I 

112TH CONGRESS 

1ST SESSION H. R. 3410 

To require the Secretary of the Interior to conduct certain offshore oil 

and gas lease sales, to provide fair and equitable revenue sharing for 

all coastal States, to formulate future offshore energy development plans 

in areas with the most potential, to generate revenue for American 

infrastructure, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 14, 2011 

Mr. STIVERS (for himself, Mr. LATOURETTE, Mr. TIBERI, Mr. FITZPATRICK, 

Mr. GERLACH, Mr. WOMACK, Mr. REED, Mr. JOHNSON of Ohio, and Mr. 

MEEHAN) introduced the following bill; which was referred to the Committee on Natural Resources 

A BILL 

To require the Secretary of the Interior to conduct certain 

offshore oil and gas lease sales, to provide fair and 

equitable revenue sharing for all coastal States, to formulate future offshore energy development plans in areas 

with the most potential, to generate revenue for American infrastructure, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Energy Security and 

5 Transportation Jobs Act’’. 


pwalker on DSK5TPTVN1PROD with BILLS
2 

•HR 3410 IH

1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—EXPANDING OFFSHORE ENERGY DEVELOPMENT 

Sec. 101. Outer Continental Shelf leasing program. 

Sec. 102. Domestic oil and natural gas production goal. 

TITLE II—CONDUCTING PROMPT OFFSHORE LEASE SALES 

Sec. 201. Requirement to conduct proposed oil and gas Lease Sale 216 in the 

Central Gulf of Mexico. 

Sec. 202. Requirement to conduct proposed oil and gas Lease Sale 220 on the 

Outer Continental Shelf offshore Virginia. 

Sec. 203. Requirement to conduct proposed oil and gas Lease Sale 222 in the 

Central Gulf of Mexico. 

Sec. 204. Additional leases. 

Sec. 205. Definitions. 

TITLE III—LEASING IN NEW OFFSHORE AREAS 

Sec. 301. Leasing in the Eastern Gulf of Mexico. 

Sec. 302. Leasing offshore of territories of the United States. 

TITLE IV—OUTER CONTINENTAL SHELF REVENUE SHARING 

Sec. 401. Disposition of Outer Continental Shelf revenues. 

3 TITLE I—EXPANDING OFFSHORE 

4 ENERGY DEVELOPMENT 

5 SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

6 Section 18(a) of the Outer Continental Shelf Lands 

7 Act (43 U.S.C. 1344(a)) is amended by adding at the end 

8 the following: 

9 ‘‘(5)(A) In each oil and gas leasing program 

10 under this section, the Secretary shall make avail11 able for leasing and conduct lease sales including— 

12 ‘‘(i) at least 50 percent of the available un13 leased acreage within each outer Continental 

14 Shelf planning area considered to have the largVerDate Mar 15 2010 01:14 Nov 15, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3410.IH H3410

pwalker on DSK5TPTVN1PROD with BILLS
3 

•HR 3410 IH

1 est undiscovered, technically recoverable oil and 

2 gas resources (on a total btu basis) based upon 

3 the most recent national geologic assessment of 

4 the outer Continental Shelf, with an emphasis 

5 on offering the most geologically prospective 

6 parts of the planning area; and 

7 ‘‘(ii) any State subdivision of an outer 

8 Continental Shelf planning area that the Gov9 ernor of the State that represents that subdivi10 sion requests be made available for leasing. 

11 ‘‘(B) In this paragraph the term ‘available un12 leased acreage’ means that portion of the outer Con13 tinental Shelf that is not under lease at the time of 

14 a proposed lease sale, and that has not otherwise 

15 been made unavailable for leasing by law. 

16 ‘‘(6)(A) In the 2012–2017 5-year oil and gas 

17 leasing program, the Secretary shall make available 

18 for leasing any outer Continental Shelf planning 

19 areas that— 

20 ‘‘(i) are estimated to contain more than 

21 2,500,000,000 barrels of oil; or 

22 ‘‘(ii) are estimated to contain more than 

23 7,500,000,000,000 cubic feet of natural gas. 

