IB 

Union Calendar No. 275 

112TH CONGRESS 

2D SESSION H. R. 3410 

[Report No. 112–395] 

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 

FEBRUARY 9, 2012 

Additional sponsors: Mr. KELLY, Mr. DENT, Mr. SCHILLING, Mrs. MILLER of 

Michigan, Mr. GIBSON, Mr. KLINE, Mr. BURTON of Indiana, Mr. HECK, 

Mr. DUNCAN of South Carolina, and Mrs. NOEM

FEBRUARY 9, 2012 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on November 14, 2011] 


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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. 


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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’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 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 oil and gas lease Sale 222 in the Central Gulf 

of Mexico. 

Sec. 204. Lease sale offshore California with no new offshore impact. 

Sec. 205. Requirement to conduct oil and gas Lease Sale 214 in the North Aleutian Basin offshore Alaska. 

Sec. 206. Additional leases. 

Sec. 207. Definitions. 

TITLE III—LEASING IN NEW OFFSHORE AREAS 

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

Sec. 302. Reforming oil and gas leasing in the Eastern Gulf of Mexico. 

Sec. 303. Areas added to Central Gulf of Mexico Planning Area. 

Sec. 304. Application of Outer Continental Shelf Lands Act with respect to territories of the United States. 

TITLE IV—OUTER CONTINENTAL SHELF REVENUE SHARING 

Sec. 401. Disposition of Outer Continental Shelf revenues to coastal States. 

TITLE V—MISCELLANEOUS PROVISIONS 

Sec. 501. Policies regarding buying, building, and working for America. 

Sec. 502. Regulations. 


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1 TITLE I—EXPANDING OFFSHORE 

2 ENERGY DEVELOPMENT 

3 SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

4 Section 18(a) of the Outer Continental Shelf Lands Act 

5 (43 U.S.C. 1344(a)) is amended by adding at the end the 

6 following: 

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

8 under this section, the Secretary shall make available 

9 for leasing and conduct lease sales including— 

10 ‘‘(i) at least 50 percent of the available un11 leased acreage within each outer Continental 

12 Shelf planning area considered to have the larg13 est undiscovered, technically recoverable oil and 

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

15 the most recent national geologic assessment of 

16 the outer Continental Shelf, with an emphasis on 

17 offering the most geologically prospective parts of 

18 the planning area; and 

19 ‘‘(ii) any State subdivision of an outer Con20 tinental Shelf planning area that the Governor 

21 of the State that represents that subdivision re22 quests be made available for leasing. 

23 ‘‘(B) In this paragraph the term ‘available un24 leased acreage’ means that portion of the outer Conti25 nental Shelf that is not under lease at the time of a 


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1 proposed lease sale, and that has not otherwise been 

2 made unavailable for leasing by law. 

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

4 leasing program, the Secretary shall make available 

5 for leasing any outer Continental Shelf planning 

6 areas that— 

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

8 2,500,000,000 barrels of oil; or 

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

10 7,500,000,000,000 cubic feet of natural gas. 

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

12 in subparagraph (A), the Secretary shall use the doc13 ument entitled ‘Minerals Management Service Assess14 ment of Undiscovered Technically Recoverable Oil 

15 and Gas Resources of the Nation’s Outer Continental 

16 Shelf, 2006’.’’. 

17 SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION 

18 GOAL. 

19 Section 18(b) of the Outer Continental Shelf Lands Act 

20 (43 U.S.C. 1344(b)) is amended to read as follows: 

21 ‘‘(b) DOMESTIC OIL AND NATURAL GAS PRODUCTION

22 GOAL.—– 

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

24 and gas leasing program, and subject to paragraph 

25 (2), the Secretary shall determine a domestic strategic 


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1 production goal for the development of oil and nat2 ural gas as a result of that program. Such goal shall 

3 be— 

4 ‘‘(A) the best estimate of the possible in5 crease in domestic production of oil and natural 

6 gas from the outer Continental Shelf; 

7 ‘‘(B) focused on meeting domestic demand 

8 for oil and natural gas and reducing the depend9 ence of the United States on foreign energy; and 

10 ‘‘(C) focused on the production increases 

11 achieved by the leasing program at the end of the 

12 15-year period beginning on the effective date of 

13 the program. 

