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[DOCID: f:hr575p1.111]
From the House Reports Online via GPO Access
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111th Congress                                            Rept. 111-575
  2d Session            HOUSE OF REPRESENTATIVES                 Part 1
=======================================================================
 
      CONSOLIDATED LAND, ENERGY, AND AQUATIC RESOURCES ACT OF 2010 

                                _______
                                

 July 28, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3534]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 3534) to provide greater efficiencies, transparency, 
returns, and accountability in the administration of Federal 
mineral and energy resources by consolidating administration of 
various Federal energy minerals management and leasing programs 
into one entity to be known as the Office of Federal Energy and 
Minerals Leasing of the Department of the Interior, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Consolidated Land, 
Energy, and Aquatic Resources Act of 2010''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

      TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES

Sec. 101. Bureau of Energy and Resource Management.
Sec. 102. Bureau of Safety and Environmental Enforcement.
Sec. 103. Office of Natural Resources Revenue.
Sec. 104. Ethics.
Sec. 105. References.
Sec. 106. Abolishment of Minerals Management Service.
Sec. 107. Conforming amendment.
Sec. 108. Outer Continental Shelf Safety and Environmental Advisory 
Board.

               TITLE II--FEDERAL OIL AND GAS DEVELOPMENT

 Subtitle A--Safety, Environmental, and Financial Reform of the Outer 
                      Continental Shelf Lands Act

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. National policy for the Outer Continental Shelf.
Sec. 204. Jurisdiction of laws on the Outer Continental Shelf.
Sec. 205. Outer Continental Shelf leasing standard.
Sec. 206. Leases, easements, and rights-of-way.
Sec. 207. Disposition of revenues.
Sec. 208. Exploration plans.
Sec. 209. Outer Continental Shelf leasing program.
Sec. 210. Environmental studies.
Sec. 211. Safety regulations.
Sec. 212. Enforcement of safety and environmental regulations.
Sec. 213. Judicial review.
Sec. 214. Remedies and penalties.
Sec. 215. Uniform planning for Outer Continental Shelf.
Sec. 216. Oil and gas information program.
Sec. 217. Limitation on royalty-in-kind program.
Sec. 218. Restrictions on employment.
Sec. 219. Repeal of royalty relief provisions.
Sec. 220. Manning and buy- and build-American requirements.
Sec. 221. National Commission on Outer Continental Shelf Oil Spill 
Prevention.

Subtitle B--Safety, Environmental, and Financial Reform of the Federal 
                  Onshore Oil and Gas Leasing Program

Sec. 231. Diligent development.
Sec. 232. Reporting requirements.
Sec. 233. Notice requirements.
Sec. 234. Oil and gas leasing system.
Sec. 235. Electronic reporting.
Sec. 236. Best management practices.
Sec. 237. Surface disturbance, reclamation.
Sec. 238. Wildlife sustainability.
Sec. 239. Online availability to the public of information relating to 
oil and gas chemical use.
Sec. 240. Limitation on royalty-in-kind program.
Sec. 241. Environmental review.
Sec. 242. Federal lands uranium leasing.

           Subtitle C--Royalty Relief for American Consumers

Sec. 251. Short title.
Sec. 252. Eligibility for new leases and the transfer of leases.
Sec. 253. Price thresholds for royalty suspension provisions.

                 TITLE III--OIL AND GAS ROYALTY REFORM

Sec. 301. Amendments to definitions.
Sec. 302. Compliance reviews.
Sec. 303. Clarification of liability for royalty payments.
Sec. 304. Required recordkeeping.
Sec. 305. Fines and penalties.
Sec. 306. Interest on overpayments.
Sec. 307. Adjustments and refunds.
Sec. 308. Conforming amendment.
Sec. 309. Obligation period.
Sec. 310. Notice regarding tolling agreements and subpoenas.
Sec. 311. Appeals and final agency action.
Sec. 312. Assessments.
Sec. 313. Collection and production accountability.
Sec. 314. Natural gas reporting.
Sec. 315. Penalty for late or incorrect reporting of data.
Sec. 316. Required recordkeeping.
Sec. 317. Shared civil penalties.
Sec. 318. Applicability to other minerals.
Sec. 319. Entitlements.

TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION AND HISTORIC 
                           PRESERVATION FUNDS

              Subtitle A--Land and Water Conservation Fund

Sec. 401. Amendments to the Land and Water Conservation Fund Act of 
1965.
Sec. 402. Extension of the Land and Water Conservation Fund.
Sec. 403. Permanent funding.

            Subtitle B--National Historic Preservation Fund

Sec. 411. Permanent funding.

                TITLE V--ALTERNATIVE ENERGY DEVELOPMENT

Sec. 501. Commercial wind and solar leasing program.
Sec. 502. Land management.
Sec. 503. Revenues.
Sec. 504. Recordkeeping and reporting requirements.
Sec. 505. Audits.
Sec. 506. Trade secrets.
Sec. 507. Interest and substantial underreporting assessments.
Sec. 508. Indian savings provision.
Sec. 509. Transmission savings provision.

                  TITLE VI--COORDINATION AND PLANNING

Sec. 601. Regional coordination.
Sec. 602. Regional Coordination Councils.
Sec. 603. Regional strategic plans.
Sec. 604. Regulations.
Sec. 605. Ocean Resources Conservation and Assistance Fund.
Sec. 606. Waiver.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the 
oil and gas industry.
Sec. 702. Conservation fee.
Sec. 703. Leasing on Indian lands.
Sec. 704. Offshore aquaculture clarification.
Sec. 705. Outer Continental Shelf State boundaries.
Sec. 706. Liability for damages to national wildlife refuges.
Sec. 707. Strengthening coastal State oil spill planning and response.
Sec. 708. Information sharing.
Sec. 709. Repeal of funding.
Sec. 710. Limitation on use of funds.
Sec. 711. Additional public-right-to-know requirements.
Sec. 712. Federal response to State proposals to protect State lands 
and waters.

                 TITLE VIII--GULF OF MEXICO RESTORATION

Sec. 801. Gulf of Mexico restoration program.

               TITLE IX--GEOTHERMAL PRODUCTION EXPANSION

Sec. 901. Short title.
Sec. 902. Findings.
Sec. 903. Noncompetitive leasing of adjoining areas for development of 
geothermal resources.

SEC. 2. DEFINITIONS.

  For the purposes of this Act:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
          (2) Affected indian tribe.--The term ``affected Indian 
        tribe'' means an Indian tribe that has federally reserved 
        rights that are affirmed by treaty, statute, Executive order, 
        Federal court order, or other Federal law in the area at issue.
          (3) Alternative energy.--The term ``alternative energy'' 
        means electricity generated by a renewable energy resource.
          (4) Coastal state.--The term ``coastal State'' has the 
        meaning given the term ``coastal state'' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
          (5) Department.--The term ``Department'' means the Department 
        of the Interior, except as the context indicates otherwise.
          (6) Ecosystem-based management.--The term ``ecosystem-based 
        management'' means an integrated approach to management that--
                  (A) considers the entire ecosystem, including humans, 
                and accounts for interactions among the ecosystem, the 
                range of activities affecting the ecosystem, and the 
                management of such activities;
                  (B) aims to maintain ecosystems in a healthy, 
                productive, sustainable, and resilient condition so 
                that they can provide the services humans want and 
                need;
                  (C) emphasizes the protection of ecosystem structure, 
                function, patterns, and important processes;
                  (D) considers the impacts, including cumulative 
                impacts, of the range of activities affecting an 
                ecosystem that fall within geographical boundaries of 
                the ecosystem;
                  (E) explicitly accounts for the interconnectedness 
                within an ecosystem, such as food webs, and 
                acknowledges the interconnectedness among systems, such 
                as between air, land, and sea; and
                  (F) integrates ecological, social, economic, 
                cultural, and institutional perspectives, recognizing 
                their strong interdependencies.
          (7) Federal land management agency.--The term ``Federal land 
        management agency'' means--
                  (A) the Bureau of Land Management;
                  (B) the Forest Service;
                  (C) the United States Fish and Wildlife Service; and
                  (D) the National Park Service.
          (8) Function.--The term ``function'' includes authorities, 
        powers, rights, privileges, immunities, programs, projects, 
        activities, duties, and responsibilities.
          (9) Important ecological area.--The term ``important 
        ecological area'' means an area that contributes significantly 
        to local or larger marine ecosystem health or is an especially 
        unique or sensitive marine ecosystem.
          (10) Indian land.--The term ``Indian land'' has the meaning 
        given the term in section 502(a) of title V of Public Law 109-
        58 (25 U.S.C. 3501(2)).
          (11) Marine ecosystem health.--The term ``marine ecosystem 
        health'' means the ability of an ecosystem in ocean and coastal 
        waters to support and maintain patterns, important processes, 
        and productive, sustainable, and resilient communities of 
        organisms, having a species composition, diversity, and 
        functional organization resulting from the natural habitat of 
        the region, such that it is capable of supporting a variety of 
        activities and providing a complete range of ecological 
        benefits. Such an ecosystem would be characterized by a variety 
        of factors, including--
                  (A) a complete diversity of native species and 
                habitat wherein each native species is able to maintain 
                an abundance, population structure, and distribution 
                supporting its ecological and evolutionary functions, 
                patterns, and processes; and
                  (B) a physical, chemical, geological, and microbial 
                environment that is necessary to achieve such 
                diversity.
          (12) Mineral.--The term ``mineral'' has the same meaning that 
        the term ``minerals'' has in section 2(q) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331(q)).
          (13) Nonrenewable energy resource.--The term ``nonrenewable 
        energy resource'' means oil and natural gas.
          (14) Operator.--The term ``operator'' means--
                  (A) the lessee; or
                  (B) a person designated by the lessee as having 
                control or management of operations on the leased area 
                or a portion thereof, who is--
                          (i) approved by the Secretary, acting through 
                        the Bureau of Energy and Resource Management; 
                        or
                          (ii) the holder of operating rights under an 
                        assignment of operating rights that is approved 
                        by the Secretary, acting through the Bureau of 
                        Energy and Resource Management.
          (15) Outer continental shelf.--The term ``Outer Continental 
        Shelf'' has the meaning that the term ``outer Continental 
        Shelf'' has in the Outer Continental Shelf Lands Act (43 U.S.C. 
        1331 et seq.).
          (16) Public land state.--The term ``public land State'' 
        means--
                  (A) each of the eleven contiguous Western States (as 
                that term is defined in section 103 of the Federal Land 
                Policy and Management Act of 1976 (43 U.S.C. 1702)); 
                and
                  (B) Alaska.
          (17) Regional ocean partnership.--The term ``Regional Ocean 
        Partnership'' means voluntary, collaborative management 
        initiatives developed and entered into by the Governors of two 
        or more coastal States or created by an interstate compact for 
        the purpose of addressing more than one ocean, coastal, or 
        Great Lakes issue and to implement policies and activities 
        identified under special area management plans under the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) or 
        other agreements developed and signed by the Governors.
          (18) Renewable energy resource.--The term ``renewable energy 
        resource'' means each of the following:
                  (A) Wind energy.
                  (B) Solar energy.
                  (C) Geothermal energy.
                  (D) Biomass or landfill gas.
                  (E) Marine and hydrokinetic renewable energy, as that 
                term is defined in section 632 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17211).
          (19) Secretaries.--The term ``Secretaries'' means the 
        Secretary of the Interior and the Secretary of Commerce.
          (20) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, except as otherwise provided in this Act.
          (21) Surface use plan of operations.--The term ``surface use 
        plan of operations'' means a plan for surface use, disturbance, 
        and reclamation of Federal lands for energy development that is 
        submitted by a lessee and approved by the relevant land 
        management agency.
          (22) Terms defined in other law.--Each of the terms ``Federal 
        land'', ``lease'', ``lease site'', and ``mineral leasing law'' 
        has the meaning that term has under the Federal Oil and Gas 
        Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), except 
        that such terms shall also apply to all minerals and renewable 
        energy resources in addition to oil and gas.
          (23) Tribe.--The term ``tribe'' has the same meaning as the 
        term ``Indian tribe'' has in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).

      TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES

SEC. 101. BUREAU OF ENERGY AND RESOURCE MANAGEMENT.

  (a) Establishment.--There is established in the Department of the 
Interior a Bureau of Energy and Resource Management (referred to in 
this section as the ``Bureau'') to be headed by a Director of Energy 
and Resource Management (referred to in this section as the 
``Director'').
  (b) Director.--
          (1) Appointment.--The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate, on 
        the basis of--
                  (A) professional background, demonstrated competence, 
                and ability; and
                  (B) capacity to--
                          (i) administer the provisions of this Act; 
                        and
                          (ii) ensure that the fiduciary duties of the 
                        United States Government on behalf of the 
                        people of the United States, as they relate to 
                        development of nonrenewable and renewable 
                        energy and mineral resources, are duly met.
          (2) Compensation.--The Director shall be compensated at the 
        rate provided for Level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
  (c) Duties.--
          (1) In general.--Except as provided in paragraph (4), the 
        Secretary shall carry out through the Bureau all functions, 
        powers, and duties vested in the Secretary relating to the 
        administration of a comprehensive program of nonrenewable and 
        renewable energy and mineral resources management--
                  (A) on the Outer Continental Shelf, pursuant to the 
                Outer Continental Shelf Lands Act as amended by this 
                Act (43 U.S.C. 1331 et seq.);
                  (B) on Federal public lands, pursuant to the Mineral 
                Leasing Act (30 U.S.C. 181 et seq.) and the Geothermal 
                Steam Act of 1970 (30 U.S.C. 1001 et seq.);
                  (C) on acquired Federal lands, pursuant to the 
                Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 
                et seq.) and the Geothermal Steam Act of 1970 (30 
                U.S.C. 1001 et seq.);
                  (D) in the National Petroleum Reserve in Alaska, 
                pursuant to the Naval Petroleum Reserves Production Act 
                of 1976 (42 U.S.C. 6501 et seq.);
                  (E) on any Federal land pursuant to any mineral 
                leasing law; and
                  (F) pursuant to this Act and all other applicable 
                Federal laws, including the administration and approval 
                of all instruments and agreements required to ensure 
                orderly, safe, and environmentally responsible 
                nonrenewable and renewable energy and mineral resources 
                development activities.
          (2) Specific authorities.--The Director shall promulgate and 
        implement regulations for the proper issuance of leases for the 
        exploration, development, and production of nonrenewable and 
        renewable energy and mineral resources, and for the issuance of 
        permits under such leases, on the Outer Continental Shelf and 
        lands managed by the Bureau of Land Management, the Forest 
        Service, or any other Federal land management agency, including 
        regulations relating to resource identification, access, 
        evaluation, and utilization.
          (3) Independent environmental science.--
                  (A) In general.--The Secretary shall create an 
                independent office within the Bureau that--
                          (i) shall report to the Director;
                          (ii) shall be programmatically separate and 
                        distinct from the leasing and permitting 
                        activities of the Bureau; and
                          (iii) shall--
                                  (I) carry out the environmental 
                                studies program under section 20 of the 
                                Outer Continental Shelf Lands Act (43 
                                U.S.C. 1346);
                                  (II) conduct any environmental 
                                analyses necessary for the programs 
                                administered by the Bureau; and
                                  (III) carry out other functions as 
                                deemed necessary by the Secretary.
                  (B) Consultation.--Studies and analyses carried out 
                by the office created under subparagraph (A) shall be 
                conducted in appropriate and timely consultation with 
                other relevant Federal agencies, including--
                          (i) the Bureau of Safety and Environmental 
                        Enforcement;
                          (ii) the United States Fish and Wildlife 
                        Service;
                          (iii) the United States Geological Survey; 
                        and
                          (iv) the National Oceanic and Atmospheric 
                        Administration.
          (4) Limitation.--The Secretary shall not carry out through 
        the Bureau any function, power, or duty that is--
                  (A) required by section 102 to be carried out through 
                Bureau of Safety and Environmental Enforcement; or
                  (B) required by section 103 to be carried out through 
                the Office of Natural Resources Revenue.
  (d) Comprehensive Data and Analyses on Outer Continental Shelf 
Resources.--
          (1) In general.--
                  (A) Programs.--The Director shall develop and carry 
                out programs for the collection, evaluation, assembly, 
                analysis, and dissemination of data and information 
                that is relevant to carrying out the duties of the 
                Bureau, including studies under section 20 of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1346).
                  (B) Use of data and information.--The Director shall, 
                in carrying out functions pursuant to the Outer 
                Continental Lands Act (43 U.S.C. 1331 et seq.), 
                consider data and information referred to in 
                subparagraph (A) which shall inform the management 
                functions of the Bureau, and shall contribute to a 
                broader coordination of development activities within 
                the contexts of the best available science and marine 
                spatial planning.
          (2) Interagency cooperation.--In carrying out programs under 
        this subsection, the Bureau shall--
                  (A) utilize the authorities of subsection (g) and (h) 
                of section 18 of the Outer Continental Shelf Lands Act 
                (43 U.S.C. 1344);
                  (B) cooperate with appropriate offices in the 
                Department and in other Federal agencies;
                  (C) use existing inventories and mapping of marine 
                resources previously undertaken by the Minerals 
                Management Service, mapping undertaken by the United 
                States Geological Survey and the National Oceanographic 
                and Atmospheric Administration, and information 
                provided by the Department of Defense and other Federal 
                and State agencies possessing relevant data; and
                  (D) use any available data regarding renewable energy 
                potential, navigation uses, fisheries, aquaculture 
                uses, recreational uses, habitat, conservation, and 
                military uses of the Outer Continental Shelf.
  (e) Responsibilities of Land Management Agencies.--Nothing in this 
section shall affect the authorities of the Bureau of Land Management 
under the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
1701 et seq.) or of the Forest Service under the National Forest 
Management Act of 1976 (Public Law 94-588).

SEC. 102. BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT.

  (a) Establishment.--There is established in the Department a Bureau 
of Safety and Environmental Enforcement (referred to in this section as 
the ``Bureau'') to be headed by a Director of Safety and Environmental 
Enforcement (referred to in this section as the ``Director'').
  (b) Director.--
          (1) Appointment.--The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate, on 
        the basis of--
                  (A) professional background, demonstrated competence, 
                and ability; and
                  (B) capacity to administer the provisions of this 
                Act.
          (2) Compensation.--The Director shall be compensated at the 
        rate provided for Level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
  (c) Duties.--
          (1) In general.--The Secretary shall carry out through the 
        Bureau all functions, powers, and duties vested in the 
        Secretary relating to the administration of safety and 
        environmental enforcement activities related to nonrenewable 
        and renewable energy and mineral resources--
                  (A) on the Outer Continental Shelf pursuant to the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
                seq.);
                  (B) on Federal public lands, pursuant to the Mineral 
                Leasing Act (30 U.S.C. 181 et seq.) and the Geothermal 
                Steam Act of 1970 (30 U.S.C. 1001 et seq.);
                  (C) on acquired Federal lands, pursuant to the 
                Mineral Leasing Act for Acquired Lands (30 U.S.C. 351 
                et seq.) and the Geothermal Steam Act of 1970 (30 
                U.S.C. 1001 et seq.);
                  (D) in the National Petroleum Reserve in Alaska, 
                pursuant to the Naval Petroleum Reserves Production Act 
                of 1976 (42 U.S.C. 6501 et seq.); and
                  (E) pursuant to--
                          (i) the Federal Oil and Gas Royalty 
                        Management Act of 1982 (30 U.S.C. 1701 et 
                        seq.);
                          (ii) the Energy Policy Act of 2005 (Public 
                        Law 109-58);
                          (iii) the Federal Oil and Gas Royalty 
                        Simplification and Fairness Act of 1996 (Public 
                        Law 104-185);
                          (iv) the Forest and Rangeland Renewable 
                        Resources Planning Act of 1974 (16 U.S.C. 1600 
                        et seq.);
                          (v) the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1701 et seq.);
                          (vi) this Act; and
                          (vii) all other applicable Federal laws,
                including the authority to develop, promulgate, and 
                enforce regulations to ensure the safe and 
                environmentally sound exploration, development, and 
                production of nonrenewable and renewable energy and 
                mineral resources on the Outer Continental Shelf and 
                onshore federally managed lands.
  (d) Authorities.--In carrying out the duties under this section, the 
Secretary's authorities shall include--
          (1) performing necessary oversight activities to ensure the 
        proper application of environmental reviews, including those 
        conducted pursuant to the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) by the Bureau of Energy and 
        Resource Management in the performance of its duties under the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);
          (2) suspending or prohibiting, on a temporary basis, any 
        operation or activity, including production--
                  (A) on leases held on the Outer Continental Shelf, in 
                accordance with section 5(a)(1) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1334(a)(1)); or
                  (B) on leases or rights-of-way held on Federal lands 
                under any other minerals or energy leasing statute, in 
                accordance with section 302(c) of the Federal Land 
                Policy and Management Act of 1976 (43 U.S.C. 1701 et 
                seq.);
          (3) cancelling any lease, permit, or right-of way--
                  (A) on the Outer Continental Shelf, in accordance 
                with section 5(a)(2) of the Outer Continental Shelf 
                Lands Act (43 U.S.C. 1334(a)(2)); or
                  (B) on onshore Federal lands, in accordance with 
                section 302(c) of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1732(c));
          (4) compelling compliance with applicable worker safety and 
        environmental laws and regulations;
          (5) requiring comprehensive safety and environmental 
        management programs for persons engaged in activities connected 
        with the exploration, development, and production of energy or 
        mineral resources;
          (6) developing and implementing regulations for Federal 
        employees to carry out any inspection or investigation to 
        ascertain compliance with applicable regulations, including 
        health, safety, or environmental regulations;
          (7) collecting, evaluating, assembling, analyzing, and 
        publicly disseminating electronically data and information that 
        is relevant to inspections, failures, or accidents involving 
        equipment and systems used for exploration and production of 
        energy and mineral resources, including human factors 
        associated therewith;
          (8) implementing the Offshore Technology Research and Risk 
        Assessment Program under section 21 of the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1347);
          (9) summoning witnesses and directing the production of 
        evidence;
          (10) levying fines and penalties and disqualifying operators; 
        and
          (11) carrying out any safety, response, and removal 
        preparedness functions.
  (e) Employees.--
          (1) In general.--The Secretary shall ensure that the 
        inspection force of the Bureau consists of qualified, trained 
        employees who meet qualification requirements and adhere to the 
        highest professional and ethical standards.
          (2) Qualifications.--The qualification requirements referred 
        to in paragraph (1)--
                  (A) shall be determined by the Secretary, subject to 
                subparagraph (B); and
                  (B) shall include--
                          (i) three years of practical experience in 
                        oil and gas exploration, development, or 
                        production; or
                          (ii) a degree in an appropriate field of 
                        engineering from an accredited institution of 
                        higher learning.
          (3) Assignment.--In assigning oil and gas inspectors to the 
        inspection and investigation of individual operations, the 
        Secretary shall give due consideration to the extent possible 
        to their previous experience in the particular type of oil and 
        gas operation in which such inspections are to be made.
          (4) Training academy.--
                  (A) In general.--The Secretary shall establish and 
                maintain a National Oil and Gas Health and Safety 
                Academy (referred to in this paragraph as the 
                ``Academy'') as an agency of the Department of the 
                Interior.
                  (B) Functions of academy.--The Secretary, through the 
                Academy, shall be responsible for--
                          (i) the initial and continued training of 
                        both newly hired and experienced oil and gas 
                        inspectors in all aspects of health, safety, 
                        environmental, and operational inspections;
                          (ii) the training of technical support 
                        personnel of the Bureau;
                          (iii) any other training programs for oil and 
                        gas inspectors, Bureau personnel, Department 
                        personnel, or other persons as the Secretary 
                        shall designate; and
                          (iv) certification of the successful 
                        completion of training programs for newly hired 
                        and experienced oil and gas inspectors.
                  (C) Cooperative agreements.--
                          (i) In general.--In performing functions 
                        under this paragraph, and subject to clause 
                        (ii), the Secretary may enter into cooperative 
                        educational and training agreements with 
                        educational institutions, related Federal 
                        academies, other Federal agencies, State 
                        governments, labor organizations, and oil and 
                        gas operators and related industries.
                          (ii) Training requirement.--Such training 
                        shall be conducted by the Academy in accordance 
                        with curriculum needs and assignment of 
                        instructional personnel established by the 
                        Secretary.
                  (D) Use of departmental personnel.--In performing 
                functions under this subsection, the Secretary shall 
                use, to the extent practicable, the facilities and 
                personnel of the Department of the Interior. The 
                Secretary may appoint or assign to the Academy such 
                officers and employees as the Secretary considers 
                necessary for the performance of the duties and 
                functions of the Academy.
          (5) Additional training programs.--
                  (A) In general.--The Secretary shall work with 
                appropriate educational institutions, operators, and 
                representatives of oil and gas workers to develop and 
                maintain adequate programs with educational 
                institutions and oil and gas operators, that are 
                designed--
                          (i) to enable persons to qualify for 
                        positions in the administration of this Act; 
                        and
                          (ii) to provide for the continuing education 
                        of inspectors or other appropriate Departmental 
                        personnel.
                  (B) Financial and technical assistance.--The 
                Secretary may provide financial and technical 
                assistance to educational institutions in carrying out 
                this paragraph.

SEC. 103. OFFICE OF NATURAL RESOURCES REVENUE.

  (a) Establishment.--There is established in the Department an Office 
of Natural Resources Revenue (referred to in this section as the 
``Office'') to be headed by a Director of Natural Resources Revenue 
(referred to in this section as the ``Director'').
  (b) Appointment and Compensation.--
          (1) In general.--The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate, on 
        the basis of--
                  (A) professional competence; and
                  (B) capacity to--
                          (i) administer the provisions of this Act; 
                        and
                          (ii) ensure that the fiduciary duties of the 
                        United States Government on behalf of the 
                        American people, as they relate to development 
                        of nonrenewable and renewable energy and 
                        mineral resources, are duly met.
          (2) Compensation.--The Director shall be compensated at the 
        rate provided for Level V of the Executive Schedule under 
        section 5316 of title 5, United States Code.
  (c) Duties.--
          (1) In general.--The Secretary shall carry out, through the 
        Office--
                  (A) all functions, powers, and duties vested in the 
                Secretary and relating to the administration of the 
                royalty and revenue management functions pursuant to--
                          (i) the Outer Continental Shelf Lands Act (43 
                        U.S.C. 1331 et seq.);
                          (ii) the Mineral Leasing Act (30 U.S.C. 181 
                        et seq.);
                          (iii) the Mineral Leasing Act for Acquired 
                        Lands (30 U.S.C. 351 et seq.);
                          (iv) the Geothermal Steam Act of 1970 (30 
                        U.S.C. 1001 et seq.);
                          (v) the Naval Petroleum Reserves Production 
                        Act of 1976 (42 U.S.C. 6501 et seq.);
                          (vi) the Federal Oil and Gas Royalty 
                        Management Act of 1982 (30 U.S.C. 1701 et 
                        seq.);
                          (vii) the Federal Oil and Gas Royalty 
                        Simplification and Fairness Act of 1996 (Public 
                        Law 104-185);
                          (viii) the Energy Policy Act of 2005 (Public 
                        Law 109-58);
                          (ix) the Forest and Rangeland Renewable 
                        Resources Planning Act of 1974 (16 U.S.C. 1600 
                        et seq.);
                          (x) the Federal Land Policy and Management 
                        Act of 1976 (43 U.S.C. 1701 et seq.); and
                          (xi) this Act and all other applicable 
                        Federal laws; and
                  (B) all functions, powers, and duties previously 
                assigned to the Minerals Management Service (including 
                the authority to develop, promulgate, and enforce 
                regulations) regarding--
                          (i) royalty and revenue collection;
                          (ii) royalty and revenue distribution;
                          (iii) auditing and compliance;
                          (iv) investigation and enforcement of royalty 
                        and revenue regulations; and
                          (v) asset management for onshore and offshore 
                        activities.
  (d) Oversight.--In order to provide transparency and ensure strong 
oversight over the revenue program, the Secretary shall--
          (1) create within the Office an independent audit and 
        oversight program responsible for monitoring the performance of 
        the Office with respect to the duties and functions under 
        subsection (c), and conducting internal control audits of the 
        operations of the Office;
          (2) facilitate the participation of those Indian tribes and 
        States operating pursuant to cooperative agreements or 
        delegations under the Federal Oil and Gas Royalty Management 
        Act of 1982 (30 U.S.C. 1701 et seq.) on all of the management 
        teams, committees, councils, and other entities created by the 
        Office; and
          (3) assure prior consultation with those Indian tribes and 
        States referred to in paragraph (2) in the formulation all 
        policies, procedures, guidance, standards, and rules relating 
        to the functions referred to in subsection (c).

SEC. 104. ETHICS.

  (a) Certification.--The Secretary shall certify annually that all 
Department of the Interior officers and employees having regular, 
direct contact with lessees and operators as a function of their 
official duties are in full compliance with all Federal employee ethics 
laws and regulations under the Ethics in Government Act of 1978 (5 
U.S.C. App.) and part 2635 of title 5, Code of Federal Regulations, and 
all guidance issued under subsection (b).
  (b) Guidance.--Not later than 90 days after the date of enactment of 
this Act, the Secretary shall issue supplementary ethics guidance for 
the employees for which certification is required under subsection (a).

SEC. 105. REFERENCES.

  (a) Bureau of Energy and Resource Management.--Any reference in any 
law, rule, regulation, directive, instruction, certificate, or other 
official document, in force immediately before the enactment of this 
Act--
          (1) to the Minerals Management Service that pertains to any 
        of the duties and authorities referred to in section 101 is 
        deemed to refer and apply to the Bureau of Energy and Resource 
        Management established by section 101;
          (2) to the Director of the Minerals Management Service that 
        pertains to any of the duties and authorities referred to in 
        section 101 is deemed to refer and apply to the Director of the 
        Bureau of Energy and Resource Management;
          (3) to any other position in the Minerals Management Service 
        that pertains to any of the duties and authorities referred to 
        in section 101 is deemed to refer and apply to that same or 
        equivalent position in the Bureau of Energy and Resource 
        Management;
          (4) to the Bureau of Land Management that pertains to any of 
        the duties and authorities referred to in section 101 is deemed 
        to refer and apply to the Bureau of Energy and Resource 
        Management;
          (5) to the Director of the Bureau of Land Management that 
        pertains to any of the duties and authorities referred to in 
        section 101 is deemed to refer and apply to the Director of the 
        Bureau of Energy and Resource Management; and
          (6) to any other position in the Bureau of Land Management 
        that pertains to any of the duties and authorities referred to 
        in section 101 is deemed to refer and apply to that same or 
        equivalent position in the Bureau of Energy and Resource 
        Management.
  (b) Bureau of Safety and Environmental Enforcement.--Any reference in 
any law, rule, regulation, directive, instruction, certificate or other 
official document in force immediately before the enactment of this 
Act--
          (1) to the Minerals Management Service that pertains to any 
        of the duties and authorities referred to in section 102 is 
        deemed to refer and apply to the Bureau of Safety and 
        Environmental Enforcement established by section 102;
          (2) to the Director of the Minerals Management Service that 
        pertains to any of the duties and authorities referred to in 
        section 102 is deemed to refer and apply to the Director of the 
        Bureau of Safety and Environmental Enforcement;
          (3) to any other position in the Minerals Management Service 
        that pertains to any of the duties and authorities referred to 
        in section 102 is deemed to refer and apply to that same or 
        equivalent position in the Bureau of Safety and Environmental 
        Enforcement;
          (4) to the Bureau of Land Management that pertains to any of 
        the duties and authorities referred to in section 102 is deemed 
        to refer and apply to the Bureau of Safety and Environmental 
        Enforcement;
          (5) to the Director of the Bureau of Land Management that 
        pertains to any of the duties and authorities referred to in 
        section 102 is deemed to refer and apply to the Director of the 
        Bureau of Safety and Environmental Enforcement; and
          (6) to any other position in the Bureau of Land Management 
        that pertains to any of the duties and authorities referred to 
        in section 102 is deemed to refer and apply to that same or 
        equivalent position in the Bureau of Safety and Environmental 
        Enforcement.
  (c) Office of Natural Resources Revenue.--Any reference in any law, 
rule, regulation, directive, or instruction, or certificate or other 
official document, in force immediately prior to enactment--
          (1) to the Minerals Management Service that pertains to any 
        of the duties and authorities referred to in section 103 is 
        deemed to refer and apply to the Office of Natural Resources 
        Revenue established by section 103;
          (2) to the Director of the Minerals Management Service that 
        pertains to any of the duties and authorities referred to in 
        section 103 is deemed to refer and apply to the Director of 
        Natural Resources Revenue; and
          (3) to any other position in the Minerals Management Service 
        that pertains to any of the duties and authorities referred to 
        in section 103 is deemed to refer and apply to that same or 
        equivalent position in the Office of Natural Resources Revenue.

SEC. 106. ABOLISHMENT OF MINERALS MANAGEMENT SERVICE.

  (a) Abolishment.--The Minerals Management Service (in this section 
referred to as the ``Service'') is abolished.
  (b) Completed Administrative Actions.--
          (1) In general.--Completed administrative actions of the 
        Service shall not be affected by the enactment of this Act, but 
        shall continue in effect according to their terms until 
        amended, modified, superseded, terminated, set aside, or 
        revoked in accordance with law by an officer of the United 
        States or a court of competent jurisdiction, or by operation of 
        law.
          (2) Completed administrative action defined.--For purposes of 
        paragraph (1), the term ``completed administrative action'' 
        includes orders, determinations, rules, regulations, personnel 
        actions, permits, agreements, grants, contracts, certificates, 
        licenses, registrations, and privileges.
  (c) Pending Proceedings.--Subject to the authority of the Secretary 
of the Interior and the officers of the Department of the Interior 
under this Act--
          (1) pending proceedings in the Service, including notices of 
        proposed rulemaking, and applications for licenses, permits, 
        certificates, grants, and financial assistance, shall continue, 
        notwithstanding the enactment of this Act or the vesting of 
        functions of the Service in another agency, unless discontinued 
        or modified under the same terms and conditions and to the same 
        extent that such discontinuance or modification could have 
        occurred if this Act had not been enacted; and
          (2) orders issued in such proceedings, and appeals therefrom, 
        and payments made pursuant to such orders, shall issue in the 
        same manner and on the same terms as if this Act had not been 
        enacted, and any such orders shall continue in effect until 
        amended, modified, superseded, terminated, set aside, or 
        revoked by an officer of the United States or a court of 
        competent jurisdiction, or by operation of law.
  (d) Pending Civil Actions.--Subject to the authority of the Secretary 
of the Interior or any officer of the Department of the Interior under 
this Act, pending civil actions shall continue notwithstanding the 
enactment of this Act, and in such civil actions, proceedings shall be 
had, appeals taken, and judgments rendered and enforced in the same 
manner and with the same effect as if such enactment had not occurred.
  (e) References.--References relating to the Service in statutes, 
Executive orders, rules, regulations, directives, or delegations of 
authority that precede the effective date of this Act are deemed to 
refer, as appropriate, to the Department, to its officers, employees, 
or agents, or to its corresponding organizational units or functions. 
Statutory reporting requirements that applied in relation to the 
Service immediately before the effective date of this Act shall 
continue to apply.

SEC. 107. CONFORMING AMENDMENT.

  Section 5316 of title 5, United States Code, is amended by striking 
``Director, Bureau of Mines, Department of the Interior.'' and 
inserting the following new items:
          ``Director, Bureau of Energy and Resource Management, 
        Department of the Interior.
          ``Director, Bureau of Safety and Environmental Enforcement, 
        Department of the Interior.
          ``Director, Office of Natural Resources Revenue, Department 
        of the Interior.''.

SEC. 108. OUTER CONTINENTAL SHELF SAFETY AND ENVIRONMENTAL ADVISORY 
                    BOARD.

  (a) Establishment.--The Secretary shall establish, under the Federal 
Advisory Committee Act, an Outer Continental Shelf Safety and 
Environmental Advisory Board (referred to in this section as the 
``Board''), to provide the Secretary and the Directors of the bureaus 
established by this title with independent scientific and technical 
advice on safe and environmentally compliant nonrenewable and renewable 
energy and mineral resource exploration, development, and production 
activities.
  (b) Membership.--
          (1) Size.--The Board shall consist of not more than 12 
        members, chosen to reflect a range of expertise in scientific, 
        engineering, management, environmental, and other disciplines 
        related to safe and environmentally compliant renewable and 
        nonrenewable energy and mineral resource exploration, 
        development, and production activities. The Secretary shall 
        consult with the National Academy of Sciences and the National 
        Academy of Engineering to identify potential candidates for the 
        Board.
          (2) Term.--The Secretary shall appoint Board members to 
        staggered terms of not more than 4 years, and shall not appoint 
        a member for more than 2 consecutive terms.
          (3) Balance.--In appointing members to the Board, the 
        Secretary shall ensure a balanced representation of industry- 
        and nonindustry-related interests.
  (c) Chair.--The Secretary shall appoint the Chair for the Board.
  (d) Meetings.--The Board shall meet not less than 3 times per year 
and, at least once per year, shall host a public forum to review and 
assess the overall safety and environmental performance of Outer 
Continental Shelf nonrenewable and renewable energy and mineral 
resource activities.
  (e) Reports.--Reports of the Board shall be submitted to the Congress 
and made available to the public in electronically accessible form.
  (f) Travel Expenses.--Members of the Board, other than full-time 
employees of the Federal Government, while attending meeting of the 
Board or while otherwise serving at the request of the Secretary or the 
Director while serving away from their homes or regular places of 
business, may be allowed travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code, for individuals in the Government serving without pay.

               TITLE II--FEDERAL OIL AND GAS DEVELOPMENT

 Subtitle A--Safety, Environmental, and Financial Reform of the Outer 
                      Continental Shelf Lands Act

SEC. 201. SHORT TITLE.

  This subtitle may be cited as the ``Outer Continental Shelf Lands Act 
Amendments of 2010''.

SEC. 202. DEFINITIONS.

  Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended by adding at the end the following:
  ``(r) The term `safety case' means a body of evidence that provides a 
basis for determining whether a system is adequately safe for a given 
application in a given operating environment.''.

SEC. 203. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.

  Section 3 of the Outer Continental Shelf Lands Act (43 U.S.C. 1332) 
is amended--
          (1) by striking paragraph (3) and inserting the following:
          ``(3) the outer Continental Shelf is a vital national 
        resource reserve held by the Federal Government for the public, 
        that should be managed in a manner that--
                  ``(A) recognizes the need of the United States for 
                domestic sources of energy, food, minerals, and other 
                resources;
                  ``(B) minimizes the potential impacts of development 
                of those resources on the marine and coastal 
                environment and on human health and safety; and
                  ``(C) acknowledges the long-term economic value to 
                the United States of the balanced and orderly 
                management of those resources that safeguards the 
                environment and respects the multiple values and uses 
                of the outer Continental Shelf;'';
          (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon;
          (3) in paragraph (5), by striking ``should be'' and inserting 
        ``shall be'', and striking ``; and'' and inserting a semicolon;
          (4) by redesignating paragraph (6) as paragraph (7);
          (5) by inserting after paragraph (5) the following:
          ``(6) exploration, development, and production of energy and 
        minerals on the outer Continental Shelf should be allowed only 
        when those activities can be accomplished in a manner that 
        minimizes--
                  ``(A) harmful impacts to life (including fish and 
                other aquatic life) and health;
                  ``(B) damage to the marine, coastal, and human 
                environments and to property; and
                  ``(C) harm to other users of the waters, seabed, or 
                subsoil; and''; and
          (6) in paragraph (7) (as so redesignated), by--
                  (A) striking ``should be'' and inserting ``shall 
                be'';
                  (B) inserting ``best available'' after ``using''; and
                  (C) striking ``or minimize''.

SEC. 204. JURISDICTION OF LAWS ON THE OUTER CONTINENTAL SHELF.

  Section 4(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1333(a)(1)) is amended by--
          (1) inserting ``or producing or supporting production of 
        energy from sources other than oil and gas'' after 
        ``therefrom'';
          (2) inserting ``or transmitting such energy'' after 
        ``transporting such resources''; and
          (3) inserting ``and other energy'' after ``That mineral''.

SEC. 205. OUTER CONTINENTAL SHELF LEASING STANDARD.

  (a) In General.--Section 5 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1334) is amended--
          (1) in subsection (a), by striking ``The Secretary may at any 
        time'' and inserting ``The Secretary shall'';
          (2) in the second sentence of subsection (a), by adding after 
        ``provide for'' the following: ``operational safety, the 
        protection of the marine and coastal environment, and'';
          (3) in subsection (a), by inserting ``and the Secretary of 
        Commerce with respect to matters that may affect the marine and 
        coastal environment'' after ``which may affect competition'';
          (4) in clause (ii) of subsection (a)(2)(A), by striking ``a 
        reasonable period of time'' and inserting ``30 days'';
          (5) in subsection (a)(7), by inserting ``in a manner that 
        minimizes harmful impacts to the marine and coastal 
        environment'' after ``lease area'';
          (6) in subsection (a), by striking ``and'' after the 
        semicolon at the end of paragraph (7), redesignating paragraph 
        (8) as paragraph (12), and inserting after paragraph (7) the 
        following:
          ``(8) for independent third-party certification requirements 
        of safety systems related to well control, such as blowout 
        preventers;
          ``(9) for performance requirements for blowout preventers, 
        including quantitative risk assessment standards, subsea 
        testing, and secondary activation methods;
          ``(10) for independent third-party certification requirements 
        of well casing and cementing programs and procedures;
          ``(11) for the establishment of mandatory safety and 
        environmental management systems by operators on the Outer 
        Continental Shelf;'';
          (7) in subsection (a), by striking the period at the end of 
        paragraph (12), as so redesignated, and inserting ``; and'', 
        and by adding at the end the following:
          ``(13) ensuring compliance with other applicable 
        environmental and natural resource conservation laws.''; and
          (8) by adding at the end the following new subsection:
  ``(k) Documents Incorporated by Reference.--Any documents 
incorporated by reference in regulations promulgated by the Secretary 
pursuant to this Act shall be made available to the public, free of 
charge, on a website maintained by the Secretary.''.
  (b) Conforming Amendment.--Subsection (g) of section 25 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1351), as redesignated by 
section 215(4) of this Act, is further amended by striking ``paragraph 
(8) of section 5(a) of this Act'' each place it appears and inserting 
``paragraph (12) of section 5(a) of this Act''.

SEC. 206. LEASES, EASEMENTS, AND RIGHTS-OF-WAY.

