Deep Ocean Energy Resources Act of 2006

        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4761 Placed on Calendar Senate (PCS)]

Calendar No. 588
109th CONGRESS
2d Session
H. R. 4761

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

July 10, 2006

Received

August 3, 2006

Read the first time

September 5, 2006

Read the second time and placed on the calendar

_______________________________________________________________________

AN ACT

To provide for exploration, development, and production activities for
mineral resources on the outer Continental Shelf, and for other
purposes.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. POLICY.

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

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

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

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

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

SEC. 5. ADMINISTRATION OF LEASING.

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

SEC. 6. GRANT OF LEASES BY SECRETARY.

Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended--
(1) in subsection (a)(1) by inserting after the first
sentence the following: ``Further, the Secretary may grant
natural gas leases in a manner similar to the granting of oil
and gas leases and under the various bidding systems available
for oil and gas leases.'';
(2) by adding at the end of subsection (b) the following:
``The Secretary may issue more than one lease for a given tract if each
lease applies to a separate and distinct range of vertical depths,
horizontal surface area, or a combination of the two. The Secretary may
issue regulations that the Secretary determines are necessary to manage
such leases consistent with the purposes of this Act.'';
(3) by amending subsection (p)(2)(B) to read as follows:
``(B) The Secretary shall provide for the payment to
coastal states, and their local coastal governments, of 75
percent of Federal receipts from projects authorized under this
section located partially or completely within the area
extending seaward of State submerged lands out to 4 marine
leagues from the coastline, and the payment to coastal states
of 50 percent of the receipts from projects completely located
in the area more than 4 marine leagues from the coastline.
Payments shall be based on a formula established by the
Secretary by rulemaking no later than 180 days after the date
of the enactment of the Deep Ocean Energy Resources Act of 2006
that provides for equitable distribution, based on proximity to
the project, among coastal states that have coastline that is
located within 200 miles of the geographic center of the
project.''.
(4) by adding at the end the following:
``(q) Natural Gas Leases.--
``(1) Right to produce natural gas.--A lessee of a natural
gas lease shall have the right to produce the natural gas from
a field on a natural gas leased tract if the Secretary
estimates that the discovered field has at least 40 percent of
the economically recoverable Btu content of the field contained
within natural gas and such natural gas is economical to
produce.
``(2) Crude oil.--A lessee of a natural gas lease may not
produce crude oil from the lease.
``(3) Estimates of btu content.--The Secretary shall make
estimates of the natural gas Btu content of discovered fields
on a natural gas lease only after the completion of at least
one exploration well, the data from which has been tied to the
results of a three-dimensional seismic survey of the field. The
Secretary may not require the lessee to further delineate any
discovered field prior to making such estimates.
``(4) Definition of natural gas.--For purposes of a natural
gas lease, natural gas means natural gas and all substances
produced in association with gas, including, but not limited
to, hydrocarbon liquids (other than crude oil) that are
obtained by the condensation of hydrocarbon vapors and separate
out in liquid form from the produced gas stream.
``(r) Removal of Restrictions on Joint Bidding in Certain Areas of
the Outer Continental Shelf.--Restrictions on joint bidders shall no
longer apply to tracts located in the Alaska OCS Region. Such
restrictions shall not apply to tracts in other OCS regions determined
to be `frontier tracts' or otherwise `high cost tracts' under final
regulations that shall be published by the Secretary by not later than
365 days after the date of the enactment of the Deep Ocean Energy
Resources Act of 2006.
``(s) Royalty Suspension Provisions.--The Secretary shall agree to
a request by any lessee to amend any lease issued for Central and
Western Gulf of Mexico tracts during the period of January 1, 1998,
through December 31, 1999, to incorporate price thresholds applicable
to royalty suspension provisions, or amend existing price thresholds,
in the amount of $40.50 per barrel (2006 dollars) for oil and for
natural gas of $6.75 per million Btu (2006 dollars). Any amended lease
shall impose the new or revised price thresholds effective October 1,
2005. Existing lease provisions shall prevail through September 30,
2005. After the date of the enactment of the Deep Ocean Energy
Resources Act of 2006, price thresholds shall apply to any royalty
suspension volumes granted by the Secretary. Unless otherwise set by
Secretary by regulation or for a particular lease sale, the price
thresholds shall be $40.50 for oil (2006 dollars) and $6.75 for natural
gas (2006 dollars).
``(t) Conservation of Resources Fees.--
``(1) Not later than one year after the date of the
enactment of the Deep Ocean Energy Resources Act of 2006, the
Secretary by regulation shall establish a conservation of
resources fee for producing leases that will apply to new and
existing leases which shall be set at $9 per barrel for oil and
$1.25 per million Btu for gas. This fee shall only apply to
leases in production located in more than 200 meters of water
for which royalties are not being paid when prices exceed
$40.50 per barrel for oil and $6.75 per million Btu for natural
gas in 2006, dollars. This fee shall apply to production from
and after October 1, 2005, and shall be treated as offsetting
receipts.
``(2) Not later than one year after the date of the
enactment of the Deep Ocean Energy Resources Act of 2006, the
Secretary by regulation shall establish a conservation of
resources fee for nonproducing leases that will apply to new
and existing leases which shall be set at $3.75 per acre per
year. This fee shall apply from and after October 1, 2005, and
shall be treated as offsetting receipts.'';
(5) by striking subsection (a)(3)(A) and redesignating the
subsequent subparagraphs as subparagraphs (A) and (B),
respectively;
(6) in subsection (a)(3)(A) (as so redesignated) by
striking ``In the Western'' and all that follows through ``the
Secretary'' the first place it appears and inserting ``The
Secretary''; and
(7) effective October 1, 2006, in subsection (g)--
(A) by striking all after ``(g)'', except paragraph
(3);
(B) by striking the last sentence of paragraph (3);
and
(C) by striking ``(3)''.

SEC. 7. DISPOSITION OF RECEIPTS.

Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended--
(1) by designating the existing text as subsection (a);
(2) in subsection (a) (as so designated) by inserting ``,
if not paid as otherwise provided in this title'' after
``receipts''; and
(3) by adding the following:
``(b) Treatment of OCS Receipts From Tracts Completely Within 100
Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2), (3), and
(4).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2005, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region completely beyond
4 marine leagues from any coastline and
completely within 100 miles of any coastline
that are available for leasing under the 2002-
2007 5-Year Oil and Gas Leasing Program in
effect prior to the date of the enactment of
the Deep Ocean Energy Resources Act of 2006.
``(ii) Lease tracts in production prior to
October 1, 2005, completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of any coastline located on
portions of the OCS that were not available for
leasing under the 2002-2007 5-Year OCS Oil and
Gas Leasing Program in effect prior to the date
of the enactment of the Deep Ocean Energy
Resources Act of 2006.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2005, located in the
Alaska OCS Region completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2006, 4.6 percent.
``(ii) For fiscal year 2007, 5.95 percent.
``(iii) For fiscal year 2008, 6.8 percent.
``(iv) For fiscal year 2009, 7.65 percent.
``(v) For fiscal year 2010, 10.20 percent.
``(vi) For fiscal year 2011, 12.75 percent.
``(vii) For fiscal year 2012, 15.30
percent.
``(viii) For fiscal year 2013, 17.85
percent.
``(ix) For fiscal year 2014, 20.40 percent.
``(x) For fiscal year 2015, 22.95 percent.
``(xi) For fiscal year 2016, 25.50 percent.
``(xii) For fiscal year 2017, 28.05
percent.
``(xiii) For fiscal year 2018, 30.60
percent.
``(xiv) For fiscal year 2019, 33.15
percent.
``(xv) For fiscal year 2020, 35.70 percent.
``(xvi) For fiscal year 2021, 38.25
percent.
``(xvii) For fiscal year 2022 and each
subsequent fiscal year, 42.50 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 6(2) of the Deep
Ocean Energy Resources Act of 2006.
``(3) Immediate receipts sharing.--Beginning October 1,
2005, the Secretary shall share 42.50 percent of OCS Receipts
derived from all leases located completely beyond 4 marine
leagues from any coastline and completely within 100 miles of
any coastline not included within the provisions of paragraph
(2).
``(4) Receipts sharing from tracts within 4 marine leagues
of any coastline.--
``(A) Areas described in paragraph (2).--
``(i) Beginning October 1, 2005, and
continuing through September 30, 2010, the
Secretary shall share 25 percent of OCS
Receipts derived from all leases located within
4 marine leagues from any coastline within
areas described in paragraph (2). For each
fiscal year after September 30, 2010, the
Secretary shall increase the percent shared in
5 percent increments each fiscal year until the
sharing rate for all leases located within 4
marine leagues from any coastline within areas
described in paragraph (2) becomes 42.5
percent.
``(ii) During fiscal year 2016, the
Secretary shall conduct an analysis of all of
the areas described in paragraph (3) and
subsection (c)(3) to determine the total of OCS
Receipts derived from such areas during the
period of fiscal year 2007 through fiscal year
2016. The Secretary shall subtract the amount
of $4 billion from the total of such OCS
Receipts. If the result is a positive number,
the Secretary shall divide such positive number
by $4 billion. The resulting quotient, not to
exceed 0.5, shall then be multiplied times 25.
The product of such multiplication shall be
added to 42.5 and the sum shall be the percent
that the Secretary shall share for fiscal year
2017 and all future years from OCS Receipts
derived from all leases located within 4 marine
leagues from any coastline within areas
described in paragraph (2), unless increased by
the provisions of (iii).
``(iii) Beginning October 1, 2017, the
Secretary shall share, in addition to the share
established by (i), as modified by (ii) if any,
amounts determined as follows, with the total
of the amounts shared under this paragraph not
to exceed in any fiscal year an amount equal to
63.75 percent of total OCS Receipts derived
from all leases located within 4 marine leagues
from any coastline within areas described in
paragraph (2)--25 percent of the total of OCS
Receipts derived from areas described in
paragraph (3) and subsection (c)(3) that exceed
the following amounts for the fiscal year
indicated: for fiscal year 2017 the amount of
$900,000,000 and for each fiscal year
thereafter add $100,000,000. Amounts added
under this clause to be shared, if any, for any
fiscal year shall be added to the sharing base
for all subsequent years and shall be allocated
among State Adjacent Zones on a basis
proportional to the result from the calculation
in clause (i).
``(B) Areas not described in paragraph (2).--
Beginning October 1, 2005, the Secretary shall share
63.75 percent of OCS receipts derived from all leases
located completely or partially within 4 marine leagues
from any coastline within areas not described paragraph
(2).
``(5) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2), (3), and
(4) as follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State and any other producing State or States
with a leased tract within its Adjacent Zone within 100
miles of its coastline that generated royalties during
the fiscal year, if the other producing or States have
a coastline point within 300 miles of any portion of
the leased tract, in which case the amount allocated
for the leased tract shall be--
``(i) one-third to the Adjacent State; and
``(ii) two-thirds to each producing State,
including the Adjacent State, inversely
proportional to the distance between the
nearest point on the coastline of the producing
State and the geographic center of the leased
tract.
``(c) Treatment of OCS Receipts From Tracts Partially or Completely
Beyond 100 Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2) and (3).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2005, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region partially or
completely beyond 100 miles of any coastline
that were available for leasing under the 2002-
2007 5-Year Oil and Gas Leasing Program in
effect prior to the date of enactment of the
Deep Ocean Energy Resources Act of 2006.
``(ii) Lease tracts in production prior to
October 1, 2005, partially or completely beyond
100 miles of any coastline located on portions
of the OCS that were not available for leasing
under the 2002-2007 5-Year OCS Oil and Gas
Leasing Program in effect prior to the date of
enactment of the Deep Ocean Energy Resources
Act of 2006.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2005, located in the
Alaska OCS Region partially or completely
beyond 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2006, 4.6 percent.
``(ii) For fiscal year 2007, 5.95 percent.
``(iii) For fiscal year 2008, 6.80 percent.
``(iv) For fiscal year 2009, 7.65 percent.
``(v) For fiscal year 2010, 10.20 percent.
``(vi) For fiscal year 2011, 12.75 percent.
``(vii) For fiscal year 2012, 15.30
percent.
``(viii) For fiscal year 2013, 17.85
percent.
``(ix) For fiscal year 2014, 20.40 percent.
``(x) For fiscal year 2015, 22.95 percent.
``(xi) For fiscal year 2016, 25.50 percent.
``(xii) For fiscal year 2017, 28.05
percent.
``(xiii) For fiscal year 2018, 30.60
percent.
``(xiv) For fiscal year 2019, 33.15
percent.
``(xv) For fiscal year 2020, 35.70 percent.
``(xvi) For fiscal year 2021, 38.25
percent.
``(xvii) For fiscal year 2022 and each
subsequent fiscal year, 42.50 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 6(2) of the Deep
Ocean Energy Resources Act of 2006.
``(3) Immediate receipts sharing.--Beginning October 1,
2005, the Secretary shall share 42.5 percent of OCS Receipts
derived on and after October 1, 2005, from all leases located
partially or completely beyond 100 miles of any coastline not
included within the provisions of paragraph (2), except that
the Secretary shall only share 25 percent of such OCS Receipts
derived from all such leases within a State's Adjacent Zone if
no leasing is allowed within any portion of that State's
Adjacent Zone located completely within 100 miles of any
coastline.
``(4) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2) and (3) as
follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State and any other producing State or States
with a leased tract within its Adjacent Zone partially
or completely beyond 100 miles of its coastline that
generated royalties during the fiscal year, if the
other producing State or States have a coastline point
within 300 miles of any portion of the leased tract, in
which case the amount allocated for the leased tract
shall be--
``(i) one-third to the Adjacent State; and
``(ii) two-thirds to each producing State,
including the Adjacent State, inversely
proportional to the distance between the
nearest point on the coastline of the producing
State and the geographic center of the leased
tract.
``(d) Transmission of Allocations.--
``(1) In general.--Not later than 90 days after the end of
each fiscal year, the Secretary shall transmit--
``(A) to each State 60 percent of such State's
allocations under subsections (b)(5)(A), (b)(5)(B),
(c)(4)(A), and (c)(4)(B) for the immediate prior fiscal
year;
``(B) to each coastal county-equivalent and
municipal political subdivisions of such State a total
of 40 percent of such State's allocations under
subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and
(c)(4)(B), together with all accrued interest thereon;
and
``(C) the remaining allocations under subsections
(b)(5) and (c)(4), together with all accrued interest
thereon.
``(2) Allocations to coastal county-equivalent political
subdivisions.--The Secretary shall make an initial allocation
of the OCS Receipts to be shared under paragraph (1)(B) as
follows:
``(A) 25 percent shall be allocated to coastal
county-equivalent political subdivisions that are
completely more than 25 miles landward of the coastline
and at least a part of which lies not more than 75
miles landward from the coastline, with the allocation
among such coastal county-equivalent political
subdivisions based on population.
``(B) 75 percent shall be allocated to coastal
county-equivalent political subdivisions that are
completely or partially less than 25 miles landward of
the coastline, with the allocation among such coastal
county-equivalent political subdivisions to be further
allocated as follows:
``(i) 25 percent shall be allocated based
on the ratio of such coastal county-equivalent
political subdivision's population to the
coastal population of all coastal county-
equivalent political subdivisions in the State.
``(ii) 25 percent shall be allocated based
on the ratio of such coastal county-equivalent
political subdivision's coastline miles to the
coastline miles of all coastal county-
equivalent political subdivisions in the State
as calculated by the Secretary. In such
calculations, coastal county-equivalent
political subdivisions without a coastline
shall be considered to have 50 percent of the
average coastline miles of the coastal county-
equivalent political subdivisions that do have
coastlines.
``(iii) 25 percent shall be allocated to
all coastal county-equivalent political
subdivisions having a coastline point within
300 miles of the leased tract for which OCS
Receipts are being shared based on a formula
that allocates the funds based on such coastal
county-equivalent political subdivision's
relative distance from the leased tract.
``(iv) 25 percent shall be allocated to all
coastal county-equivalent political
subdivisions having a coastline point within
300 miles of the leased tract for which OCS
Receipts are being shared based on the relative
level of outer Continental Shelf oil and gas
activities in a coastal political subdivision
compared to the level of outer Continental
Shelf activities in all coastal political
subdivisions in the State. The Secretary shall
define the term `outer Continental Shelf oil
and gas activities' for purposes of this
subparagraph to include, but not be limited to,
construction of vessels, drillships, and
platforms involved in exploration, production,
and development on the outer Continental Shelf;
support and supply bases, ports, and related
activities; offices of geologists,
geophysicists, engineers, and other
professionals involved in support of
exploration, production, and development of oil
and gas on the outer Continental Shelf;
pipelines and other means of transporting oil
and gas production from the outer Continental
Shelf; and processing and refining of oil and
gas production from the outer Continental
Shelf. For purposes of this subparagraph, if a
coastal county-equivalent political subdivision
does not have a coastline, its coastal point
shall be the point on the coastline closest to
it.
``(3) Allocations to coastal municipal political
subdivisions.--The initial allocation to each coastal county-
equivalent political subdivision under paragraph (2) shall be
further allocated to the coastal county-equivalent political
subdivision and any coastal municipal political subdivisions
located partially or wholly within the boundaries of the
coastal county-equivalent political subdivision as follows:
``(A) One-third shall be allocated to the coastal
county-equivalent political subdivision.
``(B) Two-thirds shall be allocated on a per capita
basis to the municipal political subdivisions and the
county-equivalent political subdivision, with the
allocation to the latter based upon its population not
included within the boundaries of a municipal political
subdivision.
``(e) Investment of Deposits.--Amounts deposited under this section
shall be invested by the Secretary of the Treasury in securities backed
by the full faith and credit of the United States having maturities
suitable to the needs of the account in which they are deposited and
yielding the highest reasonably available interest rates as determined
by the Secretary of the Treasury.
``(f) Use of Funds.--A recipient of funds under this section may
use the funds for one or more of the following:
``(1) To reduce in-State college tuition at public
institutions of higher learning and otherwise support public
education, including career technical education.
``(2) To make transportation infrastructure improvements.
``(3) To reduce taxes.
``(4) To promote, fund, and provide for--
``(A) coastal or environmental restoration;
``(B) fish, wildlife, and marine life habitat
enhancement;
``(C) waterways construction and maintenance;
``(D) levee construction and maintenance and shore
protection; and
``(E) marine and oceanographic education and
research.
``(5) To promote, fund, and provide for --
``(A) infrastructure associated with energy
production activities conducted on the outer
Continental Shelf;
``(B) energy demonstration projects;
``(C) supporting infrastructure for shore-based
energy projects;
``(D) State geologic programs, including geologic
mapping and data storage programs, and state
geophysical data acquisition;
``(E) State seismic monitoring programs, including
operation of monitoring stations;
``(F) development of oil and gas resources through
enhanced recovery techniques;
``(G) alternative energy development, including bio
fuels, coal-to-liquids, oil shale, tar sands,
geothermal, geopressure, wind, waves, currents, hydro,
and other renewable energy;
``(H) energy efficiency and conservation programs;
and
``(I) front-end engineering and design for
facilities that produce liquid fuels from hydrocarbons
and other biological matter.
``(6) To promote, fund, and provide for--
``(A) historic preservation programs and projects;
``(B) natural disaster planning and response; and
``(C) hurricane and natural disaster insurance
programs.
``(7) For any other purpose as determined by State law.
``(g) No Accounting Required.--No recipient of funds under this
section shall be required to account to the Federal Government for the
expenditure of such funds, except as otherwise may be required by law.
However, States may enact legislation providing for accounting for and
auditing of such expenditures. Further, funds allocated under this
section to States and political subdivisions may be used as matching
funds for other Federal programs.
``(h) Effect of Future Laws.--Enactment of any future Federal
statute that has the effect, as determined by the Secretary, of
restricting any Federal agency from spending appropriated funds, or
otherwise preventing it from fulfilling its pre-existing
responsibilities as of the date of enactment of the statute, unless
such responsibilities have been reassigned to another Federal agency by
the statute with no prevention of performance, to issue any permit or
other approval impacting on the OCS oil and gas leasing program, or any
lease issued thereunder, or to implement any provision of this Act
shall automatically prohibit any sharing of OCS Receipts under this
section directly with the States, and their coastal political
subdivisions, for the duration of the restriction. The Secretary shall
make the determination of the existence of such restricting effects
within 30 days of a petition by any outer Continental Shelf lessee or
producing State.
``(i) Definitions.--In this section:
``(1) Coastal county-equivalent political subdivision.--The
term `coastal county-equivalent political subdivision' means a
political jurisdiction immediately below the level of State
government, including a county, parish, borough in Alaska,
independent municipality not part of a county, parish, or
borough in Alaska, or other equivalent subdivision of a coastal
State, that lies within the coastal zone.
``(2) Coastal municipal political subdivision.--The term
`coastal municipal political subdivision' means a municipality
located within and part of a county, parish, borough in Alaska,
or other equivalent subdivision of a State, all or part of
which coastal municipal political subdivision lies within the
coastal zone.
``(3) Coastal population.--The term `coastal population'
means the population of all coastal county-equivalent political
subdivisions, as determined by the most recent official data of
the Census Bureau.
``(4) Coastal zone.--The term `coastal zone' means that
portion of a coastal State, including the entire territory of
any coastal county-equivalent political subdivision at least a
part of which lies, within 75 miles landward from the
coastline, or a greater distance as determined by State law
enacted to implement this section.
``(5) Bonus bids.--The term `bonus bids' means all funds
received by the Secretary to issue an outer Continental Shelf
minerals lease.
``(6) Royalties.--The term `royalties' means all funds
received by the Secretary from production of oil or natural
gas, or the sale of production taken in-kind, from an outer
Continental Shelf minerals lease.
``(7) Producing state.--The term `producing State' means an
Adjacent State having an Adjacent Zone containing leased tracts
from which OCS Receipts were derived.
``(8) OCS receipts.--The term `OCS Receipts' means bonus
bids, royalties, and conservation of resources fees.''.

