I 

113TH CONGRESS 

1ST SESSION H. R. 2231 

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 

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. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Offshore Energy and 

3 Jobs Act’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 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—ENHANCING THE 2012–2017 FIVE-YEAR OUTER 

CONTINENTAL SHELF OIL AND GAS LEASING PROGRAM 

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. 

TITLE V—UNITED STATES TERRITORIES 

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


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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 

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

8 the following: 

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

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

12 least 50 percent of the available unleased acreage 

13 within each outer Continental Shelf planning area 

14 considered to have the largest undiscovered, tech15 nically recoverable oil and gas resources (on a total 

16 btu basis) based upon the most recent national geo17 logic assessment of the outer Continental Shelf, with 

18 an emphasis on offering the most geologically pro19 spective parts of 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 

24 represents that subdivision requests be made avail25 able for leasing. The Secretary may not remove such 


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1 a subdivision from the program until publication of 

2 the final program. 

3 ‘‘(C) In this paragraph the term ‘available un4 leased acreage’ means that portion of the outer Con5 tinental Shelf that is not under lease at the time of 

6 a proposed lease sale, and that has not otherwise 

7 been made unavailable for leasing by law. 

8 ‘‘(6)(A) In the 5-year oil and gas leasing pro9 gram, the Secretary shall make available for leasing 

10 any outer Continental Shelf planning areas that— 

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

12 2,500,000,000 barrels of oil; or 

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

14 7,500,000,000,000 cubic feet of natural gas. 

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

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

17 document entitled ‘Minerals Management Service 

18 Assessment of Undiscovered Technically Recoverable 

19 Oil and Gas Resources of the Nation’s Outer Conti20 nental Shelf, 2006’.’’. 

21 SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION 

22 GOAL. 

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

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


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1 ‘‘(b) DOMESTIC OIL AND NATURAL GAS PRODUC2 TION GOAL.—– 

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

4 and gas leasing program, and subject to paragraph 

5 (2), the Secretary shall determine a domestic stra6 tegic production goal for the development of oil and 

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

8 shall be— 

9 ‘‘(A) the best estimate of the possible in10 crease in domestic production of oil and natural 

11 gas from the outer Continental Shelf; 

12 ‘‘(B) focused on meeting domestic demand 

13 for oil and natural gas and reducing the de14 pendence of the United States on foreign en15 ergy; and 

16 ‘‘(C) focused on the production increases 

17 achieved by the leasing program at the end of 

18 the 15-year period beginning on the effective 

19 date of the program. 

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

21 year oil and gas leasing program, the production 

22 goal referred to in paragraph (1) shall be an in23 crease by 2032 of— 

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

25 amount of oil produced per day; and 


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

2 feet in the amount of natural gas produced per 

3 day. 

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

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

6 for which the program applies, to the Committee on 

7 Natural Resources of the House of Representatives 

8 and the Committee on Energy and Natural Re9 sources of the Senate on the progress of the pro10 gram in meeting the production goal. The Secretary 

11 shall identify in the report projections for production 

12 and any problems with leasing, permitting, or pro13 duction that will prevent meeting the goal.’’. 

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

15 OIL AND GAS LEASING PROGRAM. 

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

17 shall— 

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

19 and submit to Congress a new proposed oil and gas 

20 leasing program under section 18 of the Outer Con21 tinental Shelf Lands Act (43 U.S.C. 1344) for the 

22 5-year period beginning on such date and ending 

23 July 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 

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

9 this Act. 

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

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

12 1344(d)(3)) is amended by striking ‘‘or after eighteen 

13 months following the date of enactment of this section, 

14 whichever first occurs,’’. 

15 TITLE II—ENHANCING THE 2012– 

16 2017 FIVE-YEAR OUTER CON17 TINENTAL SHELF OIL AND 

18 GAS LEASING PROGRAM 

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 inclusion 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 

3 than 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 

7 Defense, in consultation with the Secretary of the Interior, 

8 under the Memorandum of Agreement referred to in sec9 tion 205(b), issues a statement proposing deferral from 

10 a lease offering due to defense-related activities that are 

11 irreconcilable with mineral exploration and development, 

12 the Secretary of the Interior, in consultation with the Sec13 retary of Defense, shall make available in the same lease 

14 sale one other lease block in the Virginia lease sale plan15 ning area that is acceptable for oil and gas exploration 

16 and production in order to mitigate conflict. 

17 (c) BALANCING MILITARY AND ENERGY PRODUC18 TION GOALS.—In recognition that the Outer Continental 

19 Shelf oil and gas leasing program and the domestic energy 

20 resources produced therefrom are integral to national se21 curity, the Secretary of the Interior and the Secretary of 

22 Defense shall work jointly in implementing this section in 

23 order to ensure achievement of the following common 

24 goals: 


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1 (1) Preserving the ability of the Armed Forces 

2 of the United States to maintain an optimum state 

3 of readiness through their continued use of the 

4 Outer Continental Shelf. 

5 (2) Allowing effective exploration, development, 

6 and production of our Nation’s oil, gas, and renew7 able energy resources. 

8 (d) DEFINITIONS.—In this section: 

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

10 220’’ means such lease sale referred to in the Re11 quest for Comments on the Draft Proposed 5-Year 

12 Outer Continental Shelf (OCS) Oil and Gas Leasing 

13 Program for 2010–2015 and Notice of Intent To 

14 Prepare an Environmental Impact Statement (EIS) 

15 for the Proposed 5-Year Program published January 

16 21, 2009 (74 Fed. Reg. 3631). 