24 ‘‘(B) To determine the planning areas described 

25 in subparagraph (A), the Secretary shall use the 


pwalker on DSK5TPTVN1PROD with BILLS
4 

•HR 3410 IH

1 document entitled ‘Minerals Management Service 

2 Assessment of Undiscovered Technically Recoverable 

3 Oil and Gas Resources of the Nation’s Outer Conti4 nental Shelf, 2006’.’’. 

5 SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION 

6 GOAL. 

7 Section 18(b) of the Outer Continental Shelf Lands 

8 Act (43 U.S.C. 1344(b)) is amended to read as follows: 

9 ‘‘(b) DOMESTIC OIL AND NATURAL GAS PRODUC10 TION GOAL.—– 

11 ‘‘(1) IN GENERAL.—In developing a 5-year oil 

12 and gas leasing program, and subject to paragraph 

13 (2), the Secretary shall determine a domestic stra14 tegic production goal for the development of oil and 

15 natural gas as a result of that program. Such goal 

16 shall be— 

17 ‘‘(A) the best estimate of the possible in18 crease in domestic production of oil and natural 

19 gas from the outer Continental Shelf; 

20 ‘‘(B) focused on meeting domestic demand 

21 for oil and natural gas and reducing the de22 pendence of the United States on foreign en23 ergy; and 

24 ‘‘(C) focused on the production increases 

25 achieved by the leasing program at the end of 


pwalker on DSK5TPTVN1PROD with BILLS
5 

•HR 3410 IH

1 the 15-year period beginning on the effective 

2 date of the program. 

3 ‘‘(2) 2012–2017 PROGRAM GOAL.—For pur4 poses of the 2012–2017 5-year oil and gas leasing 

5 program, the production goal referred to in para6 graph (1) shall be an increase by 2027 of— 

7 ‘‘(A) no less than 3,000,000 barrels in the 

8 amount of oil produced per day; and 

9 ‘‘(B) no less than 10,000,000,000 cubic 

10 feet in the amount of natural gas produced per 

11 day. 

12 ‘‘(3) REPORTING.—The Secretary shall report 

13 annually, beginning at the end of the 5-year period 

14 for which the program applies, to the Committee on 

15 Natural Resources of the House of Representatives 

16 and the Committee on Energy and Natural Re17 sources of the Senate on the progress of the pro18 gram in meeting the production goal. The Secretary 

19 shall identify in the report projections for production 

20 and any problems with leasing, permitting, or pro21 duction that will prevent meeting the goal.’’. 


pwalker on DSK5TPTVN1PROD with BILLS
6 

•HR 3410 IH

1 TITLE II—CONDUCTING PROMPT 

2 OFFSHORE LEASE SALES 

3 SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

4 GAS LEASE SALE 216 IN THE CENTRAL GULF 

5 OF MEXICO. 

6 (a) IN GENERAL.—The Secretary of the Interior shall 

7 conduct offshore oil and gas Lease Sale 216 under section 

8 8 of the Outer Continental Shelf Lands Act (33 U.S.C. 

9 1337) as soon as practicable, but not later than 4 months 

10 after the date of enactment of this Act. 

11 (b) ENVIRONMENTAL REVIEW.—For the purposes of 

12 that lease sale, the Environmental Impact Statement for 

13 the 2007–2012 5 Year OUTER CONTINENTAL 

14 SHELF Plan and the Multi-Sale Environmental Impact 

15 Statement are deemed to satisfy the requirements of the 

16 National Environmental Policy Act of 1969 (42 U.S.C. 

17 4321 et seq.). 

18 SEC. 202. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

19 GAS LEASE SALE 220 ON THE OUTER CONTI20 NENTAL SHELF OFFSHORE VIRGINIA. 

21 (a) IN GENERAL.—Notwithstanding the inclusion of 

22 Lease Sale 220 in the fiscal years 2012 through fiscal year 

23 2017 5 Year Outer Continental Shelf Oil and Gas Leasing 

24 Program, the Secretary shall conduct offshore oil and gas 

25 Lease Sale 220 under section 8 of the Outer Continental 


pwalker on DSK5TPTVN1PROD with BILLS
7 

•HR 3410 IH

1 Shelf Lands Act (33 U.S.C. 1337) as soon as practicable, 

2 but not later than one year after the date of enactment 

3 of this Act. 

4 (b) PROHIBITION ON CONFLICTS WITH MILITARY

5 OPERATIONS.—No person may engage in any exploration, 

6 development, or production of oil or natural gas off the 

7 coast of Virginia that would conflict with any military op8 eration, as determined in accordance with the Memo9 randum of Agreement between the Department of Defense 

10 and the Department of the Interior on Mutual Concerns 

11 on the Outer Continental Shelf signed July 20, 1983, and 

12 any revision or replacement for that agreement that is 

13 agreed to by the Secretary of Defense and the Secretary 

14 of the Interior after that date but before the date of 

15 issuance of the lease under which such exploration, devel16 opment, or production is conducted. 