  (a) Financial Assurance and Fiscal Responsibility.--Section 8 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding 
at the end the following:
  ``(q) Review of Bond and Surety Amounts.--Not later than May 1, 2011, 
and every 5 years thereafter, the Secretary shall review the minimum 
financial responsibility requirements for leases issued under this 
section and shall ensure that any bonds or surety required are adequate 
to comply with the requirements of this Act or the Oil Pollution Act of 
1990 (33 U.S.C. 2701 et seq.).
  ``(r) Periodic Fiscal Review and Report.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection and every 3 years thereafter, the 
        Secretary shall carry out a review and prepare a report setting 
        forth--
                  ``(A)(i) the royalty and rental rates included in new 
                offshore oil and gas leases; and
                  ``(ii) the rationale for the rates;
                  ``(B) whether, in the view of the Secretary, the 
                royalty and rental rates described in subparagraph (A) 
                will yield a fair return to the public while promoting 
                the production of oil and gas resources in a timely 
                manner;
                  ``(C)(i) the minimum bond or surety amounts required 
                pursuant to offshore oil and gas leases; and
                  ``(ii) the rationale for the minimum amounts;
                  ``(D) whether the bond or surety amounts described in 
                subparagraph (C) are adequate to comply with subsection 
                (q); and
                  ``(E) whether the Secretary intends to modify the 
                royalty or rental rates, or bond or surety amounts, 
                based on the review.
          ``(2) Public participation.--In carrying out a review and 
        preparing a report under paragraph (1), the Secretary shall 
        provide to the public an opportunity to participate.
          ``(3) Report deadline.--Not later than 30 days after the date 
        on which the Secretary completes a report under paragraph (1), 
        the Secretary shall transmit copies of the report to--
                  ``(A) the Committee on Energy and Natural Resources 
                of the Senate; and
                  ``(B) the Committee on Natural Resources of the House 
                of Representatives.
  ``(s) Comparative Review of Fiscal System.--
          ``(1) In general.--Not later than 2 years after the date of 
        enactment of this subsection and every 5 years thereafter, the 
        Secretary shall carry out a comprehensive review of all 
        components of the Federal offshore oil and gas fiscal system, 
        including requirements for--
                  ``(A) bonus bids;
                  ``(B) rental rates;
                  ``(C) royalties; and
                  ``(D) oil and gas taxes.
          ``(2) Requirements.--
                  ``(A) Contents; scope.--A review under paragraph (1) 
                shall include--
                          ``(i) the information and analyses necessary 
                        to compare the offshore bonus bids, rents, 
                        royalties, and taxes of the Federal Government 
                        to the offshore bonus bids, rents, royalties, 
                        and taxes of other resource owners, including 
                        States and foreign countries; and
                          ``(ii) an assessment of the overall offshore 
                        oil and gas fiscal system in the United States, 
                        as compared to foreign countries.
                  ``(B) Independent advisory committee.--In carrying 
                out a review under paragraph (1), the Secretary shall 
                convene and seek the advice of an independent advisory 
                committee comprised of oil and gas and fiscal experts 
                from States, Indian tribes, academia, the energy 
                industry, and appropriate nongovernmental 
                organizations.
          ``(3) Report.--
                  ``(A) In general.--The Secretary shall prepare a 
                report that contains--
                          ``(i) the contents and results of the review 
                        carried out under paragraph (1) for the period 
                        covered by the report; and
                          ``(ii) any recommendations of the Secretary 
                        based on the contents and results of the 
                        review.
                  ``(B) Report deadline.--Not later than 30 days after 
                the date on which the Secretary completes a report 
                under paragraph (1), the Secretary shall transmit 
                copies of the report to the Committee on Natural 
                Resources of the House of Representatives and the 
                Committee on Energy and Natural Resources of the 
                Senate.''.
  (b) Environmental Diligence.--Section 8 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337) is amended by striking subsection (d) 
and inserting the following:
  ``(d) Requirement for Certification of Responsible Stewardship.--
          ``(1) Certification requirement.--No bid or request for a 
        lease, easement, or right-of-way under this section, or for a 
        permit to drill under section 11(d), may be submitted by any 
        person unless the person certifies to the Secretary that the 
        person (including any related person and any predecessor of 
        such person or related person) meets each of the following 
        requirements:
                  ``(A) The person is meeting due diligence, safety, 
                and environmental requirements on other leases, 
                easements, and rights-of-way.
                  ``(B) In the case of a person that is a responsible 
                party for a vessel or a facility from which oil is 
                discharged, for purposes of section 1002 of the Oil 
                Pollution Act of 1990 (33 U.S.C. 2702), the person has 
                met all of its obligations under that Act to provide 
                compensation for covered removal costs and damages.
                  ``(C) In the 7-year period ending on the date of 
                certification, the person, in connection with 
                activities in the oil industry (including exploration, 
                development, production, transportation by pipeline, 
                and refining)--
                          ``(i) was not found to have committed willful 
                        or repeated violations under the Occupational 
                        Safety and Health Act of 1970 (29 U.S.C. 651 et 
                        seq.) (including State plans approved under 
                        section 18(c) of such Act (29 U.S.C. 667(c))) 
                        at a rate that is higher than five times the 
                        rate determined by the Secretary to be the oil 
                        industry average for such violations for such 
                        period;
                          ``(ii) was not convicted of a criminal 
                        violation for death or serious bodily injury;
                          ``(iii) did not have more than 10 fatalities 
                        at its exploration, development, and production 
                        facilities and refineries as a result of 
                        violations of Federal or State health, safety, 
                        or environmental laws;
                          ``(iv) was not assessed, did not enter into 
                        an agreement to pay, and was not otherwise 
                        required to pay, civil penalties and criminal 
                        fines for violations the person was found to 
                        have committed under the Federal Water 
                        Pollution Control Act (33 U.S.C. 1251 et seq.) 
                        (including State programs approved under 
                        sections 402 and 404 of such Act (33 U.S.C. 
                        1342 and 1344)) in a total amount that is equal 
                        to more than $10,000,000; and
                          ``(v) was not assessed, did not enter into an 
                        agreement to pay, and was not otherwise 
                        required to pay, civil penalties and criminal 
                        fines for violations the person was found to 
                        have committed under the Clean Air Act (42 
                        U.S.C. 7401 et seq.) (including State plans 
                        approved under section 110 of such Act (42 
                        U.S.C. 7410)) in a total amount that is equal 
                        to more than $10,000,000.
          ``(2) Enforcement.--If the Secretary determines that a 
        certification made under paragraph (1) is false, the Secretary 
        shall cancel any lease, easement, or right of way and shall 
        revoke any permit with respect to which the certification was 
        required under such paragraph.
          ``(3) Definition of related person.--For purposes of this 
        subsection, the term `related person' includes a parent, 
        subsidiary, affiliate, member of the same controlled group, 
        contractor, subcontractor, a person holding a controlling 
        interest or in which a controlling interest is held, and a 
        person with substantially the same board members, senior 
        officers, or investors.''.
  (c) Alternative Energy Development.--
          (1) Clarification relating to alternative energy 
        development.--Section 8(p) of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1337(p)) is amended--
                  (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                        by inserting ``or'' after ``1501 et seq.),'', 
                        and by striking ``or other applicable law,''; 
                        and
                          (ii) by amending subparagraph (D) to read as 
                        follows:
                  ``(D) use, for energy-related purposes, facilities 
                currently or previously used for activities authorized 
                under this Act, except that any oil and gas energy-
                related uses shall not be authorized in areas in which 
                oil and gas preleasing, leasing, and related activities 
                are prohibited by a moratorium.''; and
                  (B) in paragraph (4)--
                          (i) in subparagraph (E), by striking 
                        ``coordination'' and inserting ``in 
                        consultation''; and
                          (ii) in subparagraph (J)(ii), by inserting 
                        ``a potential site for an alternative energy 
                        facility,'' after ``deepwater port,''.
          (2) Noncompetitive alternative energy lease options.--Section 
        8(p)(3) of such Act (43 U.S.C. 1337(p)(3)) is amended to read 
        as follows:
          ``(3) Competitive or noncompetitive basis.--Any lease, 
        easement, right-of-way, or other authorization granted under 
        paragraph (1) shall be issued on a competitive basis, unless--
                  ``(A) the lease, easement, right-of-way, or other 
                authorization relates to a project that meets the 
                criteria established under section 388(d) of the Energy 
                Policy Act of 2005 (43 U.S.C. 1337 note; Public Law 
                109-58);
                  ``(B) the lease, easement, right-of-way, or other 
                authorization--
                          ``(i) is for the placement and operation of a 
                        meteorological or marine data collection 
                        facility; and
                          ``(ii) has a term of not more than 5 years; 
                        or
                  ``(C) the Secretary determines, after providing 
                public notice of a proposed lease, easement, right-of-
                way, or other authorization, that no competitive 
                interest exists.''.
  (d) Review of Impacts of Lease Sales on the Marine and Coastal 
Environment by Secretary.--Section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) is amended by adding at the end of 
subsection (a) the following:
          ``(9) At least 60 days prior to any lease sale, the Secretary 
        shall request a review by the Secretary of Commerce of the 
        proposed sale with respect to impacts on the marine and coastal 
        environment. The Secretary of Commerce shall complete and 
        submit in writing the results of that review within 60 days 
        after receipt of the Secretary of the Interior's request.''.
  (e) Limitation on Lease Tract Size.--Section 8(b)(1) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(b)(1)) is amended by 
striking ``, unless the Secretary finds that a larger area is necessary 
to comprise a reasonable economic production unit''.
  (f) Sulphur Leases.--Section 8(i) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(i)) is amended by striking ``meet the urgent 
need'' and inserting ``allow''.
  (g) Terms and Provisions.--Section 8(b) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(b)) is amended by striking ``An oil and 
gas lease issued pursuant to this section shall'' and inserting ``An 
oil and gas lease may be issued pursuant to this section only if the 
Secretary determines that activities under the lease are not likely to 
result in any condition described in section 5(a)(2)(A)(i), and 
shall''.

SEC. 207. DISPOSITION OF REVENUES.

  Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended to read as follows:

``SEC. 9. DISPOSITION OF REVENUES.

  ``(a) General.--Except as provided in subsections (b), (c), and (d), 
all rentals, royalties, and other sums paid to the Secretary or the 
Secretary of the Navy under any lease on the outer Continental Shelf 
for the period from June 5, 1950, to date, and thereafter shall be 
deposited in the Treasury of the United States and credited to 
miscellaneous receipts.
  ``(b) Land and Water Conservation Fund.--Effective for fiscal year 
2011 and each fiscal year thereafter, $900,000,000 of the amounts 
referred to in subsection (a) shall be deposited in the Treasury of the 
United States and credited to the Land and Water Conservation Fund. 
These sums shall be available to the Secretary, without further 
appropriation or fiscal year limitation, for carrying out the purposes 
of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-4 
et seq.).
  ``(c) Historic Preservation Fund.--Effective for fiscal year 2011 and 
each fiscal year thereafter, $150,000,000 of the amounts referred to in 
subsection (a) shall be deposited in the Treasury of the United States 
and credited to the Historic Preservation Fund. These sums shall be 
available to the Secretary, without further appropriation or fiscal 
year limitation, for carrying out the purposes of the National Historic 
Preservation Fund Act of 1966 (16 U.S.C. 470 et seq.).
  ``(d) Ocean Resources Conservation and Assistance Fund.--Effective 
for each fiscal year 2011 and thereafter, 10 percent of the amounts 
referred to in subsection (a) shall be deposited in the Treasury of the 
United States and credited to the Ocean Resources Conservation and 
Assistance Fund established by the Consolidated Land, Energy, and 
Aquatic Resources Act of 2010. These sums shall be available to the 
Secretary, without further appropriation or fiscal year limitation, for 
carrying out the purposes of section 605 of the Consolidated Land, 
Energy, and Aquatic Resources Act of 2010.
  ``(e) Savings Provision.--Nothing in this section shall decrease the 
amount any State shall receive pursuant to section 8(g) of this Act or 
section 105 of the Gulf of Mexico Energy Security Act (43 U.S.C. 1331 
note).''.

SEC. 208. EXPLORATION PLANS.

  (a) Limitation on Harm From Agency Exploration.--Section 11(a)(1) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1340(a)(1)) is amended 
by striking ``unduly harmful to'' and inserting ``likely to harm''.
  (b) Exploration Plan Review.--Section 11(c) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1340(c)), is amended--
          (1) by inserting ``(A)'' before the first sentence;
          (2) in paragraph (1)(A), as designated by the amendment made 
        by paragraph (1) of this subsection--
                  (A) by striking ``and the provisions of such lease'' 
                and inserting ``the provisions of such lease, and other 
                applicable environmental and natural resource 
                conservation laws''; and
                  (B) by striking the fourth sentence and inserting the 
                following:
  ``(B) The Secretary shall approve such plan, as submitted or 
modified, within 90 days after its submission and it is made publicly 
accessible by the Secretary, or within such additional time as the 
Secretary determines is necessary to complete any environmental, 
safety, or other reviews, if the Secretary determines that--
          ``(i) any proposed activity under such plan is not likely to 
        result in any condition described in section 5(a)(2)(A)(i);
          ``(ii) the plan complies with other applicable environmental 
        or natural resource conservation laws; and
          ``(iii) the applicant has demonstrated the capability and 
        technology to respond immediately and effectively to a worst-
        case oil spill in real-world conditions in the area of the 
        proposed activity.''; and
          (3) by adding at the end the following:
          ``(5) If the Secretary requires greater than 90 days to 
        review an exploration plan submitted pursuant to any oil and 
        gas lease issued or maintained under this Act, then the 
        Secretary may provide for a suspension of that lease pursuant 
        to section 5 until the review of the exploration plan is 
        completed.''.
  (c) Requirements.--Section 11(c) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1340(c), is amended by amending paragraph (3) to read as 
follows:
          ``(3) An exploration plan submitted under this subsection 
        shall include, in the degree of detail that the Secretary may 
        by regulation require--
                  ``(A) a schedule of anticipated exploration 
                activities to be undertaken;
                  ``(B) a detailed and accurate description of 
                equipment to be used for such activities, including--
                          ``(i) a description of each drilling unit;
                          ``(ii) a statement of the design and 
                        condition of major safety-related pieces of 
                        equipment, including independent third party 
                        certification of such equipment; and
                          ``(iii) a description of any new technology 
                        to be used;
                  ``(C) a map showing the location of each well to be 
                drilled;
                  ``(D) a scenario for the potential blowout of the 
                well involving the highest potential volume of liquid 
                hydrocarbons, along with a complete description of a 
                response plan to both control the blowout and manage 
                the accompanying discharge of hydrocarbons, including 
                the likelihood for surface intervention to stop the 
                blowout, the availability of a rig to drill a relief 
                well, an estimate of the time it would take to drill a 
                relief well, a description of other technology that may 
                be used to regain control of the well or capture 
                escaping hydrocarbons and the potential timeline for 
                using that technology for its intended purpose, and the 
                strategy, organization, and resources necessary to 
                avoid harm to the environment and human health from 
                hydrocarbons;
                  ``(E) an analysis of the potential impacts of the 
                worst-case-scenario discharge of hydrocarbons on the 
                marine, coastal, and human environments for activities 
                conducted pursuant to the proposed exploration plan; 
                and
                  ``(F) such other information deemed pertinent by the 
                Secretary.''.
  (d) Drilling Permits.--Section 11(d) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1340(d)) is amended by to read as follows:
  ``(d) Drilling Permits.--
          ``(1) In general.--The Secretary shall, by regulation, 
        require that any lessee operating under an approved exploration 
        plan obtain a permit prior to drilling any well in accordance 
        with such plan, and prior to any significant modification of 
        the well design as originally approved by the Secretary.
          ``(2) Engineering review required.--The Secretary may not 
        grant any drilling permit or modification of the permit prior 
        to completion of a full engineering review of the well system, 
        including a determination that critical safety systems, 
        including blowout prevention, will utilize best available 
        technology and that blowout prevention systems will include 
        redundancy and remote triggering capability.
          ``(3) Operator safety and environmental management 
        required.--The Secretary shall not grant any drilling permit or 
        modification of the permit prior to completion of a safety and 
        environmental management plan to be utilized by the operator 
        during all well operations.''.
  (e) Exploration Permit Requirements.--Section 11(g) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1340(g)) is amended by--
          (1) striking ``shall be issued'' and inserting ``may be 
        issued'';
          (2) inserting ``and after consultation with the Secretary of 
        Commerce,'' after ``in accordance with regulations issued by 
        the Secretary'';
          (3) striking the ``and'' at the end of paragraph (2);
          (4) in paragraph (3) striking ``will not be unduly harmful 
        to'' and inserting ``is not likely to harm'';
          (5) striking the period at the end of paragraph (3) and 
        inserting a semicolon; and
          (6) adding at the end the following:
          ``(4) the exploration will be conducted in accordance with 
        other applicable environmental and natural resource 
        conservation laws;
          ``(5) in the case of geophysical surveys, the applicant shall 
        use the best available technologies and methods to minimize 
        impacts on marine life; and
          ``(6) in the case of drilling operations, the applicant has 
        available oil spill response and clean-up equipment and 
        technology that has been demonstrated to be capable of 
        effectively remediating a worst-case release of oil.''.
  (f) Environmental Review of Plans; Deepwater Plan; Plan 
Disapproval.--Section 11 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1340) is amended by adding at the end the following:
  ``(i) Environmental Review of Plans.--The Secretary shall treat the 
approval of an exploration plan, or a significant revision of such a 
plan, as an agency action requiring preparation of an environmental 
assessment or environmental impact statement in accordance with the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and 
shall require that such plan--
          ``(1) be based on the best available technology to ensure 
        safety in carrying out both the drilling of the well and any 
        oil spill response; and
          ``(2) contain a technical systems analysis of the safety of 
        the proposed activity, the blowout prevention technology, and 
        the blowout and spill response plans.
  ``(j) Disapproval of Plan.--
          ``(1) In general.--The Secretary shall disapprove the plan if 
        the Secretary determines, because of exceptional geological 
        conditions in the lease areas, exceptional resource values in 
        the marine or coastal environment, or other exceptional 
        circumstances, that--
                  ``(A) implementation of the plan would probably cause 
                serious harm or damage to life (including fish and 
                other aquatic life), to property, to any mineral 
                deposits (in areas leased or not leased), to the 
                national security or defense, or to the marine, 
                coastal, or human environments;
                  ``(B) the threat of harm or damage will not disappear 
                or decrease to an acceptable extent within a reasonable 
                period of time; and
                  ``(C) the advantages of disapproving the plan 
                outweigh the advantages of exploration.
          ``(2) Cancellation of lease for disapproval of plan.--If a 
        plan is disapproved under this subsection, the Secretary may 
        cancel such lease in accordance with subsection (c)(1) of this 
        section.''.

SEC. 209. OUTER CONTINENTAL SHELF LEASING PROGRAM.

  Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) 
is amended--
          (1) in subsection (a) in the second sentence by striking 
        ``meet national energy needs'' and inserting ``balance national 
        energy needs and the protection of the marine and coastal 
        environment and all the resources in that environment,'';
          (2) in subsection (a)(1), by striking ``considers'' and 
        inserting ``gives equal consideration to'';
          (3) in subsection (a)(2)(A)--
                  (A) by striking ``existing'' and inserting ``the best 
                available scientific''; and
                  (B) by inserting ``, including at least three 
                consecutive years of data'' after ``information'';
          (4) in subsection (a)(2)(D), by inserting ``, potential and 
        existing sites of renewable energy installations'' after 
        ``deepwater ports,'';
          (5) in subsection (a)(2)(H), by inserting ``including the 
        availability of infrastructure to support oil spill response'' 
        before the period;
          (6) in subsection (a)(3), by--
                  (A) striking ``to the maximum extent practicable,'';
                  (B) striking ``obtain a proper balance between'' and 
                inserting ``minimize''; and
                  (C) striking ``damage,'' and all that follows through 
                the period and inserting ``damage and adverse impacts 
                on the marine, coastal, and human environments, and 
                enhancing the potential for the discovery of oil and 
                gas.'';
          (7) in subsection (b)(1), by inserting ``environmental, 
        marine, and energy'' after ``obtain'';
          (8) in subsection (b)(2), by inserting ``environmental, 
        marine, and'' after ``interpret the'';
          (9) in subsection (b)(3), by striking ``and'' after the 
        semicolon at the end;
          (10) by striking the period at the end of subsection (b)(4) 
        and inserting a semicolon;
          (11) by adding at the end of subsection (b) the following:
          ``(5) provide technical review and oversight of exploration 
        plans and a systems review of the safety of well designs and 
        other operational decisions;
          ``(6) conduct regular and thorough safety reviews and 
        inspections; and
          ``(7) enforce all applicable laws and regulations.'';
          (12) in the first sentence of subsection (c)(1), by inserting 
        ``the National Oceanic and Atmospheric Administration and'' 
        after ``including'';
          (13) in subsection (c)(2)--
                  (A) by inserting after the first sentence the 
                following: ``The Secretary shall also submit a copy of 
                such proposed program to the head of each Federal 
                agency referred to in, or that otherwise provided 
                suggestions under, paragraph (1).'';
                  (B) in the third sentence, by inserting ``or head of 
                a Federal agency'' after ``such Governor''; and
                  (C) in the fourth sentence, by inserting ``or between 
                the Secretary and the head of a Federal agency,'' after 
                ``affected State,'';
          (14) in the second sentence of subsection (d)(2), by 
        inserting ``, the head of a Federal agency,'' after ``Attorney 
        General'';
          (15) in subsection (g), by inserting after the first sentence 
        the following: ``Such information may include existing 
        inventories and mapping of marine resources previously 
        undertaken by the Department of the Interior and the National 
        Oceanic and Atmospheric Administration, information provided by 
        the Department of Defense, and other available data regarding 
        energy or mineral resource potential, navigation uses, 
        fisheries, aquaculture uses, recreational uses, habitat, 
        conservation, and military uses on the outer Continental 
        Shelf.''; and
          (16) by adding at the end the following new subsection:
  ``(i) Research and Development.--The Secretary shall carry out a 
program of research and development to ensure the continued improvement 
of methodologies for characterizing resources of the outer Continental 
Shelf and conditions that may affect the ability to develop and use 
those resources in a safe, sound, and environmentally responsible 
manner. Such research and development activities may include activities 
to provide accurate estimates of energy and mineral reserves and 
potential on the Outer Continental Shelf and any activities that may 
assist in filling gaps in environmental data needed to develop each 
leasing program under this section.''.

SEC. 210. ENVIRONMENTAL STUDIES.

  (a) Information Needed for Assessment and Management of Environmental 
Impacts.--Section 20 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1346) is amended by striking so much as precedes subsection 
(a)(2) and inserting the following:

``SEC. 20. ENVIRONMENTAL STUDIES.

  ``(a)(1) The Secretary, in cooperation with the Secretary of 
Commerce, shall conduct a study no less than once every three years of 
any area or region included in any oil and gas lease sale or other 
lease in order to establish information needed for assessment and 
management of environmental impacts on the human, marine, and coastal 
environments of the outer Continental Shelf and the coastal areas which 
may be affected by oil and gas or other mineral development in such 
area or region.''.
  (b) Impacts of Deep Water Spills.--Section 20 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1346) is amended by--
          (1) redesignating subsections (c) through (f) as (d) through 
        (g); and
          (2) inserting after subsection (b) the following new 
        subsection:
  ``(c) The Secretary shall conduct research to identify and reduce 
data gaps related to impacts of deepwater hydrocarbon spills, 
including--
          ``(1) effects to benthic substrate communities and species;
          ``(2) water column habitats and species;
          ``(3) surface and coastal impacts from spills originating in 
        deep waters; and
          ``(4) the use of dispersants.''.

SEC. 211. SAFETY REGULATIONS.

  Section 21 of the Outer Continental Shelf Lands Act (43 U.S.C. 1347) 
is amended--
          (1) in subsection (a), by striking ``Upon the date of 
        enactment of this section,'' and inserting ``Within 6 months 
        after the date of enactment of the Outer Continental Shelf 
        Lands Act Amendments of 2010 and every three years 
        thereafter,'';
          (2) in subsection (b) by--
                  (A) striking ``for the artificial islands, 
                installations, and other devices referred to in section 
                4(a)(1) of'' and inserting ``under'';
                  (B) striking ``which the Secretary determines to be 
                economically feasible''; and
                  (C) adding at the end ``Not later than 6 months after 
                the date of enactment of the Outer Continental Shelf 
                Lands Act Amendments of 2010 and every 3 years 
                thereafter, the Secretary shall, in consultation with 
                the Outer Continental Shelf Safety and Environmental 
                Advisory Board established under title I of the 
                Consolidated Land, Energy, and Aquatic Resources Act of 
                2010, identify and publish an updated list of (1) the 
                best available technologies for key areas of well 
                design and operation, including blowout prevention and 
                blowout and oil spill response and (2) technology needs 
                for which the Secretary intends to identify best 
                available technologies in the future.''; and
          (3) by adding at the end the following:
  ``(g) Safety Case.--Not later than 6 months after the date of 
enactment of the Outer Continental Shelf Lands Act Amendments of 2010, 
the Secretary shall promulgate regulations requiring a safety case be 
submitted along with each new application for a permit to drill on the 
outer Continental Shelf. Not later than 5 years after the date final 
regulations promulgated under this subsection go into effect, and not 
less than every 5 years thereafter, the Secretary shall enter into an 
arrangement with the National Academy of Engineering to conduct a study 
to assess the effectiveness of these regulations and to recommend 
improvements in their administration.
  ``(h) Offshore Technology Research and Risk Assessment Program.--
          ``(1) In general.--The Secretary shall carry out a program of 
        research, development, and risk assessment to address 
        technology and development issues associated with exploration 
        for, and development and production of, energy and mineral 
        resources on the outer Continental Shelf, with the primary 
        purpose of informing its role relating to safety, environmental 
        protection, and spill response.
          ``(2) Specific focus areas.--The program under this 
        subsection shall include research and development related to--
                  ``(A) risk assessment, using all available data from 
                safety and compliance records both within the United 
                States and internationally;
                  ``(B) analysis of industry trends in technology, 
                investment, and frontier areas;
                  ``(C) reviews of best available technologies, 
                including those associated with pipelines, blowout 
                preventer mechanisms, casing, well design, and other 
                associated infrastructure related to offshore energy 
                development;
                  ``(D) oil spill response and mitigation;
                  ``(E) risk associated with human factors;
                  ``(F) technologies and methods to reduce the impact 
                of geophysical exploration activities on marine life; 
                and
                  ``(G) renewable energy operations.''.

SEC. 212. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL REGULATIONS.

  Section 22 of the Outer Continental Shelf Lands Act (43 U.S.C. 1348) 
is amended--
          (1) by amending subsection (c) to read as follows:
  ``(c) Inspections.--The Secretary and the Secretary of the department 
in which the Coast Guard is operating shall individually, or jointly if 
they so agree, promulgate regulations to provide for--
          ``(1) scheduled onsite inspection, at least once a year, of 
        each facility on the outer Continental Shelf which is subject 
        to any environmental or safety regulation promulgated pursuant 
        to this Act, which inspection shall include all safety 
        equipment designed to prevent or ameliorate blowouts, fires, 
        spillages, or other major accidents;
          ``(2) scheduled onsite inspection, at least once a month, of 
        each facility on the outer Continental Shelf engaged in 
        drilling operations and which is subject to any environmental 
        or safety regulation promulgated pursuant to this Act, which 
        inspection shall include all safety equipment designed to 
        prevent or ameliorate blowouts, fires, spillages, or other 
        major accidents;
          ``(3) periodic onsite inspection without advance notice to 
        the operator of such facility to assure compliance with such 
        environmental or safety regulations; and
          ``(4) periodic audits of each required safety and 
        environmental management plan, and any associated safety case, 
        both with respect to their implementation at each facility on 
        the outer Continental Shelf for which such a plan or safety 
        case is required and with respect to onshore management support 
        for activities at such a facility.'';
          (2) in subsection (d)(1)--
                  (A) by striking ``each major fire and each major oil 
                spillage'' and inserting ``each major fire, each major 
                oil spillage, each loss of well control, and any other 
                accident that presented a serious risk to human or 
                environmental safety''; and
                  (B) by inserting before the period at the end the 
                following: ``, as a condition of the lease or permit'';
          (3) in subsection (d)(2), by inserting before the period at 
        the end the following: ``as a condition of the lease or 
        permit'';
          (4) in subsection (e), by adding at the end the following: 
        ``Any such allegation from any employee of the lessee or any 
        subcontractor of the lessee shall be investigated by the 
        Secretary.'';
          (5) in subsection (b)(1), by striking ``recognized'' and 
        inserting ``uncontrolled''; and
          (6) by adding at the end the following:
  ``(g) Information on Causes and Corrective Actions.--For any incident 
investigated under this section, the Secretary shall promptly make 
available to all lessees and the public technical information about the 
causes and corrective actions taken. All data and reports related to 
any such incident shall be maintained in a data base available to the 
public.
  ``(h) Operator's Annual Certification.--
          ``(1) The Secretary, in cooperation with the Secretary of the 
        department in which the Coast Guard is operating, shall require 
        all operators of all new and existing drilling and production 
        operations to annually certify that their operations are being 
        conducted in accordance with applicable law and regulations.
          ``(2) Each certification shall include, but, not be limited 
        to, statements that verify the operator has--
                  ``(A) examined all well control system equipment 
                (both surface and subsea) being used to ensure that it 
                has been properly maintained and is capable of shutting 
                in the well during emergency operations;
                  ``(B) examined and conducted tests to ensure that the 
                emergency equipment has been function-tested and is 
                capable of addressing emergency situations;
                  ``(C) reviewed all rig drilling, casing, cementing, 
                well abandonment (temporary and permanent), completion, 
                and workover practices to ensure that well control is 
                not compromised at any point while emergency equipment 
                is installed on the wellhead;
                  ``(D) reviewed all emergency shutdown and dynamic 
                positioning procedures that interface with emergency 
                well control operations; and
                  ``(E) taken the necessary steps to ensure that all 
                personnel involved in well operations are properly 
                trained and capable of performing their tasks under 
                both normal drilling and emergency well control 
                operations.
  ``(i) CEO Annual Certification.--Operators of all drilling and 
production operations shall annually submit to the Secretary a general 
statement by the operator's chief executive officer that certifies to 
the operators' compliance with all applicable laws and operating 
regulations.
  ``(j) Third Party Certification.--All operators that modify or 
upgrade any emergency equipment placed on any operation to prevent 
blow-outs or other well control events, shall have an independent third 
party conduct a detailed physical inspection and design review of such 
equipment within 30-days of its installation. The independent third 
party shall certify that the equipment will operate as originally 
designed and any modifications or upgrades conducted after delivery 
have not compromised the design, performance or functionality of the 
equipment. Failure to comply with this subsection shall result in 
suspension of the lease.''.

SEC. 213. JUDICIAL REVIEW.

  Section 23(c)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1349(c)(3)) is amended by striking ``sixty'' and inserting ``90''.

SEC. 214. REMEDIES AND PENALTIES.

  (a) Civil Penalty, Generally.--Section 24(b) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1350(b)) is amended to read as follows:
  ``(b)(1) Except as provided in paragraph (2), any person who fails to 
comply with any provision of this Act, or any term of a lease, license, 
or permit issued pursuant to this Act, or any regulation or order 
issued under this Act, shall be liable for a civil administrative 
penalty of not more than $75,000 for each day of the continuance of 
such failure. The Secretary may assess, collect, and compromise any 
such penalty. No penalty shall be assessed until the person charged 
with a violation has been given an opportunity for a hearing. The 
Secretary shall, by regulation at least every 3 years, adjust the 
penalty specified in this paragraph to reflect any increases in the 
Consumer Price Index (all items, United States city average) as 
prepared by the Department of Labor.
  ``(2) If a failure described in paragraph (1) constitutes or 
constituted a threat of harm or damage to life (including fish and 
other aquatic life), property, any mineral deposit, or the marine, 
coastal, or human environment, a civil penalty of not more than 
$150,000 shall be assessed for each day of the continuance of the 
failure.''.
  (b) Knowing and Willful Violations.--Section 24(c) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1350(c)) is amended in paragraph 
(4) by striking ``$100,000$100,000'' and inserting ``$10,000,000''.
  (c) Officers and Agents of Corporations.--Section 24(d) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1350(d)) is amended by inserting 
``, or with willful disregard,'' after ``knowingly and willfully''.

SEC. 215. UNIFORM PLANNING FOR OUTER CONTINENTAL SHELF.

  Section 25 of the Outer Continental Shelf Lands Act (43 U.S.C. 1351) 
is amended--
          (1) by striking ``other than the Gulf of Mexico,'' in each 
        place it appears;
          (2) in subsection (c), by striking ``and'' after the 
        semicolon at the end of paragraph (5), redesignating paragraph 
        (6) as paragraph (11), and inserting after paragraph (5) the 
        following new paragraphs:
          ``(6) a detailed and accurate description of equipment to be 
        used for the drilling of wells pursuant to activities included 
        in the development and production plan, including--
                  ``(A) a description of the drilling unit or units;
                  ``(B) a statement of the design and condition of 
                major safety-related pieces of equipment, including 
                independent third-party certification of such 
                equipment; and
                  ``(C) a description of any new technology to be used;
          ``(7) a scenario for the potential blowout of each well to be 
        drilled as part of the plan involving the highest potential 
        volume of liquid hydrocarbons, along with a complete 
        description of a response plan to both control the blowout and 
        manage the accompanying discharge of hydrocarbons, including 
        the likelihood for surface intervention to stop the blowout, 
        the availability of a rig to drill a relief well, an estimate 
        of the time it would take to drill a relief well, a description 
        of other technology that may be used to regain control of the 
        well or capture escaping hydrocarbons and the potential 
        timeline for using that technology for its intended purpose, 
        and the strategy, organization, and resources necessary to 
        avoid harm to the environment and human health from 
        hydrocarbons;
          ``(8) an analysis of the potential impacts of the worst-case-
        scenario discharge on the marine, coastal, and human 
        environments for activities conducted pursuant to the proposed 
        development and production plan;
          ``(9) a comprehensive survey and characterization of the 
        coastal or marine environment within the area of operation, 
        including bathymetry, currents and circulation patterns within 
        the water column, and descriptions of benthic and pelagic 
        environments;
          ``(10) a description of the technologies to be deployed on 
        the facilities to routinely observe and monitor in real time 
        the marine environment throughout the duration of operations, 
        and a description of the process by which such observation data 
        and information will be made available to Federal regulators 
        and to the System established under section 12304 of Public Law 
        111-11 (33 U.S.C. 3603); and'';
          (3) in subsection (e), by striking so much as precedes 
        paragraph (2) and inserting the following:
  ``(e)(1) The Secretary shall treat the approval of a development and 
production plan, or a significant revision of a development and 
production plan, as an agency action requiring preparation of an 
environmental assessment or environmental impact statement, in 
accordance with the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.).'';
          (4) by striking subsections (g) and (l), and redesignating 
        subsections (h) through (k) as subsections (g) through and (j); 
        and
          (5) in subsection (g), as so redesignated, by redesignating 
        paragraphs (2) and (3) as paragraphs (3) and (4), respectively, 
        and inserting after paragraph (1) the following:
          ``(2) The Secretary shall not approve a development and 
        production plan, or a significant revision to such a plan, 
        unless-
                  ``(A) the plan is in compliance with all other 
                applicable environmental and natural resource 
                conservation laws; and
                  ``(B) the applicant has available oil spill response 
                and clean-up equipment and technology that has been 
                demonstrated to be capable of effectively remediating 
                the projected worst-case release of oil from activities 
                conducted pursuant to the development and production 
                plan.''.

SEC. 216. OIL AND GAS INFORMATION PROGRAM.

  Section 26(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1352(a)(1)) is amended by--
          (1) striking the period at the end of subparagraph (A) and 
        inserting, ``, provided that such data shall be transmitted in 
        electronic format either in real-time or as quickly as 
        practicable following the generation of such data.''; and
          (2) striking subparagraph (C) and inserting the following:
                  ``(C) Lessees engaged in drilling operations shall 
                provide to the Secretary all daily reports generated by 
                the lessee, or any daily reports generated by 
                contractors or subcontractors engaged in or supporting 
                drilling operations on the lessee's lease, no more than 
                24 hours after the end of the day for which they should 
                have been generated.''.

SEC. 217. LIMITATION ON ROYALTY-IN-KIND PROGRAM.

  Section 27(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1353(a)) is amended by striking the period at the end of paragraph (1) 
and inserting ``, except that the Secretary shall not conduct a regular 
program to take oil and gas lease royalties in oil or gas.''.

SEC. 218. RESTRICTIONS ON EMPLOYMENT.

   Section 29 of the Outer Continental Shelf Lands Act (43 U.S.C. 1355) 
is amended--
          (1) in the matter preceding paragraph (1)--
                  (A) by striking ``sec. 29'' and all that follows 
                through ``No full-time'' and inserting the following:

``SEC. 29. RESTRICTIONS ON EMPLOYMENT.

  ``(a) In General.--No full-time''; and
                  (B) by striking ``, and who was at any time during 
                the twelve months preceding the termination of his 
                employment with the Department compensated under the 
                Executive Schedule or compensated at or above the 
                annual rate of basic pay for grade GS-16 of the General 
                Schedule'';
          (2) in paragraph (1)--
                  (A) in subparagraph (A), by inserting ``or advise'' 
                after ``represent'';
                  (B) in subparagraph (B), by striking ``with the 
                intent to influence, make'' and inserting ``act with 
                the intent to influence, directly or indirectly, or 
                make''; and
                  (C) in the matter following subparagraph (C)--
                          (i) by inserting ``inspection or enforcement 
                        action,'' before ``or other particular 
                        matter''; and
                          (ii) by striking ``or'' at the end;
          (3) in paragraph (2)--
                  (A) in subparagraph (A), by inserting ``or advise'' 
                after ``represent'';
                  (B) in subparagraph (B), by striking ``with the 
                intent to influence, make'' and inserting ``act with 
                the intent to influence, directly or indirectly, or 
                make''; and
                  (C) by striking the period at the end and inserting 
                ``; or''; and
          (4) by adding at the end the following:
          ``(3) during the 2-year period beginning on the date on which 
        the employment of the officer or employee ceased at the 
        Department, accept employment or compensation from any party 
        that has a direct and substantial interest--
                  ``(A) that was pending under the official 
                responsibility of the officer or employee as an officer 
                at any point during the 2-year period preceding the 
                date of termination of the responsibility; or
                  ``(B) in which the officer or employee participated 
                personally and substantially as an officer or employee 
                of the Department.
  ``(b) Prior Dealings.--No full-time officer or employee of the 
Department of the Interior who directly or indirectly discharged duties 
or responsibilities under this Act shall participate personally and 
substantially as a Federal officer or employee, through decision, 
approval, disapproval, recommendation, the rendering of advice, 
investigation, or otherwise, in a proceeding, application, request for 
a ruling or other determination, contract, claim, controversy, charge, 
accusation, inspection, enforcement action, or other particular matter 
in which, to the knowledge of the officer or employee--
          ``(1) the officer or employee or the spouse, minor child, or 
        general partner of the officer or employee has a financial 
        interest;
          ``(2) any organization in which the officer or employee is 
        serving as an officer, director, trustee, general partner, or 
        employee has a financial interest;
          ``(3) any person or organization with whom the officer or 
        employee is negotiating or has any arrangement concerning 
        prospective employment has a financial interest; or
          ``(4) any person or organization in which the officer or 
        employee has, within the preceding 1-year period, served as an 
        officer, director, trustee, general partner, agent, attorney, 
        consultant, contractor, or employee.
  ``(c) Gifts From Outside Sources.--No full-time officer or employee 
of the Department of the Interior who directly or indirectly discharges 
duties or responsibilities under this Act shall, directly or 
indirectly, solicit or accept any gift in violation of subpart B of 
part 2635 of title 5, Code of Federal Regulations (or successor 
regulations).
  ``(d) Penalty.--Any person that violates subsection (a) or (b) shall 
be punished in accordance with section 216 of title 18, United States 
Code.''.

SEC. 219. REPEAL OF ROYALTY RELIEF PROVISIONS.

  (a) Repeal of Provisions of Energy Policy Act of 2005.--The following 
provisions of the Energy Policy Act of 2005 (Public Law 109-58) are 
repealed:
          (1) Section 344 (42 U.S.C. 15904; relating to incentives for 
        natural gas production from deep wells in shallow waters of the 
        Gulf of Mexico).
          (2) Section 345 (42 U.S.C. 15905; relating to royalty relief 
        for deep water production in the Gulf of Mexico).
  (b) Repeal of Provisions Relating to Planning Areas Offshore 
Alaska.--Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337(a)(3)(B)) is amended by striking ``and in the Planning 
Areas offshore Alaska''.

SEC. 220. MANNING AND BUY- AND BUILD-AMERICAN REQUIREMENTS.

  Section 30 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356) 
is amended--
          (1) in subsection (a), by striking ``shall issue regulations 
        which'' and inserting ``shall issue regulations that shall be 
        supplemental to and complementary with and under no 
        circumstances a substitution for the provisions of the 
        Constitution and laws of the United States extended to the 
        subsoil and seabed of the outer Continental Shelf pursuant to 
        section 4(a)(1) of this Act, except insofar as such laws would 
        otherwise apply to individuals who have extraordinary ability 
        in the sciences, arts, education, or business, which has been 
        demonstrated by sustained national or international acclaim, 
        and that''; and
          (2) by adding at the end the following:
  ``(d) Buy and Build American.--It is the intention of the Congress 
that this Act, among other things, result in a healthy and growing 
American industrial, manufacturing, transportation, and service sector 
employing the vast talents of America's workforce to assist in the 
development of energy from the outer Continental Shelf. Moreover, the 
Congress intends to monitor the deployment of personnel and material on 
the outer Continental Shelf to encourage the development of American 
technology and manufacturing to enable United States workers to benefit 
from this Act by good jobs and careers, as well as the establishment of 
important industrial facilities to support expanded access to American 
resources.''.

SEC. 221. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL SPILL 
                    PREVENTION.

  (a) Establishment.--There is established in the Legislative branch 
the National Commission on Outer Continental Shelf Oil Spill Prevention 
(referred to in this section as the ``Commission'').
  (b) Purposes.--The purposes of the Commission are--
          (1) to examine and report on the facts and causes relating to 
        the Deepwater Horizon explosion and oil spill of 2010;
          (2) to ascertain, evaluate, and report on the evidence 
        developed by all relevant governmental agencies regarding the 
        facts and circumstances surrounding the incident;
          (3) to build upon the investigations of other entities, and 
        avoid unnecessary duplication, by reviewing the findings, 
        conclusions, and recommendations of--
                  (A) the Committees on Energy and Natural Resources 
                and Commerce, Science, and Transportation of the 
                Senate;
                  (B) the Committee on Natural Resources and the 
                Subcommittee on Oversight and Investigations of the 
                House of Representatives; and
                  (C) other Executive branch, congressional, or 
                independent commission investigations into the 
                Deepwater Horizon incident of 2010, other fatal oil 
                platform accidents and major spills, and major oil 
                spills generally;
          (4) to make a full and complete accounting of the 
        circumstances surrounding the incident, and the extent of the 
        preparedness of the United States for, and immediate response 
        of the United States to, the incident; and
          (5) to investigate and report to the President and Congress 
        findings, conclusions, and recommendations for corrective 
        measures that may be taken to prevent similar incidents.
  (c) Composition of Commission.--
          (1) Members.--The Commission shall be composed of 10 members, 
        of whom--
                  (A) 1 member shall be appointed by the President, who 
                shall serve as Chairperson of the Commission;
                  (B) 1 member shall be appointed by the majority or 
                minority (as the case may be) leader of the Senate from 
                the Republican Party and the majority or minority (as 
                the case may be) leader of the House of Representatives 
                from the Republican Party, who shall serve as Vice 
                Chairperson of the Commission;
                  (C) 2 members shall be appointed by the senior member 
                of the leadership of the Senate from the Democratic 
                Party;
                  (D) 2 members shall be appointed by the senior member 
                of the leadership of the House of Representatives from 
                the Republican Party;
                  (E) 2 members shall be appointed by the senior member 
                of the leadership of the Senate from the Republican 
                Party; and
                  (F) 2 members shall be appointed by the senior member 
                of the leadership of the House of Representatives from 
                the Democratic Party.
          (2) Qualifications; initial meeting.--
                  (A) Political party affiliation.--Not more than 5 
                members of the Commission shall be from the same 
                political party.
                  (B) Nongovernmental appointees.--An individual 
                appointed to the Commission may not be a current 
                officer or employee of the Federal Government or any 
                State or local government.
                  (C) Other qualifications.--It is the sense of 
                Congress that individuals appointed to the Commission 
                should be prominent United States citizens, with 
                national recognition and significant depth of 
                experience and expertise in such areas as--
                          (i) engineering;
                          (ii) environmental compliance;
                          (iii) health and safety law (particularly oil 
                        spill legislation);
                          (iv) oil spill insurance policies;
                          (v) public administration;
                          (vi) oil and gas exploration and production;
                          (vii) environmental cleanup; and
                          (viii) fisheries and wildlife management.
                  (D) Deadline for appointment.--All members of the 
                Commission shall be appointed on or before September 
                15, 2010.
                  (E) Initial meeting.--The Commission shall meet and 
                begin the operations of the Commission as soon as 
                practicable after the date of enactment of this Act.
          (3) Quorum; vacancies.--
                  (A) In general.--After the initial meeting of the 
                Commission, the Commission shall meet upon the call of 
                the Chairperson or a majority of the members of the 
                Commission.
                  (B) Quorum.--6 members of the Commission shall 
                constitute a quorum.
                  (C) Vacancies.--Any vacancy in the Commission shall 
                not affect the powers of the Commission, but shall be 
                filled in the same manner in which the original 
                appointment was made.
  (d) Functions of Commission.--
          (1) In general.--The functions of the Commission are--
                  (A) to conduct an investigation that--
                          (i) investigates relevant facts and 
                        circumstances relating to the Deepwater Horizon 
                        incident of April 20, 2010, and the associated 
                        oil spill thereafter, including any relevant 
                        legislation, Executive order, regulation, plan, 
                        policy, practice, or procedure; and
                          (ii) may include relevant facts and 
                        circumstances relating to--
                                  (I) permitting agencies;
                                  (II) environmental and worker safety 
                                law enforcement agencies;
                                  (III) national energy requirements;
                                  (IV) deepwater and ultradeepwater oil 
                                and gas exploration and development;
                                  (V) regulatory specifications, 
                                testing, and requirements for offshore 
                                oil and gas well explosion prevention;
                                  (VI) regulatory specifications, 
                                testing, and requirements offshore oil 
                                and gas well casing and cementing 
                                regulation;
                                  (VII) the role of congressional 
                                oversight and resource allocation; and
                                  (VIII) other areas of the public and 
                                private sectors determined to be 
                                relevant to the Deepwater Horizon 
                                incident by the Commission;
                  (B) to identify, review, and evaluate the lessons 
                learned from the Deepwater Horizon incident of April 
                20, 2010, regarding the structure, coordination, 
                management policies, and procedures of the Federal 
                Government, and, if appropriate, State and local 
                governments and nongovernmental entities, and the 
                private sector, relative to detecting, preventing, and 
                responding to those incidents; and
                  (C) to submit to the President and Congress such 
                reports as are required under this section containing 
                such findings, conclusions, and recommendations as the 
                Commission determines to be appropriate, including 
                proposals for organization, coordination, planning, 
                management arrangements, procedures, rules, and 
                regulations.
          (2) Relationship to inquiry by congressional committees.--In 
        investigating facts and circumstances relating to energy 
        policy, the Commission shall--
                  (A) first review the information compiled by, and any 
                findings, conclusions, and recommendations of, the 
                committees identified in subparagraphs (A) and (B) of 
                subsection (b)(3); and
                  (B) after completion of that review, pursue any 
                appropriate area of inquiry, if the Commission 
                determines that--
                          (i) those committees have not investigated 
                        that area;
                          (ii) the investigation of that area by those 
                        committees has not been completed; or
                          (iii) new information not reviewed by the 
                        committees has become available with respect to 
                        that area.
  (e) Powers of Commission.--
          (1) Hearings and evidence.--The Commission or, on the 
        authority of the Commission, any subcommittee or member of the 
        Commission, may, for the purpose of carrying out this section--
                  (A) hold such hearings, meet and act at such times 
                and places, take such testimony, receive such evidence, 
                and administer such oaths; and
                  (B) require, by subpoena or otherwise, the attendance 
                and testimony of such witnesses and the production of 
                such books, records, correspondence, memoranda, papers, 
                documents, tapes, and materials;
as the Commission or such subcommittee or member considers to be 
advisable.
          (2) Subpoenas.--
                  (A) Issuance.--
                          (i) In general.--A subpoena may be issued 
                        under this paragraph only--
                                  (I) by the agreement of the 
                                Chairperson and the Vice Chairperson; 
                                or
                                  (II) by the affirmative vote of 6 
                                members of the Commission.
                          (ii) Signature.--Subject to clause (i), a 
                        subpoena issued under this paragraph--
                                  (I) shall bear the signature of the 
                                Chairperson or any member designated by 
                                a majority of the Commission;
                                  (II) and may be served by any person 
                                or class of persons designated by the 
                                Chairperson or by a member designated 
                                by a majority of the Commission for 
                                that purpose.
                  (B) Enforcement.--
                          (i) In general.--In the case of contumacy or 
                        failure to obey a subpoena issued under 
                        subparagraph (A), the United States district 
                        court for the district in which the subpoenaed 
                        person resides, is served, or may be found, or 
                        where the subpoena is returnable, may issue an 
                        order requiring the person to appear at any 
                        designated place to testify or to produce 
                        documentary or other evidence.
                          (ii) Judicial action for noncompliance.--Any 
                        failure to obey the order of the court may be 
                        punished by the court as a contempt of that 
                        court.
                          (iii) Additional enforcement.--In the case of 
                        any failure of any witness to comply with any 
                        subpoena or to testify when summoned under 
                        authority of this subsection, the Commission 
                        may, by majority vote, certify a statement of 
                        fact constituting such failure to the 
                        appropriate United States attorney, who may 
                        bring the matter before the grand jury for 
                        action, under the same statutory authority and 
                        procedures as if the United States attorney had 
                        received a certification under sections 102 
                        through 104 of the Revised Statutes (2 U.S.C. 
                        192 through 194).
          (3) Contracting.--The Commission may, to such extent and in 
        such amounts as are provided in appropriation Acts, enter into 
        contracts to enable the Commission to discharge the duties of 
        the Commission under this section.
          (4) Information from federal agencies.--
                  (A) In general.--The Commission may secure directly 
                from any Executive department, bureau, agency, board, 
                commission, office, independent establishment, or 
                instrumentality of the Federal Government, information, 
                suggestions, estimates, and statistics for the purposes 
                of this section.
                  (B) Cooperation.--Each Federal department, bureau, 
                agency, board, commission, office, independent 
                establishment, or instrumentality shall, to the extent 
                authorized by law, furnish information, suggestions, 
                estimates, and statistics directly to the Commission, 
                upon request made by the Chairperson, the Chairperson 
                of any subcommittee created by a majority of the 
                Commission, or any member designated by a majority of 
                the Commission.
                  (C) Receipt, handling, storage, and dissemination.--
                Information shall be received, handled, stored, and 
                disseminated only by members of the Commission and the 
                staff of the Commission in accordance with all 
                applicable laws (including regulations and Executive 
                orders).
          (5) Assistance from federal agencies.--
                  (A) General services administration.--The 
                Administrator of General Services shall provide to the 
                Commission on a reimbursable basis administrative 
                support and other services for the performance of the 
                functions of the Commission.
                  (B) Other departments and agencies.--In addition to 
                the assistance prescribed in subparagraph (A), 
                departments and agencies of the United States may 
                provide to the Commission such services, funds, 
                facilities, staff, and other support services as are 
                determined to be advisable and authorized by law.
          (6) Gifts.--The Commission may accept, use, and dispose of 
        gifts or donations of services or property, including travel, 
        for the direct advancement of the functions of the Commission.
          (7) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as departments and agencies of the United States.
  (f) Public Meetings and Hearings.--
          (1) Public meetings and release of public versions of 
        reports.--The Commission shall--
                  (A) hold public hearings and meetings, to the extent 
                appropriate; and
                  (B) release public versions of the reports required 
                under paragraphs (1) and (2) of subsection (j).
          (2) Public hearings.--Any public hearings of the Commission 
        shall be conducted in a manner consistent with the protection 
        of proprietary or sensitive information provided to or 
        developed for or by the Commission as required by any 
        applicable law (including a regulation or Executive order).
  (g) Staff of Commission.--
          (1) In general.--
                  (A) Appointment and compensation.--
                          (i) In general.--The Chairperson, in 
                        consultation with the Vice Chairperson and in 
                        accordance with rules agreed upon by the 
                        Commission, may, without regard to the civil 
                        service laws (including regulations), appoint 
                        and fix the compensation of a staff director 
                        and such other personnel as are necessary to 
                        enable the Commission to carry out the 
                        functions of the Commission.
                          (ii) Maximum rate of pay.--No rate of pay 
                        fixed under this subparagraph may exceed the 
                        equivalent of that payable for a position at 
                        level V of the Executive Schedule under section 
                        5316 of title 5, United States Code.
                  (B) Personnel as federal employees.--
                          (i) In general.--The staff director and any 
                        personnel of the Commission who are employees 
                        shall be considered to be employees under 
                        section 2105 of title 5, United States Code, 
                        for purposes of chapters 63, 81, 83, 84, 85, 
                        87, 89, and 90 of that title.
                          (ii) Members of commission.--Clause (i) shall 
                        not apply to members of the Commission.
          (2) Detailees.--
                  (A) In general.--An employee of the Federal 
                Government may be detailed to the Commission without 
                reimbursement.
                  (B) Civil service status.--The detail of the employee 
                shall be without interruption or loss of civil service 
                status or privilege.
          (3) Procurement of temporary and intermittent services.--The 
        Chairperson of the Commission may procure temporary and 
        intermittent services in accordance with section 3109(b) of 
        title 5, United States Code, at rates for individuals that do 
        not exceed the daily equivalent of the annual rate of basic pay 
        prescribed for level V of the Executive Schedule under section 
        5316 of that title.
  (h) Compensation and Travel Expenses.--
          (1) Compensation of members.--
                  (A) Non-federal employees.--A member of the 
                Commission who is not an officer or employee of the 
                Federal Government shall be compensated at a rate equal 
                to the daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which the member is 
                engaged in the performance of the duties of the 
                Commission.
                  (B) Federal employees.--A member of the Commission 
                who is an officer or employee of the Federal Government 
                shall serve without compensation in addition to the 
                compensation received for the services of the member as 
                an officer or employee of the Federal Government.
          (2) Travel expenses.--A member of the Commission shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for an employee of an agency 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from the home or regular place of business of 
        the member in the performance of the duties of the Commission.
  (i) Security Clearances for Commission Members and Staff.--
          (1) In general.--Subject to paragraph (2), the appropriate 
        Federal agencies or departments shall cooperate with the 
        Commission in expeditiously providing to the members and staff 
        of the Commission appropriate security clearances, to the 
        maximum extent practicable, pursuant to existing procedures and 
        requirements.
          (2) Proprietary information.--No person shall be provided 
        with access to proprietary information under this section 
        without the appropriate security clearances.
  (j) Reports of Commission; Adjournment.--
          (1) Interim reports.--The Commission may submit to the 
        President and Congress interim reports containing such 
        findings, conclusions, and recommendations for corrective 
        measures as have been agreed to by a majority of members of the 
        Commission.
          (2) Final report.--Not later than 180 days after the date of 
        the enactment of this Act, the Commission shall submit to the 
        President and Congress a final report containing such findings, 
        conclusions, and recommendations for corrective measures as 
        have been agreed to by a majority of members of the Commission.
          (3) Temporary adjournment.--
                  (A) In general.--The Commission, and all the 
                authority provided under this section, shall adjourn 
                and be suspended, respectively, on the date that is 60 
                days after the date on which the final report is 
                submitted under paragraph (2).
                  (B) Administrative activities before termination.--
                The Commission may use the 60-day period referred to in 
                subparagraph (A) for the purpose of concluding 
                activities of the Commission, including--
                          (i) providing testimony to committees of 
                        Congress concerning reports of the Commission; 
                        and
                          (ii) disseminating the final report submitted 
                        under paragraph (2).
                  (C) Reconvening of commission.--The Commission shall 
                stand adjourned until such time as the President or the 
                Secretary of Homeland Security declares an oil spill of 
                national significance to have occurred, at which time--
                          (i) the Commission shall reconvene in 
                        accordance with subsection (c)(3); and
                          (ii) the authority of the Commission under 
                        this section shall be of full force and effect.
  (k) Funding.--
          (1) Authorization of appropriations.--There are authorized to 
        be appropriated to carry out this section--
                  (A) $10,000,000 for the first fiscal year in which 
                the Commission convenes; and
                  (B) $3,000,000 for each fiscal year thereafter in 
                which the Commission convenes.
          (2) Availability.--Amounts made available to carry out this 
        section shall be available--
                  (A) for transfer to the Commission for use in 
                carrying out the functions and activities of the 
                Commission under this section; and
                  (B) until the date on which the Commission adjourns 
                for the fiscal year under subsection (j)(3).
  (l) Nonapplicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.