17 (2) VIRGINIA LEASE SALE PLANNING AREA.— 

18 The term ‘‘Virginia lease sale planning area’’ means 

19 the area of the outer Continental Shelf (as that term 

20 is defined in the Outer Continental Shelf Lands Act 

21 (33 U.S.C. 1331 et seq.)) that is bounded by— 

22 (A) a northern boundary consisting of a 

23 straight line extending from the northernmost 

24 point of Virginia’s seaward boundary to the 

25 point on the seaward boundary of the United 


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1 States exclusive economic zone located at 37 de2 grees 17 minutes 1 second North latitude, 71 

3 degrees 5 minutes 16 seconds West longitude; 

4 and 

5 (B) a southern boundary consisting of a 

6 straight line extending from the southernmost 

7 point of Virginia’s seaward boundary to the 

8 point on the seaward boundary of the United 

9 States exclusive economic zone located at 36 de10 grees 31 minutes 58 seconds North latitude, 71 

11 degrees 30 minutes 1 second West longitude. 

12 SEC. 202. SOUTH CAROLINA LEASE SALE. 

13 Notwithstanding inclusion of the South Atlantic 

14 Outer Continental Shelf Planning Area in the Final Outer 

15 Continental Shelf Oil & Gas Leasing Program 2012–2017, 

16 the Secretary of the Interior shall conduct a lease sale not 

17 later than 2 years after the date of the enactment of this 

18 Act for areas off the coast of South Carolina determined 

19 by the Secretary to have the most geologically promising 

20 hydrocarbon resources and constituting not less than 25 

21 percent of the leasable area within the South Carolina off22 shore administrative boundaries depicted in the notice en23 titled ‘‘Federal Outer Continental Shelf (OCS) Adminis24 trative Boundaries Extending from the Submerged Lands 

25 Act Boundary seaward to the Limit of the United States 


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1 Outer Continental Shelf’’, published January 3, 2006 (71 

2 Fed. Reg. 127). 

3 SEC. 203. SOUTHERN CALIFORNIA EXISTING INFRASTRUC4 TURE LEASE SALE. 

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

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

7 Santa Barbara/Ventura Basins of the Southern California 

8 OCS Planning Area as soon as practicable, but not later 

9 than December 31, 2014. 

10 (b) USE OF EXISTING STRUCTURES OR ONSHORE11 BASED DRILLING.—The Secretary of the Interior shall in12 clude in leases offered for sale under this lease sale such 

13 terms and conditions as are necessary to require that de14 velopment and production may occur only from offshore 

15 infrastructure in existence on the date of the enactment 

16 of this Act or from onshore-based, extended-reach drilling. 

17 SEC. 204. ENVIRONMENTAL IMPACT STATEMENT REQUIRE18 MENT. 

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

20 Secretary of the Interior shall prepare a multisale environ21 mental impact statement under section 102 of the Na22 tional Environmental Policy Act of 1969 (42 U.S.C. 4332) 

23 for all lease sales required under this title. 


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1 (b) ACTIONS TO BE CONSIDERED.—Notwithstanding 

2 section 102 of the National Environmental Policy Act of 

3 1969 (42 U.S.C. 4332), in such statement— 

4 (1) the Secretary is not required to identify 

5 nonleasing alternative courses of action or to analyze 

6 the environmental effects of such alternative courses 

7 of action; and 

8 (2) the Secretary shall only— 

9 (A) identify a preferred action for leasing 

10 and not more than one alternative leasing pro11 posal; and 

12 (B) analyze the environmental effects and 

13 potential mitigation measures for such pre14 ferred action and such alternative leasing pro15 posal. 

16 SEC. 205. NATIONAL DEFENSE. 

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

18 affect the existing authority of the Secretary of Defense, 

19 with the approval of the President, to designate national 

20 defense areas on the Outer Continental Shelf pursuant to 

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

22 (43 U.S.C. 1341(d)). 

23 (b) PROHIBITION ON CONFLICTS WITH MILITARY

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

25 development, or production of oil or natural gas on the 


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1 Outer Continental Shelf under a lease issued under this 

2 Act that would conflict with any military operation, as de3 termined in accordance with the Memorandum of Agree4 ment between the Department of Defense and the Depart5 ment of the Interior on Mutual Concerns on the Outer 

6 Continental Shelf signed July 20, 1983, and any revision 

7 or replacement for that agreement that is agreed to by 

8 the Secretary of Defense and the Secretary of the Interior 

9 after that date but before the date of issuance of the lease 

10 under which such exploration, development, or production 

11 is conducted. 

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

13 Nothing in this Act affects restrictions on oil and gas 

14 leasing under the Gulf of Mexico Energy Security Act of 

15 2006 (title I of division C of Public Law 109–432; 43 

16 U.S.C. 1331 note). 

17 TITLE III—EQUITABLE SHARING 

18 OF OUTER CONTINENTAL 

19 SHELF REVENUES 

20 SEC. 301. DISPOSITION OF OUTER CONTINENTAL SHELF 

21 REVENUES TO COASTAL STATES. 

22 (a) IN GENERAL.—Section 9 of the Outer Conti23 nental Shelf Lands Act (43 U.S.C. 1338) is amended— 

24 (1) in the existing text— 


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

2 rentals,’’ and inserting the following: 

3 ‘‘(c) DISPOSITION OF REVENUE UNDER OLD

4 LEASES.—All rentals,’’; and 

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

6 amendment made by subparagraph (A) of this 

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

8 June 5, 1950, to date, and thereafter’’ and in9 serting ‘‘in the period beginning June 5, 1950, 

10 and ending on the date of enactment of the Off11 shore Energy and Jobs Act’’; 