14 ‘‘(2) 2012–2017 PROGRAM GOAL.—For purposes 

15 of the 2012–2017 5-year oil and gas leasing program, 

16 the production goal referred to in paragraph (1) shall 

17 be an increase by 2027, from the levels of oil and gas 

18 produced as of the date of enactment of this para19 graph, of— 

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

21 amount of oil produced per day; and 

22 ‘‘(B) no less than 10,000,000,000 cubic feet 

23 in the amount of natural gas produced per day. 

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

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


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1 for which the program applies, to the Committee on 

2 Natural Resources of the House of Representatives 

3 and the Committee on Energy and Natural Resources 

4 of the Senate on the progress of the program in meet5 ing the production goal. The Secretary shall identify 

6 in the report projections for production and any 

7 problems with leasing, permitting, or production that 

8 will prevent meeting the goal.’’. 

9 TITLE II—CONDUCTING PROMPT 

10 OFFSHORE LEASE SALES 

11 SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

12 GAS LEASE SALE 216 IN THE CENTRAL GULF 

13 OF MEXICO. 

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

15 conduct offshore oil and gas Lease Sale 216 under section 

16 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 

17 1337) as soon as practicable, but not later than 4 months 

18 after the date of enactment of this Act. 

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

20 that lease sale, the Environmental Impact Statement for the 

21 2007–2012 5 Year Outer Continental Shelf Plan and the 

22 Multi-Sale Environmental Impact Statement are deemed to 

23 satisfy the requirements of the National Environmental Pol24 icy Act of 1969 (42 U.S.C. 4321 et seq.). 


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1 SEC. 202. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

2 GAS LEASE SALE 220 ON THE OUTER CONTI3 NENTAL SHELF OFFSHORE VIRGINIA. 

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

5 Lease Sale 220 in the Proposed Outer Continental Shelf Oil 

6 & Gas Leasing Program 2012–2017, the Secretary shall 

7 conduct offshore oil and gas Lease Sale 220 under section 

8 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 

9 1337) as soon as practicable, but not later than one year 

10 after the date of enactment of this Act. 

11 (b) REQUIREMENT TO MAKE REPLACEMENT LEASE

12 BLOCKS AVAILABLE.— 

13 (1) IN GENERAL.—For each lease block in a pro14 posed lease sale under this section for which the Sec15 retary of Defense, in consultation with the Secretary 

16 of the Interior, under the Memorandum of Agreement 

17 referred to in subsection (c)(2), issues a statement 

18 proposing deferral from a lease offering due to de19 fense-related activities that are irreconcilable with 

20 mineral exploration and development, the Secretary 

21 of the Interior, in consultation with the Secretary of 

22 Defense, shall make available in the same lease sale 

23 two other lease blocks in the Virginia lease sale plan24 ning area that are acceptable for oil and gas explo25 ration and production in order to mitigate conflict. 


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1 (2) VIRGINIA LEASE SALE PLANNING AREA DE2 FINED.—In this subsection the term ‘‘Virginia lease 

3 sale planning area’’ means the area of the outer Con4 tinental Shelf (as that term is defined in the Outer 

5 Continental Shelf Lands Act (33 U.S.C. 1331 et seq.)) 

6 that is bounded by— 

7 (A) a northern boundary consisting of a 

8 straight line extending from the northernmost 

9 point of Virginia’s seaward boundary to the 

10 point on the seaward boundary of the United 

11 States exclusive economic zone located at 37 de12 grees 17 minutes 1 second North latitude, 71 de13 grees 5 minutes 16 seconds West longitude; and 

14 (B) a southern boundary consisting of a 

15 straight line extending from the southernmost 

16 point of Virginia’s seaward boundary to the 

17 point on the seaward boundary of the United 

18 States exclusive economic zone located at 36 de19 grees 31 minutes 58 seconds North latitude, 71 

20 degrees 30 minutes 1 second West longitude. 

21 (c) BALANCING MILITARY AND ENERGY PRODUCTION

22 GOALS.— 

23 (1) JOINT GOALS.—In recognition that the Outer 

24 Continental Shelf oil and gas leasing program and 

25 the domestic energy resources produced therefrom are 


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1 integral to national security, the Secretary of the In2 terior and the Secretary of Defense shall work jointly 

3 in implementing this section in order to ensure 

4 achievement of the following common goals: 

5 (A) Preserving the ability of the Armed 

6 Forces of the United States to maintain an opti7 mum state of readiness through their continued 

8 use of the Outer Continental Shelf. 

