II 

109TH CONGRESS 

1ST SESSION S. 1026 

To ensure that offshore energy development on the outer Continental Shelf 

continues to serve the needs of the United States, to create opportunities 

for new development and the use of alternative resources, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 12, 2005 

Ms. LANDRIEU introduced the following bill; which was read twice and 

referred to the Committee on Energy and Natural Resources 

A BILL 

To ensure that offshore energy development on the outer 

Continental Shelf continues to serve the needs of the 

United States, to create opportunities for new development and the use of alternative resources, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stewardship for Our 

5 Coasts and Opportunities for Reliable Energy Act’’. 
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1 SEC. 2. OUTER CONTINENTAL SHELF REVENUE SHARING 

2 FOR NON-MORATORIA COASTAL PRODUCING 

3 STATES. 

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

5 1331 et seq.) is amended by adding at the end the fol6 lowing: 

7 ‘‘SEC. 32. OUTER CONTINENTAL SHELF REVENUE SHARING 

8 FOR NON-MORATORIA COASTAL PRODUCING 

9 STATES. 

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

11 ‘‘(1) COASTAL POLITICAL SUBDIVISION.—The 

12 term ‘coastal political subdivision’ means a political 

13 subdivision of a producing State, all or part of which 

14 lies within the boundaries of the coastal zone of the 

15 producing State that are identified in the coastal 

16 zone management program for the producing State 

17 under the Coastal Zone Management Act of 1972 

18 (16 U.S.C. 1451 et seq.), as in effect on the date 

19 of enactment of this section. 

20 ‘‘(2) COASTAL POPULATION.—The term ‘coastal 

21 population’ means the population, as determined by 

22 the most recent official data of the Census Bureau, 

23 of each political subdivision, any part of which lies 

24 within the designated coastal boundary of a State 

25 (as defined in a coastal zone management program 
3 

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1 of the State under the Coastal Zone Management 

2 Act of 1972 (16 U.S.C. 1451 et seq.)). 

3 ‘‘(3) COASTAL STATE.—The term ‘coastal 

4 State’ has the meaning given the term in section 

5 304 of the Coastal Zone Management Act of 1972 

6 (16 U.S.C. 1453). 

7 ‘‘(4) COASTLINE.—The term ‘coastline’ has the 

8 meaning given the term in section 2 of the Sub9 merged Lands Act (43 U.S.C. 1301). 

10 ‘‘(5) DISTANCE.—The term ‘distance’ means 

11 the minimum great circle distance, measured in stat12 ute miles. 

13 ‘‘(6) LEASED TRACT.—The term ‘leased tract’ 

14 means a tract that is subject to a lease under section 

15 6 or 8 for the purpose of drilling for, developing, 

16 and producing oil or natural gas resources. 

17 ‘‘(7) LEASING MORATORIA.—The term ‘leasing 

18 moratoria’ means the prohibitions on preleasing, 

19 leasing, and related activities on any geographic area 

20 of the outer Continental Shelf as contained in— 

21 ‘‘(A) the moratorium statement of the 

22 President on June 12, 1998; or 

23 ‘‘(B) section 110 of the Department of the 

24 Interior and Related Agencies Appropriations 

25 Act, 2002 (Public Law 107–63; 115 Stat. 438). 
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1 ‘‘(8) POLITICAL SUBDIVISION.—The term ‘polit2 ical subdivision’ means the local political jurisdiction 

3 immediately below the level of State government, in4 cluding counties, parishes, and boroughs. 

5 ‘‘(9) PRODUCING STATE.— 

6 ‘‘(A) IN GENERAL.—The term ‘producing 

7 State’ means a coastal State that has a coastal 

8 seaward boundary within 200 miles of the geo9 graphic center of a leased tract within any area 

10 of the outer Continental Shelf. 

11 ‘‘(B) EXCLUSION.—The term ‘producing 

12 State’ does not include a producing State, a 

13 majority of the coastline of which is subject to 

14 leasing moratoria. 

