[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 494 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 494
To authorize the exploration, leasing, development, production, and
economically feasible and prudent transportation of oil and gas in and
from the Coastal Plain in Alaska.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 12, 2015
Ms. Murkowski (for herself and Mr. Sullivan) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To authorize the exploration, leasing, development, production, and
economically feasible and prudent transportation of oil and gas in and
from the Coastal Plain in Alaska.
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 ``Authorizing Alaska Production Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Coastal plain.--The term ``Coastal Plain'' means the
area described in appendix I to part 37 of title 50, Code of
Federal Regulations.
(2) Federal agreement.--The term ``Federal Agreement''
means the Federal Agreement and Grant Right-of-Way for the
Trans-Alaska Pipeline issued on January 23, 1974, in accordance
with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and
the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et
seq.).
(3) Final statement.--The term ``Final Statement'' means
the final legislative environmental impact statement on the
Coastal Plain, dated April 1987, and prepared pursuant to--
(A) section 1002 of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3142); and
(B) section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
(4) Map.--The term ``map'' means the map entitled ``Arctic
National Wildlife Refuge'', dated September 2005, and prepared
by the United States Geological Survey.
(5) Secretary.--The term ``Secretary'' means--
(A) the Secretary of the Interior; or
(B) the designee of the Secretary.
SEC. 3. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.
(a) In General.--
(1) Authorization.--Congress authorizes the exploration,
leasing, development, production, and economically feasible and
prudent transportation of oil and gas in and from the Coastal
Plain.
(2) Actions.--The Secretary shall take such actions as are
necessary--
(A) to establish and implement, in accordance with
this Act, a competitive oil and gas leasing program
that will result in an environmentally sound program
for the exploration, development, and production of the
oil and gas resources of the Coastal Plain; and
(B) to administer this Act through regulations,
lease terms, conditions, restrictions, prohibitions,
stipulations, and other provisions that--
(i) ensure the oil and gas exploration,
development, and production activities on the
Coastal Plain will result in no significant
adverse effect on fish and wildlife, fish and
wildlife habitat, subsistence resources, and
the environment; and
(ii) require the application of the best
commercially available technology for oil and
gas exploration, development, and production to
all exploration, development, and production
operations under this Act in a manner that
ensures the receipt of fair market value by the
public for the mineral resources to be leased.
(b) Repeal.--
(1) Repeal.--Section 1003 of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3143) is repealed.
(2) Conforming amendment.--The table of contents contained
in section 1 of that Act (16 U.S.C. 3101 note) is amended by
striking the item relating to section 1003.
(c) Compliance With Requirements Under Certain Other Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C. 668dd et
seq.)--
(A) the oil and gas preleasing and leasing program,
and activities authorized by this section in the
Coastal Plain, shall be considered to be compatible
with the purposes for which the Arctic National
Wildlife Refuge was established; and
(B) no further findings or decisions shall be
required to implement that program and those
activities.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The Final
Statement shall be considered to satisfy the requirements under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.) that apply with respect to preleasing, including
exploration programs and actions authorized to be taken by the
Secretary to develop and promulgate the regulations for the
establishment of a leasing program authorized by this Act
before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--
(A) In general.--Before conducting the first lease
sale under this Act, the Secretary shall prepare an
environmental impact statement in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) with respect to the actions authorized by
this Act that are not referred to in paragraph (2).
(B) Identification and analysis.--Notwithstanding
any other provision of law, in carrying out this
paragraph, the Secretary shall not--
(i) identify nonleasing alternative courses
of action; or
(ii) analyze the environmental effects of
those courses of action.
(C) Identification of preferred action.--Not later
than 1 year after the date of enactment of this Act,
the Secretary shall identify only a preferred action
and a single leasing alternative for the first lease
sale authorized under this Act.
(D) Effect of compliance.--Notwithstanding any
other provision of law, compliance with this paragraph
shall be considered to satisfy all requirements for the
analysis and consideration of the environmental effects
of proposed leasing under this Act.
(d) Relationship to State and Local Authority.--Nothing in this Act
expands or limits any State or local regulatory authority.
(e) Limitation on Closed Areas.--The Secretary shall not close land
within the Coastal Plain to oil and gas leasing or to exploration,
development, or production except in accordance with this Act.
(f) Regulations.--Not later than 1 year after the date of enactment
of this Act, in consultation with the State of Alaska, North Slope
Borough, Alaska, the City of Kaktovik, Alaska, and the Arctic Slope
Regional Corporation, the Secretary shall promulgate such regulations
as are necessary to carry out this Act.
SEC. 4. LEASE SALES.
(a) In General.--Land may be leased pursuant to this Act to any
person qualified to obtain a lease for deposits of oil and gas under
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(b) Procedures.--The Secretary shall, by regulation, establish
procedures for--
(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in a lease sale;
(2) the holding of lease sales after the nomination process
described in paragraph (1); and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this Act shall be by
sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--For the first lease sale under
this Act, 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 subsection (b)(1), but in no case less than 200,000 acres.
