The Energy Act of 2005

H.R.6
Energy Policy Act of 2005 (Enrolled as Agreed to or Passed by Both
House and Senate)

SEC. 369. OIL SHALE, TAR SANDS, AND OTHER
STRATEGIC UNCONVENTIONAL FUELS.
(a) Short Title- This section may be cited as the `Oil Shale, Tar Sands,
and Other Strategic Unconventional Fuels Act of 2005'.
(b) Declaration of Policy- Congress declares that it is the policy of the
United States that-(1) United States oil shale, tar sands, and other unconventional
fuels are strategically important domestic resources that should
be developed to reduce the growing dependence of the United
States on politically and economically unstable sources of
foreign oil imports;
(2) the development of oil shale, tar sands, and other strategic
unconventional fuels, for research and commercial development,
should be conducted in an environmentally sound manner, using
practices that minimize impacts; and
(3) development of those strategic unconventional fuels should
occur, with an emphasis on sustainability, to benefit the United
States while taking into account affected States and
communities.
(c) Leasing Program for Research and Development of Oil Shale and
Tar Sands- In accordance with section 21 of the Mineral Leasing Act
(30 U.S.C. 241) and any other applicable law, except as provided in
this section, not later than 180 days after the date of enactment of
this Act, from land otherwise available for leasing, the Secretary of the
Interior (referred to in this section as the `Secretary') shall make
available for leasing such land as the Secretary considers to be
necessary to conduct research and development activities with respect
to technologies for the recovery of liquid fuels from oil shale and tar
sands resources on public lands. Prospective public lands within each
of the States of Colorado, Utah, and Wyoming shall be made available
for such research and development leasing.
(d) Programmatic Environmental Impact Statement and Commercial
Leasing Program for Oil Shale and Tar Sands(1) PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT- Not
later than 18 months after the date of enactment of this Act, in
accordance with section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the
Secretary shall complete a programmatic environmental impact
statement for a commercial leasing program for oil shale and tar
sands resources on public lands, with an emphasis on the most

geologically prospective lands within each of the States of
Colorado, Utah, and Wyoming.
(2) FINAL REGULATION- Not later than 6 months after the
completion of the programmatic environmental impact
statement under this subsection, the Secretary shall publish a
final regulation establishing such program.
(e) Commencement of Commercial Leasing of Oil Shale and Tar
Sands- Not later than 180 days after publication of the final regulation
required by subsection (d), the Secretary shall consult with the
Governors of States with significant oil shale and tar sands resources
on public lands, representatives of local governments in such States,
interested Indian tribes, and other interested persons, to determine
the level of support and interest in the States in the development of
tar sands and oil shale resources. If the Secretary finds sufficient
support and interest exists in a State, the Secretary may conduct a
lease sale in that State under the commercial leasing program
regulations. Evidence of interest in a lease sale under this subsection
shall include, but not be limited to, appropriate areas nominated for
leasing by potential lessees and other interested parties.
(f) Diligent Development Requirements- The Secretary shall, by
regulation, designate work requirements and milestones to ensure the
diligent development of the lease.
(g) Initial Report by the Secretary of the Interior- Within 90 days after
the date of enactment of this Act, the Secretary of the Interior shall
report to the Committee on Resources of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate
on-(1) the interim actions necessary to-(A) develop the program, complete the programmatic
environmental impact statement, and promulgate the
final regulation as required by subsection (d); and
(B) conduct the first lease sales under the program as
required by subsection (e); and
(2) a schedule to complete such actions within the time limits
mandated by this section.
(h) Task Force(1) ESTABLISHMENT- The Secretary of Energy, in cooperation
with the Secretary of the Interior and the Secretary of Defense,
shall establish a task force to develop a program to coordinate
and accelerate the commercial development of strategic
unconventional fuels, including but not limited to oil shale and
tar sands resources within the United States, in an integrated
manner.
(2) COMPOSITION- The Task Force shall be composed of-(A) the Secretary of Energy (or the designee of the
Secretary);
(B) the Secretary of the Interior (or the designee of the
Secretary of the Interior);