15 ‘‘(10) QUALIFIED OUTER CONTINENTAL SHELF

16 REVENUES.— 

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

18 Outer Continental Shelf revenues’ means all 

19 amounts received by the United States from 

20 each leased tract or portion of a leased tract— 

21 ‘‘(i) lying— 

22 ‘‘(I) seaward of the zone covered 

23 by section 8(g); or 
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1 ‘‘(II) within the zone covered by 

2 section 8(g), but to which section 8(g) 

3 does not apply; and 

4 ‘‘(ii) the geographic center of which 

5 lies within 200 miles of any part of the 

6 coastline of any coastal State. 

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

8 Outer Continental Shelf revenues’ includes 

9 bonus bids, rents, royalties (including payments 

10 for royalty taken in kind and sold), net profit 

11 share payments, and related late-payment inter12 est from natural gas and oil leases issued under 

13 this Act. 

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

15 Outer Continental Shelf revenues’ does not in16 clude any revenues (other than revenues re17 ceived under section 18(i)) from a leased tract 

18 or portion of a leased tract that is located in a 

19 geographic area subject to a leasing moratorium 

20 on January 1, 2005, unless the lease was in 

21 production on that date. 

22 ‘‘(11) TRANSFERRED AMOUNT.—The term 

23 ‘transferred amount’ means the amount transferred 

24 to the Secretary under subsection (b)(1) to make 
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1 payments to producing States and coastal political 

2 subdivisions under this section for a fiscal year. 

3 ‘‘(b) PAYMENTS TO PRODUCING STATES AND COAST4 AL POLITICAL SUBDIVISIONS.— 

5 ‘‘(1) TRANSFER OF AMOUNTS.—From qualified 

6 Outer Continental Shelf revenues deposited in the 

7 Treasury under this Act for a fiscal year, the Sec8 retary of the Treasury shall transfer to the Sec9 retary to make payments to producing States and 

10 coastal political subdivisions under this section— 

11 ‘‘(A) for each of fiscal years 2006 through 

12 2010, $500,000,000; and 

13 ‘‘(B) for fiscal year 2011 and each subse14 quent fiscal year, an amount equal to 50 per15 cent of qualified Outer Continental Shelf reve16 nues received for a fiscal year. 

17 ‘‘(2) DISBURSEMENT.—In each fiscal year, the 

18 Secretary shall, without further appropriation for 

19 purposes of paragraph (1)(B) and subject to the 

20 availability of appropriations for purposes of para21 graph (1)(A), disburse to each producing State for 

22 which the Secretary has approved a plan under sub23 section (c), and to coastal political subdivisions 

24 under paragraph (4), the funds allocated to the pro-
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1 ducing State or coastal political subdivision under 

2 this section for the fiscal year. 

3 ‘‘(3) ALLOCATION AMONG PRODUCING

4 STATES.— 

5 ‘‘(A) IN GENERAL.—The transferred 

6 amount shall be allocated to each producing 

7 State based on the ratio that— 

8 ‘‘(i) the amount of qualified outer 

9 Continental Shelf revenues generated off 

10 the coastline of the producing State; bears 

11 to 

12 ‘‘(ii) the amount of qualified outer 

13 Continental Shelf revenues generated off 

14 the coastline of all producing States. 

15 ‘‘(B) QUALIFIED OUTER CONTINENTAL

16 SHELF REVENUES.— 

17 ‘‘(i) FISCAL YEARS 2006 THROUGH

18 2008.—For each of fiscal years 2006 

19 through 2008, a calculation of a payment 

20 under this subsection shall be based on 

21 qualified outer Continental Shelf revenues 

22 received during fiscal year 2005. 

23 ‘‘(ii) FISCAL YEARS 2009 THROUGH

24 2010.—For each of fiscal years 2009 

25 through 2010, a calculation of a payment 
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1 under this subsection shall be based on 

2 qualified outer Continental Shelf revenues 

3 received during fiscal year 2008. 

