Reliable and Affordable Natural Gas Energy Reform Act of 2006 - Amends the Outer Continental Shelf (OCS) Lands Act to authorize the Secretary of the Interior to issue a lease for development and production of gas and associated condensate and other hydrocarbon liquids in a moratorium area beginning with the five-year outer Continental Shelf oil and gas leasing program for 2007 through 2012.
Revises projected state lines for the subsoil and seabed of the OCS, including artificial islands and fixed structures.
Establishes leasing moratoria, until June 30, 2012, for designated areas of the OCS.
Authorizes a state governor to request the Secretary to: (1) extend the withdrawal from leasing of any area within the state's Adjacent Zone within 125 miles of its coastline; (2) provide a current estimate of proven and potential natural gas resources that may result in state revenues in any moratorium area adjacent to, or lying seaward of, the state coastline; and (3) make available for leasing any portion of a moratorium area in the Adjacent Zone.
Requires the Secretary to notify a neighboring state for its concurrence with or objection to any proposed natural gas lease located within 20 miles of the nearest point on the coastline of such state.
Prescribes guidelines for state participation in revenue sharing from moratorium and nonmoratorium areas.
Amends the Energy Policy Act of 2005 to repeal the requirement to conduct comprehensive inventory of OCS natural gas resources.
Grants the lessee of a natural gas lease within specified areas of the California or Florida Adjacent Zones the option, without compensation, of exchanging the lease for a new natural gas lease having a primary term of five years.
Cites circumstances under which the Secretary shall repurchase and cancel any federal natural gas lease in the OCS.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2290 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2290
To provide for affordable natural gas by rebalancing domestic supply
and demand and to promote the production of natural gas from domestic
resources.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 15, 2006
Mr. Pryor (for himself, Mr. Warner, and Mr. Talent) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To provide for affordable natural gas by rebalancing domestic supply
and demand and to promote the production of natural gas from domestic
resources.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Reliable and
Affordable Natural Gas Energy Reform Act of 2006''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Natural gas leases.
Sec. 3. Determination of adjacent zones and planning areas.
Sec. 4. Leasing moratoria in the OCS.
Sec. 5. Option to petition for extension of withdrawal from leasing
within certain areas of the outer
Continental Shelf.
Sec. 6. State requests to examine energy areas.
Sec. 7. Availability of certain areas for leasing.
Sec. 8. Neighboring State concurrence.
Sec. 9. Revenue sharing from moratorium areas.
Sec. 10. Revenue sharing from nonmoratorium areas.
Sec. 11. Repeal of requirement to conduct comprehensive inventory of
OCS natural gas resources.
Sec. 12. Leases for areas located within 100 miles off California or
Florida.
Sec. 13. Repurchase of certain leases.
SEC. 2. NATURAL GAS LEASES.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended by adding at the end the following:
``(q) Natural Gas Leases.--
``(1) In general.--Beginning with the 5-year outer
Continental Shelf oil and gas leasing program for 2007 through
2012, the Secretary may issue a lease under this section that
authorizes development and production of gas and associated
condensate and other hydrocarbon liquids in a moratorium area
(as defined in section 18(j)(1)) in accordance with regulations
issued under paragraph (2).
