needs
                of Hawaii.

    (b) Contracting Authority.--The Secretary of Energy may carry out
the assessment under subsection (a) directly or, in whole or in part,
through 1 or more contracts with qualified public or private entities.

[[Page 119 STAT. 719]]

    (c) Report.--Not later than 300 days after the date of enactment of
this Act, the Secretary of Energy shall prepare (in consultation with
agencies of the State of Hawaii and other stakeholders, as appropriate),
and submit to Congress, a report describing the findings, conclusions,
and recommendations resulting from the assessment.
    (d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

SEC. 356. <<NOTE: 42 USC 15911.>> DENALI COMMISSION.

    (a) Definition of Commission.--In this section, the term
``Commission'' means the Denali Commission established by the Denali
Commission Act of 1998 (42 U.S.C. 3121 note; Public Law 105-277).
    (b) Energy Programs.--The Commission shall use amounts made
available under subsection (d) to carry out energy programs, including--
            (1) energy generation and development, including--
                    (A) fuel cells, hydroelectric, solar, wind, wave,
                and tidal energy; and
                    (B) alternative energy sources;
            (2) the construction of energy transmission, including
        interties;
            (3) the replacement and cleanup of fuel tanks;
            (4) the construction of fuel transportation networks and
        related facilities;
            (5) power cost equalization programs; and
            (6) projects using coal as a fuel, including coal
        gasification projects.

    (c) Open Meetings.--
            (1) In general.--Except as provided in paragraph (2), a
        meeting of the Commission shall be open to the public if--
                    (A) the Commission members take action on behalf of
                the Commission; or
                    (B) the deliberations of the Commission determine,
                or result in the joint conduct or disposition of,
                official Commission business.
            (2) Exceptions.--Paragraph (1) shall not apply to any
        portion of a Commission meeting for which the Commission, in
        public session, votes to close the meeting for the reasons
        described in paragraph (2), (4), (5), or (6) of subsection (c)
        of section 552b of title 5, United States Code.
            (3) Public notice.--
                    (A) In general.--At <<NOTE: Deadline.>> least 1 week
                before a meeting of the Commission, the Commission shall
                make a public announcement of the meeting that
                describes--
                          (i) the time, place, and subject matter of the
                      meeting;
                          (ii) whether the meeting is to be open or
                      closed to the public; and
                          (iii) the name and telephone number of an
                      appropriate person to respond to requests for
                      information about the meeting.
                    (B) Additional notice.--The Commission shall make a
                public announcement of any change to the information

[[Page 119 STAT. 720]]

                made available under subparagraph (A) at the earliest
                practicable time.
            (4) Minutes.--The Commission shall keep, and make available
        to the public, a transcript, electronic recording, or minutes
        from each Commission meeting, except for portions of the meeting
        closed under paragraph (2).

    (d) Authorization of Appropriations.--There is authorized to be
appropriated to the Commission not more than $55,000,000 for each of
fiscal years 2006 through 2015 to carry out subsection (b).

SEC. 357. <<NOTE: 42 USC 15912.>> 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. <<NOTE: Public information.>> The report shall
be publicly available and updated at least every 5 years.

                   Subtitle F--Access to Federal Lands

SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.

    (a) Review of Onshore Oil and Gas Leasing Practices.--
            (1) In general.--The Secretary of the Interior, in
        consultation with the Secretary of Agriculture with respect to
        National Forest System lands under the jurisdiction of the
        Department of Agriculture, shall perform an internal review of
        current Federal onshore oil and gas leasing and permitting
        practices.
            (2) Inclusions.--The review shall include the process for--
                    (A) accepting or rejecting offers to lease;

[[Page 119 STAT. 721]]

                    (B) administrative appeals of decisions or orders of
                officers or employees of the Bureau of Land Management
                with respect to a Federal oil or gas lease;
                    (C) considering surface use plans of operation,
                including the timeframes in which the plans are
                considered, and any recommendations for improving and
                expediting the process; and
                    (D) identifying stipulations to address site-
                specific concerns and conditions, including those
                stipulations relating to the environment and resource
                use conflicts.

    (b) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of the Interior and the Secretary of Agriculture
shall transmit a report to Congress that describes--
            (1) actions taken under section 3 of Executive Order No.
        13212 (42 U.S.C. 13201 note); and
            (2) actions taken or any plans to improve the Federal
        onshore oil and gas leasing program.

SEC. 362. <<NOTE: 42 USC 15921.>> MANAGEMENT OF FEDERAL OIL AND GAS
            LEASING PROGRAMS.

    (a) Timely Action on Leases and Permits.--
            (1) Secretary of the interior.--To ensure timely action on
        oil and gas leases and applications for permits to drill on land
        otherwise available for leasing, the Secretary of the Interior
        (referred to in this section as the ``Secretary'') shall--
                    (A) ensure expeditious compliance with section
                102(2)(C) of the National Environmental Policy Act of
                1969 (42 U.S.C. 4332(2)(C)) and any other applicable
                environmental and cultural resources laws;
                    (B) improve consultation and coordination with the
                States and the public; and
                    (C) improve the collection, storage, and retrieval
                of information relating to the oil and gas leasing
                activities.
            (2) Secretary of agriculture.--To ensure timely action on
        oil and gas lease applications for permits to drill on land
        otherwise available for leasing, the Secretary of Agriculture
        shall--
                    (A) ensure expeditious compliance with all
                applicable environmental and cultural resources laws;
                and
                    (B) improve the collection, storage, and retrieval
                of information relating to the oil and gas leasing
                activities.

    (b) Best Management Practices.--
            (1) In general.--Not <<NOTE: Deadline.>> later than 18
        months after the date of enactment of this Act, the Secretary
        shall develop and implement best management practices to--
                    (A) improve the administration of the onshore oil
                and gas leasing program under the Mineral Leasing Act
                (30 U.S.C. 181 et seq.); and
                    (B) ensure timely action on oil and gas leases and
                applications for permits to drill on land otherwise
                available for leasing.
            (2) Considerations.--In developing the best management
        practices under paragraph (1), the Secretary shall consider any
        recommendations from the review under section 361.
            (3) Regulations.--Not <<NOTE: Deadline.>> later than 180
        days after the development of the best management practices
        under paragraph (1), the Secretary shall publish, for public
        comment,

[[Page 119 STAT. 722]]

        proposed regulations that set forth specific timeframes for
        processing leases and applications in accordance with the best
        management practices, including deadlines for--
                    (A) approving or disapproving--
                          (i) resource management plans and related
                      documents;
                          (ii) lease applications;
                          (iii) applications for permits to drill; and
                          (iv) surface use plans; and
                    (B) related administrative appeals.