4 ‘‘(iii) FISCAL YEAR 2011 AND THERE5 AFTER.—Beginning in fiscal year 2011, a 

6 calculation of a payment under this sub7 section for each fiscal year during a 2-year 

8 fiscal year period shall be based on quali9 fied outer Continental Shelf revenues re10 ceived during the fiscal year preceding the 

11 first fiscal year of the 2-year fiscal year pe12 riod. 

13 ‘‘(C) MULTIPLE PRODUCING STATES.—If 

14 more than 1 producing State is located within 

15 200 miles of any portion of a leased tract, the 

16 amount allocated to each producing State for 

17 the leased tract shall be inversely proportional 

18 to the distance between— 

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

20 of the producing State; and 

21 ‘‘(ii) the geographic center of the 

22 leased tract. 

23 ‘‘(D) MINIMUM ALLOCATION.—An amount 

24 allocated to a producing State under this para-
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1 graph shall be not less than 1 percent of the 

2 transferred amount. 

3 ‘‘(4) PAYMENTS TO COASTAL POLITICAL SUB4 DIVISIONS.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 pay 35 percent of the amount allocated under 

7 paragraph (3) to the coastal political subdivi8 sions in the producing State. 

9 ‘‘(B) FORMULA.—Of the amount paid by 

10 the Secretary to coastal political subdivisions 

11 under subparagraph (A)— 

12 ‘‘(i) 25 percent shall be allocated to 

13 each coastal political subdivision in the 

14 proportion that— 

15 ‘‘(I) the coastal population of the 

16 coastal political subdivision; bears to 

17 ‘‘(II) the coastal population of all 

18 coastal political subdivisions in the 

19 producing State; 

20 ‘‘(ii) 25 percent shall be allocated to 

21 each coastal political subdivision in the 

22 proportion that— 

23 ‘‘(I) the number of miles of 

24 coastline of the coastal political sub25 division; bears to 
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1 ‘‘(II) the number of miles of 

2 coastline of all coastal political sub3 divisions in the producing State; and 

4 ‘‘(iii) 50 percent shall be allocated in 

5 amounts that are inversely proportional to 

6 the respective distances between the points 

7 in each coastal political subdivision that 

8 are closest to the geographic center of each 

9 leased tract, as determined by the Sec10 retary. 

11 ‘‘(C) EXCEPTION FOR LOUISIANA.—For 

12 the purposes of subparagraph (B)(ii), the coast13 line for coastal political subdivisions in the 

14 State of Louisiana without a coastline shall be 

15 the average length of the coastline of all other 

16 coastal political subdivisions in the State of 

17 Louisiana. 

18 ‘‘(D) EXCEPTION FOR ALASKA.—For the 

19 purposes of carrying out subparagraph (B)(iii) 

20 in the State of Alaska, the amount allocated 

21 shall be divided equally among the 2 coastal po22 litical subdivisions that are closest to the geo23 graphic center of a leased tract. 

24 ‘‘(E) EXCLUSION OF CERTAIN LEASED

25 TRACTS.—For purposes of subparagraph 
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1 (B)(iii), a leased tract or portion of a leased 

2 tract shall be excluded if the tract or portion of 

3 a leased tract is located in a geographic area 

4 subject to a leasing moratorium on January 1, 

5 2005, unless the lease was in production on 

6 that date. 

7 ‘‘(5) NO APPROVED PLAN.— 

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graph (B) and except as provided in subpara10 graph (C), if any amount allocated to a pro11 ducing State or coastal political subdivision 

12 under paragraph (3) or (4) is not disbursed be13 cause the producing State does not have in ef14 fect a plan that has been approved by the Sec15 retary under subsection (c), the Secretary shall 

16 allocate the undisbursed amount equally among 

17 all other producing States. 

18 ‘‘(B) RETENTION OF ALLOCATION.—The 

19 Secretary shall hold in escrow an undisbursed 

20 amount described in subparagraph (A) until the 

21 date that the final appeal regarding the dis22 approval of a plan submitted under subsection 

23 (c) is decided. 