12 (2) by adding after subsection (c) (as so des13 ignated) the following: 

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

15 ‘‘(1) COASTAL STATE.—The term ‘coastal 

16 State’ includes a territory of the United States. 

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

18 leasing revenues’— 

19 ‘‘(A) means amounts received by the 

20 United States as bonuses, rents, and royalties 

21 under leases for oil and gas, wind, tidal, or 

22 other energy exploration, development, and pro23 duction on areas of the outer Continental Shelf 

24 that are authorized to be made available for 

25 leasing as a result of enactment of the Offshore 


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1 Energy and Jobs Act and leasing under that 

2 Act; and 

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

4 the United States under any lease of an area lo5 cated in the boundaries of the Central Gulf of 

6 Mexico and Western Gulf of Mexico Outer Con7 tinental Shelf Planning Areas on the date of en8 actment of the Offshore Energy and Jobs Act, 

9 including a lease issued before, on, or after 

10 such date of enactment.’’; and 

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

12 designated) the following: 

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

14 COASTAL STATES.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), of the amount of new leasing revenues re17 ceived by the United States each fiscal year, 37.5 

18 percent shall be allocated and paid in accordance 

19 with subsection (b) to coastal States that are af20 fected States with respect to the leases under which 

21 those revenues are received by the United States. 

22 ‘‘(2) PHASE-IN.— 

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

24 subparagraph (B), paragraph (1) shall be ap25 plied— 


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1 ‘‘(i) with respect to new leasing reve2 nues under leases awarded under the first 

3 leasing program under section 18(a) that 

4 takes effect after the date of enactment of 

5 the Offshore Energy and Jobs Act, by sub6 stituting ‘12.5 percent’ for ‘37.5 percent’; 

7 and 

8 ‘‘(ii) with respect to new leasing reve9 nues under leases awarded under the sec10 ond leasing program under section 18(a) 

11 that takes effect after the date of enact12 ment of the Offshore Energy and Jobs 

13 Act, by substituting ‘25 percent’ for ‘37.5 

14 percent’. 

15 ‘‘(B) EXEMPTED LEASE SALES.—This 

16 paragraph shall not apply with respect to any 

17 lease issued under title II of the Offshore En18 ergy and Jobs Act. 

19 ‘‘(b) ALLOCATION OF PAYMENTS.— 

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

21 revenues received by the United States with respect 

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

23 coastal States in accordance with this subsection 

24 each fiscal year shall be allocated among and paid 

25 to coastal States that are within 200 miles of the 


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1 leased tract, in amounts that are inversely propor2 tional to the respective distances between the point 

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

4 the geographic center of the lease tract, as deter5 mined by the Secretary. 

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

7 The amount allocated to a coastal State under para8 graph (1) each fiscal year with respect to a leased 

9 tract shall be— 

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

11 the nearest State to the geographic center of 

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

13 total amounts allocated with respect to the 

14 leased tract; 

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

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

17 percent, of the total amounts allocated with re18 spect to the leased tract; and 

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

20 the only coastal State within 200 miles of a 

21 least tract, 100 percent of the total amounts al22 located with respect to the leased tract. 

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

24 a coastal State under this subsection— 


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

2 without further appropriation; 

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

4 and 

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

6 amounts available to the coastal State under 

7 this Act. 

8 ‘‘(4) USE OF FUNDS.— 

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

10 subparagraph (B), a coastal State may use 

11 funds allocated and paid to it under this sub12 section for any purpose as determined by the 

13 laws of that State. 

14 ‘‘(B) RESTRICTION ON USE FOR MATCH15 ING.—Funds allocated and paid to a coastal 

16 State under this subsection may not be used as 

17 matching funds for any other Federal pro18 gram.’’. 

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

20 the amendment made by this section shall not affect the 

21 application of section 105 of the Gulf of Mexico Energy 

22 Security Act of 2006 (title I of division C of Public Law 

23 109–432; (43 U.S.C. 1331 note)), as in effect before the 

24 enactment of this Act, with respect to revenues received 

25 by the United States under oil and gas leases issued for 


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1 tracts located in the Western and Central Gulf of Mexico 

2 Outer Continental Shelf Planning Areas, including such 

3 leases issued on or after the date of the enactment of this 

4 Act. 

5 TITLE IV—REORGANIZATION OF 

6 MINERALS MANAGEMENT 

7 AGENCIES OF THE DEPART8 MENT OF THE INTERIOR 

9 SEC. 401. ESTABLISHMENT OF UNDER SECRETARY FOR EN10 ERGY, LANDS, AND MINERALS AND ASSIST11 ANT SECRETARY OF OCEAN ENERGY AND 

12 SAFETY. 

13 There shall be in the Department of the Interior— 

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

15 Minerals, who shall— 

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

17 with the advise and consent of the Senate; 

18 (B) report to the Secretary of the Interior 

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

20 Secretary of the Interior; 

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

22 of the Executive Schedule; and 

23 (D) be responsible for— 

24 (i) the safe and responsible develop25 ment of our energy and mineral resources 


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1 on Federal lands in appropriate accordance 

2 with United States energy demands; and 

3 (ii) ensuring multiple-use missions of 

4 the Department of the Interior that pro5 mote the safe and sustained development 

6 of energy and minerals resources on public 

7 lands (as that term is defined in the Fed8 eral Land Policy and Management Act of 

9 1976 (43 U.S.C. 1701 et seq.)); 