    (c) Improved Enforcement.--The Secretary and the Secretary of
Agriculture shall improve inspection and enforcement of oil and gas
activities, including enforcement of terms and conditions in permits to
drill on land under the jurisdiction of the Secretary and the Secretary
of Agriculture, respectively.
    (d) Authorization of Appropriations.--In addition to amounts made
available to carry out activities relating to oil and gas leasing on
public land administered by the Secretary and National Forest System
land administered by the Secretary of Agriculture, there are authorized
to be appropriated for each of fiscal years 2006 through 2010--
            (1) to the Secretary, acting through the Director of the
        Bureau of Land Management--
                    (A) $40,000,000 to carry out subsections (a)(1) and
                (b); and
                    (B) $20,000,000 to carry out subsection (c);
            (2) to the Secretary, acting through the Director of the
        United States Fish and Wildlife Service, $5,000,000 to carry out
        subsection (a)(1); and
            (3) to the Secretary of Agriculture, acting through the
        Chief of the Forest Service, $5,000,000 to carry out subsections
        (a)(2) and (c).

SEC. 363. <<NOTE: 42 USC 15922.>> CONSULTATION REGARDING OIL AND GAS
            LEASING ON PUBLIC LAND.

    (a) In General.--Not <<NOTE: Deadline. Memorandum.>> later than 180
days after the date of enactment of this Act, the Secretary of the
Interior and the Secretary of Agriculture shall enter into a memorandum
of understanding regarding oil and gas leasing on--
            (1) public land under the jurisdiction of the Secretary of
        the Interior; and
            (2) National Forest System land under the jurisdiction of
        the Secretary of Agriculture.

    (b) Contents.--The memorandum of understanding shall include
provisions that--
            (1) establish administrative procedures and lines of
        authority that ensure timely processing of--
                    (A) oil and gas lease applications;
                    (B) surface use plans of operation, including steps
                for processing surface use plans; and
                    (C) applications for permits to drill consistent
                with applicable timelines;
            (2) eliminate duplication of effort by providing for
        coordination of planning and environmental compliance efforts;
            (3) ensure that lease stipulations are--
                    (A) applied consistently;
                    (B) coordinated between agencies; and

[[Page 119 STAT. 723]]

                    (C) only as restrictive as necessary to protect the
                resource for which the stipulations are applied;
            (4) establish a joint data retrieval system that is capable
        of--
                    (A) tracking applications and formal requests made
                in accordance with procedures of the Federal onshore oil
                and gas leasing program; and
                    (B) providing information regarding the status of
                the applications and requests within the Department of
                the Interior and the Department of Agriculture; and
            (5) establish a joint geographic information system mapping
        system for use in--
                    (A) tracking surface resource values to aid in
                resource management; and
                    (B) processing surface use plans of operation and
                applications for permits to drill.

SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL
            LAND.

    (a) Assessment.--Section 604 of the Energy Act of 2000 (42 U.S.C.
6217) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                          (i) by striking ``reserve''; and
                          (ii) by striking ``and'' after the semicolon;
                      and
                    (B) by striking paragraph (2) and inserting the
                following:
            ``(2) the extent and nature of any restrictions or
        impediments to the development of the resources, including--
                    ``(A) impediments to the timely granting of leases;
                    ``(B) post-lease restrictions, impediments, or
                delays on development for conditions of approval,
                applications for permits to drill, or processing of
                environmental permits; and
                    ``(C) permits or restrictions associated with
                transporting the resources for entry into commerce; and
            ``(3) the quantity of resources not produced or introduced
        into commerce because of the restrictions.'';
            (2) in subsection (b)--
                    (A) by striking ``reserve'' and inserting
                ``resource''; and
                    (B) by striking ``publically'' and inserting
                ``publicly''; and
            (3) by striking subsection (d) and inserting the following:

    ``(d) Assessments.--Using the inventory, the Secretary of Energy
shall make periodic assessments of economically recoverable resources
accounting for a range of parameters such as current costs, commodity
prices, technology, and regulations.''.
    (b) Methodology.--The <<NOTE: 42 USC 15923.>> Secretary of the
Interior shall use the same assessment methodology across all geological
provinces, areas, and regions in preparing and issuing national
geological assessments to ensure accurate comparisons of geological
resources.

SEC. 365. <<NOTE: 42 USC 15924.>> PILOT PROJECT TO IMPROVE FEDERAL
            PERMIT COORDINATION.

    (a) Establishment.--The Secretary of the Interior (referred to in
this section as the ``Secretary'') shall establish a Federal Permit
Streamlining Pilot Project (referred to in this section as the ``Pilot
Project'').

[[Page 119 STAT. 724]]

    (b) Memorandum of Understanding.--
            (1) In general.--Not <<NOTE: Deadline.>> later than 90 days
        after the date of enactment of this Act, the Secretary shall
        enter into a memorandum of understanding for purposes of this
        section with--
                    (A) the Secretary of Agriculture;
                    (B) the Administrator of the Environmental
                Protection Agency; and
                    (C) the Chief of Engineers.
            (2) State participation.--The Secretary may request that the
        Governors of Wyoming, Montana, Colorado, Utah, and New Mexico be
        signatories to the memorandum of understanding.

    (c) Designation of Qualified Staff.--
            (1) In general.--Not <<NOTE: Deadline.>> later than 30 days
        after the date of the signing of the memorandum of understanding
        under subsection (b), all Federal signatory parties shall, if
        appropriate, assign to each of the field offices identified in
        subsection (d) an employee who has expertise in the regulatory
        issues relating to the office in which the employee is employed,
        including, as applicable, particular expertise in--
                    (A) the consultations and the preparation of
                biological opinions under section 7 of the Endangered
                Species Act of 1973 (16 U.S.C. 1536);
                    (B) permits under section 404 of Federal Water
                Pollution Control Act (33 U.S.C. 1344);
                    (C) regulatory matters under the Clean Air Act (42
                U.S.C. 7401 et seq.);
                    (D) planning under the National Forest Management
                Act of 1976 (16 U.S.C. 472a et seq.); and
                    (E) the preparation of analyses under the National
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et
                seq.).
            (2) Duties.--Each employee assigned under paragraph (1)
        shall--
                    (A) <<NOTE: Deadline.>> not later than 90 days after
                the date of assignment, report to the Bureau of Land
                Management Field Managers in the office to which the
                employee is assigned;
                    (B) be responsible for all issues relating to the
                jurisdiction of the home office or agency of the
                employee; and
                    (C) participate as part of the team of personnel
                working on proposed energy projects, planning, and
                environmental analyses.