SEC. 8. RESERVATION OF LANDS AND RIGHTS.

Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C.
1341) is amended--
(1) in subsection (a) by adding at the end the following:
``The President may partially or completely revise or revoke
any prior withdrawal made by the President under the authority
of this section. The President may not revise or revoke a
withdrawal that is extended by a State under subsection (h),
nor may the President withdraw from leasing any area for which
a State failed to prohibit, or petition to prohibit, leasing
under subsection (g). Further, in the area of the outer
Continental Shelf more than 100 miles from any coastline, not
more than 25 percent of the acreage of any OCS Planning Area
may be withdrawn from leasing under this section at any point
in time. A withdrawal by the President may be for a term not to
exceed 10 years. When considering potential uses of the outer
Continental Shelf, to the maximum extent possible, the
President shall accommodate competing interests and potential
uses.'';
(2) by adding at the end the following:
``(g) Availability for Leasing Within Certain Areas of the Outer
Continental Shelf.--
``(1) Prohibition against leasing.--
``(A) Unavailable for leasing without state
request.--Except as otherwise provided in this
subsection, from and after enactment of the Deep Ocean
Energy Resources Act of 2006, the Secretary shall not
offer for leasing for oil and gas, or natural gas, any
area within 50 miles of the coastline that was
withdrawn from disposition by leasing in the Atlantic
OCS Region or the Pacific OCS Region, or the Gulf of
Mexico OCS Region Eastern Planning Area, as depicted on
the maps referred to in this subparagraph, under the
`Memorandum on Withdrawal of Certain Areas of the
United States Outer Continental Shelf from Leasing
Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated
June 12, 1998, or any area within 50 miles of the
coastline not withdrawn under that Memorandum that is
included within the Gulf of Mexico OCS Region Eastern
Planning Area as indicated on the map entitled `Gulf of
Mexico OCS Region State Adjacent Zones and OCS Planning
Areas' or the Florida Straits Planning Area as
indicated on the map entitled `Atlantic OCS Region
State Adjacent Zones and OCS Planning Areas', both of
which are dated September 2005 and on file in the
Office of the Director, Minerals Management Service.
``(B) Areas between 50 and 100 miles from the
coastline.--Unless an Adjacent State petitions under
subsection (h) within one year after the date of the
enactment of the Deep Ocean Energy Resources Act of
2006 for natural gas leasing or by June 30, 2009, for
oil and gas leasing, the Secretary shall offer for
leasing any area more than 50 miles but less than 100
miles from the coastline that was withdrawn from
disposition by leasing in the Atlantic OCS Region, the
Pacific OCS Region, or the Gulf of Mexico OCS Region
Eastern Planning Area, as depicted on the maps referred
to in this subparagraph, under the `Memorandum on
Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition', 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998, or any area
more than 50 miles but less than 100 miles of the
coastline not withdrawn under that Memorandum that is
included within the Gulf of Mexico OCS Region Eastern
Planning Area as indicated on the map entitled `Gulf of
Mexico OCS Region State Adjacent Zones and OCS Planning
Areas' or within the Florida Straits Planning Area as
indicated on the map entitled `Atlantic OCS Region
State Adjacent Zones and OCS Planning Areas', both of
which are dated September 2005 and on file in the
Office of the Director, Minerals Management Service.
``(2) Revocation of withdrawal.--The provisions of the
`Memorandum on Withdrawal of Certain Areas of the United States
Outer Continental Shelf from Leasing Disposition', 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked
and are no longer in effect. The 2002-2007 5-Year Outer
Continental Shelf Oil and Gas Leasing Program is hereby amended
to include the areas added to the Gulf of Mexico OCS Region
Central Planning Area by this Act to the extent that such areas
were included within the original boundaries of proposed Lease
Sale 181. The amendment to such leasing program includes a sale
in such additional areas, which shall be held no later than
April 30, 2007. The Final Environmental Impact Statement
prepared for this area for Lease Sale 181 shall be deemed
sufficient for all purposes for each lease sale in which such
area is offered for lease during the 2002-2007 5-Year Outer
Continental Shelf Oil and Gas Leasing Program without need for
supplementation. Any tract only partially added to the Gulf of
Mexico OCS Region Central Planning Area by this Act shall be
eligible for leasing of the part of such tract that is included
within the Gulf of Mexico OCS Region Central Planning Area, and
the remainder of such tract that lies outside of the Gulf of
Mexico OCS Region Central Planning Area may be developed and
produced by the lessee of such partial tract using extended
reach or similar drilling from a location on a leased area.
Further, any area in the OCS withdrawn from leasing may be
leased, and thereafter developed and produced by the lessee
using extended reach or similar drilling from a location on a
leased area located in an area available for leasing.
``(3) Petition for leasing.--
``(A) In general.--The Governor of the State, upon
concurrence of its legislature, may submit to the
Secretary a petition requesting that the Secretary make
available any area that is within the State's Adjacent
Zone, included within the provisions of paragraph (1),
and that (i) is greater than 25 miles from any point on
the coastline of a Neighboring State for the conduct of
offshore leasing, pre-leasing, and related activities
with respect to natural gas leasing; or (ii) is greater
than 50 miles from any point on the coastline of a
Neighboring State for the conduct of offshore leasing,
pre-leasing, and related activities with respect to oil
and gas leasing. The Adjacent State may also petition
for leasing any other area within its Adjacent Zone if
leasing is allowed in the similar area of the Adjacent
Zone of the applicable Neighboring State, or if not
allowed, if the Neighboring State, acting through its
Governor, expresses its concurrence with the petition.
The Secretary shall only consider such a petition upon
making a finding that leasing is allowed in the similar
area of the Adjacent Zone of the applicable Neighboring
State or upon receipt of the concurrence of the
Neighboring State. The date of receipt by the Secretary
of such concurrence by the Neighboring State shall
constitute the date of receipt of the petition for that
area for which the concurrence applies. Except for any
area described in the last sentence of paragraph (2), a
petition for leasing any part of the Alabama Adjacent
Zone that is a part of the Gulf of Mexico Eastern
Planning Area, as indicated on the map entitled `Gulf
of Mexico OCS Region State Adjacent Zones and OCS
Planning Areas' which is dated September 2005 and on
file in the Office of the Director, Minerals Management
Service, shall require the concurrence of both Alabama
and Florida.
``(B) Limitations on leasing.--In its petition, a
State with an Adjacent Zone that contains leased tracts
may condition new leasing for oil and gas, or natural
gas for tracts within 25 miles of the coastline by--
``(i) requiring a net reduction in the
number of production platforms;
``(ii) requiring a net increase in the
average distance of production platforms from
the coastline;
``(iii) limiting permanent surface
occupancy on new leases to areas that are more
than 10 miles from the coastline;
``(iv) limiting some tracts to being
produced from shore or from platforms located
on other tracts; or
``(v) other conditions that the Adjacent
State may deem appropriate as long as the
Secretary does not determine that production is
made economically or technically impracticable
or otherwise impossible.
``(C) Action by secretary.--Not later than 90 days
after receipt of a petition under subparagraph (A), the
Secretary shall approve the petition, unless the
Secretary determines that leasing the area would
probably cause serious harm or damage to the marine
resources of the State's Adjacent Zone. Prior to
approving the petition, the Secretary shall complete an
environmental assessment that documents the anticipated
environmental effects of leasing in the area included
within the scope of the petition.
``(D) Failure to act.--If the Secretary fails to
approve or deny a petition in accordance with
subparagraph (C) the petition shall be considered to be
approved 90 days after receipt of the petition.
``(E) Amendment of the 5-year leasing program.--
Notwithstanding section 18, within 180 days of the
approval of a petition under subparagraph (C) or (D),
after the expiration of the time limits in paragraph
(1)(B), and within 180 days after the enactment of the
Deep Ocean Energy Resources Act of 2006 for the areas
made available for leasing under paragraph (2), the
Secretary shall amend the current 5-Year Outer
Continental Shelf Oil and Gas Leasing Program to
include a lease sale or sales for at least 75 percent
of the associated areas, unless there are, from the
date of approval, expiration of such time limits, or
enactment, as applicable, fewer than 12 months
remaining in the current 5-Year Leasing Program in
which case the Secretary shall include the associated
areas within lease sales under the next 5-Year Leasing
Program. For purposes of amending the 5-Year Program in
accordance with this section, further consultations
with States shall not be required. For purposes of this
section, an environmental assessment performed under
the provisions of the National Environmental Policy Act
of 1969 to assess the effects of approving the petition
shall be sufficient to amend the 5-Year Leasing
Program.
``(h) Option to Extend Withdrawal From Leasing Within Certain Areas
of the Outer Continental Shelf.--A State, through its Governor and upon
the concurrence of its legislature, may extend for a period of time of
up to 5 years for each extension the withdrawal from leasing for all or
part of any area within the State's Adjacent Zone located more than 50
miles, but less than 100 miles, from the coastline that is subject to
subsection (g)(1)(B). A State may extend multiple times for any
particular area but not more than once per calendar year for any
particular area. A State must prepare separate extensions, with
separate votes by its legislature, for oil and gas leasing and for
natural gas leasing. An extension by a State may affect some areas to
be withdrawn from all leasing and some areas to be withdrawn only from
one type of leasing. Extensions of the withdrawal from leasing of any
part of the Alabama Adjacent Zone that is more than 50 miles, but less
than 100 miles, from the coastline that is a part of the Gulf of Mexico
OCS Region Eastern Planning Area, as indicated on the map entitled
`Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas'
which is dated September 2005 and on file in the Office of the
Director, Minerals Management Service, may be made by either Alabama or
Florida.
``(i) Effect of Other Laws.--Adoption by any Adjacent State of any
constitutional provision, or enactment of any State statute, that has
the effect, as determined by the Secretary, of restricting either the
Governor or the Legislature, or both, from exercising full discretion
related to subsection (g) or (h), or both, shall automatically (1)
prohibit any sharing of OCS Receipts under this Act with the Adjacent
State, and its coastal political subdivisions, and (2) prohibit the
Adjacent State from exercising any authority under subsection (h), for
the duration of the restriction. The Secretary shall make the
determination of the existence of such restricting constitutional
provision or State statute within 30 days of a petition by any outer
Continental Shelf lessee or coastal State.
``(j) Prohibition on Leasing East of the Military Mission Line.--
``(1) Notwithstanding any other provision of law, from and
after the enactment of the Deep Ocean Energy Resources Act of
2006, no area of the outer Continental Shelf located in the
Gulf of Mexico east of the military mission line may be offered
for leasing for oil and gas or natural gas.
``(2) In this subsection, the term `military mission line'
means a line located at 86 degrees, 41minutes West Longitude,
and extending south from the coast of Florida to the outer
boundary of United States territorial waters in the Gulf of
Mexico.''.