Subtitle B--Safety, Environmental, and Financial Reform of the Federal 
                  Onshore Oil and Gas Leasing Program

SEC. 231. DILIGENT DEVELOPMENT.

  (a) Regulations.--The Secretary shall issue regulations within one 
year after the date of enactment of this Act that define ``diligent 
development'' for purposes of all new leases issued under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.) and all new leases issued under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.). Such 
regulations shall--
          (1) include benchmarks for oil and gas development that will 
        ensure that leaseholders take all appropriate measures 
        necessary to produce oil and gas from each lease that contains 
        commercial quantities of oil and gas within the original term 
        of the lease;
          (2) require each leaseholder to submit to the Secretary a 
        diligent development plan showing how the lessee will meet the 
        benchmarks;
          (3) provide accommodation for development delays, including 
        lease suspensions, directed by the Secretary that restrict 
        diligent development in order to meet environmental 
        stipulations and considerations; and
          (4) require submission of diligent development plans in an 
        electronic format proscribed by the Secretary, which the 
        Secretary shall make available for public review.
  (b) Beginning of Lease Term.--The regulations shall provide that the 
term of a lease shall not begin until the completion of all civil 
actions challenging--
          (1) the issuance of the lease; and
          (2) the issuance of all permits required to initiate 
        operations under the lease.
  (c) Failure to Comply With Requirements.--If any person fails to 
comply with the requirements of any regulation issued under this 
section, or any order issued to implement such a regulation, with 
respect to a lease, such lease may be terminated by the Secretary.

SEC. 232. REPORTING REQUIREMENTS.

  (a) Biannual Reports.--The Secretary shall require biannual reports 
from each Federal oil and gas lessee that holds a nonproducing lease on 
the actions the lessee has taken to diligently develop each Federal 
lease the lessee holds.
  (b) Electronic Database.--The Secretary shall establish and maintain 
an electronic database that is available to the public that identifies 
each Federal oil and gas lease, each lessee under such lease, the 
acreage held by each such lessee, and the progress made toward 
production under each such lease.

SEC. 233. NOTICE REQUIREMENTS.

  Section 17(f) of the Mineral Leasing Act (30 U.S.C. 226(f)) is 
amended--
          (1) by striking all through the first 2 sentences and 
        inserting the following:
  ``(f)(1) At least 45 days before offering lands for lease under this 
section, and at least 30 days before approving applications for permits 
to drill under the provisions of a lease or substantially modifying the 
terms of any lease issued under this section, the Secretary shall 
provide notice of the proposed action to--
          ``(A) the general public by posting such notice in the 
        appropriate local office and on the electronic website of the 
        leasing and land management agencies offering the lands for 
        lease;
          ``(B) all surface land owners in the area of the lands being 
        offered for lease; and
          ``(C) the holders of special recreation permits for 
        commercial use, competitive events, and other organized 
        activities on the lands being offered for lease.
  ``(2)''; and
          (2) by designating the last sentence as paragraph (3).

SEC. 234. OIL AND GAS LEASING SYSTEM.

  (a) Onshore Oil and Gas Leasing.--Section 17(a) of the Mineral 
Leasing Act (30 U.S.C. 226(a)) is amended to read as follows:
  ``(a)(1) All lands subject to disposition under this Act that are 
known or believed to contain oil or gas deposits may be leased by the 
Secretary.
  ``(2) Leasing activities under this Act shall be conducted to assure 
receipt of fair market value for the lands and resources leased and the 
rights conveyed by the Federal Government.''.
  (b) Competitive Bidding.--Section 17(b) of the Mineral Leasing Act 
(30 U.S.C. 226(b)), is amended by striking so much as precedes 
paragraph (2) and inserting the following:
  ``(b)(1)(A) All lands to be leased shall be leased as provided in 
this paragraph to the highest responsible qualified bidder by 
competitive bidding under general regulations in units of not more than 
2,560 acres, except in Alaska, where units shall be not more than 5,760 
acres. Such units shall be as nearly compact as possible. Lease sales 
shall be conducted by sealed bid. Lease sales shall be held for a State 
on a statewide basis where eligible lands in such States are available 
no more than 3 times per year per State, unless the Secretary of the 
Interior determines additional sales are necessary. A lease shall be 
conditioned upon the payment of a royalty at a rate of not less than 
12.5 percent in amount or value of the production removed or sold from 
the lease. The Secretary may issue a lease to the responsible qualified 
bidder with the highest bid that is equal to or greater than the 
national minimum acceptable bid, with evaluation of the value of the 
lands proposed for lease. The Secretary shall decide whether to accept 
a bid and issue a lease within 90 days following payment by the 
successful bidder of the remainder of the bonus bid, if any, and the 
annual rental for the first lease year. All bids for less than the 
national minimum acceptable bid shall be rejected.
  ``(B)(i) The national minimum acceptable bid shall be $2.50 per acre, 
except that the Secretary may establish a higher minimum acceptable bid 
for leases of areas in a State for all leases awarded after the 2-year 
period beginning on the date of enactment of the Consolidated Land, 
Energy, and Aquatic Resources Act of 2010, if the Secretary finds that 
such a higher amount is necessary--
          ``(I) to enhance financial returns to the United States; and
          ``(II) to promote more efficient management of oil and gas 
        resources on Federal lands.
  ``(ii) The proposal or promulgation of any regulation to establish a 
higher minimum acceptable bid for a State shall not be considered a 
major Federal action that is subject to the requirements of section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(c)).''.
  (c) Rentals.--Section 17(d) of the Mineral Leasing (30 U.S.C. 226(d)) 
is amended to read as follows:
  ``(d)(1) During the 2-year period beginning on the date of enactment 
of the Consolidated Land, Energy, and Aquatic Resources Act of 2010, 
all leases issued under this section shall be conditioned upon payment 
by the lessee of a rental of not less than $2.50 per acre per year for 
the first through fifth years of the lease and not less than $3 per 
acre per year for each year thereafter. After the end of such 2-year 
period, the Secretary may establish higher rental rates for all 
subsequent years, if the Secretary finds that such action is 
necessary--
          ``(A) to enhance financial returns to the United States; and
          ``(B) to promote more efficient management of oil and gas and 
        alternative energy resources on Federal lands.
  ``(2) A minimum royalty in lieu of rental of not less than the rental 
that otherwise would be required for that lease year shall be payable 
at the expiration of each lease year beginning on or after a discovery 
of oil or gas in paying quantities on the land leased.''.
  (d) Elimination of Noncompetitive Leasing.--The Mineral Leasing Act 
is amended--
          (1) in section 17(b) (30 U.S.C. 226(b)), by striking 
        paragraph (3);
          (2) in section 17 (30 U.S.C. 226) by striking subsection (c);
          (3) in section 17(e) (30 U.S.C. 226(e))--
                  (A) by striking ``Competitive and noncompetitive 
                leases'' and inserting ``Leases''; and
                  (B) by striking ``competitive'';
          (4) in section 31(d)(1) (30 U.S.C. 188(d)(1) by striking ``or 
        section 17(c)'';
          (5) in section 31(e) (30 U.S.C. 188(e))--
                  (A) in paragraph (2) by striking ``, or the 
                inclusion'' and all that follows and inserting a 
                semicolon; and
                  (B) in paragraph (3) by striking ``(A)'' and by 
                striking subparagraph (B);
          (6) by striking section 31(f) (30 U.S.C. 188(f)); and
          (7) in section 31(g) (30 U.S.C. 188(g))--
                  (A) in paragraph (1) by striking ``a competitive'' 
                and all that follows through the period and inserting 
                ``in the same manner as the original lease issued 
                pursuant to section 17.'';
                  (B) by striking paragraph (2); and
                  (C) in paragraph (3) by striking ``, applicable to 
                leases issued under subsection 17(c) of this Act (30 
                U.S.C. 226(c)) except,'' and inserting ``, except''.

SEC. 235. ELECTRONIC REPORTING.

  (a) Rights-of-way.--Section 28(w) of the Mineral Leasing Act (30 
U.S.C. 185(w)) is amended by adding at the end the following:
          ``(4) Upon request of a Committee listed under paragraph (2), 
        that Committee may receive notifications under this subsection 
        in electronic format in addition to in writing, or in 
        electronic format alone. The Committee shall designate to the 
        Secretary the appropriate individual or individuals on the 
        Committee to receive such electronic notices.''.
  (b) Lease Reinstatement.--Section 31(e) of the Mineral Leasing Act 
(30 U.S.C. 188(e)) is amended by adding at the end the following: 
``Upon request of such a Committee, that Committee may receive 
notifications under this subsection in electronic format in addition to 
in writing, or in electronic format alone. The Committee shall 
designate to the Secretary the appropriate individual or individuals on 
the Committee to receive such electronic notices.''.

SEC. 236. BEST MANAGEMENT PRACTICES.

  Not later than one year after the date of enactment of this Act, the 
Secretary of the Interior shall promulgate final regulations that 
require oil and gas operators to use best management practices that 
ensure the sound, efficient, and environmentally responsible 
development of oil and gas on Federal lands in a manner that avoids 
where practical, minimizes, and mitigates actual and anticipated 
impacts to environmental habitat functions resulting from oil and gas 
development. Such regulations may allow the Secretary to approve site-
specific adjustments to address unique issues and circumstances, on a 
case-by-case basis. All such regulations shall be consistent with the 
United States trust responsibility to Indian tribes.

SEC. 237. SURFACE DISTURBANCE, RECLAMATION.

  Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is 
amended to read as follows:
  ``(g) Regulation of Surface-disturbing Activities; Approval of Plan 
of Operations; Bond or Surety; Failure to Comply With Reclamation 
Requirements as Barring Lease; Opportunity to Comply With Requirements; 
Standards; Monitoring.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Interim reclamation plan.--The term `Interim 
                Reclamation Plan' means an ongoing plan specifying 
                reclamation steps to be taken on all disturbed areas 
                covered by any lease issued under this Act which are 
                not needed for active operations. Such Interim 
                Reclamation Plans shall be reviewed by the relevant 
                Secretary at regular intervals and shall be amended as 
                warranted, subject to the approval of the relevant 
                Secretary.
                  ``(B) Final reclamation plan.--The term `Final 
                Reclamation Plan' includes a detailed description of 
                all reclamation activity to be conducted for all 
                disturbed areas covered by a lease issued under this 
                Act prior to final abandonment. Final Reclamation Plans 
                shall include reclamation of all locations, facilities, 
                trenches, rights-of-way, roads and any other surface 
                disturbance on lands covered by the lease.
          ``(2) In general.--The Secretary of the Interior, or for 
        National Forest lands, the Secretary of Agriculture, shall 
        regulate all surface-disturbing activities conducted pursuant 
        to any lease issued under this Act, and shall determine 
        reclamation and other actions as required in the interest of 
        conservation of surface resources.
          ``(3) Reclamation plans required.--
                  ``(A) Applications for permits to drill.--Each 
                application for a permit to drill submitted to the 
                Secretary pursuant to this Act shall include both an 
                Interim Reclamation Plan and a Final Reclamation Plan.
                  ``(B) Analysis and approval required.--No permit to 
                drill on an oil and gas lease issued under this Act may 
                be granted without the analysis and approval by the 
                Secretary concerned of both an interim reclamation plan 
                and a final reclamation plan covering proposed surface-
                disturbing activities within the lease area.
                  ``(C) Plans of operations.--All Plans of Operations 
                submitted and approved pursuant to this Act shall 
                include an Interim Reclamation Plan.
          ``(4) Bonding.--The Secretary concerned shall, by regulation, 
        require that an adequate bond, surety, or other financial 
        arrangement will be established prior to the commencement of 
        surface-disturbing activities on any lease, to ensure the 
        complete and timely reclamation of the lease tract, and the 
        restoration of any lands or surface waters adversely affected 
        by lease operations after the abandonment or cessation of oil 
        and gas operations on the lease. The Secretary shall not issue 
        a lease or leases or approve the assignment of any lease or 
        leases under the terms of this section to any person, 
        association, corporation, or any subsidiary, affiliate, or 
        person controlled by or under common control with such person, 
        association, or corporation, during any period in which, as 
        determined by the Secretary of the Interior or Secretary of 
        Agriculture, such entity has failed or refused to comply in any 
        material respect with the reclamation requirements and other 
        standards established under this section for any prior lease to 
        which such requirements and standards applied. Prior to making 
        such determination with respect to any such entity the 
        concerned Secretary shall provide such entity with adequate 
        notification and an opportunity to comply with such reclamation 
        requirements and other standards and shall consider whether any 
        administrative or judicial appeal is pending. Once the entity 
        has complied with the reclamation requirement or other standard 
        concerned an oil or gas lease may be issued to such entity 
        under this Act.
          ``(5) Standards.--The Secretary of the Interior and the 
        Secretary of Agriculture shall, by regulation, establish 
        uniform standards for all Interim and Final Reclamation Plans. 
        The goal of such plans shall be the restoration of the affected 
        ecosystem to a condition approximating or equal to that which 
        existed prior to the surface disturbance. Such standards shall 
        include, but are not limited to, restoration of natural 
        vegetation and hydrology, habitat restoration, salvage, storage 
        and reuse of topsoils, erosion control, control of invasive 
        species and noxious weeds and natural contouring.
          ``(6) Monitoring.--The Secretary concerned shall not approve 
        final abandonment and shall not release any bond required by 
        this Act until the standards and requirement for final 
        reclamation established pursuant to this Act have been met.''.

SEC. 238. WILDLIFE SUSTAINABILITY.

  (a) Definitions.--In this section:
          (1) Desired nonnative species.--The term ``desired nonnative 
        species'' means those wild species of plants or animals that 
        are not indigenous to a planning area but are valued for their 
        contribution to species diversity or their social, cultural, or 
        economic value.
          (2) Focal species.--The term ``focal species'' means species 
        selected, based on best available science, for monitoring 
        because their population status and trends are believed to 
        provide useful information regarding the effects of management 
        activities, or other factors, on the diversity of ecological 
        systems to which they belong, and to validate the monitoring of 
        habitats and ecological conditions.
          (3) Native species.--The term ``native species'' means 
        species of plants and animals indigenous to a planning area.
          (4) Planning area.--The term ``planning area'' means any 
        geographic unit of National Forest System lands or Bureau of 
        Land Management lands covered by an individual management plan.
          (5) Secretary.--The term ``Secretary'' means--
                  (A) the Secretary of the Interior, with respect to 
                land under such Secretary's jurisdiction; and
                  (B) the Secretary of Agriculture, with respect to 
                land under such Secretary's jurisdiction.
          (6) Sustainable population.--The term ``sustainable 
        population'' means a population of a species that has a high 
        likelihood of persisting well distributed throughout its range 
        within a planning area based on the best available scientific 
        information, including information obtained through the 
        monitoring program under subsection (c), regarding its habitat 
        and ecological conditions, abundance and distribution.
  (b) Planning for and Management of Sustainable Populations.--
          (1) Management direction.--Each Secretary, in cooperation 
        with the appropriate State fish and wildlife agency, shall plan 
        for and manage planning areas under the Secretary's respective 
        jurisdiction in order to maintain sustainable populations of 
        native species and desired nonnative species within each 
        planning area consistent with--
                  (A) the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1701 et seq.);
                  (B) the National Forest Management Act (16 U.S.C. 
                1600); and
                  (C) all other applicable laws.
          (2) Management coordination.--If a population of a species 
        extends across more than one planning area, each Secretary 
        shall coordinate the management of lands in the planning areas 
        containing such population in order to maintain a sustainable 
        population of such species.
          (3) Extrinsic conditions.--If a Secretary, using the best 
        available science and after providing notice to the public by 
        publication in the Federal Register and opportunity for public 
        comment for a period of at least 60 days, determines that 
        conditions beyond such Secretary's authority make it impossible 
        for the Secretary to maintain a sustainable population of a 
        native species or desired nonnative species within a planning 
        area, or, under the circumstances identified in paragraph (2), 
        within two or more planning areas, such Secretary shall--
                  (A) manage lands within the planning area or areas in 
                order to achieve, to the maximum extent possible, the 
                survival and health of that population; and
                  (B) certify that, to the maximum extent practicable, 
                any activity authorized, funded, or carried out within 
                the planning area or areas does not increase the 
                likelihood of extirpation of the population in such 
                planning area or areas.
          (4) Compliance.--Each Secretary shall certify that land 
        management plans for a planning area under the Secretary's 
        respective jurisdiction and actions implementing or authorized 
        under such plans comply with this section.
  (c) Monitoring and Evaluation.--
          (1) Establishment of monitoring programs.--To provide a basis 
        for determining the sustainability of native species and 
        desired nonnative species populations for purposes of 
        subsection (b), each Secretary shall adopt and implement, as 
        part of the land management planning for a planning area, a 
        strategically targeted monitoring program for identified focal 
        species to determine the status and trends of such species 
        populations in such planning area.
          (2) Monitoring program requirements.--The monitoring programs 
        established under paragraph (1) shall designate focal species 
        representing the diversity of ecological systems in the 
        planning area and provide for--
                  (A) monitoring of the status and trends of the 
                habitats and ecological conditions that support focal 
                species; and
                  (B) population surveys of focal species identified in 
                the monitoring program to establish that monitoring of 
                habitats and ecological conditions is providing 
                accurate information regarding the status and trends of 
                species' populations in the planning area.
          (3) Consultation and cooperation with states.--Each Secretary 
        shall develop and implement, to the maximum extent practicable, 
        the monitoring program established under this section, 
        including the selection of native species and desired nonnative 
        species, focal species, habitat, and ecological conditions to 
        be monitored and methodologies for conducting such monitoring, 
        in consultation with the United States Fish and Wildlife 
        Service, State fish and wildlife agencies and in coordination 
        with other State agencies with responsibility for management of 
        natural resources. Each Secretary shall consider and utilize 
        relevant population data maintained by other Federal agencies, 
        State agencies, tribes, or other relevant entities.
  (d) Coordination.--
          (1) Management coordination.--To the maximum extent 
        practicable and consistent with applicable law, each Secretary 
        shall coordinate the management of planning areas with the 
        management of the National Wildlife Refuge System and the 
        National Park System, other Federal agencies, State fish and 
        wildlife agencies, other State agencies with responsibility for 
        management of natural resources, tribes, local governments, and 
        nongovernmental organizations engaged in species conservation 
        in order to--
                  (A) maintain sustainable populations of native 
                species and desired nonnative species;
                  (B) develop strategies to address the impacts of 
                climate change on native species and desired nonnative 
                species;
                  (C) establish linkages between habitats and discrete 
                populations;
                  (D) reintroduce extirpated species, where 
                appropriate, when a species population is no longer 
                present; and
                  (E) conduct other joint efforts in support of 
                sustainable plant and animal communities across 
                jurisdictional boundaries.
          (2) Coordination with conservation activities.--In planning 
        for the management of lands for the purpose of maintaining 
        sustainable populations of native species and desired nonnative 
        species in a planning area, each Secretary shall, to the 
        maximum extent practicable and consistent with Federal law--
                  (A) consult with and offer opportunities for 
                participation to adjoining Federal, State, tribal, 
                local, and private landowners, State and tribal fish 
                and wildlife agencies, and other State and tribal 
                agencies with responsibility for management of natural 
                resources; and
                  (B) coordinate such management planning with relevant 
                conservation plans for fish, plants, and wildlife and 
                their habitats, including State comprehensive wildlife 
                strategies and other State conservation strategies for 
                species, National Fish Habitat partnerships, North 
                American Wetland Conservation Joint Ventures, and the 
                Federal-State-private partnership known as Partners in 
                Flight.
          (3) No effect on national wildlife refuge system or national 
        park system.--Nothing in this section affects the laws or 
        management standards applicable to lands or species populations 
        within the National Wildlife Refuge System or National Park 
        System.
  (e) Implementing Regulations.--
          (1) Regulations.--Not later than one year following the date 
        of enactment of this Act, each Secretary shall issue 
        regulations implementing all provisions of this section.
          (2) Regulations under the national forest management act.--
        Issuance of regulations consistent with the requirements of 
        this section shall be deemed consistent with the Secretary's 
        obligation to promulgate regulations to specify guidelines for 
        land management plans for the National Forest System which 
        provide for diversity of plant and animal communities pursuant 
        to the National Forest Management Act (16 U.S.C. sec. 
        1604(g)(3)(B)).
  (f) Construction.--Nothing in this section shall be construed to--
          (1) affect the authority, jurisdiction, or responsibility of 
        each of the several States to manage, control, or regulate 
        fish, plants, and wildlife under the laws and regulations of 
        each of the States; or
          (2) authorize a Secretary to control or regulate within a 
        State the fishing or hunting of fish and wildlife within the 
        State except insofar as the Secretary may exercise authority 
        granted to him or her under other laws.

SEC. 239. ONLINE AVAILABILITY TO THE PUBLIC OF INFORMATION RELATING TO 
                    OIL AND GAS CHEMICAL USE.

  (a) In General.--An operator authorized to explore for, develop, or 
produce oil and gas under any Federal mineral leasing law shall, within 
30 days after completion of drilling a well on a lease area or any 
portion thereof, make the list of chemicals used in drilling or 
completing the well, including the chemical constituents of mixtures, 
Chemical Abstracts Service numbers, and material safety data sheets, 
available to the public on an Internet website created and maintained 
by the Bureau of Safety and Environmental Enforcement.
  (b) Proprietary Chemical Formulas.--This section does not authorize 
the Director of the Bureau of Safety and Environmental Enforcement to 
require the public disclosure of proprietary chemical formulas.
  (c) Rulemaking Authority.--Not later than 1 year after the date of 
enactment of this Act, the Secretary, after providing notice and an 
opportunity for public comment, shall promulgate regulations to 
implement this section.

SEC. 240. LIMITATION ON ROYALTY-IN-KIND PROGRAM.

  Section 36 of the Mineral Leasing Act (30 U.S.C. 192) is amended by 
inserting before the period at the end of the first sentence the 
following: ``, except that the Secretary shall not conduct a regular 
program to take oil and gas lease royalties in oil or gas''.

SEC. 241. ENVIRONMENTAL REVIEW.

  Section 390 of the Energy Policy Act of 2005 (Public Law 109-58; 42 
U.S.C. 15942) is repealed.

SEC. 242. FEDERAL LANDS URANIUM LEASING.

  The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
redesignating section 44 as section 45, and by inserting after section 
43 the following new section:

``SEC. 44. LEASING OF LANDS FOR URANIUM MINING.

  ``(a) In General.--
          ``(1) Withdrawal from entry; leasing requirement.--Effective 
        upon the date of enactment of the Consolidated Land, Energy, 
        and Aquatic Resources Act of 2010, all Federal lands are hereby 
        permanently withdrawn from location and entry under section 
        2319 of the Revised Statutes (30 U.S.C. 22 et seq.) for 
        uranium. After the end of the 2-year period beginning on such 
        date of enactment, no uranium may be produced from Federal 
        lands except pursuant to a lease issued under this Act.
          ``(2) Leasing.--The Secretary--
                  ``(A) may divide any lands subject to this Act that 
                are not withdrawn from mineral leasing and that are 
                otherwise available for uranium leasing under 
                applicable law, including lands available under the 
                terms of land use plans prepared by the Federal agency 
                managing the land, into leasing tracts of such size as 
                the Secretary finds appropriate and in the public 
                interest; and
                  ``(B) thereafter shall, in the Secretary's 
                discretion, upon the request of any qualified applicant 
                or on the Secretary's own motion, from time to time, 
                offer such lands for uranium leasing and award uranium 
                leases thereon by competitive bidding.
  ``(b) Fair Market Value Required.--
          ``(1) In general.--No bid for a uranium lease shall be 
        accepted that is less than the fair market value, as determined 
        by the Secretary, of the uranium subject to the lease.
          ``(2) Public comment.--Prior to the Secretary's determination 
        of the fair market value of the uranium subject to the lease, 
        the Secretary shall give opportunity for and consideration to 
        public comments on the fair market value.
          ``(3) Disclosure not required.--Nothing in this section shall 
        be construed to require the Secretary to make public the 
        Secretary's judgment as to the fair market value of the uranium 
        to be leased, or the comments the Secretary receives thereon 
        prior to the issuance of the lease.
  ``(c) Lands Under the Jurisdiction of Other Agencies.--Leases 
covering lands the surface of which is under the jurisdiction of any 
Federal agency other than the Department of the Interior may be issued 
only--
          ``(1) upon consent of the head of the other Federal agency; 
        and
          ``(2) upon such conditions the head of such other Federal 
        agency may prescribe with respect to the use and protection of 
        the nonmineral interests in those lands.
  ``(d) Consideration of Effects of Mining.--Before issuing any uranium 
lease, the Secretary shall consider effects that mining under the 
proposed lease might have on an impacted community or area, including 
impacts on the environment, on agricultural, on cultural resources, and 
other economic activities, and on public services.
  ``(e) Notice of Proposed Lease.--No lease sale shall be held for 
lands until after a notice of the proposed offering for lease has been 
given once a week for three consecutive weeks in a newspaper of general 
circulation in the county in which the lands are situated, or in 
electronic format, in accordance with regulations prescribed by the 
Secretary.
  ``(f) Auction Requirements.--All lands to be leased under this 
section shall be leased to the highest responsible qualified bidder--
          ``(1) under general regulations;
          ``(2) in units of not more than 2,560 acres that are as 
        nearly compact as possible; and
          ``(3) by oral bidding.
  ``(g) Required Payments.--
          ``(1) In general.--A lease under this section shall be 
        conditioned upon the payment by the lessee of--
                  ``(A) a royalty at a rate of not less than 12.5 
                percent in amount or value of the production removed or 
                sold under the lease; and
                  ``(B) a rental of--
                          ``(i) not less than $2.50 per acre per year 
                        for the first through fifth years of the lease; 
                        and
                          ``(ii) not less than $3 per acre per year for 
                        each year thereafter.
          ``(2) Use of revenues.--Amounts received as revenues under 
        this subsection with respect to a lease may be used by the 
        Secretary of the Interior, subject to the availability of 
        appropriations, for cleaning up uranium mill tailings and 
        reclaiming abandoned uranium mines on Federal lands in 
        accordance with the priorities and eligibility restrictions, 
        respectively, under subsections (c) and (d) of section 411 of 
        the Surface Mining Control and Reclamation Act of 1977 (30 
        U.S.C. 1240a), or may be transferred by the Secretary, subject 
        to the availability of appropriations, to the Attorney General 
        for use by the Attorney General to pay claims filed under the 
        Radiation Exposure Compensation Act (42 U.S.C. 2210 note) that 
        the Attorney General determines meet the requirements of that 
        Act.
  ``(h) Lease Term.--A lease under this section--
          ``(1) shall be effective for a primary term of 10 years; and
          ``(2) shall continue in effect after such primary term for so 
        long is as uranium is produced under the lease in paying 
        quantities.
  ``(i) Exploration Licenses.--
          ``(1) In general.--The Secretary may, under such regulations 
        as the Secretary may prescribe, issue to any person an 
        exploration license. No person may conduct uranium exploration 
        for commercial purposes on lands subject to this Act without 
        such an exploration license. Each exploration license shall be 
        for a term of not more than two years and shall be subject to a 
        reasonable fee. An exploration license shall confer no right to 
        a lease under this Act. The issuance of exploration licenses 
        shall not preclude the Secretary from issuing uranium leases at 
        such times and locations and to such persons as the Secretary 
        deems appropriate. No exploration license may be issued for any 
        land on which a uranium lease has been issued. A separate 
        exploration license shall be required for exploration in each 
        State. An application for an exploration license shall identify 
        general areas and probable methods of exploration. Each 
        exploration license shall be limited to specific geographic 
        areas in each State as determined by the Secretary, and shall 
        contain such reasonable conditions as the Secretary may 
        require, including conditions to ensure the protection of the 
        environment, and shall be subject to all applicable Federal, 
        State, and local laws and regulations. Upon violation of any 
        such conditions or laws the Secretary may revoke the 
        exploration license.
          ``(2) Limitations.--A licensee may not cause substantial 
        disturbance to the natural land surface. A licensee may not 
        remove any uranium for sale but may remove a reasonable amount 
        of uranium from the lands subject to this Act included under 
        the Secretary's license for analysis and study. A licensee must 
        comply with all applicable rules and regulations of the Federal 
        agency having jurisdiction over the surface of the lands 
        subject to this Act. Exploration licenses covering lands the 
        surface of which is under the jurisdiction of any Federal 
        agency other than the Department of the Interior may be issued 
        only upon such conditions as it may prescribe with respect to 
        the use and protection of the nonmineral interests in those 
        lands.
          ``(3) Sharing of data.--The licensee shall furnish to the 
        Secretary copies of all data (including geological, 
        geophysical, and core drilling analyses) obtained during such 
        exploration. The Secretary shall maintain the confidentiality 
        of all data so obtained until after the areas involved have 
        been leased or until such time as the Secretary determines that 
        making the data available to the public would not damage the 
        competitive position of the licensee, whichever comes first.
          ``(4) Exploration without a license.--Any person who 
        willfully conducts uranium exploration for commercial purposes 
        on lands subject to this Act without an exploration license 
        issued under this subsection shall be subject to a fine of not 
        more than $1,000 for each day of violation. All data collected 
        by such person on any Federal lands as a result of such 
        violation shall be made immediately available to the Secretary, 
        who shall make the data available to the public as soon as it 
        is practicable. No penalty under this subsection shall be 
        assessed unless such person is given notice and opportunity for 
        a hearing with respect to such violation.
  ``(j) Conversion of Mining Claims to Mineral Leases.--
          ``(1) In general.--The owner of any mining claim (in this 
        subsection referred to as a `claimant') located prior to the 
        date of enactment of the Consolidated Land, Energy, and Aquatic 
        Resources Act of 2010 may, within two years after such date, 
        apply to the Secretary of the Interior to convert the claim to 
        a lease under this section. The Secretary shall issue a uranium 
        lease under this section to the claimant upon a demonstration 
        by the claimant, to the satisfaction of the Secretary, within 
        one year after the date of the application to the Secretary, 
        that the claim was, as of such date of enactment, supported by 
        the discovery of a valuable deposit of uranium on the claimed 
        land. The holder of a lease issued upon conversion from a 
        mining claim under this subsection shall be subject to all the 
        requirements of this section governing uranium leases, except 
        that the holder shall pay a royalty of 6.25 percent on the 
        value of the uranium produced under the lease, until beginning 
        ten years after the date the claim is converted to a lease.
          ``(2) Other claims extinguished.--All mining claims located 
        for uranium on Federal lands whose claimant does not apply to 
        the Secretary for conversion to a lease, or whose claimant 
        cannot make such a demonstration of discovery, shall become 
        null and void by operation of law three years after such date 
        of enactment.''.

           Subtitle C--Royalty Relief for American Consumers

SEC. 251. SHORT TITLE.

  This subtitle may be cited as the ``Royalty Relief for American 
Consumers Act of 2010''.

SEC. 252. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.

  (a) Issuance of New Leases.--
          (1) In general.--The Secretary shall not issue any new lease 
        that authorizes the production of oil or natural gas under the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) to a 
        person described in paragraph (2) unless the person has 
        renegotiated each covered lease with respect to which the 
        person is a lessee, to modify the payment responsibilities of 
        the person to require the payment of royalties if the price of 
        oil and natural gas is greater than or equal to the price 
        thresholds described in clauses (v) through (vii) of section 
        8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)).
          (2) Persons described.--A person referred to in paragraph (1) 
        is a person that--
                  (A) is a lessee that--
                          (i) holds a covered lease on the date on 
                        which the Secretary considers the issuance of 
                        the new lease; or
                          (ii) was issued a covered lease before the 
                        date of enactment of this Act, but transferred 
                        the covered lease to another person or entity 
                        (including a subsidiary or affiliate of the 
                        lessee) after the date of enactment of this 
                        Act; or
                  (B) any other person that has any direct or indirect 
                interest in, or that derives any benefit from, a 
                covered lease.
          (3) Multiple lessees.--
                  (A) In general.--For purposes of paragraph (1), if 
                there are multiple lessees that own a share of a 
                covered lease, the Secretary may implement separate 
                agreements with any lessee with a share of the covered 
                lease that modifies the payment responsibilities with 
                respect to the share of the lessee to include price 
                thresholds that are equal to or less than the price 
                thresholds described in clauses (v) through (vii) of 
                section 8(a)(3)(C) of the Outer Continental Shelf Lands 
                Act (43 U.S.C. 1337(a)(3)(C)).
                  (B) Treatment of share as covered lease.--Beginning 
                on the effective date of an agreement under 
                subparagraph (A), any share subject to the agreement 
                shall not constitute a covered lease with respect to 
                any lessees that entered into the agreement.
  (b) Transfers.--A lessee or any other person who has any direct or 
indirect interest in, or who derives a benefit from, a lease shall not 
be eligible to obtain by sale or other transfer (including through a 
swap, spinoff, servicing, or other agreement) any covered lease, the 
economic benefit of any covered lease, or any other lease for the 
production of oil or natural gas in the Gulf of Mexico under the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless the lessee 
or other person has--
          (1) renegotiated each covered lease with respect to which the 
        lessee or person is a lessee, to modify the payment 
        responsibilities of the lessee or person to include price 
        thresholds that are equal to or less than the price thresholds 
        described in clauses (v) through (vii) of section 8(a)(3)(C) of 
        the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)); or
          (2) entered into an agreement with the Secretary to modify 
        the terms of all covered leases of the lessee or other person 
        to include limitations on royalty relief based on market prices 
        that are equal to or less than the price thresholds described 
        in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
  (c) Use of Amounts for Deficit Reduction.--Notwithstanding any other 
provision of law, any amounts received by the United States as rentals 
or royalties under covered leases shall be deposited in the Treasury 
and used for Federal budget deficit reduction or, if there is no 
Federal budget deficit, for reducing the Federal debt in such manner as 
the Secretary of the Treasury considers appropriate.
  (d) Definitions.--In this section--
          (1) Covered lease.--The term ``covered lease'' means a lease 
        for oil or gas production in the Gulf of Mexico that is--
                  (A) in existence on the date of enactment of this 
                Act;
                  (B) issued by the Department of the Interior under 
                section 304 of the Outer Continental Shelf Deep Water 
                Royalty Relief Act (43 U.S.C. 1337 note; Public Law 
                104-58); and
                  (C) not subject to limitations on royalty relief 
                based on market price that are equal to or less than 
                the price thresholds described in clauses (v) through 
                (vii) of section 8(a)(3)(C) of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
          (2) Lessee.--The term ``lessee'' includes any person or other 
        entity that controls, is controlled by, or is in or under 
        common control with, a lessee.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior.

SEC. 253. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.

  The Secretary of the Interior shall agree to a request by any lessee 
to amend any lease issued for any Central and Western Gulf of Mexico 
tract in the period of January 1, 1996, through November 28, 2000, to 
incorporate price thresholds applicable to royalty suspension 
provisions, that are equal to or less than the price thresholds 
described in clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any 
amended lease shall impose the new or revised price thresholds 
effective October 1, 2010. Existing lease provisions shall prevail 
through September 30, 2010.

                 TITLE III--OIL AND GAS ROYALTY REFORM

SEC. 301. AMENDMENTS TO DEFINITIONS.

  Section 3 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1702) is amended--
          (1) in paragraph (8), by striking the semicolon and inserting 
        ``including but not limited to the Act of October 20, 1914 (38 
        Stat. 741); the Act of February 25, 1920 (41 Stat. 437); the 
        Act of April 17, 1926 (44 Stat. 301); the Act of February 7, 
        1927 (44 Stat. 1057); and all Acts heretofore or hereafter 
        enacted that are amendatory of or supplementary to any of the 
        foregoing Acts;'';
          (2) in paragraph (20)(A), by striking ``: Provided, That'' 
        and all that follows through ``subject of the judicial 
        proceeding'';
          (3) in paragraph (20)(B), by striking ``(with written notice 
        to the lessee who designated the designee)'';
          (4) in paragraph (23)(A), by striking ``(with written notice 
        to the lessee who designated the designee)'';
          (5) by striking paragraph (24) and inserting the following:
          ``(24) `designee' means a person who pays, offsets, or 
        credits monies, makes adjustments, requests and receives 
        refunds, or submits reports with respect to payments a lessee 
        must make pursuant to section 102(a);'';
          (6) in paragraph (25)(B)--
                  (A) by striking ``(subject to the provisions of 
                section 102(a) of this Act)''; and
                  (B) in clause (ii) by striking the matter after 
                subclause (IV) and inserting the following:
``that arises from or relates to any lease, easement, right-of-way, 
permit, or other agreement regardless of form administered by the 
Secretary for, or any mineral leasing law related to, the exploration, 
production, and development of oil and gas or other energy resource on 
Federal lands or the Outer Continental Shelf;''.
          (7) in paragraph (29), by inserting ``or permit'' after 
        ``lease''; and
          (8) by striking ``and'' after the semicolon at the end of 
        paragraph (32), by striking the period at the end of paragraph 
        (33) and inserting a semicolon, and by adding at the end the 
        following new paragraphs:
          ``(34) `compliance review' means a full-scope or a limited-
        scope examination of a lessee's lease accounts to compare one 
        or all elements of the royalty equation (volume, value, royalty 
        rate, and allowances) against anticipated elements of the 
        royalty equation to test for variances; and
          ``(35) `marketing affiliate' means an affiliate of a lessee 
        whose function is to acquire the lessee's production and to 
        market that production.''.

SEC. 302. COMPLIANCE REVIEWS.

  Section 101 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1711) is amended by adding at the end the following new 
subsection:
  ``(d) The Secretary may, as an adjunct to audits of accounts for 
leases, utilize compliance reviews of accounts. Such reviews shall not 
constitute nor substitute for audits of lease accounts. Any disparity 
uncovered in such a compliance review shall be immediately referred to 
a program auditor. The Secretary shall, before completion of a 
compliance review, provide notice of the review to designees whose 
obligations are the subject of the review.''.

SEC. 303. CLARIFICATION OF LIABILITY FOR ROYALTY PAYMENTS.

  Section 102(a) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1712(a)) is amended to read as follows:
  ``(a) In order to increase receipts and achieve effective collections 
of royalty and other payments, a lessee who is required to make any 
royalty or other payment under a lease, easement, right-of-way, permit, 
or other agreement, regardless of form, or under the mineral leasing 
laws, shall make such payment in the time and manner as may be 
specified by the Secretary or the applicable delegated State. Any 
person who pays, offsets, or credits monies, makes adjustments, 
requests and receives refunds, or submits reports with respect to 
payments the lessee must make is the lessee's designee under this Act. 
Notwithstanding any other provision of this Act to the contrary, a 
designee shall be liable for any payment obligation of any lessee on 
whose behalf the designee pays royalty under the lease. The person 
owning operating rights in a lease and a person owning legal record 
title in a lease shall be liable for that person's pro rata share of 
payment obligations under the lease.''.

SEC. 304. REQUIRED RECORDKEEPING.

  Section 103(b) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1712(a)) is amended by striking ``6'' and inserting 
``7''.

SEC. 305. FINES AND PENALTIES.

  Section 109 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1719) is amended--
          (1) in subsection (a) in the matter following paragraph (2), 
        by striking ``$500'' and inserting ``$1,000'';
          (2) in subsection (a)(2)(B), by inserting ``(i)'' after 
        ``such person'', and by striking the period at the end and 
        inserting ``; and (ii) has not received notice, pursuant to 
        paragraph (1), of more than two prior violations in the current 
        calendar year.'';
          (3) in subsection (b), by striking ``$5,000'' and inserting 
        ``$10,000'';
          (4) in subsection (c)--
                  (A) in paragraph (2), by striking ``; or'' and 
                inserting ``, including any failure or refusal to 
                promptly tender requested documents;'';
                  (B) in the text following paragraph (3)--
                          (i) by striking ``$10,000'' and inserting 
                        ``$20,000''; and
                          (ii) by striking the period at the end and 
                        inserting a semicolon; and
                  (C) by adding at the end the following new 
                paragraphs:
          ``(4) knowingly or willfully fails to make any royalty 
        payment in the amount or value as specified by statute, 
        regulation, order, or terms of the lease; or
          ``(5) fails to correctly report and timely provide operations 
        or financial records necessary for the Secretary or any 
        authorized designee of the Secretary to accomplish lease 
        management responsibilities,'';
          (5) in subsection (d), by striking ``$25,000'' and inserting 
        ``$50,000'';
          (6) in subsection (h), by striking ``by registered mail'' and 
        inserting ``a common carrier that provides proof of delivery''; 
        and
          (7) by adding at the end the following subsection:
  ``(m)(1) Any determination by the Secretary or a designee of the 
Secretary that a person has committed a violation under subsection (a), 
(c), or (d)(1) shall toll any applicable statute of limitations for all 
oil and gas leases held or operated by such person, until the later 
of--
          ``(A) the date on which the person corrects the violation and 
        certifies that all violations of a like nature have been 
        corrected for all of the oil and gas leases held or operated by 
        such person; or
          ``(B) the date a final, nonappealable order has been issued 
        by the Secretary or a court of competent jurisdiction.
  ``(2) A person determined by the Secretary or a designee of the 
Secretary to have violated subsection (a), (c), or (d)(1) shall 
maintain all records with respect to the person's oil and gas leases 
until the later of--
          ``(A) the date the Secretary releases the person from the 
        obligation to maintain such records; and
          ``(B) the expiration of the period during which the records 
        must be maintained under section 103(b).''.