24 ‘‘(C) WAIVER.—The Secretary may waive 

25 the requirements of subparagraph (A) with re-
12 

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1 spect to an allocated share of a producing State 

2 and hold the allocable share in escrow if the 

3 Secretary determines that the producing State 

4 is making a good faith effort to develop and 

5 submit, or update, a plan in accordance with 

6 subsection (c). 

7 ‘‘(c) COASTAL IMPACT ASSISTANCE PLAN.— 

8 ‘‘(1) SUBMISSION OF STATE PLAN.— 

9 ‘‘(A) IN GENERAL.—Not later than July 1, 

10 2008, the Governor of a producing State shall 

11 submit to the Secretary a coastal impact assist12 ance plan. 

13 ‘‘(B) PUBLIC PARTICIPATION.—In carrying 

14 out subparagraph (A), the Governor shall solicit 

15 local input and provide for public participation 

16 in the development of the plan. 

17 ‘‘(2) APPROVAL.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 approve a plan of a producing State submitted 

20 under paragraph (1) before disbursing any 

21 amount to the producing State, or to a coastal 

22 political subdivision located in the producing 

23 State, under this section. 
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1 ‘‘(B) COMPONENTS.—The Secretary shall 

2 approve a plan submitted under paragraph (1) 

3 if— 

4 ‘‘(i) the Secretary determines that the 

5 plan is consistent with the uses described 

6 in subsection (d); and 

7 ‘‘(ii) the plan contains— 

8 ‘‘(I) the name of the State agen9 cy that will have the authority to rep10 resent and act on behalf of the pro11 ducing State in dealing with the Sec12 retary for purposes of this section; 

13 ‘‘(II) a program for the imple14 mentation of the plan that describes 

15 how the amounts provided under this 

16 section to the producing State will be 

17 used; 

18 ‘‘(III) for each coastal political 

19 subdivision that receives an amount 

20 under this section— 

21 ‘‘(aa) the name of a contact 

22 person; and 

23 ‘‘(bb) a description of how 

24 the coastal political subdivision 
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1 will use amounts provided under 

2 this section; 

3 ‘‘(IV) a certification by the Gov4 ernor that ample opportunity has been 

5 provided for public participation in 

6 the development and revision of the 

7 plan; and 

8 ‘‘(V) a description of measures 

9 that will be taken to determine the 

10 availability of assistance from other 

11 relevant Federal resources and pro12 grams. 

13 ‘‘(3) AMENDMENT TO A PLAN.—Any amend14 ment to a plan submitted under paragraph (1) shall 

15 be— 

16 ‘‘(A) developed in accordance with this 

17 subsection; and 

18 ‘‘(B) submitted to the Secretary for ap19 proval or disapproval under paragraph (4). 

20 ‘‘(4) PROCEDURE.—Except as provided in sub21 paragraph (B), not later than 90 days after the date 

22 on which a plan or amendment to a plan is sub23 mitted under paragraph (1) or (3), the Secretary 

24 shall approve or disapprove the plan or amendment. 

25 ‘‘(d) AUTHORIZED USES.— 
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1 ‘‘(1) FISCAL YEARS 2006 THROUGH 2010.—A 

2 producing State or coastal political subdivision shall 

3 use any amount transferred under subsection 

4 (b)(1)(A) that is distributed to the producing State 

5 or coastal political subdivision, including any amount 

6 deposited in a trust fund that is administered by the 

7 State or coastal political subdivision and dedicated 

8 to a use consistent with this section, in accordance 

9 with all applicable Federal and State law, only for 

10 1 or more of the following purposes: 

11 ‘‘(A) Projects and activities for the con12 servation, protection, or restoration of coastal 

13 areas, including wetland. 

14 ‘‘(B) Mitigation of damage to fish, wildlife, 

15 or natural resources. 

16 ‘‘(C) Planning assistance and the adminis17 trative costs of complying with this section. 

18 ‘‘(D) Implementation of a federally-ap19 proved marine, coastal, or comprehensive con20 servation management plan. 