SEC. 9. OUTER CONTINENTAL SHELF LEASING PROGRAM.

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

SEC. 10. COORDINATION WITH ADJACENT STATES.

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

SEC. 11. ENVIRONMENTAL STUDIES.

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

SEC. 13. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 2006.

(a) Findings.--The Congress finds the following:
(1) Energy and minerals exploration, development, and
production on Federal onshore and offshore lands, including
bio-based fuel, natural gas, minerals, oil, geothermal, and
power from wind, waves, currents, and thermal energy, involves
significant outlays of funds by Federal and State wildlife,
fish, and natural resource management agencies for
environmental studies, planning, development, monitoring, and
management of wildlife, fish, air, water, and other natural
resources.
(2) State wildlife, fish, and natural resource management
agencies are funded primarily through permit and license fees
paid to the States by the general public to hunt and fish, and
through Federal excise taxes on equipment used for these
activities.
(3) Funds generated from consumptive and recreational uses
of wildlife, fish, and other natural resources currently are
inadequate to address the natural resources related to energy
and minerals development on Federal onshore and offshore lands.
(4) Funds available to Federal agencies responsible for
managing Federal onshore and offshore lands and Federal-trust
wildlife and fish species and their habitats are inadequate to
address the natural resources related to energy and minerals
development on Federal onshore and offshore lands.
(5) Receipts derived from sales, bonus bids, and royalties
under the mineral leasing laws of the United States are paid to
the Treasury through the Minerals Management Service of the
Department of the Interior.
(6) None of the receipts derived from sales, bonus bids,
and royalties under the minerals leasing laws of the United
States are paid to the Federal or State agencies to examine,
monitor, and manage wildlife, fish, air, water, and other
natural resources related to natural gas, oil, and mineral
exploration and development.
(b) Purposes.--It is the purpose of this section to--
(1) authorize expenditures for the monitoring and
management of wildlife and fish, and their habitats, and air,
water, and other natural resources related to energy and
minerals development on Federal onshore and offshore lands;
(2) authorize expenditures for each fiscal year to the
Secretary of the Interior and the States; and
(3) use the appropriated funds to secure the necessary
trained workforce or contractual services to conduct
environmental studies, planning, development, monitoring, and
post-development management of wildlife and fish and their
habitats and air, water, and other natural resources that may
be related to bio-based fuel, gas, mineral, oil, wind, or other
energy exploration, development, transportation, transmission,
and associated activities on Federal onshore and offshore
lands, including, but not limited to--
(A) pertinent research, surveys, and environmental
analyses conducted to identify any impacts on wildlife,
fish, air, water, and other natural resources from
energy and mineral exploration, development,
production, and transportation or transmission;
(B) projects to maintain, improve, or enhance
wildlife and fish populations and their habitats or
air, water, or other natural resources, including
activities under the Endangered Species Act of 1973;
(C) research, surveys, environmental analyses, and
projects that assist in managing, including mitigating
either onsite or offsite, or both, the impacts of
energy and mineral activities on wildlife, fish, air,
water, and other natural resources; and
(D) projects to teach young people to live off the
land.
(c) Definitions.--In this section:
(1) Enhancement program.--The term ``Enhancement Program''
means the Federal Energy Natural Resources Enhancement Program
established by this section.
(2) State.--The term ``State'' means the Governor of the
State.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the Enhancement Program $150,000,000 for each
of fiscal years 2007 through 2017.
(e) Establishment of Federal Energy Natural Resources Enhancement
Program.--
(1) In general.--There is established the Federal Energy
Natural Resources Enhancement Program.
(2) Payment to secretary of the interior.--Beginning with
fiscal year 2007, and in each fiscal year thereafter, one-third
of amounts appropriated for the Enhancement Program shall be
available to the Secretary of the Interior for use for the
purposes described in subsection (b)(3).
(3) Payment to states.--
(A) In general.--Beginning with fiscal year 2007,
and in each fiscal year thereafter, two-thirds of
amounts appropriated for the Enhancement Program shall
be available to the States for use for the purposes
described in (b)(3).
(B) Use of payments by state.--Each State shall use
the payments made under this paragraph only for
carrying out projects and programs for the purposes
described in (b)(3).
(C) Encourage use of private funds by state.--Each
State shall use the payments made under this paragraph
to leverage private funds for carrying out projects for
the purposes described in (b)(3).
(f) Limitation on Use.--Amounts made available under this section
may not be used for the purchase of any interest in land.
(g) Reports to Congress.--
(1) In general.--Beginning in fiscal year 2008 and
continuing for each fiscal year thereafter, the Secretary of
the Interior and each State receiving funds from the
Enhancement Fund shall submit a report to the Committee on
Energy and Natural Resources of the Senate and the Committee on
Resources of the House of Representatives.
(2) Required information.--Reports submitted to the
Congress by the Secretary of the Interior and States under this
subsection shall include the following information regarding
expenditures during the previous fiscal year:
(A) A summary of pertinent scientific research and
surveys conducted to identify impacts on wildlife,
fish, and other natural resources from energy and
mineral developments.
(B) A summary of projects planned and completed to
maintain, improve or enhance wildlife and fish
populations and their habitats or other natural
resources.
(C) A list of additional actions that assist, or
would assist, in managing, including mitigating either
onsite or offsite, or both, the impacts of energy and
mineral development on wildlife, fish, and other
natural resources.
(D) A summary of private (non-Federal) funds used
to plan, conduct, and complete the plans and programs
identified in paragraphs (2)(A) and (2)(B).

SEC. 14. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF
APPROPRIATED FUNDS FOR CERTAIN PURPOSES.

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

SEC. 15. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

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

SEC. 16. REPURCHASE OF CERTAIN LEASES.