9 (B) Allowing effective exploration, develop10 ment, and production of our Nation’s oil, gas, 

11 and renewable energy resources. 

12 (2) PROHIBITION ON CONFLICTS WITH MILITARY

13 OPERATIONS.—No person may engage in any explo14 ration, development, or production of oil or natural 

15 gas off the coast of Virginia that would conflict with 

16 any military operation, as determined in accordance 

17 with the Memorandum of Agreement between the De18 partment of Defense and the Department of the Inte19 rior on Mutual Concerns on the Outer Continental 

20 Shelf signed July 20, 1983, and any revision or re21 placement for that agreement that is agreed to by the 

22 Secretary of Defense and the Secretary of the Interior 

23 after that date but before the date of issuance of the 

24 lease under which such exploration, development, or 

25 production is conducted. 


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1 SEC. 203. REQUIREMENT TO CONDUCT OIL AND GAS LEASE 

2 SALE 222 IN THE CENTRAL GULF OF MEXICO. 

3 (a) IN GENERAL.—The Secretary shall conduct off4 shore oil and gas Lease Sale 222 under section 8 of the 

5 Outer Continental Shelf Lands Act (43 U.S.C. 1337) by as 

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

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

8 that lease sale, the Environmental Impact Statement for the 

9 2007–2012 5 Year Outer Continental Shelf Plan and the 

10 Multi-Sale Environmental Impact Statement are deemed to 

11 satisfy the requirements of the National Environmental Pol12 icy Act of 1969 (42 U.S.C. 4321 et seq.). 

13 SEC. 204. LEASE SALE OFFSHORE CALIFORNIA WITH NO 

14 NEW OFFSHORE IMPACT. 

15 (a) SOUTHERN CALIFORNIA LEASE SALE.—The Sec16 retary shall offer for sale leases of tracts in the Southern 

17 California Planning Area in the Santa Maria and Santa 

18 Barbara/Ventura Basins in accordance with section 8 of the 

19 Outer Continental Shelf Lands Act (43 U.S.C. 1337) as 

20 soon as practicable, but not later than July 1, 2014. 

21 (b) USE OF EXISTING STRUCTURES OR ONSHORE22 BASED DRILLING.—Leases offered for sale under this section 

23 shall include such terms and conditions as are necessary 

24 to require that development and production may occur only 

25 from existing offshore infrastructure or from onshore-based 

26 drilling. 


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1 (c) RELATIONSHIP TO LEASING PROGRAM.—Areas 

2 shall be offered for lease under this section notwithstanding 

3 the omission of the Southern California Planning Area 

4 from any outer Continental Shelf leasing program under 

5 section 18 of the Outer Continental Shelf Lands Act (43 

6 U.S.C. 1344). 

7 (d) RELATIONSHIP TO STATE COASTAL ZONE MAN8 AGEMENT PROGRAM.—Section 307(c) of the Coastal Zone 

9 Management Act of 1972 (16 U.S.C. 1456(c)) shall not 

10 apply to lease sales under this section and activities con11 ducted under leases issued in such sales, including explo12 ration, development, and production. 

13 (e) ENVIRONMENTAL IMPACT STATEMENT REQUIRE14 MENT.— 

15 (1) IN GENERAL.—Before conducting the first 

16 lease sale under this section, the Secretary shall pre17 pare an environmental impact statement for the lease 

18 sales required under this section, under section 102 of 

19 the National Environmental Policy Act of 1969 (42 

20 U.S.C. 4332). 

21 (2) ACTIONS TO BE CONSIDERED.— 

22 (A) IN GENERAL.—Notwithstanding section 

23 102 of the National Environmental Policy Act of 

24 1969 (42 U.S.C. 4332), in such statement— 


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1 (i) the Secretary is not required to 

2 identify nonleasing alternative courses of 

3 action or to analyze the environmental ef4 fects of such alternative courses of action; 

5 and 

6 (ii) the Secretary shall only— 

7 (I) identify a preferred action for 

8 leasing and not more than one alter9 native leasing proposal; and 

10 (II) analyze the environmental ef11 fects and potential mitigation meas12 ures for such preferred action and such 

13 alternative leasing proposal. 

14 (B) DEADLINE.—The identification of the 

15 preferred action and related analysis for the first 

16 lease sale under this Act shall be completed with17 in 18 months after the date of enactment of this 

18 Act. 

19 (3) CONSIDERATION OF PUBLIC COMMENTS.—In 

20 preparing such statement, the Secretary shall only 

21 consider public comments that specifically address the 

22 Secretary’s preferred action and that are filed within 

23 20 days after publication of an environmental anal24 ysis. 