21 ‘‘(E) Mitigation of the impact of outer 

22 Continental Shelf activities through funding of 

23 onshore infrastructure, education, health care, 

24 and public service needs. 
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1 ‘‘(2) FISCAL YEAR 2011 AND THEREAFTER.—A 

2 producing State or coastal political subdivision shall 

3 use at least 25 percent of any amount transferred 

4 under subsection (b)(1)(B) that is distributed to the 

5 producing State or coastal political subdivision, in6 cluding any amount deposited in a trust fund that 

7 is administered by the State or coastal political sub8 division and dedicated to a use consistent with this 

9 section, for 1 or more of the purposes described in 

10 paragraph (1). 

11 ‘‘(3) COMPLIANCE WITH AUTHORIZED USES.— 

12 If the Secretary determines that any expenditure 

13 made by a producing State or coastal political sub14 division is not consistent with this subsection, the 

15 Secretary shall not disburse any additional amount 

16 under this section to the producing State or the 

17 coastal political subdivision until all amounts obli18 gated for unauthorized uses have been repaid or re19 obligated for authorized uses.’’. 

20 SEC. 3. ESTABLISHMENT OF SEAWARD LATERAL BOUND21 ARIES FOR COASTAL STATES. 

22 Section 4(a)(2)(A) of the Outer Continental Shelf 

23 Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended— 

24 (1) by inserting ‘‘(i)’’ after ‘‘(A)’’; 

25 (2) in the first sentence— 
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1 (A) by striking ‘‘President shall’’ and in2 serting ‘‘Secretary shall by regulation’’; and 

3 (B) by inserting before the period at the 

4 end the following: ‘‘not later than 180 days 

5 after the date of enactment of the Stewardship 

6 for Our Coasts and Opportunities for Reliable 

7 Energy Act’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(i)(I) For purposes of this Act (including deter10 mining boundaries to authorize leasing and preleasing ac11 tivities and any attributing revenues under this Act and 

12 calculating payments to producing States and coastal po13 litical subdivisions under section 32), the Secretary shall 

14 delineate the lateral boundaries between coastal States in 

15 areas of the outer Continental shelf under exclusive Fed16 eral jurisdiction, to the extent of the exclusive economic 

17 zone of the United States, in accordance with article 15 

18 of the United Nations Convention on the Law of the Sea 

19 of December 10, 1982. 

20 ‘‘(II) This clause shall not affect any right or title 

21 to Federal submerged land on the outer Continental 

22 Shelf.’’. 
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1 SEC. 4. OPTION TO PETITION FOR LEASING WITHIN CER2 TAIN AREAS ON THE OUTER CONTINENTAL 

3 SHELF. 

4 Section 12 of the Outer Continental Shelf Lands Act 

5 (43 U.S.C. 1341) is amended by adding at the end the 

6 following: 

7 ‘‘(g) LEASING WITHIN THE SEAWARD LATERAL

8 BOUNDARIES OF COASTAL STATES.— 

9 ‘‘(1) DEFINITION OF AFFECTED AREA.—In this 

10 subsection, the term ‘affected area’ means any area 

11 located— 

12 ‘‘(A) in the areas of northern, central, and 

13 southern California and the areas of Oregon 

14 and Washington; 

15 ‘‘(B) in the north, middle, or south plan16 ning area of the Atlantic Ocean; 

17 ‘‘(C) in the eastern Gulf of Mexico plan18 ning area and lying— 

19 ‘‘(i) south of 26 degrees north lati20 tude; and 

21 ‘‘(ii) east of 86 degrees west lon22 gitude; or 

23 ‘‘(D) in the Straits of Florida. 

24 ‘‘(2) RESTRICTIONS ON LEASING.—The Sec25 retary shall not offer for offshore leasing, preleasing, 

26 or any related activity— 
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1 ‘‘(A) any area located on the outer Conti2 nental Shelf that, as of the date of enactment 

3 of this subsection, is designated as a marine 

4 sanctuary under the Marine Protection, Re5 search, and Sanctuaries Act of 1972 (33 U.S.C. 

