II 

109TH CONGRESS 

2D SESSION S. 2420 

To amend the Outer Continental Shelf Lands Act to provide for payments 

for producing coastal States. 

IN THE SENATE OF THE UNITED STATES 

MARCH 15, 2006 

Ms. LANDRIEU (for herself and Mr. VITTER) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To amend the Outer Continental Shelf Lands Act to provide 

for payments for producing coastal States. 

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 ‘‘Gulf Coast Protection 

5 Act of 2006’’. 

6 SEC. 2. PAYMENTS TO COASTAL PRODUCING STATES. 

7 The Outer Continental Shelf Lands Act (43 U.S.C. 

8 1301 et seq.) is amended by adding at the end the fol9 lowing: 


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1 ‘‘SEC. 32. PAYMENTS TO COASTAL PRODUCING STATES. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) COASTALPOLITICALSUBDIVISION.—The 

4 term ‘coastal political subdivision’ means a political 

5 subdivision of a coastal State, any part of which is 

6 located— 

7 ‘‘(A) within the coastal zone (as defined in 

8 section 304 of the Coastal Zone Management 

9 Act of 1972 (16 U.S.C. 1453)) of the coastal 

10 State as of the date of enactment of this sec11 tion; and 

12 ‘‘(B) not more than 200 nautical miles 

13 from the geographic center of any leased tract. 

14 ‘‘(2) COASTALSTATE.—The term ‘coastal 

15 State’ has the meaning given the term in section 

16 304 of the Coastal Zone Management Act of 1972 

17 (16 U.S.C. 1453). 

18 ‘‘(3) COASTALPRODUCING STATE.— 

19 ‘‘(A) IN GENERAL.—The term ‘coastal pro20 ducing State’ means a coastal State that has a 

21 coastal seaward boundary within 200 nautical 

22 miles of the geographic center of a leased tract 

23 within any area of the outer Continental Shelf. 

24 ‘‘(B) EXCLUSION.—The term ‘coastal pro25 ducing State’ does not include any State a maVerDate Aug 31 2005 05:39 Mar 16, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2420.IS S2420

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1 jority of the coastline of which is subject to 

2 leasing moratoria as of January 1, 2006. 

3 ‘‘(4) LEASED TRACT.—The term ‘leased tract’ 

4 means a tract— 

5 ‘‘(A) maintained under section 6; or 

6 ‘‘(B) leased under section 8. 

7 ‘‘(5) QUALIFIED OUTER CONTINENTAL SHELF

8 REVENUES.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 outer Continental Shelf revenues’ means the 

11 amounts received by the United States from 

12 each leased tract or portion of a leased tract— 

13 ‘‘(i) lying— 

14 ‘‘(I) seaward of the zone covered 

15 by section 8(g); or 

16 ‘‘(II) within that zone, but to 

17 which section 8(g) does not apply; and 

18 ‘‘(ii) the geographic center of which 

19 lies within 200 nautical miles from any 

20 part of the coastline of any coastal State. 

21 ‘‘(B) INCLUSIONS.—The term ‘qualified 

22 outer Continental Shelf revenues’ includes 

23 bonus bids, rents, royalties (including payments 

24 for royalty taken in-kind and sold), net profit 

25 share payments, and related late-payment interVerDate Aug 31 2005 05:39 Mar 16, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2420.IS S2420

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1 est from natural gas and oil leases issued under 

2 this Act. 

3 ‘‘(C) EXCLUSION.—The term ‘qualified 

4 outer Continental Shelf revenues’ does not in5 clude any revenues from a leased tract or por6 tion of a leased tract that is located in a geo7 graphic area subject to a leasing moratorium as 

8 of January 1, 2006, unless the lease was in 

9 production on that date. 

