Sec. 132. Conduct of leasing program

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Section 1003 of the Alaska National Interest Lands Conservation Act of 1980 ( 16 U.S.C. 3143 ) is repealed. The table of contents in section 1 of such Act is amended by striking the item relating to section 1003. For purposes of the National Wildlife Refuge System Administration Act of 1966 ( 16 U.S.C. 668dd et seq. ), the oil and gas leasing program and activities authorized by this subtitle in the Coastal Plain are deemed to be compatible with the purposes for which the Arctic National Wildlife Refuge was established, and no further findings or decisions are required to implement this determination.

The Final Legislative Environmental Impact Statement (April 1987) on the Coastal Plain prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act of 1980 ( 16 U.S.C. 3142 ) and section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ) is deemed to satisfy the requirements under the National Environmental Policy Act of 1969 that apply with respect to prelease activities, including actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of a leasing program authorized by this subtitle before the conduct of the first lease sale.

Before conducting the first lease sale under this subtitle, the Secretary shall prepare an environmental impact statement under the National Environmental Policy Act of 1969 with respect to the actions authorized by this subtitle that are not referred to in paragraph (2). Notwithstanding any other law, the Secretary is not required to identify nonleasing alternative courses of action or to analyze the environmental effects of such courses of action. The Secretary shall only identify a preferred action for such leasing and a single leasing alternative, and analyze the environmental effects and potential mitigation measures for those two alternatives.

The identification of the preferred action and related analysis for the first lease sale under this subtitle shall be completed within 18 months after the date of enactment of this Act. The Secretary shall only consider public comments that specifically address the Secretary’s preferred action and that are filed within 20 days after publication of an environmental analysis. Notwithstanding any other law, compliance with this paragraph is deemed to satisfy all requirements for the analysis and consideration of the environmental effects of proposed leasing under this subtitle.

In preparing or reviewing an environmental assessment pursuant to the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) and any regulations promulgated thereto, an agency shall consider, in addition to any mitigation required by the agency, all applicable Federal, State, local, and other laws and regulations, guidelines, permit conditions, and any other requirements and best practices regarding a Priority Energy Project and any other actions considered in a cumulative effects analysis.

Pursuant to that, the agency shall make a finding of no significant impact or a mitigated finding of no significant impact, as applicable, unless, presuming administrative regularity, the agency can conclusively demonstrate that the mitigation required by the agency and the applicable Federal, State, local, and other laws and regulations, guidelines, permit conditions, and any other requirements and best practices regarding a Priority Energy Project and any other actions considered in a cumulative effects analysis will not prevent or otherwise mitigate a significant impact on the human environment.

Nothing in this subtitle shall be considered to limit State and local regulatory authority. The Secretary, after consultation with the State of Alaska, the city of Kaktovik, and the North Slope Borough, may designate up to a total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary determines that the Special Area is of such unique character and interest so as to require special management and regulatory protection. The Secretary shall designate as such a Special Area the Sadlerochit Spring area, comprising approximately 4,000 acres.

Each such Special Area shall be managed so as to protect and preserve the area’s unique and diverse character including its fish, wildlife, and subsistence resource values. The Secretary may exclude any Special Area from leasing. If the Secretary leases a Special Area, or any part thereof, for purposes of oil and gas exploration, development, production, and related activities, there shall be no surface occupancy of the lands comprising the Special Area. Notwithstanding the other provisions of this subsection, the Secretary may lease all or a portion of a Special Area under terms that permit the use of horizontal drilling technology from sites on leases located outside the Special Area.

The Secretary’s sole authority to close lands within the Coastal Plain to oil and gas leasing and to exploration, development, and production is that set forth in this subtitle. The Secretary shall prescribe such regulations as may be necessary to carry out this subtitle, including rules and regulations relating to protection of the fish and wildlife, their habitat, subsistence resources, and environment of the Coastal Plain, by no later than 12 months after the date of enactment of this Act.

Lands may be leased pursuant to this subtitle to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act ( 30 U.S.C. 181 et seq. ). The Secretary shall, by regulation, establish procedures for— receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subparagraph (C)) from, a lease sale; the holding of lease sales after such nomination process; and public notice of and comment on designation of areas to be included in, or excluded from, a lease sale.

Bidding for leases under this subtitle shall be by sealed competitive cash bonus bids. In the first lease sale under this subtitle, the Secretary shall offer for lease those tracts the Secretary considers to have the greatest potential for the discovery of hydrocarbons, taking into consideration nominations received pursuant to paragraph (2)(A), but in no case less than 200,000 acres. The Secretary shall— conduct the first lease sale under this subtitle within 18 months after the date of the enactment of this Act; evaluate the bids in such sale and issue leases resulting from such sale, within 90 days after the date of the completion of such sale; and conduct additional sales so long as sufficient interest in development exists to warrant, in the Secretary’s judgment, the conduct of such sales.