(a) Authority to Repurchase and Cancel Certain Leases.--The
Secretary of the Interior shall repurchase and cancel any Federal oil
and gas, geothermal, coal, oil shale, tar sands, or other mineral
lease, whether onshore or offshore, but not including any outer
Continental Shelf oil and gas leases that are subject to litigation in
the Court of Federal Claims on January 1, 2006, if the Secretary finds
that such lease qualifies for repurchase and cancellation under the
regulations authorized by this section.
(b) Regulations.--Not later than 365 days after the date of the
enactment of this Act, the Secretary shall publish a final regulation
stating the conditions under which a lease referred to in subsection
(a) would qualify for repurchase and cancellation, and the process to
be followed regarding repurchase and cancellation. Such regulation
shall include, but not be limited to, the following:
(1) The Secretary shall repurchase and cancel a lease after
written request by the lessee upon a finding by the Secretary
that--
(A) a request by the lessee for a required permit
or other approval complied with applicable law, except
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), and terms of the lease and such permit or
other approval was denied;
(B) a Federal agency failed to act on a request by
the lessee for a required permit, other approval, or
administrative appeal within a regulatory or statutory
time-frame associated with the requested action,
whether advisory or mandatory, or if none, within 180
days; or
(C) a Federal agency attached a condition of
approval, without agreement by the lessee, to a
required permit or other approval if such condition of
approval was not mandated by Federal statute or
regulation in effect on the date of lease issuance, or
was not specifically allowed under the terms of the
lease.
(2) A lessee shall not be required to exhaust
administrative remedies regarding a permit request,
administrative appeal, or other required request for approval
for the purposes of this section.
(3) The Secretary shall make a final agency decision on a
request by a lessee under this section within 180 days of
request.
(4) Compensation to a lessee to repurchase and cancel a
lease under this section shall be the amount that a lessee
would receive in a restitution case for a material breach of
contract.
(5) Compensation shall be in the form of a check or
electronic transfer from the Department of the Treasury from
funds deposited into miscellaneous receipts under the authority
of the same Act that authorized the issuance of the lease being
repurchased.
(6) Failure of the Secretary to make a final agency
decision on a request by a lessee under this section within 180
days of request shall result in a 10 percent increase in the
compensation due to the lessee if the lease is ultimately
repurchased.
(c) No Prejudice.--This section shall not be interpreted to
prejudice any other rights that the lessee would have in the absence of
this section.

SEC. 17. OFFSITE ENVIRONMENTAL MITIGATION.

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

SEC. 18. MINERALS MANAGEMENT SERVICE.

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

SEC. 19. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS
AND OTHER FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC
RESEARCH, OR OTHER USES.

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

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

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

SEC. 20. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF
OCS OIL AND NATURAL GAS RESOURCES.

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

SEC. 21. MINING AND PETROLEUM SCHOOLS.

(a) Maintenance and Restoration of Existing and Historic Petroleum
and Mining Engineering Programs.--Public Law 98-409 (30 U.S.C. 1221 et
seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE.

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

``SEC. 2. POLICY.

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

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

``(a) The Secretary of the Interior (in this Act referred to as the
`Secretary') shall provide funds to historic and existing State-
chartered recognized petroleum or mining schools to assist such
schools, universities, and institutions in maintaining programs in
petroleum, mining, and mineral engineering education and research. All
funds shall be directed only to these programs and shall be subject to
the conditions of this section. Such funds shall not be less than 25
percent of the annual outlay of funds authorized by section 23(d) of
the Deep Ocean Energy Resources Act of 2006.
``(b) In this Act the term `historic and existing State-chartered
recognized petroleum or mining school' means a school, university, or
educational institution with the presence of an engineering program
meeting the specific program criteria, established by the member
societies of ABET, Inc., for petroleum, mining, or mineral engineering
and that is accredited on the date of enactment of the Deep Ocean
Energy Resources Act of 2006 by ABET, Inc.
``(c) It shall be the duty of each school, university, or
institution receiving funds under this section to provide for and
enhance the training of undergraduate and graduate petroleum, mining,
and mineral engineers through research, investigations, demonstrations,
and experiments. All such work shall be carried out in a manner that
will enhance undergraduate education.
``(d) Each school, university, or institution receiving funds under
this Act shall maintain the program for which the funds are provided
for 10 years after the date of the first receipt of such funds and take
steps described in its application for funding to increase the number
of undergraduate students enrolled in and completing the programs of
study in petroleum, mining, and mineral engineering.
``(e) The research, investigation, demonstration, experiment, and
training authorized by this section may include development and
production of conventional and non-conventional fuel resources, the
production of metallic and non-metallic mineral resources including
industrial mineral resources, and the production of stone, sand, and
gravel. In all cases the work carried out with funds made available
under this Act shall include a significant opportunity for
participation by undergraduate students.
``(f) Research funded by this Act related to energy and mineral
resource development and production may include--
``(1) studies of petroleum, mining, and mineral extraction
and immediately related beneficiation technology;
``(2) mineral economics, reclamation technology, and
practices for active operations;
``(3) the development of re-mining systems and technologies
to facilitate reclamation that fosters the ultimate recovery of
resources at abandoned petroleum, mining, and aggregate
production sites; and
``(4) research on ways to extract petroleum and mineral
resources that reduce the environmental impact of those
activities.
``(g) Grants for basic science and engineering studies and research
shall not require additional participation by funding partners. Grants
for studies to demonstrate the proof of concept for science and
engineering or the demonstration of feasibility and implementation
shall include participation by industry and may include funding from
other Federal agencies.
``(h)(1) No funds made available under this section shall be
applied to the acquisition by purchase or lease of any land or
interests therein, or the rental, purchase, construction, preservation,
or repair of any building.
``(2) Funding made available under this section may be used with
the express approval of the Secretary for proposals that will provide
for maintaining or upgrading of existing laboratories and laboratory
equipment. Funding for such maintenance shall not be used for
university overhead expenses.
``(3) Funding made available under this Act may be used for
maintaining and upgrading mines and oil and gas drilling rigs owned by
a school, university, or institution described in this section that are
used for undergraduate and graduate training and worker safety
training. All requests for funding such mines and oil and gas drilling
rigs must demonstrate that they have been owned by the school,
university, or institution for 5 years prior to the date of enactment
of the Deep Ocean Energy Resources Act of 2006 and have been actively
used for instructional or training purposes during that time.
``(4) Any funding made available under this section for research,
investigation, demonstration, experiment, or training shall not be used
for university overhead charges in excess of 10 percent of the amount
authorized by the Secretary.

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

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

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

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

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

``(a) Twelve percent of the annual outlay of funds authorized by
section 23(d) of the Deep Ocean Energy Resources Act of 2006 may be
granted to schools, universities, and institutions other than those
described in sections 3 and 4, with particular consideration awarded to
minority serving institutions.
``(b) The Secretary shall determine the eligibility of a college or
university to receive funding under this Act using criteria that
include--
``(1) the presence of a substantial program of
undergraduate and graduate geoscience instruction and research
in one or more of the following specialties: petroleum geology,
geothermal geology, mineral exploration geology, economic
geology, industrial minerals geology, mining geology, petroleum
geophysics, mining geophysics, geological engineering, or
geophysical engineering that has a demonstrated history of
achievement;
``(2) evidence of institutional commitment for the purposes
of this Act that includes a significant opportunity for
participation by undergraduate students in research;
``(3) evidence that such school, university, or institution
has or can obtain significant industrial cooperation in
activities within the scope of this Act;
``(4) agreement by the school, university, or institution
to maintain the programs for which the funding is sought for
the 10-year period beginning on the date the school,
university, or institution first receives such funds; and
``(5) requiring that such funding shall be for the purposes
set forth in subsections (c) through (h) of section 3 and
subject to the conditions set forth in section 3(h).
``(c) The Secretary shall seek the advice of the Committee
established pursuant to section 11 in determining the criteria used to
carry out this section.

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

``(a) The Secretary shall utilize 10 percent of the annual outlay
of funds authorized by section 23(d) of the Deep Ocean Energy Resources
Act of 2006 for the purpose of providing merit-based scholarships for
undergraduate education, graduate fellowships, and postdoctoral
fellowships.
``(b) In order to receive a scholarship or a graduate fellowship,
an individual student must be a lawful permanent resident of the United
States or a United States citizen and must agree in writing to complete
a course of studies and receive a degree in petroleum, mining, or
mineral engineering, petroleum geology, geothermal geology, mining and
economic geology, petroleum and mining geophysics, or mineral
economics.
``(c) The regulations required by section 9 shall require that an
individual, in order to retain a scholarship or graduate fellowship,
must continue in one of the course of studies listed in subsection (b)
of this section, must remain in good academic standing, as determined
by the school, institution, or university and must allow for
reinstatement of the scholarship or graduate fellowship by the
Secretary, upon the recommendation of the school or institution. Such
regulations may also provide for recovery of funds from an individual
who fails to complete any of the courses of study listed in subsection
(b) of this section after notice that such completion is a requirement
of receipt funding under this Act.
``(d) To carry out this section, the Secretary shall award grants
to schools, universities, and institutions that are eligible to receive
funding under section 3, 4 or 6. A school, university, or institution
receiving funding under this subsection shall be responsible for
enforcing the requirements of this section for scholarship or
fellowship students and shall return to the Secretary any funds
recovered from an individual under subsection (c). An institution
seeking funds under this subsection shall describe, in its application
to the Secretary for funding, the number of students that would be
awarded scholarships or fellowships if the application is approved, how
such students would be selected, and how the provisions of this section
will be enforced.

``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.

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

``SEC. 9. DUTIES OF SECRETARY.