SEC. 306. INTEREST ON OVERPAYMENTS.

  Section 111 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1721) is amended--
          (1) by amending subsections (h) and (i) to read as follows:
  ``(h) Interest shall not be allowed nor paid nor credited on any 
overpayment, and no interest shall accrue from the date such 
overpayment was made.
  ``(i) A lessee or its designee may make a payment for the approximate 
amount of royalties (hereinafter in this subsection referred to as the 
`estimated payment') that would otherwise be due for such lease by the 
date royalties are due for that lease. When an estimated payment is 
made, actual royalties are payable at the end of the month following 
the month in which the estimated payment is made. If the estimated 
payment was less than the amount of actual royalties due, interest is 
owed on the underpaid amount. If the lessee or its designee makes a 
payment for such actual royalties, the lessee or its designee may apply 
the estimated payment to future royalties. Any estimated payment may be 
adjusted, recouped, or reinstated by the lessee or its designee 
provided such adjustment, recoupment, or reinstatement is made within 
the limitation period for which the date royalties were due for that 
lease.'';
          (2) by striking subsection (j); and
          (3) in subsection (k)(4)--
                  (A) by striking ``or overpaid royalties and 
                associated interest''; and
                  (B) by striking ``, refunded, or credited''.

SEC. 307. ADJUSTMENTS AND REFUNDS.

  Section 111A of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721a) is amended--
          (1) in subsection (a)(3), by inserting ``(A)'' after ``(3)'', 
        and by striking the last sentence and inserting the following:
                  ``(B) Except as provided in subparagraph (C), no 
                adjustment may be made with respect to an obligation 
                that is the subject of an audit or compliance review 
                after completion of the audit or compliance review, 
                respectively, unless such adjustment is approved by the 
                Secretary or the applicable delegated State, as 
                appropriate.
                  ``(C) If an overpayment is identified during an 
                audit, the Secretary shall allow a credit in the amount 
                of the overpayment.'';
          (2) in subsection (a)(4)--
                  (A) by striking ``six'' and inserting ``four''; and
                  (B) by striking ``shall'' the first time such term 
                appears and inserting ``may''; and
          (3) in subsection (b)(1) by striking ``and'' after the 
        semicolon at the end of subparagraph (C), by striking the 
        period at the end of subparagraph (D) and inserting ``; and'', 
        and by adding at the end the following:
                  ``(E) is made within the adjustment period for that 
                obligation.''.

SEC. 308. CONFORMING AMENDMENT.

  Section 114 of the Federal Oil and Gas Royalty Management Act of 1982 
is repealed.

SEC. 309. OBLIGATION PERIOD.

  Section 115(c) of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1724(c)) is amended by adding at the end the following 
new paragraph:
          ``(3) Adjustments.--In the case of an adjustment under 
        section 111A(a) in which a recoupment by the lessee results in 
        an underpayment of an obligation, for purposes of this Act the 
        obligation becomes due on the date the lessee or its designee 
        makes the adjustment.''.

SEC. 310. NOTICE REGARDING TOLLING AGREEMENTS AND SUBPOENAS.

  (a) Tolling Agreements.--Section 115(d)(1) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(1)) is amended by 
striking ``(with notice to the lessee who designated the designee)''.
  (b) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is amended by 
striking ``(with notice to the lessee who designated the designee, 
which notice shall not constitute a subpoena to the lessee)''.

SEC. 311. APPEALS AND FINAL AGENCY ACTION.

  Paragraphs (1) and (2) of section 115(h) the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1724(h)) are amended by 
striking ``33'' each place it appears and inserting ``48''.

SEC. 312. ASSESSMENTS.

  Section 116 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1724) is repealed.

SEC. 313. COLLECTION AND PRODUCTION ACCOUNTABILITY.

  (a) Pilot Project.--Within two years after the date of enactment of 
this Act, the Secretary shall complete a pilot project with willing 
operators of oil and gas leases on the Outer Continental Shelf that 
assesses the costs and benefits of automatic transmission of oil and 
gas volume and quality data produced under Federal leases on the Outer 
Continental Shelf in order to improve the production verification 
systems used to ensure accurate royalty collection and audit.
  (b) Report.--The Secretary shall submit to Congress a report on 
findings and recommendations of the pilot project within 3 years after 
the date of enactment of this Act.

SEC. 314. NATURAL GAS REPORTING.

  The Secretary shall, within 180 days after the date of enactment of 
this Act, implement the steps necessary to ensure accurate 
determination and reporting of BTU values of natural gas from all 
Federal oil and gas leases to ensure accurate royalty payments to the 
United States. Such steps shall include, but not be limited to--
          (1) establishment of consistent guidelines for onshore and 
        offshore BTU information from gas producers;
          (2) development of a procedure to determine the potential BTU 
        variability of produced natural gas on a by-reservoir or by-
        lease basis;
          (3) development of a procedure to adjust BTU frequency 
        requirements for sampling and reporting on a case-by-case 
        basis;
          (4) systematic and regular verification of BTU information; 
        and
          (5) revision of the ``MMS-2014'' reporting form to record, in 
        addition to other information already required, the natural gas 
        BTU values that form the basis for the required royalty 
        payments.

SEC. 315. PENALTY FOR LATE OR INCORRECT REPORTING OF DATA.

  (a) In General.--The Secretary shall issue regulations by not later 
than 1 year after the date of enactment of this Act that establish a 
civil penalty for late or incorrect reporting of data under the Federal 
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.).
  (b) Amount.--The amount of the civil penalty shall be--
          (1) an amount (subject to paragraph (2)) that the Secretary 
        determines is sufficient to ensure filing of data in accordance 
        with that Act; and
          (2) not less than $10 for each failure to file correct data 
        in accordance with that Act.
  (c) Content of Regulations.--Except as provided in subsection (b), 
the regulations issued under this section shall be substantially 
similar to part 216.40 of title 30, Code of Federal Regulations, as 
most recently in effect before the date of enactment of this Act.

SEC. 316. REQUIRED RECORDKEEPING.

  Within 1 year after the date of enactment of this Act, the Secretary 
shall publish final regulations concerning required recordkeeping of 
natural gas measurement data as set forth in part 250.1203 of title 30, 
Code of Federal Regulations (as in effect on the date of enactment of 
this Act), to include operators and other persons involved in the 
transporting, purchasing, or selling of gas under the requirements of 
that rule, under the authority provided in section 103 of the Federal 
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1713).

SEC. 317. SHARED CIVIL PENALTIES.

  Section 206 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1736) is amended by striking ``Such amount shall be deducted 
from any compensation due such State or Indian Tribe under section 202 
or section 205 or such State under section 205.''.

SEC. 318. APPLICABILITY TO OTHER MINERALS.

  Section 304 of the Federal Oil and Gas Royalty Management Act of 1982 
(30 U.S.C. 1753) is amended by adding at the end the following new 
subsection:
  ``(e) Applicability to Other Minerals.--
          ``(1) Notwithstanding any other provision of law, sections 
        107, 109, and 110 of this Act and the regulations duly 
        promulgated with respect thereto shall apply to any lease 
        authorizing the development of coal or any other solid mineral 
        on any Federal lands or Indian lands, to the same extent as if 
        such lease were an oil and gas lease, on the same terms and 
        conditions as those authorized for oil and gas leases.
          ``(2) Notwithstanding any other provision of law, sections 
        107, 109, and 110 of this Act and the regulations duly 
        promulgated with respect thereto shall apply with respect to 
        any lease, easement, right-of-way, or other agreement, 
        regardless of form (including any royalty, rent, or other 
        payment due thereunder)--
                  ``(A) under section 8(k) or 8(p) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1337(k) and 
                1337(p)); or
                  ``(B) under the Geothermal Steam Act (30 U.S.C. 1001 
                et seq.), to the same extent as if such lease, 
                easement, right-of-way, or other agreement were an oil 
                and gas lease on the same terms and conditions as those 
                authorized for oil and gas leases.
          ``(3) For the purposes of this subsection, the term `solid 
        mineral' means any mineral other than oil, gas, and geo-
        pressured-geothermal resources, that is authorized by an Act of 
        Congress to be produced from public lands (as that term is 
        defined in section 103 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1702)).''.

SEC. 319. ENTITLEMENTS.

  Not later than 180 days after the date of enactment of this Act, the 
Secretary shall publish final regulations prescribing when a Federal 
lessee or designee must report and pay royalties on the volume of oil 
and gas it takes under either a Federal or Indian lease or on the 
volume to which it is entitled to based upon its ownership interest in 
the Federal or Indian lease. The Secretary shall give consideration to 
requiring 100 percent entitlement reporting and paying based upon the 
lease ownership.

TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION AND HISTORIC 
                           PRESERVATION FUNDS

              Subtitle A--Land and Water Conservation Fund

SEC. 401. AMENDMENTS TO THE LAND AND WATER CONSERVATION FUND ACT OF 
                    1965.

  Except as otherwise expressly provided, whenever in this subtitle an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).

SEC. 402. EXTENSION OF THE LAND AND WATER CONSERVATION FUND.

  Section 2 (16 U.S.C. 460l-5) is amended by striking ``September 30, 
2015'' both places it appears and inserting ``September 30, 2040''.

SEC. 403. PERMANENT FUNDING.

  (a) In General.--The text of section 3 (16 U.S.C. 460l-6) is amended 
to read as follows: ``Of the moneys covered into the fund, $900,000,000 
shall be available each fiscal year for expenditure for the purposes of 
this Act without further appropriation. Moneys made available for 
obligation or expenditure from the fund or from the special account 
established under section 4(i)(1) may be obligated or expended only as 
provided in this Act.''.
  (b) Conforming Amendment.--Section 2(c)(2) (16 U.S.C. 460l-5(c)(2)) 
is amended by striking ``: Provided'' and all that follows through the 
end of the sentence and inserting a period.

            Subtitle B--National Historic Preservation Fund

SEC. 411. PERMANENT FUNDING.

  The text of section 108 of the National Historic Preservation Act (16 
U.S.C. 470h) is amended to read as follows: ``To carry out the 
provisions of this Act, there is hereby established the Historic 
Preservation Fund (hereinafter referred to as the `fund') in the 
Treasury of the United States. There shall be covered into the fund 
$150,000,000 for fiscal years 1982 through 2040 from revenues due and 
payable to the United States under the Outer Continental Shelf Lands 
Act (67 Stat. 462, 469), as amended (43 U.S.C. 1338) and/or under the 
Act of June 4, 1920 (41 Stat. 813), as amended (30 U.S.C. 191), 
notwithstanding any provision of law that such proceeds shall be 
credited to miscellaneous receipts of the Treasury. Such moneys shall 
be used only to carry out the purposes of this Act and shall be 
available for expenditure without further appropriation.''.

                TITLE V--ALTERNATIVE ENERGY DEVELOPMENT

SEC. 501. COMMERCIAL WIND AND SOLAR LEASING PROGRAM.

  (a) In General.--Pursuant to the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1701 et seq.) and the National Forest Management 
Act of 1976 (16 U.S.C. 1600 et seq.), the Secretary, acting through the 
Director of the Bureau of Energy and Resource Management, may issue 
leases, on a competitive basis, for commercial electricity generation 
from solar or wind resources on Federal lands under the administrative 
jurisdiction of the Bureau of Land Management or of the Forest Service, 
except that the Secretary may not issue any such lease on National 
Forest System lands over the objection of the Secretary of Agriculture.
  (b) Final Regulations.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of the Interior shall publish 
final regulations establishing a commercial wind and solar leasing 
program under subsection (a).
  (c) Commencement of Commercial Leasing for Solar and Wind Energy on 
Public Lands.--Not later than 90 days after completion of regulations 
required under subsection (b), or as soon as practicable thereafter, 
and following consultation with affected governors and other 
stakeholders, the Secretary may conduct lease sales under the 
regulations under this title.
  (d) Easements, Special-use Permits, and Rights-of-way.--Upon 
completion of regulations required under subsection (b), easements, 
special-use permits, and rights-of-way shall not be available for 
commercial wind and solar projects on Federal lands under the 
administrative jurisdiction of the Bureau of Land Management or Forest 
Service, except for the placement and operation of testing or data 
collection devices or facilities that will not result in the commercial 
sale of electric power.
  (e) Noncompetitive Leasing.--
          (1) In general.--The Secretary may issue leases under this 
        section on a noncompetitive basis if--
                  (A) the lease is for resource data collection or 
                equipment testing;
                  (B) the lease will not result in the commercial sale 
                of electric power;
                  (C) the lease has a term of not more than 5 years; 
                and
                  (D) the Secretary, after public notice of a proposed 
                lease, determines that there is no competitive 
                interest.
          (2) Preference.--In any competitive lease sale for lands 
        subject to a lease awarded under this subsection, the Secretary 
        may give a preference to the holder of the lease under this 
        subsection.
  (f) Transition to Commercial Leasing.--The Secretary of the Interior, 
for lands under the jurisdiction of the Bureau of Land Management, and 
the Secretary of Agriculture, for lands under the jurisdiction of the 
Forest Service, may issue an easement, special-use permit, or right-of-
way for a commercial wind or solar project for which--
          (1) an application for a solar or wind right-of-way permit, 
        or for a permit for a meteorological tower or to construct a 
        wind farm, was submitted before July 1, 2010; or
          (2) a meteorological testing tower or other data collection 
        device has been installed under an approved easement, special-
        use permit, or right-of-way before the date of enactment of 
        this Act.
  (g) Diligent Development Requirements.--The Secretary shall, by 
regulation, designate work requirements and milestones to ensure that 
diligent development is carried out under each lease issued under this 
title, and that such leases are not obtained for speculative purposes.
  (h) Criteria for Bidders.--Before issuing leases under this title, 
the Secretary shall establish criteria for bidders for such leases, 
including for proof of financial ability to achieve project commitments 
and completion, and for a demonstrated understanding of the technology 
to be deployed under a lease.

SEC. 502. LAND MANAGEMENT.

  The Secretary, in consultation with the Director of the Bureau of 
Land Management and the Chief of the Forest Service, shall issue 
regulations that--
          (1) establish the duration of leases under this title, which 
        shall be not less than 30 years;
          (2) require the holder of a lease granted under this title 
        to--
                  (A) furnish a surety bond or other form of security, 
                as prescribed by the Director of the Bureau of Energy 
                and Resource Management, to assure the completion of--
                          (i) interim and final reclamation and the 
                        restoration of the area that is subject to the 
                        lease to the condition in which the area 
                        existed before the granting of the lease; or
                          (ii) mitigation activities, including 
                        compensatory mitigation, if restoration to such 
                        condition is impractical; and
                  (B) comply with such other requirements as the 
                Director of the Bureau of Energy and Resource 
                Management and affected Federal land manager consider 
                necessary to protect the interests of the public and 
                the United States; and
          (3) establish best management practices and require renewable 
        energy operators to comply with those practices to ensure the 
        sound, efficient, and environmentally responsible development 
        of wind and solar resources on Federal lands in a manner that 
        shall avoid, minimize, and mitigate actual and anticipated 
        impacts to habitat and ecosystem function resulting from such 
        development and to areas proposed for wilderness or other 
        protection.

SEC. 503. REVENUES.

  (a) Establishment of Payment Requirements.--The Secretary shall 
establish royalties, fees, rentals, bonus bids, or other payments for 
leases issued under this title, that shall--
          (1) encourage development of solar and wind energy on public 
        lands;
          (2) ensure a fair return to the United States; and
          (3) be commensurate with similar payments for the development 
        of solar and wind energy on State and private lands.
  (b) Deposit.--All revenues for payments established under this 
section shall be deposited in the general fund of the Treasury.
  (c) Promote Development of Previously Impacted Lands.--To promote the 
priority development of renewable energy resources on lands that have 
already been adversely impacted by significant prior use, the Secretary 
may waive the rental payment until generation commences under a lease 
under section 501 of such land determined by the Secretary in 
consultation with the Secretaries of Agriculture and Energy, and the 
Administrator of the Environmental Protection Agency.

SEC. 504. RECORDKEEPING AND REPORTING REQUIREMENTS.

  (a) In General.--A lessee, permit holder, operator, or other person 
directly involved in developing, producing, processing, transporting, 
purchasing, or selling renewable energy under this title, through the 
point of royalty computation, shall establish and maintain any records, 
make any reports, and provide any information that the Secretary may 
reasonably require for the purposes of implementing this section or 
determining compliance with rules or orders under this section. Such 
records shall include, but not be limited to, periodic reports, 
records, documents, and other data. Such reports may include, but not 
be limited to, pertinent technical and financial data relating to the 
resources being developed under the lease. Upon the request of any 
officer or employee duly designated by the Secretary conducting an 
audit or investigation pursuant to this section, the appropriate 
records, reports, or information that may be required by this section 
shall be made available for inspection and duplication by such officer 
or employee. Failure by a claim holder, operator, or other person 
referred to in the first sentence to cooperate with such an audit, 
provide data required by the Secretary, or grant access to information 
may, at the discretion of the Secretary, result in involuntary 
forfeiture of the lease or permit.
  (b) Maintenance.--Records required by the Secretary under this 
section shall be maintained for 7 years after release of financial 
assurance unless the Secretary notifies the operator that the Secretary 
has initiated an audit or investigation involving such records and that 
such records must be maintained for a longer period. In any case when 
an audit or investigation is underway, records shall be maintained 
until the Secretary releases the operator of the obligation to maintain 
such records.

SEC. 505. AUDITS.

  The Secretary may conduct such audits of all lessees and permit 
holders, operators, transporters, purchasers, processors, or other 
persons directly or indirectly involved in the production or sales of 
renewable energy resources covered by this Act, as the Secretary deems 
necessary for the purposes of ensuring compliance with the requirements 
of this title. For purposes of performing such audits, the Secretary 
shall, at reasonable times and upon request, have access to, and may 
copy, all books, papers and other documents that relate to compliance 
with any provision of this section by any person.

SEC. 506. TRADE SECRETS.

  Trade secrets, proprietary information, and other confidential 
information protected from disclosure under section 552 of title 5, 
United States Code (popularly known as the Freedom of Information Act), 
shall be made available by the Secretary to other Federal agencies as 
necessary to assure compliance with this Act and other Federal laws.

SEC. 507. INTEREST AND SUBSTANTIAL UNDERREPORTING ASSESSMENTS.

  (a) Interest.--In the case of renewable energy resources leases or 
permits under which royalty payments are not received by the Secretary 
on the date that such payments are due, the Secretary shall charge 
interest on such under payments at the same interest rate as the rate 
applicable under section 6621(a)(2) of the Internal Revenue Code of 
1986. In the case of an underpayment, interest shall be computed and 
charged only on the amount of the deficiency and not on the total 
amount.
  (b) Penalty.--If there is any underreporting of royalty owed on 
production from a lease or permit for any production month by any 
person liable for royalty payments under this title, the Secretary 
shall assess a penalty of not greater than 25 percent of the amount of 
that underreporting.
  (c) Underreporting Defined.--For the purposes of this section, the 
term ``underreporting'' means the difference between the royalty on the 
value of the production that should have been reported and the royalty 
on the value of the production that was reported, if the value that 
should have been reported is greater than the value that was reported.
  (d) Waiver or Reduction.--
          (1) In general.--The Secretary may waive or reduce the 
        assessment provided in subsection (b) if the person liable for 
        royalty payments under this section corrects the underreporting 
        before the date such person receives notice from the Secretary 
        that an underreporting may have occurred, or before 90 days 
        after the date of the enactment of this section, whichever is 
        later.
          (2) Required waiver.--The Secretary shall waive any portion 
        of an assessment under subsection (b) attributable to that 
        portion of the underreporting for which the person responsible 
        for paying the royalty demonstrates that--
                  (A) such person had written authorization from the 
                Secretary to report royalty on the value of the 
                production on basis on which it was reported;
                  (B) such person had substantial authority for 
                reporting royalty on the value of the production on the 
                basis on which it was reported;
                  (C) such person previously had notified the 
                Secretary, in such manner as the Secretary may by rule 
                prescribe, of relevant reasons or facts affecting the 
                royalty treatment of specific production that led to 
                the underreporting; or
                  (D) such person meets any other exception that the 
                Secretary may, by rule, establish.
  (e) Expanded Royalty Obligations.--Each person liable for royalty 
payments under this section shall be jointly and severally liable for 
royalty on renewable energy resources produced under a lease issued 
under this Act when such loss or waste is due to negligence on the part 
of any person or due to the failure to comply with any rule, 
regulation, or order issued under this section.
  (f) Failure to Comply With Royalty Requirements.--Any person who 
fails to comply with the requirements of this section or any regulation 
or order issued to implement this section shall be liable for a civil 
penalty under section 109 of the Federal Oil and Gas Royalty Management 
Act of 1982 (30 U.S.C. 1719) to the same extent as if the failure to 
comply occurred under that Act.
  (g) Deposit of Penalties.--All penalties collected under this 
subsection shall be deposited in the general fund of the Treasury.

SEC. 508. INDIAN SAVINGS PROVISION.

  Nothing in this title shall abridge, diminish, or alter any right or 
interest of any affected Indian tribe. Nothing in this title shall 
authorize any Federal agency or official to abridge, diminish, or alter 
any right or interest of any affected Indian tribe.

SEC. 509. TRANSMISSION SAVINGS PROVISION.

   Nothing in this title shall affect the authority of a Federal agency 
to issue right-of-way grants for electric transmission facilities.

                  TITLE VI--COORDINATION AND PLANNING

SEC. 601. REGIONAL COORDINATION.

  (a) In General.--The purpose of this title is to promote--
          (1) better coordination, communication, and collaboration 
        between Federal agencies with authorities for ocean, coastal, 
        and Great Lakes management; and
          (2) coordinated and collaborative regional planning efforts 
        using the best available science, and to ensure the protection 
        and maintenance of marine ecosystem health, in decisions 
        affecting the sustainable development and use of Federal 
        renewable and nonrenewable resources on, in, or above the ocean 
        (including the Outer Continental Shelf) and the Great Lakes for 
        the long-term economic and environmental benefit of the United 
        States.
  (b) Objectives of Regional Efforts.--Such regional efforts shall 
achieve the following objectives:
          (1) Greater systematic communication and coordination among 
        Federal, coastal State, and affected tribal governments 
        concerned with the conservation of and the sustainable 
        development and use of Federal renewable and nonrenewable 
        resources of the oceans, coasts, and Great Lakes.
          (2) To the maximum extent feasible, greater reliance on a 
        multiobjective, science- and ecosystem-based, spatially 
        explicit management approach that integrates regional economic, 
        ecological, affected tribal, and social objectives into ocean, 
        coastal, and Great Lakes management decisions.
          (3) Identification and prioritization of shared State and 
        Federal ocean, coastal, and Great Lakes management issues.
          (4) Identification of data and information needed by the 
        Regional Coordination Councils established under section 602.
  (c) Regions.--There are hereby designated the following Coordination 
Regions:
          (1) Pacific region.--The Pacific Coordination Region, which 
        shall consist of the coastal waters and Exclusive Economic Zone 
        adjacent to the States of Washington, Oregon, and California.
          (2) Gulf of mexico region.--The Gulf of Mexico Coordination 
        Region, which shall consist of the coastal waters and Exclusive 
        Economic Zone adjacent to the States of Texas, Louisiana, 
        Mississippi, and Alabama, and the west coast of Florida.
          (3) North atlantic region.--The North Atlantic Coordination 
        Region, which shall consist of the coastal waters and Exclusive 
        Economic Zone adjacent to the States of Maine, New Hampshire, 
        Massachusetts, Rhode Island, and Connecticut
          (4) Mid atlantic region.--The Mid Atlantic Coordination 
        Region, which shall consist of the coastal waters and Exclusive 
        Economic Zone adjacent to the States of New York, New Jersey, 
        Pennsylvania, Delaware, Maryland, and Virginia.
          (5) South atlantic region.--The South Atlantic Coordination 
        Region, which shall consist of the coastal waters and Exclusive 
        Economic Zone adjacent to the States of North Carolina, South 
        Carolina, Georgia, the east coast of Florida, and the Straits 
        of Florida Planning Area.
          (6) Alaska region.--The Alaska Coordination Region, which 
        shall consist of the coastal waters and Exclusive Economic Zone 
        adjacent to the State of Alaska.
          (7) Pacific islands region.--The Pacific Islands Coordination 
        Region, which shall consist of the coastal waters and Exclusive 
        Economic Zone adjacent to the State of Hawaii, the Commonwealth 
        of the Northern Mariana Islands, American Samoa, and Guam.
          (8) Caribbean region.--The Caribbean Coordination Region, 
        which shall consist of the coastal waters and Exclusive 
        Economic Zone adjacent to Puerto Rico and the United States 
        Virgin Islands.
          (9) Great lakes region.--The Great Lakes Coordination Region, 
        which shall consist of waters of the Great Lakes in the States 
        of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, 
        Pennsylvania, and Wisconsin.

SEC. 602. REGIONAL COORDINATION COUNCILS.

  (a) In General.--Within 180 days after the date of enactment of this 
Act, the Chairman of the Council on Environmental Quality, in 
consultation with the affected coastal States and affected Indian 
tribes, shall establish or designate a Regional Coordination Council 
for each of the Coordination Regions designated by section 601(c).
  (b) Membership.--
          (1) Federal representatives.--Within 90 days after the date 
        of enactment of this Act, the Chairman of the Council on 
        Environmental Quality shall publish the titles of the officials 
        of each Federal agency and department that shall participate in 
        each Council. The Councils shall include representatives of 
        each Federal agency and department that has authorities related 
        to the development of ocean, coastal, or Great Lakes policies 
        or engages in planning, management, or scientific activities 
        that significantly affect or inform the use of ocean, coastal, 
        or Great Lakes resources. The Chairman of the Council on 
        Environmental Quality shall determine which Federal agency 
        representative shall serve as the chairperson of each Council.
          (2) Coastal state representatives.--
                  (A) Notice of intent to participate.--The Governor of 
                each coastal State within each Coordination Region 
                designated by section 601(c) shall within 3 months 
                after the date of enactment of this Act, inform the 
                Chairman of the Council on Environmental Quality 
                whether or not the State intends to participate in the 
                Regional Coordination Council for the Region.
                  (B) Appointment of responsible state official.--If a 
                coastal State intends to participate in such Council, 
                the Governor of the coastal State shall appoint an 
                officer or employee of the coastal State agency with 
                primary responsibility for overseeing ocean and coastal 
                policy or resource management to that Council.
          (3) Regional fishery management council representation.--The 
        Chairman of each Regional Fishery Management Council with 
        jurisdiction in the Coordination Region of a Regional 
        Coordination Council and the executive director of the 
        interstate marine fisheries commission with jurisdiction in the 
        Coordination Region of a Regional Coordination Council shall 
        each serve as a member of the Council.
          (4) Regional ocean partnership representation.--A 
        representative of any Regional Ocean Partnership that has been 
        established for any part of the Coordination Region of a 
        Regional Coordination Council may appoint a representative to 
        serve on the Council in addition to any Federal or State 
        appointments.
          (5) Tribal representation.--An appropriate tribal official 
        selected by affected Indian tribes situated in the affected 
        Coordination Region may elect to appoint a representative of 
        such tribes collectively to serve as a member of the Regional 
        Coordination Council for that Region.
          (6) Local representation.--The Chairman of the Council on 
        Environmental Quality shall, in consultation with the Governors 
        of the coastal States within each Coordination Region, identify 
        and appoint representatives of county and local governments, as 
        appropriate, to serve as members of the Regional Coordination 
        Council for that Region.
  (c) Advisory Committee.--Each Regional Coordination Council shall 
establish an advisory committee made up of a balanced representation 
from the energy, shipping, and transportation, marine tourism, and 
recreation industries, from marine environmental nongovernmental 
organizations, and from scientific and educational authorities with 
expertise in the conservation and management of ocean, coastal, and 
Great Lakes resources to advise the Council during the development of 
Regional Assessments and Regional Strategic Plans and in its other 
activities.
  (d) Coordination With Existing Programs.--Each Regional Coordination 
Council shall build upon and complement current State, multistate, and 
regional capacity and governance and institutional mechanisms to manage 
and protect ocean waters, coastal waters, and ocean resources.

SEC. 603. REGIONAL STRATEGIC PLANS.

  (a) Initial Regional Assessment.--
          (1) In general.--Each Regional Coordination Council, shall, 
        within one year after the date of enactment of this Act, 
        prepare an initial assessment of its Coordination Region that 
        shall identify deficiencies in data and information necessary 
        to informed decisionmaking. Each initial assessment shall to 
        the extent feasible--
                  (A) identify the Coordination Region's renewable and 
                non renewable resources, including current and 
                potential energy resources;
                  (B) identify and include a spatially and temporally 
                explicit inventory of existing and potential uses of 
                the Coordination Region, including fishing and fish 
                habitat, tourism, recreation, and energy development;
                  (C) document the health and relative environmental 
                sensitivity of the marine ecosystem within the 
                Coordination Region, including a comprehensive survey 
                and status assessment of species, habitats, and 
                indicators of ecosystem health;
                  (D) identify marine habitat types and important 
                ecological areas within the Coordination Region;
                  (E) assess the Coordination Region's marine economy 
                and cultural attributes and include regionally-specific 
                ecological and socio-economic baseline data;
                  (F) identify and prioritize additional scientific and 
                economic data necessary to inform the development of 
                Strategic Plans; and
                  (G) include other information to improve decision 
                making as determined by the Regional Coordination 
                Council.
          (2) Data.--Each initial assessment shall--
                  (A) use the best available data;
                  (B) collect and provide data in a spatially explicit 
                manner wherever practicable and provide such data to 
                the interagency comprehensive digital mapping 
                initiative as described in section 2 of Public Law 109-
                58 (42 U.S.C. 15801); and
                  (C) make publicly available any such data that is not 
                classified information.
          (3) Public participation.--Each Regional Coordination Council 
        shall provide adequate opportunity for review and input by 
        stakeholders and the general public during the preparation of 
        the initial assessment and any revised assessments.
  (b) Regional Strategic Plans.--
          (1) Requirement.--Each Regional Coordination Council shall, 
        within 3 years after the completion of the initial regional 
        assessment, prepare and submit to the Chairman of the Council 
        on Environmental Quality a multiobjective, science- and 
        ecosystem-based, spatially explicit, integrated Strategic Plan 
        in accordance with this subsection for the Council's 
        Coordination Region.
          (2) Management objective.--The management objective of the 
        Strategic Plans under this subsection shall be to foster 
        comprehensive, integrated, and sustainable development and use 
        of ocean, coastal, and Great Lakes resources, while protecting 
        marine ecosystem health and sustaining the long-term economic 
        and ecosystem values of the oceans.
          (3) Contents.--Each Strategic Plan prepared by a Regional 
        Coordination Council shall--
                  (A) be based on the initial regional assessment and 
                updates for the Coordination Region under subsections 
                (a) and (c), respectively;
                  (B) foster the sustainable and integrated development 
                and use of ocean, coastal, and Great Lakes resources in 
                a manner that protects the health of marine ecosystems;
                  (C) identify areas with potential for siting and 
                developing renewable and nonrenewable energy resources 
                in the Coordination Region covered by the Strategic 
                Plan;
                  (D) identify other current and potential uses of the 
                ocean and coastal resources in the Coordination Region;
                  (E) identify and recommend long-term monitoring needs 
                for ecosystem health and socioeconomic variables within 
                the Coordination Region covered by the Strategic Plan;
                  (F) identify existing State and Federal regulating 
                authorities within the Coordination Region covered by 
                the Strategic Plan;
                  (G) identify best available technologies to minimize 
                adverse environmental impacts and use conflicts in the 
                development of ocean and coastal resources in the 
                Coordination Region;
                  (H) identify additional research, information, and 
                data needed to carry out the Strategic Plan;
                  (I) identify performance measures and benchmarks for 
                purposes of fulfilling the responsibilities under this 
                section to be used to evaluate the Strategic Plan's 
                effectiveness;
                  (J) define responsibilities and include an analysis 
                of the gaps in authority, coordination, and resources, 
                including funding, that must be filled in order to 
                fully achieve those performance measures and 
                benchmarks; and
                  (K) include such other information at the Chairman of 
                the Council on Environmental Quality determines is 
                appropriate.
          (4) Public participation.--Each Regional Coordination Council 
        shall provide adequate opportunities for review and input by 
        stakeholders and the general public during the development of 
        the Strategic Plan and any Strategic Plan revisions.
  (c) Updated Regional Assessments.--Each Regional Coordination Council 
shall update the initial regional assessment prepared under subsection 
(a) in coordination with each Strategic Plan revision under subsection 
(e), to provide more detailed information regarding the required 
elements of the assessment and to include any relevant new information 
that has become available in the interim.
  (d) Review and Approval.--
          (1) Commencement of review.--Within 10 days after receipt of 
        a Strategic Plan under this section, or any revision to such a 
        Strategic Plan, from a Regional Coordination Council, the 
        Chairman of the Council of Environmental Quality shall commence 
        a review of the Strategic Plan or the revised Strategic Plan, 
        respectively.
          (2) Public notice and comment.--Immediately after receipt of 
        such a Strategic Plan or revision, the Chairman of the Council 
        of Environmental Quality shall publish the Strategic Plan or 
        revision in the Federal Register and provide an opportunity for 
        the submission of public comment for a 90-day period beginning 
        on the date of such publication.
          (3) Requirements for approval.--Before approving a Strategic 
        Plan, or any revision to a Strategic Plan, the Chairman of the 
        Council on Environmental Quality must find that the Strategic 
        Plan or revision--
                  (A) is consistent with the Outer Continental Shelf 
                Lands Act;
                  (B) complies with subsection (b); and
                  (C) complies with the purposes of this title as 
                identified in section 601(a) and the objectives 
                identified in section 601(b).
          (4) Deadline for completion.--Within 180 days after the 
        receipt of a Strategic Plan, or a revision to a Strategic Plan, 
        the Chairman of the Council of Environmental Quality shall 
        approve or disapprove the Strategic Plan or revision. If the 
        Chairman disapproves the Strategic Plan or revision, the 
        Chairman shall transmit to the Regional Coordination Council 
        that submitted the Strategic Plan or revision, an 
        identification of the deficiencies and recommendations to 
        improve it. The Council shall submit a revised Strategic Plan 
        or revision to such plan with 180 days after receiving the 
        recommendations from the Chairman.
  (e) Plan Revision.--Each Strategic Plan shall be reviewed and revised 
by the relevant Regional Coordination Council at least once every 5 
years. Such review and revision shall be based on the most recently 
updated regional assessment. Any proposed revisions to the Strategic 
Plan shall be submitted to the Chairman of the Council on Environmental 
Quality for review and approval pursuant to this section.

SEC. 604. REGULATIONS.

  The Chairman of the Council on Environmental Quality may issue such 
regulations as the Chairman considers necessary to ensure proper 
administration of this title.

SEC. 605. OCEAN RESOURCES CONSERVATION AND ASSISTANCE FUND.

  (a) Establishment.--
          (1) In general.--There is established in the Treasury of the 
        United States a separate account to be known as the Ocean 
        Resources Conservation and Assistance Fund.
          (2) Credits.--The ORCA Fund shall be credited with amounts as 
        specified in section 9 of the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1338), as amended by section 207 of this Act.
          (3) Allocation of the orca fund.--
                  (A) In general.--Of the amounts deposited in the ORCA 
                Fund each fiscal year--
                          (i) 70 percent shall be allocated to the 
                        Secretary, of which--
                                  (I) 1/2 shall be used to make grants 
                                to coastal States and affected Indian 
                                tribes under subsection (b); and
                                  (II) 1/2 shall be used for the ocean, 
                                coastal, and Great Lakes grants program 
                                established by subsection (c);
                          (ii) 20 percent shall be allocated to the 
                        Secretary to carry out the purposes of 
                        subsection (e); and
                          (iii) 10 percent shall be allocated to the 
                        Secretary to make grants to Regional Ocean 
                        Partnerships under subsection (d).
                  (B) Availability.--Amounts allocated to the Secretary 
                under subparagraph (A) shall be available without 
                further appropriation.
          (4) Procedures.--The Secretary shall establish application, 
        review, oversight, financial accountability, and performance 
        accountability procedures for each grant program for which 
        funds are allocated under this subsection.
  (b) Grants to Coastal States.--
          (1) Grant authority.--The Secretary may use amounts allocated 
        under subsection (a)(3)(A)(I)(I) to make grants to--
                  (A) coastal States pursuant to the formula 
                established under section 306(c) of the Coastal Zone 
                Management Act of 1972 (16 U.S.C. 1455(c)); and
                  (B) affected Indian tribes based on and proportional 
                to any specific coastal and ocean management authority 
                granted to an affected tribe pursuant to affirmation of 
                a Federal reserved right.
          (2) Eligibility.--To be eligible to receive a grant under 
        this subsection, a coastal State or affected Indian tribe must 
        prepare and revise a 5-year plan and annual work plans that--
                  (A) demonstrate that activities for which the coastal 
                State or affected Indian tribe will use the funds are 
                consistent with the eligible uses of the Fund described 
                in subsection (f); and
                  (B) provide mechanisms to ensure that funding is made 
                available to government, nongovernment, and academic 
                entities to carry out eligible activities at the county 
                and local level.
          (3) Approval of state and affected tribal plans.--
                  (A) In general.--Plans required under paragraph (2) 
                must be submitted to and approved by the Secretary.
                  (B) Public input and comment.--In determining whether 
                to approve such plans, the Secretary shall provide 
                opportunity for, and take into consideration, public 
                input and comment on the plans from stakeholders and 
                the general public.
          (5) Energy planning grants.--For each of the fiscal years 
        2011 through 2015, the Secretary may use funds allocated for 
        grants under this subsection to make grants to coastal States 
        and affected tribes under section 320 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1451 et seq.), as amended by 
        this Act.
          (6) Use of funds.--Any amounts provided as a grant under this 
        subsection, other than as a grants under paragraph (5), may 
        only be used for activities described in subsection (f).
  (c) Ocean and Coastal Competitive Grants Program.--
          (1) Establishment.--The Secretary shall use amounts allocated 
        under subsection (a)(3)(A)(I)(II) to make competitive grants 
        for conservation and management of ocean, coastal, and Great 
        Lakes ecosystems and marine resources.
          (2) Ocean, coastal, and great lakes review panel.--
                  (A) In general.--The Secretary shall establish an 
                Ocean, Coastal, and Great Lakes Review Panel (in this 
                subsection referred to as the ``Panel''), which shall 
                consist of 12 members appointed by the Secretary with 
                expertise in the conservation and management of ocean, 
                coastal, and Great Lakes ecosystems and marine 
                resources. In appointing members to the Council, the 
                Secretary shall include a balanced diversity of 
                representatives of relevant Federal agencies, the 
                private sector, nonprofit organizations, and academia.
                  (B) Functions.--The Panel shall--
                          (i) review, in accordance with the procedures 
                        and criteria established under paragraph (3), 
                        grant applications under this subsection;
                          (ii) make recommendations to the Secretary 
                        regarding which grant applications should be 
                        funded and the amount of each grant; and
                          (iii) establish any specific requirements, 
                        conditions, or limitations on a grant 
                        application recommended for funding.
          (3) Procedures and eligibility criteria for grants.--
                  (A) In general.--The Secretary shall establish--
                          (i) procedures for applying for a grant under 
                        this subsection and criteria for evaluating 
                        applications for such grants; and
                          (ii) criteria, in consultation with the 
                        Panel, to determine what persons are eligible 
                        for grants under the program.
                  (B) Eligible persons.--Persons eligible under the 
                criteria under subparagraph (A)(ii) shall include 
                Federal, State, affected tribal, and local agencies, 
                fishery or wildlife management organizations, nonprofit 
                organizations, and academic institutions.
          (4) Approval of grants.--In making grants under this 
        subsection the Secretary shall give the highest priority to the 
        recommendations of the Panel. If the Secretary disapproves a 
        grant recommended by the Panel, the Secretary shall explain 
        that disapproval in writing.
          (5) Use of grant funds.--Any amounts provided as a grant 
        under this subsection may only be used for activities described 
        in subsection (f).
  (d) Grants to Regional Ocean Partnerships.--
          (1) Grant authority.--The Secretary may use amounts allocated 
        under subsection (a)(3)(A)(iii) to make grants to Regional 
        Ocean Partnerships.
          (2) Eligibility.--In order to be eligible to receive a grant, 
        a Regional Ocean Partnership must prepare and annually revise a 
        plan that--
                  (A) identifies regional science and information 
                needs, regional goals and priorities, and mechanisms 
                for facilitating coordinated and collaborative 
                responses to regional issues;
                  (B) establishes a process for coordinating and 
                collaborating with the Regional Coordination Councils 
                established under section 602 to address regional 
                issues and information needs and achieve regional goals 
                and priorities; and
                  (C) demonstrates that activities to be carried out 
                with such funds are eligible uses of the funds 
                identified in subsection (f).
          (3) Approval by secretary.--Such plans must be submitted to 
        and approved by the Secretary.
          (4) Public input and comment.--In determining whether to 
        approve such plans, the Secretary shall provide opportunity 
        for, and take into consideration, input and comment on the 
        plans from stakeholders and the general public.
          (5) Use of funds.--Any amounts provided as a grant under this 
        subsection may only be used for activities described in 
        subsection (f).
  (e) Long-term Ocean and Coastal Observations.--
          (1) In general.--The Secretary shall use the amounts 
        allocated under subsection (a)(3)(A)(ii) to build, operate, and 
        maintain the system established under section 12304 of Public 
        Law 111-11 (33 U.S.C. 3603), in accordance with the purposes 
        and policies for which the system was established.
          (2) Administration of funds.--The Secretary shall administer 
        and distribute funds under this subsection based upon 
        comprehensive system budgets adopted by the Council referred to 
        in section 12304(c)(1)(A) of the Integrated Coastal and Ocean 
        Observation System Act of 2009 (33 U.S.C. 3603(c)(1)(A)).
  (f) Eligible Use of Funds.--Any funds made available under this 
section may only be used for activities that contribute to the 
conservation, protection, maintenance, and restoration of ocean, 
coastal, and Great Lakes ecosystems in a manner that is consistent with 
Federal environmental laws and that avoids environmental degradation, 
including--
          (1) activities to conserve, protect, maintain, and restore 
        coastal, marine, and Great Lakes ecosystem health;
          (2) activities to protect marine biodiversity and living 
        marine and coastal resources and their habitats, including fish 
        populations;
          (3) the development and implementation of multiobjective, 
        science- and ecosystem-based plans for monitoring and managing 
        the wide variety of uses affecting ocean, coastal, and Great 
        Lakes ecosystems and resources that consider cumulative impacts 
        and are spatially explicit where appropriate;
          (4) activities to improve the resiliency of those ecosystems;
          (5) activities to improve the ability of those ecosystems to 
        become more resilient, and to adapt to and withstand the 
        impacts of climate change and ocean acidification;
          (6) planning for and managing coastal development to minimize 
        the loss of life and property associated with sea level rise 
        and the coastal hazards resulting from it;
          (7) research, assessment, monitoring, and dissemination of 
        information that contributes to the achievement of these 
        purposes;
          (8) research of, protection of, enhancement to, and 
        activities to improve the resiliency of culturally significant 
        areas and resources; and
          (9) activities designed to rescue, rehabilitate, and recover 
        injured marine mammals, marine birds, and sea turtles.
  (g) Definitions.--In this section:
          (1) Orca fund.--The term ``ORCA Fund'' means the Ocean 
        Resources Conservation and Assistance Fund established by this 
        section
          (2) Secretary.--Notwithstanding section 3, the term 
        ``Secretary'' means the Secretary of Commerce.

SEC. 606. WAIVER.

  The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to 
the Regional Coordination Councils established under section 602.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR THE 
                    OIL AND GAS INDUSTRY.

  (a) Provisions Relating to Planning Areas Offshore Alaska.--Section 
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas 
offshore Alaska'' after ``West longitude''.
  (b) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as 
transferred, redesignated, moved, and amended by section 347 of the 
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
          (1) in subsection (i) by striking paragraphs (2) through (6); 
        and
          (2) by striking subsection (k).

SEC. 702. CONSERVATION FEE.

  (a) Establishment.--The Secretary shall, within 180 days after the 
date of enactment of this Act, issue regulations to establish an annual 
conservation fee for all oil and gas leases on Federal onshore and 
offshore lands.
  (b) Amount.--The amount of the fee shall be, for each barrel or 
barrel equivalent produced from land that is subject to a lease from 
which oil or natural gas is produced in a calendar year, $2 per barrel 
of oil and 20 cents per million BTU of natural gas in 2010 dollars.
  (c) Assessment and Collection.--The Secretary shall assess and 
collect the fee established under this section.
  (d) Regulations.--The Secretary may issue regulations to prevent 
evasion of the fee under this section.
  (e) Sunset.--This section and the fee established under this section 
shall expire on December 31, 2021.

SEC. 703. LEASING ON INDIAN LANDS.

  Nothing in this Act modifies, amends, or affects leasing on Indian 
lands as currently carried out by the Bureau of Indian Affairs.

SEC. 704. OFFSHORE AQUACULTURE CLARIFICATION.

  (a) No Authority.--The Secretary of Commerce, the Administrator of 
the National Oceanic and Atmospheric Administration, or the Regional 
Fishery Management Councils shall not develop or approve a fishery 
management plan or fishery management plan amendment to permit or 
regulate offshore aquaculture.
  (b) Permits Invalid.--Any permit issued for the conduct of offshore 
aquaculture, including the siting or operation of offshore aquaculture 
facilities, under the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1801 et seq.) shall be invalid upon enactment 
of this Act.
  (c) Definitions.--In this section:
          (1) Offshore aquaculture.--The term ``offshore aquaculture'' 
        means all activities related to--
                  (A) the placement of any installation, facility, or 
                structure in the exclusive economic zone for the 
                purposes of propagation or rearing, or attempting to 
                propagate or rear, any species; or
                  (B) the operation of offshore aquaculture facilities 
                in the exclusive economic zone involved in the 
                propagation or rearing, or attempted propagation or 
                rearing, of species.
          (2) Offshore aquaculture facility.--The term ``offshore 
        aquaculture facility'' means--
                  (A) a structure, installation, or other complex used, 
                in whole or in part, for offshore aquaculture; or
                  (B) an area of the seabed or the subsoil used for 
                offshore aquaculture.