10 ‘‘(b) DISBURSEMENTS.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding any other 

12 provision of law, not later than December 31, 2006, 

13 and annually thereafter, the Secretary of the Treas14 ury, without further appropriation and subject to 

15 subjection (c), shall disburse to coastal producing 

16 States 50 percent of qualified outer Continental 

17 Shelf revenues received during the preceding year. 

18 ‘‘(2) PROPORTIONAL ALLOCATIONS.— 

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

20 subparagraph (B), the amounts made available 

21 under paragraph (1) shall be allocated to each 

22 coastal producing State based on the ratio 

23 that— 

24 ‘‘(i) the amount of qualified outer 

25 Continental Shelf revenues generated off 


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1 the coastline of the coastal producing 

2 State; bears to 

3 ‘‘(ii) the amount of qualified outer 

4 Continental Shelf revenues generated off 

5 the coastline of all coastal producing 

6 States. 

7 ‘‘(B) EXCEPTION FOR MULTIPLE COASTAL

8 PRODUCING STATES.—In a case in which more 

9 than 1 coastal producing State is located within 

10 200 nautical miles of any portion of a leased 

11 tract, the amount allocated to each coastal pro12 ducing State for the leased tract shall be in13 versely proportional to the distance between— 

14 ‘‘(i) the nearest point on the coastline 

15 of the coastal producing State; and 

16 ‘‘(ii) the geographic center of the 

17 leased tract. 

18 ‘‘(C) FORMULA.—Of the share of each 

19 coastal producing State under this paragraph, 

20 35 percent shall be allocated among and paid 

21 directly to appropriate coastal political subdivi22 sions by the Secretary of the Treasury based on 

23 the following formula: 

24 ‘‘(i) 50 percent shall be allocated in 

25 amounts that are inversely proportional to 


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1 the respective distances between the points 

2 in each coastal political subdivision that 

3 are closest to the geographic center of each 

4 leased tract, as determined by the Sec5 retary. 

6 ‘‘(ii) 25 percent shall be allocated 

7 based on the ratio that— 

8 ‘‘(I) the length, in miles, of the 

9 coastline of each coastal political sub10 division; bears to 

11 ‘‘(II) the length, in miles, of the 

12 coastline of all coastal political sub13 divisions of the State. 

14 ‘‘(iii) 25 percent shall be allocated 

15 based on the ratio that— 

16 ‘‘(I) the coastal population of the 

17 coastal political subdivision; bears to 

18 ‘‘(II) the coastal population of all 

19 coastal political subdivisions of the 

20 State. 

21 ‘‘(c) USE OF FUNDS.—A coastal producing State, 

22 and a coastal political subdivision, shall use amounts re23 ceived under this section (including any amounts deposited 

24 into a trust fund administered by the coastal producing 

25 State or coastal political subdivision in accordance with 


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1 this subsection), only for 1 or more of the following pur2 poses: 

3 ‘‘(1) To conserve, protect, or restore coastal 

4 areas, including wetlands. 

5 ‘‘(2) To mitigate damage to natural resources 

6 and protect fish and wildlife in the coastal zone. 

7 ‘‘(3) To mitigate the impact of outer Conti8 nental Shelf activity by providing onshore infrastruc9 ture or public service. 

10 ‘‘(4) Hurricane protection, storm damage miti11 gation, and integrated flood control systems. 

12 ‘‘(5) Levee construction and maintenance. 

13 ‘‘(6) Marine and coastal subsidence. 

14 ‘‘(7) Coastal and riverine erosion. 

15 ‘‘(8) Coastal and wetlands conservation and 

16 management. 

17 ‘‘(9) Infrastructure for navigation, ports, and 

18 transportation relating to trade, commerce, evacu19 ation, economic development, and public safety. 

20 ‘‘(d) ADDITIONAL USE OF FUNDS.—Subject to sub21 section (c), a coastal producing State may use amounts 

22 received under this section (including any amounts depos23 ited into a trust fund administered by the coastal pro24 ducing State or coastal political subdivision in accordance 

25 with this subsection) to make any payment that is eligible 


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1 to be made with funds provided to States under section 

2 35 of the Mineral Leasing Act (30 U.S.C. 191).’’. 

Æ 


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