17 SEC. 203. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

18 GAS LEASE SALE 222 IN THE CENTRAL GULF 

19 OF MEXICO. 

20 (a) IN GENERAL.—The Secretary shall conduct off21 shore oil and gas Lease Sale 222 under section 8 of the 

22 Outer Continental Shelf Lands Act (33 U.S.C. 1337) as 

23 soon as practicable, but not later than September 1, 2012. 

24 (b) ENVIRONMENTAL REVIEW.—For the purposes of 

25 that lease sale, the Environmental Impact Statement for 


pwalker on DSK5TPTVN1PROD with BILLS
8 

•HR 3410 IH

1 the 2007–2012 5 Year OUTER CONTINENTAL 

2 SHELF Plan and the Multi-Sale Environmental Impact 

3 Statement are deemed to satisfy the requirements of the 

4 National Environmental Policy Act of 1969 (42 U.S.C. 

5 4321 et seq.). 

6 SEC. 204. ADDITIONAL LEASES. 

7 Section 18 of the Outer Continental Shelf Lands Act 

8 (43 U.S.C. 1344) is amended by adding at the end the 

9 following: 

10 ‘‘(i) ADDITIONAL LEASE SALES.—In addition to 

11 lease sales in accordance with a leasing program in effect 

12 under this section, the Secretary may hold lease sales for 

13 areas identified by the Secretary to have the greatest po14 tential for new oil and gas development as a result of local 

15 support, new seismic findings, or nomination by interested 

16 persons.’’. 

17 SEC. 205. DEFINITIONS. 

18 In this title: 

19 (1) The term ‘‘Environmental Impact State20 ment for the 2007–2012 5 Year OUTER CONTI21 NENTAL SHELF Plan’’ means the Final Environ22 mental Impact Statement for Outer Continental 

23 Shelf Oil and Gas Leasing Program: 2007–2012 

24 (April 2007) prepared by the Secretary. 


pwalker on DSK5TPTVN1PROD with BILLS
9 

•HR 3410 IH

1 (2) The term ‘‘Multi-Sale Environmental Im2 pact Statement’’ means the Environmental Impact 

3 Statement for Proposed Western Gulf of Mexico 

4 OUTER CONTINENTAL SHELF Oil and Gas 

5 Lease Sales 204, 207, 210, 215, and 218, and Pro6 posed Central Gulf of Mexico OUTER CONTI7 NENTAL SHELF Oil and Gas Lease Sales 205, 

8 206, 208, 213, 216, and 222 (September 2008) pre9 pared by the Secretary. 

10 (3) The term ‘‘Secretary’’ means the Secretary 

11 of the Interior. 

12 TITLE III—LEASING IN NEW 

13 OFFSHORE AREAS 

14 SEC. 301. LEASING IN THE EASTERN GULF OF MEXICO. 

15 Section 104 of division C of the Tax Relief and 

16 Health Care Act of 2006 (Public Law 109–432; 120 Stat. 

17 3003) is repealed. 

18 SEC. 302. LEASING OFFSHORE OF TERRITORIES OF THE 

19 UNITED STATES. 

20 Section 2(a) of the Outer Continental Shelf Lands 

21 Act (43 U.S.C. 1331) is amended, by inserting after ‘‘con22 trol’’ the following: ‘‘or lying within the United States’ ex23 clusive economic zone and the Continental Shelf adjacent 

24 to the Commonwealth of Puerto Rico, the Commonwealth 

25 of the Northern Mariana Islands, the Virgin Islands, 


pwalker on DSK5TPTVN1PROD with BILLS
10 

•HR 3410 IH

1 American Samoa, Guam, or the other territories of the 

2 United States’’. 

3 TITLE IV—OUTER CONTINENTAL 

4 SHELF REVENUE SHARING 

5 SEC. 401. DISPOSITION OF OUTER CONTINENTAL SHELF 

6 REVENUES. 

7 Section 9 of the Outer Continental Shelf Lands Act 

8 (43 U.S.C. 1338) is amended— 

9 (1) in the existing text— 

10 (A) in the first sentence, by striking ‘‘All 

11 rentals,’’ and inserting the following: 

12 ‘‘(c) DISPOSITION OF REVENUE UNDER OLD

13 LEASES.—All rentals,’’; and 

14 (B) in subsection (c) (as designated by the 

15 amendment made by subparagraph (A) of this 

16 paragraph), by striking ‘‘for the period from 

17 June 5, 1950, to date, and thereafter’’ and in18 serting ‘‘in the period beginning June 5, 1950, 

19 and ending on the date of enactment of the En20 ergy Security and Transportation Jobs Act’’; 

