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[House Report 112-74]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     112-74

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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 1231) TO AMEND THE OUTER 
 CONTINENTAL SHELF LANDS ACT TO REQUIRE THAT EACH 5-YEAR OFFSHORE OIL 
   AND GAS LEASING PROGRAM OFFER LEASING IN THE AREAS WITH THE MOST 
  PROSPECTIVE OIL AND GAS RESOURCES, TO ESTABLISH A DOMESTIC OIL AND 
          NATURAL GAS PRODUCTION GOAL, AND FOR OTHER PURPOSES

                                _______
                                

May 10, 2011.--Referred to the House Calendar and ordered to be printed

                                _______
                                

                Mr. Reed, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 257]

    The Committee on Rules, having had under consideration 
House Resolution 257, by a record vote of 7 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 1231, to 
amend the Outer Continental Shelf Lands Act to require that 
each 5-year offshore oil and gas leasing program offer leasing 
in the areas with the most prospective oil and gas resources, 
to establish a domestic oil and natural gas production goal, 
and for other purposes, under a structured rule. The resolution 
provides one hour of general debate equally divided and 
controlled by the chair and ranking minority member of the 
Committee on Natural Resources. The resolution waives all 
points of order against consideration of the bill. The 
resolution provides that the amendment recommended by the 
Committee on Natural Resources now printed in the bill shall be 
considered as adopted and that the bill, as amended, shall be 
considered as read. The resolution waives all points of order 
against provisions in the bill, as amended. The resolution 
makes in order only those amendments printed in this report. 
Each such amendment may be offered only in the order printed in 
this report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
time specified in this report equally divided and controlled by 
the proponent and an opponent, shall not be subject to 
amendment, and shall not be subject to a demand for division of 
the question in the House or in the Committee of the Whole. All 
points of order against the amendments printed in this report 
are waived. Finally, the resolution provides one motion to 
recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    The resolution waives all points of order against 
consideration of the bill. This includes a waiver of clause 
3(c)(4) of rule XIII, which requires the inclusion of general 
performance goals and objectives in a committee report.
    Although the rule waives all points of order against 
provisions in the bill, as amended, the Committee is not aware 
of any points of order against its provisions. The waiver is 
prophylactic in nature.
    Although the resolution waives all points of order against 
the amendments printed in this report, the Committee is not 
aware of any points of order against the amendments and 
therefore the waiver is prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 92

    Motion by Mr. McGovern to report an open rule. Defeated: 3-
6

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Mr. McGovern......................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 93

    Motion by Mr. McGovern to amend the rule to make in order 
and provide the appropriate waivers for amendment No. 20, 
offered by Rep. Boswell (IA), which would require the Secretary 
of the Interior to include requirements for any person awarded 
a lease under the program to give preference to hiring veterans 
for activities under the lease. Defeated: 3-6

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Mr. McGovern......................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 94

    Motion by Mr. McGovern to amend the rule to add a new 
section at the end of the rule to provide for the immediate 
consideration, upon the adoption of the rule, of a bill 
consisting of the text of amendment No. 7, offered by Rep. 
McGovern under an open rule. Defeated: 3-6

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Mr. McGovern......................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 95

    Motion by Mr. Hastings of Florida to amend the rule to make 
in order and provide the appropriate waivers for amendment No. 
19, offered by Rep. Hastings (FL), which would prohibit any 
lease-sale from going forward where either the National Academy 
of Science or Intergovernmental Panel on Climate Change has 
determined that use by human beings of any non-renewable 
resource expected to be extracted from the subject property 
contributes to global climate change. Defeated: 3-7

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Nay   Mr. McGovern......................          Yea
Mr. Bishop of Utah..............................          Nay   Mr. Hastings of Florida...........          Yea
Mr. Woodall.....................................          Nay   Mr. Polis.........................          Yea
Mr. Nugent......................................          Nay
Mr. Scott of South Carolina.....................          Nay
Mr. Webster.....................................          Nay
Mr. Dreier, Chairman............................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 96

    Motion by Ms. Foxx to report a structured rule. Adopted: 7-
3

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................          Yea   Mr. McGovern......................          Nay
Mr. Bishop of Utah..............................          Yea   Mr. Hastings of Florida...........          Nay
Mr. Woodall.....................................          Yea   Mr. Polis.........................          Nay
Mr. Nugent......................................          Yea
Mr. Scott of South Carolina.....................          Yea
Mr. Webster.....................................          Yea
Mr. Dreier, Chairman............................          Yea
----------------------------------------------------------------------------------------------------------------

