S.2525 - Arctic North Slope National Conservation Area Act96th Congress (1979-1980)
|Sponsor:||Sen. Jackson, Henry M. [D-WA] (Introduced 04/02/1980)|
|Committees:||Senate - Energy and Natural Resources|
|Latest Action:||04/02/1980 Referred to Senate Committee on Energy and Natural Resources.|
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Summary: S.2525 — 96th Congress (1979-1980)All Bill Information (Except Text)
Introduced in Senate (04/02/1980)
Arctic North Slope National Conservation Area Act - Title I: Short Title, Policy, and Purposes - States that the purposes of the Congress in enacting this Act are to: (1) establish the Arctic North Slope National Conservation Area in the State of Alaska; (2) encourage and promote the prompt and orderly leasing of lands for exploration, development, and production of the oil and gas resources of the Area; (3) provide protection, consistent with multiple use management of the Area, of other resources of the Area; (4) provide opportunities for the continued subsistence use of the Areas as an element of multiple use; and (5) create an independent, wholly federally owned corporation to expedite exploration, development, and production of the oil and gas resources located within the Area.
Title II: Establishment and Planning of the Area - Redesignates the area known as the National Petroleum Reserve in Alaska as the Arctic North Slope National Conservation Area to be administered by the Secretary of the Interior through the Bureau of Land Management. Withdraws and reserves subject to valid existing rights, all lands within the exterior boundaries of such Area from all forms of entry and disposition under the public land laws, including the mining and mineral leasing laws.
Directs the Secretary to prepare a long-range land-use plan for the management of the Area. Requires such plan to provide for: (1) a leasing program for the exploration for, and development, production, and transportation of, oil and gas from the Area; (2) the protection of surface resources of the Area; (3) the maximum protection of surface values within specified locations; (4) the protection of opportunities for continued subsistence use of the Area; and (5) any other resource values in the Area.
Allows such plan to be amended or revised as necessary. Requires, in any event, review initially no later than five years from the date of publication of the plan and subsequently every ten years thereafter.
Title III: Lease Exploration Permits and Leasing Authority - Authorizes the Secretary to conduct, or to allow to be conducted by contract or permit, geological and geophysical explorations including the drilling of exploratory wells for oil and gas in the Area.
Authorizes the Secretary to grant to the highest responsible qualified bidder or bidders by competitive bidding, under regulations promulgated in advance, any oil and gas lease within the Area. Requires the Secretary, within 90 days prior to notice of any lease sale, to establish rules to govern the calculation of net profits.
Directs that the lease tracts shall be established by the Secretary and may, to the extent practicable, encompass identified geological structures.
Specifies that each lease shall be issued for an initial period of up to 10 years and may be extended for so long thereafter as oil or gas is produced from the lease in paying quantities, or reworking operations on producing wells are conducted.
Requires the Secretary, at least 60 days prior to the first lease sale under this Act, to prescribe and make effective a rule which prohibits the bidding for any right to develop crude oil, natural gas, and natural gas liquids in the Area by any person if more than one major oil company, more than one affiliate of a major oil company, or a major oil company and any affiliate of a major oil company, has or have a significant ownership interest in such person.
Provides for a review by the Attorney General, in consultation with the Federal Trade Commission, of each notice of a proposed lease sale before the acceptance of bids and the issuance of leases based on such bids.
Requires the holder of any such oil or gas lease to submit, prior to commencing exploration and development activities, an exploration or development plan as appropriate to the Secretary for approval.
Directs the Secretary to require any lessee operating under an approved exploration or development plan to obtain a permit prior to drilling any well.
Provides for the suspension of any operation or activity, including production by the Secretary at the request of a lessee, to facilitate proper development of a lease or to allow for the construction or negotiation for use of transportation facilities, or if the Secretary determines that there is a threat of substantial waste or serious, irreparable, or immediate harm or danger to life, to health, to property, or to surface resources.
Allows the Secretary to cancel any such lease if it is determined that: (1) the lessee has acted with gross negligence, or in willful violation of such lease, including violation of diligence requirements; or (2) continued activity pursuant to such lease could cause substantial waste or serious harm or damage to life, to health, to property, or to surface resources; the threat of waste, harm or damage will not disappear or decrease to an acceptable extent within a reasonable period or time; or the advantages of cancellation outweigh the advantages of continuing such lease in force.
Requires any lessee or permittee conducting any exploration for, or development or production of, oil or gas pursuant to this Act to provide the Secretary access to all data and information obtained from such activity. Requires the Secretary to prescribe regulations to: (1) assure that the confidentiality of privileged or proprietary information received by the Secretary will be maintained; and (2) set forth the time periods and conditions which shall be applicable to the release of such information.