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1 (4) COMPLIANCE.—Compliance with this sub2 section is deemed to satisfy all requirements for the 

3 analysis and consideration of the environmental ef4 fects of proposed leasing under this section. 

5 SEC. 205. REQUIREMENT TO CONDUCT OIL AND GAS LEASE 

6 SALE 214 IN THE NORTH ALEUTIAN BASIN 

7 OFFSHORE ALASKA. 

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

9 conduct the lease sale formerly known as Lease Sale 214, 

10 for the tracts located in the North Aleutian Basin Outer 

11 Continental Shelf Planning Area, not later than 1 year 

12 after the date of enactment of this Act. 

13 (b) RELATIONSHIP TO LEASING PROGRAM.—Areas 

14 shall be offered for lease under this section notwithstanding 

15 inclusion of areas referred to in subsection (a) in the Pro16 posed Outer Continental Shelf Oil & Gas Leasing Program 

17 2012–2017. 

18 SEC. 206. ADDITIONAL LEASES. 

19 Section 18 of the Outer Continental Shelf Lands Act 

20 (43 U.S.C. 1344) is amended by adding at the end the fol21 lowing: 

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

23 sales in accordance with a leasing program in effect under 

24 this section, the Secretary may hold lease sales for areas 

25 identified by the Secretary to have the greatest potential 


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1 for new oil and gas development as a result of local support, 

2 new seismic findings, or nomination by interested per3 sons.’’. 

4 SEC. 207. DEFINITIONS. 

5 In this title: 

6 (1) The term ‘‘Environmental Impact Statement 

7 for the 2007–2012 5 Year Outer Continental Shelf 

8 Plan’’ means the Final Environmental Impact State9 ment for Outer Continental Shelf Oil and Gas Leas10 ing Program: 2007–2012 (April 2007) prepared by 

11 the Secretary. 

12 (2) The term ‘‘Multi-Sale Environmental Impact 

13 Statement’’ means the Environmental Impact State14 ment for Proposed Western Gulf of Mexico Outer Con15 tinental Shelf Oil and Gas Lease Sales 204, 207, 210, 

16 215, and 218, and Proposed Central Gulf of Mexico 

17 Outer Continental Shelf Oil and Gas Lease Sales 205, 

18 206, 208, 213, 216, and 222 (September 2008) pre19 pared by the Secretary. 

20 (3) The term ‘‘Secretary’’ means the Secretary of 

21 the Interior. 


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1 TITLE III—LEASING IN NEW 

2 OFFSHORE AREAS 

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

4 Section 104 of division C of the Tax Relief and Health 

5 Care Act of 2006 (Public Law 109–432; 120 Stat. 3003) 

6 is repealed. 

7 SEC. 302. REFORMING OIL AND GAS LEASING IN THE EAST8 ERN GULF OF MEXICO. 

9 (a) REFORMING ADMINISTRATIVE BOUNDARIES.—Ef10 fective July 1, 2012, for purposes of administering the 

11 Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 

12 the boundary between the Central Gulf of Mexico Outer 

13 Continental Shelf Planning Area and the Eastern Gulf of 

14 Mexico Outer Continental Shelf Planning Area shall be 86 

15 degrees, 41 minutes west longitude. 

16 (b) EXTENDING THE MORATORIUM.—Effective during 

17 the period beginning on the date of enactment of this Act 

18 and ending June 30, 2025, the Secretary of the Interior 

19 shall not offer for leasing, preleasing, or any related activity 

20 any area in the Eastern Gulf of Mexico Outer Continental 

21 Shelf Planning Area except as required under subsection 

22 (c). 

23 (c) LIMITED NEW LEASING IN THE EASTERN GULF OF

24 MEXICO.— 


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1 (1) IN GENERAL.—Notwithstanding the Proposed 

2 Outer Continental Shelf Oil & Gas Leasing Program 

3 2012–2017, the Secretary shall conduct planning and 

4 leasing for one lease sale in the Eastern Gulf of Mex5 ico Outer Continental Shelf Planning Area in each of 

6 2013, 2014, and 2015. Each lease sale shall only con7 sist of 50 contiguous Outer Continental Shelf lease 

8 blocks in those areas the Secretary considers to have 

9 the greatest potential for oil and gas after issuing a 

10 request for, receiving, and considering public com11 ment. In reviewing potential areas for such leasing, 

12 the Secretary shall focus on those areas for which 

13 there are known quantities of hydrocarbons that can 

14 be conventionally produced using existing or reason15 ably foreseeable technology, and for which oil and gas 

16 exploration, development, production, and marketing 

17 could be carried out in an expeditious manner. 