10 (2) an Assistant Secretary of Ocean Energy 

11 and Safety, 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 Under Secretary for En15 ergy, Lands, and Minerals; 

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

17 of the Executive Schedule; and 

18 (D) be responsible for ensuring safe and 

19 efficient development of energy and minerals on 

20 the Outer Continental Shelf of the United 

21 States; and 

22 (3) an Assistant Secretary of Land and Min23 erals Management, who shall— 

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

25 with the advise and consent of the Senate; 


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1 (B) report to the Under Secretary for En2 ergy, Lands, and Minerals; 

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

4 of the Executive Schedule; and 

5 (D) be responsible for ensuring safe and 

6 efficient development of energy and minerals on 

7 public lands and other Federal onshore lands 

8 under the jurisdiction of the Department of the 

9 Interior, including implementation of the Min10 eral Leasing Act (30 U.S.C. 181 et seq.) and 

11 the Surface Mining Control and Reclamation 

12 Act (30 U.S.C. 1201 et seq.) and administra13 tion of the Office of Surface Mining. 

14 SEC. 402. BUREAU OF OCEAN ENERGY. 

15 (a) ESTABLISHMENT.—There is established in the 

16 Department of the Interior a Bureau of Ocean Energy (re17 ferred to in this section as the ‘‘Bureau’’), which shall— 

18 (1) be headed by a Director of Ocean Energy 

19 (referred to in this section as the ‘‘Director’’); and 

20 (2) be administered under the direction of the 

21 Assistant Secretary of Ocean Energy and Safety. 

22 (b) DIRECTOR.— 

23 (1) APPOINTMENT.—The Director shall be ap24 pointed by the Secretary of the Interior. 


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1 (2) COMPENSATION.—The Director shall be 

2 compensated at the rate provided for level V of the 

3 Executive Schedule under section 5316 of title 5, 

4 United States Code. 

5 (c) DUTIES.— 

6 (1) IN GENERAL.—The Secretary of the Inte7 rior shall carry out through the Bureau all func8 tions, powers, and duties vested in the Secretary re9 lating to the administration of a comprehensive pro10 gram of offshore mineral and renewable energy re11 sources management. 

12 (2) SPECIFIC AUTHORITIES.—The Director 

13 shall promulgate and implement regulations— 

14 (A) for the proper issuance of leases for 

15 the exploration, development, and production of 

16 nonrenewable and renewable energy and min17 eral resources on the Outer Continental Shelf; 

18 (B) relating to resource identification, ac19 cess, evaluation, and utilization; 

20 (C) for development of leasing plans, lease 

21 sales, and issuance of leases for such resources; 

22 and 

23 (D) regarding issuance of environmental 

24 impact statements related to leasing and post 

25 leasing activities including exploration, developVerDate Mar 15 2010 00:28 Jun 05, 2013 Jkt 029200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2231.IH H2231

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1 ment, and production, and the use of third 

2 party contracting for necessary environmental 

3 analysis for the development of such resources. 

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

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

6 that is— 

7 (A) required by section 403 to be carried 

8 out through the Ocean Energy Safety Service; 

9 or 

10 (B) required by section 404 to be carried 

11 out through the Office of Natural Resources 

12 Revenue. 

13 (d) RESPONSIBILITIES OF LAND MANAGEMENT

14 AGENCIES.—Nothing in this section shall affect the au15 thorities of the Bureau of Land Management under the 

16 Federal Land Policy and Management Act of 1976 (43 

17 U.S.C. 1701 et seq.) or of the Forest Service under the 

18 National Forest Management Act of 1976 (Public Law 

19 94–588). 

20 SEC. 403. OCEAN ENERGY SAFETY SERVICE. 

21 (a) ESTABLISHMENT.—There is established in the 

22 Department of the Interior an Ocean Energy Safety Serv23 ice (referred to in this section as the ‘‘Service’’), which 

24 shall— 


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1 (1) be headed by a Director of Energy Safety 

2 (referred to in this section as the ‘‘Director’’); and 

3 (2) be administered under the direction of the 

4 Assistant Secretary of Ocean Energy and Safety. 

5 (b) DIRECTOR.— 

6 (1) APPOINTMENT.—The Director shall be ap7 pointed by the Secretary of the Interior. 

8 (2) COMPENSATION.—The Director shall be 

9 compensated at the rate provided for level V of the 

10 Executive Schedule under section 5316 of title 5, 

11 United States Code. 

12 (c) DUTIES.— 

13 (1) IN GENERAL.—The Secretary of the Inte14 rior shall carry out through the Service all functions, 

15 powers, and duties vested in the Secretary relating 

16 to the administration of safety and environmental 

17 enforcement activities related to offshore mineral 

18 and renewable energy resources on the Outer Conti19 nental Shelf pursuant to the Outer Continental Shelf 

20 Lands Act (43 U.S.C. 1331 et seq.) including the 

21 authority to develop, promulgate, and enforce regu22 lations to ensure the safe and sound exploration, de23 velopment, and production of mineral and renewable 

24 energy resources on the Outer Continental Shelf in 

25 a timely fashion. 


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1 (2) SPECIFIC AUTHORITIES.—The Director 

2 shall be responsible for all safety activities related to 

3 exploration and development of renewable and min4 eral resources on the Outer Continental Shelf, in5 cluding— 

6 (A) exploration, development, production, 

7 and ongoing inspections of infrastructure; 

8 (B) the suspending or prohibiting, on a 

9 temporary basis, any operation or activity, in10 cluding production under leases held on the 

11 Outer Continental Shelf, in accordance with 

12 section 5(a)(1) of the Outer Continental Shelf 

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

14 (C) cancelling any lease, permit, or right15 of-way on the Outer Continental Shelf, in ac16 cordance with section 5(a)(2) of the Outer Con17 tinental Shelf Lands Act (43 U.S.C. 