(e) Timing of Lease Sales.--The Secretary shall--
(1) not later than 18 months after the date of enactment of
this Act, conduct the first lease sale under this Act;
(2) not later than 1 year after the date on which the first
lease sale is conducted under paragraph (1), conduct a second
lease sale under this Act; and
(3) conduct additional sales at appropriate intervals if
sufficient interest in exploration or development exists to
warrant the conduct of the additional sales.
SEC. 5. GRANT OF LEASES BY THE SECRETARY.
(a) In General.--Upon payment by a lessee of such bonus as may be
accepted by the Secretary, the Secretary shall grant to the highest
responsible qualified bidder in a lease sale conducted pursuant to
section 4 a lease for any land on the Coastal Plain.
(b) Subsequent Transfers.--
(1) In general.--No lease issued under this Act may be
sold, exchanged, assigned, sublet, or otherwise transferred
except with the approval of the Secretary.
(2) Condition for approval.--Before granting any approval
described in paragraph (1), the Secretary shall consult with
and give due consideration to the opinion of the Attorney
General.
SEC. 6. LEASE TERMS AND CONDITIONS.
(a) In General.--An oil or gas lease issued pursuant to this Act
shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent of the amount or value of the production
removed or sold from the lease, as determined by the Secretary
in accordance with regulations applicable to other Federal oil
and gas leases;
(2) provide that the Secretary, after consultation with the
State of Alaska, North Slope Borough, Alaska, the City of
Kaktovik, Alaska, and the Arctic Slope Regional Corporation,
may close, on a seasonal basis, such portions of the Coastal
Plain to exploratory drilling activities as are necessary to
protect caribou calving areas and other species of fish and
wildlife;
(3) require that each lessee of land within the Coastal
Plain shall be fully responsible and liable for the reclamation
of land within the Coastal Plain and any other Federal land
that is adversely affected in connection with exploration,
development, production, or transportation activities within
the Coastal Plain conducted by the lessee or by any of the
subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability described in paragraph (3) to another person without
the express written approval of the Secretary;
(5) provide that the standard of reclamation for land
required to be reclaimed under this Act shall be, to the
maximum extent practicable--
(A) a condition capable of supporting the uses that
the land was capable of supporting prior to any
exploration, development, or production activities; or
(B) upon application by the lessee, to a higher or
better standard, as approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, fish and wildlife habitat, subsistence
resources, and the environment as required under section
3(a)(2); and
(7) provide that each lessee, and each agent and contractor
of a lessee, shall use their best efforts to provide a fair
share of employment and contracting for Alaska Natives and
Alaska Native Corporations from throughout the State of Alaska,
as determined by the level of obligation previously agreed to
in the Federal Agreement.
(b) Project Labor Agreements.--The Secretary, as a term and
condition of each lease under this Act, and in recognizing the
proprietary interest of the Federal Government in labor stability and
in the ability of construction labor and management to meet the
particular needs and conditions of projects to be developed under the
leases issued pursuant to this Act (including the special concerns of
the parties to those leases), shall require that each lessee, and each
agent and contractor of a lessee, under this Act negotiate to obtain a
project labor agreement for the employment of laborers and mechanics on
production, maintenance, and construction under the lease.
SEC. 7. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized
Coastal Plain Activities.--In accordance with section 3, the Secretary
shall administer this Act through regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, or other provisions that--
(1) ensure, to the maximum extent practicable, that oil and
gas exploration, development, and production activities on the
Coastal Plain will result in no significant adverse effect on
fish and wildlife, fish and wildlife habitat, subsistence
resources, and the environment;
(2) require the application of the best commercially
available technology for oil and gas exploration, development,
and production on all new exploration, development, and
production operations; and
(3) ensure that the maximum surface acreage covered in
connection with the leasing program by production and support
facilities, including airstrips and any areas covered by gravel
berms or piers for support of pipelines, does not exceed 2,000
acres on the Coastal Plain.
(b) Site-Specific Assessment and Mitigation.--The Secretary shall
require, with respect to any proposed drilling and related activities
on the Coastal Plain, that--
(1) a site-specific environmental analysis be made of the
probable effects, if any, that the drilling or related
activities will have on fish and wildlife, fish and wildlife
habitat, subsistence resources, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the maximum extent practicable) any
significant adverse effect identified under paragraph (1); and
(3) the development of the plan occur after consultation
with--
(A) each agency having jurisdiction over matters
mitigated by the plan;
(B) the State of Alaska;
(C) North Slope Borough, Alaska;
(D) the City of Kaktovik, Alaska; and
(E) the Arctic Slope Regional Corporation.
(c) Regulations To Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before implementing
the leasing program authorized by this Act, the Secretary shall prepare
and promulgate regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, or other measures designed to ensure, to
the maximum extent practicable, that the activities carried out on the
Coastal Plain under this Act are conducted in a manner consistent with
the purposes and environmental requirements of this Act.