(C) the Secretary of Defense (or the designee of the
Secretary of Defense);
(D) the Governors of affected States; and
(E) representatives of local governments in affected
areas.
(3) RECOMMENDATIONS- The Task Force shall make such
recommendations regarding promoting the development of the
strategic unconventional fuels resources within the United
States as it may deem appropriate.
(4) PARTNERSHIPS- The Task Force shall make
recommendations with respect to initiating a partnership with
the Province of Alberta, Canada, for purposes of sharing
information relating to the development and production of oil
from tar sands, and similar partnerships with other nations that
contain significant oil shale resources.
(5) REPORTS(A) INITIAL REPORT- Not later than 180 days after the
date of enactment of this Act, the Task Force shall submit
to the President and Congress a report that describes the
analysis and recommendations of the Task Force.
(B) SUBSEQUENT REPORTS- The Secretary shall provide
an annual report describing the progress in developing
the strategic unconventional fuels resources within the
United States for each of the 5 years following submission
of the report provided for in subparagraph (A).
(i) Office of Petroleum Reserves(1) IN GENERAL- The Office of Petroleum Reserves of the
Department of Energy shall-(A) coordinate the creation and implementation of a
commercial strategic fuel development program for the
United States;
(B) evaluate the strategic importance of unconventional
sources of strategic fuels to the security of the United
States;
(C) promote and coordinate Federal Government actions
that facilitate the development of strategic fuels in order
to effectively address the energy supply needs of the
United States;
(D) identify, assess, and recommend appropriate actions
of the Federal Government required to assist in the
development and manufacturing of strategic fuels; and
(E) coordinate and facilitate appropriate relationships
between private industry and the Federal Government to
promote sufficient and timely private investment to
commercialize strategic fuels for domestic and military
use.

(2) CONSULTATION AND COORDINATION- The Office of
Petroleum Reserves shall work closely with the Task Force and
coordinate its staff support.
(3) ANNUAL REPORTS- Not later than 180 days after the date of
enactment of this Act and annually thereafter, the Secretary
shall submit to Congress a report that describes the activities of
the Office of Petroleum Reserves carried out under this
subsection.
(j) Mineral Leasing Act Amendments(1) SECTION 17- Section 17(b)(2) of the Mineral Leasing Act
(30 U.S.C. 226(b)(2)), as amended by section 350, is further
amended-(A) in subparagraph (A) (as designated by the
amendment made by subsection (a)(1) of that section) by
designating the first, second, and third sentences as
clauses (i), (ii), and (iii), respectively;
(B) by moving clause (ii), as so designated, so as to begin
immediately after and below clause (i);
(C) by moving clause (iii), as so designated, so as to
begin immediately after and below clause (ii);
(D) in clause (i) of subparagraph (A) (as designated by
subparagraph (A) of this paragraph) by striking `five
thousand one hundred and twenty' and inserting `5,760';
and
(E) by adding at the end the following:
`(iv) No lease issued under this paragraph shall be included in
any chargeability limitation associated with oil and gas leases.'.
(2) SECTION 21- Section 21(a) of the Mineral Leasing Act (30
U.S.C. 241(a)) is amended-(A) by striking `(a) That the Secretary' and inserting the
following:
`(a)(1) The Secretary';
(B) by striking `; that no lease' and inserting a period,
followed by the following:
`(2) No lease';
(C) by striking `Leases may be for' and inserting the
following:
`(3) Leases may be for';
(D) by striking `For the privilege' and inserting the
following:
`(4) For the privilege';
(E) in paragraph (2) (as designated by subparagraph (B)
of this paragraph) by striking `five thousand one hundred
and twenty' and inserting `5,760';
(F) in paragraph (4) (as designated by subparagraph (D)
of this paragraph) by striking `rate of 50 cents per acre'
and inserting `rate of $2.00 per acre';

(G)(i) by striking `: Provided further, That not more than
one lease shall be granted under this section to any' and
inserting `: Provided further, That no'; and
(ii) by striking `except that with respect to leases for' and
inserting `shall acquire or hold more than 50,000 acres of
oil shale leases in any one State. For'; and
(H) by adding at the end the following:
`(5) No lease issued under this section shall be included in any
chargeability limitation associated with oil and gas leases.'.
(k) Interagency Coordination and Expeditious Review of Permitting
Process(1) DEPARTMENT OF THE INTERIOR AS LEAD AGENCY- Upon
written request of a prospective applicant for Federal
authorization to develop a proposed oil shale or tar sands
project, the Department of the Interior shall act as the lead
Federal agency for the purposes of coordinating all applicable
Federal authorizations and environmental reviews. To the
maximum extent practicable under applicable Federal law, the
Secretary shall coordinate this Federal authorization and review
process with any Indian tribes and State and local agencies
responsible for conducting any separate permitting and
environmental reviews.
(2) IMPLEMENTING REGULATIONS- Not later than 6 months
after the date of enactment of this Act, the Secretary shall issue
any regulations necessary to implement this subsection.
(l) Cost-shared Demonstration Technologies(1) IDENTIFICATION- The Secretary of Energy shall identify
technologies for the development of oil shale and tar sands that(A) are ready for demonstration at a commerciallyrepresentative scale; and
(B) have a high probability of leading to commercial
production.
(2) ASSISTANCE- For each technology identified under
paragraph (1), the Secretary of Energy may provide-(A) technical assistance;
(B) assistance in meeting environmental and regulatory
requirements; and
(C) cost-sharing assistance.
(m) National Oil Shale and Tar Sands Assessment(1) ASSESSMENT(A) IN GENERAL- The Secretary shall carry out a national
assessment of oil shale and tar sands resources for the
purposes of evaluating and mapping oil shale and tar
sands deposits, in the geographic areas described in
subparagraph (B). In conducting such an assessment, the
Secretary shall make use of the extensive geological