18 1334(a)(2)); 

19 (D) compelling compliance with applicable 

20 Federal laws and regulations relating to worker 

21 safety and other matters; 

22 (E) requiring comprehensive safety and en23 vironmental management programs for persons 

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1 ration, development, and production of mineral 

2 or renewable energy resources; 

3 (F) developing and implementing regula4 tions for Federal employees to carry out any in5 spection or investigation to ascertain compli6 ance with applicable regulations, including 

7 health, safety, or environmental regulations; 

8 (G) implementing the Offshore Technology 

9 Research and Risk Assessment Program under 

10 section 21 of the Outer Continental Shelf 

11 Lands Act (43 U.S.C. 1347); 

12 (H) summoning witnesses and directing 

13 the production of evidence; 

14 (I) levying fines and penalties and disquali15 fying operators; 

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

17 removal preparedness functions; and 

18 (K) the processing of permits, exploration 

19 plans, development plans. 

20 (d) EMPLOYEES.— 

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

22 that the inspection force of the Bureau consists of 

23 qualified, trained employees who meet qualification 

24 requirements and adhere to the highest professional 

25 and ethical standards. 


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1 (2) QUALIFICATIONS.—The qualification re2 quirements referred to in paragraph (1)— 

3 (A) shall be determined by the Secretary, 

4 subject to subparagraph (B); and 

5 (B) shall include— 

6 (i) three years of practical experience 

7 in oil and gas exploration, development, or 

8 production; or 

9 (ii) a degree in an appropriate field of 

10 engineering from an accredited institution 

11 of higher learning. 

12 (3) ASSIGNMENT.—In assigning oil and gas in13 spectors to the inspection and investigation of indi14 vidual operations, the Secretary shall give due con15 sideration to the extent possible to their previous ex16 perience in the particular type of oil and gas oper17 ation in which such inspections are to be made. 

18 (4) BACKGROUND CHECKS.—The Director shall 

19 require that an individual to be hired as an inspec20 tion officer undergo an employment investigation 

21 (including a criminal history record check). 

22 (5) LANGUAGE REQUIREMENTS.—Individuals 

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

24 write English well enough to— 


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1 (A) carry out written and oral instructions 

2 regarding the proper performance of inspection 

3 duties; and 

4 (B) write inspection reports and state5 ments and log entries in the English language. 

6 (6) VETERANS PREFERENCE.—The Director 

7 shall provide a preference for the hiring of an indi8 vidual as a inspection officer if the individual is a 

9 member or former member of the Armed Forces and 

10 is entitled, under statute, to retired, retirement, or 

11 retainer pay on account of service as a member of 

12 the Armed Forces. 

13 (7) ANNUAL PROFICIENCY REVIEW.— 

14 (A) ANNUAL PROFICIENCY REVIEW.—The 

15 Director shall provide that an annual evaluation 

16 of each individual assigned inspection duties is 

17 conducted and documented. 

18 (B) CONTINUATION OF EMPLOYMENT.—An 

19 individual employed as an inspector may not 

20 continue to be employed in that capacity unless 

21 the evaluation demonstrates that the indi22 vidual— 

23 (i) continues to meet all qualifications 

24 and standards; 


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1 (ii) has a satisfactory record of per2 formance and attention to duty based on 

3 the standards and requirements in the in4 spection program; and 

5 (iii) demonstrates the current knowl6 edge and skills necessary to courteously, 

7 vigilantly, and effectively perform inspec8 tion functions. 

9 (8) LIMITATION ON RIGHT TO STRIKE.—Any 

10 individual that conducts permitting or inspections 

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

12 assert the right to strike. 

13 (9) PERSONNEL AUTHORITY.—Notwithstanding 

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

15 appoint, discipline and terminate for cause, and fix 

16 the compensation, terms, and conditions of employ17 ment of Federal service for individuals as the em18 ployees of the Service in order to restore and main19 tain the trust of the people of the United States in 

20 the accountability of the management of our Na21 tion’s energy safety program. 

22 (10) TRAINING ACADEMY.— 

23 (A) IN GENERAL.—The Secretary shall es24 tablish and maintain a National Offshore En25 ergy Safety Academy (referred to in this paraVerDate Mar 15 2010 00:28 Jun 05, 2013 Jkt 029200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H2231.IH H2231

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1 graph as the ‘‘Academy’’) as an agency of the 

2 Ocean Energy Safety Service. 

3 (B) FUNCTIONS OF ACADEMY.—The Sec4 retary, through the Academy, shall be respon5 sible for— 

6 (i) the initial and continued training 

7 of both newly hired and experienced off8 shore oil and gas inspectors in all aspects 

9 of health, safety, environmental, and oper10 ational inspections; 

11 (ii) the training of technical support 

12 personnel of the Bureau; 

13 (iii) any other training programs for 

14 offshore oil and gas inspectors, Bureau 

15 personnel, Department personnel, or other 

16 persons as the Secretary shall designate; 

17 and 

18 (iv) certification of the successful 

19 completion of training programs for newly 

20 hired and experienced offshore oil and gas 

21 inspectors. 

