IB 

Union Calendar No. 90 

113TH CONGRESS 

1ST SESSION H. R. 2231 

[Report No. 113–125] 

To amend the Outer Continental Shelf Lands Act to increase energy exploration and production on the Outer Continental Shelf, provide for equitable revenue sharing for all coastal States, implement the reorganization 

of the functions of the former Minerals Management Service into distinct 

and separate agencies, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 4, 2013 

Mr. HASTINGS of Washington (for himself, Mr. LAMBORN, Mr. CRAMER, Mr. 

FLORES, Mr. DUNCAN of South Carolina, Mr. LAMALFA, and Mr. WITTMAN) introduced the following bill; which was referred to the Committee 

on Natural Resources 

JUNE 24, 2013 

Additional sponsors: Mr. DAINES, Mr. STEWART, Mr. BENISHEK, Mr. 

MCCLINTOCK, and Mr. MULLIN

JUNE 24, 2013 

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 June 4, 2013] 


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A BILL 

To amend the Outer Continental Shelf Lands Act to increase 

energy exploration and production on the Outer Continental Shelf, provide for equitable revenue sharing for 

all coastal States, implement the reorganization of the 

functions of the former Minerals Management Service 

into distinct and separate agencies, 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 ‘‘Offshore Energy and 

5 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—OUTER CONTINENTAL SHELF LEASING PROGRAM 

REFORMS 

Sec. 101. Outer Continental Shelf leasing program reforms. 

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

Sec. 103. Development and submittal of new 5-year oil and gas leasing program. 

TITLE II—DIRECTING THE PRESIDENT TO CONDUCT NEW OCS 

SALES IN VIRGINIA, SOUTH CAROLINA, AND CALIFORNIA 

Sec. 201. Requirement to conduct proposed oil and gas Lease Sale 220 on the 

Outer Continental Shelf offshore Virginia. 

Sec. 202. South Carolina lease sale. 

Sec. 203. Southern California existing infrastructure lease sale. 

Sec. 204. Environmental impact statement requirement. 

Sec. 205. National defense. 

Sec. 206. Eastern Gulf of Mexico not included. 

TITLE III—EQUITABLE SHARING OF OUTER CONTINENTAL SHELF 

REVENUES 

Sec. 301. Disposition of Outer Continental Shelf revenues to coastal States. 

TITLE IV—REORGANIZATION OF MINERALS MANAGEMENT 

AGENCIES OF THE DEPARTMENT OF THE INTERIOR 

Sec. 401. Establishment of Under Secretary for Energy, Lands, and Minerals and 

Assistant Secretary of Ocean Energy and Safety. 

Sec. 402. Bureau of Ocean Energy. 

Sec. 403. Ocean Energy Safety Service. 

Sec. 404. Office of Natural Resources revenue. 

Sec. 405. Ethics and drug testing. 

Sec. 406. Abolishment of Minerals Management Service. 

Sec. 407. Conforming amendments to Executive Schedule pay rates. 

Sec. 408. Outer Continental Shelf Energy Safety Advisory Board. 

Sec. 409. Outer Continental Shelf inspection fees. 


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TITLE V—UNITED STATES TERRITORIES 

Sec. 501. Application of Outer Continental Shelf Lands Act with respect to territories of the United States. 

1 TITLE I—OUTER CONTINENTAL 

2 SHELF LEASING PROGRAM 

3 REFORMS 

4 SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM 

5 REFORMS. 

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

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

8 following: 

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

10 under this section, the Secretary shall make available 

11 for leasing and conduct lease sales including at least 

12 50 percent of the available unleased acreage within 

13 each outer Continental Shelf planning area consid14 ered to have the largest undiscovered, technically re15 coverable oil and gas resources (on a total btu basis) 

16 based upon the most recent national geologic assess17 ment of the outer Continental Shelf, with an emphasis 

18 on offering the most geologically prospective parts of 

19 the planning area. 

20 ‘‘(B) The Secretary shall include in each pro21 posed oil and gas leasing program under this section 

22 any State subdivision of an outer Continental Shelf 

23 planning area that the Governor of the State that 


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1 represents that subdivision requests be made available 

2 for leasing. The Secretary may not remove such a 

3 subdivision from the program until publication of the 

4 final program. 

5 ‘‘(C) In this paragraph the term ‘available un6 leased acreage’ means that portion of the outer Conti7 nental Shelf that is not under lease at the time of a 

8 proposed lease sale, and that has not otherwise been 

9 made unavailable for leasing by law. 

10 ‘‘(6)(A) In the 5-year oil and gas leasing pro11 gram, the Secretary shall make available for leasing 

12 any outer Continental Shelf planning areas that— 

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

14 2,500,000,000 barrels of oil; or 

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

16 7,500,000,000,000 cubic feet of natural gas. 

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

18 in subparagraph (A), the Secretary shall use the doc19 ument entitled ‘Minerals Management Service Assess20 ment of Undiscovered Technically Recoverable Oil 

21 and Gas Resources of the Nation’s Outer Continental 

22 Shelf, 2006’.’’. 


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1 SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION 

2 GOAL. 

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

4 (43 U.S.C. 1344(b)) is amended to read as follows: 

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

6 GOAL.—– 

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

8 and gas leasing program, and subject to paragraph 

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

10 production goal for the development of oil and nat11 ural gas as a result of that program. Such goal shall 

12 be— 

13 ‘‘(A) the best estimate of the possible in14 crease in domestic production of oil and natural 

15 gas from the outer Continental Shelf; 

16 ‘‘(B) focused on meeting domestic demand 

17 for oil and natural gas and reducing the depend18 ence of the United States on foreign energy; and 

19 ‘‘(C) focused on the production increases 

20 achieved by the leasing program at the end of the 

21 15-year period beginning on the effective date of 

22 the program. 

23 ‘‘(2) PROGRAM GOAL.—For purposes of the 5- 

24 year oil and gas leasing program, the production goal 

25 referred to in paragraph (1) shall be an increase by 

26 2032 of— 


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

2 amount of oil produced per day; and 

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

4 in the amount of natural gas produced per day. 

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

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

7 for which the program applies, to the Committee on 

8 Natural Resources of the House of Representatives 

9 and the Committee on Energy and Natural Resources 

10 of the Senate on the progress of the program in meet11 ing the production goal. The Secretary shall identify 

12 in the report projections for production and any 

13 problems with leasing, permitting, or production that 

14 will prevent meeting the goal.’’. 