SEC. 705. OUTER CONTINENTAL SHELF STATE BOUNDARIES.

  (a) General.--Not later than 2 years after the date of enactment of 
this Act, the President, acting through the Secretary of the Interior, 
shall publish a final determination under section 4(a)(2) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)) of the boundaries of 
coastal States projected seaward to the outer margin of the Outer 
Continental Shelf.
  (b) Notice and Comment.--In determining the projected boundaries 
specified in subsection (a), the Secretary shall comply with the notice 
and comment requirements under chapter 5 of title 5, United States 
Code.
  (c) Savings Clause.--The determination and publication of projected 
boundaries under subsection (a) shall not be construed to alter, limit, 
or modify the jurisdiction, control, or any other authority of the 
United States over the Outer Continental Shelf.

SEC. 706. LIABILITY FOR DAMAGES TO NATIONAL WILDLIFE REFUGES.

  Section 4 of the National Wildlife Refuge System Administration Act 
of 1966 (16 U.S.C. 668dd) is amended by adding at the end the following 
new subsection:
  ``(p) Destruction or Loss of, or Injury to, Refuge Resources.--
          ``(1) Liability.--
                  ``(A) Liability to united states.--Any person who 
                destroys, causes the loss of, or injures any refuge 
                resource is liable to the United States for an amount 
                equal to the sum of--
                          ``(i) the amount of the response costs and 
                        damages resulting from the destruction, loss, 
                        or injury; and
                          ``(ii) interest on that amount calculated in 
                        the manner described under section1005 of the 
                        Oil Pollution Act of 1990 (33 U.S.C. 2705).
                  ``(B) Liability in rem.--Any instrumentality, 
                including a vessel, vehicle, aircraft, or other 
                equipment, that destroys, causes the loss of, or 
                injures any refuge resource shall be liable in rem to 
                the United States for response costs and damages 
                resulting from such destruction, loss, or injury to the 
                same extent as a person is liable under subparagraph 
                (A).
                  ``(C) Defenses.--A person is not liable under this 
                paragraph if that person establishes that--
                          ``(i) the destruction or loss of, or injury 
                        to, the refuge resource was caused solely by an 
                        act of God, an act of war, or an act or 
                        omission of a third party, and the person acted 
                        with due care;
                          ``(ii) the destruction, loss, or injury was 
                        caused by an activity authorized by Federal or 
                        State law; or
                          ``(iii) the destruction, loss, or injury was 
                        negligible.
                  ``(D) Limits to liability.--Nothing in sections 30501 
                to 30512 or section 30706 of title 46, United States 
                Code, shall limit the liability of any person under 
                this section.
          ``(2) Response actions.--The Secretary may undertake or 
        authorize all necessary actions to prevent or minimize the 
        destruction or loss of, or injury to, refuge resources, or to 
        minimize the imminent risk of such destruction, loss, or 
        injury.
          ``(3) Civil actions for response costs and damages.--
                  ``(A) In general.--The Attorney General, upon request 
                of the Secretary, may commence a civil action against 
                any person or instrumentality who may be liable under 
                paragraph (1) for response costs and damages. The 
                Secretary, acting as trustee for refuge resources for 
                the United States, shall submit a request for such an 
                action to the Attorney General whenever a person may be 
                liable for such costs or damages.
                  ``(B) Jurisdiction and venue.--An action under this 
                subsection may be brought in the United States district 
                court for any district in which--
                          ``(i) the defendant is located, resides, or 
                        is doing business, in the case of an action 
                        against a person;
                          ``(ii) the instrumentality is located, in the 
                        case of an action against an instrumentality; 
                        or
                          ``(iii) the destruction of, loss of, or 
                        injury to a refuge resource occurred.
          ``(4) Use of recovered amounts.--Response costs and damages 
        recovered by the Secretary under this subsection shall be 
        retained by the Secretary in the manner provided for in section 
        107(f)(1) of the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 9607(f)(1)) 
        and used as follows:
                  ``(A) Response costs.--Amounts recovered by the 
                United States for costs of response actions and damage 
                assessments under this subsection shall be used, as the 
                Secretary considers appropriate--
                          ``(i) to reimburse the Secretary or any other 
                        Federal or State agency that conducted those 
                        activities; and
                          ``(ii) after reimbursement of such costs, to 
                        restore, replace, or acquire the equivalent of 
                        any refuge resource.
                  ``(B) Other amounts.--All other amounts recovered 
                shall be used, in order of priority--
                          ``(i) to restore, replace, or acquire the 
                        equivalent of the refuge resources that were 
                        the subject of the action, including the costs 
                        of monitoring the refuge resources;
                          ``(ii) to restore degraded refuge resources 
                        of the refuge that was the subject of the 
                        action, giving priority to refuge resources 
                        that are comparable to the refuge resources 
                        that were the subject of the action; and
                          ``(iii) to restore degraded refuge resources 
                        of other refuges.
          ``(5) Definitions.--In this subsection, the term--
                  ``(A) `damages' includes--
                          ``(i) compensation for--
                                  ``(I)(aa) the cost of replacing, 
                                restoring, or acquiring the equivalent 
                                of a refuge resource; and
                                  ``(bb) the value of the lost use of a 
                                refuge resource pending its restoration 
                                or replacement or the acquisition of an 
                                equivalent refuge resource; or
                                  ``(II) the value of a refuge resource 
                                if the refuge resource cannot be 
                                restored or replaced or if the 
                                equivalent of such resource cannot be 
                                acquired;
                          ``(ii) the cost of conducting damage 
                        assessments;
                          ``(iii) the reasonable cost of monitoring 
                        appropriate to the injured, restored, or 
                        replaced refuge resource; and
                          ``(iv) the cost of enforcement actions 
                        undertaken by the Secretary in response to the 
                        destruction or loss of, or injury to, a refuge 
                        resource;
                  ``(B) `response costs' means the costs of actions 
                taken or authorized by the Secretary to minimize 
                destruction or loss of, or injury to, refuge resources, 
                or to minimize the imminent risks of such destruction, 
                loss, or injury, including costs related to seizure, 
                forfeiture, storage, or disposal arising from 
                liability, or to monitor ongoing effects of incidents 
                causing such destruction, loss, or injury under this 
                subsection; and
                  ``(C) `refuge resource' means any living or nonliving 
                resource of a refuge that contributes to the 
                conservation, management, and restoration mission of 
                the System, including living or nonliving resources of 
                a marine national monument that may be managed as a 
                unit of the System.''.

SEC. 707. STRENGTHENING COASTAL STATE OIL SPILL PLANNING AND RESPONSE.

  The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is 
amended adding at the end the following new section:

``SEC. 320. STRENGTHENING COASTAL STATE OIL SPILL RESPONSE AND 
                    PLANNING.

  ``(a) Grants to States.--The Secretary may make grants to eligible 
coastal states--
          ``(1) to revise management programs approved under section 
        306 (16 U.S.C. 1455) to identify and implement new enforceable 
        policies and procedures to ensure sufficient response 
        capabilities at the state level to address the environmental, 
        economic and social impacts of oil spills or other accidents 
        resulting from Outer Continental Shelf energy activities with 
        the potential to affect any land or water use or natural 
        resource of the coastal zone; and
          ``(2) to review and revise where necessary applicable 
        enforceable policies within approved state management programs 
        affecting coastal energy activities and energy to ensure that 
        these policies are consistent with--
                  ``(A) other emergency response plans and policies 
                developed under Federal or State law; and
                  ``(B) new policies and procedures developed under 
                paragraph (1); and
          ``(3) after a State has adopted new or revised enforceable 
        policies and procedures under paragraphs (1) and (2)--
                  ``(A) the State shall submit the policies and 
                procedures to the Secretary; and
                  ``(B) the Secretary shall notify the State whether 
                the Secretary approves or disapproves the incorporation 
                of the policies and procedures into the State's 
                management program pursuant to section 306(e).
  ``(b) Elements.--New enforceable policies and procedures developed by 
coastal states with grants awarded under this section shall consider, 
but not be limited to--
          ``(1) other existing emergency response plans, procedures and 
        enforceable policies developed under other Federal or State law 
        that affect the coastal zone;
          ``(2) identification of critical infrastructure essential to 
        facilitate spill or accident response activities;
          ``(3) identification of coordination, logistics and 
        communication networks between Federal and State government 
        agencies, and between State agencies and affected local 
        communities, to ensure the efficient and timely dissemination 
        of data and other information;
          ``(4) inventories of shore locations and infrastructure and 
        equipment necessary to respond to oil spills or other accidents 
        resulting from Outer Continental Shelf energy activities;
          ``(5) identification and characterization of significant or 
        sensitive marine ecosystems or other areas possessing important 
        conservation, recreational, ecological, historic, or aesthetic 
        values;
          ``(6) inventories and surveys of shore locations and 
        infrastructure capable of supporting alternative energy 
        development; and
          ``(7) other information or actions as may be necessary.
  ``(c) Guidelines.--The Secretary shall, within 180 days after the 
date of enactment of this section and after consultation with the 
coastal states, publish guidelines for the application for and use of 
grants under this section.
  ``(d) Participation.--A coastal state shall provide opportunity for 
public participation in developing new enforceable policies and 
procedures under this section pursuant to sections 306(d)(1) and 
306(e), especially by relevant Federal agencies, other coastal state 
agencies, local governments, regional organizations, port authorities, 
and other interested parties and stakeholders, public and private, that 
are related to, or affected by Outer Continental Shelf energy 
activities.
  ``(e) Annual Grants.--
          ``(1) In general.--For each of fiscal years 2011 through 
        2015, the Secretary may make a grant to a coastal state to 
        develop new enforceable polices and procedures as required 
        under this section.
          ``(2) Grant amounts and limit on awards.--The amount of any 
        grant to any one coastal State under this section shall not 
        exceed $750,000 for any fiscal year. No coastal state may 
        receive more than two grants under this section.
          ``(3) No state matching contribution required.--As it is in 
        the national interest to be able to respond efficiently and 
        effectively at all levels of government to oil spills and other 
        accidents resulting from Outer Continental Shelf energy 
        activities, a coastal state shall not be required to contribute 
        any portion of the cost of a grant awarded under this section.
          ``(4) Secretarial review and limit on awards.--After an 
        initial grant is made to a coastal state under this section, no 
        subsequent grant may be made to that coastal state under this 
        section unless the Secretary finds that the coastal state is 
        satisfactorily developing revisions to address offshore energy 
        impacts. No coastal state is eligible to receive grants under 
        this section for more than 2 fiscal years.
  ``(f) Applicability.--The requirements of this section shall only 
apply if appropriations are provided to the Secretary to make grants 
under this section. This section shall not be construed to convey any 
new authority to any coastal state, or repeal or supersede any existing 
authority of any coastal state, to regulate the siting, licensing, 
leasing, or permitting of energy facilities in areas of the Outer 
Continental Shelf under the administration of the Federal Government. 
Nothing in this section repeals or supersedes any existing coastal 
state authority.
  ``(g) Assistance by the Secretary.--The Secretary as authorized under 
section 310(a) and to the extent practicable, shall make available to 
coastal states the resources and capabilities of the National Oceanic 
and Atmospheric Administration to provide technical assistance to the 
coastal states to prepare revisions to approved management programs to 
meet the requirements under this section.''.

SEC. 708. INFORMATION SHARING.

  Section 388(b) of the Energy Policy Act of 2005 (43 U.S.C. 1337 note) 
is amended by adding at the end the following:
          ``(4) Availability of data and information.--All heads of 
        departments and agencies of the Federal Government shall, upon 
        request of the Secretary, provide to the Secretary all data and 
        information that the Secretary deems necessary for the purpose 
        of including such data and information in the mapping 
        initiative, except that no department or agency of the Federal 
        Government shall be required to provide any data or information 
        that is privileged or proprietary.''.

SEC. 709. REPEAL OF FUNDING.

  Effective October 1, 2010, section 999H of the Energy Policy Act of 
2005 (42 U.S.C. 16378) is amended--
          (1) by striking subsections (a), (b), (c), and (f);
          (2) by redesignating subsections (d) and (e) as subsections 
        (a) and (b), respectively;
          (3) in subsection (a), as so redesignated, by striking 
        ``obligated from the Fund under subsection (a)(1)'' and 
        inserting ``available under this section''; and
          (4) in subsection (b), as so redesignated, by striking ``In 
        addition to other amounts that are made available to carry out 
        this section, there'' and inserting ``There''.

SEC. 710. LIMITATION ON USE OF FUNDS.

  None of the funds authorized or made available by this Act may be 
used to carry out any activity or pay any cost for which a responsible 
party (as such term is defined in section 1001 of the Oil Pollution Act 
of 1990 (33 U.S.C. 2701)) is liable under the Oil Pollution Act of 1990 
(33 U.S.C. 2701 et seq.) or other law.

SEC. 711. ADDITIONAL PUBLIC-RIGHT-TO-KNOW REQUIREMENTS.

  The Secretary of the Interior shall make publicly available in a 
database that is accessible by the public through the Internet 
information regarding judicial actions filed against the Department of 
the Interior regarding leasing, production, exploration, or any related 
activities under the Outer Continental Shelf Lands Act, the Mineral 
Leasing Act, the Geothermal Steam Act of 1970, including any action 
under any amendment to any of those laws made by this Act. The database 
shall include a list the full amount of attorney's fees required to be 
paid in such actions by court order or settlement agreement.

SEC. 712. FEDERAL RESPONSE TO STATE PROPOSALS TO PROTECT STATE LANDS 
                    AND WATERS.

  Any State shall be entitled to timely decisions regarding permit 
applications or other approvals from any Federal official, including 
the Secretary of the Interior or the Secretary of Commerce, for any 
State or local government response activity to protect State lands and 
waters that is directly related to the discharge of oil determined to 
be a spill of national significance. Within 48 hours of the receipt of 
the State application or request for approval, the Federal official 
shall provide a clear determination on the permit application or 
approval request to the State, or provide a definite date by which the 
determination shall be made to the State. If the Federal official fails 
to meet either of these deadlines, the permit application is presumed 
to be approved or other approval granted.

                 TITLE VIII--GULF OF MEXICO RESTORATION

SEC. 801. GULF OF MEXICO RESTORATION PROGRAM.

  (a) Program.--There is established a Gulf of Mexico Restoration 
Program for the purposes of coordinating Federal, State, and local 
restoration programs and projects to maximize efforts in restoring 
biological integrity, productivity and ecosystem functions in the Gulf 
of Mexico.
  (b) Gulf of Mexico Restoration Task Force.--
          (1) Establishment.--There is established a task force to be 
        known as the Gulf of Mexico Restoration Task Force (in this 
        section referred to as the ``Restoration Task Force'').
          (2) Membership.--The Restoration Task Force shall consist of 
        the Governors of each of the Gulf coast States and the heads of 
        appropriate Federal agencies selected by the President. The 
        chairperson of the Restoration Task Force (in this subsection 
        referred to as the ``Chair'') shall be appointed by the 
        President. The Chair shall be a person who, as the result of 
        experience and training, is exceptionally well-qualified to 
        manage the work of the Restoration Task Force. The Chair shall 
        serve in the Executive Office of the President.
          (3) Advisory committees.--The Restoration Task Force may 
        establish advisory committees and working groups as necessary 
        to carry out is its duties under this Act.
  (c) Gulf of Mexico Restoration Plan.--
          (1) In general.--Not later than nine months after the date of 
        enactment of this Act, the Restoration Task Force shall issue a 
        proposed comprehensive plan for long-term restoration of the 
        Gulf of Mexico. Not later than 12 months after the date of 
        enactment and after notice and opportunity for public comment, 
        the Restoration Task Force shall publish a final plan. The Plan 
        shall be updated every five years in the same manner.
          (2) Elements of restoration plans.--The Plan shall--
                  (A) identify processes and strategies for 
                coordinating Federal, State, and local restoration 
                programs and projects to maximize efforts in restoring 
                biological integrity, productivity and ecosystem 
                functions in the Gulf of Mexico region;
                  (B) identify mechanisms for scientific review and 
                input to evaluate the benefits and long-term 
                effectiveness of restoration programs and projects;
                  (C) identify, using the best science available, 
                strategies for implementing restoration programs and 
                projects for natural resources including--
                          (i) restoring species population and habitat 
                        including oyster reefs, sea grass beds, coral 
                        reefs, tidal marshes and other coastal wetlands 
                        and barrier islands and beaches;
                          (ii) restoring fish passage and improving 
                        migratory pathways for wildlife;
                          (iii) research that directly supports 
                        restoration programs and projects;
                          (iv) restoring the biological productivity 
                        and ecosystem function in the Gulf of Mexico 
                        region; and
                          (v) improving the resilience of natural 
                        resources to withstand the impacts of climate 
                        change and ocean acidification to ensure the 
                        long-term effectiveness of the restoration 
                        program.
          (3) Report.--The Task Force shall annually provide a report 
        to Congress about the progress in implementing the Plan.
  (d) Definitions.--For purposes of this section, the term--
          (1) ``Gulf coast State'' means each of the States of Texas, 
        Louisiana, Mississippi, Alabama, and Florida; and
          (2) ``restoration programs and projects'' means activities 
        that support the restoration, rehabilitation, replacement, or 
        acquisition of the equivalent, of injured or lost natural 
        resources including the ecological services and benefits 
        provided by such resources.
  (e) Relationship to Other Law.--Nothing in this section affects the 
ability or authority of the Federal Government to recover costs from a 
person determined to be a responsible party pursuant to the Oil 
Pollution Act of 1990 (33 U.S.C. 2701 et seq.) or other law.

               TITLE IX--GEOTHERMAL PRODUCTION EXPANSION

SEC. 901. SHORT TITLE.

  This title may be cited as the ``Geothermal Production Expansion 
Act''.

SEC. 902. FINDINGS.

  The Congress finds the following:
          (1) It is in the best interest of the United States to 
        develop clean renewable geothermal energy.
          (2) Development of such energy should be promoted on 
        appropriate Federal lands.
          (3) Under the Energy Policy Act of 2005, the Bureau of Land 
        Management is authorized to issue three different types of non-
        competitive leases for production of geothermal energy on 
        Federal lands, including non-competitive geothermal leases to 
        mining claim holders that have a valid operating plan, direct 
        use leases, and leases on parcels that do not sell at a 
        competitive auction.
          (4) Federal geothermal energy leasing activity should be 
        directed towards those seeking to develop the land as opposed 
        to those seeking to speculate on geothermal resources and 
        thereby artificially raising the cost of legitimate geothermal 
        energy development.
          (5) Developers of geothermal energy on Federal lands that 
        have invested substantial capital and made high risk 
        investments should be allowed to secure a discovery of 
        geothermal energy resources.
          (6) Successful geothermal development on Federal lands will 
        provide increased revenue to the Federal Government, with the 
        payment of production royalties over decades.

SEC. 903. NONCOMPETITIVE LEASING OF ADJOINING AREAS FOR DEVELOPMENT OF 
                    GEOTHERMAL RESOURCES.

  (a) In General.--Section 4(b) of the Geothermal Steam Act of 1970 (30 
U.S.C. 1003(b)) by adding at the end the following:
          ``(4) Adjoining lands.--
                  ``(A) In general.--An area of qualified Federal lands 
                that adjoins other lands for which a qualified lessee 
                holds a legal right to develop geothermal resources may 
                be available for noncompetitive lease under this 
                section to the qualified lessee at the fair market 
                value per acre, if--
                          ``(i) the area of qualified Federal lands--
                                  ``(I) consists of not less than 1 
                                acre, and not more than 640 acres; and
                                  ``(II) is not already leased under 
                                this Act or nominated to be leased 
                                under subsection (a);
                          ``(ii) the qualified lessee has not 
                        previously received a noncompetitive lease 
                        under this paragraph in connection with the 
                        valid discovery for which data has been 
                        submitted under subclause (I) of clause (iii); 
                        and
                          ``(iii) sufficient geological and other 
                        technical data prepared by a qualified 
                        geothermal professional has been submitted by 
                        the qualified lessee to the relevant Federal 
                        land management agency that would engender a 
                        belief in individuals who are experienced in 
                        the subject matter that--
                                  ``(I) there is a valid discovery of 
                                geothermal resources on the lands for 
                                which the qualified lessee holds the 
                                legal right to develop geothermal 
                                resources; and
                                  ``(II) such thermal feature extends 
                                into the adjoining areas.
                  ``(B) Determination of fair market value.--
                          ``(i) In general.--The Secretary shall--
                                  ``(I) publish a notice of any request 
                                to lease land under this paragraph;
                                  ``(II) determine fair market value 
                                for purposes of this paragraph in 
                                accordance with procedures for making 
                                such determinations that are 
                                established by regulations issued by 
                                the Secretary;
                                  ``(III) provide to a qualified lessee 
                                and publish any proposed determination 
                                under this subparagraph of the fair 
                                market value of an area that the 
                                qualified lessee seeks to lease under 
                                this paragraph;
                                  ``(IV) provide to such qualified 
                                lessee the opportunity to appeal such 
                                proposed determination within the 30-
                                day period after it is provided to the 
                                qualified lessee; and
                                  ``(V) provide to any interested 
                                member of the public the opportunity to 
                                appeal such proposed determination in 
                                accordance with the process set forth 
                                in parts 4, 1840, and 3200.5 of title 
                                43, Code of Federal Regulations (as in 
                                effect on the date of enactment of the 
                                Geothermal Production Expansion Act) 
                                within the 30-day period after it 
                                published.
                          ``(ii) Limitation on nomination.--After 
                        publication of a notice of request to lease 
                        land under this paragraph, the Secretary may 
                        not accept under subsection (a) any nomination 
                        of the land for leasing unless the request has 
                        been denied or withdrawn.
                          ``(iii) Regulations: deadline; publication of 
                        proposed regulations.--The regulations required 
                        under clause (i) shall be issued by not later 
                        than 90 days after the date of enactment of 
                        this Act, and after publication of, and an 
                        opportunity for public comment on, the proposed 
                        regulations.
                  ``(C) Definitions.--In this paragraph--
                          ``(i) the term `fair market value per acre' 
                        means a dollar amount per acre that--
                                  ``(I) except as provided in this 
                                clause, shall be equal to the market 
                                value per acre as determined by the 
                                Secretary under regulations under this 
                                paragraph;
                                  ``(II) shall be determined by the 
                                Secretary with respect to a lease under 
                                this paragraph, by not later than the 
                                end of the 90-day period beginning on 
                                the date the Secretary receives an 
                                application for the lease; and
                                  ``(III) shall be not less than the 
                                greater of--
                                          ``(aa) four times the median 
                                        amount paid per acre for all 
                                        lands leased under this Act in 
                                        the preceding year; or
                                          ``(bb) $50;
                          ``(ii) the term `industry standards' means 
                        the standards by which a qualified geothermal 
                        professional assesses whether downhole or 
                        flowing temperature measurements with 
                        indications of permeability are sufficient to 
                        produce energy from geothermal resources as 
                        determined through flow or injection testing or 
                        measurement of lost circulation while drilling;
                          ``(iii) the term `qualified Federal lands' 
                        means lands that are otherwise available for 
                        leasing under this Act;
                          ``(iv) the term `qualified geothermal 
                        professional' means an individual who is an 
                        engineer or geoscientist in good professional 
                        standing with at least five years of experience 
                        in geothermal exploration, development, project 
                        assessment, or any combination of the forgoing;
                          ``(v) the term `qualified lessee' means a 
                        person that may hold a geothermal lease under 
                        part 3202.10 of title 43, Code of Federal 
                        Regulations, as in effect on the date of 
                        enactment of the Geothermal Production 
                        Expansion Act; and
                          ``(vi) the term `valid discovery' means a 
                        discovery of a geothermal resource by a new or 
                        existing slim hole or production well, that 
                        exhibits downhole or flowing temperature 
                        measurements with indications of permeability 
                        sufficient to meet industry standards.''.
  (b) Deadline for Regulations.--The Secretary shall issue regulations 
to implement the amendment made by subsection (a), by not later than 6 
months after the date of the enactment of this Act.

                          Purpose of the Bill

    The purpose of H.R. 3534, the Consolidated Land, Energy, 
and Aquatic Resources (CLEAR) Act of 2010, as ordered reported, 
is to promote energy policy reforms and public accountability, 
improve the safety of offshore drilling, coordinate restoration 
activities in the Gulf of Mexico, provide for better management 
of renewable energy on public lands, create a new planning 
process for oceans, coastal zones, and the Great Lakes, and for 
other purposes.

                  Background and Need for Legislation

    H.R. 3534 is fiscally responsible legislation which 
addresses the nation's needs for a more sound energy policy 
with regard to public lands and natural resources. The bill 
reorganizes the Department of the Interior to provide for 
better management of energy resources on federal lands and 
waters, and to eliminate the conflicts that can arise between 
the missions of leasing, inspection and enforcement, and 
revenue collection. In response to the Deepwater Horizon 
tragedy of April 20, 2010, and the subsequent spilling of 94 
million to 184 million gallons of oil into the Gulf of Mexico 
over the following three months, the bill also substantially 
amends the Outer Continental Shelf Lands Act to require 
significantly stronger safety standards and increased 
environmental reviews of offshore drilling activities. To 
address the environmental devastation caused by the spill, the 
bill creates a Gulf of Mexico Restoration Task Force to help 
coordinate recovery efforts. In order to ensure that American 
taxpayers receive their fair share from companies that extract 
resources from public lands, the bill includes numerous fiscal 
accountability provisions that close royalty loopholes and 
increase penalties on violators.
    This legislation is the culmination of more than three 
dozen hearings conducted by the full Committee and its 
subcommittees since January of 2007. The legislation was 
initially introduced on September 8, 2009, and was 
substantially amended in the aftermath of the Deepwater Horizon 
incident, which highlighted the need for enhanced safety 
standards on the Outer Continental Shelf. Key provisions 
included in H.R. 3534 as reported by the Committee will:

    Create three separate agencies within the Department of the 
Interior for the management of energy and mineral resources on 
federal lands and waters: the Bureau of Energy and Resource 
Management, which will be responsible for leasing and 
permitting; the Bureau of Safety and Environmental Enforcement, 
which will be responsible for safety and environmental 
inspections; and the Office of Natural Resources Revenue, which 
will be responsible for all revenue collection from energy and 
mineral-related activities. The duties for all three agencies 
extend to onshore and offshore activities.
    Require more stringent safety regulations for oil and gas 
operations on the Outer Continental Shelf, including 
determinations that lessees are able to immediately effectively 
respond to worst-case oil spills, independent third-party 
certifications of crucial safety components, the adoption of 
safety cases and safety and environmental management systems, 
stiffer penalties for regulatory violations, certifications 
from operators of safe practices, more frequent and thorough 
inspections, and enhanced requirements to use best-available 
technologies.
    Forbid companies with egregious safety and environmental 
records from obtaining new leases on the Outer Continental 
Shelf.
    Impose supplemental ethics requirements on Department of 
the Interior employees who have regular, direct contact with 
lessees, and impose new revolving-door restrictions to prevent 
individuals from moving back and forth from the Department to 
the energy industry.
    Establish a Gulf of Mexico Restoration Task Force, made up 
of federal agencies and Gulf state governors, to develop a 
long-term restoration plan for the Gulf Coast.
    Provide for new standards to ensure that federal energy 
lessees are diligently developing their leases.
    Reform the onshore oil and gas leasing system to eliminate 
noncompetitive oil and gas leasing, allow for auctions with 
sealed bids, increase the minimum bid and yearly rentals, allow 
the Secretary of the Interior to ensure that the American 
people are receiving the appropriate value for the mineral 
leasing rights, and reduce the mandated number of lease sales.
    Require companies that are producing oil or gas from the 
Gulf of Mexico royalty-free because of a lack of price 
thresholds in their leases to renegotiate those leases to 
include price thresholds before they can obtain new leases. 
Because of a lawsuit brought against the government by the 
Kerr-McGee Corporation (now Anadarko), companies are currently 
paying no royalties on production from leases issued between 
1996 and 2000. The Government Accountability Office has 
calculated that this could cost American taxpayers up to $53 
billion over the life of the leases.
    Permanently eliminate the scandal-ridden Royalty-in-Kind 
Program.
    Eliminate the categorical exclusions that were statutorily 
included in the Energy Policy Act of 2005, and which the 
Government Accountability Office has found ``may have thwarted 
[the National Environmental Policy Act's] twin aims of ensuring 
that the Bureau of Land Management (BLM) and the public are 
fully informed of the environmental consequences of BLM's 
actions.''
    Make uranium a leasable mineral, subject to rental and 
royalty rates, which will increase predictability of where and 
when development occurs, and help protect national treasures 
such as the Grand Canyon.
    Fully fund the Land and Water Conservation Fund and the 
Historic Preservation Fund with $900 million and $150 million 
each year, respectively, taken from offshore drilling revenues.
    Create a new Ocean Resources Conservation and Assistance 
(ORCA) Fund, which will receive 10% of offshore drilling 
revenues each year, and would provide grants to coastal states 
and Regional Ocean Partnerships for activities that contribute 
to the protection, maintenance, and restoration of ocean, 
coastal and Great Lakes ecosystems.

                            Committee Action

    H.R. 3534 was introduced by Natural Resources Committee 
Chairman Nick J. Rahall II (D-WV) on September 8, 2009. The 
bill was referred to the Committee on Natural Resources. Full 
committee hearings were held on September 16 and 17, 2009, and 
again on June 30, 2010 on a new discussion draft revised in 
order to address the impacts and issues associated with the 
Deepwater Horizon oil spill.
    In addition, 14 hearings were held by the full Committee or 
its subcommittees on topics related to H.R. 3534 during the 
111th Congress:
    <bullet> February 11, 2009, Full Committee oversight 
hearing on ``Offshore Drilling: Environmental and Commercial 
Perspectives.'' This was the first of a three-part series of 
full committee hearings held to examine the question of what 
comes next on the Outer Continental Shelf (OCS) in the 
aftermath of the expiration of the Congressional moratorium and 
the revocation of the Presidential withdrawal, which had both 
protected large swaths of the Atlantic and Pacific coasts from 
oil and gas drilling. In this hearing, the Committee heard from 
representatives of environmental groups, tourist bureaus, and 
fishing groups, who argued that an expansion of offshore 
drilling into areas previously under a moratorium could lead to 
environmental and economic damage.
    <bullet> February 24, 2009, Full Committee oversight 
hearing on ``Offshore Drilling: State Perspectives.'' This was 
the second of the three-part series on the future of the OCS in 
the post-moratorium landscape, and the Committee heard 
testimony from two Members of Congress from California, as well 
as state witnesses from California, Maine, Virginia, and 
Louisiana. The witnesses from Virginia and Louisiana were 
supportive of additional oil and gas drilling off their coasts, 
while the witnesses from California and Maine were opposed to 
additional drilling.
    <bullet> February 25, 2009, Full Committee oversight 
hearing on ``Offshore Drilling: Industrial Perspectives.'' This 
was the final hearing of the three-part series. During this 
hearing the Committee heard testimony from top executives from 
BP, Shell, ExxonMobil, Chevron, and Devon, who testified about 
their ability to expand oil and gas drilling into new areas in 
a safe and environmentally protective manner.
    <bullet> March 5, 2009, Subcommittee on Energy and Mineral 
Resources oversight hearing on ``Energy Outlooks, and the Role 
of Federal Onshore and Offshore Resources in Meeting Future 
Energy Demand.'' The Subcommittee heard testimony from the 
acting head of the Energy Information Administration (EIA), the 
chief economist of the International Energy Agency (IEA), and 
the coordinator of the U.S. Geological Survey's Energy Resource 
Program, on their outlooks for future energy supply and demand, 
and how federal lands and the OCS fit into this picture. The 
EIA previewed their Annual Energy Outlook 2009, in which they 
calculated that restoring the moratorium on the Atlantic and 
Pacific coasts would result in a roughly 540,000 barrel/day 
reduction in domestic production by 2030, a 7.4% decrease, 
which translates to a 3-cent increase in the price of a gallon 
of gasoline.
    <bullet> March 17, 2009, Subcommittee on Energy and Mineral 
Resources oversight hearing on ``Leasing and Development of Oil 
and Gas Resources on the Outer Continental Shelf.'' This 
hearing focused largely on the question of whether companies 
were diligently developing their leases on the OCS. The 
Department of the Interior's Acting Inspector General (IG) 
testified that companies that own federal drilling leases 
``have little obligation to actually produce,'' and that the 
Department of the Interior, ``has no formal policy to compel 
companies to bring these leases into production.'' The IG also 
testified that BLM and the Minerals Management Service (MMS) 
employed ``inconsistent procedures and definitions and that 
BLM's records are often incomplete and inaccurate, all of which 
call into question both the integrity and usefulness of their 
data.'' The Government Accountability Office testified that 
``Interior does less to encourage development of federal oil 
and gas leases than some state and private landowners,'' and 
that the U.S. ``receives one of the lowest shares of revenue 
for oil and gas resources compared with other countries.''
    <bullet> March 24, 2009, Subcommittees on Energy and 
Mineral Resources and Insular Affairs, Oceans & Wildlife joint 
oversight hearing on ``Energy Development on the Outer 
Continental Shelf and the Future of our Oceans.'' The 
subcommittees heard testimony from state and local government 
officials, academics, environmental groups, and representatives 
of the private sector regarding recommendations on how to have 
offshore energy development coexist with healthy, productive 
oceans. Many of the witnesses stressed the need to conduct 
marine spatial planning to determine the most effective and 
protective ways to site activities in the oceans. Two witnesses 
also testified about the impacts of offshore energy 
development--in particular chemical discharges and seismic 
surveys--on marine life.
    <bullet> May 11, 2009, Subcommittee on Energy and Mineral 
Resources oversight field hearing on ``Solar Energy Development 
on Federal Lands: The Road To Consensus.'' The subcommittee met 
in Palm Desert, California, to hear testimony regarding efforts 
to build solar energy facilities on federal lands. The 
California desert is one of the most promising locations for 
solar energy facilities in the world, but local landowners and 
environmental groups have expressed concern about a wholesale 
land rush that would destroy sensitive desert habitats and 
negatively impact endangered or threatened species. The Bureau 
of Land Management testified about the large backlog of 
applications they were processing, while officials from the 
State of California discussed their Renewable Energy 
Transmission Initiative (RETI), a stakeholder-driven 
collaborative process designed to find the best locations for 
new transmission lines for electricity generated from renewable 
sources.
    <bullet> September 9, 2009, Subcommittee on Energy and 
Mineral Resources legislative hearing on the ``American 
Conservation and Clean Energy Independence Act'' (H.R. 2227). 
The subcommittee met to hear testimony on legislation 
introduced by Representatives Tim Murphy (R-PA) and Neil 
Abercrombie (D-HI) that would expand and accelerate leasing on 
the Outer Continental Shelf, and provide for revenue sharing 
with coastal states.
    <bullet> February 24, 2010, Subcommittee on Energy and 
Mineral Resources legislative hearing on the ``Geothermal 
Production Expansion Act'' (H.R. 3709). The subcommittee heard 
testimony on a bill introduced by Representative Jay Inslee (D-
WA) that would provide for noncompetitive geothermal leasing of 
federal lands in instances where a prospective lessee had made 
a discovery of geothermal resources on adjacent lands.
    <bullet> May 26 & 27, 2010, Full Committee oversight 
hearing on the ``Outer Continental Shelf Oil and Gas Strategy 
and Implications of the Deepwater Horizon Rig Explosion.'' This 
two-day hearing investigated the causes and aftermath of the 
explosion and sinking of the Mobile Offshore Drilling Unit 
(MODU) Deepwater Horizon in the Gulf of Mexico. The Committee 
questioned the Chairman of BP America and the CEO of 
TransOcean, LLC about the circumstances leading up to the 
disaster and their companies' respective responsibilities with 
respect to the cleanup. The Committee also heard from Secretary 
of the Interior Ken Salazar about his plans to reorganize the 
Minerals Management Service, and how this incident would impact 
future oil and gas activity on the OCS. In addition, the Acting 
Inspector General of the Department of the Interior presented 
the results of her office's latest report, which detailed 
ethical issues within the offshore inspection program. In 
particular, the IG highlighted problems with the ``revolving 
door'' that exists between MMS and the oil and gas industry.
    <bullet> June 10, 2010, Subcommittee on Insular Affairs, 
Oceans and Wildlife oversight hearing on ``Our Natural 
Resources at Risk: The Short and Long Term Impacts of the 
Deepwater Horizon Oil Spill.'' This hearing explored short and 
long term impacts to trust resources, including fisheries, 
birds and other wildlife, marine mammals, tribal resources, and 
protected fish and wildlife habitat and other natural areas as 
a result of the Deepwater Horizon oil spill. It also examined 
the implications for local communities who depend on many of 
those resources for their livelihoods. The National Oceanic and 
Atmospheric Administration and the Department of Interior both 
testified on the need for more resources to provide oil spill 
trajectory models to guide response and recovery activities and 
to conduct accurate and legally defensible natural resource 
damage assessments.
    The Committee also heard from the Louisiana Department of 
Wildlife and Fisheries, the Marine Mammal Commission, the 
United Houma Nation, and representatives from the commercial 
and recreational fishing industries, seafood industry, tourism 
industry, scientific community, and environmental 
organizations, all of whom testified as to on-the-ground social 
and environmental impacts of the oil spill and the critical 
need for up-to-date, transparent, and consistent lines of 
communication with state and federal government officials 
regarding response and recovery activities.
    <bullet> June 15, 2010, Subcommittee on Insular Affairs, 
Oceans and Wildlife oversight hearing on ``Ocean Science and 
Data Limits in a Time of Crisis: Do NOAA and the Fish and 
Wildlife Service (FWS) Have the Resources to Respond?'' This 
hearing explored what we know and do not know about the 
environment to guide oil spill response and recovery activities 
in the Gulf of Mexico. In particular, it examined the gaps and 
limits in our understanding of the complex estuarine, coastal, 
and marine environments of the Gulf, and especially, how 
limited investments in coastal science programs and ocean 
observation systems have affected the capability of federal 
agencies to provide timely and accurate scientific information 
to target response activities and to assess damages to natural 
resources.
    <bullet> June 17, 2010, Subcommittee on Energy and Mineral 
Resources oversight hearing on ``The Deepwater Horizon 
Incident: Are the Minerals Management Service Regulations Doing 
The Job?'' This hearing examined both the existing MMS 
regulatory structure for offshore drilling, and the plans 
proposed by the Secretary of the Interior for reorganizing the 
Minerals Management Service. The Acting Inspector General of 
the Department of the Interior testified on the problems with 
MMS's inspection program: a shortage of regulations covering 
the program, difficulty in recruiting and retaining inspectors 
due to competition with industry, out-of-date inspector 
training programs, and an inadequate number of inspectors to 
cover all offshore facilities. The Government Accountability 
Office testified about their investigations into the 
shortcomings of the inspection and enforcement program, 
including high turnover rates, inconsistent procedures between 
BLM and MMS, and inappropriate relationships between Interior 
Department staff and the oil and gas industry.
    The committee also heard from a whistleblower about a 
potential shortage of technical documentation for another 
offshore drilling rig, the BP Atlantis production platform; 
from an international regulatory expert about how safety cases 
are implemented to other countries to improve offshore drilling 
safety; from the American Petroleum Institute about how the 
industry develops standards and recommended practices; from the 
Project on Government Oversight about the need for strong new 
ethics requirements; and from the Pew Environment Group about 
recommended changes to the Outer Continental Shelf Lands Act.
    <bullet> June 24, 2010, Subcommittee on Insular Affairs, 
Oceans and Wildlife oversight hearing on ``State Planning for 
Offshore Energy Development: Standards for Preparedness.'' This 
hearing explored coastal state planning for offshore energy 
development and examined whether current planning efforts and 
requirements under existing law were sufficient to ensure a 
coordinated and effective response to major spills. The hearing 
also examined whether coastal states have adequate emergency 
response infrastructure in place, and if their capabilities to 
inform and mobilize networks of potentially affected 
communities are sufficient.
    The Committee heard from the Chair of the Gulf of Mexico 
Alliance, who testified on the significant role played by this 
regional ocean partnership to respond to the research, 
monitoring, and remediation needs brought on by the Deepwater 
Horizon disaster. The Executive Director of the Coastal States 
Organization testified on the need for further guidance and 
funding to coastal states to strengthen their federally-
approved state coastal management plans for oil spill response 
and planning. A Jackson County, Mississippi Supervisor 
testified on the need to build local capacity, both in 
personnel and infrastructure, to increase communication and 
coordination in the event of another oil spill. The Executive 
Director from the National Estuarine Research Reserve (NERR) 
Association testified on the necessary role that NERRs play in 
collecting long-term baseline data that can help serve as a 
foundation for natural resource damage assessments. The 
Executive Vice President of the Ocean Conservancy testified on 
the need for industry to fund research to increase 
understanding of the fate of oil and dispersant in the ocean 
environment and to increase capacity in responding to and 
recovering from oil spills.

                      Full Committee Markup Action

    On Wednesday, July 14, and Thursday, July 15, 2010, the 
Natural Resources Committee met in open session to consider 
H.R. 3534. Natural Resources Committee Chairman Nick J. Rahall, 
II (D-WV) offered an amendment in the nature of a substitute.
    Rep. George Miller (D-CA) offered an amendment.184 to 
section 206 of the amendment in the nature of a substitute to 
disqualify companies from bidding on leases or drilling wells 
if they have certain violations of health, safety, and 
environmental laws in the preceding 7 years, which was agreed 
to by voice vote.
    Ranking Member Doc Hastings (R-WA) offered an amendment.110 
to the amendment in the nature of a substitute to strike Titles 
II, III, IV, V, VI, and VII (except sections 703 and 710), 
which was not agreed to by a roll call vote of 17 yeas and 21 
nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Miller offered an amendment.009 to the amendment in 
the nature of a substitute to require consultation with the 
Secretary of Labor to address worker safety and health, which 
was withdrawn.
    Rep. Miller offered an amendment.002 to the amendment in 
the nature of a substitute to amend Title VII to extend 
whistleblower and anti-retaliation protections to workers on 
the Outer Continental Shelf, which was withdrawn.
    Rep. Bill Cassidy (R-LA) offered an amendment.010 to the 
amendment in the nature of a substitute to establish a National 
Commission on Oil Spill Prevention in the legislative branch, 
which was agreed to by voice vote.
    Rep. Edward Markey (D-MA) offered an amendment.090 to the 
amendment in the nature of a substitute to prohibit the 
issuance of new leases to any company holding a lease issued 
from 1996-2000 and has not renegotiated that lease to add price 
thresholds, which was agreed to by voice vote.
    Rep. Jeff Flake (R-AZ) offered an amendment.241 to the 
amendment in the nature of a substitute to strike section 242, 
which was not agreed to by a roll call vote of 18 yeas and 22 
nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Markey offered an amendment.091 to the amendment in 
the nature of a substitute to establish a pilot leasing program 
for wind and solar energy on federal lands and a National 
Academy of Sciences study examining competitive versus 
noncompetitive leasing systems for wind and solar projects, 
which was not agreed to by a roll call vote of 15 yeas and 28 
nays, as follows:

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    Rep. Hastings offered an amendment.120 to the amendment in 
the nature of a substitute to strike Title V, which was 
withdrawn.
    Rep. Ben Ray Lujan offered an amendment.059 to the 
amendment in the nature of a substitute to require the 
Secretary of the Interior to promulgate regulations that 
discourage speculation in acquisition of leases for wind and 
solar energy development, which was agreed to by voice vote.
    Rep. Jason Chaffetz (R-UT) offered an amendment.121 to the 
amendment in the nature of a substitute to strike the funding 
described in section 207, Title V, and section 605, which was 
not agreed to by a roll call vote of 16 yeas and 25 nays, as 
follows:

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    Rep. Heinrich (D-NM) offered an amendment.049 to the 
amendment in the nature of a substitute to strengthen surface 
owner protections and notice requirements in cases of split 
estate, which was withdrawn.
    Rep. Fleming (R-LA) offered an amendment.108 to the 
amendment in the nature of a substitute to strike section 239, 
which was not agreed to by a roll call vote of 19 yeas and 25 
nays, as follows:

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    Rep. Jay Inslee (D-WA) offered an en bloc amendment.136 and 
.137 to the amendment in the nature of a substitute to 
establish risk assessment standards for blowout preventers and 
other best available technologies, which was agreed by voice 
vote.
    Rep. Inslee offered a further amendment.140 to the 
amendment in the nature of a substitute to require the 
consideration of the availability of oil spill response 
infrastructure in developing a 5-year leasing plan, which was 
agreed to by voice vote.
    Rep. Don Young (R-AK) offered an amendment.069 to the 
amendment in the nature of a substitute to allow activities 
that rescue and rehabilitate marine mammals, turtles and sea 
birds to compete for funding under section 605, which was 
agreed to by voice vote.
    Rep. Raul Grijalva (D-AZ) offered an amendment.089 to 
section 503 of the amendment in the nature of a substitute to 
waive rental fees for lands already adversely impacted by prior 
use when leased and redeveloped for renewable energy, which was 
agreed to by voice vote.
    Rep. Grijalva offered a further amendment.084 to section 
501 of the amendment in the nature of a substitute to require 
the issuing of guidance for evaluation and approval of those 
wind and solar projects on public lands which are grandfathered 
under the right of way authorization process in that section, 
which was withdrawn.
    Rep. Grijalva offered a further amendment.090 to the 
amendment in the nature of a substitute to amend sections 208 
and 215 to require Environmental Impact Statements for 
exploration or development plans when they involve frontier 
areas or new technologies, which was withdrawn.
    Rep. Chaffetz offered an amendment.004 to the amendment in 
the nature of a substitute to prohibit earmarking of funds 
authorized under Title IV or section 605, which was not agreed 
to by a roll call vote of 20 yeas and 25 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. John Sarbanes (D-MD) offered an amendment to the 
amendment in the nature of a substitute to require the 
promulgation of regulations to calculate royalty payments 
without deductions for transportation or processing costs, 
which was withdrawn.
    Rep. Sarbanes offered a further amendment.042 to the 
amendment in the nature of a substitute to require CEO 
certification that oil spill response plans are able to respond 
to a worst-case scenario, which was withdrawn.
    Rep. Paul Broun (R-GA) offered an amendment.119 to the 
amendment in the nature of a substitute to require free and 
open access of the media to oil spill cleanup activities, which 
was ruled out of order as non-germane.
    Rep. Lujan offered an en bloc amendment.060 and .063 to the 
amendment in the nature of a substitute to amend sections 211 
and 242, which was agreed to by voice vote.
    Rep. Louie Gohmert (R-TX) offered an amendment.013 to the 
amendment in the nature of a substitute to prohibit Interior 
Department inspectors from going on strike, which was not 
agreed to by a roll call vote of 19 yeas and 26 nays, as 
follows:

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    Rep. Inslee offered an amendment.138 to section 501 of the 
amendment in the nature of a substitute to allow all solar and 
wind projects with applications submitted before July 1, 2010, 
to be permitted using the existing process, which was agreed to 
by voice vote.
    Rep. Inslee offered a further amendment.141 to the 
amendment in the nature of a substitute to create a renewable 
energy development office within the Bureau of Energy and 
Resource Management, and establish renewable energy permit 
coordination offices, which was withdrawn.
    Rep. Inslee offered a further amendment.142 to the 
amendment in the nature of a substitute to add an additional 
title providing for non-competitive geothermal leases when a 
geothermal discovery is made adjacent to federal lands, which 
was agreed to by a roll call vote of 26 yeas and 19 nays, as 
follows:

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    Rep. Tom McClintock (R-CA) offered an amendment.105 to the 
amendment in the nature of a substitute to strike section 238, 
which was not agreed to by a roll call vote of 21 yeas and 24 
nays, as follows:

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    Rep. Frank Pallone, Jr. (D-NJ) offered an amendment.049 to 
the amendment in the nature of a substitute to institute a 
moratorium on all new leasing on the OCS in the event of 
another spill of greater than 5,000 barrels of oil, which was 
withdrawn.
    Rep. Pallone offered a further amendment.051 to the 
amendment in the nature of a substitute to prohibit oil and gas 
leasing in certain areas of the OCS, which was withdrawn.
    Rep. Robert Wittman (R-VA) offered an en bloc amendment.047 
and .109 to the amendment in the nature of a substitute to 
address impacts of the Gulf oil spill on the fishing and 
seafood industries, and to expedite offshore wind development 
off the coast of Virginia, which was withdrawn.
    Rep. Wittman offered a further amendment.106 to the 
amendment in the nature of a substitute to strike section 704, 
which was not agreed to by a roll call vote of 21 yeas and 26 
nays, as follows:

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    Rep. Inslee offered an amendment.135 to the amendment in 
the nature of a substitute to delay the implementation of 
competitive leasing requirements for renewable energy sources 
until those sources become cost-competitive with non-
renewables, which was withdrawn.
    Rep. Doug Lamborn (R-CO) offered an amendment.061 to the 
amendment in the nature of a substitute to amend section 231, 
which was agreed to (as modified) by voice vote.
    Rep. Wittman offered an amendment.043 to the amendment in 
the nature of a substitute to require an Environmental Impact 
Statement and seismic study for Virginia Lease Sale 220 no 
later than one year after enactment, which was not agreed to by 
voice vote.
    Rep. Cynthia Lummis (R-WY) offered an amendment.007 to the 
amendment in the nature of a substitute to apply new ethics 
requirements described in section 104 to all employees of the 
Department of the Interior, which was agreed to by voice vote.
    Rep. Lummis offered a further amendment.020 to the 
amendment in the nature of a substitute to reallocate 40% of 
the appropriations under the Land and Water Conservation Fund 
for state purposes, which was withdrawn.
    Rep. Lummis offered a further amendment.021 to the 
amendment in the nature of a substitute to amend Title VII to 
impose additional public-right-to-know requirements, which was 
agreed to by voice vote.
    Rep. Lummis offered a further amendment.111 to the 
amendment in the nature of a substitute to strike Title II, 
Subtitle B, which was not agreed to by a roll call vote of 20 
yeas and 28 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Hastings offered an amendment.117 to the amendment in 
the nature of a substitute to remove ``hydropower'' from the 
definition of ``renewable energy resources,'' which was agreed 
to by voice vote.
    Rep. Hastings offered a further amendment.122 to the 
amendment in the nature of a substitute to require timely 
responses to state requests for activities related to oil 
spills of national significance, which was agreed to (as 
modified) by voice vote.
    Rep. Cassidy offered an amendment.006 to section 702 of the 
amendment in the nature of a substitute to provide for federal 
and state revenue sharing, which was not agreed to by a roll 
call vote of 18 yeas and 30 nays, as follows:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Cassidy offered a further amendment.032 to the 
amendment in the nature of a substitute to terminate the 
Secretary of the Interior's July 12, 2010 moratorium of 
offshore drilling activities on the OCS, and prohibit future 
moratoria, which was not agreed to by a roll call vote of 22 
yeas and 26 nays, as follows:

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    Rep. Cassidy offered a further amendment.115 to the 
amendment in the nature of a substitute to delay the effective 
date of the bill's provisions until certification that they 
will not have certain economic impacts, which was not agreed to 
by a roll call vote of 21 yeas and 27 nays, as follows:

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    The amendment in the nature of a substitute, as amended, 
was then agreed to by voice vote. The bill, as amended, was 
then favorably reported to the House of Representatives by a 
roll call vote of 27 yeas and 21 nays, as follows:

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                      Section-by-Section Analysis


Sec. 1. Short title

    Section 1 provides that this Act may be cited as the 
``Consolidated Land, Energy, and Aquatic Resources Act of 
2010.''