``(a) The Secretary, acting through the Assistant Secretary for
Land and Minerals Management, shall administer this Act and shall
prescribe such rules and regulations as may be necessary to carry out
its provisions not later than 1 year after the enactment of the Deep
Ocean Energy Resources Act of 2006.
``(b)(1) There is established in the Department of the Interior,
under the supervision of the Assistant Secretary for Land and Minerals
Management, an office to be known as the Office of Petroleum and Mining
Schools (hereafter in this Act referred to as the `Office') to
administer the provisions of this Act. There shall be a Director of the
Office who shall be a member of the Senior Executive Service. The
position of the Director shall be allocated from among the existing
Senior Executive Service positions at the Department of the Interior
and shall be a career reserved position as defined in section
3132(a)(8) of title 5, United States Code.
``(2) The Director is authorized to appoint a Deputy Director and
to employ such officers and employees as may be necessary to enable the
Office to carry out its functions. Such appointments shall be made from
existing positions at the Department of the Interior, and shall be
subject to the provisions of title 5, United States Code, governing
appointments in the competitive service. Such positions shall be paid
in accordance with the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General
Schedule pay rates.
``(3) In carrying out his or her functions, the Director shall
assist and advise the Secretary and the Committee pursuant to section
11 of this Act by--
``(A) providing professional and administrative staff
support for the Committee including recordkeeping and
maintaining minutes of all Committee and subcommittee meetings;
``(B) coordinating the activities of the Committee with
Federal agencies and departments, and the schools,
universities, and institutions to which funds are provided
under this Act;
``(C) maintaining accurate records of funds disbursed for
all scholarship and fellowship grants, research grants, and
grants for career technical education purposes;
``(D) preparing any regulations required to implement this
Act;
``(E) conducting site visits at schools, universities, and
institutions receiving funding under this Act; and
``(F) serving as a central repository for reports and
clearing house for public information on research funded by
this Act.
``(4) The Director or an employee of the Office shall be present at
each meeting of the Committee pursuant to section 11 or a subcommittee
of such Committee.
``(5) The Director is authorized to contract with public or private
agencies, institutions, and organizations and with individuals without
regard to section 3324(a) and (b) of title 31, United States Code, and
section 5 of title 41, United States Code, in carrying out his or her
functions.
``(6) As needed the Director shall ascertain whether the
requirements of this Act have been met by schools, universities,
institutions, and individuals.
``(c) The Secretary, acting through the Office of Petroleum and
Mining Schools, shall furnish such advice and assistance as will best
promote the purposes of this Act, shall participate in coordinating
research, investigations, demonstrations, and experiments initiated
under this Act, shall indicate to schools, universities, and
institutions receiving funds under this Act such lines of inquiry that
seem most important, and shall encourage and assist in the
establishment and maintenance of cooperation between such schools,
universities, and institutions, other research organizations, the
Department of the Interior, and other Federal agencies.
``(d) The Secretary shall establish procedures--
``(1) to ensure that each employee and contractor of the
Office established by this section and each member of the
Committee pursuant to section 11 of this Act shall disclose to
the Secretary any financial interests in or financial
relationships with schools, universities, institutions or
individuals receiving funds, scholarships or fellowships under
this Act;
``(2) to require any employee, contractor, or member of the
Committee with a financial relationship disclosed under
paragraph (1) to recuse themselves from--
``(A) any recommendation or decision regarding the
awarding of funds, scholarships or fellowships; or
``(B) any review, report, analysis or investigation
regarding compliance with the provisions of this Act by
a school, university, institution or any individual.
``(e) On or before the first day of July of each year beginning
after the date of enactment of this sentence, schools, universities,
and institutions receiving funds under this Act shall certify
compliance with this Act and upon request of the Director of the office
established by this section provide documentation of such compliance.
``(f) An individual granted a scholarship or fellowship with funds
provided under this Act shall through their respective school,
university, or institution, advise the Director of the office
established by this Act of progress towards completion of the course of
studies and upon the awarding of the degree within 30 days after the
award.
``(g) The regulations required by this section shall include a
preference for veterans and service members who have received or will
receive either the Afghanistan Campaign Medal or the Iraq Campaign
Medal as authorized by Public Law 108-234, and Executive Order No.
13363.

``SEC. 10. COORDINATION.

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

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

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

``SEC. 12. CAREER TECHNICAL EDUCATION.

``(a) Up to 25 percent of the annual outlay of funds authorized by
section 23(d) of the Deep Ocean Energy Resources Act of 2006 may be
granted to schools or institutions including, but not limited to,
colleges, universities, community colleges, tribal colleges and
universities, technical institutes, secondary schools, other than those
described in sections 3, 4, 5, and 6, and jointly sponsored
apprenticeship and training programs that are authorized by Federal
law.
``(b) The Secretary shall determine the eligibility of a school or
institution to receive funding under this section using criteria that
include--
``(1) the presence of a State-approved program in mining
engineering technology, petroleum engineering technology,
industrial engineering technology, or industrial technology
that--
``(A) is focused on technology and its use in
energy and mineral production and related maintenance,
operational safety, or energy infrastructure protection
and security;
``(B) prepares students for advanced or supervisory
roles in the mining industry or the petroleum industry;
and
``(C) grants either an associate's degree or a
baccalaureate degree in one of the subjects listed in
subparagraph (A);
``(2) the presence of a program, including a secondary
school vocational education program or career academy, that
provides training for individuals entering the petroleum, coal
mining, or mineral mining industries; or
``(3) the presence of a State-approved program of career
technical education at a secondary school, offered
cooperatively with a community college in one of the industrial
sectors of--
``(A) agriculture, forestry, or fisheries;
``(B) utilities;
``(C) construction;
``(D) manufacturing; and
``(E) transportation and warehousing.
``(c) Schools or institutions receiving funds under this section
must show evidence of an institutional commitment for the purposes of
career technical education and provide evidence that the school or
institution has received or will receive industry cooperation in the
form of equipment, employee time, or donations of funds to support the
activities that are within the scope of this section.
``(d) Schools or institutions receiving funds under this section
must agree to maintain the programs for which the funding is sought for
a period of 10 years beginning on the date the school or institution
receives such funds, unless the Secretary finds that a shorter period
of time is appropriate for the local labor market or is required by
State authorities.
``(e) Schools or institutions receiving funds under this section
may combine these funds with State funds, and other Federal funds where
allowed by law, to carry out programs described in this section,
however the use of the funds received under this section must be
reported to the Secretary not less than annually.
``(f) The Secretary shall seek the advice of the Committee
established pursuant to section 11 in determining the criteria used to
carry out this section.