    (d) Field Offices.--The following Bureau of Land Management Field
Offices shall serve as the Pilot Project offices:
            (1) Rawlins, Wyoming.
            (2) Buffalo, Wyoming.
            (3) Miles City, Montana.
            (4) Farmington, New Mexico.
            (5) Carlsbad, New Mexico.
            (6) Grand Junction/Glenwood Springs, Colorado.
            (7) Vernal, Utah.

    (e) Reports.--Not later than 3 years after the date of enactment of
this Act, the Secretary shall submit to Congress a report that--
            (1) outlines the results of the Pilot Project to date; and
            (2) makes a recommendation to the President regarding
        whether the Pilot Project should be implemented throughout the
        United States.

[[Page 119 STAT. 725]]

    (f) Additional Personnel.--The Secretary shall assign to each field
office identified in subsection (d) any additional personnel that are
necessary to ensure the effective implementation of--
            (1) the Pilot Project; and
            (2) other programs administered by the field offices,
        including inspection and enforcement relating to energy
        development on Federal land, in accordance with the multiple use
        mandate of the Federal Land Policy and Management Act of 1976
        (43 U.S.C. 1701 et seq.).

    (g) Permit Processing Improvement Fund.--Section 35 of the Mineral
Leasing Act (30 U.S.C. 191) is amended by adding at the end the
following:
    ``(c)(1) Notwithstanding the first sentence of subsection (a), any
rentals received from leases in any State (other than the State of
Alaska) on or after the date of enactment of this subsection shall be
deposited in the Treasury, to be allocated in accordance with paragraph
(2).
    ``(2) Of the amounts deposited in the Treasury under paragraph (1)--
            ``(A) 50 percent shall be paid by the Secretary of the
        Treasury to the State within the boundaries of which the leased
        land is located or the deposits were derived; and
            ``(B) 50 percent shall be deposited in a special fund in the
        Treasury, to be known as the `BLM Permit Processing Improvement
        Fund' (referred to in this subsection as the `Fund').

    ``(3) For each of fiscal years 2006 through 2015, the Fund shall be
available to the Secretary of the Interior for expenditure, without
further appropriation and without fiscal year limitation, for the
coordination and processing of oil and gas use authorizations on onshore
Federal land under the jurisdiction of the Pilot Project offices
identified in section 365(d) of the Energy Policy Act of 2005.''.
    (h) Transfer of Funds.--For the purposes of coordination and
processing of oil and gas use authorizations on Federal land under the
administration of the Pilot Project offices identified in subsection
(d), the Secretary may authorize the expenditure or transfer of such
funds as are necessary to--
            (1) the United States Fish and Wildlife Service;
            (2) the Bureau of Indian Affairs;
            (3) the Forest Service;
            (4) the Environmental Protection Agency;
            (5) the Corps of Engineers; and
            (6) the States of Wyoming, Montana, Colorado, Utah, and New
        Mexico.

    (i) Fees.--During the period in which the Pilot Project is
authorized, the Secretary shall not implement a rulemaking that would
enable an increase in fees to recover additional costs related to
processing drilling-related permit applications and use authorizations.
    (j) Savings Provision.--Nothing in this section affects--
            (1) the operation of any Federal or State law; or
            (2) any delegation of authority made by the head of a
        Federal agency whose employees are participating in the Pilot
        Project.

[[Page 119 STAT. 726]]

SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.

    Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by
adding at the end the following:
    ``(p) Deadlines for Consideration of Applications for Permits.--
            ``(1) In general.--Not <<NOTE: Notification.>> later than 10
        days after the date on which the Secretary receives an
        application for any permit to drill, the Secretary shall--
                    ``(A) notify the applicant that the application is
                complete; or
                    ``(B) notify the applicant that information is
                missing and specify any information that is required to
                be submitted for the application to be complete.
            ``(2) Issuance or deferral.--Not later than 30 days after
        the applicant for a permit has submitted a complete application,
        the Secretary shall--
                    ``(A) issue the permit, if the requirements under
                the National Environmental Policy Act of 1969 and other
                applicable law have been completed within such
                timeframe; or
                    ``(B) <<NOTE: Notice.>> defer the decision on the
                permit and provide to the applicant a notice--
                          ``(i) that specifies any steps that the
                      applicant could take for the permit to be issued;
                      and
                          ``(ii) a list of actions that need to be taken
                      by the agency to complete compliance with
                      applicable law together with timelines and
                      deadlines for completing such actions.
            ``(3) Requirements for deferred applications.--
                    ``(A) In general.--If the Secretary provides notice
                under paragraph (2)(B), the applicant shall have a
                period of 2 years from the date of receipt of the notice
                in which to complete all requirements specified by the
                Secretary, including providing information needed for
                compliance with the National Environmental Policy Act of
                1969.
                    ``(B) Issuance of decision on permit.--If the
                applicant completes the requirements within the period
                specified in subparagraph (A), the Secretary shall issue
                a decision on the permit not later than 10 days after
                the date of completion of the requirements described in
                subparagraph (A), unless compliance with the National
                Environmental Policy Act of 1969 and other applicable
                law has not been completed within such timeframe.
                    ``(C) Denial of permit.--If the applicant does not
                complete the requirements within the period specified in
                subparagraph (A) or if the applicant does not comply
                with applicable law, the Secretary shall deny the
                permit.''.

SEC. 367. <<NOTE: 42 USC 15925.>> FAIR MARKET VALUE DETERMINATIONS FOR
            LINEAR RIGHTS-OF-WAY ACROSS PUBLIC LANDS AND NATIONAL
            FORESTS.

    (a) Update of Fee Schedule.--Not <<NOTE: Deadline.>> later than 1
year after the date of enactment of this section--
            (1) the Secretary of the Interior shall update section
        2806.20 of title 43, Code of Federal Regulations, as in effect
        on the date of enactment of this section, to revise the per

[[Page 119 STAT. 727]]

        acre rental fee zone value schedule by State, county, and type
        of linear right-of-way use to reflect current values of land in
        each zone; and
            (2) the Secretary of Agriculture shall make the same
        revision for linear rights-of-way granted, issued, or renewed
        under title V of the Federal Lands Policy and Management Act of
        1976 (43 U.S.C. 1761 et seq.) on National Forest System land.

    (b) Fair Market Value Rental Determination for Linear Rights-of-
way.--The fair market value rent of a linear right-of-way across public
lands or National Forest System lands issued under section 504 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1764) or
section 28 of the Mineral Leasing Act (30 U.S.C. 185) shall be
determined in accordance with subpart 2806 of title 43, Code of Federal
Regulations, as in effect on the date of enactment of this section
(including the annual or periodic updates specified in the regulations)
and as updated in accordance with subsection (a).