``(2) Regulations.--Not later than October 1, 2006, the
Secretary shall issue regulations that, for purposes of this
section--
``(A) define `natural gas' in a manner that
includes--
``(i) hydrocarbons and other substances in
a gaseous state at atmospheric pressure and a
temperature of 60 degrees Fahrenheit;
``(ii) liquids that condense (gas liquids)
from natural gas in the process of treatment,
dehydration, decompression, or compression
prior to the point for measuring volume and
quality of the production established by the
Secretary, acting through the Minerals
Management Service;
``(iii) other associated hydrocarbon
liquids if the predominant component is natural
gas and gas liquids; and
``(iv) natural gas liquefied for
transportation;
``(B) provide that natural gas leases shall contain
the same rights and obligations as oil and gas leases;
``(C) provide that, in reviewing the adequacy of
bids for natural gas leases, the Secretary, acting
through the Minerals Management Service, shall exclude
the value of any crude oil estimated to be discovered
within the boundaries of the leasing area;
``(D) provide for cancellation of a natural gas
lease, with payment of the fair value of the lease
rights canceled, if the Secretary determines that
hydrocarbons other than natural gas and natural gas
liquids will be the predominant production from the
lease; and
``(E) provide that, at the request and with the
consent of the Governor of the State adjacent to the
lease area, as determined under section 18(j)(2)(B)(i),
and with the consent of the lessee, an existing natural
gas lease may be converted, without an increase in the
rental royalty rate and without further payment in the
nature of a lease bonus, to a lease under subsection
(b), in accordance with a process, to be established by
the Secretary, that requires--
``(i) consultation by the Secretary with
the Governor of the State and the lessee with
respect to the operating conditions of the
lease, taking into consideration environmental
resource conservation and recovery, economic
factors, and other factors, as the Secretary
determines to be relevant; and
``(ii) compliance with the National
Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).
``(3) Effect of other laws.--Any Federal law (including
regulations) that applies to an oil and gas lease on the outer
Continental Shelf shall apply to a natural gas lease issued
under this subsection.''.
SEC. 3. 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--
(1) by designating the first, second, and third sentences
as clause (i), (iii), and (iv), respectively;
(2) in clause (i) (as so designated), by striking ``, and
the President'' and all that follows through the end of the
sentence; and
(3) by inserting after clause (i) (as so designated) the
following:
``(ii) The lines extending seaward and defining the Adjacent Zone
of each State, and each Planning Area of the outer Continental Shelf,
shall be as indicated on the maps for each outer Continental Shelf
region entitled--
``(I) `Alaska OCS Region State Adjacent Zone and OCS
Planning Areas';
``(II) `Pacific OCS Region State Adjacent Zones and OCS
Planning Areas';
``(III) `Gulf of Mexico OCS Region State Adjacent Zones and
OCS Planning Areas'; and
``(IV) `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. 4. LEASING MORATORIA IN THE OCS.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) is amended by adding at the end the following:
``(i) Leasing Within Certain Areas of the Outer Continental
Shelf.--
``(1) Prohibition against leasing.--Except as otherwise
provided in this subsection and subsection (k), prior to June
30, 2012, the Secretary shall not offer for leasing for natural
gas--
``(A) any area 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 applicable map
described in subparagraph (B), under the `Memorandum on
Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition', from 34
Weekly Comp. Pres. Doc. 1111, dated June 12, 1998; or
``(B) any area not withdrawn under that Memorandum
that is included within--
``(i) 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
``(ii) 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.--
``(A) In general.--The withdrawal of any area from
disposition by leasing under the `Memorandum on
Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition', from 34
Weekly Comp. Pres. Doc. 1111, dated June 12, 1998,
shall have no force or effect with respect to any area
included within the Gulf of Mexico OCS Region Central
Planning Area as indicated on the map entitled `Gulf of
Mexico OCS Region State Adjacent Zones and OCS Planning
Areas', dated September 2005 and on file in the Office
of the Director, Minerals Management Service.
``(B) Additional areas.--The Secretary shall amend
the 5-year outer Continental Shelf oil and gas leasing
program for 2002 through 2007 to include--
``(i) the areas added to the Gulf of Mexico
OCS Region Central Planning Area by this
paragraph to the extent that the areas were
included within the original boundaries of
proposed Lease Sale 181; and
``(ii) 2 sales in such additional areas, 1
of which shall be held not later than January
2007 and 1 of which shall be held not later
than June 2007.
``(C) Environmental impact statement.--The final
environmental impact statement prepared for an area
covered by this paragraph for Lease Sale 181 shall be
considered sufficient for all purposes for each lease
sale in which the area is offered for lease during the
5-year outer Continental Shelf oil and gas leasing
program for 2002 through 2007 without need for
supplementation.