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Hastings (WA): Manager's Amendment  Would make technical 
numbering corrections to section 2 of the bill. (10 minutes)
    2. Connolly (VA), Scott (VA), Moran (VA): Would clarify 
that new offshore drilling would not conflict with military 
operations. (10 minutes)
    3. Markey (MA): Would require that new 5-year leasing plans 
require that companies bidding on new leases first renegotiate 
any royalty-free leases they own; thus raising more than $2 
billion over 10 years. (10 minutes)
    4. Keating (MA): Would require the Secretary to make public 
information about the lessee's executive bonuses from the most 
recent quarter. (10 minutes)
    5. Tsongas (MA): Would require that all applicants for a 
drilling permit under a lease issued under H.R. 1231 would have 
to submit a worst-case scenario oil spill containment and 
clean-up plan. (10 minutes)
    6. Brown (FL): Would make permanent the current moratorium 
on drilling in the eastern gulf of Mexico that expires in 2022. 
(10 minutes)
    7. Thompson, Mike (CA): Would clarify that the legislation 
does not allow for oil and gas drilling on the northern coast 
of California. (10 minutes)
    8. Inslee (WA): Would require the Washington state Governor 
and legislature approve any leasing of the Outer Continental 
Shelf off of Washington state. (10 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

1. An Amendment To Be Offered by Representative Hastings of Washington 
               or His Designee, Debatable for 10 Minutes

  Page 3, line 10, strike ``(4)'' and insert ``(5)''.
  Page 4, line 6, strike ``(5)'' and insert ``(6)''.
                              ----------                              

2. An Amendment To Be Offered by Representative Connolly of Virginia or 
                 His Designee, Debatable for 10 Minutes

  Page 3, line 12, insert ``, except in locations that would 
interfere, conflict with, or impede operations of the Armed 
Forces,'' after ``conduct lease sales''.
                              ----------                              

3. An Amendment To Be Offered by Representative Markey of Massachusetts 
               or His Designee, Debatable for 10 Minutes

  Page 4, line 19, strike the closing quotation marks and the 
second period, and after line 19 insert the following new 
paragraph:
          ``(7) Eligibility for new leases and the transfer of 
        leases.--
                  ``(A) Issuance of new leases.--
                          ``(i) In general.--In each oil and 
                        gas leasing program under this section, 
                        beginning with the 2012-2017 5-year 
                        program, the Secretary of the Interior 
                        shall specify that the Secretary will 
                        not accept bids on any new leases 
                        offered pursuant to this Act from a 
                        person described in paragraph (2) 
                        unless the person has renegotiated each 
                        covered lease with respect to which the 
                        person is a lessee, to modify the 
                        payment responsibilities of the person 
                        to require the payment of royalties if 
                        the price of oil and natural gas is 
                        greater than or equal to the price 
                        thresholds described in clauses (v) 
                        through (vii) of section 8(a)(3)(C) of 
                        the Outer Continental Shelf Lands Act 
                        (43 U.S.C. 1337(a)(3)(C)).
                          ``(ii) Persons described.--A person 
                        referred to in clause (i) is a person 
                        that--
                                  ``(I) is a lessee that--
                                          ``(aa) holds a 
                                        covered lease on the 
                                        date on which the 
                                        Secretary considers the 
                                        issuance of the new 
                                        lease; or
                                          ``(bb) was issued a 
                                        covered lease before 
                                        the date of enactment 
                                        of this Act, but 
                                        transferred the covered 
                                        lease to another person 
                                        or entity (including a 
                                        subsidiary or affiliate 
                                        of the lessee) after 
                                        the date of enactment 
                                        of this Act; or
                                  ``(II) any other person that 
                                has any direct or indirect 
                                interest in, or that derives 
                                any benefit from, a covered 
                                lease.
                          ``(iii) Multiple lessees.--
                                  ``(I) In general.--For 
                                purposes of clause (1), if 
                                there are multiple lessees that 
                                own a share of a covered lease, 
                                the Secretary may implement 
                                separate agreements with any 
                                lessee with a share of the 
                                covered lease that modifies the 
                                payment responsibilities with 
                                respect to the share of the 
                                lessee to include price 
                                thresholds that are equal to or 
                                less than the price thresholds 
                                described in clauses (v) 
                                through (vii) of section 
                                8(a)(3)(C) of the Outer 
                                Continental Shelf Lands Act (43 
                                U.S.C. 1337(a)(3)(C)).
                                  ``(II) Treatment of share as 
                                covered lease.--Beginning on 
                                the effective date of an 
                                agreement under subclause (I), 
                                any share subject to the 
                                agreement shall not constitute 
                                a covered lease with respect to 
                                any lessees that entered into 
                                the agreement.
                  ``(B) Transfers.--A lessee or any other 
                person who has any direct or indirect interest 
                in, or who derives a benefit from, a covered 
                lease shall not be eligible to obtain by sale 
                or other transfer (including through a swap, 
                spinoff, servicing, or other agreement) any new 
                lease made available in an oil and gas leasing 
                program under this section, or the economic 
                benefit of such a new lease, unless the lessee 
                or other person has--
                          ``(i) renegotiated each covered lease 
                        with respect to which the lessee or 
                        person is a lessee, to modify the 
                        payment responsibilities of the lessee 
                        or person to include price thresholds 
                        that are equal to or less than the 
                        price thresholds described in clauses 
                        (v) through (vii) of section 8(a)(3)(C) 
                        of the Outer Continental Shelf Lands 
                        Act (43 U.S.C. 1337(a)(3)(C)); or
                          ``(ii) entered into an agreement with 
                        the Secretary to modify the terms of 
                        all covered leases of the lessee or 
                        other person to include limitations on 
                        royalty relief based on market prices 
                        that are equal to or less than the 
                        price thresholds described in clauses 
                        (v) through (vii) of section 8(a)(3)(C) 
                        of the Outer Continental Shelf Lands 
                        Act (43 U.S.C. 1337(a)(3)(C)).
                  ``(C) Definitions.--In this paragraph--
                          ``(i) Covered lease.--The term 
                        `covered lease' means a lease for oil 
                        or gas production in the Gulf of Mexico 
                        that is--
                                  ``(I) in existence on the 
                                date of enactment of this Act;
                                  ``(II) issued by the 
                                Department of the Interior 
                                under section 304 of the Outer 
                                Continental Shelf Deep Water 
                                Royalty Relief Act (43 U.S.C. 
                                1337 note; Public Law 104-58); 
                                and
                                  ``(III) not subject to 
                                limitations on royalty relief 
                                based on market price that are 
                                equal to or less than the price 
                                thresholds described in clauses 
                                (v) through (vii) of section 
                                8(a)(3)(C) of the Outer 
                                Continental Shelf Lands Act (43 
                                U.S.C. 1337(a)(3)(C)).
                          ``(ii) Lessee.--The term `lessee' 
                        includes any person or other entity 
                        that controls, is controlled by, or is 
                        in or under common control with, a 
                        lessee.
                          ``(iii) New lease.--The term `new 
                        lease' means a lease issued in a lease 
                        sale under this Act.
                          ``(iv) Secretary.--The term 
                        `Secretary' means the Secretary of the 
                        Interior.''.
                              ----------                              