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

``(a) Physical Science, Engineering and Technology Scholarship
Program.--
``(1) From the amount of funds available to carry out this
section, the Secretary shall use 30 percent of that amount to
provide financial assistance for education in physical
sciences, engineering, and engineering or industrial technology
and disciplines that, as determined by the Secretary, are
critical to the functions of the Department of the Interior and
are needed in the Department of the Interior workforce.
``(2) The Secretary of the Interior may award a scholarship
in accordance with this section to a person who--
``(A) is a citizen of the United States;
``(B) is pursuing an undergraduate or advanced
degree in a critical skill or discipline described in
paragraph (1) at an institution of higher education;
and
``(C) enters into a service agreement with the
Secretary of the Interior as described in subsection
(e).
``(3) The amount of the financial assistance provided under
a scholarship awarded to a person under this subsection shall
be the amount determined by the Secretary of the Interior as
being necessary to pay all educational expenses incurred by
that person, including tuition, fees, cost of books, laboratory
expenses, and expenses of room and board. The expenses paid,
however, shall be limited to those educational expenses
normally incurred by students at the institution of higher
education involved.
``(b) Scholarship Program for Students Attending Minority Serving
Higher Education Institutions.--
``(1) From the amount of funds available to carry out this
section, the Secretary shall use 35 percent of that amount to
award scholarships in accordance with this section to persons
who--
``(A) are enrolled in a Minority Serving Higher
Education Institutions.
``(B) are citizens or nationals of the United
States;
``(C) are pursuing an undergraduate or advanced
degree in agriculture, engineering, engineering or
industrial technology, or physical sciences, or other
discipline that is found by the Secretary to be
critical to the functions of the Department of the
Interior and are needed in the Department of the
Interior workforce; and
``(D) enter into a service agreement with the
Secretary of the Interior as described in subsection
(e).
``(2) The amount of the financial assistance provided under
a scholarship awarded to a person under this subsection shall
be the amount determined by the Secretary of the Interior as
being necessary to pay all educational expenses incurred by
that person, including tuition, fees, cost of books, laboratory
expenses, and expenses of room and board. The expenses paid,
however, shall be limited to those educational expenses
normally incurred by students at the institution of higher
education involved.
``(c) Education Partnerships With Minority Serving Higher Education
Institutions.--
``(1) The Secretary shall require the director of each
Bureau and Office, to foster the participation of Minority
Serving Higher Education Institutions in any regulatory
activity, land management activity, science activity,
engineering or industrial technology activity, or engineering
activity carried out by the Department of the Interior.
``(2) From the amount of funds available to carry out this
section, the Secretary shall use 35 percent of that amount to
support activities at Minority Serving Higher Education
Institutions by--
``(A) funding faculty and students in these
institutions in collaborative research projects that
are directly related to the Departmental or Bureau
missions;
``(B) allowing equipment transfer to Minority
Serving Higher Education Institutions as a part of a
collaborative research program directly related to a
Departmental or Bureau mission;
``(C) allowing faculty and students at these
Minority Serving Higher Education Institutions to
participate Departmental and Bureau training
activities;
``(D) funding paid internships in Departmental and
Bureau facilities for students at Minority Serving
Higher Education Institutions;
``(E) assigning Departmental and Bureau personnel
to positions located at Minority Serving Higher
Educational Institutions to serve as mentors to
students interested in a science, technology or
engineering disciplines related to the mission of the
Department or the Bureaus.
``(d) Service Agreement for Recipients of Assistance.--
``(1) To receive financial assistance under subsection (a)
or (b) of this section--
``(A) in the case of an employee of the Department
of the Interior, the employee shall enter into a
written agreement to continue in the employment of the
department for the period of obligated service
determined under paragraph (2); and
``(B) in the case of a person not an employee of
the Department of the Interior, the person shall enter
into a written agreement to accept and continue
employment in the Department of the Interior for the
period of obligated service determined under paragraph
(2).
``(2) For the purposes of this section, the period of
obligated service for a recipient of a scholarship under this
section shall be the period determined by the Secretary of the
Interior as being appropriate to obtain adequate service in
exchange for the financial assistance provided under the
scholarship. In no event may the period of service required of
a recipient be less than the total period of pursuit of a
degree that is covered by the scholarship. The period of
obligated service is in addition to any other period for which
the recipient is obligated to serve in the civil service of the
United States.
``(3) An agreement entered into under this subsection by a
person pursuing an academic degree shall include any terms and
conditions that the Secretary of the Interior determines
necessary to protect the interests of the United States or
otherwise appropriate for carrying out this section.
``(e) Refund for Period of Unserved Obligated Service.--
``(1) A person who voluntarily terminates service before
the end of the period of obligated service required under an
agreement entered into under subsection (d) shall refund to the
United States an amount determined by the Secretary of the
Interior as being appropriate to obtain adequate service in
exchange for financial assistance.
``(2) An obligation to reimburse the United States imposed
under paragraph (1) is for all purposes a debt owed to the
United States.
``(3) The Secretary of the Interior may waive, in whole or
in part, a refund required under paragraph (1) if the Secretary
determines that recovery would be against equity and good
conscience or would be contrary to the best interests of the
United States.
``(4) A discharge in bankruptcy under title 11, United
States Code, that is entered less than five years after the
termination of an agreement under this section does not
discharge the person signing such agreement from a debt arising
under such agreement or under this subsection.
``(f) Relationship to Other Programs.--The Secretary of the
Interior shall coordinate the provision of financial assistance under
the authority of this section with the provision of financial
assistance under the authorities provided in this Act in order to
maximize the benefits derived by the Department of Interior from the
exercise of all such authorities.
``(g) Report.--Not later than September 1 of each year, the
Secretary of the Interior shall submit to the Congress a report on the
status of the assistance program carried out under this section. The
report shall describe the programs within the Department designed to
recruit and retain a workforce on a short-term basis and on a long-term
basis.
``(h) Definitions.--As used in this section:
``(1) The term `Minority Serving Higher Education
Institutions' means a Hispanic-serving institution,
historically Black college or university, Alaska Native-serving
institution, tribal college or university, or insular area
school.
``(2) The term `Hispanic-serving institution' has the
meaning given the term in section 502(a) of the Higher
Education Act of 1965 (20 U.S.C. 1101a(a)).
``(3) The term `historically Black college or university'
has the meaning given the term `part B institution' in section
322 of the Higher Education Act of 1965 (20 U.S.C. 1061).
``(4) The term `tribal college or university' has the
meaning given the term `Tribal College or University' in
section 316(b)(3) of the Higher Education Act of 1965 (20
U.S.C. 1059c).
``(5) The term `institution of higher education' has the
meaning given such term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001).
``(6) The term `Alaska Native-serving institution' has the
meaning given the term in section 317 of the Higher Education
Act of 1965 (20 U.S.C. 1059d).
``(7) The term `insular area school' means an academic
institution or university in American Samoa, Guam, The Northern
Mariana Islands, Puerto Rico, and the Virgin Islands, or any
other territory or possession of the United States.
``(i) Funding.--To implement this section, the Secretary shall use
3 percent of the annual outlay authorized by section 23(d) of the Deep
Ocean Energy Resources Act of 2006.''.
(b) Funding for Energy Research.--
(1) Using 20 percent of the funds authorized by subsection
(d), the Secretary of Energy, through the energy supply
research and development programs of the Department of Energy,
and in consultation with the Office of Science of the
Department of Energy, shall carry out a program to award grants
to institutions of higher education on the basis of
competitive, merit-based review, for the purpose of conducting
research on advanced energy technologies with the potential to
transform the energy systems of the United States so as to--
(A) reduce dependence on foreign energy supplies;
(B) reduce or eliminate emissions of greenhouse
gases;
(C) reduce negative environmental effects
associated with energy production, storage, and use;
and
(D) enhance the competitiveness of United States
energy technology exports.
(2) Awards made under this subsection may include funding
for--
(A) energy efficiency;
(B) renewable energy, including solar, wind, and
biofuels; and
(C) nuclear, hydrogen, and any other energy
research that could accomplish the purpose set forth in
paragraph (1).
(3) The Secretary of Energy may require or authorize
grantees under this subsection to partner with industry, but
only to the extent that such a requirement does not prevent
long-range, potentially pathbreaking research from being funded
under this subsection.
(4) An institution of higher education seeking funding
under this subsection shall submit an application at such time,
in such manner, and containing such information as the
Secretary of Energy may require.
(5) In this subsection, the term ``institution of higher
education'' has the meaning given that term in section 101(a)
of the Higher Education Act of 1965.
(c) Funding for Energy Scholarships.--
(1) Using 5 percent of the funds authorized by subsection
(d), the Secretary of Energy, through the energy supply
research and development programs of the Department of Energy,
and in consultation with the Office of Science of the
Department of Energy, shall carry out a program to award grants
to institutions of higher education on the basis of
competitive, merit-based review, to grant graduate traineeships
to Ph.D. students who are citizens of the United States who
will carry out research on advanced energy technologies to
accomplish the purpose set forth in subsection (c)(1).
(2) Awards made under this subsection may include funding
for--
(A) energy efficiency;
(B) renewable energy, including solar, wind, and
biofuels; and
(C) nuclear, hydrogen, and any other energy
research that would accomplish the purpose set forth in
subsection (c)(1) that is not eligible for funding
under section 7 of the Energy and Mineral Schools
Reinvestment Act.
(3) An institution of higher education seeking funding
under this subsection shall submit an application at such time,
in such manner, and containing such information as the
Secretary of Energy may require.
(4) In this subsection, the term ``institution of higher
education'' has the meaning given that term in section 101(a)
of the Higher Education Act of 1965.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $150,000,000 for each of fiscal
years 2007 through 2017.

SEC. 22. ONSHORE AND OFFSHORE MINERAL LEASE FEES.

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

SEC. 23. OCS REGIONAL HEADQUARTERS.

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

SEC. 24. NATIONAL GEO FUND ACT OF 2006.