15 SEC. 103. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR 

16 OIL AND GAS LEASING PROGRAM. 

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

18 shall— 

19 (1) by not later than July 15, 2014, publish and 

20 submit to Congress a new proposed oil and gas leas21 ing program under section 18 of the Outer Conti22 nental Shelf Lands Act (43 U.S.C. 1344) for the 5- 

23 year period beginning on such date and ending July 

24 15, 2020; and 


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1 (2) by not later than July 15, 2015, approve a 

2 final oil and gas leasing program under such section 

3 for such period. 

4 (b) CONSIDERATION OF ALL AREAS.—In preparing 

5 such program the Secretary shall include consideration of 

6 areas of the Continental Shelf off the coasts of all States 

7 (as such term is defined in section 2 of that Act, as amended 

8 by this Act), that are subject to leasing under this Act. 

9 (c) TECHNICAL CORRECTION.—Section 18(d)(3) of the 

10 Outer Continental Shelf Lands Act (43 U.S.C. 1344(d)(3)) 

11 is amended by striking ‘‘or after eighteen months following 

12 the date of enactment of this section, whichever first oc13 curs,’’. 

14 TITLE II—DIRECTING THE 

15 PRESIDENT TO CONDUCT 

16 NEW OCS SALES IN VIRGINIA, 

17 SOUTH CAROLINA, AND CALI18 FORNIA 

19 SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND 

20 GAS LEASE SALE 220 ON THE OUTER CONTI21 NENTAL SHELF OFFSHORE VIRGINIA. 

22 (a) IN GENERAL.—Notwithstanding the exclusion of 

23 Lease Sale 220 in the Final Outer Continental Shelf Oil 

24 & Gas Leasing Program 2012–2017, the Secretary of the 

25 Interior shall conduct offshore oil and gas Lease Sale 220 


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1 under section 8 of the Outer Continental Shelf Lands Act 

2 (43 U.S.C. 1337) as soon as practicable, but not later than 

3 one year after the date of enactment of this Act. 

4 (b) REQUIREMENT TO MAKE REPLACEMENT LEASE

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

6 lease sale under this section for which the Secretary of De7 fense, in consultation with the Secretary of the Interior, 

8 under the Memorandum of Agreement referred to in section 

9 205(b), issues a statement proposing deferral from a lease 

10 offering due to defense-related activities that are irreconcil11 able with mineral exploration and development, the Sec12 retary of the Interior, in consultation with the Secretary 

13 of Defense, shall make available in the same lease sale one 

14 other lease block in the Virginia lease sale planning area 

15 that is acceptable for oil and gas exploration and produc16 tion in order to mitigate conflict. 

17 (c) BALANCING MILITARY AND ENERGY PRODUCTION

18 GOALS.—In recognition that the Outer Continental Shelf 

19 oil and gas leasing program and the domestic energy re20 sources produced therefrom are integral to national secu21 rity, the Secretary of the Interior and the Secretary of De22 fense shall work jointly in implementing this section in 

23 order to ensure achievement of the following common goals: 

24 (1) Preserving the ability of the Armed Forces of 

25 the United States to maintain an optimum state of 


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1 readiness through their continued use of the Outer 

2 Continental Shelf. 

3 (2) Allowing effective exploration, development, 

4 and production of our Nation’s oil, gas, and renew5 able energy resources. 

6 (d) DEFINITIONS.—In this section: 

7 (1) LEASE SALE 220.—The term ‘‘Lease Sale 

8 220’’ means such lease sale referred to in the Request 

9 for Comments on the Draft Proposed 5-Year Outer 

10 Continental Shelf (OCS) Oil and Gas Leasing Pro11 gram for 2010–2015 and Notice of Intent To Prepare 

12 an Environmental Impact Statement (EIS) for the 

13 Proposed 5-Year Program published January 21, 

14 2009 (74 Fed. Reg. 3631). 

15 (2) VIRGINIA LEASE SALE PLANNING AREA.—The 

16 term ‘‘Virginia lease sale planning area’’ means the 

17 area of the outer Continental Shelf (as that term is 

18 defined in the Outer Continental Shelf Lands Act (33 

19 U.S.C. 1331 et seq.)) that is bounded by— 

20 (A) a northern boundary consisting of a 

21 straight line extending from the northernmost 

22 point of Virginia’s seaward boundary to the 

23 point on the seaward boundary of the United 

24 States exclusive economic zone located at 37 deVerDate Mar 15 2010 22:14 Jun 24, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H2231.RH H2231

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1 grees 17 minutes 1 second North latitude, 71 de2 grees 5 minutes 16 seconds West longitude; and 

3 (B) a southern boundary consisting of a 

4 straight line extending from the southernmost 

5 point of Virginia’s seaward boundary to the 

6 point on the seaward boundary of the United 

7 States exclusive economic zone located at 36 de8 grees 31 minutes 58 seconds North latitude, 71 

9 degrees 30 minutes 1 second West longitude. 

10 SEC. 202. SOUTH CAROLINA LEASE SALE. 

11 Notwithstanding inclusion of the South Atlantic Outer 

12 Continental Shelf Planning Area in the Final Outer Conti13 nental Shelf Oil & Gas Leasing Program 2012–2017, the 

14 Secretary of the Interior shall conduct a lease sale not later 

15 than 2 years after the date of the enactment of this Act 

16 for areas off the coast of South Carolina determined by the 

17 Secretary to have the most geologically promising hydro18 carbon resources and constituting not less than 25 percent 

19 of the leasable area within the South Carolina offshore ad20 ministrative boundaries depicted in the notice entitled 

21 ‘‘Federal Outer Continental Shelf (OCS) Administrative 

22 Boundaries Extending from the Submerged Lands Act 

23 Boundary seaward to the Limit of the United States Outer 

24 Continental Shelf’’, published January 3, 2006 (71 Fed. 

25 Reg. 127). 


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1 SEC. 203. SOUTHERN CALIFORNIA EXISTING INFRASTRUC2 TURE LEASE SALE. 

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

4 offer for sale leases of tracts in the Santa Maria and Santa 

5 Barbara/Ventura Basins of the Southern California OCS 

6 Planning Area as soon as practicable, but not later than 

7 December 31, 2014. 

8 (b) USE OF EXISTING STRUCTURES OR ONSHORE9 BASED DRILLING.—The Secretary of the Interior shall in10 clude in leases offered for sale under this lease sale such 

11 terms and conditions as are necessary to require that devel12 opment and production may occur only from offshore infra13 structure in existence on the date of the enactment of this 

14 Act or from onshore-based, extended-reach drilling. 

15 SEC. 204. ENVIRONMENTAL IMPACT STATEMENT REQUIRE16 MENT. 

17 (a) IN GENERAL.—For the purposes of this Act, the 

18 Secretary of the Interior shall prepare a multisale environ19 mental impact statement under section 102 of the National 

20 Environmental Policy Act of 1969 (42 U.S.C. 4332) for all 

21 lease sales required under this title. 