Requires the holder of a lease under this Act to maintain all places of employment within the lease area in compliance with regulations intended to protect persons, property and the environment, and to allow prompt access at the site of any operation to any Federal officers to monitor or examine such activities to determine whether there is a violation of the lease, threat to health or safety or adverse environmental effects from the operations.
Sets forth penalties for the violation of any provisions of this Act, any term of a lease, license, permit, or other grant of authority issued pursuant to this Act, or any regulation or order issued pursuant to this Act.
Title IV: Other Administrative Provisions - Requires the Secretary to administer the provisions of this Act and to prescribe such rules, regulations, and orders as may be deemed necessary to carry out such provisions.
Allows the Secretary to require a performance bond to enforce any of the requirements of this Act or regulations issued hereunder.
Allows previously existing cabins, shelters, or other facilities used for subsistence purposes to continue and be maintained or replaced subject to such restrictions as the Secretary deems necessary to accomplish the purposes of this Act.
Requires the United States to pay from its receipts under this Act any amount equal to two percent of the value of the production of oil and gas saved, removed, and sold from the Area, plus two percent of all other Federal lease revenues received pursuant to this Act, into the Alaska Native Fund until such time as the final sum of $500,000,000 has been paid into the fund whether from this Act or from any other authorized sources.
Declares that all other receipts from sales, rentals, bonuses and royalties on mineral leases issued pursuant to this Act shall be paid into the Treasury of the United States.
Specifies that nothing in this Act shall be construed as terminating any valid lease, permit, patent, right-of-way, or other land use, right or authorization existing in the Area on the date of enactment of this Act.
Directs the Secretary to continue operation of the South Barrow gas field and such other fields as may be necessary to supply gas to the Native Village of Barrow and other communities and installations.
Directs the Secretary to establish an Arctic North Slope National Conservation Area Advisory Council in accordance with the provisions of the Federal Land Policy and Management Act of 1976.
Title V: Establishment of Corporation - Establishes the National Petroleum Reserve Development Corporation. Declares that such Corporation shall enjoy perpetual succession unless and until dissolved by Act of Congress. Sets forth the general powers the Corporation shall have in carrying out the purposes of this Act.
Requires the Corporation to retain a firm or firms of nationally recognized public accountants who shall prepare and report an annual audit of the accounts of the Corporation. Authorizes the General Accounting Office to conduct such audits and to report to Congress, as such Office shall deem necessary or as the Congress may request, but not less than every three years.
Title VI: Authorization of Corporation Activity - Grants the Corporation the exclusive rights to explore for, develop, and produce all oil and natural gas found within the Area located near Umiat, Alaska for a period of 100 years, subject to the provisions of this Act. Authorizes the Corporation to acquire the exclusive right to explore for, develop, and produce all oil and natural gas found within the Area and other specified tracts of land for a period of 100 years.
Declares that the Corporation shall have such access on, and across, the land surface of such areas as it deems necessary for exploration, development, production or related activities.
Directs the Corporation to utilize all reasonable exploration techniques and to undertake the orderly development and production of discovered oil and natural gas in such a manner as to optimize the production, avoid waste, and otherwise prudently develop and produce oil and natural gas with the financial resources of the Corporation.
Authorizes the Corporation to use, or to permit others to use, any of the oil or natural gas produced by the Corporation for purpose of supplying the energy needs related to Corporation activities.
Authorizes the Corporation to sell any part, or all, of the natural gas or oil produced by the Corporation to any purchaser for the current market value of such oil or natural gas, subject to applicable Federal regulation.
Allows the Corporation to sell, or enter into exchange agreements, for oil or natural gas only with domestic producers and purchasers.
Authorizes the Corporation to purchase, or lease, such equipment as it may determine to be necessary for the exploration, development or production of oil and natural gas.
Directs the Corporation, to the extent feasible, to utilize private contractors to carry out the activities of the Corporation.
Allows the Corporation to contract with pipelines and other shippers for the transportation of oil and natural gas produced by the Corporation.
Allows rights-of-way through any Federal lands to be granted by the Secretary of the Interior or appropriate agency head for pipeline purposes.
Title VII: Capitalization and Finance - Authorizes the appropriation to the Corporation without fiscal year limitation of such sums as may be necessary for Corporation activities, but not to exceed $2,000,000 for fiscal year 1981.
Authorizes the Corporation to issue, solely to the United States, acting by and through the Secretary of the Treasury, non-interest-bearing notes and other obligations of the Corporation for a period of years determined by the Corporation but not to exceed twenty years, in the aggregate principal amount of $1,000,000,000.
Title VIII: Department Authorizations - Authorizes appropriations to the Secretary of the Treasury for the purpose of purchasing notes and obligations of the Corporation.
Directs the Secretary of Energy to purchase, or exchange for, any oil produced by the Corporation prior to purchasing any oil from any other party for the Strategic Petroleum Reserve established under the Energy Policy and Conservation Act of 1975.