(d) Compliance With Federal and State Environmental Laws and Other
Requirements.--The regulations, lease terms, conditions, restrictions,
prohibitions, and stipulations for the leasing program under this Act
shall require--
(1) compliance with all applicable provisions of Federal
and State environmental law (including regulations); and
(2) implementation of and compliance with--
(A) standards that are at least as effective as the
safety and environmental mitigation measures, as
described in items 1 through 29 on pages 167 through
169 of the Final Statement;
(B) reclamation and rehabilitation requirements in
accordance with this Act for the removal from the
Coastal Plain of all oil and gas development and
production facilities, structures, and equipment on
completion of oil and gas production operations, except
in a case in which the Secretary determines that those
facilities, structures, or equipment--
(i) would assist in the management of the
Arctic National Wildlife Refuge; and
(ii) are donated to the United States for
that purpose; and
(C) reasonable stipulations for protection of
cultural and archaeological resources.
(e) Access to Public Land.--The Secretary shall--
(1) manage public land in the Coastal Plain in accordance
with subsections (a) and (b) of section 811 of the Alaska
National Interest Lands Conservation Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable
access to public land in the Coastal Plain for traditional
uses.
SEC. 8. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.
For purposes of section 1102(4)(A) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or
easements across the Coastal Plain for the exploration, development,
production, or transportation of oil and gas shall be considered to be
established incident to the management of the Coastal Plain under this
section.
SEC. 9. CONVEYANCE.
Notwithstanding section 1302(h)(2) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on
title to land, and to clarify land ownership patterns in the Coastal
Plain, the Secretary shall--
(1) to the extent necessary to fulfill the entitlement of
the Kaktovik Inupiat Corporation under sections 12 and 14 of
the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613),
as determined by the Secretary, convey to that Corporation the
surface estate of the land described in paragraph (1) of Public
Land Order 6959, in accordance with the terms and conditions of
the agreement between the Secretary, the United States Fish and
Wildlife Service, the Bureau of Land Management, and the
Kaktovik Inupiat Corporation, dated January 22, 1993; and
(2) convey to the Arctic Slope Regional Corporation the
remaining subsurface estate to which that Corporation is
entitled under the agreement between that corporation and the
United States, dated August 9, 1983.
SEC. 10. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Establishment of Fund.--
(1) In general.--There is established in the Treasury a
fund to be known as the ``Coastal Plain Local Government Impact
Aid Assistance Fund'' (referred to in this section as the
``Fund'').
(2) Use.--Amounts in the Fund may be used only to provide
financial assistance in accordance with subsection (b).
(3) Deposits.--Subject to paragraph (4), of amounts of
revenues payable to the State of Alaska under section 35 of the
Mineral Leasing Act (30 U.S.C. 191) that are derived from
rents, bonuses, and royalties from Federal leases and lease
sales authorized under this Act--
(A) $28,000,000 shall be deposited in the Fund for
the first fiscal year for which amounts are received by
the United States from Federal leases and lease sales
authorized under this Act; and
(B) $7,000,000 shall be deposited in the Fund for
each fiscal year thereafter.
(4) Limitation on deposits.--The total amount in the Fund
may not exceed $28,000,000.
(5) Investment of balances.--The Secretary of the Treasury
shall invest amounts in the Fund in interest-bearing securities
of the United States.
(b) Financial Assistance.--
(1) In general.--The Secretary may use amounts available
from the Fund to provide timely financial assistance to North
Slope Borough, Alaska, the City of Kaktovik, Alaska, and any
other borough, municipal subdivision, village, or other
community in the State of Alaska that is directly impacted by
exploration for, or the production of, oil or gas on the
Coastal Plain under this Act, as determined by the Secretary.
(2) Use of assistance.--Financial assistance provided under
this subsection may be used only for--
(A) planning for mitigation of the potential
effects of oil and gas exploration and development on
environmental, social, cultural, recreational, and
subsistence values;
(B) implementing mitigation plans and maintaining
mitigation projects;
(C) developing, carrying out, and maintaining
projects and programs that provide new or expanded
public facilities and services to address needs and
problems associated with the effects described in
subparagraph (A), including firefighting, police,
water, waste treatment, medivac, and medical services;
and
(D) the establishment by North Slope Borough,
Alaska, of a coordination office in the City of
Kaktovik, Alaska--
(i) to coordinate with and advise
developers on local conditions of, impacts on,
and the history of the areas utilized for
development under this Act; and
(ii) to provide to the Committee on Natural
Resources of the House of Representatives and
the Committee on Energy and Natural Resources
of the Senate an annual report that describes
the status of coordination between developers
and the communities affected by development
under this Act.
(c) Application.--
(1) In general.--To receive assistance under subsection
(b), a community described in subsection (b)(1) shall submit to
the Secretary an application for assistance, in such form and
under such procedures as the Secretary may prescribe by
regulation.
(2) North slope borough communities.--A community located
in North Slope Borough, Alaska, may apply for assistance under
this section either directly with the Secretary or through the
North Slope Borough.
(3) Application assistance.--The Secretary shall work
closely with and assist North Slope Borough, Alaska, and other
communities eligible for assistance under this section in
developing and submitting applications under this subsection.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary from the Fund $7,000,000 for each fiscal
year to provide financial assistance under this section.
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