22 (b) ACTIONS TO BE CONSIDERED.—Notwithstanding 

23 section 102 of the National Environmental Policy Act of 

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

25 (1) the Secretary is not required to identify non26 leasing alternative courses of action or to analyze the 


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1 environmental effects of such alternative courses of ac2 tion; and 

3 (2) the Secretary shall only— 

4 (A) identify a preferred action for leasing 

5 and not more than one alternative leasing pro6 posal; and 

7 (B) analyze the environmental effects and 

8 potential mitigation measures for such preferred 

9 action and such alternative leasing proposal. 

10 SEC. 205. NATIONAL DEFENSE. 

11 (a) NATIONAL DEFENSE AREAS.—This Act does not 

12 affect the existing authority of the Secretary of Defense, 

13 with the approval of the President, to designate national 

14 defense areas on the Outer Continental Shelf pursuant to 

15 section 12(d) of the Outer Continental Shelf Lands Act (43 

16 U.S.C. 1341(d)). 

17 (b) PROHIBITION ON CONFLICTS WITH MILITARY OP18 ERATIONS.—No person may engage in any exploration, de19 velopment, or production of oil or natural gas on the Outer 

20 Continental Shelf under a lease issued under this Act that 

21 would conflict with any military operation, as determined 

22 in accordance with the Memorandum of Agreement between 

23 the Department of Defense and the Department of the Inte24 rior on Mutual Concerns on the Outer Continental Shelf 

25 signed July 20, 1983, and any revision or replacement for 


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1 that agreement that is agreed to by the Secretary of Defense 

2 and the Secretary of the Interior after that date but before 

3 the date of issuance of the lease under which such explo4 ration, development, or production is conducted. 

5 SEC. 206. EASTERN GULF OF MEXICO NOT INCLUDED. 

6 Nothing in this Act affects restrictions on oil and gas 

7 leasing under the Gulf of Mexico Energy Security Act of 

8 2006 (title I of division C of Public Law 109–432; 43 

9 U.S.C. 1331 note). 

10 TITLE III—EQUITABLE SHARING 

11 OF OUTER CONTINENTAL 

12 SHELF REVENUES 

13 SEC. 301. DISPOSITION OF OUTER CONTINENTAL SHELF 

14 REVENUES TO COASTAL STATES. 

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

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

17 (1) in the existing text— 

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

19 rentals,’’ and inserting the following: 

20 ‘‘(c) DISPOSITION OF REVENUE UNDER OLD

21 LEASES.—All rentals,’’; and 

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

23 amendment made by subparagraph (A) of this 

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

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1 serting ‘‘in the period beginning June 5, 1950, 

2 and ending on the date of enactment of the Off3 shore Energy and Jobs Act’’; 

4 (2) by adding after subsection (c) (as so des5 ignated) the following: 

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

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

8 includes a territory of the United States. 

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

10 leasing revenues’— 

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

12 States as bonuses, rents, and royalties under 

13 leases for oil and gas, wind, tidal, or other en14 ergy exploration, development, and production 

15 on new areas of the outer Continental Shelf that 

16 are authorized to be made available for leasing 

17 as a result of enactment of the Offshore Energy 

18 and Jobs Act and leasing under that Act; and 

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

20 the United States under any lease of an area lo21 cated in the boundaries of the Central Gulf of 

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1 cluding a lease issued before, on, or after such 

2 date of enactment.’’; and 

3 (3) by inserting before subsection (c) (as so des4 ignated) the following: 

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

6 COASTAL STATES.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (2), of the amount of new leasing revenues re9 ceived by the United States each fiscal year, 37.5 per10 cent shall be allocated and paid in accordance with 

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

12 with respect to the leases under which those revenues 

13 are received by the United States. 

14 ‘‘(2) PHASE-IN.— 

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

16 subparagraph (B), paragraph (1) shall be ap17 plied— 

18 ‘‘(i) with respect to new leasing reve19 nues under leases awarded under the first 

20 leasing program under section 18(a) that 

21 takes effect after the date of enactment of the 

22 Offshore Energy and Jobs Act, by sub23 stituting ‘12.5 percent’ for ‘37.5 percent’; 

24 and 


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1 ‘‘(ii) with respect to new leasing reve2 nues under leases awarded under the second 

3 leasing program under section 18(a) that 

4 takes effect after the date of enactment of the 

5 Offshore Energy and Jobs Act, by sub6 stituting ‘25 percent’ for ‘37.5 percent’. 

7 ‘‘(B) EXEMPTED LEASE SALES.—This para8 graph shall not apply with respect to any lease 

9 issued under title II of the Offshore Energy and 

10 Jobs Act. 

11 ‘‘(b) ALLOCATION OF PAYMENTS.— 

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

13 revenues received by the United States with respect to 

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

15 States in accordance with this subsection each fiscal 

16 year shall be allocated among and paid to coastal 

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

18 in amounts that are inversely proportional to the re19 spective distances between the point on the coastline 

20 of each such State that is closest to the geographic 

21 center of the lease tract, as determined by the Sec22 retary. 

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

24 amount allocated to a coastal State under paragraph 


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

2 be— 

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

4 the nearest State to the geographic center of the 

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

6 amounts allocated with respect to the leased 

7 tract; 

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

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

10 percent, of the total amounts allocated with re11 spect to the leased tract; and 

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

13 the only coastal State within 200 miles of a least 

14 tract, 100 percent of the total amounts allocated 

15 with respect to the leased tract. 

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

17 coastal State under this subsection— 

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

19 without further appropriation; 

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

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

22 amounts available to the coastal State under this 

23 Act; and 

24 ‘‘(D) shall be distributed in the fiscal year 

25 following receipt. 