22 (C) COOPERATIVE AGREEMENTS.— 

23 (i) IN GENERAL.—In performing func24 tions under this paragraph, and subject to 

25 clause (ii), the Secretary may enter into 


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1 cooperative educational and training agree2 ments with educational institutions, related 

3 Federal academies, other Federal agencies, 

4 State governments, safety training firms, 

5 and oil and gas operators and related in6 dustries. 

7 (ii) TRAINING REQUIREMENT.—Such 

8 training shall be conducted by the Acad9 emy in accordance with curriculum needs 

10 and assignment of instructional personnel 

11 established by the Secretary. 

12 (11) USE OF DEPARTMENT PERSONNEL.—In 

13 performing functions under this subsection, the Sec14 retary shall use, to the extent practicable, the facili15 ties and personnel of the Department of the Interior. 

16 The Secretary may appoint or assign to the Acad17 emy such officers and employees as the Secretary 

18 considers necessary for the performance of the du19 ties and functions of the Academy. 

20 (12) ADDITIONAL TRAINING PROGRAMS.— 

21 (A) IN GENERAL.—The Secretary shall 

22 work with appropriate educational institutions, 

23 operators, and representatives of oil and gas 

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1 grams with educational institutions and oil and 

2 gas operators that are designed— 

3 (i) to enable persons to qualify for po4 sitions in the administration of this Act; 

5 and 

6 (ii) to provide for the continuing edu7 cation of inspectors or other appropriate 

8 Department of the Interior personnel. 

9 (B) FINANCIAL AND TECHNICAL ASSIST10 ANCE.—The Secretary may provide financial 

11 and technical assistance to educational institu12 tions in carrying out this paragraph. 

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

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

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

16 through Bureau of Ocean Energy; or 

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

18 through the Office of Natural Resources Revenue. 

19 SEC. 404. OFFICE OF NATURAL RESOURCES REVENUE. 

20 (a) ESTABLISHMENT.—There is established in the 

21 Department of the Interior an Office of Natural Resources 

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

23 be headed by a Director of Natural Resources Revenue 

24 (referred to in this section as the ‘‘Director’’). 

25 (b) APPOINTMENT AND COMPENSATION.— 


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1 (1) IN GENERAL.—The Director shall be ap2 pointed by the Secretary of the Interior. 

3 (2) COMPENSATION.—The Director shall be 

4 compensated at the rate provided for Level V of the 

5 Executive Schedule under section 5316 of title 5, 

6 United States Code. 

7 (c) DUTIES.— 

8 (1) IN GENERAL.—The Secretary of the Inte9 rior shall carry out, through the Office, all functions, 

10 powers, and duties vested in the Secretary and relat11 ing to the administration of offshore royalty and rev12 enue management functions. 

13 (2) SPECIFIC AUTHORITIES.—The Secretary 

14 shall carry out, through the Office, all functions, 

15 powers, and duties previously assigned to the Min16 erals Management Service (including the authority 

17 to develop, promulgate, and enforce regulations) re18 garding offshore royalty and revenue collection; roy19 alty and revenue distribution; auditing and compli20 ance; investigation and enforcement of royalty and 

21 revenue regulations; and asset management for on22 shore and offshore activities. 

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

24 through the Office 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 403 to be carried out 

4 through the Ocean Energy Safety Service. 

5 SEC. 405. ETHICS AND DRUG TESTING. 

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

7 shall certify annually that all Department of the Interior 

8 officers and employees having regular, direct contact with 

9 lessees, contractors, concessionaires, and other businesses 

10 interested before the Government as a function of their 

11 official duties, or conducting investigations, issuing per12 mits, or responsible for oversight of energy programs, are 

13 in full compliance with all Federal employee ethics laws 

14 and regulations under the Ethics in Government Act of 

15 1978 (5 U.S.C. App.) and part 2635 of title 5, Code of 

16 Federal Regulations, and all guidance issued under sub17 section (c). 

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

19 random drug testing program of all Department of the 

20 Interior personnel referred to in subsection (a). 

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

22 date of enactment of this Act, the Secretary shall issue 

23 supplementary ethics and drug testing guidance for the 

24 employees for which certification is required under sub25 section (a). The Secretary shall update the supplementary 


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1 ethics guidance not less than once every 3 years there2 after. 

3 SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT 

4 SERVICE. 

5 (a) ABOLISHMENT.—The Minerals Management 

6 Service is abolished. 

7 (b) COMPLETED ADMINISTRATIVE ACTIONS.— 

8 (1) IN GENERAL.—Completed administrative 

9 actions of the Minerals Management Service shall 

10 not be affected by the enactment of this Act, but 

11 shall continue in effect according to their terms until 

12 amended, modified, superseded, terminated, set 

13 aside, or revoked in accordance with law by an offi14 cer of the United States or a court of competent ju15 risdiction, or by operation of law. 

16 (2) COMPLETED ADMINISTRATIVE ACTION DE17 FINED.—For purposes of paragraph (1), the term 

18 ‘‘completed administrative action’’ includes orders, 

19 determinations, memoranda of understanding, 

20 memoranda of agreements, rules, regulations, per21 sonnel actions, permits, agreements, grants, con22 tracts, certificates, licenses, registrations, and privi23 leges. 