18 (2) LEASE CONDITIONS.—In addition to such re19 quirements as otherwise apply, each lease sale under 

20 this subsection shall be subject to the following: 

21 (A) The Secretary may include limits on 

22 permanent surface occupancy on any lease block 

23 if surface occupancy is incompatible with mili24 tary operations. 


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1 (B) The Secretary may include limits on 

2 drilling schedules and surface occupancy to ac3 commodate defense activities on a short-term or 

4 seasonal basis. Such limits shall be treated as 

5 administrative suspensions of a lease term. 

6 (C) The Secretary may limit permanent 

7 surface infrastructure on any Outer Continental 

8 Shelf lease block that is closer than 12 nautical 

9 miles to the coast of any State, unless that infra10 structure is approved by the State. 

11 (d) REQUIREMENT TO MAKE REPLACEMENT LEASE

12 BLOCKS AVAILABLE.—For each lease block in a proposed 

13 lease sale under this section for which the Secretary of De14 fense, in consultation with the Secretary of the Interior, 

15 under the Memorandum of Agreement referred to in sub16 section (e)(2) issues a statement proposing deferral from a 

17 lease offering due to defense-related activities that are ir18 reconcilable with mineral exploration and development, the 

19 Secretary of the Interior, in consultation with the Secretary 

20 of Defense, shall make available in the same lease sale two 

21 other lease blocks in the same Outer Continental Shelf plan22 ning area that are acceptable for oil and gas exploration 

23 and production in order to mitigate conflict. 

24 (e) BALANCING MILITARY AND ENERGY PRODUCTION

25 GOALS.— 


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1 (1) JOINT GOALS.—In recognition that the Outer 

2 Continental Shelf oil and gas leasing program and 

3 the domestic energy resources produced therefrom are 

4 integral to national security, the Secretary of the In5 terior and the Secretary of Defense shall work jointly 

6 in implementing this section in order to ensure 

7 achievement of the goals of— 

8 (A) preserving the ability of the Armed 

9 Forces of the United States to maintain an opti10 mum state of readiness through their continued 

11 use of the Outer Continental Shelf; and 

12 (B) allowing effective exploration, develop13 ment, and production of our Nation’s oil, gas, 

14 and renewable energy resources. 

15 (C) recognizing the Outer Continental Shelf 

16 oil and gas leasing program is an integral part 

17 of the Nation’s energy security program to de18 velop domestic oil and gas resources. 

19 (2) PROHIBITION ON CONFLICTS WITH MILITARY

20 OPERATIONS.—No person may engage in any explo21 ration, development, or production of oil or natural 

22 gas in the Eastern Gulf of Mexico Outer Continental 

23 Shelf Planning Area that would conflict with any 

24 military operation, as determined in accordance with 

25 the Memorandum of Agreement between the DepartVerDate Mar 15 2010 01:21 Feb 11, 2012 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6203 E:\BILLS\H3410.RH H3410

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1 ment of Defense and the Department of the Interior 

2 on Mutual Concerns on the Outer Continental Shelf 

3 signed July 20, 1983, and any revision or replace4 ment for that agreement that is agreed to by the Sec5 retary of Defense and the Secretary of the Interior 

6 after that date but before the date of issuance of the 

7 lease under which such exploration, development, or 

8 production is conducted. 

9 SEC. 303. AREAS ADDED TO CENTRAL GULF OF MEXICO 

10 PLANNING AREA. 

11 The Secretary shall conduct an offshore oil and gas 

12 lease sale under section 8 of the Outer Continental Shelf 

13 Lands Act (43 U.S.C. 1337) for the areas added to the Cen14 tral Gulf of Mexico Outer Continental Shelf Planning Area 

15 as a result of the enactment of section 302(a) as soon as 

16 practicable, but not later than the first lease sale under such 

17 section after the date of the enactment of this Act in which 

18 any area in such planning area is made available for leas19 ing. 