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1 ‘‘(4) USE OF FUNDS.— 

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

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

4 allocated and paid to it under this subsection for 

5 any purpose as determined by the laws of that 

6 State. 

7 ‘‘(B) RESTRICTION ON USE FOR MATCH8 ING.—Funds allocated and paid to a coastal 

9 State under this subsection may not be used as 

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

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

12 the amendment made by this section shall not affect the ap13 plication of section 105 of the Gulf of Mexico Energy Secu14 rity Act of 2006 (title I of division C of Public Law 109– 

15 432; (43 U.S.C. 1331 note)), as in effect before the enact16 ment of this Act, with respect to revenues received by the 

17 United States under oil and gas leases issued for tracts lo18 cated in the Western and Central Gulf of Mexico Outer Con19 tinental Shelf Planning Areas, including such leases issued 

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


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1 TITLE IV—REORGANIZATION OF 

2 MINERALS MANAGEMENT 

3 AGENCIES OF THE DEPART4 MENT OF THE INTERIOR 

5 SEC. 401. ESTABLISHMENT OF UNDER SECRETARY FOR EN6 ERGY, LANDS, AND MINERALS AND ASSIST7 ANT SECRETARY OF OCEAN ENERGY AND 

8 SAFETY. 

9 There shall be in the Department of the Interior— 

10 (1) an Under Secretary for Energy, Lands, and 

11 Minerals, who shall— 

12 (A) be appointed by the President, by and 

13 with the advise and consent of the Senate; 

14 (B) report to the Secretary of the Interior 

15 or, if directed by the Secretary, to the Deputy 

16 Secretary of the Interior; 

17 (C) be paid at the rate payable for level III 

18 of the Executive Schedule; and 

19 (D) be responsible for— 

20 (i) the safe and responsible develop21 ment of our energy and mineral resources 

22 on Federal lands in appropriate accordance 

23 with United States energy demands; and 

24 (ii) ensuring multiple-use missions of 

25 the Department of the Interior that promote 


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1 the safe and sustained development of en2 ergy and minerals resources on public lands 

3 (as that term is defined in the Federal 

4 Land Policy and Management Act of 1976 

5 (43 U.S.C. 1701 et seq.)); 

6 (2) an Assistant Secretary of Ocean Energy and 

7 Safety, who shall— 

8 (A) be appointed by the President, by and 

9 with the advise and consent of the Senate; 

10 (B) report to the Under Secretary for En11 ergy, Lands, and Minerals; 

12 (C) be paid at the rate payable for level IV 

13 of the Executive Schedule; and 

14 (D) be responsible for ensuring safe and ef15 ficient development of energy and minerals on 

16 the Outer Continental Shelf of the United States; 

17 and 

18 (3) an Assistant Secretary of Land and Minerals 

19 Management, who shall— 

20 (A) be appointed by the President, by and 

21 with the advise and consent of the Senate; 

22 (B) report to the Under Secretary for En23 ergy, Lands, and Minerals; 

24 (C) be paid at the rate payable for level IV 

25 of the Executive Schedule; and 


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1 (D) be responsible for ensuring safe and ef2 ficient development of energy and minerals on 

3 public lands and other Federal onshore lands 

4 under the jurisdiction of the Department of the 

5 Interior, including implementation of the Min6 eral Leasing Act (30 U.S.C. 181 et seq.) and the 

7 Surface Mining Control and Reclamation Act 

8 (30 U.S.C. 1201 et seq.) and administration of 

9 the Office of Surface Mining. 

10 SEC. 402. BUREAU OF OCEAN ENERGY. 

11 (a) ESTABLISHMENT.—There is established in the De12 partment of the Interior a Bureau of Ocean Energy (re13 ferred to in this section as the ‘‘Bureau’’), which shall— 

14 (1) be headed by a Director of Ocean Energy (re15 ferred to in this section as the ‘‘Director’’); and 

16 (2) be administered under the direction of the 

17 Assistant Secretary of Ocean Energy and Safety. 

18 (b) DIRECTOR.— 

19 (1) APPOINTMENT.—The Director shall be ap20 pointed by the Secretary of the Interior. 

21 (2) COMPENSATION.—The Director shall be com22 pensated at the rate provided for level V of the Execu23 tive Schedule under section 5316 of title 5, United 

24 States Code. 

25 (c) DUTIES.— 


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1 (1) IN GENERAL.—The Secretary of the Interior 

2 shall carry out through the Bureau all functions, 

3 powers, and duties vested in the Secretary relating to 

4 the administration of a comprehensive program of off5 shore mineral and renewable energy resources man6 agement. 

7 (2) SPECIFIC AUTHORITIES.—The Director shall 

8 promulgate and implement regulations— 

9 (A) for the proper issuance of leases for the 

10 exploration, development, and production of non11 renewable and renewable energy and mineral re12 sources on the Outer Continental Shelf; 

13 (B) relating to resource identification, ac14 cess, evaluation, and utilization; 

15 (C) for development of leasing plans, lease 

16 sales, and issuance of leases for such resources; 

17 and 

18 (D) regarding issuance of environmental 

19 impact statements related to leasing and post 

20 leasing activities including exploration, develop21 ment, and production, and the use of third party 

22 contracting for necessary environmental analysis 

23 for the development of such resources. 


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1 (3) LIMITATION.—The Secretary shall not carry 

2 out through the Bureau any function, power, or duty 

3 that is— 

4 (A) required by section 403 to be carried 

5 out through the Ocean Energy Safety Service; or 

6 (B) required by section 404 to be carried 

7 out through the Office of Natural Resources Rev8 enue. 

9 (d) RESPONSIBILITIES OF LAND MANAGEMENT AGEN10 CIES.—Nothing in this section shall affect the authorities 

11 of the Bureau of Land Management under the Federal Land 

12 Policy and Management Act of 1976 (43 U.S.C. 1701 et 

13 seq.) or of the Forest Service under the National Forest 

14 Management Act of 1976 (Public Law 94–588). 

15 SEC. 403. OCEAN ENERGY SAFETY SERVICE. 

16 (a) ESTABLISHMENT.—There is established in the De17 partment of the Interior an Ocean Energy Safety Service 

18 (referred to in this section as the ‘‘Service’’), which shall— 

19 (1) be headed by a Director of Energy Safety (re20 ferred to in this section as the ‘‘Director’’); and 

21 (2) be administered under the direction of the 

22 Assistant Secretary of Ocean Energy and Safety. 

23 (b) DIRECTOR.— 

24 (1) APPOINTMENT.—The Director shall be ap25 pointed by the Secretary of the Interior. 