SEC. 368. <<NOTE: 42 USC 15926.>> ENERGY RIGHT-OF-WAY CORRIDORS ON
            FEDERAL LAND.

    (a) Western States.--Not <<NOTE: Deadline.>> later than 2 years
after the date of enactment of this Act, the Secretary of Agriculture,
the Secretary of Commerce, the Secretary of Defense, the Secretary of
Energy, and the Secretary of the Interior (in this section referred to
collectively as ``the Secretaries''), in consultation with the Federal
Energy Regulatory Commission, States, tribal or local units of
governments as appropriate, affected utility industries, and other
interested persons, shall consult with each other and shall--
            (1) designate, under their respective authorities, corridors
        for oil, gas, and hydrogen pipelines and electricity
        transmission and distribution facilities on Federal land in the
        eleven contiguous Western States (as defined in section 103(o)
        of the Federal Land Policy and Management Act of 1976 (43 U.S.C.
        1702(o));
            (2) perform any environmental reviews that may be required
        to complete the designation of such corridors; and
            (3) incorporate the designated corridors into the relevant
        agency land use and resource management plans or equivalent
        plans.

    (b) Other States.--Not <<NOTE: Deadline.>> later than 4 years after
the date of enactment of this Act, the Secretaries, in consultation with
the Federal Energy Regulatory Commission, affected utility industries,
and other interested persons, shall jointly--
            (1) identify corridors for oil, gas, and hydrogen pipelines
        and electricity transmission and distribution facilities on
        Federal land in States other than those described in subsection
        (a); and
            (2) schedule prompt action to identify, designate, and
        incorporate the corridors into the applicable land use plans.

    (c) Ongoing Responsibilities.--
The <<NOTE: Procedures.>> Secretaries, in consultation with the Federal
Energy Regulatory Commission, affected utility industries, and other
interested parties, shall establish procedures under their respective
authorities that--
            (1) ensure that additional corridors for oil, gas, and
        hydrogen pipelines and electricity transmission and distribution
        facilities on Federal land are promptly identified and
        designated as necessary; and

[[Page 119 STAT. 728]]

            (2) expedite applications to construct or modify oil, gas,
        and hydrogen pipelines and electricity transmission and
        distribution facilities within such corridors, taking into
        account prior analyses and environmental reviews undertaken
        during the designation of such corridors.

    (d) Considerations.--In carrying out this section, the Secretaries
shall take into account the need for upgraded and new electricity
transmission and distribution facilities to--
            (1) improve reliability;
            (2) relieve congestion; and
            (3) enhance the capability of the national grid to deliver
        electricity.

    (e) Specifications of Corridor.--A corridor designated under this
section shall, at a minimum, specify the centerline, width, and
compatible uses of the corridor.

SEC. 369. <<NOTE: Oil Shale, Tar Sands, and Other Strategic
            Unconventional Fuels Act of 2005. Deadlines. 42 USC
            15927.>> OIL SHALE, TAR SANDS, AND OTHER STRATEGIC
            UNCONVENTIONAL FUELS.

    (a) Short Title.--This section may be cited as the ``Oil Shale, Tar
Sands, and Other Strategic Unconventional Fuels Act of 2005''.
    (b) Declaration of Policy.--Congress declares that it is the policy
of the United States that--
            (1) United States oil shale, tar sands, and other
        unconventional fuels are strategically important domestic
        resources that should be developed to reduce the growing
        dependence of the United States on politically and economically
        unstable sources of foreign oil imports;
            (2) the development of oil shale, tar sands, and other
        strategic unconventional fuels, for research and commercial
        development, should be conducted in an environmentally sound
        manner, using practices that minimize impacts; and
            (3) development of those strategic unconventional fuels
        should occur, with an emphasis on sustainability, to benefit the
        United States while taking into account affected States and
        communities.

    (c) Leasing Program for Research and Development of Oil Shale and
Tar Sands.--In accordance with section 21 of the Mineral Leasing Act (30
U.S.C. 241) and any other applicable law, except as provided in this
section, not later than 180 days after the date of enactment of this
Act, from land otherwise available for leasing, the Secretary of the
Interior (referred to in this section as the ``Secretary'') shall make
available for leasing such land as the Secretary considers to be
necessary to conduct research and development activities with respect to
technologies for the recovery of liquid fuels from oil shale and tar
sands resources on public lands. Prospective public lands within each of
the States of Colorado, Utah, and Wyoming shall be made available for
such research and development leasing.
    (d) Programmatic Environmental Impact Statement and Commercial
Leasing Program for Oil Shale and Tar Sands.--
            (1) Programmatic environmental impact statement.--Not later
        than 18 months after the date of enactment of this Act, in
        accordance with section 102(2)(C) of the National Environmental
        Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the Secretary shall
        complete a programmatic environmental impact statement for a
        commercial leasing program for oil shale and tar sands resources
        on public lands, with an emphasis on

[[Page 119 STAT. 729]]

        the most geologically prospective lands within each of the
        States of Colorado, Utah, and Wyoming.
            (2) Final regulation.--Not later than 6 months after the
        completion of the programmatic environmental impact statement
        under this subsection, the Secretary shall publish a final
        regulation establishing such program.

    (e) Commencement of Commercial Leasing of Oil Shale and Tar Sands.--
Not later than 180 days after publication of the final regulation
required by subsection (d), the Secretary shall consult with the
Governors of States with significant oil shale and tar sands resources
on public lands, representatives of local governments in such States,
interested Indian tribes, and other interested persons, to determine the
level of support and interest in the States in the development of tar
sands and oil shale resources. If the Secretary finds sufficient support
and interest exists in a State, the Secretary may conduct a lease sale
in that State under the commercial leasing program regulations. Evidence
of interest in a lease sale under this subsection shall include, but not
be limited to, appropriate areas nominated for leasing by potential
lessees and other interested parties.
    (f) Diligent Development Requirements.--
The <<NOTE: Regulations.>> Secretary shall, by regulation, designate
work requirements and milestones to ensure the diligent development of
the lease.

    (g) Initial Report by the Secretary of the Interior.--Within 90 days
after the date of enactment of this Act, the Secretary of the Interior
shall report to the Committee on Resources of the House of
Representatives and the Committee on Energy and Natural Resources of the
Senate on--
            (1) the interim actions necessary to--
                    (A) develop the program, complete the programmatic
                environmental impact statement, and promulgate the final
                regulation as required by subsection (d); and
                    (B) conduct the first lease sales under the program
                as required by subsection (e); and
            (2) a schedule to complete such actions within the time
        limits mandated by this section.