Sec. 2. Definitions

    Section 2 provides definitions for key terms used in this 
Act.

      TITLE I--CREATION OF NEW DEPARTMENT OF THE INTERIOR AGENCIES


Sec. 101. Bureau of Energy and Resource Management

    Section 101 establishes within the Department of the 
Interior a Bureau of Energy and Resource Management (BERM), 
with a mandate to manage the leasing and permitting for 
renewable energy, non-renewable energy, and mineral resources 
on all onshore and offshore federal lands in the United States; 
however, leasing on Indian lands would not be handled by BERM. 
The BERM Director is to be appointed by the President and 
subject to Senate confirmation. Subsection (d) provides 
additional authority and direction to the Secretary of the 
Interior (Secretary) for conducting studies and collecting data 
that are necessary to fulfill the Secretary's environmental 
responsibilities under the Outer Continental Shelf Lands Act; a 
separate office within BERM is to be responsible for managing 
the Bureau's environmental studies and analysis activities.
    Under subsection (e), the Bureau of Land Management and the 
U.S. Forest Service retain their authorities as the multiple-
use managers of lands under their jurisdiction. The Committee 
believes this language clearly indicates that there is to be no 
reduction in the authority of the Forest Service and the Bureau 
of Land Management to manage the lands under their respective 
jurisdictions as a result of the creation of BERM. The 
Committee intends for the Forest Service and the Bureau of Land 
Management to identify lands through the land use planning 
process that are appropriate for energy and mineral 
development, establish best management practices for energy 
development on their lands, review surface land use plans and 
inspect areas of operation to ensure that operations are being 
conducted in compliance with those plans and best management 
practices, establish and enforce financial assurance and 
reclamation requirements, determine and enforce conditions for 
surface occupancy, establish stipulations for leases and 
authorize or reject any requested modifications to those 
stipulations, and do all other necessary activities to ensure 
that energy development on their managed lands is accomplished 
in a manner that is protective of natural ecosystems and the 
human environment. The Committee does not intend for BERM to be 
able to lease any lands for energy exploration or development 
over the objections of the appropriate land management agency, 
and believes the language of section 101 makes this clear.
    Having one agency in charge of land management and another 
responsible for leasing describes the current situation on 
Forest Service lands, on which the Bureau of Land Management 
acts as the leasing agent. Although the Committee does not 
believe that BLM's management of oil and gas leasing has been 
exemplary, whether on Forest Service lands or its own, the 
current system does provide a parallel that illustrates how the 
Committee intends the BERM-BLM and BERM-Forest Service 
interaction to function.

Sec. 102. Bureau of Safety and Environmental Enforcement

    Section 102 establishes within the Department of the 
Interior a Bureau of Safety and Environmental Enforcement 
(BSEE), with a mandate to carry out all the safety and 
environmental regulatory activities, including inspections, on 
all onshore and offshore federal lands in the United States. 
The BSEE Director is to be appointed by the President and 
subject to Senate confirmation. Subsection (d) gives BSEE the 
following responsibilities: oversight of BERM's OCS National 
Environmental Policy Act (NEPA) reviews; suspension or 
cancellation of leases in the event that activities under those 
leases threatens health or the environment; development of 
health, safety, and environmental regulations for operations on 
onshore and offshore federal lands, including mandatory Safety 
and Environmental Management programs; conducting 
investigations; and implementing the new Offshore Technology 
Research and Risk Assessment Program established under Section 
211 of this Act. Subsection (e) requires that BSEE inspectors 
be highly qualified and well-trained, and establishes a 
National Oil and Gas Health and Safety Academy for training the 
national oil and gas inspector workforce. Subsection (e) also 
allows the Secretary to work with educational institutions and 
the oil and gas industry to create appropriate training and 
continuing education programs outside the Academy.
    The Committee has for years been receiving reports about 
inadequacies in the Department of the Interior's Oil and Gas 
Inspection program. A June 2005 report (GAO-05-418, ``Increased 
Permitting Activity Has Lessened BLM's Ability to Meet Its 
Environmental Protection Responsibilities'') indicated that 
increases in permit workload were preventing BLM from meeting 
its environmental inspection requirements. In testimony before 
the Subcommittee on Energy and Mineral Resources in March, 2008 
(GAO-08-560T, ``Data Management Problems and Reliance on Self-
Reported Data for Compliance Efforts Put MMS Royalty 
Collections at Risk''), GAO reported that neither BLM nor MMS 
were meeting inspection targets. And a GAO report issued in 
March, 2010 (GAO-10-313, ``Oil and Gas Management: Interior's 
Oil and Gas Production Verification Efforts Do Not Provide 
Reasonable Assurance of Accurate Measurement of Production 
Volume'') detailed difficulties that the Department of the 
Interior faces ``in hiring, retaining, and training staff in 
key oil and gas oversight positions'', as well as problems with 
inconsistent inspection policies between BLM and MMS.
    The Committee believes that combining the onshore and 
offshore inspection forces and establishing an academy to train 
both will be a major step towards addressing many of these 
problems. The Academy will ensure that new inspectors are fully 
trained and that experienced inspectors are kept up-to-date 
with the latest technologies and procedures; it will also 
ensure that onshore and offshore inspections are conducted 
using standardized procedures. The Committee believes that a 
combined inspection force would allow for greater 
specialization of inspectors, and could also result in 
decreased turnover by providing additional opportunities for 
inspectors to transfer between work locations.

Sec. 103. Office of Natural Resources Revenue

    Section 103 establishes within the Department of the 
Interior an Office of Natural Resources Revenue (ONRR), which 
would be responsible for collecting and disbursing all 
royalties and other revenues from energy and mineral related 
activities on onshore and offshore federal lands, auditing such 
collections, and promulgating regulations relevant to revenue 
collection and management. Subsection (d) creates an 
independent program within ONRR to carry out auditing and 
oversight of revenue collection. The ONRR is to be headed by a 
Director appointed by the President and subject to Senate 
confirmation.

Sec. 104. Ethics

    Section 104 requires that the Secretary of the Interior 
certify that all Department of the Interior employees that 
interact with oil and gas companies are in full compliance with 
all federal employee ethics laws and regulations, as well as 
supplemental guidance that would be issued by the Secretary.

Sec. 105. References

    Section 105 provides that all references to functions that 
previously existed in the Minerals Management Service or in the 
Bureau of Land Management energy program are transferred to the 
appropriate new entities created in this Act.

Sec. 106. Abolishment of Minerals Management Service

    Section 106 formally abolishes the Minerals Management 
Service (MMS), and ensures that all completed administrative 
proceedings, pending administrative proceedings, and pending 
civil actions related to MMS are not affected by this 
abolishment.

Sec. 107. Conforming amendment

    Section 107 adds the titles of the heads of the new 
agencies to the appropriate pay scale section of the U.S. Code.

Sec. 108. Outer Continental Shelf safety and environmental advisory 
        board

    Section 108 creates a new safety and advisory board under 
the Federal Advisory Committee Act. This board would be 
composed of a balance of industry and non-industry members, and 
tasked with providing to the Secretary advice on safety and 
environmental issues surrounding energy and mineral development 
issues on the Outer Continental Shelf.

               TITLE II--FEDERAL OIL AND GAS DEVELOPMENT


 Subtitle A--Safety, Environmental, and Financial Reform of the Outer 
                      Continental Shelf Lands Act


Sec. 201. Short title

    Section 201 provides that this subtitle may be cited as the 
``Outer Continental Shelf Lands Act Amendments of 2010.''

Sec. 202. Definitions

    Section 202 amends the Outer Continental Shelf Lands Act 
(OCSLA) to add a definition for ``safety case''. A safety case 
is defined as a body of evidence that provides a basis for 
determining whether a system is adequately safe for a given 
application in a given operating environment, and requirements 
for its use in offshore drilling operations have been adopted 
by a number of countries around the world, including Norway and 
the United Kingdom.

Sec. 203. National policy for the Outer Continental Shelf

    Section 203 amends Section 3 of the OCSLA to require a more 
balanced approach to energy development that acknowledges the 
other resources of the OCS, and to emphasize that energy-
related activities should be conducted in a matter that 
minimizes impacts to the marine, coastal, and human 
environments.

Sec. 204. Jurisdiction of laws on the Outer Continental Shelf

    Section 204 amends Section 4 of the OCSLA to ensure that 
the laws of the United States also apply to renewable energy 
facilities on the OCS. Currently, the language of Section 
4(a)(1) of the OCSLA could be interpreted to extend the laws of 
the United States only to offshore installations that are 
installed for the purpose of oil, natural gas, or other mineral 
exploration, development, and production. This is due to the 
specific way that the terms ``exploration'', ``development'', 
and ``production'' are defined in the OCSLA to refer to 
minerals.
    Legislative history makes it amply clear that previous 
Congresses intended the language of Section 4 to apply broadly. 
The conference report for the OCSLA Amendments of 1978 changed 
the language of Section 4 from ``fixed structures'' to ``all 
installations and other devices permanently or temporarily 
attached to the seabed'' in order to clarify what the conferees 
stated was the original intent of the OCSLA: that ``Federal law 
is to be applicable to all activities on all devices in contact 
with the seabed for exploration, development, and production.'' 
The Committee believes that the operative part of that phrase 
is, ``to all activities on all devices in contact with the 
seabed,'' and that federal law should apply to renewable energy 
facilities, such as windmills or hydrokinetic devices, which 
are attached to the seabed. However, because neither Section 4 
nor the definitions of ``exploration'', ``development'', and 
``production'' were amended in 2005 to reflect the concurrent 
expansion of the OCSLA to cover renewable energy development, 
the current text of Section 4 can be read to imply that federal 
laws do not apply to non-mineral facilities that are attached 
to the seabed. The Committee rejects this implication, and the 
amendments to Section 4 are designed to ensure that federal law 
applies to renewable energy facilities sited on the Outer 
Continental Shelf.

Sec. 205. Outer Continental Shelf Leasing Standard

    Section 205 amends Section 5 of the OCSLA to clarify the 
authority of the Secretary to issue regulations related to 
operational safety and environmental protection on the OCS, and 
would require the Secretary to issue regulations mandating: 
independent third-party certification of crucial pieces of 
safety equipment (such as blowout preventers); new requirements 
for subsea testing and secondary activation of blowout 
preventers; independent third-party certification of the well 
casing and cementing procedures; adoption of safety and 
environmental management systems by operators on the OCS; and 
compliance with other environmental and natural resource 
conservation laws. The Secretary would also be required to 
consult with the Secretary of Commerce on any regulation that 
may affect the marine or coastal environment. This section 
would also require that the Secretary provide to the public, 
free of charge, any documents incorporated by reference into 
any OCS-related regulations.

Sec. 206. Leases, easements, and rights-of-way

    Section 206 amends Section 8 of the OCSLA by adding three 
new subsections related to royalties and financial assurances. 
New subsection 8(q) requires the Secretary to conduct a bonding 
study at least once every five years to determine if financial 
assurance levels are adequate for operations on the OCS. New 
subsection 8(r) requires the Secretary to conduct a fiscal 
system review at least once every three years that would 
outline in-place royalty and rental rates and indicate whether 
the Secretary intended to modify those rates. New subsection 
8(s) requires the Secretary to conduct a comparative fiscal 
review at least once every five years, to assess the overall 
oil and gas fiscal system of the United States and compare it 
to systems in place in other countries.
    Subsection (b) of Section 206 forbids companies from 
obtaining new leases or permits to drill unless the Secretary 
can certify that the company is meeting safety and 
environmental requirements on its existing leases, does not 
have outstanding obligations under the Oil Pollution Act of 
1990, and over the preceding seven years: has not had an 
excessive rate of violations of the Occupational Health and 
Safety Act; has not been convicted of a criminal violation for 
a fatality or serious bodily injury in connection with oil-
related activities; did not have more than 10 fatalities as a 
result of violating health, safety, or environmental laws; and 
was not assessed over $10 million in fines under the Clean 
Water Act or the Clean Air Act.
    Subsection (c) amends the alternative energy leasing 
subsection of OCSLA (43 U.S.C. 1337(p)) to delete ambiguous 
language that could be interpreted to allow non-energy 
development under the Secretary's offshore alternative energy 
leasing authority. The section also provides for non-
competitive authorizations if an applicant were seeking to 
carry out short-term meteorological or marine testing.
    The Committee believes that deletion of the reference to 
``other applicable law'' in Section 8(p) of the OSCLA helps to 
clarify that the intent of Congress in originally enacting 
Section 8(p) was that the Department of the Interior would have 
exclusive jurisdiction with regard to the production, 
transportation, or transmission of energy from non-hydrokinetic 
(such as wind or solar) and hydrokinetic (such as tidal, wave, 
or current) renewable energy projects on the Outer Continental 
Shelf. However, including the phrase ``other applicable law'' 
created some confusion as to which laws were, in fact, 
applicable on the OCS, leading to a situation where the process 
for siting and licensing non-hydrokinetic projects and 
hydrokinetic projects is different. This creates the potential 
for considerable amounts of confusion in the future, 
particularly if hybrid projects that combine non-hydrokinetic 
and hydrokinetic technologies are proposed.
    The Committee further believes that the language of 
Presidential Proclamation Number 5928, issued on December 27, 
1988, which extended the territorial sea of the United States 
to 12 nautical miles from the baseline, is unambiguous when it 
states that, ``[n]othing in this Proclamation . . . extends or 
otherwise alters existing Federal or State law or any 
jurisdiction, rights, legal interest, or obligations derived 
therefrom . . .''. Such language makes it clear that the 
jurisdiction of laws in existence prior to the Proclamation 
were not extended outwards beyond the prior 3-mile territorial 
sea. As such, the Federal Power Act does not apply on the Outer 
Continental Shelf. Although the Committee believes that 
removing ``other applicable law'' is unnecessary, as the 
Federal Power Act is not an applicable law on the OCS, the 
Committee also believes that this small change makes the 
original Congressional intent clear.
    Subsection (d) requires the Secretary to request a review 
by the Secretary of Commerce of any proposed lease sale. 
Subsection (e) eliminates the authority of the Secretary to 
lease a tract greater than 5,760 acres. Subsection (g) 
prohibits the issuance of leases if the Secretary determines 
that such leases would likely result in harm to life, property, 
or the marine, coastal, or human environments.

Sec. 207. Disposition of revenues

    Section 207 amends Section 9 of the OCSLA to provide for 
yearly mandatory funding of $900 million for the Land and Water 
Conservation Fund, $150 million for the Historic Preservation 
Fund, and 10% of total offshore revenues for a new Ocean 
Resources Conservation and Assistance (ORCA) Fund, as created 
by Section 605 of this Act.

Sec. 208. Exploration plans

    Section 208 amends Section 11 of the OCSLA to strengthen 
and create new requirements for exploration plans and eliminate 
the 30-day deadline for approval of those plans. Exploration 
plans would be required to include blowout scenarios with 
estimated timelines for drilling a potential relief well, and 
an analysis of the impact of a worst-case-scenario discharge 
from drilling. Categorical exclusions would no longer be 
allowed for approving plans, and plans and permits could only 
be approved if the applicant will be using best-available 
technology for drilling the well and responding to spills, and 
has demonstrated capability and technology to respond 
immediately to a worst-case-scenario oil spill.
    The Committee intends for worst-case-scenarios to be far 
more realistic and robust than they have been in the past. As 
illustrated by the Deepwater Horizon incident, simply stating 
that a potential worst-case blowout could lead to several 
hundred thousand barrels of oil per day being released for 30 
days may not remotely address the actual complexity of a real-
world incident. A failure of imagination leading up to the 
Deepwater Horizon explosion resulted in a number of response 
strategies that were developed on-the-fly which were inadequate 
to deal with the reality of the situation. The Committee 
believes that it is incumbent upon all offshore operators to 
truly prepare for the worst potential scenario prior to 
drilling a well, and that any plan to deal with such a scenario 
should factor in: the maximum potential time that a blowout 
could continue; the water depth of the well site and the 
ability of response equipment to operate at that depth; the 
potential for inclement weather, such as hurricanes, to 
complicate response activities; potential instability of the 
seafloor at the well site; methane hydrate formation; 
contingency planning for the failure of early attempts to stop 
the blowout; the possibility of debris around the well site 
preventing access to the well or to well control equipment; and 
any other eventuality that could complicate efforts to stop the 
blowout and recover the released oil. The Department should 
provide guidance in this process to ensure that such scenarios 
are truly worst-case, and pursuant to provisions in this 
section and in other parts of this bill, require that the 
operator's oil spill response plan is adequate to prevent 
excessive damage to the marine, coastal, and human environments 
in the event these scenarios come to pass.
    Subsection (d) mandates a full engineering review of the 
well design and the existence of a safety and environmental 
management plan before a drilling permit can be issued. New 
subsection 11(j) provides additional authority for the 
disapproval of a plan if the exploration activities would 
probably cause damage to the marine, coastal, or human 
environments.

Sec. 209. Outer Continental Shelf Leasing program

    Section 209 amends Section 18 of the OCSLA to provide for 
additional consideration of environmental factors in the 
preparation of 5-year leasing plans. This section also requires 
consultation with the Secretary of Commerce during the 
preparation of those plans. In addition, a new subsection 18(i) 
is added, which establishes a research and development program 
designed to improve the ability to estimate oil and gas 
resources and address gaps in environmental data on the OCS.

Sec. 210. Environmental studies

    Section 210 amends Section 20 of the OCSLA to require 
environmental studies, in cooperation with the Secretary of 
Commerce, at least once every three years of OCS areas where 
oil and gas lease sales are scheduled. Subsection (b) directs 
the Secretary to conduct research on the impacts of deepwater 
oil spills and the use of dispersants.

Sec. 211. Safety regulations

    Section 211 amends Section 21 of the OCSLA to require more 
frequent studies by the Secretaries of Interior and Homeland 
Security on the adequacy of health and safety regulations 
relevant to operations on the OCS. This section also broadens 
the requirement to use best available and safest technologies, 
and requires the Secretary to publish lists of the best 
available technologies for key areas of well design and 
operation, including blowout preventers and oil spill response 
technologies.
    New subsection 21(g) mandates regulations requiring all 
operators to have safety cases before they can receive new 
permits to drill, and mandates reviews of the effectiveness of 
safety case regulations. The Committee believes that the 
regulations promulgated by the Secretary under this subsection 
should require that safety cases, at a minimum: provide 
assurance of compliance with all applicable legal and 
regulatory requirements; document the commitment of the 
operator to be prudent in protecting safety, health, and the 
environment and to maintain a proactive culture dedicated to 
protecting safety, health, and the environment; document the 
operator's competency to protect safety, health, and the 
environment; document the operator's analysis of any risk to 
safety, health, and the environment and procedures and systems 
to minimize such risks for each phase of an operation; 
incorporate international industry best practices, and be 
periodically improved as necessary to maintain such practices; 
provide for the active and continuous monitoring of the 
operation for potential risks to safety, health, and the 
environment; be updated as necessary to account for changes in 
the operation, equipment, staffing levels, staffing 
competencies, or other factors that may change overall risk; 
demonstrate that the workforce meaningfully participates in the 
development, revision, and review of the safety case; 
demonstrate that the workforce is trained to be knowledgeable 
about the risks and procedures to minimize such risks of each 
distinct work task, and that their training is updated as 
needed and the training efficacy is ascertained; and 
demonstrate that emergency plans and arrangements are in place 
to provide effective response to all reasonably foreseeable 
emergencies. The Committee also encourages the Secretary to 
include in such regulations provisions that would make 
submitted safety cases available to the public for a comment 
period prior to final approval, provided that proprietary 
information is protected; and provisions that require reporting 
to the Secretary of any incident or change in conditions that 
was not foreseen in, and that affects the basis for, the safety 
case.
    New subsection 21(h) creates an Offshore Technology 
Research and Risk Assessment Program designed to research and 
assess industry trends, new drilling technologies, and oil 
spill response technologies, among other topics.

Sec. 212. Enforcement of safety and environmental regulations

    Section 212 amends Section 22 of the OCSLA to require 
monthly inspections of drilling rigs, more frequent 
investigations of safety-related incidents on the OCS, 
investigations of all allegations brought by employees of 
operators or contractors, and certifications from operators, 
operators' Chief Executive Officers, and independent third 
parties regarding compliance with safety and other regulations. 
Audits of safety cases and safety and environmental management 
plans are further authorized.

Sec. 213. Judicial review

    Section 213 extends the timeframe for filing petitions 
against Secretarial actions pursuant to the OCSLA.

Sec. 214. Remedies and penalties

    Section 214 amends Section 24 of the OCSLA to increase 
civil penalties from $20,000 per day to $75,000 or $150,000 per 
day, depending on the violation. Subsection (b) raises the 
maximum criminal fine under the Act from $100,000 to 
$10,000,000.

Sec. 215. Uniform planning for Outer Continental Shelf

    Section 215 amends Section 25 of the OCSLA to strengthen 
and create new requirements for development and production 
plans, and to ensure that such requirements extend to all areas 
of the OCS (whereas in existing law the Gulf of Mexico is 
exempt). As with exploration plans, this section requires 
development and production plans to include blowout scenarios 
with estimated timelines for drilling a potential relief well, 
and an analysis of the impact of a worst-case-scenario 
discharge from drilling. Approval of plans through categorical 
exclusions is no longer allowed. This section also requires 
applicants to provide a comprehensive survey of the marine and 
coastal environment within their proposed area of operations, 
and to use production platforms as observation stations for 
collecting data for the Integrated Coastal and Ocean Observing 
System. This section further provides that development and 
production plans shall not be approved unless the applicant has 
the demonstrated ability to effectively remediate a worst-case 
release of oil from activities conducted under the plan.

Sec. 216. Oil and gas information program

    Section 216 amends Section 26 of the OCSLA to require 
lessees to provide additional data on drilling operations to 
the Secretary, and to provide such in electronic format in 
real-time, or as quickly as possible if real-time is not 
feasible. This section also deletes provisions requiring the 
government to pay for data reproduction costs.

Sec. 217. Limitation on Royalty-in-Kind program

    Section 217 amends Section 27 of the OCSLA to eliminate the 
authority for the Secretary of the Interior to conduct a 
regular royalty-in-kind (RIK) program for offshore leases. The 
Committee has been concerned for years about the aggressive 
expansion of the RIK program during the Bush Administration. 
The Committee has long viewed the marketing of oil and natural 
gas as an inherently private sector function, and multiple GAO 
reports have found that the financial benefits of the RIK 
program are uncertain at best. The Committee's worst fears were 
realized with the release of the DOI Inspector General's report 
in September 2008, which detailed serious ethical problems in 
the RIK office. The Committee, in one sense, agrees with the 
RIK marketers who argued that socializing with the industry was 
a necessary part of being an effective marketer, because it 
highlights the fact that this is a business the government 
should not be directly involved in. While the Committee 
strongly approves of the current Administration's decision to 
end the RIK program--a decision that was announced during a 
Committee hearing in September 2009--there is still the concern 
that future administrations could attempt to revive this deeply 
flawed program. Section 217 eliminates that possibility, 
although the intent of the language is not to completely 
eliminate the authority of the Secretary to take royalties in 
kind when necessary. The Committee simply wishes to ensure that 
such authority is exercised sparingly, if at all.

Sec. 218. Restrictions on employment

    Section 218 strengthens ``revolving door'' prohibitions on 
employees of the Department of the Interior who carry out 
duties under the OCSLA, by broadening the scope of prohibited 
activities and adding a 2-year ban on accepting employment with 
certain companies. This section further adds new recusal 
requirements and provides stricter penalties for violations.

Sec. 219. Repeal of royalty relief provisions

    Section 219 repeals the shallow-water-deep-gas, deep-water, 
and Alaskan OCS royalty relief provisions that were enacted in 
the Energy Policy Act of 2005 (EPAct) (P.L. 109-58).

Sec. 220. Manning and buy- and build-american requirements

    Section 220 amends Section 30 of the OCSLA to clarify that 
U.S. immigration laws apply to facilities on the OCS, and add 
an ``intention of Congress'' section stating that energy 
development activities on the OCS should be conducted in a way 
so as to support domestic industry and jobs.

Sec. 221. National Commission on Outer Continental Shelf Oil spill 
        prevention

    This section establishes a 10-member bipartisan Commission 
in the legislative branch to investigate the Deepwater Horizon 
incident, and to make recommendations on how to prevent similar 
incidents in the future.

Subtitle B--Safety, Environmental, and Financial Reform of the Federal 
                  Onshore Oil and Gas Leasing Program


Sec. 231. Diligent development

    Section 231 requires the Secretary of the Interior to 
promulgate new regulations that would define ``diligent 
development,'' to ensure that the public can be confident that 
federal oil and gas leases are being diligently developed and 
not held for speculative purposes. This section provides that 
such rules shall require all new onshore and offshore oil and 
gas leases to meet certain benchmarks during the primary term 
of a lease in order to show that energy development is being 
responsibly pursued. The regulations shall provide for 
extension of those benchmarks in situations where diligent 
development is not possible due to environmental or other 
restrictions beyond a lessee's control. As amended, this 
section assures suspension of lease terms during the periods 
when protests to leases or permits to drill are being resolved.
    The Committee has received numerous reports and extensive 
testimony underscoring the need to improve diligent development 
requirements. Both the Inspector General of the Department of 
the Interior and the Government Accountability Office have 
recommended in testimony before the Committee on Natural 
Resources and the Subcommittee on Energy and Minerals that the 
Interior Department develop a strategy to encourage faster and 
diligent development of oil and gas leases on federal lands 
(March 17, 2009, September 16, 2009).
    A February 2009 report by the Office of the Inspector 
General of the Department of the Interior (``Oil and Gas 
Production on Federal Leases: No Simple Answer,'' C-EV-MOA-
0009-2008) determined that ``the Department [of the Interior] 
has done little to provide specific guidance to lessees on the 
`due diligence' production requirements.'' The Government 
Accountability Office (GAO) similarly concluded in 2008 that 
neither MMS or BLM has precisely defined the activities or time 
frames that constitute reasonable diligence in the development 
and production of oil and gas on federal leases (GAO-09-74; 
``Oil and Gas Leasing: Interior Could Do More to Encourage 
Diligent Development''). GAO's review of data on 55,000 
offshore and onshore federal leases issued from 1987 through 
1996--those that have exceed their primary 10 year lease term--
found that development occurred only on about 26% of offshore 
and 6% of onshore leases.

Sec. 232. Reporting requirements

    Section 232 requires lessees to report twice a year on the 
steps that are being taken to develop each of their non-
producing leases. This information will be put into an 
electronic searchable database available to the public. 
Currently, according to the Department of the Interior's 
Inspector General (OIG Evaluation C-EV-MOA-0009-2008, ``Oil and 
Gas Production on Federal Leases: No Simple Answer,'' February 
2009) the Department does not know exactly what is occurring on 
non-producing leases.

Sec. 233. Notice requirements

    Section 233 requires the Secretary of the Interior to 
notify surface land owners and holders of commercial use 
permits (such as outdoor recreation companies and hosts of 
annual events on public lands) when oil and gas leases are 
offered on lands which would affect their property or permits--
in addition to the general public as currently required under 
the Mineral Leasing Act.
    Approximately 58 million acres of federal minerals underlie 
privately-owned surface in the United States, and there are 
roughly 3,500 holders of commercial, competitive use, and 
special event permits, according to BLM's ``Public Land 
Statistics 2010.'' In 2006, pursuant to Section 1835 of the 
Energy Policy Act of 2005, BLM reviewed the effects of federal 
subsurface oil and gas policies on surface owners. This ``Split 
Estate Report to Congress'' acknowledged ``a need to further 
inform surface owners and operators of their rights and 
responsibilities regarding Federal leasing and oil and gas 
operations on split estate lands'' as well as noting the desire 
of surface owners to be notified at key points in the land use 
planning process. In response, BLM issued IM No. 2007-165 which 
directed State and Field Offices to ``increase outreach to 
media and surface owner groups in land use planning processes, 
to increase media notification to inform public of the 
availability of leasing information when there is a lease sale 
planned, and to do more public outreach after the lease sale.'' 
However, there is still a need for specific statutory 
requirements regarding notice to split estate surface owners--
for example, notice prior to leasing.
    The Committee expects that this section will address this 
issue, but notes that notice is only part of the problem facing 
some surface owners in split estate situations. The Committee 
urges the Secretary to develop additional protections for 
private property owners who do not own the oil and gas below 
their land, including strengthened rights and abilities to 
negotiate surface use agreements with operators, reclamation 
requirements, and assurances of compensation for damages.

Sec. 234. Oil and gas leasing system

    Section 234 amends Section 17 of the Mineral Leasing Act 
(30 U.S.C. 181 et seq.) to assure receipt of fair market value 
for lands leased for oil and gas, including requirements for 
sealed bids rather than oral auctions of leases, elimination of 
non-competitive leasing, and issuance of leases to bidders 
whose bid is equal to or higher than a national minimum 
acceptable bid, based on evaluation of the value of the lands 
proposed for lease.
    The Committee notes that Section 234 will make the onshore 
process of offering leases for bid similar to the proven 
offshore process, to provide a more fair return to the 
government. For offshore leases, companies submit written 
sealed bids to the Minerals Management Service's Office of 
Energy and Minerals Management (OEEM), and the OEEM compares 
those bids to its own independent assessment of the value of 
the potential oil and gas in each lease; the bidder that 
submits the highest bonus bid that exceeds MMS' estimate of 
fair market value of a lease is awarded the lease. Currently, 
BLM relies exclusively on competitors, participating in an oral 
auction, to determine the leases' market value. If few bidders 
are present, there is potential for the bidding process to 
undervalue the lease. In 2009 testimony, the GAO noted that MMS 
has found that, since 1995, the offshore process of rejecting 
low bids and reoffering those leases at a later sale has 
resulted in an overall increase in bonus receipts of $373 
million between 1997 and 2006 (GAO-09-1014T). Furthermore, 
unlike BLM, MMS does not offer noncompetitively those leases 
that receive no bids, while BLM issued about 10% of oil and gas 
leases noncompetitively in FY 2009. This section also gives 
Secretary 90 days to issue the lease rather than 60 as 
currently required by the Mineral Leasing Act, to allow 
additional time for the agency to review the bids for adequacy 
against fair market valuation of the lease, as this section 
would require. While BLM does not currently have the expertise 
that MMS does to appropriately value lease tracts based on 
geologic factors, this Act's creation of a single entity, the 
BERM, to handle onshore and offshore leasing will provide 
access to that expertise for valuing onshore lease tracts.
    Section 234 also directs the Secretary to hold a minimum of 
three lease sales per state per year, rather than the current 
requirement of four. This change will allow additional time for 
agency review of parcels proposed for lease sales, consistent 
with the conclusions of the report to Secretary Salazar by 
Deputy Secretary of the Interior David Hayes (``Final BLM 
Review of 77 Oil and Gas Lease Parcels Offered in BLM-Utah's 
December 2008 Lease Sale,'' October 2009). The Committee 
concurs with that report's determination that leasing decisions 
would benefit from better coordination at the federal and state 
level and the use of interdisciplinary teams for all proposed 
lease sales to reduce conflicts, errors, and protests. The 
Committee also believes that the scaled-back minimum lease sale 
requirement will also allow field offices more time to balance 
leasing with their non-leasing work; see, for example, ``Oil 
and Gas Development: Increased Permitting Activity Has Lessened 
BLM's Ability to Meet Its Environmental Protection 
Responsibilities,'' GAO-05-418, June 2005.
    Section 234 further raises the national minimum acceptable 
bid from $2 per acre to $2.50 per acre and raises rentals from 
the current structure of $1.50/acre for the first five years 
and $2/acre for the remaining years to $2.50/acre for the first 
five years and $3/acre for the remaining years on future 
leases. Such rates have been unchanged for over 20 years. The 
Secretary is given explicit authority to increase rental rates 
if necessary to enhance financial returns to the United States 
and to promote more efficient management of oil and gas 
resources on federal lands. Recent reports by the IG and the 
GAO emphasize that increased rental rates can encourage 
diligent development and a fair return to taxpayer. See, for 
example, ``Oil and Gas Royalties: The Federal System for 
Collecting Oil and Gas Revenues Needs Comprehensive 
Reassessment,'' GAO-08-691, September 3, 2008.

Sec. 235. Electronic reporting

    Section 235 authorizes the Secretary to inform 
Congressional committees of large pipeline right-of-way 
applications and proposed lease reinstatements electronically 
instead of through a paper copy, if the committee requests, 
saving the federal government paper and postage costs.

Sec. 236. Best management practices

    Section 236 requires oil and gas operators on federal lands 
to adhere to best management practices (BMPs), with site-
specific adjustments allowed to account for special 
circumstances. The Committee believes that, with appropriate 
flexibility, adherence to a required set of common-sense BMPs 
can result in reduced permit processing times, reduced numbers 
of conditions of approval for permits, reclamation cost savings 
for industry, and environmental benefits.

Sec. 237. Surface disturbance, reclamation

    Section 237 amends Section 18 of the Mineral Leasing Act to 
require the submission of interim and final reclamation plans 
along with each application for a permit to drill. Lessees who 
have not completed reclamation activities on existing leases no 
longer in production will be unable to obtain new leases.
    The Committee believes that this section fills the need for 
a clear statutory requirement for both interim and final 
reclamation plans before approval of a permit to drill to 
minimize permanent impacts on ecosystems and wildlife and 
encourage prompt restoration. Under current practice, BLM 
generally does not require interim reclamation in all permits 
it issues. Yet, typically interim reclamation can be started as 
soon as a well is drilled. For example, the size of the pad can 
be reduced to a few acres necessary to service the well, some 
roads can be removed, and drill fluids pit reclaimed. According 
to BLM, interim reclamation can reduce costs and increase 
effectiveness of final reclamation.
    Section 237 also requires the Secretary to require 
financial assurances adequate to ensure complete and timely 
reclamation of the lease tract and restoration of land and 
waters adversely affected by the lease can be undertaken if 
necessary. A March 2010 report by the Government Accountability 
Office (GAO-10-245, ``Oil and Gas Bonds: Bonding Requirements 
and BLM Expenditures to Reclaim Orphaned Wells'') found that 
the current reclamation and bond requirements have saddled 
taxpayers with $3.8 million in cleanup costs between 1988 and 
2009 for abandoned oil and gas wells, with at least 144 
additional sites still to be evaluated and addressed. Federal 
minimum required bond amounts were last established five 
decades ago, and are not based on the expected reclamation 
costs for a site. Instead, an operator can post a minimum bond 
of $10,000 for an individual lease, $25,000 to cover all the 
operator's leases in a state, or $150,000 to cover all leases 
nationwide. In contrast, federal bonding requirements for the 
extraction of other resources, such as coal, gold, silver, and 
copper, require operators to post bonds that cover the full 
estimated cost of reclamation.

Sec. 238. Wildlife sustainability

    Section 238 directs the Secretaries of the Interior and 
Agriculture to utilize the best available science to plan for 
and manage areas under their respective jurisdictions in order 
to maintain sustainable populations of native and desirable 
non-native species of plants and animals, consistent with the 
requirements of existing law. The Committee intends that this 
section provide an unambiguous directive and clear standards to 
both the BLM and the Forest Service that clarifies their role 
as wildlife stewards, in addition to other existing resource 
management responsibilities. The Committee believes this will 
facilitate greater landscape coordination in the management of 
wildlife populations among federal agencies and between the 
federal government, states, and other landowners.
    This section further provides that if conditions beyond 
each Secretary's control prevent sustainability, the Secretary 
concerned is required to protect the survival of the species 
and certify that management activities do not increase the 
likelihood of extirpation. The Secretaries would be required to 
establish monitoring programs using identified focal species to 
evaluate sustainability. Finally, this section requires 
extensive cooperation between federal and state governments and 
recognizes the vital role played by states in wildlife 
management.

Sec. 239. Online availability to the public of information relating to 
        oil and gas chemical use

    Section 239 requires the list of chemicals (as well as 
information about those chemicals) used in drilling or 
completing a well under any Federal Mineral Leasing Law to be 
posted online within 30 days after completion of drilling the 
well. Proprietary information is specifically exempted from 
disclosure. The Committee is not persuaded by arguments that 
state requirements for disclosure will adequately address the 
need for public disclosure of chemicals used in drilling on 
federal lands; only five states currently require disclosure of 
chemicals used in drilling and completing wells. Furthermore, 
the Committee believes that disclosure offers a means to 
demystify industry practices and reduce suspicion of the 
natural gas industry.

Sec. 240. Limitation on royalty-in-kind program

    Section 240 eliminates the authority of the Secretary to 
establish a regular program of taking royalties in kind from 
onshore leases. The rationale for this section is the same as 
that for Section 217, described above.

Sec. 241. Environmental review

    Section 241 repeals Section 390 of the Energy Policy Act of 
2005 (EPAct) (P.L. 109-58; 42 U.S.C. 15942), which established 
five statutory categorical exclusions for onshore oil and gas 
operations. Section 390 has allowed BLM and industry to bypass 
environmental reviews for thousands of oil and gas drilling 
permits across the West.
    Section 390 of EPAct allows BLM to use categorical 
exclusions under the National Environmental Policy Act of 1969 
for individual sites that involve surface disturbance of less 
than five acres; for a well at a location on which drilling has 
previously occurred within 5 years; for a well within a 
developed field that has an approved land use plan ``or any 
environmental document prepared pursuant to NEPA'' within the 
preceding 5 years; for a new pipeline in an approved right-of-
way corridor as long as the approval occurred within five years 
of construction of the pipeline; and for maintenance of a minor 
activity.
    Since 2007, the Committee has heard criticism and calls for 
repeal of Section 390. In a resolution approved Feb. 27, 2007, 
the Western Governors' Association called on Congress to remove 
the categorical exclusion language for exploration or 
development of oil and gas in wildlife corridors and crucial 
wildlife habitat on federal land. Governor Dave Freudenthal and 
sportsmen and conservationists in Wyoming warned that Section 
390 categorical exclusions do not adequately protect big game 
habitat and migration corridors, particularly in southwest 
Wyoming. Witnesses at full Committee and Subcommittee hearings 
in the 110th Congress (April 17, 2007, April 26, 2007) 
recommended repeal of Section 390 of EPACT 2005, asserting that 
without the blanket exemption for oil and gas activities on 
federal lands, BLM would be able to consider applications for 
``categorical exclusions'' from NEPA review, but all such 
applications would be subject to the ``extraordinary 
circumstances'' criteria of the Department of the Interior's 
NEPA rules. In other words, repeal of the provision would allow 
the BLM some discretion in applying a categorical exclusion to 
NEPA for oil and gas activities.
    In 2009, a report by the Government Accountability Office 
confirmed concerns that BLM's use of the Section 390 
categorical exclusions was frequently out of compliance, both 
with the law and with the agency's own guidelines. The study 
showed that categorical exclusions were used from 2006-2008 to 
approve approximately 6,100 of the 22,000 applications for 
drilling permits, or about a quarter of permits (``Energy 
Policy Act of 2005: Greater Clarity Needed to Address Concerns 
with Categorical Exclusions for Oil and Gas Development Under 
Section 390 of the Act,'' GAO-09-872, September 2009). Among 
those, the GAO review found numerous examples--in 85% of BLM 
field offices--where officials did not correctly follow the 
agency's guidelines, most often by failing to adequately 
justify the use of categorical exclusions. While some of the 
violations and noncompliance were acknowledged as technical in 
nature, the GAO found that ``others are more significant and 
may have thwarted NEPA's twin aims of ensuring that BLM and the 
public are fully informed of the environmental consequences of 
BLM's actions.''
    Although the Committee appreciates that categorical 
exclusions can offer efficiency gains, sometimes allowing 
faster permit processing, the Committee believes the record is 
clear that faster has not necessarily proven better in the case 
of special categorical exclusions. In 2010 the Department of 
the Interior under the leadership of Secretary Salazar reversed 
the way in which the agency applies Section 390, committing to 
no longer using categorical exclusions in cases involving 
``extraordinary circumstances;'' however, the Committee 
believes it is not appropriate to leave Section 390 open to 
reinterpretation by future administrations in light of the long 
record of the provision's failings.

Sec. 242. Federal lands uranium leasing

    Section 242 amends the Mineral Leasing Act to make uranium 
a leasable mineral, subject to rental and royalty rates. 
Currently, uranium is a ``locatable'' mineral under the 1872 
Mining Law; therefore, no royalties or other production fees 
are collected by the federal government. Two years are allowed 
to convert claims to leases, and revenues are dedicated to 
abandoned uranium mine cleanup and claims filed under the 
Radiation Exposure Compensation Program (42 U.S.C. Sec. 2210).
    The Committee believes that moving uranium to a leasing 
system will increase predictability as to where and when 
development occurs; past and current controversies about 
uranium mining around national treasures like the Grand Canyon 
underscore how ill-suited the 1872 Mining Law is to govern 
uranium development, given the lack of explicit authority of a 
land manager to disapprove a proposed hardrock mine on federal 
lands that threatens devastating harm to natural or cultural 
resources.
    The Committee notes that all other energy minerals or 
fuels--coal, oil and gas, tar sands, oil shale, and geothermal 
resources--are governed by leasing systems, most dating back to 
1920. The Committee also notes the Department of Energy already 
administers a productive leasing system for uranium on 25,000 
acres of federal lands in Colorado, pursuant to the Atomic 
Energy Act of 1954. This program was originally established 
specifically to ensure adequate supplies of uranium to meet the 
nation's defense needs. On the 31 leases in the DOE's Uranium 
Leasing Program (ULP), companies pay royalties ranging from 
7.57% to 36.2%.
    The Committee is not convinced by unsubstantiated industry 
claims that requiring the leasing of uranium will end uranium 
mining in the United States or jeopardize the nation's access 
to uranium. Uranium prices rebounded from lows of around $10 a 
pound in the 1980s to more than $100 per pound in 2008, and as 
of July 2010 about $41 a pound. Market projections are for 
growing demand for uranium worldwide to supply nuclear power 
plants--with accordant growth in prices, in turn stimulating 
uranium exploration and development. In just the past few 
years, significant increases in the uranium market price and 
demand have resulted in renewed interest in reopening mines in 
the U.S. that were closed or on standby. Meanwhile, the 
government faces an unfunded multi-billion dollar uranium mine 
and tailings cleanup problem on western lands, while giving 
away uranium on public land without royalty payment to the 
government.