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1 (2) COMPENSATION.—The Director shall be com2 pensated at the rate provided for level V of the Execu3 tive Schedule under section 5316 of title 5, United 

4 States Code. 

5 (c) DUTIES.— 

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

7 shall carry out through the Service all functions, pow8 ers, and duties vested in the Secretary relating to the 

9 administration of safety and environmental enforce10 ment activities related to offshore mineral and renew11 able energy resources on the Outer Continental Shelf 

12 pursuant to the Outer Continental Shelf Lands Act 

13 (43 U.S.C. 1331 et seq.) including the authority to de14 velop, promulgate, and enforce regulations to ensure 

15 the safe and sound exploration, development, and pro16 duction of mineral and renewable energy resources on 

17 the Outer Continental Shelf in a timely fashion. 

18 (2) SPECIFIC AUTHORITIES.—The Director shall 

19 be responsible for all safety activities related to explo20 ration and development of renewable and mineral re21 sources on the Outer Continental Shelf, including— 

22 (A) exploration, development, production, 

23 and ongoing inspections of infrastructure; 

24 (B) the suspending or prohibiting, on a 

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1 cluding production under leases held on the 

2 Outer Continental Shelf, in accordance with sec3 tion 5(a)(1) of the Outer Continental Shelf 

4 Lands Act (43 U.S.C. 1334(a)(1)); 

5 (C) cancelling any lease, permit, or right-of6 way on the Outer Continental Shelf, in accord7 ance with section 5(a)(2) of the Outer Conti8 nental Shelf Lands Act (43 U.S.C. 1334(a)(2)); 

9 (D) compelling compliance with applicable 

10 Federal laws and regulations relating to worker 

11 safety and other matters; 

12 (E) requiring comprehensive safety and en13 vironmental management programs for persons 

14 engaged in activities connected with the explo15 ration, development, and production of mineral 

16 or renewable energy resources; 

17 (F) developing and implementing regula18 tions for Federal employees to carry out any in19 spection or investigation to ascertain compliance 

20 with applicable regulations, including health, 

21 safety, or environmental regulations; 

22 (G) implementing the Offshore Technology 

23 Research and Risk Assessment Program under 

24 section 21 of the Outer Continental Shelf Lands 

25 Act (43 U.S.C. 1347); 


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1 (H) summoning witnesses and directing the 

2 production of evidence; 

3 (I) levying fines and penalties and disquali4 fying operators; 

5 (J) carrying out any safety, response, and 

6 removal preparedness functions; and 

7 (K) the processing of permits, exploration 

8 plans, development plans. 

9 (d) EMPLOYEES.— 

10 (1) IN GENERAL.—The Secretary shall ensure 

11 that the inspection force of the Bureau consists of 

12 qualified, trained employees who meet qualification 

13 requirements and adhere to the highest professional 

14 and ethical standards. 

15 (2) QUALIFICATIONS.—The qualification require16 ments referred to in paragraph (1)— 

17 (A) shall be determined by the Secretary, 

18 subject to subparagraph (B); and 

19 (B) shall include— 

20 (i) three years of practical experience 

21 in oil and gas exploration, development, or 

22 production; or 

23 (ii) a degree in an appropriate field of 

24 engineering from an accredited institution 

25 of higher learning. 


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1 (3) ASSIGNMENT.—In assigning oil and gas in2 spectors to the inspection and investigation of indi3 vidual operations, the Secretary shall give due consid4 eration to the extent possible to their previous experi5 ence in the particular type of oil and gas operation 

6 in which such inspections are to be made. 

7 (4) BACKGROUND CHECKS.—The Director shall 

8 require that an individual to be hired as an inspec9 tion officer undergo an employment investigation (in10 cluding a criminal history record check). 

11 (5) LANGUAGE REQUIREMENTS.—Individuals 

12 hired as inspectors must be able to read, speak, and 

13 write English well enough to— 

14 (A) carry out written and oral instructions 

15 regarding the proper performance of inspection 

16 duties; and 

17 (B) write inspection reports and statements 

18 and log entries in the English language. 

19 (6) VETERANS PREFERENCE.—The Director shall 

20 provide a preference for the hiring of an individual 

21 as a inspection officer if the individual is a member 

22 or former member of the Armed Forces and is enti23 tled, under statute, to retired, retirement, or retainer 

24 pay on account of service as a member of the Armed 

25 Forces. 


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1 (7) ANNUAL PROFICIENCY REVIEW.— 

2 (A) ANNUAL PROFICIENCY REVIEW.—The 

3 Director shall provide that an annual evaluation 

4 of each individual assigned inspection duties is 

5 conducted and documented. 

6 (B) CONTINUATION OF EMPLOYMENT.—An 

7 individual employed as an inspector may not 

8 continue to be employed in that capacity unless 

9 the evaluation demonstrates that the indi10 vidual— 

11 (i) continues to meet all qualifications 

12 and standards; 

13 (ii) has a satisfactory record of per14 formance and attention to duty based on the 

15 standards and requirements in the inspec16 tion program; and 

17 (iii) demonstrates the current knowl18 edge and skills necessary to courteously, 

19 vigilantly, and effectively perform inspec20 tion functions. 

21 (8) LIMITATION ON RIGHT TO STRIKE.—Any in22 dividual that conducts permitting or inspections 

23 under this section may not participate in a strike, or 

24 assert the right to strike. 


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1 (9) PERSONNEL AUTHORITY.—Notwithstanding 

2 any other provision of law, the Director may employ, 

3 appoint, discipline and terminate for cause, and fix 

4 the compensation, terms, and conditions of employ5 ment of Federal service for individuals as the employ6 ees of the Service in order to restore and maintain the 

7 trust of the people of the United States in the ac8 countability of the management of our Nation’s en9 ergy safety program. 

10 (10) TRAINING ACADEMY.— 

11 (A) IN GENERAL.—The Secretary shall es12 tablish and maintain a National Offshore En13 ergy Safety Academy (referred to in this para14 graph as the ‘‘Academy’’) as an agency of the 

15 Ocean Energy Safety Service. 

16 (B) FUNCTIONS OF ACADEMY.—The Sec17 retary, through the Academy, shall be responsible 

18 for— 

19 (i) the initial and continued training 

20 of both newly hired and experienced offshore 

21 oil and gas inspectors in all aspects of 

22 health, safety, environmental, and oper23 ational inspections; 

24 (ii) the training of technical support 

25 personnel of the Bureau; 


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1 (iii) any other training programs for 

2 offshore oil and gas inspectors, Bureau per3 sonnel, Department personnel, or other per4 sons as the Secretary shall designate; and 

5 (iv) certification of the successful com6 pletion of training programs for newly 

7 hired and experienced offshore oil and gas 

8 inspectors. 