    (h) Task Force.--
            (1) Establishment.--The Secretary of Energy, in cooperation
        with the Secretary of the Interior and the Secretary of Defense,
        shall establish a task force to develop a program to coordinate
        and accelerate the commercial development of strategic
        unconventional fuels, including but not limited to oil shale and
        tar sands resources within the United States, in an integrated
        manner.
            (2) Composition.--The Task Force shall be composed of--
                    (A) the Secretary of Energy (or the designee of the
                Secretary);
                    (B) the Secretary of the Interior (or the designee
                of the Secretary of the Interior);
                    (C) the Secretary of Defense (or the designee of the
                Secretary of Defense);
                    (D) the Governors of affected States; and
                    (E) representatives of local governments in affected
                areas.
            (3) Recommendations.--The Task Force shall make such
        recommendations regarding promoting the development of the

[[Page 119 STAT. 730]]

        strategic unconventional fuels resources within the United
        States as it may deem appropriate.
            (4) Partnerships.--The Task Force shall make recommendations
        with respect to initiating a partnership with the Province of
        Alberta, Canada, for purposes of sharing information relating to
        the development and production of oil from tar sands, and
        similar partnerships with other nations that contain significant
        oil shale resources.
            (5) Reports.--
                    (A) Initial report.--Not later than 180 days after
                the date of enactment of this Act, the Task Force shall
                submit to the President and Congress a report that
                describes the analysis and recommendations of the Task
                Force.
                    (B) Subsequent reports.--The Secretary shall provide
                an annual report describing the progress in developing
                the strategic unconventional fuels resources within the
                United States for each of the 5 years following
                submission of the report provided for in subparagraph
                (A).

    (i) Office of <<NOTE: Establishment.>> Petroleum Reserves.--
            (1) In general.--The Office of Petroleum Reserves of the
        Department of Energy shall--
                    (A) coordinate the creation and implementation of a
                commercial strategic fuel development program for the
                United States;
                    (B) evaluate the strategic importance of
                unconventional sources of strategic fuels to the
                security of the United States;
                    (C) promote and coordinate Federal Government
                actions that facilitate the development of strategic
                fuels in order to effectively address the energy supply
                needs of the United States;
                    (D) identify, assess, and recommend appropriate
                actions of the Federal Government required to assist in
                the development and manufacturing of strategic fuels;
                and
                    (E) coordinate and facilitate appropriate
                relationships between private industry and the Federal
                Government to promote sufficient and timely private
                investment to commercialize strategic fuels for domestic
                and military use.
            (2) Consultation and coordination.--The Office of Petroleum
        Reserves shall work closely with the Task Force and coordinate
        its staff support.
            (3) Annual reports.--Not later than 180 days after the date
        of enactment of this Act and annually thereafter, the Secretary
        shall submit to Congress a report that describes the activities
        of the Office of Petroleum Reserves carried out under this
        subsection.

    (j) Mineral Leasing Act Amendments.--
            (1) Section 17.--Section 17(b)(2) of the Mineral Leasing Act
        (30 U.S.C. 226(b)(2)), as amended by section 350, is further
        amended--
                    (A) in subparagraph (A) (as designated by the
                amendment made by subsection (a)(1) of that section) by
                designating the first, second, and third sentences as
                clauses (i), (ii), and (iii), respectively;
                    (B) by moving clause (ii), as so designated, so as
                to begin immediately after and below clause (i);

[[Page 119 STAT. 731]]

                    (C) by moving clause (iii), as so designated, so as
                to begin immediately after and below clause (ii);
                    (D) in clause (i) of subparagraph (A) (as designated
                by subparagraph (A) of this paragraph) by striking
                ``five thousand one hundred and twenty'' and inserting
                ``5,760''; and
                    (E) by adding at the end the following:
            ``(iv) No lease issued under this paragraph shall be
        included in any chargeability limitation associated with oil and
        gas leases.''.
            (2) Section 21.--Section 21(a) of the Mineral Leasing Act
        (30 U.S.C. 241(a)) is amended--
                    (A) by striking ``(a) That the Secretary'' and
                inserting the following:

    ``(a)(1) The Secretary'';
                    (B) by striking ``; that no lease'' and inserting a
                period, followed by the following:
            ``(2) No lease'';
                    (C) by striking ``Leases may be for'' and inserting
                the following:
            ``(3) Leases may be for'';
                    (D) by striking ``For the privilege'' and inserting
                the following:
            ``(4) For the privilege'';
                    (E) in paragraph (2) (as designated by subparagraph
                (B) of this paragraph) by striking ``five thousand one
                hundred and twenty'' and inserting ``5,760'';
                    (F) in paragraph (4) (as designated by subparagraph
                (D) of this paragraph) by striking ``rate of 50 cents
                per acre'' and inserting ``rate of $2.00 per acre'';
                    (G)(i) by striking ``: Provided further, That not
                more than one lease shall be granted under this section
                to any'' and inserting ``: Provided further, That no'';
                and
                    (ii) by striking ``except that with respect to
                leases for'' and inserting ``shall acquire or hold more
                than 50,000 acres of oil shale leases in any one State.
                For''; and
                    (H) by adding at the end the following:
            ``(5) No lease issued under this section shall be included
        in any chargeability limitation associated with oil and gas
        leases.''.

    (k) Interagency Coordination and Expeditious Review of Permitting
Process.--
            (1) Department of the interior as lead agency.--Upon written
        request of a prospective applicant for Federal authorization to
        develop a proposed oil shale or tar sands project, the
        Department of the Interior shall act as the lead Federal agency
        for the purposes of coordinating all applicable Federal
        authorizations and environmental reviews. To the maximum extent
        practicable under applicable Federal law, the Secretary shall
        coordinate this Federal authorization and review process with
        any Indian tribes and State and local agencies responsible for
        conducting any separate permitting and environmental reviews.
            (2) Implementing regulations.--Not later than 6 months after
        the date of enactment of this Act, the Secretary shall issue any
        regulations necessary to implement this subsection.

    (l) Cost-shared Demonstration Technologies.--

[[Page 119 STAT. 732]]

            (1) Identification.--The Secretary of Energy shall identify
        technologies for the development of oil shale and tar sands
        that--
                    (A) are ready for demonstration at a commercially-
                representative scale; and
                    (B) have a high probability of leading to commercial
                production.
            (2) Assistance.--For each technology identified under
        paragraph (1), the Secretary of Energy may provide--
                    (A) technical assistance;
                    (B) assistance in meeting environmental and
                regulatory requirements; and
                    (C) cost-sharing assistance.