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1 (c) PENDING PROCEEDINGS.—Subject to the author2 ity of the Secretary of the Interior and the officers of the 

3 Department of the Interior under this Act— 

4 (1) pending proceedings in the Minerals Man5 agement Service, including notices of proposed rule6 making, and applications for licenses, permits, cer7 tificates, grants, and financial assistance, shall con8 tinue, notwithstanding the enactment of this Act or 

9 the vesting of functions of the Service in another 

10 agency, unless discontinued or modified under the 

11 same terms and conditions and to the same extent 

12 that such discontinuance or modification could have 

13 occurred if this Act had not been enacted; and 

14 (2) orders issued in such proceedings, and ap15 peals therefrom, and payments made pursuant to 

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

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

18 and any such orders shall continue in effect until 

19 amended, modified, superseded, terminated, set 

20 aside, or revoked by an officer of the United States 

21 or a court of competent jurisdiction, or by operation 

22 of law. 

23 (d) PENDING CIVIL ACTIONS.—Subject to the au24 thority of the Secretary of the Interior or any officer of 

25 the Department of the Interior under this Act, pending 


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1 civil actions shall continue notwithstanding the enactment 

2 of this Act, and in such civil actions, proceedings shall be 

3 had, appeals taken, and judgments rendered and enforced 

4 in the same manner and with the same effect as if such 

5 enactment had not occurred. 

6 (e) REFERENCES.—References relating to the Min7 erals Management Service in statutes, Executive orders, 

8 rules, regulations, directives, or delegations of authority 

9 that precede the effective date of this Act are deemed to 

10 refer, as appropriate, to the Department, to its officers, 

11 employees, or agents, or to its corresponding organiza12 tional units or functions. Statutory reporting requirements 

13 that applied in relation to the Minerals Management Serv14 ice immediately before the effective date of this Act shall 

15 continue to apply. 

16 SEC. 407. CONFORMING AMENDMENTS TO EXECUTIVE 

17 SCHEDULE PAY RATES. 

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

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

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

21 Secretaries of the Treasury (3)’’ the following: 

22 ‘‘Under Secretary for Energy, Lands, and Min23 erals, Department of the Interior.’’. 

24 (b) ASSISTANT SECRETARIES.—Section 5315 of title 

25 5, United States Code, is amended by striking ‘‘Assistant 


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1 Secretaries, Department of the Interior (6)’’ and inserting 

2 the following: 

3 ‘‘Assistant Secretaries, Department of the Inte4 rior (7).’’. 

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

6 States Code, is amended by striking ‘‘Director, Bureau of 

7 Mines, Department of the Interior.’’ and inserting the fol8 lowing new items: 

9 ‘‘Director, Bureau of Ocean Energy, Depart10 ment of the Interior. 

11 ‘‘Director, Ocean Energy Safety Service, De12 partment of the Interior. 

13 ‘‘Director, Office of Natural Resources Rev14 enue, Department of the Interior.’’. 

15 SEC. 408. OUTER CONTINENTAL SHELF ENERGY SAFETY 

16 ADVISORY BOARD. 

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

18 shall establish, under the Federal Advisory Committee 

19 Act, an Outer Continental Shelf Energy Safety Advisory 

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

21 (1) to provide the Secretary and the Directors 

22 established by this Act with independent scientific 

23 and technical advice on safe, responsible, and timely 

24 mineral and renewable energy exploration, develop25 ment, and production activities; and 


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1 (2) to review operations of the National Off2 shore Energy Health and Safety Academy estab3 lished under section 403(d), including submitting to 

4 the Secretary recommendations of curriculum to en5 sure training scientific and technical advancements. 

6 (b) MEMBERSHIP.— 

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

8 than 11 members, who— 

9 (A) shall be appointed by the Secretary 

10 based on their expertise in oil and gas drilling, 

11 well design, operations, well containment and 

12 oil spill response; and 

13 (B) must have significant scientific, engi14 neering, management, and other credentials and 

15 a history of working in the field related to safe 

16 energy exploration, development, and produc17 tion activities. 

18 (2) CONSULTATION AND NOMINATIONS.—The 

19 Secretary shall consult with the National Academy 

20 of Sciences and the National Academy of Engineer21 ing to identify potential candidates for the Board 

22 and shall take nominations from the public. 

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

24 members to staggered terms of not more than 4 


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1 years, and shall not appoint a member for more 

2 than 2 consecutive terms. 

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

4 Board, the Secretary shall ensure a balanced rep5 resentation of industry and research interests. 

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

7 for the Board from among its members. 

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

9 3 times per year and shall host, at least once per year, 

10 a public forum to review and assess the overall energy 

11 safety performance of Outer Continental Shelf mineral 

12 and renewable energy resource activities. 

13 (e) OFFSHORE DRILLING SAFETY ASSESSMENTS

14 AND RECOMMENDATIONS.—As part of its duties under 

15 this section, the Board shall, by not later than 180 days 

16 after the date of enactment of this section and every 5 

17 years thereafter, submit to the Secretary a report that— 

18 (1) assesses offshore oil and gas well control 

19 technologies, practices, voluntary standards, and 

20 regulations in the United States and elsewhere; and 

21 (2) as appropriate, recommends modifications 

22 to the regulations issued under this Act to ensure 

23 adequate protection of safety and the environment, 

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1 tions and administrative actions that are duplicative 

2 or unnecessary. 

3 (f) REPORTS.—Reports of the Board shall be sub4 mitted by the Board to the Committee on Natural Re5 sources of the House or Representatives and the Com6 mittee on Energy and Natural Resources of the Senate 

7 and made available to the public in electronically acces8 sible form. 

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

10 other than full-time employees of the Federal Government, 

11 while attending meeting of the Board or while otherwise 

12 serving at the request of the Secretary or the Director 

13 while serving away from their homes or regular places of 

14 business, may be allowed travel expenses, including per 

15 diem in lieu of subsistence, as authorized by section 5703 

16 of title 5, United States Code, for individuals in the Gov17 ernment serving without pay. 