``(D) Partial tracts.--
``(i) Part within planning area.--Any tract
only partially added to the Gulf of Mexico OCS
Region Central Planning Area by this paragraph
shall be eligible for leasing of the part of
the tract that is included within the Gulf of
Mexico OCS Region Central Planning Area.
``(ii) Part outside planning area.--The
remainder of the tract that lies outside of the
Gulf of Mexico OCS Region Central Planning Area
may be developed and produced by the lessee of
the partial tract using extended reach or
similar drilling from a location on a leased
area.''.
SEC. 5. OPTION TO PETITION FOR EXTENSION OF WITHDRAWAL FROM LEASING
WITHIN CERTAIN AREAS OF THE OUTER CONTINENTAL SHELF.
(a) Option to Petition.--
(1) In general.--The Governor of a State may submit to the
Secretary a petition requesting that the Secretary extend for a
period of time described in paragraph (2) the withdrawal from
leasing for all or part of any area within the Adjacent Zone of
the State within 125 miles of the coastline of the State.
(2) Length of extension.--
(A) In general.--The period of time requested in a
petition submitted under paragraph (1) shall not exceed
5 years for each petition.
(B) Limitation.--The Secretary shall not grant a
petition submitted under paragraph (1) that extends the
remaining period of a withdrawal of an area from
leasing for a total of more than 10 years.
(3) Multiple petitions.--A State may petition multiple
times for a particular area, but not more than once per
calendar year for any particular area.
(4) Contents of petition.--A petition submitted under
paragraph (1) may--
(A) apply to natural gas leasing; and
(B) request some areas to be withdrawn from all
leasing and some areas only withdrawn from one type of
leasing.
(5) Alabama adjacent zone.--A petition for extending the
withdrawal from leasing of any part of the Alabama Adjacent
Zone 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'', dated September 2005 and on file in the Office of the
Director, Minerals Management Service, may be made by either
the Governor of Alabama or the Governor of Florida.
(b) Action by Secretary.--Not later than 90 days after receipt of a
petition submitted under subsection (a), the Secretary shall approve
the petition, unless the Secretary determines that extending the
withdrawal from leasing would likely have an adverse effect on the
availability of necessary energy resources, which would contribute to
significant economic hardship on a national or regional basis, or would
otherwise not be in the national interest.
(c) Failure to Act.--If the Secretary fails to approve or deny a
petition in accordance with subsection (b), the petition shall be
considered to be approved 90 days after the date on which the Secretary
received the petition.
SEC. 6. STATE REQUESTS TO EXAMINE ENERGY AREAS.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) (as amended by section 4) is amended by adding at the end the
following:
``(j) State Requests to Examine Energy Areas.--
``(1) Definitions.--In this subsection through subsection
(m):
``(A) Lease.--The term `lease' includes a natural
gas lease under section 8(q).
``(B) Moratorium area.--The term `moratorium area'
means--
``(i) any area withdrawn from disposition
by leasing by the `Memorandum on Withdrawal of
Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition',
from 34 Weekly Comp. Pres. Doc. 1111, dated
June 12, 1998; and
``(ii) any area of the outer Continental
Shelf as to which Congress has denied the use
of appropriated funds or other means for
preleasing, leasing, or related activities.
``(2) Resource estimates.--
``(A) Requests.--At any time, the Governor of an
affected State (acting on behalf of the State) may
request the Secretary to provide a current estimate of
proven and potential natural gas resources that may
result, and resulting State revenues, in any moratorium
area (or any part of the moratorium area the Governor
identifies) adjacent to, or lying seaward of the
coastline of, that State.
``(B) Response of secretary.--Not later than 45
days after the date on which the Governor of a State
requests an estimate under subparagraph (A), the
Secretary shall provide--
``(i) a current estimate of proven and
potential natural gas resources in any
moratorium areas off the shore of a State;
``(ii) an estimate of potential revenues
that could be shared under this Act if
resources were developed and produced; and
``(iii) an explanation of the planning
processes that could lead to the leasing,
exploration, development, and production of the
natural gas resources within the area
identified.''.