    (m) National Oil Shale and Tar Sands Assessment.--
            (1) Assessment.--
                    (A) In general.--The Secretary shall carry out a
                national assessment of oil shale and tar sands resources
                for the purposes of evaluating and mapping oil shale and
                tar sands deposits, in the geographic areas described in
                subparagraph (B). In conducting such an assessment, the
                Secretary shall make use of the extensive geological
                assessment work for oil shale and tar sands already
                conducted by the United States Geological Survey.
                    (B) Geographic areas.--The geographic areas referred
                to in subparagraph (A), listed in the order in which the
                Secretary shall assign priority, are--
                          (i) the Green River Region of the States of
                      Colorado, Utah, and Wyoming;
                          (ii) the Devonian oil shales and other
                      hydrocarbon-bearing rocks having the nomenclature
                      of ``shale'' located east of the Mississippi
                      River; and
                          (iii) any remaining area in the central and
                      western United States (including the State of
                      Alaska) that contains oil shale and tar sands, as
                      determined by the Secretary.
            (2) Use of state surveys and universities.--In carrying out
        the assessment under paragraph (1), the Secretary may request
        assistance from any State-administered geological survey or
        university.

    (n) Land Exchanges.--
            (1) In general.--To facilitate the recovery of oil shale and
        tar sands, especially in areas where Federal, State, and private
        lands are intermingled, the Secretary shall consider the use of
        land exchanges where appropriate and feasible to consolidate
        land ownership and mineral interests into manageable areas.
            (2) Identification and priority of public lands.--The
        Secretary shall identify public lands containing deposits of oil
        shale or tar sands within the Green River, Piceance Creek,
        Uintah, and Washakie geologic basins, and shall give priority to
        implementing land exchanges within those basins. The Secretary
        shall consider the geology of the respective basin in
        determining the optimum size of the lands to be consolidated.
            (3) Compliance with section 206 of flpma.--A land exchange
        undertaken in furtherance of this subsection shall be
        implemented in accordance with section 206 of the Federal Land
        Policy and Management Act of 1976 (43 U.S.C. 1716).

[[Page 119 STAT. 733]]

    (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.

    (p) Heavy Oil Technical and Economic Assessment.--The Secretary of
Energy shall update the 1987 technical and economic assessment of
domestic heavy oil resources that was prepared by the Interstate Oil and
Gas Compact Commission. Such an update should include all of North
America and cover all unconventional oil, including heavy oil, tar sands
(oil sands), and oil shale.
    (q) Procurement of Unconventional Fuels by the Department of
Defense.--
            (1) In general.--Chapter 141 of title 10, United States
        Code, is amended by inserting after section 2398 the following:

``Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar
                        sands

    ``(a) Use of Fuel to Meet Department of Defense Needs.--The
Secretary of Defense shall develop a strategy to use fuel produced, in
whole or in part, from coal, oil shale, and tar sands (referred to in
this section as a `covered fuel') that are extracted by either mining or
in-situ methods and refined or otherwise processed in the United States
in order to assist in meeting the fuel requirements of the Department of
Defense when the Secretary determines that it is in the national
interest.
    ``(b) Authority to Procure.--The Secretary of Defense may enter into
1 or more contracts or other agreements (that meet the requirements of
this section) to procure a covered fuel to meet 1 or more fuel
requirements of the Department of Defense.
    ``(c) Clean Fuel Requirements.--A covered fuel may be procured under
subsection (b) only if the covered fuel meets such standards for clean
fuel produced from domestic sources as the Secretary of Defense shall
establish for purposes of this section in consultation with the
Department of Energy.
    ``(d) Multiyear Contract Authority.--Subject to applicable
provisions of law, any contract or other agreement for the procurement
of covered fuel under subsection (b) may be for 1 or more years at the
election of the Secretary of Defense.
    ``(e) Fuel Source Analysis.--In order to facilitate the procurement
by the Department of Defense of covered fuel under subsection (b), the
Secretary of Defense may carry out a comprehensive assessment of current
and potential locations in the United States for the supply of covered
fuel to the Department.''.
            (2) Clerical amendment.--The table of sections for chapter
        141 of title 10, United States Code, is amended by inserting
        after the item relating to section 2398 the following:

``2398a. Procurement of fuel derived from coal, oil shale, and tar
           sands.''.

    (r) State Water Rights.--Nothing in this section preempts or affects
any State water law or interstate compact relating to water.
    (s) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.

[[Page 119 STAT. 734]]

SEC. 370. FINGER LAKES WITHDRAWAL.

    All Federal land within the boundary of Finger Lakes National Forest
in the State of New York is withdrawn from--
            (1) all forms of entry, appropriation, or disposal under the
        public land laws; and
            (2) disposition under all laws relating to oil and gas
        leasing.

SEC. 371. <<NOTE: 30 USC 188 note.>> REINSTATEMENT OF LEASES.

    (a) Leases <<NOTE: Effective date. Termination date.>> Terminated
for Certain Failure to Pay Rental.--Notwithstanding section 31(d)(2)(B)
of the Mineral Leasing Act (30 U.S.C. 188(d)(2)(B)) as in effect before
the effective date of this section, and notwithstanding the amendment
made by subsection (b) of this section, the Secretary of the Interior
may reinstate any oil and gas lease issued under that Act that was
terminated for failure of a lessee to pay the full amount of rental on
or before the anniversary date of the lease, during the period beginning
on September 1, 2001, and ending on June 30, 2004, if--
            (1) <<NOTE: Deadline.>> not later than 120 days after the
        date of enactment of this Act, the lessee--
                    (A) files a petition for reinstatement of the lease;
                    (B) complies with the conditions of section 31(e) of
                the Mineral Leasing Act (30 U.S.C. 188(e)); and
                    (C) <<NOTE: Certification.>> certifies that the
                lessee did not receive a notice of termination by the
                date that was 13 months before the date of termination;
                and
            (2) the land is available for leasing.

    (b) Deadline for Petitions, Generally.--Section 31(d)(2) of the
Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by striking
subparagraphs (A) and (B) and inserting the following:
                    ``(A) with respect to any lease that terminated
                under subsection (b) on or before the date of the
                enactment of the Energy Policy Act of 2005, a petition
                for reinstatement (together with the required back
                rental and royalty accruing after the date of
                termination) is filed on or before the earlier of--
                          ``(i) 60 days after the lessee receives from
                      the Secretary notice of termination, whether by
                      return of check or by any other form of actual
                      notice; or
                          ``(ii) 15 months after the termination of the
                      lease; or
                    ``(B) with respect to any lease that terminates
                under subsection (b) after the date of the enactment of
                the Energy Policy Act of 2005, a petition for
                reinstatement (together with the required back rental
                and royalty accruing after the date of termination) is
                filed on or before the earlier of--
                          ``(i) 60 days after receipt of the notice of
                      termination sent by the Secretary by certified
                      mail to all lessees of record; or
                          ``(ii) 24 months after the termination of the
                      lease.''.