9 (C) COOPERATIVE AGREEMENTS.— 

10 (i) IN GENERAL.—In performing func11 tions under this paragraph, and subject to 

12 clause (ii), the Secretary may enter into co13 operative educational and training agree14 ments with educational institutions, related 

15 Federal academies, other Federal agencies, 

16 State governments, safety training firms, 

17 and oil and gas operators and related in18 dustries. 

19 (ii) TRAINING REQUIREMENT.—Such 

20 training shall be conducted by the Academy 

21 in accordance with curriculum needs and 

22 assignment of instructional personnel estab23 lished by the Secretary. 

24 (11) USE OF DEPARTMENT PERSONNEL.—In per25 forming functions under this subsection, the Secretary 


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1 shall use, to the extent practicable, the facilities and 

2 personnel of the Department of the Interior. The Sec3 retary may appoint or assign to the Academy such of4 ficers and employees as the Secretary considers nec5 essary for the performance of the duties and functions 

6 of the Academy. 

7 (12) ADDITIONAL TRAINING PROGRAMS.— 

8 (A) IN GENERAL.—The Secretary shall work 

9 with appropriate educational institutions, opera10 tors, and representatives of oil and gas workers 

11 to develop and maintain adequate programs 

12 with educational institutions and oil and gas op13 erators that are designed— 

14 (i) to enable persons to qualify for po15 sitions in the administration of this Act; 

16 and 

17 (ii) to provide for the continuing edu18 cation of inspectors or other appropriate 

19 Department of the Interior personnel. 

20 (B) FINANCIAL AND TECHNICAL ASSIST21 ANCE.—The Secretary may provide financial 

22 and technical assistance to educational institu23 tions in carrying out this paragraph. 

24 (e) LIMITATION.—The Secretary shall not carry out 

25 through the Service any function, power, or duty that is— 


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1 (1) required by section 402 to be carried out 

2 through Bureau of Ocean Energy; or 

3 (2) required by section 404 to be carried out 

4 through the Office of Natural Resources Revenue. 

5 SEC. 404. OFFICE OF NATURAL RESOURCES REVENUE. 

6 (a) ESTABLISHMENT.—There is established in the De7 partment of the Interior an Office of Natural Resources 

8 Revenue (referred to in this section as the ‘‘Office’’) to be 

9 headed by a Director of Natural Resources Revenue (re10 ferred to in this section as the ‘‘Director’’). 

11 (b) APPOINTMENT AND COMPENSATION.— 

12 (1) IN GENERAL.—The Director shall be ap13 pointed by the Secretary of the Interior. 

14 (2) COMPENSATION.—The Director shall be com15 pensated at the rate provided for Level V of the Exec16 utive Schedule under section 5316 of title 5, United 

17 States Code. 

18 (c) DUTIES.— 

19 (1) IN GENERAL.—The Secretary of the Interior 

20 shall carry out, through the Office, all functions, pow21 ers, and duties vested in the Secretary and relating 

22 to the administration of offshore royalty and revenue 

23 management functions. 

24 (2) SPECIFIC AUTHORITIES.—The Secretary 

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1 ers, and duties previously assigned to the Minerals 

2 Management Service (including the authority to de3 velop, promulgate, and enforce regulations) regarding 

4 offshore royalty and revenue collection; royalty and 

5 revenue distribution; auditing and compliance; inves6 tigation and enforcement of royalty and revenue regu7 lations; and asset management for onshore and off8 shore activities. 

9 (d) LIMITATION.—The Secretary shall not carry out 

10 through the Office any function, power, or duty that is— 

11 (1) required by section 402 to be carried out 

12 through Bureau of Ocean Energy; or 

13 (2) required by section 403 to be carried out 

14 through the Ocean Energy Safety Service. 

15 SEC. 405. ETHICS AND DRUG TESTING. 

16 (a) CERTIFICATION.—The Secretary of the Interior 

17 shall certify annually that all Department of the Interior 

18 officers and employees having regular, direct contact with 

19 lessees, contractors, concessionaires, and other businesses in20 terested before the Government as a function of their official 

21 duties, or conducting investigations, issuing permits, or re22 sponsible for oversight of energy programs, are in full com23 pliance with all Federal employee ethics laws and regula24 tions under the Ethics in Government Act of 1978 (5 U.S.C. 


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1 App.) and part 2635 of title 5, Code of Federal Regulations, 

2 and all guidance issued under subsection (c). 

3 (b) DRUG TESTING.—The Secretary shall conduct a 

4 random drug testing program of all Department of the Inte5 rior personnel referred to in subsection (a). 

6 (c) GUIDANCE.—Not later than 90 days after the date 

7 of enactment of this Act, the Secretary shall issue supple8 mentary ethics and drug testing guidance for the employees 

9 for which certification is required under subsection (a). The 

10 Secretary shall update the supplementary ethics guidance 

11 not less than once every 3 years thereafter. 

12 SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT SERV13 ICE. 

14 (a) ABOLISHMENT.—The Minerals Management Serv15 ice is abolished. 

16 (b) COMPLETED ADMINISTRATIVE ACTIONS.— 

17 (1) IN GENERAL.—Completed administrative ac18 tions of the Minerals Management Service shall not be 

19 affected by the enactment of this Act, but shall con20 tinue in effect according to their terms until amend21 ed, modified, superseded, terminated, set aside, or re22 voked in accordance with law by an officer of the 

23 United States or a court of competent jurisdiction, or 

24 by operation of law. 


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1 (2) COMPLETED ADMINISTRATIVE ACTION DE2 FINED.—For purposes of paragraph (1), the term 

3 ‘‘completed administrative action’’ includes orders, 

4 determinations, memoranda of understanding, memo5 randa of agreements, rules, regulations, personnel ac6 tions, permits, agreements, grants, contracts, certifi7 cates, licenses, registrations, and privileges. 

8 (c) PENDING PROCEEDINGS.—Subject to the authority 

9 of the Secretary of the Interior and the officers of the De10 partment of the Interior under this Act— 

11 (1) pending proceedings in the Minerals Manage12 ment Service, including notices of proposed rule13 making, and applications for licenses, permits, cer14 tificates, grants, and financial assistance, shall con15 tinue, notwithstanding the enactment of this Act or 

16 the vesting of functions of the Service in another 

17 agency, unless discontinued or modified under the 

18 same terms and conditions and to the same extent 

19 that such discontinuance or modification could have 

20 occurred if this Act had not been enacted; and 

21 (2) orders issued in such proceedings, and ap22 peals therefrom, and payments made pursuant to 

23 such orders, shall issue in the same manner and on 

24 the same terms as if this Act had not been enacted, 

25 and any such orders shall continue in effect until 


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1 amended, modified, superseded, terminated, set aside, 

2 or revoked by an officer of the United States or a 

3 court of competent jurisdiction, or by operation of 

4 law. 