18 SEC. 409. OUTER CONTINENTAL SHELF INSPECTION FEES. 

19 Section 22 of the Outer Continental Shelf Lands Act 

20 (43 U.S.C. 1348) is amended by adding at the end of the 

21 section the following: 

22 ‘‘(g) INSPECTION FEES.— 

23 ‘‘(1) ESTABLISHMENT.—The Secretary of the 

24 Interior shall collect from the operators of facilities 


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1 subject to inspection under subsection (c) non-re2 fundable fees for such inspections— 

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

4 amount necessary to offset the annual expenses 

5 of inspections of outer Continental Shelf facili6 ties (including mobile offshore drilling units) by 

7 the Department of the Interior; and 

8 ‘‘(B) using a schedule that reflects the dif9 ferences in complexity among the classes of fa10 cilities to be inspected. 

11 ‘‘(2) OCEAN ENERGY SAFETY FUND.—There is 

12 established in the Treasury a fund, to be known as 

13 the ‘Ocean Energy Enforcement Fund’ (referred to 

14 in this subsection as the ‘Fund’), into which shall be 

15 deposited all amounts collected as fees under para16 graph (1) and which shall be available as provided 

17 under paragraph (3). 

18 ‘‘(3) AVAILABILITY OF FEES.— 

19 ‘‘(A) IN GENERAL.—Notwithstanding sec20 tion 3302 of title 31, United States Code, all 

21 amounts deposited in the Fund— 

22 ‘‘(i) shall be credited as offsetting col23 lections; 

24 ‘‘(ii) shall be available for expenditure 

25 for purposes of carrying out inspections of 


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1 outer Continental Shelf facilities (including 

2 mobile offshore drilling units) and the ad3 ministration of the inspection program 

4 under this section; 

5 ‘‘(iii) shall be available only to the ex6 tent provided for in advance in an appro7 priations Act; and 

8 ‘‘(iv) shall remain available until ex9 pended. 

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

11 than 75 percent of amounts in the Fund may 

12 be appropriated for use only for the respective 

13 Department of the Interior field offices where 

14 the amounts were originally assessed as fees. 

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

16 under this subsection for the fiscal year in which 

17 this subsection takes effect and the subsequent 10 

18 years, and shall not be raised without advise and 

19 consent of the Congress, except as determined by the 

20 Secretary to be appropriate as an adjustment equal 

21 to the percentage by which the Consumer Price 

22 Index for the month of June of the calendar year 

23 preceding the adjustment exceeds the Consumer 

24 Price Index for the month of June of the calendar 


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1 year in which the claim was determined or last ad2 justed. 

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 each 

7 fiscal year in the period of fiscal years 2013 through 

8 2022 shall be— 

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

10 but with processing equipment or gathering 

11 lines; 

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

13 wells, with any combination of active or inactive 

14 wells; and 

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

16 10 wells, with any combination of active or in17 active wells. 

18 ‘‘(6) FEES FOR DRILLING RIGS.—Fees for drill19 ing rigs shall be assessed under this subsection for 

20 all inspections completed in fiscal years 2013 

21 through 2022. Fees for fiscal year 2013 shall be: 

22 ‘‘(A) $30,500 per inspection for rigs oper23 ating in water depths of 1,000 feet or more; 

24 and 


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1 ‘‘(B) $16,700 per inspection for rigs oper2 ating in water depths of less than 1,000 feet. 

3 ‘‘(7) BILLING.—The Secretary shall bill des4 ignated operators under paragraph (5) within 60 

5 days after the date of the inspection, with payment 

6 required within 30 days of billing. The Secretary 

7 shall bill designated operators under paragraph (6) 

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

9 inspection occurred, with payment required within 

10 30 days after billing. 

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

12 this subsection for any fiscal year after fiscal year 

13 2022. 

14 ‘‘(9) ANNUAL REPORTS.— 

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

16 days after the end of each fiscal year beginning 

17 with fiscal year 2013, the Secretary shall sub18 mit to the Committee on Energy and Natural 

19 Resources of the Senate and the Committee on 

20 Natural Resources of the House of Representa21 tives a report on the operation of the Fund dur22 ing the fiscal year. 

23 ‘‘(B) CONTENTS.—Each report shall in24 clude, for the fiscal year covered by the report, 

25 the following: 


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1 ‘‘(i) A statement of the amounts de2 posited into the Fund. 

3 ‘‘(ii) A description of the expenditures 

4 made from the Fund for the fiscal year, in5 cluding the purpose of the expenditures 

6 and the additional hiring of personnel. 

7 ‘‘(iii) A statement of the balance re8 maining in the Fund at the end of the fis9 cal year. 

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

11 approvals. 

12 ‘‘(v) If fee increases are proposed 

13 after the initial 10-year period referred to 

14 in paragraph (5), a proper accounting of 

15 the potential adverse economic impacts 

16 such fee increases will have on offshore 

17 economic activity and overall production, 

18 conducted by the Secretary. 

19 ‘‘(vi) Recommendations to increase 

20 the efficacy and efficiency of offshore in21 spections. 

22 ‘‘(vii) Any corrective actions levied 

23 upon offshore inspectors as a result of any 

24 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 

10 States exclusive economic zone and the Continental 

11 Shelf adjacent to any territory of the United 

12 States’’; 

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

14 the semicolon at the end; 

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

16 the end and inserting ‘‘; and’’; and 

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

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

19 United States.’’. 

Æ 


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