20 SEC. 304. APPLICATION OF OUTER CONTINENTAL SHELF 

21 LANDS ACT WITH RESPECT TO TERRITORIES 

22 OF THE UNITED STATES. 

23 Section 2 of the Outer Continental Shelf Lands Act 

24 (43 U.S.C. 1331) is amended— 


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1 (1) in paragraph (a), by inserting after ‘‘con2 trol’’ the following: ‘‘or lying within the United 

3 States’ exclusive economic zone and the Continental 

4 Shelf adjacent to any territory of the United States’’; 

5 and 

6 (2) in paragraph (p), by striking ‘‘and’’ after the 

7 semicolon at the end; 

8 (3) in paragraph (q), by striking the period at 

9 the end and inserting ‘‘; and’’; and 

10 (4) by adding at the end the following: 

11 ‘‘(r) The term ‘State’ includes each territory of the 

12 United States.’’. 

13 TITLE IV—OUTER CONTINENTAL 

14 SHELF REVENUE SHARING 

15 SEC. 401. DISPOSITION OF OUTER CONTINENTAL SHELF 

16 REVENUES TO COASTAL STATES. 

17 (a) IN GENERAL.—Section 9 of the Outer Continental 

18 Shelf Lands Act (43 U.S.C. 1338) is amended— 

19 (1) in the existing text— 

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

21 rentals,’’ and inserting the following: 

22 ‘‘(c) DISPOSITION OF REVENUE UNDER OLD

23 LEASES.—All rentals,’’; and 

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

25 amendment made by subparagraph (A) of this 


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

2 June 5, 1950, to date, and thereafter’’ and in3 serting ‘‘in the period beginning June 5, 1950, 

4 and ending on the date of enactment of the En5 ergy Security and Transportation Jobs Act’’; 

6 (2) by adding after subsection (c) (as so des7 ignated) the following: 

8 ‘‘(d) DEFINITIONS.—In this section: 

9 ‘‘(1) COASTAL STATE.—The term ‘coastal State’ 

10 includes a territory of the United States. 

11 ‘‘(2) NEW LEASING REVENUES.—The term ‘new 

12 leasing revenues’— 

13 ‘‘(A) means amounts received by the United 

14 States as bonuses, rents, and royalties under 

15 leases for oil and gas, wind, tidal, or other en16 ergy exploration, development, and production 

17 on areas of the outer Continental Shelf that are 

18 authorized to be made available for leasing as a 

19 result of enactment of the Energy Security and 

20 Transportation Jobs Act; and 

21 ‘‘(B) does not include amounts received by 

22 the United States under any lease of an area lo23 cated in the boundaries of the Central Gulf of 

24 Mexico and Western Gulf of Mexico Outer Conti25 nental Shelf Planning Areas on the date of the 


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1 enactment of the Energy Security and Transpor2 tation Jobs Act, including a lease issued before, 

3 on, or after such date of enactment.’’; and 

4 (3) by inserting before subsection (c) (as so des5 ignated) the following: 

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

7 COASTAL STATES.— 

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (2), of the amount of new leasing revenues re10 ceived by the United States each fiscal year, 37.5 per11 cent shall be allocated and paid in accordance with 

12 subsection (b) to coastal States that are affected States 

13 with respect to the leases under which those revenues 

14 are received by the United States. 

15 ‘‘(2) PHASE-IN.—Paragraph (1) shall be ap16 plied— 

17 ‘‘(A) with respect to new leasing revenues 

18 under leases awarded under the first leasing pro19 gram under section 18(a) that takes effect after 

20 the date of enactment of the Energy Security and 

21 Transportation Jobs Act, by substituting ‘12.5 

22 percent’ for ‘37.5 percent’; and 

23 ‘‘(B) with respect to new leasing revenues 

24 under leases awarded under the second leasing 

25 program under section 18(a) that takes effect 


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1 after the date of enactment of the Energy Secu2 rity and Transportation Jobs Act, by sub3 stituting ‘25 percent’ for ‘37.5 percent’. 

4 ‘‘(b) ALLOCATION OF PAYMENTS.— 

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

6 revenues received by the United States with respect to 

7 a leased tract that are required to be paid to coastal 

8 States in accordance with this subsection each fiscal 

9 year shall be allocated among and paid to coastal 

10 States that are within 200 miles of the leased tract, 

11 in amounts that are inversely proportional to the re12 spective distances between the point on the coastline 

13 of each such State that is closest to the geographic 

14 center of the lease tract, as determined by the Sec15 retary. 