5 (d) PENDING CIVIL ACTIONS.—Subject to the authority 

6 of the Secretary of the Interior or any officer of the Depart7 ment of the Interior under this Act, pending civil actions 

8 shall continue notwithstanding the enactment of this Act, 

9 and in such civil actions, proceedings shall be had, appeals 

10 taken, and judgments rendered and enforced in the same 

11 manner and with the same effect as if such enactment had 

12 not occurred. 

13 (e) REFERENCES.—References relating to the Minerals 

14 Management Service in statutes, Executive orders, rules, 

15 regulations, directives, or delegations of authority that pre16 cede the effective date of this Act are deemed to refer, as 

17 appropriate, to the Department, to its officers, employees, 

18 or agents, or to its corresponding organizational units or 

19 functions. Statutory reporting requirements that applied in 

20 relation to the Minerals Management Service immediately 

21 before the effective date of this Act shall continue to apply. 

22 SEC. 407. CONFORMING AMENDMENTS TO EXECUTIVE 

23 SCHEDULE PAY RATES. 

24 (a) UNDER SECRETARY FOR ENERGY, LANDS, AND

25 MINERALS.—Section 5314 of title 5, United States Code, 


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1 is amended by inserting after the item relating to ‘‘Under 

2 Secretaries of the Treasury (3).’’ the following: 

3 ‘‘Under Secretary for Energy, Lands, and Min4 erals, Department of the Interior.’’. 

5 (b) ASSISTANT SECRETARIES.—Section 5315 of title 5, 

6 United States Code, is amended by striking ‘‘Assistant Sec7 retaries of the Interior (6).’’ and inserting the following: 

8 ‘‘Assistant Secretaries, Department of the Inte9 rior (7).’’. 

10 (c) DIRECTORS.—Section 5316 of title 5, United States 

11 Code, is amended by striking ‘‘Director, Bureau of Mines, 

12 Department of the Interior.’’ and inserting the following 

13 new items: 

14 ‘‘Director, Bureau of Ocean Energy, Department 

15 of the Interior. 

16 ‘‘Director, Ocean Energy Safety Service, Depart17 ment of the Interior. 

18 ‘‘Director, Office of Natural Resources Revenue, 

19 Department of the Interior.’’. 

20 SEC. 408. OUTER CONTINENTAL SHELF ENERGY SAFETY AD21 VISORY BOARD. 

22 (a) ESTABLISHMENT.—The Secretary of the Interior 

23 shall establish, under the Federal Advisory Committee Act, 

24 an Outer Continental Shelf Energy Safety Advisory Board 

25 (referred to in this section as the ‘‘Board’’)— 


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1 (1) to provide the Secretary and the Directors es2 tablished by this Act with independent scientific and 

3 technical advice on safe, responsible, and timely min4 eral and renewable energy exploration, development, 

5 and production activities; and 

6 (2) to review operations of the National Offshore 

7 Energy Health and Safety Academy established under 

8 section 403(d), including submitting to the Secretary 

9 recommendations of curriculum to ensure training 

10 scientific and technical advancements. 

11 (b) MEMBERSHIP.— 

12 (1) SIZE.—The Board shall consist of not more 

13 than 11 members, who— 

14 (A) shall be appointed by the Secretary 

15 based on their expertise in oil and gas drilling, 

16 well design, operations, well containment and oil 

17 spill response; and 

18 (B) must have significant scientific, engi19 neering, management, and other credentials and 

20 a history of working in the field related to safe 

21 energy exploration, development, and production 

22 activities. 

23 (2) CONSULTATION AND NOMINATIONS.—The Sec24 retary shall consult with the National Academy of 

25 Sciences and the National Academy of Engineering to 


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1 identify potential candidates for the Board and shall 

2 take nominations from the public. 

3 (3) TERM.—The Secretary shall appoint Board 

4 members to staggered terms of not more than 4 years, 

5 and shall not appoint a member for more than 2 con6 secutive terms. 

7 (4) BALANCE.—In appointing members to the 

8 Board, the Secretary shall ensure a balanced rep9 resentation of industry and research interests. 

10 (c) CHAIR.—The Secretary shall appoint the Chair for 

11 the Board from among its members. 

12 (d) MEETINGS.—The Board shall meet not less than 

13 3 times per year and shall host, at least once per year, a 

14 public forum to review and assess the overall energy safety 

15 performance of Outer Continental Shelf mineral and renew16 able energy resource activities. 

17 (e) OFFSHORE DRILLING SAFETY ASSESSMENTS AND

18 RECOMMENDATIONS.—As part of its duties under this sec19 tion, the Board shall, by not later than 180 days after the 

20 date of enactment of this section and every 5 years there21 after, submit to the Secretary a report that— 

22 (1) assesses offshore oil and gas well control tech23 nologies, practices, voluntary standards, and regula24 tions in the United States and elsewhere; and 


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1 (2) as appropriate, recommends modifications to 

2 the regulations issued under this Act to ensure ade3 quate protection of safety and the environment, in4 cluding recommendations on how to reduce regula5 tions and administrative actions that are duplicative 

6 or unnecessary. 

7 (f) REPORTS.—Reports of the Board shall be submitted 

8 by the Board to the Committee on Natural Resources of the 

9 House or Representatives and the Committee on Energy 

10 and Natural Resources of the Senate and made available 

11 to the public in electronically accessible form. 

12 (g) TRAVEL EXPENSES.—Members of the Board, other 

13 than full-time employees of the Federal Government, while 

14 attending meeting of the Board or while otherwise serving 

15 at the request of the Secretary or the Director while serving 

16 away from their homes or regular places of business, may 

17 be allowed travel expenses, including per diem in lieu of 

18 subsistence, as authorized by section 5703 of title 5, United 

19 States Code, for individuals in the Government serving 

20 without pay. 

21 SEC. 409. OUTER CONTINENTAL SHELF INSPECTION FEES. 

22 Section 22 of the Outer Continental Shelf Lands Act 

23 (43 U.S.C. 1348) is amended by adding at the end of the 

24 section the following: 

25 ‘‘(g) INSPECTION FEES.— 


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1 ‘‘(1) ESTABLISHMENT.—The Secretary of the In2 terior shall collect from the operators of facilities sub3 ject to inspection under subsection (c) non-refundable 

4 fees for such inspections— 

5 ‘‘(A) at an aggregate level equal to the 

6 amount necessary to offset the annual expenses of 

7 inspections of outer Continental Shelf facilities 

8 (including mobile offshore drilling units) by the 

9 Department of the Interior; and 

10 ‘‘(B) using a schedule that reflects the dif11 ferences in complexity among the classes of fa12 cilities to be inspected. 