SEC. 7. AVAILABILITY OF CERTAIN AREAS FOR LEASING.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) (as amended by section 6) is amended by adding at the end the
following:
``(k) Availability of Certain Areas for Leasing.--
``(1) Petition.--
``(A) In general.--On consideration of the
information received from the Secretary, the Governor
(acting on behalf of the State of the Governor) may
submit to the Secretary a petition requesting that the
Secretary make available for leasing any portion of a
moratorium area in the Adjacent Zone of the State.
``(B) Contents.--In a petition under subparagraph
(A), a Governor may request that an area described in
subparagraph (A) be made available for leasing under
subsection (b) or (q), or both, of section 8.
``(2) Action by secretary.--Not later than 90 days after
the date of receipt of a petition under paragraph (1), the
Secretary shall approve the petition unless the Secretary
determines that leasing in the affected area presents a
significant likelihood of incidents associated with the
development of resources that would cause serious harm or
damage to the marine resources of the area or of an adjacent
State.
``(3) Failure to act.--If the Secretary fails to approve or
deny a petition in accordance with paragraph (2), the petition
shall be considered to be approved as of the date that is 90
days after the date of receipt of the petition.
``(4) Treatment.--Notwithstanding any other provision of
this section, not later than 180 days after the date on which a
petition is approved, or considered to be approved, under
paragraph (2) or (3), the Secretary shall--
``(A) treat the petition of the Governor under
paragraph (1) as a proposed revision to a leasing
program under this section; and
``(B) except as provided in paragraph (5), expedite
the revision of the 5-year outer Continental Shelf oil
and gas leasing program in effect as of that date to
include any lease sale for any area covered by the
petition.
``(5) Inclusion in subsequent plans.--
``(A) In general.--If there are less than 18 months
remaining in the 5-year outer Continental Shelf oil and
gas leasing program described in paragraph (4)(B), the
Secretary, without consultation with any State, shall
include the areas covered by the petition in lease
sales under the subsequent 5-year outer Continental
Shelf oil and gas leasing program.
``(B) Environmental assessment.--Before modifying a
5-Year outer Continental Shelf oil and gas leasing
program under subparagraph (A), the Secretary shall
complete an environmental assessment that describes any
anticipated environmental effect of leasing in the area
covered by the petition.
``(6) Spending limitations.--Any Federal spending
limitation with respect to preleasing, leasing, or a related
activity in an area made available for leasing under this
subsection shall terminate as of the date on which the petition
of the Governor relating to the area is approved, or considered
to be approved, under paragraph (2) or (3).
``(7) Application.--This subsection shall not apply to--
``(A) any area designated as a national marine
sanctuary or a national wildlife refuge;
``(B) any area not included in the outer
Continental Shelf;
``(C) the Great Lakes (as defined in section
118(a)(3) of the Federal Water Pollution Control Act
(33 U.S.C. 1268(a)(3));
``(D) the eastern coast of the State of Florida; or
``(E) Bristol Bay.
``(8) Great lakes.--The Great Lakes (as defined in section
118(a)(3) of the Federal Water Pollution Control Act (33 U.S.C.
1268(a)(3)))--
``(A) shall not be considered part of the outer
Continental Shelf under this Act; and
``(B) shall not be subject to production.''.
SEC. 8. NEIGHBORING STATE CONCURRENCE.
(a) Notice.--The Secretary of the Interior shall provide notice to
a neighboring State of any proposed lease of natural gas if the lease
would be located within 20 miles of the nearest point on the coastline
of the State.
(b) Objection.--Not later than 30 days after receiving the notice,
the Governor of the State may object to the issuance of the lease on
grounds that the lease presents a significant risk to environmental and
economic resources of the State.
(c) Secretary Review.--If the Secretary, after review of the
objection and consultation with the adjacent State, concurs that the
lease presents a significant risk described in subsection (b), and that
the risk cannot be reasonably mitigated--
(1) the Secretary shall not approve an exploration plan for
the lease; and
(2) the lease shall be eligible for repurchase in
accordance with section 13.