assessment work for oil shale and tar sands already
conducted by the United States Geological Survey.
(B) GEOGRAPHIC AREAS- The geographic areas referred
to in subparagraph (A), listed in the order in which the
Secretary shall assign priority, are-(i) the Green River Region of the States of
Colorado, Utah, and Wyoming;
(ii) the Devonian oil shales and other hydrocarbonbearing rocks having the nomenclature of `shale'
located east of the Mississippi River; and
(iii) any remaining area in the central and western
United States (including the State of Alaska) that
contains oil shale and tar sands, as determined by
the Secretary.
(2) USE OF STATE SURVEYS AND UNIVERSITIES- In carrying
out the assessment under paragraph (1), the Secretary may
request assistance from any State-administered geological
survey or university.
(n) Land Exchanges(1) IN GENERAL- To facilitate the recovery of oil shale and tar
sands, especially in areas where Federal, State, and private
lands are intermingled, the Secretary shall consider the use of
land exchanges where appropriate and feasible to consolidate
land ownership and mineral interests into manageable areas.
(2) IDENTIFICATION AND PRIORITY OF PUBLIC LANDS- The
Secretary shall identify public lands containing deposits of oil
shale or tar sands within the Green River, Piceance Creek,
Uintah, and Washakie geologic basins, and shall give priority to
implementing land exchanges within those basins. The
Secretary shall consider the geology of the respective basin in
determining the optimum size of the lands to be consolidated.
(3) COMPLIANCE WITH SECTION 206 OF FLPMA- A land
exchange undertaken in furtherance of this subsection shall be
implemented in accordance with section 206 of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1716).
(o) Royalty Rates for Leases- The Secretary shall establish royalties,
fees, rentals, bonus, or other payments for leases under this section
that shall-(1) encourage development of the oil shale and tar sands
resource; and
(2) ensure a fair return to the United States.
(p) Heavy Oil Technical and Economic Assessment- The Secretary of
Energy shall update the 1987 technical and economic assessment of
domestic heavy oil resources that was prepared by the Interstate Oil
and Gas Compact Commission. Such an update should include all of
North America and cover all unconventional oil, including heavy oil, tar
sands (oil sands), and oil shale.

(q) Procurement of Unconventional Fuels by the Department of
Defense(1) IN GENERAL- Chapter 141 of title 10, United States Code, is
amended by inserting after section 2398 the following:

`Sec. 2398a. Procurement of fuel derived from coal, oil shale,
and tar sands
`(a) Use of Fuel to Meet Department of Defense Needs- The Secretary
of Defense shall develop a strategy to use fuel produced, in whole or in
part, from coal, oil shale, and tar sands (referred to in this section as a
`covered fuel') that are extracted by either mining or in-situ methods
and refined or otherwise processed in the United States in order to
assist in meeting the fuel requirements of the Department of Defense
when the Secretary determines that it is in the national interest.
`(b) Authority to Procure- The Secretary of Defense may enter into 1
or more contracts or other agreements (that meet the requirements of
this section) to procure a covered fuel to meet 1 or more fuel
requirements of the Department of Defense.
`(c) Clean Fuel Requirements- A covered fuel may be procured under
subsection (b) only if the covered fuel meets such standards for clean
fuel produced from domestic sources as the Secretary of Defense shall
establish for purposes of this section in consultation with the
Department of Energy.
`(d) Multiyear Contract Authority- Subject to applicable provisions of
law, any contract or other agreement for the procurement of covered
fuel under subsection (b) may be for 1 or more years at the election of
the Secretary of Defense.
`(e) Fuel Source Analysis- In order to facilitate the procurement by
the Department of Defense of covered fuel under subsection (b), the
Secretary of Defense may carry out a comprehensive assessment of
current and potential locations in the United States for the supply of
covered fuel to the Department.'.
(2) CLERICAL AMENDMENT- The table of sections for chapter
141 of title 10, United States Code, is amended by inserting
after the item relating to section 2398 the following:
`2398a. Procurement of fuel derived from coal, oil shale, and
tar sands.'.
(r) State Water Rights- Nothing in this section preempts or affects any
State water law or interstate compact relating to water.
(s) Authorization of Appropriations- There are authorized to be
appropriated such sums as are necessary to carry out this section.