16 ‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.—The 

17 amount allocated to a coastal State under paragraph 

18 (1) each fiscal year with respect to a leased tract shall 

19 be— 

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

21 the nearest State to the geographic center of the 

22 leased tract, not less than 25 percent of the total 

23 amounts allocated with respect to the leased 

24 tract; 


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

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

3 percent, of the total amounts allocated with re4 spect to the leased tract; and 

5 ‘‘(C) in the case of a coastal State that is 

6 the only coastal State within 200 miles of a least 

7 tract, 100 percent of the total amounts allocated 

8 with respect to the leased tract. 

9 ‘‘(3) ADMINISTRATION.—Amounts allocated to a 

10 coastal State under this subsection— 

11 ‘‘(A) shall be available to the coastal State 

12 without further appropriation; 

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

14 and 

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

16 amounts available to the coastal State under this 

17 Act. 

18 ‘‘(4) USE OF FUNDS.— 

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

20 subparagraph (B), a coastal State may use funds 

21 allocated and paid to it under this subsection for 

22 any purpose as determined by the laws of that 

23 State. 

24 ‘‘(B) RESTRICTION ON USE FOR MATCH25 ING.—Funds allocated and paid to a coastal 


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1 State under this subsection may not be used as 

2 matching funds for any other Federal program.’’. 

3 (b) LIMITATION ON APPLICATION.—This section and 

4 the amendment made by this section shall not affect the ap5 plication of section 105 of the Gulf of Mexico Energy Secu6 rity Act of 2006 (title I of division C of Public Law 109– 

7 432; (43 U.S.C. 1331 note)), as in effect before the enact8 ment of this Act, with respect to revenues received by the 

9 United States under oil and gas leases issued for tracts lo10 cated in the Western and Central Gulf of Mexico Outer Con11 tinental Shelf Planning Areas, including such leases issued 

12 on or after the date of the enactment of this Act. 

13 TITLE V—MISCELLANEOUS 

14 PROVISIONS 

15 SEC. 501. POLICIES REGARDING BUYING, BUILDING, AND 

16 WORKING FOR AMERICA. 

17 (a) CONGRESSIONAL INTENT.—It is the intent of the 

18 Congress that— 

19 (1) this Act will support a healthy and growing 

20 United States domestic energy sector that, in turn, 

21 helps to reinvigorate American manufacturing, trans22 portation, and service sectors by employing the vast 

23 talents of United States workers to assist in the devel24 opment of energy from domestic sources; and 


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1 (2) Congress will monitor the deployment of per2 sonnel and material onshore and offshore to encourage 

3 the development of American technology and manu4 facturing to enable United States workers to benefit 

5 from this Act through good jobs and careers, as well 

6 as the establishment of important industrial facilities 

7 to support expanded access to American resources. 

8 (b) REQUIREMENT.—The Secretary of the Interior 

9 shall when possible, and practicable, encourage the use of 

10 United States workers and equipment manufactured in the 

11 United States in all construction related to mineral and 

12 renewable energy resource development on the Outer Conti13 nental Shelf under this Act. 

14 SEC. 502. REGULATIONS. 

15 Section 30(a) of the Outer Continental Shelf Lands Act 

16 (43 U.S.C. 1356(a)) is amended by striking ‘‘shall issue reg17 ulations which’’ and inserting ‘‘shall issue regulations that 

18 shall be supplemental to, complementary with, and under 

19 no circumstances a substitution for the provisions of the 

20 Constitution and laws of the United States extended to the 

21 subsoil and seabed of the outer Continental Shelf by section 

22 4(a)(1), except insofar as such laws would otherwise apply 

23 to individuals who have extraordinary ability in the 

24 sciences, arts, education, or business, which has been demVerDate Mar 15 2010 01:21 Feb 11, 2012 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6203 E:\BILLS\H3410.RH H3410

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1 onstrated by sustained national or international acclaim, 

2 and that’’. 


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Union Calendar No. 275 

112TH CONGRESS 

2D SESSION H. R. 3410 

[Report No. 112–395] 

A BILL 

To require the Secretary of the Interior to conduct 

and for other purposes. generate revenue for American infrastructure, opment plans in areas with the most potential, to States, to formulate future offshore energy develfair and equitable revenue sharing for all coastal certain offshore oil and gas lease sales, to provide 

FEBRUARY 9, 2012 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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