(a) Short Title.--This section may be cited as the ``National Geo
Fund Act of 2006''.
(b) Purposes.--The purpose of this section is to provide for the
management of geologic programs, geologic mapping, geophysical and
other seismic studies, seismic monitoring programs, and the
preservation and use of geologic and geophysical data, geothermal and
geopressure energy resource management, unconventional energy resources
management, and renewable energy management associated with ocean wave,
current, and thermal resources.
(c) State Defined.--In this section the term ``State'' means the
agency of a State designated by its Governor or State law to perform
the functions and activities described in subsection (b).
(d) Strategic Unconventional Resources.--
(1) Program.--The Secretary of the Interior shall establish
a program for production of fuels from strategic unconventional
resources, and production of oil and gas resources using CO2
enhanced recovery. The program shall focus initially on
activities and domestic resources most likely to result in
significant production in the near future, and shall include
work necessary to improve extraction techniques, including
surface and in situ operations. The program shall include
characterization and assessment of potential resources, a
sampling program, appropriate laboratory and other analyses and
testing, and assessment of methods for exploration and
development of these strategic unconventional resources.
(2) Pilot projects.--The program created in paragraph (1)
shall include, but not be limited to, pilot projects on (A) the
Maverick Basin heavy oil and tar sands formations of Texas,
including the San Miguel deposits, (B) the Greater Green River
Basin heavy oil, oil shale, tar sands, and coal deposits of
Colorado, Utah, and Wyoming, (C) the shale, tar sands, heavy
oil, and coal deposits in the Alabama-Mississippi-Tennessee
region, (D) the shale, tar sands, heavy oil, and coal deposits
in the Ohio River valley, and (E) strategic unconventional
resources in California. The Secretary shall identify and
report to Congress on feasible incentives to foster recovery of
unconventional fuels by private industry within the United
States. Such incentives may include, but are not limited to,
long-term contracts for the purchase of unconventional fuels
for defense purposes, Federal grants and loan guarantees for
necessary capital expenditures, and favorable terms for the
leasing of Government lands containing unconventional
resources.
(3) Definitions.--In this subsection:
(A) Strategic unconventional resources.--The term
``strategic unconventional resources'' means
hydrocarbon resources, including heavy oil, oil shale,
tar sands, and coal deposits, from which liquid fuels
may be produced.
(B) In situ extraction methods.--The term ``in situ
extraction methods'' means recovery techniques that are
applied to the resources while they are still in the
ground, and are in commercial use or advanced stages of
development. Such techniques include, but are not
limited to, steam flooding, steam-assisted gravity
drainage (including combination with electric power
generation where appropriate), cyclic steam
stimulation, air injection, and chemical treatment.
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection for each of
fiscal years 2007 through 2011 not less than $35,000,000. Each
pilot project shall be allocated not less than $4,000,000 per
year in each of fiscal years 2007 through 2011.
(e) Support of Geothermal and Geopressure Oil and Gas Energy
Production.--
(1) In general.--The Secretary shall carry out a grant
program in support of geothermal and geopressure oil and gas
energy production. The program shall include grants for a total
of not less than three assessments of the use of innovative
geothermal techniques such as organic rankine cycle systems at
marginal, unproductive, and productive oil and gas wells, and
not less than one assessment of the use of innovative
geopressure techniques. The Secretary shall, to the extent
practicable and in the public interest, make awards that--
(A) include not less than five oil or gas well
sites per project award;
(B) use a range of oil or gas well hot water source
temperatures from 150 degrees Fahrenheit to 300 degrees
Fahrenheit;
(C) use existing or new oil or gas wells;
(D) cover a range of sizes from 175 kilowatts to
one megawatt;
(E) are located at a range of sites including
tribal lands, Federal lease, State, or privately owned
sites;
(F) can be replicated at a wide range of sites;
(G) facilitate identification of optimum techniques
among competing alternatives;
(H) include business commercialization plans that
have the potential for production of equipment at high
volumes and operation and support at a large number of
sites; and
(I) satisfy other criteria that the Secretary
determines are necessary to carry out the program.
The Secretary shall give preference to assessments that address
multiple elements contained in subparagraphs (A) through (I).
(2) Grant awards.--
(A) In general.--Each grant award for assessment of
innovative geothermal or geopressure technology such as
organic rankine cycle systems at oil and gas wells made
by the Secretary under this section shall include--
(i) necessary and appropriate site
engineering study;
(ii) detailed economic assessment of site
specific conditions;
(iii) appropriate feasibility studies to
determine ability for replication;
(iv) design or adaptation of existing
technology for site specific circumstances or
conditions;
(v) installation of equipment, service, and
support; and
(vi) monitoring for a minimum of one year
after commissioning date.
(3) Competitive grant selection.--Not less than 180 days
after the date of the enactment of this Act, the Secretary
shall conduct a national solicitation for applications for
grants under the program. Grant recipients shall be selected on
a competitive basis based on criteria in subsection (b).
(4) Federal share.--The Federal share of costs of grants
under this subsection shall be provided from funds made
available to carry out this section. The Federal share of the
cost of a project carried out with such a grant shall not
exceed 50 percent of such cost.
(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection for each of
fiscal years 2007 through 2011 not less than $5,000,000. No
funds authorized under this section may be used for the
purposes of drilling new wells.
(6) Amendment.--Section 4 of the Geothermal Steam Act of
1970 (30 USC 1003) is amended by adding at the end the
following:
``(h) Geothermal Resources Co-Produced With the Minerals.--Any
person who holds a lease or who operates a cooperative or unit plan
under the Mineral Leasing Act, in the absence of an existing lease for
geothermal resources under this Act, shall upon notice to the Secretary
have the right to utilize any geothermal resources co-produced with the
minerals for which the lease was issued during the operation of that
lease or cooperative or unit plan, for the generating of electricity to
operate the lease. Any electricity that is produced in excess of that
which is required to operate the lease and that is sold for purposes
outside of the boundary of the lease shall be subject to the
requirements of section 5.''.
(f) Liquid Fuels Grant Program.--
(1) Program.--The Secretary of the Interior shall establish
a grant program for facilities for coal-to-liquids, petroleum
coke-to-liquids, oil shale, tar sands, heavy oil, and Alaska
natural gas-to-liquids and to assess the production of low-rank
coal water fuel (in this subsection referred to as ``LRCWF'').
(2) LRCWF.--The LRCWF grant project location shall use
lignite coal from fields near the Tombigbee River within 60
miles of a land-grant college and shall be allocated
$15,000,000 for expenditure during fiscal year 2007.
(3) Definitions.--In this subsection:
(A) Coal-to-liquids front-end engineering and
design.--The terms ``coal-to-liquids front-end
engineering and design'' and ``FEED'' mean those
expenditures necessary to engineer, design, and obtain
permits for a facility for a particular geographic
location which will utilize a process or technique to
produce liquid fuels from coal resources.
(B) Low-rank coal water fuel.--In this subsection
the term ``low-rank coal water fuel'' means a liquid
fuel produced from hydrothermal treatment of lignite
and sub-bituminous coals.
(4) Grant provisions.--All grants shall require a 50
percent non-Federal cost share. The first 4 FEED grant
recipients who receive full project construction financing
commitments, based on earliest calendar date, shall not be
required to repay any of their grants. The next 4 FEED grant
recipients who receive such commitments shall be required to
repay 25 percent of the grant. The next 4 FEED grant recipients
who receive such commitments shall be required to repay 50
percent of the grant, and the remaining FEED grant recipients
shall be required to repay 75 percent of the grant. The LRCWF
recipient shall not be required to repay the grant. Any
required repayment shall be paid as part of the closing process
for any construction financing relating to the grant. No
repayment shall require the payment of interest if repaid
within 5 years of the issuance of the grant. FEED grants shall
be limited to a maximum of $1,000,000 per 1,000 barrels per day
of liquid fuels production capacity, not to exceed $25 million
per year.
(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection--
(A) $65,000,000 for fiscal year 2007; and
(B) $37,500,000 for each of fiscal years 2008
through 2013.
(g) Renewable Energy From Ocean Wave, Current, and Thermal
Resources.--
(1) Program.--The Secretary of the Interior shall establish
a grant program for the production of renewable energy from
ocean waves, currents, and thermal resources.
(2) Grant provisions.--All grants under this subsection
shall require a 50 percent non-Federal cost share.
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection funds for each
of fiscal years 2007 through 2011 in the amount of not less
than $20,000,000 each year, and thereafter in such amounts as
the Secretary may find appropriate.
(h) Amendment to the Surface Mining Control and Reclamation Act of
1977.--Section 507 of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1267) is amended by adding at the end the following:
``(i) Any person who provides the regulatory authority with a map
under subsection (b)(13) or (b)(14) shall not be liable to any other
person in any way for the accuracy or completeness of any such map
which was not prepared and certified by or on behalf of such person.''.

SEC. 25. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR
FLORIDA.

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

SEC. 26. COASTAL IMPACT ASSISTANCE.

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

SEC. 27. OIL SHALE AND TAR SANDS AMENDMENTS.

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

SEC. 28. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAYMENTS UNDER SECURE
RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF
2000.

Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended by inserting after subsection (i), as added by section 7 of
this Act, the following new subsection:
``(j) Conditional Availability of Funds for Payments Under Secure
Rural Schools and Community Self-Determination Act of 2000.--
``(1) Availability of funds.--Subject to paragraph (2), but
notwithstanding any other provision of this section,
$50,000,000 of OCS Receipts shall be available to the Secretary
of the Treasury for each of fiscal years 2007 through 2012 to
make payments under sections 102 and 103 of the Secure Rural
Schools and Community Self-Determination Act of 2000 (Public
Law 106-393; 16 U.S.C. 500 note). The Secretary of the Treasury
shall use the funds made available by this subsection to make
such payments in lieu of using funds in the Treasury not
otherwise appropriated, as otherwise authorized by sections
102(b)(3) and 103(b)(2) of such Act.
``(2) Condition on availability.--OCS Receipts shall be
available under paragraph (1) for a fiscal year only if--
``(A) title I of the Secure Rural Schools and
Community Self-Determination Act of 2000 has been
reauthorized through at least that fiscal year; and
``(B) the authority to initiate projects under
titles II and III of such Act has been extended through
at least that fiscal year.''.

SEC. 29. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.

(a) Buy and Build American.--It is the intention of the Congress
that this Act, among other things, result in a healthy and growing
American industrial, manufacturing, transportation, and service sector
employing the vast talents of America's workforce to assist in the
development of affordable energy from the Outer Continental Shelf.
Moreover, the Congress intends to monitor the deployment of personnel
and material in the Outer Continental Shelf to encourage the
development of American technology and manufacturing to enable United
States workers to benefit from this Act by good jobs and careers, as
well as the establishment of important industrial facilities to support
expanded access to American resources.
(b) Safeguard for Extraordinary Ability.--Section 30(a) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the
matter preceding paragraph (1) by striking ``regulations which'' and
inserting ``regulations that shall be supplemental and complimentary
with and under no circumstances a substitution for the provisions of
the Constitution and laws of the United States extended to the subsoil
and seabed of the outer Continental Shelf pursuant to section 4(a)(1)
of this Act, except insofar as such laws would otherwise apply to
individuals who have extraordinary ability in the sciences, arts,
education, or business, which has been demonstrated by sustained
national or international acclaim, and that''.

SEC. 30. AVAILABILITY OF OCS RECEIPTS TO PROVIDE FUNDS FOR
TRANSPORTATION INFRASTRUCTURE OF THE NATION'S CAPITAL.

Section 9 of the Outer Continental Shelf Lands Act (43. U.S.C.
1338) is further amended by adding at the end the following new
subsection:
``(k) Availability of Funds for Improvements to the Transportation
Infrastructure of the Nation's Capital.--Notwithstanding any other
provision of this section, $150,000,000 of OCS Receipts shall be
available to the Secretary of the Treasury for each of fiscal years
2007 through 2016 to make payments, subject to appropriations, to the
Washington Metropolitan Area Transit Authority (as defined in the
National Capital Transportation Act of 1969) (sec. 9--1111.01 et seq.,
D.C. Official Code) to finance in part the capital and preventive
maintenance projects included in the Capital Improvement Program
approved by the Board of Directors of the Washington Metropolitan Area
Transit Authority.

Passed the House of Representatives June 29, 2006.

Attest:

KAREN L. HAAS,

Clerk.
Calendar No. 588

109th CONGRESS

2d Session

H. R. 4761

_______________________________________________________________________

AN ACT

To provide for exploration, development, and production activities for
mineral resources on the outer Continental Shelf, and for other
purposes.

_______________________________________________________________________

September 5, 2006

Read the second time and placed on the calendar