(d) Nonapplicability.--This section does not apply to a State
covered by section 12.
SEC. 9. REVENUE SHARING FROM MORATORIUM AREAS.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) (as amended by section 7) is amended by adding at the end the
following:
``(l) Revenue Sharing From Moratorium Areas.--
``(1) Bonus bids.--If the Governor of a State requests the
Secretary to allow natural gas leasing in a moratorium area and
the Secretary allows the leasing, the State shall, without
further appropriation or action, receive 50 percent of any
bonus bid paid for leasing rights in the area.
``(2) Post leasing revenues.--In addition to bonus bids
under paragraph (1), a State described in paragraph (1) shall
receive, from leasing of the area, 50 percent of--
``(A) any lease rental minimum royalty;
``(B) any royalty proceeds from a sale of royalties
taken in kind by the Secretary; and
``(C) any other revenues from a bidding system
under section 8.
``(3) Conservation royalties.--After making distributions
in accordance with paragraphs (1) and (2) and in accordance
with section 31, the Secretary shall, without further
appropriation or action, distribute a conservation royalty
equal to 12.5 percent of Federal royalty revenues derived from
an area leased under this section in an amount not to exceed
$1,250,000,000 from all areas leased under this section for any
year, into the following programs that distribute conservation
funds to States:
``(A) The Federal aid to wildlife restoration fund
established under section 3(a)(1) of the Pittman-
Robertson Wildlife Restoration Act (16 U.S.C.
669b(a)(1)).
``(B) The land and water conservation fund
established under section 2 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-5) to
provide financial assistance to States under section 6
of that Act (16 U.S.C. 460l-8).''.
SEC. 10. REVENUE SHARING FROM NONMORATORIUM AREAS.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) (as amended by section 9) is amended by adding at the end the
following:
``(m) Revenue Sharing From Nonmoratorium Area.--Revenues from
production that occurs beginning on the date that is 5 years after the
date of enactment of this subsection in an area that is not a
moratorium area shall be distributed in the same proportion and for the
same uses as provided in subsection (l).''.
SEC. 11. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF
OCS NATURAL GAS RESOURCES.
Section 357 of the Energy Policy Act of 2005 (42 U.S.C. 15912) is
repealed.
SEC. 12. LEASES FOR AREAS LOCATED WITHIN 100 MILES OFF CALIFORNIA OR
FLORIDA.
(a) In General.--Effective beginning on the date that is 180 days
after the date of enactment of this Act, the lessee of a natural gas
lease in existence on the date of enactment of this Act for an area
located completely within 100 miles of the coastline and within the
California or Florida Adjacent Zones shall have the option, without
compensation, of exchanging the lease for a new natural gas lease
having a primary term of 5 years.
(b) Tracts.--For the area subject to the new lease, the lessee may
select any unleased tract--
(1) at least part of which is located within the area
between 100 and 125 miles from the coastline; and
(2) that is located--
(A) completely beyond 100 miles from the coastline;
and
(B) within the same Adjacent Zone of the adjacent
State as the lease being exchanged.
(c) Administrative Process.--
(1) In general.--The Secretary of the Interior (referred to
in this section as the ``Secretary'') shall establish a
reasonable administrative process through which a lessee may
exercise the option of the lessee to exchange a natural gas
lease for a new natural gas lease in accordance with this
section.
(2) Relationship to other laws.--An exchange of leases
conducted in accordance with this section (including the
issuance of a new lease)--
(A) shall not be considered to be a major Federal
action for purposes of the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
(B) shall be considered in compliance with the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.).
(3) Withdrawal.--The Secretary shall issue a new lease in
exchange for the lease being exchanged notwithstanding that the
area that will be subject to the lease may be withdrawn from
leasing under the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.) or otherwise unavailable for leasing under any
other law.
(d) Operating Restrictions.--A new lease issued in exchange for an
existing lease under this section shall be subject to such national
defense operating restrictions on the outer Continental Shelf tract
covered by the new lease as apply on the date of issuance of the new
lease.