21 (2) by adding after subsection (c) (as so des22 ignated) the following: 

23 ‘‘(d) NEW LEASING REVENUES DEFINED.—In this 

24 section the term ‘new leasing revenues’ means amounts 

25 received by the United States as bonuses, rents, and royalVerDate Mar 15 2010 01:14 Nov 15, 2011 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3410.IH H3410

pwalker on DSK5TPTVN1PROD with BILLS
11 

•HR 3410 IH

1 ties under leases for oil and gas, wind, tidal, or other en2 ergy exploration, development, and production that are 

3 awarded under this Act after the date of enactment of the 

4 Energy Security and Transportation Jobs Act.’’; and 

5 (3) by inserting before subsection (c) (as so 

6 designated) the following: 

7 ‘‘(a) PAYMENT OF NEW LEASING REVENUES TO

8 COASTAL STATES, GENERALLY.— 

9 ‘‘(1) IN GENERAL.—Of the amount of new leas10 ing revenues received by the United States each fis11 cal year that is described in paragraph (2), 37.5 per12 cent shall be allocated and paid in accordance with 

13 subsection (b) to coastal States that are affected 

14 States with respect to the leases under which those 

15 revenues are received by the United States. 

16 ‘‘(2) PHASE-IN.—The amount of new leasing 

17 revenues referred to in paragraph (1) is the sum de18 termined by adding— 

19 ‘‘(A) 35 percent of new leasing revenues 

20 received by the United States in the fiscal year 

21 under— 

22 ‘‘(i) leases awarded under the first 

23 leasing program under section 18(a) that 

24 takes effect after the date of enactment of 


pwalker on DSK5TPTVN1PROD with BILLS
12 

•HR 3410 IH

1 the Energy Security and Transportation 

2 Jobs Act; and 

3 ‘‘(ii) other leases issued as a result of 

4 the enactment of that Act; 

5 ‘‘(B) 70 percent of new leasing revenues 

6 received by the United States in the fiscal year 

7 under leases awarded under the second such 

8 leasing program; and 

9 ‘‘(C) 100 percent of new leasing revenues 

10 received by the United States under leases 

11 awarded under the third such leasing program 

12 or any such leasing program taking effect 

13 thereafter. 

14 ‘‘(b) ALLOCATION OF PAYMENTS TO COASTAL

15 STATES.— 

16 ‘‘(1) IN GENERAL.—The amount of new leasing 

17 revenues received by the United States with respect 

18 to a leased tract that are required to be paid to 

19 coastal States in accordance with this subsection 

20 each fiscal year shall be allocated among and paid 

21 to such States that are within 200 miles of the 

22 leased tract, in amounts that are inversely propor23 tional to the respective distances between the point 

24 on the coastline of each such State that is closest to 


pwalker on DSK5TPTVN1PROD with BILLS
13 

•HR 3410 IH

1 the geographic center of the lease tract, as deter2 mined by the Secretary. 

3 ‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.— 

4 The amount allocated to a coastal State under para5 graph (1) each fiscal year with respect to a leased 

6 tract shall be— 

7 ‘‘(A) in the case of a coastal State that is 

8 the nearest State to the geographic center of 

9 the leased tract, not less than 25 percent of the 

10 total amounts allocated with respect to the 

11 leased tract; and 

12 ‘‘(B) in the case of any other coastal State, 

13 not less than 10 percent, and not more than 15 

14 percent, of the total amounts allocated with re15 spect to the leased tract. 

16 ‘‘(3) ADMINISTRATION.—Amounts allocated to 

17 a coastal State under this subsection— 

18 ‘‘(A) shall be available to the State without 

19 further appropriation; 

20 ‘‘(B) shall remain available until expended; 

21 and 

22 ‘‘(C) shall be in addition to any other 

23 amounts available to the State under this Act. 

24 ‘‘(4) USE OF FUNDS.— 


pwalker on DSK5TPTVN1PROD with BILLS
14 

•HR 3410 IH

1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), a coastal State may use 

3 funds allocated and paid to it under this sub4 section for any purpose as determined by State 

5 law. 

6 ‘‘(B) RESTRICTION ON USE FOR MATCH7 ING.—Funds allocated and paid to a coastal 

8 State under this subsection may not be used as 

9 matching funds for any other Federal pro10 gram.’’. 

Æ 


pwalker on DSK5TPTVN1PROD with BILLS