      4. An Amendment To Be Offered by Representative Keating of 
        Massachusetts or His Designee, Debatable for 10 Minutes

  Page 4, line 19, strike the closing quotation marks and the 
second period, and after line 19 insert the following new 
paragraph:
          ``(7) Data regarding bonuses provided to 
        executives.--In each oil and gas leasing program under 
        this section, the Secretary shall include requirements 
        under which the Secretary shall make available to the 
        public data provided by each lessee under the program 
        with respect to the bonuses provided to the executives 
        of the lessee from the most recent quarter.''.
                              ----------                              

      5. An Amendment To Be Offered by Representative Tsongas of 
        Massachusetts or Her Designee, Debatable for 10 Minutes

  Page 4, strike the closing quotation marks and second period 
at line 19, and after line 19 insert the following:
          ``(7) Worst-case containment and clean-up plan 
        required.--The Secretary shall include, in each 5-year 
        oil and gas leasing program, a requirement that each 
        applicant for a permit to drill under a lease issued in 
        a lease sale under the program must include a plan for 
        containment and clean-up of a worst-case oil and gas 
        discharge scenario in activities conducted under the 
        permit, if issued.''.
                              ----------                              

6. An Amendment To Be Offered by Representative Brown of Florida or Her 
                   Designee, Debatable for 10 Minutes

  Page 4, line 19, strike the closing quotation marks and the 
second period, and after line 19 insert the following new 
paragraph:
          ``(7) Making moratorium in the eastern gulf of mexico 
        permanent.--The Secretary shall not make available for 
        leasing in any oil and gas leasing program under this 
        section any area referred to in section 104(a) of the 
        Gulf of Mexico Energy Security Act of 2006 (title I of 
        division C of Public Law 109-432; 43 U.S.C. 1331 
        note).''.
                              ----------                              

7. An Amendment To Be Offered by Representative Thompson of California 
               or His Designee, Debatable for 10 Minutes

  Page 4, line 19, strike the final closed quotation mark and 
the following period.
  Page 4, after line 19, insert the following new subparagraph:
          ``(C) Notwithstanding subparagraph (A), the Secretary 
        may not include in any oil and gas leasing program 
        under this paragraph any lease sale in the Northern 
        California Planning Area.''.
                              ----------                              

8. An Amendment To Be Offered by Representative Inslee of Washington or 
                 His Designee, Debatable for 10 Minutes

  Page 4, line 19, strike the closing quotation marks and the 
second period, and after line 19 insert the following new 
paragraph:
          ``(7) Washington state approval required.--Under this 
        section, the Secretary shall not make available for 
        leasing for exploration, development, and production of 
        oil and natural gas any area of the outer Continental 
        Shelf off the coast of Washington unless such leasing 
        is approved by the Governor and legislature of the 
        State of Washington.''.

                                  
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