(e) Priority.--
(1) Bonus bid.--The Secretary shall give priority in the
lease exchange process under this section based on the amount
of the original bonus bid paid for the issuance of each lease
to be exchanged.
(2) Exchange of partial tracts for full tracts.--The
Secretary shall allow leases covering partial tracts to be
exchanged for leases covering full tracts under this section
conditioned on payment of additional bonus bids on a per-acre
basis, as determined based on the average per acre of the
original bonus bid per acre for the partial tract being
exchanged.
(f) Exploration Plans.--An exploration plan submitted to the
Secretary during the period beginning on the date of enactment of this
Act and ending June 30, 2012, for a natural gas lease for an area
wholly within 100 miles of the coastline within the California Adjacent
Zone or the Florida Adjacent Zone shall not be treated as received by
the Secretary until the earlier of--
(1) July 1, 2012; or
(2) the date of approval of a petition by the Adjacent
State for natural gas leasing covering the area within which is
located the area subject to the natural gas lease.
(g) 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.
(h) Conditions for Lease Exchange.--For a lease to be cancelled and
exchanged under this section--
(1) each lessee holding an interest in the lease must
consent to cancellation of the leasehold interest of the
lessee;
(2) each lessee must waive any rights to bring any
litigation against the United States related to the
transaction; and
(3) the plugging and abandonment requirements for any well
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.
(i) Area Partially Within 100 Miles of Florida.--A natural gas
lease in existence on the date of enactment of this Act for an area
located partially within 100 miles of the coastline within the Florida
Adjacent Zone may only be developed and produced under this section
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.
SEC. 13. REPURCHASE OF CERTAIN LEASES.
(a) In General.--The Secretary of the Interior (referred to in this
section as the ``Secretary'') shall repurchase and cancel any Federal
natural gas lease in the outer Continental Shelf, if the Secretary
finds that the lease qualifies for repurchase and cancellation under
the regulations authorized by this section.
(b) Regulations.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall publish a final
regulation prescribing 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, in a manner consistent with this
subsection.
(2) Finding.--The Secretary shall repurchase and cancel a
lease under this section on a written request by the lessee and
a finding by the Secretary that--
(A) a request by the lessee for a required permit
or other approval complied with applicable law (other
than the Coastal Zone Management Act of 1972 (16 U.S.C.
1451 et seq.)) and terms of the lease and the 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--
(i) within a time period established by law
(including regulations) for the requested
action, whether advisory or mandatory; or
(ii) if no such period is established,
within 180 days after receipt of the request;
or
(C) a Federal agency attached a condition of
approval, without agreement by the lessee, to a
required permit or other approval that--
(i) was not required by Federal law
(including regulations) in effect on the date
of lease issuance; or
(ii) was not specifically allowed under the
terms of the lease.
(3) Exhaustion of remedies.--A lessee shall not be required
to exhaust administrative remedies regarding a permit request,
administrative appeal, or other required request for approval
under this section.
(4) Deadline.--The Secretary shall make a final agency
decision on a request by a lessee under this section not later
than 180 days after receipt of the request.
(5) Compensation.--
(A) Amount.--The amount of compensation to a lessee
to repurchase and cancel a lease under this section
shall be equal to the amount that a lessee would
receive in a restitution case for a material breach of
contract.
(B) Form.--The compensation shall be in the form of
a check or electronic transfer from the Secretary of
the Treasury from funds deposited into miscellaneous
receipts under the authority of the Act that authorized
the issuance of the lease being repurchased.
(C) Deadline.--The failure of the Secretary to make
a final agency decision on a request by a lessee under
this section in accordance with paragraph (4) shall
result in a percent increase in the compensation due to
the lessee if the lease is ultimately repurchased.
(c) Other Rights.--This section does not affect any other right the
lessee may have in the absence of this section.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S1359-1360)
Read twice and referred to the Committee on Energy and Natural Resources.
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