13 ‘‘(2) OCEAN ENERGY SAFETY FUND.—There is es14 tablished in the Treasury a fund, to be known as the 

15 ‘Ocean Energy Enforcement Fund’ (referred to in this 

16 subsection as the ‘Fund’), into which shall be depos17 ited all amounts collected as fees under paragraph (1) 

18 and which shall be available as provided under para19 graph (3). 

20 ‘‘(3) AVAILABILITY OF FEES.— 

21 ‘‘(A) IN GENERAL.—Notwithstanding sec22 tion 3302 of title 31, United States Code, all 

23 amounts deposited in the Fund— 

24 ‘‘(i) shall be credited as offsetting col25 lections; 


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1 ‘‘(ii) shall be available for expenditure 

2 for purposes of carrying out inspections of 

3 outer Continental Shelf facilities (including 

4 mobile offshore drilling units) and the ad5 ministration of the inspection program 

6 under this section; 

7 ‘‘(iii) shall be available only to the ex8 tent provided for in advance in an appro9 priations Act; and 

10 ‘‘(iv) shall remain available until ex11 pended. 

12 ‘‘(B) USE FOR FIELD OFFICES.—Not less 

13 than 75 percent of amounts in the Fund may be 

14 appropriated for use only for the respective De15 partment of the Interior field offices where the 

16 amounts were originally assessed as fees. 

17 ‘‘(4) INITIAL FEES.—Fees shall be established 

18 under this subsection for the fiscal year in which this 

19 subsection takes effect and the subsequent 10 years, 

20 and shall not be raised without advise and consent of 

21 the Congress, except as determined by the Secretary to 

22 be appropriate as an adjustment equal to the percent23 age by which the Consumer Price Index for the month 

24 of June of the calendar year preceding the adjustment 

25 exceeds the Consumer Price Index for the month of 


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1 June of the calendar year in which the claim was de2 termined or last adjusted. 

3 ‘‘(5) ANNUAL FEES.—Annual fees shall be col4 lected under this subsection for facilities that are 

5 above the waterline, excluding drilling rigs, and are 

6 in place at the start of the fiscal year. Fees for fiscal 

7 year 2013 shall be— 

8 ‘‘(A) $10,500 for facilities with no wells, but 

9 with processing equipment or gathering lines; 

10 ‘‘(B) $17,000 for facilities with 1 to 10 

11 wells, with any combination of active or inactive 

12 wells; and 

13 ‘‘(C) $31,500 for facilities with more than 

14 10 wells, with any combination of active or inac15 tive wells. 

16 ‘‘(6) FEES FOR DRILLING RIGS.—Fees for drill17 ing rigs shall be assessed under this subsection for all 

18 inspections completed in fiscal years 2013 through 

19 2022. Fees for fiscal year 2013 shall be— 

20 ‘‘(A) $30,500 per inspection for rigs oper21 ating in water depths of 1,000 feet or more; and 

22 ‘‘(B) $16,700 per inspection for rigs oper23 ating in water depths of less than 1,000 feet. 

24 ‘‘(7) BILLING.—The Secretary shall bill des25 ignated operators under paragraph (5) within 60 


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1 days after the date of the inspection, with payment 

2 required within 30 days of billing. The Secretary 

3 shall bill designated operators under paragraph (6) 

4 within 30 days of the end of the month in which the 

5 inspection occurred, with payment required within 30 

6 days after billing. 

7 ‘‘(8) SUNSET.—No fee may be collected under 

8 this subsection for any fiscal year after fiscal year 

9 2022. 

10 ‘‘(9) ANNUAL REPORTS.— 

11 ‘‘(A) IN GENERAL.—Not later than 60 days 

12 after the end of each fiscal year beginning with 

13 fiscal year 2013, the Secretary shall submit to 

14 the Committee on Energy and Natural Resources 

15 of the Senate and the Committee on Natural Re16 sources of the House of Representatives a report 

17 on the operation of the Fund during the fiscal 

18 year. 

19 ‘‘(B) CONTENTS.—Each report shall in20 clude, for the fiscal year covered by the report, 

21 the following: 

22 ‘‘(i) A statement of the amounts depos23 ited into the Fund. 

24 ‘‘(ii) A description of the expenditures 

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1 cluding the purpose of the expenditures and 

2 the additional hiring of personnel. 

3 ‘‘(iii) A statement of the balance re4 maining in the Fund at the end of the fiscal 

5 year. 

6 ‘‘(iv) An accounting of pace of permit 

7 approvals. 

8 ‘‘(v) If fee increases are proposed after 

9 the initial 10-year period referred to in 

10 paragraph (5), a proper accounting of the 

11 potential adverse economic impacts such fee 

12 increases will have on offshore economic ac13 tivity and overall production, conducted by 

14 the Secretary. 

15 ‘‘(vi) Recommendations to increase the 

16 efficacy and efficiency of offshore inspec17 tions. 

18 ‘‘(vii) Any corrective actions levied 

19 upon offshore inspectors as a result of any 

20 form of misconduct.’’. 


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1 TITLE V—UNITED STATES 

2 TERRITORIES 

3 SEC. 501. APPLICATION OF OUTER CONTINENTAL SHELF 

4 LANDS ACT WITH RESPECT TO TERRITORIES 

5 OF THE UNITED STATES. 

6 Section 2 of the Outer Continental Shelf Lands Act 

7 (43 U.S.C. 1331) is amended— 

8 (1) in paragraph (a), by inserting after ‘‘con9 trol’’ the following: ‘‘or lying within the United States 

10 exclusive economic zone and the Continental Shelf ad11 jacent to any territory of the United States’’; 

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

13 semicolon at the end; 

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

15 the end and inserting ‘‘; and’’; and 

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

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

18 United States.’’. 


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Union Calendar No. 90 

113TH CONGRESS 

1ST SESSION H. R. 2231 

[Report No. 113–125] 

A BILL 

To amend the Outer Continental Shelf Lands Act 

separate agencies, and for other purposes. Minerals Management Service into distinct and the reorganization of the functions of the former revenue sharing for all coastal States, implement the Outer Continental Shelf, provide for equitable to increase energy exploration and production on 

JUNE 24, 2013 

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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