SEC. 372. <<NOTE: 42 USC 15928.>> CONSULTATION REGARDING ENERGY RIGHTS-
            OF-WAY ON PUBLIC LAND.

    (a) Memorandum of Understanding.--

[[Page 119 STAT. 735]]

            (1) In general.--Not <<NOTE: Deadline.>> later than 6 months
        after the date of enactment of this Act, the Secretary of
        Energy, in consultation with the Secretary of the Interior, the
        Secretary of Agriculture, and the Secretary of Defense with
        respect to lands under their respective jurisdictions, shall
        enter into a memorandum of understanding to coordinate all
        applicable Federal authorizations and environmental reviews
        relating to a proposed or existing utility facility. To the
        maximum extent practicable under applicable law, the Secretary
        of Energy shall, to ensure timely review and permit decisions,
        coordinate such authorizations and reviews with any Indian
        tribes, multi-State entities, and State agencies that are
        responsible for conducting any separate permitting and
        environmental reviews of the affected utility facility.
            (2) Contents.--The memorandum of understanding shall include
        provisions that--
                    (A) establish--
                          (i) a unified right-of-way application form;
                      and
                          (ii) an administrative procedure for
                      processing right-of-way applications, including
                      lines of authority, steps in application
                      processing, and timeframes for application
                      processing;
                    (B) provide for coordination of planning relating to
                the granting of the rights-of-way;
                    (C) provide for an agreement among the affected
                Federal agencies to prepare a single environmental
                review document to be used as the basis for all Federal
                authorization decisions; and
                    (D) provide for coordination of use of right-of-way
                stipulations to achieve consistency.

    (b) Natural Gas Pipelines.--
            (1) In general.--With respect to permitting activities for
        interstate natural gas pipelines, the May 2002 document entitled
        ``Interagency Agreement On Early Coordination Of Required
        Environmental And Historic Preservation Reviews Conducted In
        Conjunction With The Issuance Of Authorizations To Construct And
        Operate Interstate Natural Gas Pipelines Certificated By The
        Federal Energy Regulatory Commission'' shall constitute
        compliance with subsection (a).
            (2) Report.--
                    (A) In general.--Not later than 1 year after the
                date of enactment of this Act, and every 2 years
                thereafter, agencies that are signatories to the
                document referred to in paragraph (1) shall transmit to
                Congress a report on how the agencies under the
                jurisdiction of the Secretaries are incorporating and
                implementing the provisions of the document referred to
                in paragraph (1).
                    (B) Contents.--The report shall address--
                          (i) efforts to implement the provisions of the
                      document referred to in paragraph (1);
                          (ii) whether the efforts have had a
                      streamlining effect;
                          (iii) further improvements to the permitting
                      process of the agency; and
                          (iv) recommendations for inclusion of State
                      and tribal governments in a coordinated permitting
                      process.

[[Page 119 STAT. 736]]

    (c) Definition of Utility Facility.--In this section, the term
``utility facility'' means any privately, publicly, or cooperatively
owned line, facility, or system--
            (1) for the transportation of--
                    (A) oil, natural gas, synthetic liquid fuel, or
                gaseous fuel;
                    (B) any refined product produced from oil, natural
                gas, synthetic liquid fuel, or gaseous fuel; or
                    (C) products in support of the production of
                material referred to in subparagraph (A) or (B);
            (2) for storage and terminal facilities in connection with
        the production of material referred to in paragraph (1); or
            (3) for the generation, transmission, and distribution of
        electric energy.

SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER
            PADRE ISLAND NATIONAL SEASHORE.

    (a) Findings.--Congress finds the following:
            (1) Pursuant to Public Law 87-712 (16 U.S.C. 459d et seq.;
        popularly known as the ``Federal Enabling Act'') and various
        deeds and actions under that Act, the United States is the owner
        of only the surface estate of certain lands constituting the
        Padre Island National Seashore.
            (2) Ownership of the oil, gas, and other minerals in the
        subsurface estate of the lands constituting the Padre Island
        National Seashore was never acquired by the United States, and
        ownership of those interests is held by the State of Texas and
        private parties.
            (3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
                    (A) expressly contemplated that the United States
                would recognize the ownership and future development of
                the oil, gas, and other minerals in the subsurface
                estate of the lands constituting the Padre Island
                National Seashore by the owners and their mineral
                lessees; and
                    (B) recognized that approval of the State of Texas
                was required to create Padre Island National Seashore.
            (4) Approval was given for the creation of Padre Island
        National Seashore by the State of Texas through Tex. Rev. Civ.
        Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly
        recognized that development of the oil, gas, and other minerals
        in the subsurface of the lands constituting Padre Island
        National Seashore would be conducted with full rights of ingress
        and egress under the laws of the State of Texas.

    (b) Sense of Congress.--It is the sense of Congress that with regard
to Federal law, any regulation of the development of oil, gas, or other
minerals in the subsurface of the lands constituting Padre Island
National Seashore should be made as if those lands retained the status
that the lands had on September 27, 1962.

SEC. 374. <<NOTE: Louisiana.>> LIVINGSTON PARISH MINERAL RIGHTS
            TRANSFER.

    Section 102 of Public Law 102-562 (106 Stat. 4234) is amended by
striking subsection (b) and inserting the following:
    ``(b) Reservation of Oil and Gas Rights and Conveyance of Remaining
Mineral Rights.--Subject to the limitations set forth in subsection (c),
the United States hereby excepts and reserves from the provisions of
subsection (a), all rights to oil and gas underlying such lands, along
with the right to explore

[[Page 119 STAT. 737]]

for, and produce the oil and gas under applicable law and such
regulations as the Secretary of the Interior may prescribe. Not later
than 180 days after the date of enactment of the Energy Policy Act of
2005, the Secretary of the Interior shall convey the remaining mineral
rights to the parties who as of the date of enactment of the Energy
Policy Act of 2005 would be recognized as holders of a right, title, or
interest to any portion of such minerals under the laws of the State of
Louisiana, but for the interest of the United States in such minerals.
    ``(c) Oil and Gas <<NOTE: Deadlines.>> Resource Assessment and
Report.--The United States Geological Survey shall conduct a resource
assessment and publish a report of the findings of such resource
assessment (`USGS Assessment and Report') within 1 year of the date of
enactment of the Energy Policy Act of 2005. The USGS Assessment and
Report shall provide an assessment of all oil and gas resources
underlying the certain lands in Livingston Parish, Louisiana, as
described in section 103 (the `Livingston Parish lands'). Upon a finding
by the Secretary of the Interior based upon the USGS Assessment and
Report that it is unlikely that economically recoverable oil and gas
resources are present, the Secretary shall convey all rights to oil and
gas underlying such lands to the recipients, or their successors, heirs,
or assigns, of the conveyances under subsection (b). Such further
conveyances shall be made within 180 days after a finding by the
Secretary that it is unlikely that economically recoverable oil and gas
resources are present.''.