6 1401 et seq.); or 

7 ‘‘(B) except as provided in paragraphs (3) 

8 and (4), during the period beginning on the 

9 date of enactment of this subsection and ending 

10 on June 30, 2012, any affected area. 

11 ‘‘(3) RESOURCE ASSESSMENTS.— 

12 ‘‘(A) IN GENERAL.—Beginning on the date 

13 on which the Secretary delineates seaward lat14 eral boundaries under section 4(a)(2)(A)(ii), a 

15 Governor of a State in which an affected area 

16 is located, with the consent of the legislature of 

17 the State, may submit to the Secretary a peti18 tion requesting a resource assessment of any 

19 area within the seaward lateral boundary of the 

20 State. 

21 ‘‘(B) ELIGIBLE RESOURCES.—A petition 

22 for a resource assessment under subparagraph 

23 (A) may be for— 

24 ‘‘(i) oil and gas leasing; 

25 ‘‘(ii) gas-only leasing; or 
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1 ‘‘(iii) any other energy source leasing, 

2 including renewable energy leasing. 

3 ‘‘(C) ACTION BY SECRETARY.—Not later 

4 than 90 days after receipt of a petition under 

5 subparagraph (A), the Secretary shall approve 

6 the petition, unless the Secretary determines 

7 that a resource assessment of the area would 

8 create an unreasonable risk of harm to the ma9 rine, human, or coastal environment of the 

10 State. 

11 ‘‘(D) FAILURE TO ACT.—If the Secretary 

12 fails to approve or deny a petition in accordance 

13 with subparagraph (C)— 

14 ‘‘(i) the petition shall be considered to 

15 be approved; and 

16 ‘‘(ii) a resource assessment of any ap17 propriate area shall be carried out as soon 

18 as practicable. 

19 ‘‘(E) SUBMISSION TO STATE.—As soon as 

20 practicable after the date on which a petition is 

21 approved under subparagraph (C) or (D), the 

22 Secretary shall— 

23 ‘‘(i) complete the resource assessment 

24 for the area; and 
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1 ‘‘(ii) submit the completed resource 

2 assessment to the State. 

3 ‘‘(4) PETITION FOR LEASING.— 

4 ‘‘(A) IN GENERAL.—On receipt of a re5 source assessment under paragraph (3)(E)(ii), 

6 the Governor of a State in which an affected 

7 area is located, with the consent of the legisla8 ture of the State, may submit to the Secretary 

9 a petition requesting that the Secretary make 

10 available any land that is within the seaward 

11 lateral boundaries of the State (as established 

12 under section 4(a)(2)(A)(ii)) and that is greater 

13 than 20 miles from the coastline of the State 

14 for the conduct of offshore leasing, pre-leasing, 

15 or related activities with respect to— 

16 ‘‘(i) oil and gas leasing; 

17 ‘‘(ii) gas-only leasing; or 

18 ‘‘(iii) any other energy source leasing, 

19 including renewable energy leasing. 

20 ‘‘(B) ACTION BY SECRETARY.—Not later 

21 than 90 days after receipt of a petition under 

22 subparagraph (A), the Secretary shall approve 

23 the petition, unless the Secretary determines 

24 that leasing the area would create an unreason-
22 

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1 able risk of harm to the marine, human, or 

2 coastal environment of the State. 

3 ‘‘(C) FAILURE TO ACT.—If the Secretary 

4 fails to approve or deny a petition in accordance 

5 with subparagraph (B)— 

6 ‘‘(i) the petition shall be considered to 

7 be approved; and 

8 ‘‘(ii) any appropriate area shall be 

9 made available for oil and gas leasing, gas10 only leasing, or any other energy source 

11 leasing, including renewable energy leasing. 

12 ‘‘(5) REVENUE SHARING.— 

13 ‘‘(A) IN GENERAL.—Beginning on the date 

14 on which production begins in an area under 

15 this subsection, the State shall, without further 

16 appropriation, share in any qualified outer Con17 tinental Shelf revenues of the production under 

18 section 32. 