           Subtitle C--Royalty Relief for American Consumers


Sec. 251. Short title

    Section 251 provides that this subtitle may be cited as the 
``Royalty Relief for American Consumers Act of 2010.''

Sec. 252. Eligibility for new leases and the transfer of leases

    Section 252 prohibits the issuance of new leases to any 
entity that holds a lease issued between January 1, 1996, and 
December 31, 2000, unless those leases are renegotiated such 
that royalties will be owed on them if the price of oil and 
natural gas is above a certain level.

Sec. 253. Price thresholds for royalty suspension provisions

    Section 253 requires the Secretary of the Interior to agree 
to amend any lease issued in 1996 through 2000 to ensure that 
royalties are paid on these leases if the price of oil and 
natural gas rises above a certain level. The section also 
establishes that existing lease terms, without price 
thresholds, would be effective through September 30, 2010.

                 TITLE III--OIL AND GAS ROYALTY REFORM


Sec. 301. Amendments to definitions

    Section 301 adds additional detail to the definition of 
``mineral leasing law'' in the Federal Oil and Gas Royalty 
Management Act of 1982, as amended (FOGRMA) (30 U.S.C. 1701 et 
seq.); clarifies the definition of ``designee'' under FOGRMA in 
order to allow the Secretary to correspond with a designee 
only, as opposed to having to contact each individual lessee 
(that has designated a designee) in writing as is required 
under current law; allows penalties to be assessed for permit 
violations as opposed to merely for lease violations as is the 
case in existing law; includes a definition of ``compliance 
review'' (increasingly used reviews of royalty payments that 
are less intensive than audits) in FOGRMA; and modifies a 
definition of ``marketing affiliate'' that existed in 
regulation by no longer requiring that the affiliate's sole 
function be the marketing of the lessee's production.

Sec. 302. Compliance reviews

    Section 302 provides statutory authority for the Secretary 
to conduct compliance reviews of royalty payments, and requires 
any uncovered discrepancies to be referred to an auditor. The 
Secretary would have to provide notice to payors that a 
compliance review was being conducted.

Sec. 303. Clarification of liability for royalty payments

    Section 303 clarifies that designees are liable for royalty 
payments under a lease, and that lease owners and operators are 
liable for their pro-rated share of payment obligations under a 
lease.

Sec. 304. Required recordkeeping

    Section 304 requires oil and gas records to be kept by 
payors for seven years instead of the current six, which aligns 
that timeframe with the statue of limitations for the 
government established under the Royalty Fairness and 
Simplification Act of 1995 (P.L. 104-185) to collect unpaid 
royalties.

Sec. 305. Fines and penalties

    Section 305 amends FOGRMA to double fines for underpayment 
or late payment of royalties, and also doubles the penalty for 
theft. These penalties have not been increased since 1983. The 
section further extends the statute of limitations for oil and 
gas leases held by violators.

Sec. 306. Interest on overpayments

    Section 306 eliminates the current requirement that the 
federal government pay interest on royalty overpayments made by 
operators. The Committee believes that this would eliminate the 
incentive that operators have to make errors in their favor on 
their royalty calculation and receive a guaranteed return of 
the payment made in error plus interest.

Sec. 307. Adjustments and refunds

    Section 307 eliminates the opportunity for lessees to make 
adjustments to their royalty obligations after a compliance 
review or audit is completed on a lease in question, and limits 
the ability to make adjustments to four years after the date 
royalties were initially due.

Sec. 308. Conforming amendment

    Section 308 repeals Section 114 of FOGRMA, which related to 
a study on noncompetitive leases that was due in 1983.

Sec. 309. Obligation period

    Section 309 establishes that in the case of an adjustment 
made by a lessee that results in an underpayment, the lessee 
would be obligated to repay that amount (plus interest) from 
the date the lessee makes the adjustment, thus extending the 
statute of limitations on that royalty payment.

Sec. 310. Notice regarding tolling agreements and subpoenas

    Section 310 allows the Secretary to correspond only with 
the lease designee in the case of subpoenas or agreements to 
pause the statute of limitations, as opposed to having to 
contact each lessee individually.

Sec. 311. Appeals and final agency action

    Section 311 extends the timeframe for the Secretary to 
issue final decisions on any appeals on demands or orders to 
pay royalties or penalties to 48 months, from the current 33 
months.

Sec. 312. Assessments

    Section 312 repeals Section 116 of FOGRMA, which prohibited 
the Secretary from imposing assessments on payors who 
chronically submit erroneous royalty reports.

Sec. 313. Collection and production accountability

    Section 313 establishes a pilot project for the automated 
transmission of electronic data from offshore wellheads and 
meters to the federal government, in order to improve the 
accuracy and efficiency of data and royalty collection.

Sec. 314. Natural gas reporting

    Section 314 requires the Secretary to implement the steps 
necessary to ensure accurate reporting of heat content values 
of natural gas.

Sec. 315. Penalty for late or incorrect reporting of data

    Section 315 establishes a penalty for companies that file 
late or incorrect data, to be set at a level the Secretary 
determines is sufficient to ensure that companies file correct 
data on time, but no less than $10 per incorrect line of data.

Sec. 316. Required recordkeeping

    Section 316 requires the Secretary to amend existing 
regulations to encompass the full authority granted under 
FOGRMA Section 103 to require lessees, operators, or anyone 
involved in developing, producing, transporting, purchasing, or 
selling oil or natural gas from federal lands to provide 
records to the federal government upon request, if the 
Secretary implements such authority by rule. The current 
regulations promulgated under section 103 apply only to lessees 
and operators, ignoring the federal government's authority to 
audit natural gas purchasers.

Sec. 317. Shared civil penalties

    Section 317 amends Section 206 of FOGRMA to eliminate a 
disincentive for states and tribes to diligently pursue royalty 
violators. Under current law, any civil penalties that are 
collected under FOGRMA due to the work of state or tribal 
auditors are divided evenly between the states or tribes and 
the federal government. The amount the state or tribe receives 
from the civil penalty is then subtracted from the amount of 
money they would have received under their cooperative 
agreements with MMS. This means that, currently, state and 
tribal auditors receive no benefit for any work they do in 
identifying royalty violators.

Sec. 318. Applicability to other minerals

    Section 318 extends the civil and criminal enforcement 
authority in FOGRMA to coal and other solid minerals on federal 
lands, as well as to solid mineral mining or alternative energy 
development on the Outer Continental Shelf.

Sec. 319. Entitlements

    Section 319 requires the Secretary to publish final 
regulations regarding procedures for reporting royalties on 
entitled shares of production from unitized leases when lessees 
do not actually sell their share of production from that lease.

    TITLE IV--FULL FUNDING FOR THE LAND AND WATER CONSERVATION FUND


              Subtitle A--Land and Water Conservation Fund

    Pursuant to the Land and Water Conservation Fund (LWCF) Act 
of 1965 (16 U.S.C. 460l-4 et seq.) $900,000,000 is deposited 
into the Land and Water Conservation Fund annually. The vast 
majority of that funding is derived from miscellaneous receipts 
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.).
    The LWCF Act specifies that not less than 40% of the money 
allocated from the Fund shall be available for federal purposes 
which include acquisition of land, waters, or interests in land 
or waters within National Parks, within or near National 
Forests, or related to important fish and wildlife habitat.
    The LWCF Act further authorizes matching grants to States 
for planning, acquisition of land, waters, or interests in land 
or waters, or development, related to recreation. A percentage 
of the funding awarded to the States is apportioned equally 
while the remainder is awarded based on need, with need 
determined based on population and the demand placed on 
existing recreation facilities. The LWCF Act does not specify a 
percentage for the state program.
    Currently, the amount of funding provided for actual 
expenditure under the LWCF Act is determined through the annual 
appropriations process. While the full $900,000,000 is credited 
to the Fund each year, only a fraction of that amount is 
expended for the programs and purposes included in the Act. As 
a result, a balance of more than $17 billion has accrued in the 
Fund over the years.
    This Subtitle amends the LWCF Act to make the full 
$900,000,000 available annually to the federal and stateside 
programs, without further appropriation. Further, the Subtitle 
amends the LWCF Act to extend authorization for the LWCF 
through September 30, 2040. Subtitle A leaves in place all 
other existing provisions of the LWCF, including the 40% 
minimum requirement for the federal program. It is the 
Committee's expectation that LWCF funding will be allocated 
equitably between the federal and state programs.
    Since its passage in 1965, deposits into the LWCF, and the 
expenditure of these funds on critical conservation projects, 
have been part of federal policy governing energy development 
in the Outer Continental Shelf. LWCF expenditures have not kept 
pace with OCS development, however, and the Committee intends 
that Subtitle A will correct this imbalance.

Sec. 401. Amendments to the Land and Water Conservation Fund Act of 
        1965

    Section 401 establishes that all language in this subtitle 
amends the Land and Water Conservation Fund (LWCF) Act of 1965 
(16 U.S.C. 460l-4 et seq.).

Sec. 402. Extension of the Land and Water Conservation Fund

    Section 402 extends the authorization of the LWCF until 
2040.

Sec. 403. Permanent funding

    Section 403 provides for $900 million to be available to 
the LWCF each year out of OCS receipts without further 
appropriation.

            Subtitle B--National Historic Preservation Fund


Sec. 411. Permanent funding

    Pursuant to the National Historic Preservation Act (16 
U.S.C. 470 et seq.), $150,000,000 is deposited in the Historic 
Preservation Fund (HPF) annually for the purposes of that Act. 
These funds are also derived from revenue due and payable to 
the United States under the Outer Continental Shelf Lands Act.
    As with LWCF funding, expenditures from the HPF are subject 
to appropriations; the HPF currently has a balance of $2.8 
billion. Section 411 amends the National Historic Preservation 
Act to make the full $150,000,000 available annually, without 
further appropriation. This section also extends authorization 
for the HPF through 2040.
    Payment into the HPF, and expenditure of those funds for 
preservation of historic and cultural resources, has also been 
part of federal OCS policy for decades but will only be fully 
realized with enactment of full, mandatory funding.

                TITLE V--ALTERNATIVE ENERGY DEVELOPMENT


Sec. 501. Commercial wind and solar leasing program

    Section 501 establishes a leasing program for wind and 
solar projects on federal lands, in contrast to the special use 
permits and rights-of-way authorizations that are currently 
used. The Secretary is no longer authorized to lease Forest 
Service lands for renewable energy over the objections of the 
Secretary of Agriculture. This section further provides that 
final regulations establishing a leasing program be published 
within 18 months after the date of enactment, and leasing 
commence no later than 90 days after issuance of the 
regulations.
    The Committee believes a leasing system for wind and solar 
energy on federal lands is the simplest and fairest way to 
ensure responsible development. Most other forms of energy 
development (oil and gas, coal, renewable energy on the OCS, 
geothermal energy) have competitive leasing systems. In the 
absence of the direct statutory guidance this Act provides, BLM 
has elected to approve renewable energy projects through right-
of-way authorizations (ROW) established by the Federal Land 
Policy and Management Act of 1976 (FLPMA). ROW authorizations 
are traditionally used by BLM to locate power lines, pipelines, 
and communications towers and lines on federal land. They are 
intended for linear uses of lands, rather than commercial 
development of a resource from the land. Even BLM's 
implementing regulations for FLPMA indicate that renewable 
energy development is more appropriately handled by leasing: 30 
CFR 2920.1-1(a) states, ``Leases shall be used to authorize 
uses of public lands involving substantial construction, 
development, or land improvement and the investment of large 
amounts of capital which are to be amortized over time.''
    The Committee is not persuaded by industry assertions that 
competitive leasing is inappropriate because the solar industry 
is not mature, and competitive leasing will result in little or 
no solar development on public lands. BLM has identified 23 
million acres of public lands with utility-scale solar energy 
potential and already over 200 right of way applications have 
been submitted to BLM. Importantly, BLM data shows that of 
those applications for solar projects, 35% are for overlapping 
areas; about 10% of wind applications overlap. Clearly, there 
is strong interest in prime, valuable parcels of sun and wind-
rich public lands, as well as a need for a competitive lease 
process as a simple way to ensure that sites are awarded to 
companies with the best project proposal--those that have the 
financial and technical expertise to bring a project to 
fruition.
    Subsection (d) eliminates the ability to site commercial 
solar or wind projects on BLM or Forest Service land using a 
right-of-way or special use permit. However, subsection (f), as 
amended, allows rights-of-way or special use permits to be 
issued for projects that have submitted an application for a 
solar or wind right of way permit, or for a permit for a 
meteorological tower or to construct a wind farm, or have 
already installed a data collection device, prior to the date 
of enactment.
    Subsection (e) allows for the issuance of noncompetitive 
leases for noncommercial testing purposes, and gives the 
Secretary the authority to award preference to holders of 
noncompetitive leases during a commercial lease sale. 
Subsection (g) requires the Secretary to promulgate diligent 
development requirements for solar and wind leases and, as 
amended, regulations to ensure that leases are not obtained for 
speculative purposes.
    The Committee emphasizes its support for the 
Administration's priority of dramatically increasing the 
nation's clean energy capacity, and the Department of the 
Interior's efforts to permit 34 wind and solar ``fast-track'' 
projects on public lands by the end of 2010. However, the 
Committee is concerned that a lack of clear guidance for siting 
these projects has caused permitting and development delays. To 
remedy the situation and expedite projects currently under 
consideration (including those that will be grandfathered under 
the ROW process by this Act) the Committee urges the Department 
of the Interior to promptly issue clear and specific interim 
guidance on project siting and the environmental review 
process. Interim guidance will provide important benefits until 
BLM completes its Programmatic Solar Environmental Impact 
Study; it would help BLM staff meet legal requirements and 
achieve federal and state priorities, provide consistency in 
documents and authorizations for conditions of use, and enable 
more efficient, coordinated and expeditious permitting by 
Renewable Energy Coordination Offices.
    At a minimum, the Committee believes that interim guidance 
for renewable energy development on federal lands should ensure 
that the permitting process complies with all applicable 
federal environmental laws; guides development to complement 
forthcoming programmatic plans; and, ultimately, expedites the 
approval and development of environmentally-sound renewable 
energy projects.

Sec. 502. Land management

    Section 502 requires the Secretary to issue regulations for 
solar and wind leasing, establishing the lease terms, bonding 
requirements, and land reclamation requirements. Section 502 
also ensures that solar and wind lease terms would be for no 
less than 30 years.

Sec. 503. Revenues

    Section 503 requires the Secretary to set rates for 
rentals, royalties, fees, bonus bids and other payments at a 
level to ensure a fair return to the United States and 
encourage development of wind and solar energy on federal 
lands. Section 503 also allows the Secretary to waive the 
rental payment for the development of renewable energy projects 
on lands that have already been adversely impacted by 
significant prior use.
    The Office of the Inspector General of the Department of 
the Interior testified in support of obtaining fair market 
value for revenues from solar and wind projects (Mary L. 
Kendall, Acting Inspector General, House Committee on Natural 
Resources Hearing on H.R. 3534, September 16, 2009). In 
response to concerns that charging royalties will put solar at 
a competitive disadvantage compared to mature electricity 
sources, the Committee notes that this section gives the 
Secretary both discretion and direction to establish royalties 
and other payments that ``encourage development of solar and 
wind on federal lands'' which could include phased in 
royalties, royalties tied to production volumes or prices, or 
other measures that provide a fair return to the government but 
also facilitate viable renewable energy projects on public 
lands.
    The Committee does not accept the assertion that solar and 
wind developers should pay only minimal rentals and no royalty 
because they are not ``removing'' a commodity from the land. 
The Committee notes that commercial scale solar projects will 
make large-scale landscape changes and prevent other uses of 
those lands during the lease terms, as well as the fact that 
some wet-cooled technologies could use substantial amounts of 
water.
    Equally importantly, the key consideration is not whether 
solar or wind development removes a resource from public lands, 
it is whether solar and wind developers pay fair market value 
or a fair return for use of the public's lands. Many prime 
sites for solar and wind have considerable value that the 
current ROW structure, which is based on agricultural use 
values, does not capture, nor can it distinguish among the most 
promising sites with the maximum potential for electricity 
generation, and value them accordingly. Among the well-
established statutory goals of payments for federal lands by a 
variety of users are realizing a fair return to the taxpayer 
for the use the lands, offsetting damage caused by the 
permitted uses, and obtaining funds to compensate for the 
reduction or loss of other uses of the lands. Royalties are a 
key means of capturing the added value of land--or the loss of 
the value of that land--beyond the direct physical occupation 
of the land.
    With regard to those lands already adversely impacted by 
development, the Committee believes multiple benefits can be 
achieved by waiving rental fees for renewable energy projects 
on those areas. Reuse of already developed or contaminated 
parcels for renewable energy can provide energy and jobs, and 
relieve development pressure on undeveloped ``green'' spaces. 
As an added benefit, an old mine site, decommissioned landfill, 
or gravel pit may already be located near transmission 
capacity. The Committee encourages the Secretary to consider 
other ways to provide incentives for reuse of previously 
impacted sites for renewable energy, including expedited 
processing and permitting of renewable energy projects on those 
lands

Sec. 504. Recordkeeping and reporting requirements

    Section 504 requires lessees, permit holders, or renewable 
energy operators to maintain records for seven years, in order 
to allow for future audits or compliance reviews of renewable 
energy production on federal lands.

Sec. 505. Audits

    Section 505 authorizes the Secretary to conduct audits of 
onshore wind and solar leases.

Sec. 506. Trade secrets

    Section 506 allows confidential or proprietary information 
to be made available by the Secretary to other federal agencies 
if necessary to carry out the provisions of this Act or other 
federal law.

Sec. 507. Interest and substantial underreporting assessments

    Section 507 allows interest to be charged on late royalty 
payments for wind and solar leases, and also establishes a 
civil penalty of up to 25% for underpayments, in addition to 
making royalty violators subject to the civil penalty 
provisions of FOGRMA. The Secretary is authorized to waive 
penalties if the underpayment is corrected before the payor 
receives a notice from the Secretary of that underpayment, and 
for other reasons. This section also establishes joint and 
several liability for royalty payments on a lease.

Sec. 508. Indian savings provision

    Section 508 provides that the rights and interests of 
Indian tribes are not affected by this Title.

Sec. 509. Transmission savings provision

    Section 509 clarifies that the renewable energy leasing 
authorities of the Bureau of Energy and Resource Management do 
not affect the authority of other federal agencies with respect 
to the permitting of electric transmission facilities.

                  TITLE VI--COORDINATION AND PLANNING


Sec. 601. Regional coordination

    Section 601 addresses the need for long-term coordination 
and planning amongst federal agencies with authorities for 
ocean, coastal, and Great Lakes management and between those 
federal agencies and states, and establishes nine Coordination 
Regions in the Pacific, Gulf of Mexico, North Atlantic, Mid 
Atlantic, South Atlantic, Alaska, Pacific Islands, and the 
Caribbean.

Sec. 602. Regional Coordination Councils

    Section 602 establishes Regional Coordination Councils, 
designated by the Chairman of the Council on Environmental 
Quality, which are to include representatives of relevant 
federal agencies, coastal states, Regional Fishery Management 
Councils, interstate fisheries commissions, Regional Ocean 
Partnerships, affected Tribes, and county and local 
governments. This section also requires each Regional 
Coordination Council to establish an Advisory Committee with 
balanced representation to give advice during the development 
of Regional Assessments and Regional Strategic Plans.

Sec. 603. Regional Strategic Plans

    Section 603 authorizes the Regional Coordination Councils 
to prepare and complete Strategic Plans, within 3 years after 
completion of an initial regional assessment, to foster 
comprehensive, integrated, and sustainable development and use 
of ocean, coastal, and Great Lakes resources, while protecting 
marine ecosystem health and sustaining the long-term economic 
and ecosystem values of the oceans.

Sec. 604. Regulations

    Section 604 authorizes the Chair of the Council on 
Environmental Quality to issue regulations necessary to 
administer this Title.

Sec. 605. Ocean Resources Conservation and Assistance Fund

    Section 605 establishes an Ocean Resources Conservation and 
Assistance (ORCA) Fund. A percentage of all OCS revenues would 
be deposited into the ORCA Fund, which would provide grants to 
coastal states and Regional Ocean Partnerships for activities 
that contribute to the protection, maintenance, and restoration 
of ocean, coastal and Great Lakes ecosystems including: the 
development and implementation of comprehensive, science-based 
plans for monitoring and managing the wide variety of uses 
affecting the oceans, coasts and Great Lakes ecosystems; 
activities to improve the ability of those ecosystems to become 
more resilient and adapt to and withstand the impacts of 
climate change and ocean acidification; planning for and 
managing coastal development to minimize the loss of life and 
property associated with sea-level rise and the coastal hazards 
resulting from it; research, assessment and monitoring that 
contribute to these purposes; strengthened planning for coastal 
State oil spill response; and the build-out and operation and 
maintenance of an Integrated Ocean Observation System as 
authorized under Public Law 111-11 to continuously provide 
quality-controlled environmental data and information on 
current and future conditions of the U.S. ocean and coastal 
environment.
    With so much revenue being generated by energy development 
in the outer Continental Shelf, the Committee believes it is 
sensible to reinvest some of those revenues back into the 
conservation and management of the oceans and coasts that yield 
these benefits, and so many others. The Deepwater Horizon 
disaster highlighted how little is known about the Gulf of 
Mexico ecosystem and how little planning has been conducted to 
manage and protect these resources in the event of a 
catastrophic oil spill. As noted in testimony before the 
Subcommittee on Insular Affairs, Oceans and Wildlife, during 
hearings on the spill, federal regulatory and trustee agencies 
lack baseline information on the Gulf of Mexico ecosystem and 
the necessary in-house capacity to properly assess the impacts 
of this unprecedented oil spill now and into the future. In 
addition, strategic and contingency planning for this worst-
case scenario was revealed to be wholly inadequate, by both 
industry and by federal and state government agencies. The 
Subcommittee also received testimony that suggested that the 
costs of preparedness planning should be born largely by the 
industry that is the source of the risk.

Sec. 606. Waiver

    Section 606 exempts the Regional Coordination Councils from 
the Federal Advisory Committee Act.

                  TITLE VII--MISCELLANEOUS PROVISIONS


Sec. 701. Repeal of certain taxpayer subsidized royalty relief for the 
        oil and gas industry

    Section 701 repeals the shallow-water-deep-gas, deep-water, 
and Alaskan OCS royalty relief provisions that were enacted in 
the Energy Policy Act of 2005 (EPAct) (P.L. 109-58). Subsection 
(c) repeals language from EPAct that provided for leases 
extensions and royalty relief in the National Petroleum 
Reserve-Alaska.

Sec. 702. Conservation fee

    Section 702 imposes a fee of $2 per barrel of oil, or 20 
cents per million Btu of natural gas, for production from all 
new and existing Federal onshore and offshore leases. This 
section provides that the fee will be deposited in the Land and 
Water Conservation Fund, the Historic Preservation Fund, the 
ORCA Fund, and the U.S. Treasury, and will expire on December 
31, 2021.

Sec. 703. Leasing on Indian lands

    Section 703 provides that nothing in this Act would amend 
or modify leasing as it is currently carried out on Indian 
lands by the Bureau of Indian Affairs.

Sec. 704. Offshore aquaculture clarification

    Section 704 clarifies that the Secretary of Commerce and 
the Regional Fishery Management Councils do not have the 
authority to develop or approve fishery management plans for 
the purposes of permitting or regulating aquaculture in the 
U.S. Exclusive Economic Zone. The Committee believes that a 
national aquaculture policy and a regulatory program with 
consistent standards and environmental protections is a more 
appropriate route for the development of offshore aquaculture 
in the United States.
    Offshore aquaculture is a new, emerging ocean use and if 
poorly sited could conflict with existing ocean uses, including 
offshore oil and gas activities. The National Oceanic and 
Atmospheric Administration (NOAA) assumes that the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 
et seq.) gives that agency the authority to regulate offshore 
aquaculture, but the Committee believes that it was never the 
intent of Congress to provide this authority. The Committee 
further believes that use of the law for this purpose sets a 
dangerous precedent where offshore aquaculture would be 
regulated on a case-by-case basis, with an inconsistent 
application of regulations and standards.

Sec. 705. Outer Continental Shelf State Boundaries

    Section 705 directs the Secretary to carry out the OCSLA 
Section 4(a)(2)(A) mandate to determine the seaward boundaries 
of the states to the outer margin of the OCS. The Committee 
notes that the mandate was originally included in 1953, when 
the OCSLA was first passed. The 1977 Committee Report from the 
Ad Hoc Select Committee on the Outer Continental Shelf (report 
No. 95-590) states, ``[t]he committee, although concerned that 
such determinations have still not yet been completed, has left 
the section untouched . . . the committee strongly believes 
that the President should promptly determine and publish such 
lines and establish procedures, if necessary, for the settling 
of any disputes relating to the projection of such lines, prior 
to such determination.''
    Although the Outer Continental Shelf and the resources 
therein are entirely federal, rendering such lines not strictly 
necessary, the Department of the Interior has in recent years 
increasingly moved towards planning within what it considers to 
be the administrative boundaries of certain states on the OCS. 
For example, the area chosen for Lease Sale 220 in the Atlantic 
Region was based on administrative lines published in 2006 by 
the Minerals Management Service (71 Fed. Reg. 127; January 3, 
2006). The Committee does not believe that the 2006 
administrative lines adequately fulfill the mandate of Section 
4 of the OCSLA. These lines are drawn purely based on 
equidistance principles, and do not take ``special 
circumstances'', as referred to in Article 12 of the United 
Nations Convention on the Territorial Sea and the Contiguous 
Zone, into account. Along the Atlantic seaboard in particular, 
the concavity and convexity of state coastlines creates large, 
and potentially inequitable, disparities between the amount of 
the OCS deemed to be within the administrative planning area of 
each state. Certain states, such as Virginia, have already 
protested the amount of the OCS that is deemed to be within 
their administrative boundaries. Given that these boundaries 
may become increasingly important in planning future activities 
on the OCS, it is unacceptable that the Department of the 
Interior has not conducted a formal, open process to establish 
the boundaries mandated in Section 4 of the OCSLA, and the 
Committee intends that this section will rectify that 
situation.

Sec. 706. Liability for damages to National Wildlife Refuges

    Section 706 amends the National Wildlife Refuge System 
Administration Act of 1966 to hold any person or 
instrumentality which destroys, causes the loss of, or injures 
a refuge resource, or any living or nonliving resource of the 
refuge system or marine national monument, liable to the United 
States for such damages. This section further authorizes the 
Secretary to use the amounts recovered for costs of response 
actions and damage assessments and to recover, restore, or when 
necessary, replace damaged resources. This authority does not 
apply in those instances when the activity is permitted by 
federal or state law, is caused by an act of God or an act of 
war, or results in damage that was negligible. This section 
establishes a three-year statute of limitation for response 
costs and damages beginning on the date the Secretary completes 
a damage assessment and recovery for actions.
    The Committee notes that there are 36 National Wildlife 
Refuges in the Gulf of Mexico region at risk from the Deepwater 
Horizon disaster, but the organic act for the National Wildlife 
Refuge System contains no liability for natural resource 
damages. These liability provisions occur in other statutes, 
including the Park System Resource Protection Act (16 U.S.C. 
19jj) and the National Marine Sanctuaries Act (16 U.S.C. 1431 
et seq.). These authorities have been used judiciously to 
enable the federal government to hold responsible parties 
accountable when trust resources are damaged or destroyed, and 
to recover compensation for these losses on behalf of the 
American taxpayer. The Committee believes that the nation's 
wildlife refuges deserve no less consideration than other 
federal recreation lands, and this section provides that the 
same liability standard applies.

Sec. 707. Strengthening coastal State oil spill planning and response

    Section 707 amends Section 306 of the Coastal Zone 
Management Act of 1972 to provide grants, not to exceed 
$750,000, to eligible coastal states to revise management 
programs to develop and implement new enforceable policies and 
procedures to ensure sufficient oil spill response 
capabilities. Coastal states would be eligible to receive a 
maximum of two grants in different fiscal years under this 
section.
    Under the Coastal Zone Management Act, eligible coastal 
states were required to provide a planning process and 
enforceable policies for energy facilities likely to be located 
in, or which may significantly affect, the coastal zone, 
including a process for anticipating the management of impacts 
resulting from such facilities. Responding to oil spills 
requires planning at various scales and integration of these 
efforts to ensure the coordination and effectiveness of 
response and recovery activities. Various plans were in place 
before the Deepwater Horizon incident and while response and 
recovery activities have adhered to these plans, these actions 
have been insufficient and ineffective due to unprecedented 
complexity and magnitude of this oil spill.

Sec. 708. Information sharing

    Section 708 amends Section 388(b) of the Energy Policy Act 
of 2005 (P.L. 109-58) to require other federal agencies to 
provide data and information to the Secretary of the Interior 
in support of the Coordinated OCS Mapping Initiative.

Sec. 709. Repeal of funding

    Section 709 amends Section 999H of the Energy Policy Act of 
2005 (P.L. 109-58) to eliminate the automatic $50 million in 
funding from offshore revenues that the Ultra-deepwater and 
Unconventional Onshore Natural Gas and Other Petroleum Research 
and Development Program receives each year. Such research has 
been primarily focused on new methods of extracting 
hydrocarbons, and the Committee believes it is more 
appropriately funded by the oil and gas industry.

Sec. 710. Savings clause

    Section 710 provides that no funds from this Act would be 
able to pay any cost for which any responsible party is liable 
under the Oil Pollution Act of 1990.

Sec. 711. Additional public right-to-know requirements

    Section 711 requires the Secretary of the Interior to 
maintain a public database listing all lawsuits filed against 
the Department pursuant to the OCSLA, Mineral Leasing Act, and 
Geothermal Steam Act of 1970. This section also requires 
attorney's fees to be included in this database.

Sec. 712. Federal response to state proposals to protect lands and 
        waters

    Section 712 requires that when states apply for a permit to 
undertake a project in response to an oil spill of national 
significance, federal agencies must either decide on the 
application within 48 hours or provide a definitive date by 
which the application will be decided by. Failure by the 
federal agency to meet deadlines under this section results in 
the application being deemed approved.

                 TITLE VIII--GULF OF MEXICO RESTORATION


Sec. 801. Gulf of Mexico restoration program

    Section 801 establishes a Gulf of Mexico Restoration Task 
Force, composed of the heads of the relevant federal agencies 
and the governors of the Gulf coast states, to develop and 
publish a long-term restoration plan within one year after the 
date of enactment. The Plan would identify processes and 
strategies for coordinating and implementing federal, state, 
and local restoration programs and projects, using the best-
available science. The Committee recognizes that significant 
resources will be spent by federal, state and local entities to 
restore the Gulf ecosystem, and it is very important that the 
efforts of those entities is coordinated to maximize their 
effectiveness, to eliminate redundant activities, and to ensure 
that responsible parties fulfill their obligations and are held 
accountable under any future settlements for natural resource 
damages.

               TITLE IX--GEOTHERMAL PRODUCTION EXPANSION


Sec. 901. Short title

    Section 901 provides that this title may be cited as the 
``Geothermal Production Expansion Act.''

Sec. 902. Findings

    Section 902 provides that Congress makes certain findings 
related to geothermal energy.

Sec. 903. Noncompetitive leasing of adjoining areas for development of 
        geothermal resources committee

    Section 903 amends the Geothermal Steam Act of 1970 to 
provide an opportunity for the noncompetitive leasing of up to 
1 square mile of federal land when a geothermal discovery has 
been made immediately adjacent to those lands. Such leases 
would be available at the fair market value as determined by 
the Secretary, but not less than $50 per acre, or four times 
the median amount paid per acre for all geothermal leases 
issued in the preceding year, whichever is greater. This 
section also requires that any potential noncompetitive 
geothermal leases be publicly noticed, and that prospective 
lessees and the public be able to appeal the determination of 
fair market value.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                  Federal Advisory Committee Statement

    The functions of the proposed advisory committee authorized 
in the bill are not currently being nor could they be performed 
by one or more agencies, an advisory committee already in 
existence or by enlarging the mandate of an existing advisory 
committee.

                   Constitutional Authority Statement

    Article I, section 8 and Article IV, section 3 of the 
Constitution of the United States grant Congress the authority 
to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(c)(2) of rule XIII of the 
Rules of the House of Representatives is satisfied when a cost 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted 
prior to the filing of the committee report and is included in 
the report. The Committee has not yet received a cost estimate 
for H.R. 3534 from the Director of the Congressional Budget 
Office. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
section 308(a) of the Congressional Budget Act of 1974, the 
Committee references the Committee Cost Estimate, included 
below.
    2. Congressional Budget Act. With respect to the 
requirement of clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives and section 402 of the Congressional 
Budget Act of 1974, a cost estimate from the Director of the 
Congressional Budget Office is not available.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the general performance goal and objective of 
this legislation is to provide greater efficiencies, 
transparency, returns, and accountability in the administration 
of Federal mineral and energy resources, and for other 
purposes.

                        Committee Cost Estimate

    H.R. 3534, as ordered reported, would reform the regulation 
of energy development on and within federal land and waters. 
The bill would also establish a federal framework to protect 
natural resources affected by federal energy development and 
provide for a fair return to the federal government for the use 
of public resources. To achieve this, H.R. 3534 would create 
new Department of the Interior agencies to regulate federal 
energy development; provide safety, environmental and financial 
reform of offshore and onshore federal energy development; end 
unwarranted royalty relief for the oil and gas industry and 
reform the federal oil and gas royalty program; provide full 
funding for the Land and Water Conservation and Historic 
Preservation Funds; provide for rational alternative energy 
development on federal land and waters; establish coordination 
and planning on the development and use of federal renewable 
and nonrenewable resources affecting the ocean, coastal, and 
Great Lakes environments; and authorize a program for the 
restoration of the Gulf of Mexico.
    H.R. 3534 would authorize increases in discretionary 
spending to carry out necessary reforms of the federal offshore 
and onshore energy programs and protect important resources. 
The Committee believes these discretionary increases are 
necessary to achieve the safety, environmental, and financial 
benefits provided by the bill. In addition, the bill would 
affect revenue and direct spending by establishing a new 
conservation fee, providing for renegotiation of certain 
royalty-free leases, repealing existing mandatory spending 
programs, and providing funding for the Land and Water 
Conservation Fund (LWCF), the Historic Preservation Fund (HPF), 
and the Ocean Resources Conservation and Assistance (ORCA) Fund 
established by section 605 of the reported bill.
    The conservation fee established by section 702 and the 
renegotiation of leases and subsequent collection of royalties 
provided for by Subtitle C of Title II have previously been 
considered and passed by the House of Representatives. Although 
the exact amount of revenue to be raised by the fee and lease 
renegotiation are uncertain, the Committee believes these 
provisions would generate significant revenue. A previous 
estimate provided by the Congressional Budget Office for H.R. 6 
in the 110th Congress estimated that a similar conservation fee 
would generate $6.1 billion over a 10-year period.
    The other provisions significantly affecting direct 
spending involve full funding for the LWCF ($900 million 
annually) and HPF ($150 million annually), and funding for the 
newly established ORCA Fund (10 percent of qualified OCS 
leasing revenue annually). For more than three decades, 
revenues generated by oil and gas leasing in the Outer 
Continental Shelf (OCS) have been credited to the LWCF and HPF. 
Providing direct spending for the LWCF and HPF will fulfill the 
longstanding premise behind these two funds; namely that as we 
deplete one natural resource (oil and gas in the OCS) we should 
dedicate a portion of the revenues to the preservation of the 
natural, historical and recreational resources of the United 
States. Further, it is the view of the Committee that we should 
dedicate a portion of the revenues generated from our oceans to 
the preservation of our ocean resources.

                    Compliance With Public Law 104-4

    The Committee has not received an estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (UMRA) (Public Law 104-4). The Committee estimates that 
H.R. 3534 contains private-sector mandates as defined in UMRA 
because it would impose new safety standards and other 
requirements on offshore and onshore federal energy 
development. The Committee estimates that the aggregate cost of 
complying with the private-sector mandates in the bill could be 
significant, and may exceed the annual threshold established in 
UMRA ($141 million, adjusted annually for inflation).

                           Earmark Statement

    H.R. 3435 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART D--PAY AND ALLOWANCES

           *       *       *       *       *       *       *


CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *


SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

           *       *       *       *       *       *       *


Sec. 5316. Positions at level V

  Level V of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Administrator, Bonneville Power Administration, 
        Department of the Interior.

           *       *       *       *       *       *       *

        [Director, Bureau of Mines, Department of the 
        Interior.]
          Director, Bureau of Energy and Resource Management, 
        Department of the Interior.
          Director, Bureau of Safety and Environmental 
        Enforcement, Department of the Interior.
          Director, Office of Natural Resources Revenue, 
        Department of the Interior.

           *       *       *       *       *       *       *

                              ----------                              


OUTER CONTINENTAL SHELF LANDS ACT

           *       *       *       *       *       *       *


  Sec. 2. Definitions.--When used in this Act--
  (a) * * *

           *       *       *       *       *       *       *

  (r) The term ``safety case'' means a body of evidence that 
provides a basis for determining whether a system is adequately 
safe for a given application in a given operating environment.
  Sec. 3. National Policy for the Outer Continental Shelf.--It 
is hereby declared to be the policy of the United States that--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) the outer Continental Shelf is a vital national 
        resource reserve held by the Federal Government for the 
        public, which should be made available for expeditious 
        and orderly development, subject to environmental 
        safeguards, in a manner which is consistent with the 
        maintainence of competition and other national needs;]
          (3) the outer Continental Shelf is a vital national 
        resource reserve held by the Federal Government for the 
        public, that should be managed in a manner that--
                  (A) recognizes the need of the United States 
                for domestic sources of energy, food, minerals, 
                and other resources;
                  (B) minimizes the potential impacts of 
                development of those resources on the marine 
                and coastal environment and on human health and 
                safety; and
                  (C) acknowledges the long-term economic value 
                to the United States of the balanced and 
                orderly management of those resources that 
                safeguards the environment and respects the 
                multiple values and uses of the outer 
                Continental Shelf;
          (4) since exploration, development, and production of 
        the minerals of the outer Continental Shelf will have 
        significant impacts on coastal and non-coastal areas of 
        the coastal States, and on other affected States, and, 
        in recognition of the national interest in the 
        effective management of the marine, coastal, and human 
        environments--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) such States, and through such States, 
                affected local governments, are entitled to an 
                opportunity to participate, to the extent 
                consistent with the national interest, in the 
                policy and planning decisions made by the 
                Federal Government relating to exploration for, 
                and development and production of, minerals of 
                the outer Continental Shelf[.];
          (5) the rights and responsibilities of all States 
        and, where appropriate, local governments, to preserve 
        and protect their marine, human, and coastal 
        environments through such means as regulation of land, 
        air, and water uses, of safety, and of related 
        development and activity [should be] shall be 
        considered and recognized; [and]
          (6) exploration, development, and production of 
        energy and minerals on the outer Continental Shelf 
        should be allowed only when those activities can be 
        accomplished in a manner that minimizes--
                  (A) harmful impacts to life (including fish 
                and other aquatic life) and health;
                  (B) damage to the marine, coastal, and human 
                environments and to property; and
                  (C) harm to other users of the waters, 
                seabed, or subsoil; and
          [(6)] (7) operations in the outer Continental Shelf 
        [should be] shall be conducted in a safe manner by 
        well-trained personnel using best available technology, 
        precautions, and techniques sufficient to prevent [or 
        minimize] the likelihood of blowouts, loss of well 
        control, fires, spillage, physical obstruction to other 
        users of the waters or subsoil and seabed, or other 
        occurrences which may cause damage to the environment 
        or to property, or endanger life or health.
  Sec. 4. Laws Applicable to Outer Continental Shelf.--(a)(1) 
The Constitution and laws and civil and political jurisdiction 
of the United States are hereby extended to the subsoil and 
seabed of the outer Continental Shelf and to all artificial 
islands, and all installations and other devices permanently or 
temporarily attached to the seabed which may be erected thereon 
for the purpose of exploring for, developing, or producing 
resources therefrom or producing or supporting production of 
energy from sources other than oil and gas, or any such 
installation or other device (other than a ship or vessel) for 
the purpose of transporting such resources or transmitting such 
energy, to the same extent as if the outer Continental shelf 
were an area of exclusive Federal jurisdiction located within a 
state: Provided, however, That mineral and other energy leases 
on the outer Continental Shelf shall be maintained or issued 
only under the provisions of this Act.

           *       *       *       *       *       *       *

  Sec. 5. Administration of Leasing of the Outer Continental 
Shelf.--(a) The Secretary shall administer the provisions of 
this Act relating to the leasing of the outer Continental 
Shelf, and shall prescribe such rules and regulations as may be 
necessary to carry out such provisions. [The Secretary may at 
any time] The Secretary shall prescribe and amend such rules 
and regulations as he determines to be necessary and proper in 
order to provide for operational safety, the protection of the 
marine and coastal environment, and the prevention of waste and 
conservation of the natural resources of the outer Continental 
Shelf, and the protection of correlative rights therein, and, 
not withstanding any other provisions herein, such rules and 
regulations shall, as of their effective date, apply to all 
operations conducted under a lease issued or maintained under 
the provisions of this Act. In the enforcement of safety, 
environmental, and conservation laws and regulations, the 
Secretary shall cooperate with the relevant departments and 
agencies of the Federal Government and of the affected States. 
In the formulation and promulgation of regulations, the 
Secretary shall request and give due consideration to the views 
of the Attorney General with respect to matters which may 
affect competition and the Secretary of Commerce with respect 
to matters that may affect the marine and coastal environment. 
In considering any regulations and in preparing any such views 
the Attorney General shall consult with the Federal Trade 
Commission. The regulations prescribed by the Secretary under 
this subsection shall include, but not be limited to, 
provisions--
          (1) * * *
          (2) with respect to cancellation of any lease or 
        permit--
                  (A) that such cancellation may occur at any 
                time, if the Secretary determines, after a 
                hearing, that--
                          (i) * * *
                          (ii) the threat of harm or damage 
                        will not disappear or decrease to an 
                        acceptable extent within [a reasonable 
                        period of time] 30 days; and

           *       *       *       *       *       *       *

          (7) for the prompt and efficient exploration and 
        development of a lease area in a manner that minimizes 
        harmful impacts to the marine and coastal environment; 
        [and]   
          (8) for independent third-party certification 
        requirements of safety systems related to well control, 
        such as blowout preventers;
          (9) for performance requirements for blowout 
        preventers, including quantitative risk assessment 
        standards, subsea testing, and secondary activation 
        methods;
          (10) for independent third-party certification 
        requirements of well casing and cementing programs and 
        procedures;
          (11) for the establishment of mandatory safety and 
        environmental management systems by operators on the 
        Outer Continental Shelf;
          [(8)] (12) for compliance with the national ambient 
        air quality standards pursuant to the Clean Air Act (42 
        U.S.C. 7401 et seq.), to the extent that activities 
        authorized under this Act significantly affect the air 
        quality of any State[.]; and
          (13) ensuring compliance with other applicable 
        environmental and natural resource conservation laws.

           *       *       *       *       *       *       *

  (k) Documents Incorporated by Reference.--Any documents 
incorporated by reference in regulations promulgated by the 
Secretary pursuant to this Act shall be made available to the 
public, free of charge, on a website maintained by the 
Secretary.

           *       *       *       *       *       *       *

  Sec. 8. Leases, Easements, and Rights-of-Way on the Outer 
Continental Shelf.--(a)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *
  (B) In the Western and Central Planning Areas of the Gulf of 
Mexico and the portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude [and in the Planning Areas 
offshore Alaska], the Secretary may, in order to--
          (i) * * *

           *       *       *       *       *       *       *

  (9) At least 60 days prior to any lease sale, the Secretary 
shall request a review by the Secretary of Commerce of the 
proposed sale with respect to impacts on the marine and coastal 
environment. The Secretary of Commerce shall complete and 
submit in writing the results of that review within 60 days 
after receipt of the Secretary of the Interior's request.
  (b) [An oil and gas lease issued pursuant to this section 
shall] An oil and gas lease may be issued pursuant to this 
section only if the Secretary determines that activities under 
the lease are not likely to result in any condition described 
in section 5(a)(2)(A)(i), and shall--
          (1) be for a tract consisting of a compact area not 
        exceeding five thousand seven hundred and sixty acres, 
        as the Secretary may determine[, unless the Secretary 
        finds that a larger area is necessary to comprise a 
        reasonable economic production unit];

           *       *       *       *       *       *       *

  [(d) No bid for a lease may be submitted if the Secretary 
finds, after notice and hearing, that the bidder is not meeting 
due diligence requirements on other leases.]
  (d) Requirement for Certification of Responsible 
Stewardship.--
          (1) Certification requirement.--No bid or request for 
        a lease, easement, or right-of-way under this section, 
        or for a permit to drill under section 11(d), may be 
        submitted by any person unless the person certifies to 
        the Secretary that the person (including any related 
        person and any predecessor of such person or related 
        person) meets each of the following requirements:
                  (A) The person is meeting due diligence, 
                safety, and environmental requirements on other 
                leases, easements, and rights-of-way.
                  (B) In the case of a person that is a 
                responsible party for a vessel or a facility 
                from which oil is discharged, for purposes of 
                section 1002 of the Oil Pollution Act of 1990 
                (33 U.S.C. 2702), the person has met all of its 
                obligations under that Act to provide 
                compensation for covered removal costs and 
                damages.
                  (C) In the 7-year period ending on the date 
                of certification, the person, in connection 
                with activities in the oil industry (including 
                exploration, development, production, 
                transportation by pipeline, and refining)--
                          (i) was not found to have committed 
                        willful or repeated violations under 
                        the Occupational Safety and Health Act 
                        of 1970 (29 U.S.C. 651 et seq.) 
                        (including State plans approved under 
                        section 18(c) of such Act (29 U.S.C. 
                        667(c))) at a rate that is higher than 
                        five times the rate determined by the 
                        Secretary to be the oil industry 
                        average for such violations for such 
                        period;
                          (ii) was not convicted of a criminal 
                        violation for death or serious bodily 
                        injury;
                          (iii) did not have more than 10 
                        fatalities at its exploration, 
                        development, and production facilities 
                        and refineries as a result of 
                        violations of Federal or State health, 
                        safety, or environmental laws;
                          (iv) was not assessed, did not enter 
                        into an agreement to pay, and was not 
                        otherwise required to pay, civil 
                        penalties and criminal fines for 
                        violations the person was found to have 
                        committed under the Federal Water 
                        Pollution Control Act (33 U.S.C. 1251 
                        et seq.) (including State programs 
                        approved under sections 402 and 404 of 
                        such Act (33 U.S.C. 1342 and 1344)) in 
                        a total amount that is equal to more 
                        than $10,000,000; and
                          (v) was not assessed, did not enter 
                        into an agreement to pay, and was not 
                        otherwise required to pay, civil 
                        penalties and criminal fines for 
                        violations the person was found to have 
                        committed under the Clean Air Act (42 
                        U.S.C. 7401 et seq.) (including State 
                        plans approved under section 110 of 
                        such Act (42 U.S.C. 7410)) in a total 
                        amount that is equal to more than 
                        $10,000,000.
          (2) Enforcement.--If the Secretary determines that a 
        certification made under paragraph (1) is false, the 
        Secretary shall cancel any lease, easement, or right of 
        way and shall revoke any permit with respect to which 
        the certification was required under such paragraph.
          (3) Definition of related person.--For purposes of 
        this subsection, the term ``related person'' includes a 
        parent, subsidiary, affiliate, member of the same 
        controlled group, contractor, subcontractor, a person 
        holding a controlling interest or in which a 
        controlling interest is held, and a person with 
        substantially the same board members, senior officers, 
        or investors.