                        Subtitle G--Miscellaneous

SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION
            UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.

    Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1465) is amended to read as follows:

                       ``appeals to the secretary

    ``Sec. 319. (a) Notice.--Not <<NOTE: Federal
Register, publication.>> later than 30 days after the date of the filing
of an appeal to the Secretary of a consistency determination under
section 307, the Secretary shall publish an initial notice in the
Federal Register.

    ``(b) Closure of Record.--
            ``(1) In general.--Not later than the end of the 160-day
        period beginning on the date of publication of an initial notice
        under subsection (a), except as provided in paragraph (3), the
        Secretary shall immediately close the decision record and
        receive no more filings on the appeal.
            ``(2) Notice.--After <<NOTE: Federal
        Register, publication.>> closing the administrative record, the
        Secretary shall immediately publish a notice in the Federal
        Register that the administrative record has been closed.
            ``(3) Exception.--
                    ``(A) In general.--Subject to subparagraph (B),
                during the 160-day period described in paragraph (1),
                the Secretary may stay the closing of the decision
                record--
                          ``(i) for a specific period mutually agreed to
                      in writing by the appellant and the State agency;
                      or
                          ``(ii) as the Secretary determines necessary
                      to receive, on an expedited basis--

[[Page 119 STAT. 738]]

                                    ``(I) any supplemental information
                                specifically requested by the Secretary
                                to complete a consistency review under
                                this Act; or
                                    ``(II) any clarifying information
                                submitted by a party to the proceeding
                                related to information in the
                                consolidated record compiled by the lead
                                Federal permitting agency.
                    ``(B) Applicability.--The Secretary may only stay
                the 160-day period described in paragraph (1) for a
                period not to exceed 60 days.

    ``(c) Deadline for Decision.--
            ``(1) In general.--Not <<NOTE: Notices. Federal
        Register, publication.>> later than 60 days after the date of
        publication of a Federal Register notice stating when the
        decision record for an appeal has been closed, the Secretary
        shall issue a decision or publish a notice in the Federal
        Register explaining why a decision cannot be issued at that
        time.
            ``(2) Subsequent decision.--Not later than 15 days after the
        date of publication of a Federal Register notice explaining why
        a decision cannot be issued within the 60-day period, the
        Secretary shall issue a decision.''.

SEC. 382. <<NOTE: 16 USC 1466.>> APPEALS RELATING TO OFFSHORE MINERAL
            DEVELOPMENT.

    For any Federal administrative agency proceeding that is an appeal
or review under section 319 of the Coastal Zone Management Act of 1972
(16 U.S.C. 1465), as amended by this Act, related to any Federal
authorization for the permitting, approval, or other authorization of an
energy project, the lead Federal permitting agency for the project
shall, with the cooperation of Federal and State administrative
agencies, maintain a consolidated record of all decisions made or
actions taken by the lead agency or by another Federal or State
administrative agency or officer. Such record shall be the initial
record for appeals or reviews under that Act, provided that the record
may be supplemented as expressly provided pursuant to section 319 of
that Act.

SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER CONTINENTAL
            SHELF LANDS ACT.

    (a) Royalty Relief.--
            (1) In general.--For purposes of providing compensation for
        lessees and a State for which amounts are authorized by section
        6004(c) of the Oil Pollution Act of 1990 (Public Law 101-380), a
        lessee may withhold from payment any royalty due and owing to
        the United States under any leases under the Outer Continental
        Shelf Lands Act (43 U.S.C. 1301 et seq.) for offshore oil or gas
        production from a covered lease tract if, on or before the date
        that the payment is due and payable to the United States, the
        lessee makes a payment to the State of 44 cents for every $1 of
        royalty withheld.
            (2) Treatment of amounts.--Any royalty withheld by a lessee
        in accordance with this section (including any portion thereof
        that is paid to the State under paragraph (1)) shall be treated
        as paid for purposes of satisfaction of the royalty obligations
        of the lessee to the United States.
            (3) Certification of withheld amounts.--The Secretary of the
        Treasury shall--
                    (A) determine the amount of royalty withheld by a
                lessee under this section; and

[[Page 119 STAT. 739]]

                    (B) <<NOTE: Publication.>> promptly publish a
                certification when the total amount of royalty withheld
                by the lessee under this section is equal to--
                          (i) the dollar amount stated at page 47 of
                      Senate Report number 101-534, which is designated
                      therein as the total drainage claim for the West
                      Delta field; plus
                          (ii) interest as described at page 47 of that
                      Report.

    (b) Period of Royalty Relief.--Subsection
(a) <<NOTE: Applicability. Effective date. Termination date.>> shall
apply to royalty amounts that are due and payable in the period
beginning on October 1, 2006, and ending on the date on which the
Secretary of the Treasury publishes a certification under subsection
(a)(3)(B).

    (c) Definitions.--As used in this section:
            (1) Covered lease tract.--The term ``covered lease tract''
        means a leased tract (or portion of a leased tract)--
                    (A) lying seaward of the zone defined and governed
                by section 8(g) of the Outer Continental Shelf Lands Act
                (43 U.S.C. 1337(g)); or
                    (B) lying within such zone but to which such section
                does not apply.
            (2) Lessee.--The term ``lessee''--
                    (A) means a person or entity that, on the date of
                the enactment of the Oil Pollution Act of 1990, was a
                lessee referred to in section 6004(c) of that Act (as in
                effect on that date of the enactment), but did not hold
                lease rights in Federal offshore lease OCS-G-5669; and
                    (B) includes successors and affiliates of a person
                or entity described in subparagraph (A).

SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.

    Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is amended to read as follows:

``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).

[[Page 119 STAT. 740]]

            ``(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.

[[Page 119 STAT. 741]]

            ``(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

[[Page 119 STAT. 742]]

                                    ``(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 <<NOTE: Deadline.>> 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

[[Page 119 STAT. 743]]

                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) <<NOTE: Certification.>> a
                                certification by the Governor that ample
                                opportunity has been provided for public
                                participation in the development and