19 ‘‘(B) APPLICABLE LAW.— 

20 ‘‘(i) IN GENERAL.—Except as pro21 vided in clause (ii), a State shall not be re22 quired to comply with subsections (c) and 

23 (d) of section 32 to share in qualified outer 

24 Continental Shelf revenues under subpara25 graph (A). 
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1 ‘‘(ii) EXCEPTION.—Of any qualified 

2 outer Continental Shelf revenues received 

3 by a State (including a political subdivision 

4 of a State) under subparagraph (A), at 

5 least 25 percent shall be used for 1 or 

6 more of the purposes described in section 

7 32(d)(1). 

8 ‘‘(6) EFFECT.—Nothing in this subsection af9 fects any right relating to an area described in para10 graph (1) or (2) under a lease that was in existence 

11 on the day before the date of enactment of this sub12 section.’’. 

13 SEC. 5. ALTERNATE ENERGY-RELATED USES ON THE 

14 OUTER CONTINENTAL SHELF. 

15 (a) AMENDMENT TO OUTER CONTINENTAL SHELF

16 LANDS ACT.—Section 8 of the Outer Continental Shelf 

17 Lands Act (43 U.S.C. 1337) is amended by adding at the 

18 end the following: 

19 ‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF-WAY FOR

20 ENERGY AND RELATED PURPOSES.— 

21 ‘‘(1) IN GENERAL.—The Secretary, in consulta22 tion with the Secretary of the Department in which 

23 the Coast Guard is operating and other relevant de24 partments and agencies of the Federal Government, 

25 may grant a lease, easement, or right-of-way on the 
24 

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1 outer Continental Shelf for activities not otherwise 

2 authorized under this Act, the Deepwater Port Act 

3 of 1974 (33 U.S.C. 1501 et seq.), the Ocean Ther4 mal Energy Conversion Act of 1980 (42 U.S.C. 

5 9101 et seq.), or other applicable law, if those activi6 ties— 

7 ‘‘(A) support exploration, development, 

8 production, transportation, or storage of oil, 

9 natural gas, or other minerals; 

10 ‘‘(B) produce or support production, trans11 portation, or transmission of energy from 

12 sources other than oil and gas; or 

13 ‘‘(C) use, for energy-related or marine-re14 lated purposes, facilities in use on or before the 

15 date of enactment of this subsection for activi16 ties authorized under this Act. 

17 ‘‘(2) PAYMENTS.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 establish, by rule or agreement with the party 

20 to which the easement or right-of-way is grant21 ed under this subsection, reasonable forms of 

22 payment for the easement or right-of-way, in23 cluding a fee, rental, bonus, or other payment. 
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1 ‘‘(B) ASSESSMENT.—A payment under 

2 subparagraph (A) shall not be assessed on the 

3 basis of throughput or production. 

4 ‘‘(C) PAYMENTS TO STATES.—If a lease, 

5 easement, right-of-way, license, or permit under 

6 this subsection covers a specific tract of, or re7 gards a facility located on, the outer Conti8 nental Shelf and is not an easement or right9 of-way for transmission or transportation of en10 ergy, minerals, or other natural resources, the 

11 Secretary shall pay 50 percent of any amount 

12 received from the holder of the lease, easement, 

13 right-of-way, license, or permit to the State off 

14 the shore of which the geographic center of the 

15 area covered by the lease, easement, right-of16 way, license, permit, or facility is located. 

17 ‘‘(3) CONSULTATION.—Before exercising au18 thority under this subsection, the Secretary shall 

19 consult with the Secretary of Defense and other ap20 propriate agencies concerning issues related to na21 tional security and navigational obstruction. 

22 ‘‘(4) COMPETITIVE OR NONCOMPETITIVE

23 BASIS.— 

24 ‘‘(A) IN GENERAL.—The Secretary may 

25 issue a lease, easement, or right-of-way under 
26 

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1 paragraph (1) on a competitive or noncompeti2 tive basis. 