The Secretary may grant to the highest responsible qualified bidder in a lease sale conducted pursuant to subsection

(g)any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary. No lease issued under this subtitle may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary. Prior to any such approval the Secretary shall consult with, and give due consideration to the views of, the Attorney General. An oil or gas lease issued pursuant to this subtitle shall— provide for the payment of a royalty of 37½ percent in amount or value of the production removed or sold from the lease, as determined by the Secretary under the regulations applicable to other Federal oil and gas leases; require that the lessee of lands within the Coastal Plain shall be fully responsible and liable for the reclamation of lands within the Coastal Plain and any other Federal lands that are adversely affected in connection with exploration, development, production, or transportation activities conducted under the lease and within the Coastal Plain by the lessee or by any of the subcontractors or agents of the lessee; provide that the lessee may not delegate or convey, by contract or otherwise, the reclamation responsibility and liability to another person without the express written approval of the Secretary; provide that the standard of reclamation for lands required to be reclaimed under this subtitle shall be, as nearly as practicable, a condition capable of supporting the uses which the lands were capable of supporting prior to any exploration, development, or production activities, or upon application by the lessee, to a higher or better use as approved by the Secretary; contain terms and conditions relating to protection of fish and wildlife, their habitat, subsistence resources, and the environment as required pursuant to section 131(2); provide that the lessee, its agents, and its contractors use best efforts to provide a fair share, as determined by the level of obligation previously agreed to in the 1974 agreement implementing section 29 of the Federal Agreement and Grant of Right of Way for the Operation of the Trans Alaska Pipeline, of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State; and contain such other provisions as the Secretary determines necessary to ensure compliance with the provisions of this subtitle and the regulations issued under this subtitle. Not later than 10 business days after the date on which an agency receives an application for any permit, authorization, or other agency action with respect to a lease under this subtitle, the agency shall— notify the applicant that the application is complete; or notify the applicant that information is missing and specify any information that is required to be submitted for the application to be complete. Not later than 30 days after the applicant for such a permit, authorization, or other agency action has submitted a complete application, the agency shall— issue the permit; or defer the decision on the permit; and provide to the applicant a notice that specifies any steps that the applicant could take for the permit to be issued. If the agency provides notice under paragraph (2)(B), the applicant shall have a period of 2 years from the date of receipt of the notice in which to complete all requirements specified by the agency, including providing information needed for compliance with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ). If the applicant completes the requirements within the period specified in subparagraph (A), the agency shall issue a decision on the permit not later than 10 days after the date of completion of the requirements described in subparagraph (A). If the applicant does not complete the requirements within the period specified in subparagraph

(A)the agency shall deny the permit. In any application for a permit, authorization, or other agency action, the agency shall be prohibited from requiring the applicant to perform any analyses, studies, or other activities that are novel, unprecedented, or otherwise inconsistent with past requirements for permit applicants in the same or similar situations. In the event the agency fails to meet any deadline set forth in this section, the agency shall immediately grant the requested permit, authorization, or other approval. In preparing and promulgating regulations, lease terms, conditions, restrictions, prohibitions, and stipulations under this section, the Secretary shall consider the following: The stipulations and conditions that govern the National Petroleum Reserve-Alaska leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska Final Integrated Activity Plan/Environmental Impact Statement. The environmental protection standards that governed the initial Coastal Plain seismic exploration program under parts 37.31 to 37.33 of title 50, Code of Federal Regulations. The land use stipulations for exploratory drilling on the KIC–ASRC private lands that are set forth in appendix 2 of the August 9, 1983, agreement between Arctic Slope Regional Corporation and the United States. The Administrator of the Environmental Protection Agency shall not delegate any authority to the Environmental Appeals Board to consider, review, reject, remand, or otherwise invalidate any permit for activity under a lease under this title. The Administrator shall perform all duties currently assigned to the Environmental Appeals Board in the Secretary’s individual capacity. The Secretary shall, after providing for public notice and comment, prepare and update periodically a plan to govern, guide, and direct the siting and construction of facilities for the exploration, development, production, and transportation of Coastal Plain oil and gas resources. The plan shall have the following objectives: Avoiding unnecessary duplication of facilities and activities. Encouraging consolidation of common facilities and activities. Locating or confining facilities and activities to areas that will minimize impact on fish and wildlife, their habitat, and the environment. Utilizing existing facilities wherever practicable. Enhancing compatibility between wildlife values and development activities. The Secretary shall— manage public lands in the Coastal Plain subject to subsections

(a)and

(b)of section 811 of the Alaska National Interest Lands Conservation Act ( 16 U.S.C. 3121 ); and ensure that local residents shall have reasonable access to public lands in the Coastal Plain for traditional uses. A complaint seeking judicial review of any provision of this section or any action of the Secretary under this section shall be filed— within the 90-day period beginning on the date of the action being challenged; or in the case of a complaint based solely on grounds arising after such period, within 90 days after the complainant knew or reasonably should have known of the grounds for the complaint. Any complaint seeking judicial review of any provision of this subtitle or any action of the Secretary under this subtitle may be filed only in the United States Court of Appeals for the District of Columbia. Judicial review of a Secretarial decision to conduct a lease sale under this subtitle, including the environmental analysis thereof, shall be limited to whether the Secretary has complied with this subtitle and shall be based upon the administrative record of that decision. The Secretary’s identification of a preferred course of action to enable leasing to proceed and the Secretary’s analysis of environmental effects under this subtitle shall be presumed to be correct unless shown otherwise by clear and convincing evidence to the contrary. Actions of the Secretary with respect to which review could have been obtained under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.

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Sec. 132

Conduct of leasing program

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