3 ‘‘(B) CONSIDERATIONS.—In determining 

4 whether a lease, easement, or right-of-way shall 

5 be granted competitively or noncompetitively, 

6 the Secretary shall consider such factors as— 

7 ‘‘(i) prevention of waste and conserva8 tion of natural resources; 

9 ‘‘(ii) the economic viability of an en10 ergy project; 

11 ‘‘(iii) protection of the environment; 

12 ‘‘(iv) the national interest and na13 tional security; 

14 ‘‘(v) human safety; 

15 ‘‘(vi) protection of correlative rights; 

16 and 

17 ‘‘(vii) potential return for the lease, 

18 easement, or right-of-way. 

19 ‘‘(5) REGULATIONS.—Not later than 270 days 

20 after the date of enactment of this subsection, the 

21 Secretary, in consultation with the Secretary of the 

22 Department in which the Coast Guard is operating 

23 and other relevant agencies of the Federal Govern24 ment and affected States, shall issue any necessary 

25 regulations to ensure— 
27 

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1 ‘‘(A) safety; 

2 ‘‘(B) protection of the environment; 

3 ‘‘(C) prevention of waste; 

4 ‘‘(D) conservation of the natural resources 

5 of the outer Continental Shelf; 

6 ‘‘(E) protection of national security inter7 ests; and 

8 ‘‘(F) protection of correlative rights in the 

9 outer Continental Shelf. 

10 ‘‘(6) SECURITY.—The Secretary shall require 

11 the holder of a lease, easement, or right-of-way 

12 granted under this subsection— 

13 ‘‘(A) to furnish a surety bond or other 

14 form of security, as prescribed by the Secretary; 

15 and 

16 ‘‘(B) to comply with such other require17 ments as the Secretary considers necessary to 

18 protect the interests of the United States. 

19 ‘‘(7) EFFECT OF SUBSECTION.—Nothing in this 

20 subsection displaces, supersedes, limits, or modifies 

21 the jurisdiction, responsibility, or authority of any 

22 Federal or State agency under any other Federal 

23 law. 
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1 ‘‘(8) APPLICABILITY.—This subsection does not 

2 apply to any area on the outer Continental Shelf 

3 designated as a National Marine Sanctuary.’’. 

4 (b) CONFORMING AMENDMENT.—Section 8 of the 

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

6 amended by striking the section heading and inserting the 

7 following: ‘‘LEASES, EASEMENTS, AND RIGHTS-OF8 WAY ON THE OUTER CONTINENTAL SHELF.—’’. 

9 (c) SAVINGS PROVISION.—Nothing in the amendment 

10 made by subsection (a) requires any resubmittal of docu11 ments previously submitted or any reauthorization of ac12 tions previously authorized, with respect to any project— 

13 (1) for which offshore test facilities have been 

14 constructed before the date of enactment of this Act; 

15 or 

16 (2) for which a request for proposals has been 

17 issued by a public authority. 

18 SEC. 6. REGULATIONS. 

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

20 issue such regulations as are necessary to carry out this 

21 Act and the amendments made by this Act, including reg22 ulations establishing procedures for entering into gas-only 

23 leases. 
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1 (b) GAS-ONLY LEASES.—In issuing regulations es2 tablishing procedures for entering into gas-only leases, the 

3 Secretary shall— 

4 (1) ensure that gas-only leases under the Outer 

5 Continental Shelf Lands Act (43 U.S.C. 1331 et 

6 seq.) are not available in a State that (as of the day 

7 before the date of enactment of this Act) did not 

8 contain an affected area (as defined in section 9(a) 

9 of that Act (as amended by section 5(a))); and 

10 (2) define ‘‘natural gas’’ as— 

11 (A) unmixed natural gas; or 

12 (B) any mixture of natural or artificial gas 

13 (including compressed or liquefied petroleum 

14 gas) and condensate recovered from natural 

15 gas. 

Æ