           *       *       *       *       *       *       *

  (i) In order to [meet the urgent need] allow for further 
exploration and development of the sulphur deposits in the 
submerged lands of the outer Continental Shelf, the Secretary 
is authorized to grant to the qualified persons offering the 
highest cash bonuses on a basis of competitive bidding sulphur 
leases on submerged lands of the outer Continental Shelf, which 
are not covered by leases which include sulphur and meet the 
requirements of subsection (a) of section 6 of this Act, and 
which sulphur leases shall be offered for bid by sealed bids 
and granted on separate leases from oil and gas leases, and for 
a separate consideration, and without priority or preference 
accorded to oil and gas lessees on the same area.

           *       *       *       *       *       *       *

  (p) Leases, Easements, or Rights-of-way for Energy and 
Related Purposes.--
          (1) In general.--The Secretary, in consultation with 
        the Secretary of the Department in which the Coast 
        Guard is operating and other relevant departments and 
        agencies of the Federal Government, may grant a lease, 
        easement, or right-of-way on the outer Continental 
        Shelf for activities not otherwise authorized in this 
        Act, the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 
        seq.), or the Ocean Thermal Energy Conversion Act of 
        1980 (42 U.S.C. 9101 et seq.), [or other applicable 
        law,] if those activities--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(D) use, for energy-related purposes or for 
                other authorized marine-related purposes, 
                facilities currently or previously used for 
                activities authorized under this Act, except 
                that any oil and gas energy-related uses shall 
                not be authorized in areas in which oil and gas 
                preleasing, leasing, and related activities are 
                prohibited by a moratorium.]
                  (D) use, for energy-related purposes, 
                facilities currently or previously used for 
                activities authorized under this Act, except 
                that any oil and gas energy-related uses shall 
                not be authorized in areas in which oil and gas 
                preleasing, leasing, and related activities are 
                prohibited by a moratorium.

           *       *       *       *       *       *       *

          [(3) Competitive or noncompetitive basis.-- Except 
        with respect to projects that meet the criteria 
        established under section 388(d) of the Energy Policy 
        Act of 2005, the Secretary shall issue a lease, 
        easement, or right-of-way under paragraph (1) on a 
        competitive basis unless the Secretary determines after 
        public notice of a proposed lease, easement, or right-
        of-way that there is no competitive interest.]
          (3) Competitive or noncompetitive basis.--Any lease, 
        easement, right-of-way, or other authorization granted 
        under paragraph (1) shall be issued on a competitive 
        basis, unless--
                  (A) the lease, easement, right-of-way, or 
                other authorization relates to a project that 
                meets the criteria established under section 
                388(d) of the Energy Policy Act of 2005 (43 
                U.S.C. 1337 note; Public Law 109-58);
                  (B) the lease, easement, right-of-way, or 
                other authorization--
                          (i) is for the placement and 
                        operation of a meteorological or marine 
                        data collection facility; and
                          (ii) has a term of not more than 5 
                        years; or
                  (C) the Secretary determines, after providing 
                public notice of a proposed lease, easement, 
                right-of-way, or other authorization, that no 
                competitive interest exists.
          (4) Requirements.--The Secretary shall ensure that 
        any activity under this subsection is carried out in a 
        manner that provides for--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) [coordination] in consultation with 
                relevant Federal agencies;

           *       *       *       *       *       *       *

                  (J) consideration of--
                          (i) * * *
                          (ii) any other use of the sea or 
                        seabed, including use for a fishery, a 
                        sealane, a potential site of a 
                        deepwater port, a potential site for an 
                        alternative energy facility, or 
                        navigation;

           *       *       *       *       *       *       *

  (q) Review of Bond and Surety Amounts.--Not later than May 1, 
2011, and every 5 years thereafter, the Secretary shall review 
the minimum financial responsibility requirements for leases 
issued under this section and shall ensure that any bonds or 
surety required are adequate to comply with the requirements of 
this Act or the Oil Pollution Act of 1990 (33 U.S.C. 2701 et 
seq.).
  (r) Periodic Fiscal Review and Report.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of this subsection and every 3 years 
        thereafter, the Secretary shall carry out a review and 
        prepare a report setting forth--
                  (A)(i) the royalty and rental rates included 
                in new offshore oil and gas leases; and
                  (ii) the rationale for the rates;
                  (B) whether, in the view of the Secretary, 
                the royalty and rental rates described in 
                subparagraph (A) will yield a fair return to 
                the public while promoting the production of 
                oil and gas resources in a timely manner;
                  (C)(i) the minimum bond or surety amounts 
                required pursuant to offshore oil and gas 
                leases; and
                  (ii) the rationale for the minimum amounts;
                  (D) whether the bond or surety amounts 
                described in subparagraph (C) are adequate to 
                comply with subsection (q); and
                  (E) whether the Secretary intends to modify 
                the royalty or rental rates, or bond or surety 
                amounts, based on the review.
          (2) Public participation.--In carrying out a review 
        and preparing a report under paragraph (1), the 
        Secretary shall provide to the public an opportunity to 
        participate.
          (3) Report deadline.--Not later than 30 days after 
        the date on which the Secretary completes a report 
        under paragraph (1), the Secretary shall transmit 
        copies of the report to--
                  (A) the Committee on Energy and Natural 
                Resources of the Senate; and
                  (B) the Committee on Natural Resources of the 
                House of Representatives.
  (s) Comparative Review of Fiscal System.--
          (1) In general.--Not later than 2 years after the 
        date of enactment of this subsection and every 5 years 
        thereafter, the Secretary shall carry out a 
        comprehensive review of all components of the Federal 
        offshore oil and gas fiscal system, including 
        requirements for--
                  (A) bonus bids;
                  (B) rental rates;
                  (C) royalties; and
                  (D) oil and gas taxes.
          (2) Requirements.--
                  (A) Contents; scope.--A review under 
                paragraph (1) shall include--
                          (i) the information and analyses 
                        necessary to compare the offshore bonus 
                        bids, rents, royalties, and taxes of 
                        the Federal Government to the offshore 
                        bonus bids, rents, royalties, and taxes 
                        of other resource owners, including 
                        States and foreign countries; and
                          (ii) an assessment of the overall 
                        offshore oil and gas fiscal system in 
                        the United States, as compared to 
                        foreign countries.
                  (B) Independent advisory committee.--In 
                carrying out a review under paragraph (1), the 
                Secretary shall convene and seek the advice of 
                an independent advisory committee comprised of 
                oil and gas and fiscal experts from States, 
                Indian tribes, academia, the energy industry, 
                and appropriate nongovernmental organizations.
          (3) Report.--
                  (A) In general.--The Secretary shall prepare 
                a report that contains--
                          (i) the contents and results of the 
                        review carried out under paragraph (1) 
                        for the period covered by the report; 
                        and
                          (ii) any recommendations of the 
                        Secretary based on the contents and 
                        results of the review.
                  (B) Report deadline.--Not later than 30 days 
                after the date on which the Secretary completes 
                a report under paragraph (1), the Secretary 
                shall transmit copies of the report to the 
                Committee on Natural Resources of the House of 
                Representatives and the Committee on Energy and 
                Natural Resources of the Senate.
  [Sec. 9. Disposition of Revenues.--All rentals, royalties, 
and other sums paid to the Secretary or the Secretary of the 
Navy under any lease on the outer Continental Shelf for the 
period from June 5, 1950, to date, and thereafter shall be 
deposited in the Treasury of the United States and credited to 
miscellaneous receipts.]

SEC. 9. DISPOSITION OF REVENUES.

  (a) General.--Except as provided in subsections (b), (c), and 
(d), all rentals, royalties, and other sums paid to the 
Secretary or the Secretary of the Navy under any lease on the 
outer Continental Shelf for the period from June 5, 1950, to 
date, and thereafter shall be deposited in the Treasury of the 
United States and credited to miscellaneous receipts.
  (b) Land and Water Conservation Fund.--Effective for fiscal 
year 2011 and each fiscal year thereafter, $900,000,000 of the 
amounts referred to in subsection (a) shall be deposited in the 
Treasury of the United States and credited to the Land and 
Water Conservation Fund. These sums shall be available to the 
Secretary, without further appropriation or fiscal year 
limitation, for carrying out the purposes of the Land and Water 
Conservation Fund Act of 1965 (16 U.S.C. 460l-4 et seq.).
  (c) Historic Preservation Fund.--Effective for fiscal year 
2011 and each fiscal year thereafter, $150,000,000 of the 
amounts referred to in subsection (a) shall be deposited in the 
Treasury of the United States and credited to the Historic 
Preservation Fund. These sums shall be available to the 
Secretary, without further appropriation or fiscal year 
limitation, for carrying out the purposes of the National 
Historic Preservation Fund Act of 1966 (16 U.S.C. 470 et seq.).
  (d) Ocean Resources Conservation and Assistance Fund.--
Effective for each fiscal year 2011 and thereafter, 10 percent 
of the amounts referred to in subsection (a) shall be deposited 
in the Treasury of the United States and credited to the Ocean 
Resources Conservation and Assistance Fund established by the 
Consolidated Land, Energy, and Aquatic Resources Act of 2010. 
These sums shall be available to the Secretary, without further 
appropriation or fiscal year limitation, for carrying out the 
purposes of section 605 of the Consolidated Land, Energy, and 
Aquatic Resources Act of 2010.
  (e) Savings Provision.--Nothing in this section shall 
decrease the amount any State shall receive pursuant to section 
8(g) of this Act or section 105 of the Gulf of Mexico Energy 
Security Act (43 U.S.C. 1331 note).

           *       *       *       *       *       *       *

  Sec. 11. Geological and Geophysical Explorations.--(a)(1) Any 
agency of the United States and any person authorized by the 
Secretary may conduct geological and geophysical explorations 
in the outer Continental Shelf, which do not interfere with or 
endanger actual operations under any lease maintained or 
granted pursuant to this Act, and which are not [unduly harmful 
to] likely to harm aquatic life in such area.

           *       *       *       *       *       *       *

  (c)(1)(A) Except as otherwise provided in the Act, prior to 
commencing exploration pursuant to any oil and gas lease issued 
or maintained under this Act, the holder thereof shall submit 
an exploration plan to the Secretary for approval. Such plan 
may apply to more than one lease held by a lessee in any one 
region of the outer Continental Shelf, or by a group of lessees 
acting under a unitization, pooling, or drilling agreement, and 
shall be approved by the Secretary if he finds that such plan 
is consistent with the provisions of this Act, regulations 
prescribed under this Act, including regulations prescribed by 
the Secretary pursuant to paragraph (8) of section 5(a) of this 
Act, [and the provisions of such lease] the provisions of such 
lease, and other applicable environmental and natural resource 
conservation laws. The Secretary shall require such 
modifications of such plan as are necessary to achieve such 
consistency. [The Secretary shall approve such plan, as 
submitted or modified, within thirty days of its submission, 
except that the Secretary shall disapprove such plan if he 
determines that (A) any proposed activity under such plan would 
result in any condition described in section 5(a)(2)(A)(i) of 
this Act, and (B) such proposed activity cannot be modified to 
avoid such condition]
  (B) The Secretary shall approve such plan, as submitted or 
modified, within 90 days after its submission and it is made 
publicly accessible by the Secretary, or within such additional 
time as the Secretary determines is necessary to complete any 
environmental, safety, or other reviews, if the Secretary 
determines that--
          (i) any proposed activity under such plan is not 
        likely to result in any condition described in section 
        5(a)(2)(A)(i);
          (ii) the plan complies with other applicable 
        environmental or natural resource conservation laws; 
        and
          (iii) the applicant has demonstrated the capability 
        and technology to respond immediately and effectively 
        to a worst-case oil spill in real-world conditions in 
        the area of the proposed activity. If the Secretary 
        disapproves a plan under the preceding sentence, he 
        may, subject to section 5(a)(2)(B) of this Act, cancel 
        such lease and the lessee shall be entitled to 
        compensation in accordance with the regulations 
        prescribed under section 5(a)(2)(C) (i) or (ii) of this 
        Act.

           *       *       *       *       *       *       *

  [(3) An exploration plan submitted under this subsection 
shall include, in the degree of detail which the Secretary may 
by regulation require--
          [(A) a schedule of anticipated exploration activities 
        to be undertaken;
          [(B) a description of equipment to be used for such 
        activities;
          [(C) the general location of each well to be drilled; 
        and
          [(D) such other information deemed pertinent by the 
        Secretary.]
  (3) An exploration plan submitted under this subsection shall 
include, in the degree of detail that the Secretary may by 
regulation require--
          (A) a schedule of anticipated exploration activities 
        to be undertaken;
          (B) a detailed and accurate description of equipment 
        to be used for such activities, including--
                  (i) a description of each drilling unit;
                  (ii) a statement of the design and condition 
                of major safety-related pieces of equipment, 
                including independent third party certification 
                of such equipment; and
                  (iii) a description of any new technology to 
                be used;
          (C) a map showing the location of each well to be 
        drilled;
          (D) a scenario for the potential blowout of the well 
        involving the highest potential volume of liquid 
        hydrocarbons, along with a complete description of a 
        response plan to both control the blowout and manage 
        the accompanying discharge of hydrocarbons, including 
        the likelihood for surface intervention to stop the 
        blowout, the availability of a rig to drill a relief 
        well, an estimate of the time it would take to drill a 
        relief well, a description of other technology that may 
        be used to regain control of the well or capture 
        escaping hydrocarbons and the potential timeline for 
        using that technology for its intended purpose, and the 
        strategy, organization, and resources necessary to 
        avoid harm to the environment and human health from 
        hydrocarbons;
          (E) an analysis of the potential impacts of the 
        worst-case-scenario discharge of hydrocarbons on the 
        marine, coastal, and human environments for activities 
        conducted pursuant to the proposed exploration plan; 
        and
          (F) such other information deemed pertinent by the 
        Secretary.

           *       *       *       *       *       *       *

  (5) If the Secretary requires greater than 90 days to review 
an exploration plan submitted pursuant to any oil and gas lease 
issued or maintained under this Act, then the Secretary may 
provide for a suspension of that lease pursuant to section 5 
until the review of the exploration plan is completed.
  [(d) The Secretary may, by regulation, require any lessee 
operating under an approved exploration plan to obtain a permit 
prior to drilling any well in accordance with such plan.]
  (d) Drilling Permits.--
          (1) In general.--The Secretary shall, by regulation, 
        require that any lessee operating under an approved 
        exploration plan obtain a permit prior to drilling any 
        well in accordance with such plan, and prior to any 
        significant modification of the well design as 
        originally approved by the Secretary.
          (2) Engineering review required.--The Secretary may 
        not grant any drilling permit or modification of the 
        permit prior to completion of a full engineering review 
        of the well system, including a determination that 
        critical safety systems, including blowout prevention, 
        will utilize best available technology and that blowout 
        prevention systems will include redundancy and remote 
        triggering capability.
          (3) Operator safety and environmental management 
        required.--The Secretary shall not grant any drilling 
        permit or modification of the permit prior to 
        completion of a safety and environmental management 
        plan to be utilized by the operator during all well 
        operations.

           *       *       *       *       *       *       *

  (g) Any permit for geological explorations authorized by this 
section [shall be issued] may be issued only if the Secretary 
determines, in accordance with regulations issued by the 
Secretary and after consultation with the Secretary of 
Commerce, that--
          (1) * * *
          (2) the exploration will not interfere with or 
        endanger operations under any lease issued or 
        maintained pursuant to this Act; [and]
          (3) such exploration [will not be unduly harmful to]   
        is not likely to harm aquatic life in the area, result 
        in pollution, create hazardous or unsafe conditions, 
        unreasonably interfere with other uses of the area, or 
        disturb any site, structure, or object of historical or 
        archeological significance[.];
          (4) the exploration will be conducted in accordance 
        with other applicable environmental and natural 
        resource conservation laws;
          (5) in the case of geophysical surveys, the applicant 
        shall use the best available technologies and methods 
        to minimize impacts on marine life; and
          (6) in the case of drilling operations, the applicant 
        has available oil spill response and clean-up equipment 
        and technology that has been demonstrated to be capable 
        of effectively remediating a worst-case release of oil.

           *       *       *       *       *       *       *

  (i) Environmental Review of Plans.--The Secretary shall treat 
the approval of an exploration plan, or a significant revision 
of such a plan, as an agency action requiring preparation of an 
environmental assessment or environmental impact statement in 
accordance with the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and shall require that such plan--
          (1) be based on the best available technology to 
        ensure safety in carrying out both the drilling of the 
        well and any oil spill response; and
          (2) contain a technical systems analysis of the 
        safety of the proposed activity, the blowout prevention 
        technology, and the blowout and spill response plans.
  (j) Disapproval of Plan.--
          (1) In general.--The Secretary shall disapprove the 
        plan if the Secretary determines, because of 
        exceptional geological conditions in the lease areas, 
        exceptional resource values in the marine or coastal 
        environment, or other exceptional circumstances, that--
                  (A) implementation of the plan would probably 
                cause serious harm or damage to life (including 
                fish and other aquatic life), to property, to 
                any mineral deposits (in areas leased or not 
                leased), to the national security or defense, 
                or to the marine, coastal, or human 
                environments;
                  (B) the threat of harm or damage will not 
                disappear or decrease to an acceptable extent 
                within a reasonable period of time; and
                  (C) the advantages of disapproving the plan 
                outweigh the advantages of exploration.
          (2) Cancellation of lease for disapproval of plan.--
        If a plan is disapproved under this subsection, the 
        Secretary may cancel such lease in accordance with 
        subsection (c)(1) of this section.

           *       *       *       *       *       *       *

  Sec. 18. Outer Continental Shelf Leasing Program.--(a) The 
Secretary, pursuant to procedures set forth in subsections (c) 
and (d) of this section, shall prepare and periodically revise, 
and maintain an oil and gas leasing program to implement the 
policies of this Act. The leasing program shall consist of a 
schedule of proposed lease sales indicating, as precisely as 
possible, the size, timing, and location of leasing activity 
which he determines will best [meet national energy needs] 
balance national energy needs and the protection of the marine 
and coastal environment and all the resources in that 
environment, for the five-year period following its approval or 
reapproval. Such leasing program shall be prepared and 
maintained in a manner consistent with the following 
principles:
          (1) Management of the outer Continental Shelf shall 
        be conducted in a manner which [considers] gives equal 
        consideration to economic, social, and environmental 
        values of the renewable and nonrenewable resources 
        contained in the outer Continental Shelf, and the 
        potential impact of oil and gas exploration on other 
        resource values of the outer Continental Shelf and the 
        marine, coastal, and human environments.
          (2) Timing and location of exploration, development, 
        and production of oil and gas among the oil- and gas-
        bearing physiographic regions of the outer Continental 
        Shelf shall be based on a consideration of--
                  (A) [existing] the best available scientific 
                information, including at least three 
                consecutive years of data concerning the 
                geographical, geological, and ecological 
                characteristics of such regions;

           *       *       *       *       *       *       *

                  (D) the location of such regions with respect 
                to other uses of the sea and seabed, including 
                fisheries, navigation, existing or proposed 
                sealanes, potential sites of deepwater ports, 
                potential and existing sites of renewable 
                energy installations, and other anticipated 
                uses of the resources and space of the outer 
                Continental Shelf;

           *       *       *       *       *       *       *

                  (H) relevant environmental and predictive 
                information for different areas of the outer 
                Continental Shelf including the availability of 
                infrastructure to support oil spill response.
          (3) The Secretary shall select the timing and 
        location of leasing, [to the maximum extent 
        practicable,] so as to [obtain a proper balance 
        between] minimize the potential for environmental 
        [damage, the potential for the discovery of oil and 
        gas, and the potential for adverse impact on the 
        coastal zone.] damage and adverse impacts on the 
        marine, coastal, and human environments, and enhancing 
        the potential for the discovery of oil and gas.

           *       *       *       *       *       *       *

  (b) The leasing program shall include estimates of the 
appropriations and staff required to--
          (1) obtain environmental, marine, and energy resource 
        information and any other information needed to prepare 
        the leasing program required by this section;
          (2) analyze and interpret the environmental, marine, 
        and exploratory data and any other information which 
        may be compiled under the authority of this Act;
          (3) conduct environmental studies and prepare any 
        environmental impact statement required in accordance 
        with this Act and with section 102(2)(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)); [and]
          (4) supervise operations conducted pursuant to each 
        lease in the manner necessary to assure due diligence 
        in the exploration and development of the lease area 
        and compliance with the requirement of applicable laws 
        and regulations, and with the terms of the lease[.];
          (5) provide technical review and oversight of 
        exploration plans and a systems review of the safety of 
        well designs and other operational decisions;
          (6) conduct regular and thorough safety reviews and 
        inspections; and
          (7) enforce all applicable laws and regulations.
  (c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall invite and consider 
suggestions for such program from any interested Federal 
agency, including the National Oceanic and Atmospheric 
Administration and the Attorney General, in consultation with 
the Federal Trade Commission, and from the Governor of any 
State which may become an affected State under such proposed 
program. The Secretary may also invite or consider any 
suggestions from the executive of any affected local government 
in such an affected State, which have been previously submitted 
to the Governor of such State, and from any other person.
  (2) After such preparation and at least sixty days prior to 
publication of a proposed leasing program in the Federal 
Register pursuant to paragraph (3) of this subsection, the 
Secretary shall submit a copy of such proposed program to the 
Governor of each affected State for review and comment. The 
Secretary shall also submit a copy of such proposed program to 
the head of each Federal agency referred to in, or that 
otherwise provided suggestions under, paragraph (1). The 
Governor may solicit comments from those executives of local 
governments in his State which he, in his discretion, 
determines will be affected by the proposed program. If any 
comment by such Governor or head of a Federal agency is 
received by the Secretary at least fifteen days prior to 
submission to the Congress pursuant to such paragraph (3) and 
includes a request for any modification of such proposed 
program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such 
request in such modified form as the Secretary considers 
appropriate, and stating his reasons therefor. All such 
correspondence between the Secretary and Governor of any 
affected State, or between the Secretary and the head of a 
Federal agency, together with any additional information and 
data relating thereto, shall accompany such proposed program 
when it is submitted to the Congress.

           *       *       *       *       *       *       *

  (d)(1) * * *
  (2) At least sixty days prior to approving a proposed leasing 
program, the Secretary shall submit it to the President and the 
Congress, together with any comments received. Such submission 
shall indicate why any specific recommendation of the Attorney 
General, the head of a Federal agency, or a State or local 
government was not accepted.

           *       *       *       *       *       *       *

  (g) The Secretary may obtain from public sources, or purchase 
from private sources, any survey, data, report, or other 
information (including interpretations of such data, survey, 
report, or other information) which may be necessary to assist 
him in preparing any environmental impact statement and in 
making other evaluations required by this Act. Such information 
may include existing inventories and mapping of marine 
resources previously undertaken by the Department of the 
Interior and the National Oceanic and Atmospheric 
Administration, information provided by the Department of 
Defense, and other available data regarding energy or mineral 
resource potential, navigation uses, fisheries, aquaculture 
uses, recreational uses, habitat, conservation, and military 
uses on the outer Continental Shelf. Data of a classified 
nature provided to the Secretary under the provisions of this 
subsection shall remain confidential for such period of time as 
agreed to by the head of the department or agency from whom the 
information is requested. The Secretary shall maintain the 
confidentiality of all privileged or proprietary data or 
information for such period of time as is provided for in this 
Act, established by regulation, or agreed to by the parties.

           *       *       *       *       *       *       *

  (i) Research and Development.--The Secretary shall carry out 
a program of research and development to ensure the continued 
improvement of methodologies for characterizing resources of 
the outer Continental Shelf and conditions that may affect the 
ability to develop and use those resources in a safe, sound, 
and environmentally responsible manner. Such research and 
development activities may include activities to provide 
accurate estimates of energy and mineral reserves and potential 
on the Outer Continental Shelf and any activities that may 
assist in filling gaps in environmental data needed to develop 
each leasing program under this section.

           *       *       *       *       *       *       *

  [Sec. 20. Environmental Studies.--(a)(1) The Secretary shall 
conduct a study of any area or region included in any oil and 
gas lease sale or other lease in order to establish information 
needed for assessment and management of environmental impacts 
on the human, marine, and coastal environments of the outer 
Continental Shelf and the coastal areas which may be affected 
by oil and gas or other mineral development in such area or 
region.]

SEC. 20. ENVIRONMENTAL STUDIES.

  (a)(1) The Secretary, in cooperation with the Secretary of 
Commerce, shall conduct a study no less than once every three 
years of any area or region included in any oil and gas lease 
sale or other lease in order to establish information needed 
for assessment and management of environmental impacts on the 
human, marine, and coastal environments of the outer 
Continental Shelf and the coastal areas which may be affected 
by oil and gas or other mineral development in such area or 
region.

           *       *       *       *       *       *       *

  (c) The Secretary shall conduct research to identify and 
reduce data gaps related to impacts of deepwater hydrocarbon 
spills, including--
          (1) effects to benthic substrate communities and 
        species;
          (2) water column habitats and species;
          (3) surface and coastal impacts from spills 
        originating in deep waters; and
          (4) the use of dispersants.
  [(c)] (d) The Secretary shall, by regulation, establish 
procedures for carrying out his duties under this section, and 
shall plan and carry out such duties in full cooperation with 
affected States. To the extent that other Federal agencies have 
prepared environmental impact statements, are conducting 
studies, or are monitoring the affected human, marine, or 
coastal environment, the Secretary may utilize the information 
derived therefrom in lieu of directly conducting such 
activities. The Secretary may also utilize information obtained 
from any State of local government, or from any person, for the 
purposes of this section. For the purpose of carrying out his 
responsibilities under this section, the Secretary may by 
agreement utilize, with or without reimbursement, the services, 
personnel, or facilities of any Federal, State, or local 
government agency.
  [(d)] (e) The Secretary shall consider available relevant 
environmental information in making decisions (including those 
relating to exploration plans, drilling permits, and 
development and production plans), in developing appropriate 
regulations and lease conditions, and in issuing operating 
orders.
  [(e)] (f) As soon as practicable after the end of every 3 
fiscal years, the Secretary shall submit to the Congress and 
make available to the general public an assessment of the 
cumulative effect of activities conducted under this Act on the 
human, marine, and coastal environments.
  [(f)] (g) In executing his responsibilities under this 
section, the Secretary shall, to the maximum extent 
practicable, enter into appropriate arrangements to utilize on 
a reimbursable basis the capabilities of the Department of 
Commerce. In carrying out such arrangements, the Secretary of 
Commerce is authorized to enter into contract or grants with 
any person, organization, or entity with funds appropriated to 
the Secretary of the Interior pursuant to this Act.
  Sec. 21. Safety Regulations.--(a) [Upon the date of enactment 
of this section,] Within 6 months after the date of enactment 
of the Outer Continental Shelf Lands Act Amendments of 2010 and 
every three years thereafter, the Secretary and the Secretary 
of the Department in which the Coast Guard is operating shall, 
in consultation with each other and, as appropriate, with the 
heads of other Federal departments and agencies, promptly 
commence a joint study of the adequacy of existing safety and 
health regulations and of the technology, equipment, and 
techniques available for the exploration, development, and 
production of the minerals of the outer Continental Shelf. The 
results of such study shall be submitted to the President who 
shall submit a plan to the Congress of his proposals to promote 
safety and health in the exploration, development, and 
production of the minerals of the outer Continental Shelf.
  (b) In exercising their respective responsibilities [for the 
artificial islands, installations, and other devices referred 
to in section 4(a)(1) of] under this Act, the Secretary, and 
the Secretary of the Department in which the Coast Guard is 
operating, shall require, on all new drilling and production 
operations and, wherever practicable, on existing operations, 
the use of the best available and safest technologies [which 
the Secretary determines to be economically feasible], wherever 
failure of equipment would have a significant effect on safety, 
health, or the environment, except where the Secretary 
determines that the incremental benefits are clearly 
insufficient to justify the incremental costs of utilizing such 
technologies. Not later than 6 months after the date of 
enactment of the Outer Continental Shelf Lands Act Amendments 
of 2010 and every 3 years thereafter, the Secretary shall, in 
consultation with the Outer Continental Shelf Safety and 
Environmental Advisory Board established under title I of the 
Consolidated Land, Energy, and Aquatic Resources Act of 2010, 
identify and publish an updated list of (1) the best available 
technologies for key areas of well design and operation, 
including blowout prevention and blowout and oil spill response 
and (2) technology needs for which the Secretary intends to 
identify best available technologies in the future.

           *       *       *       *       *       *       *

  (g) Safety Case.--Not later than 6 months after the date of 
enactment of the Outer Continental Shelf Lands Act Amendments 
of 2010, the Secretary shall promulgate regulations requiring a 
safety case be submitted along with each new application for a 
permit to drill on the outer Continental Shelf. Not later than 
5 years after the date final regulations promulgated under this 
subsection go into effect, and not less than every 5 years 
thereafter, the Secretary shall enter into an arrangement with 
the National Academy of Engineering to conduct a study to 
assess the effectiveness of these regulations and to recommend 
improvements in their administration.
  (h) Offshore Technology Research and Risk Assessment 
Program.--
          (1) In general.--The Secretary shall carry out a 
        program of research, development, and risk assessment 
        to address technology and development issues associated 
        with exploration for, and development and production 
        of, energy and mineral resources on the outer 
        Continental Shelf, with the primary purpose of 
        informing its role relating to safety, environmental 
        protection, and spill response.
          (2) Specific focus areas.--The program under this 
        subsection shall include research and development 
        related to--
                  (A) risk assessment, using all available data 
                from safety and compliance records both within 
                the United States and internationally;
                  (B) analysis of industry trends in 
                technology, investment, and frontier areas;
                  (C) reviews of best available technologies, 
                including those associated with pipelines, 
                blowout preventer mechanisms, casing, well 
                design, and other associated infrastructure 
                related to offshore energy development;
                  (D) oil spill response and mitigation;
                  (E) risk associated with human factors;
                  (F) technologies and methods to reduce the 
                impact of geophysical exploration activities on 
                marine life; and
                  (G) renewable energy operations.
  Sec. 22. Enforcement.--(a) * * *
  (b) It shall be the duty of any holder of a lease or permit 
under this Act to--
          (1) maintain all places of employment within the 
        lease area or within the area covered by such permit in 
        compliance with occupational safety and health 
        standards and, in addition, free from [recognized] 
        uncontrolled hazards to employees of the lease holder 
        or permit holder or of any contractor or subcontractor 
        operating within such lease area or within the area 
        covered by such permit on the outer Continental Shelf;

           *       *       *       *       *       *       *

  [(c) The Secretary and the Secretary of the Department in 
which the Coast Guard is operating shall individually, or 
jointly if they so agree, promulgate regulations to provide 
for--
          [(1) scheduled onsite inspection, at least once a 
        year, of each facility on the outer Continental Shelf 
        which is subject to any environmental or safety 
        regulation promulgated pursuant to this Act, which 
        inspection shall include all safety equipment designed 
        to prevent or ameliorate blowouts, fires, spillages, or 
        other major accidents; and
          [(2) periodic onsite inspection without advance 
        notice to the operator of such facility to assure 
        compliance with such environmental or safety 
        regulations.]
  (c) Inspections.--The Secretary and the Secretary of the 
department in which the Coast Guard is operating shall 
individually, or jointly if they so agree, promulgate 
regulations to provide for--
          (1) scheduled onsite inspection, at least once a 
        year, of each facility on the outer Continental Shelf 
        which is subject to any environmental or safety 
        regulation promulgated pursuant to this Act, which 
        inspection shall include all safety equipment designed 
        to prevent or ameliorate blowouts, fires, spillages, or 
        other major accidents;
          (2) scheduled onsite inspection, at least once a 
        month, of each facility on the outer Continental Shelf 
        engaged in drilling operations and which is subject to 
        any environmental or safety regulation promulgated 
        pursuant to this Act, which inspection shall include 
        all safety equipment designed to prevent or ameliorate 
        blowouts, fires, spillages, or other major accidents;
          (3) periodic onsite inspection without advance notice 
        to the operator of such facility to assure compliance 
        with such environmental or safety regulations; and
          (4) periodic audits of each required safety and 
        environmental management plan, and any associated 
        safety case, both with respect to their implementation 
        at each facility on the outer Continental Shelf for 
        which such a plan or safety case is required and with 
        respect to onshore management support for activities at 
        such a facility.
  (d)(1) The Secretary or the Secretary of the Department in 
which the Coast Guard is operating shall make an investigation 
and public report on [each major fire and each major oil 
spillage] each major fire, each major oil spillage, each loss 
of well control, and any other accident that presented a 
serious risk to human or environmental safety occurring as a 
result of operations conducted pursuant to this Act, and may, 
in his discretion, make an investigation and report of lesser 
oil spillages. For purposes of this subsection, a major oil 
spillage is any spillage in one instance of more than two 
hundred barrels of oil during a period of thirty days. All 
holders of leases or permits issued or maintained under this 
Act shall cooperate with the appropriate Secretary in the 
course of any such investigation, as a condition of the lease 
or permit.
  (2) The Secretary or the Secretary of the Department in which 
the Coast Guard is operating shall make an investigation and 
public report on any death or serious injury occurring as a 
result of operations conducted pursuant to this Act, and may, 
in his discretion, make an investigation and report of any 
injury. For purposes of this subsection, a serious injury is 
one resulting in substantial impairment of any bodily unit or 
function. All holders of leases or permits issued or maintained 
under this Act shall cooperate with the appropriate Secretary 
in the course of any such investigation as a condition of the 
lease or permit.
  (e) The Secretary, or, in the case of occupational safety and 
health, the Secretary of the Department in which the Coast 
Guard is operating, may review any allegation from any person 
of the existence of a violation of a safety regulation issued 
under this Act. Any such allegation from any employee of the 
lessee or any subcontractor of the lessee shall be investigated 
by the Secretary.

           *       *       *       *       *       *       *

  (g) Information on Causes and Corrective Actions.--For any 
incident investigated under this section, the Secretary shall 
promptly make available to all lessees and the public technical 
information about the causes and corrective actions taken. All 
data and reports related to any such incident shall be 
maintained in a data base available to the public.
  (h) Operator's Annual Certification.--
          (1) The Secretary, in cooperation with the Secretary 
        of the department in which the Coast Guard is 
        operating, shall require all operators of all new and 
        existing drilling and production operations to annually 
        certify that their operations are being conducted in 
        accordance with applicable law and regulations.
          (2) Each certification shall include, but, not be 
        limited to, statements that verify the operator has--
                  (A) examined all well control system 
                equipment (both surface and subsea) being used 
                to ensure that it has been properly maintained 
                and is capable of shutting in the well during 
                emergency operations;
                  (B) examined and conducted tests to ensure 
                that the emergency equipment has been function-
                tested and is capable of addressing emergency 
                situations;
                  (C) reviewed all rig drilling, casing, 
                cementing, well abandonment (temporary and 
                permanent), completion, and workover practices 
                to ensure that well control is not compromised 
                at any point while emergency equipment is 
                installed on the wellhead;
                  (D) reviewed all emergency shutdown and 
                dynamic positioning procedures that interface 
                with emergency well control operations; and
                  (E) taken the necessary steps to ensure that 
                all personnel involved in well operations are 
                properly trained and capable of performing 
                their tasks under both normal drilling and 
                emergency well control operations.
  (i) CEO Annual Certification.--Operators of all drilling and 
production operations shall annually submit to the Secretary a 
general statement by the operator's chief executive officer 
that certifies to the operators' compliance with all applicable 
laws and operating regulations.
  (j) Third Party Certification.--All operators that modify or 
upgrade any emergency equipment placed on any operation to 
prevent blow-outs or other well control events, shall have an 
independent third party conduct a detailed physical inspection 
and design review of such equipment within 30-days of its 
installation. The independent third party shall certify that 
the equipment will operate as originally designed and any 
modifications or upgrades conducted after delivery have not 
compromised the design, performance or functionality of the 
equipment. Failure to comply with this subsection shall result 
in suspension of the lease.
  Sec. 23. Citizen Suits, Court Jurisdiction, and Judicial 
Review.--(a) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  (3) The judicial review specified in paragraphs (1) and (2) 
of this subsection shall be available only to a person who (A) 
participated in the administrative proceedings related to the 
actions specified in such paragraphs, (B) is adversely affected 
or aggrieved by such action, (C) files a petition for review of 
the Secretary's action within [sixty] 90 days after the date of 
such action, and (D) promptly transmits copies of the petition 
to the Secretary and to the Attorney General.

           *       *       *       *       *       *       *

  Sec. 24. Remedies and Penalties.--(a) * * *
  [(b)(1)   Except as provided in paragraph (2), if any person 
fails to comply with any provision of this Act, or any term of 
a lease, or permit issued pursuant to this Act, or any 
regulation or order issued under this Act, after notice of such 
failure and expiration of any reasonable period allowed for 
corrective action, such person shall be liable for a civil 
penalty of not more than $20,000 for each day of the 
continuance of such failure. The Secretary may assess, collect, 
and compromise any such penalty. No penalty shall be assessed 
until the person charged with a violation has been given an 
opportunity for a hearing. The Secretary shall, by regulation 
at least every 3 years, adjust the penalty specified in this 
paragraph to reflect any increases in the Consumer Price Index 
(all items, United States city average) as prepared by the 
Department of Labor.
  [(2) If a failure described in paragraph (1) constitutes or 
constituted a threat of serious, irreparable, or immediate harm 
or damage to life (including fish and other aquatic life), 
property, any mineral deposit, or the marine, coastal, or human 
environment, a civil penalty may be assessed without regard to 
the requirement of expiration of a period allowed for 
corrective action.]
  (b)(1) Except as provided in paragraph (2), any person who 
fails to comply with any provision of this Act, or any term of 
a lease, license, or permit issued pursuant to this Act, or any 
regulation or order issued under this Act, shall be liable for 
a civil administrative penalty of not more than $75,000 for 
each day of the continuance of such failure. The Secretary may 
assess, collect, and compromise any such penalty. No penalty 
shall be assessed until the person charged with a violation has 
been given an opportunity for a hearing. The Secretary shall, 
by regulation at least every 3 years, adjust the penalty 
specified in this paragraph to reflect any increases in the 
Consumer Price Index (all items, United States city average) as 
prepared by the Department of Labor.
  (2) If a failure described in paragraph (1) constitutes or 
constituted a threat of harm or damage to life (including fish 
and other aquatic life), property, any mineral deposit, or the 
marine, coastal, or human environment, a civil penalty of not 
more than $150,000 shall be assessed for each day of the 
continuance of the failure.
  (c) Any person who knowingly and willfully (1) violates any 
provision of this Act, any term of a lease, license, or permit 
issued pursuant to this Act, or any regulations or order issued 
under the authority of this Act designed to protect health, 
safety, or the environment or conserve natural resources, (2) 
makes any false statement, representation, or certification in 
any application, record, report, or other document filed or 
required to be maintained under this Act, (3) falsifies, 
tampers with, or renders inaccurate any monitoring device or 
method of record required to be maintained under this Act, or 
(4) reveals any data or information required to be kept 
confidential by this Act shall, upon conviction, be punished by 
a fine of not more than [$100,000] $10,000,000, or by 
imprisonment for not more than ten years, or both. Each day 
that a violation under clause (1) of this subsection continues, 
or each day that any monitoring devise or data recorder remains 
inoperative or inaccurate because of any activity described in 
clause (3) of this subsection, shall constitute a separate 
violation.
  (d) Whenever a corporation or other entity is subject to 
prosecution under subsection (c) of this section, any officer 
or agent of such corporation or entity who knowingly and 
willfully, or with willful disregard, authorized, ordered, or 
carried out the proscribed activity shall be subject to the 
same fines or imprisonment, or both, as provided for under 
subsection (c) of this section.

           *       *       *       *       *       *       *

  Sec. 25. Oil and Gas Development and Production.--(a)(1) 
Prior to development and production pursuant to an oil and gas 
lease issued after the date of enactment of this section in any 
area of the outer Continental Shelf, [other than the Gulf of 
Mexico,] or issued or maintained prior to such date of 
enactment in any area of the outer Continental Shelf, [other 
than the Gulf of Mexico,] with respect to which no oil or gas 
has been discovered in paying quantities prior to such date of 
enactment, the lessee shall submit a development and production 
plan (hereinafter in this section referred to as a ``plan'') to 
the Secretary, for approval pursuant to this section.

           *       *       *       *       *       *       *

  (b) After the date of enactment of this section, no oil and 
gas lease may be issued pursuant to this Act in any region of 
the outer Continental Shelf, [other than the Gulf of Mexico,] 
unless such lease requires that development and production 
activities be carried out in accordance with a plan which 
complies with the requirements of this section.
  (c) A plan may apply to more than one oil and gas lease, and 
shall set forth, in the degree of detail established by 
regulations issued by the Secretary--
          (1) * * *

           *       *       *       *       *       *       *

          (5) an expected rate of development and production 
        and a time schedule for performance; [and]   
          (6) a detailed and accurate description of equipment 
        to be used for the drilling of wells pursuant to 
        activities included in the development and production 
        plan, including--
                  (A) a description of the drilling unit or 
                units;
                  (B) a statement of the design and condition 
                of major safety-related pieces of equipment, 
                including independent third-party certification 
                of such equipment; and
                  (C) a description of any new technology to be 
                used;
          (7) a scenario for the potential blowout of each well 
        to be drilled as part of the plan involving the highest 
        potential volume of liquid hydrocarbons, along with a 
        complete description of a response plan to both control 
        the blowout and manage the accompanying discharge of 
        hydrocarbons, including the likelihood for surface 
        intervention to stop the blowout, the availability of a 
        rig to drill a relief well, an estimate of the time it 
        would take to drill a relief well, a description of 
        other technology that may be used to regain control of 
        the well or capture escaping hydrocarbons and the 
        potential timeline for using that technology for its 
        intended purpose, and the strategy, organization, and 
        resources necessary to avoid harm to the environment 
        and human health from hydrocarbons;
          (8) an analysis of the potential impacts of the 
        worst-case-scenario discharge on the marine, coastal, 
        and human environments for activities conducted 
        pursuant to the proposed development and production 
        plan;
          (9) a comprehensive survey and characterization of 
        the coastal or marine environment within the area of 
        operation, including bathymetry, currents and 
        circulation patterns within the water column, and 
        descriptions of benthic and pelagic environments;
          (10) a description of the technologies to be deployed 
        on the facilities to routinely observe and monitor in 
        real time the marine environment throughout the 
        duration of operations, and a description of the 
        process by which such observation data and information 
        will be made available to Federal regulators and to the 
        System established under section 12304 of Public Law 
        111-11 (33 U.S.C. 3603); and
          [(6)] (11) such other relevant information as the 
        Secretary may by regulation require.

           *       *       *       *       *       *       *

  [(e)(1)   At least once the Secretary shall declare the 
approval of a development and production plan in any area or 
region (as defined by the Secretary) of the outer Continental 
Shelf,   to be a major Federal action.]
  (e)(1) The Secretary shall treat the approval of a 
development and production plan, or a significant revision of a 
development and production plan, as an agency action requiring 
preparation of an environmental assessment or environmental 
impact statement, in accordance with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.).

           *       *       *       *       *       *       *

  [(g) If approval of a development and production plan is not 
found to be a major Federal action, the Governor of any 
affected State and the executive of any affected local 
government shall have sixty days from the date of receipt of 
the plan from the Secretary to submit comments and 
recommendations. Prior to submitting recommendations to the 
Secretary, the executive of any affected local government must 
forward his recommendations to the Governor of his State. Such 
comments and recommendations shall be made available to the 
public upon request. In addition, any interested person may 
submit comments and recommendations.]
  [(h)] (g)(1) After reviewing the record of any public hearing 
held with respect to the approval of a plan pursuant to the 
National Environmental Policy Act of 1969 or the comments and 
recommendations submitted under subsection (g) of this section, 
the Secretary shall, within sixty days after the release of the 
final environmental impact statement prepared pursuant to the 
National Environmental Policy Act of 1969 in accordance with 
subsection (e) of this section, or sixty days after the period 
provided for comment under subsection (g) of this section, 
approve, disapprove, or require modifications of the plan. The 
Secretary shall require modification of a plan if he determines 
that the lessee has failed to make adequate provision in such 
plan for safe operations on the lease area or for protection of 
the human, marine, or coastal environment, including compliance 
with the regulations prescribed by the Secretary pursuant to 
[paragraph (8) of section 5(a) of this Act] paragraph (12) of 
section 5(a) of this Act. Any modification required by the 
Secretary which involves activities for which a Federal license 
or permit is required and which affects any land use or water 
use in the coastal zone of a State with a coastal zone 
management program approved pursuant to section 306 of the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1455) must 
receive concurrence by such State with respect to the 
consistency certification accompanying such plan pursuant to 
section 307(c)(3)(B) (i) or (ii) of such Act unless the 
Secretary of Commerce makes the finding authorized by section 
307(c)(3)(B)(iii) of such Act. The Secretary shall disapprove a 
plan--
          (A) if the lessee fails to demonstrate that he can 
        comply with the requirements of this Act or other 
        applicable Federal law, including the regulations 
        prescribed by the Secretary pursuant to [paragraph (8) 
        of section 5(a) of this Act] paragraph (12) of section 
        5(a) of this Act;

           *       *       *       *       *       *       *

  (2) The Secretary shall not approve a development and 
production plan, or a significant revision to such a plan, 
unless-
          (A) the plan is in compliance with all other 
        applicable environmental and natural resource 
        conservation laws; and
          (B) the applicant has available oil spill response 
        and clean-up equipment and technology that has been 
        demonstrated to be capable of effectively remediating 
        the projected worst-case release of oil from activities 
        conducted pursuant to the development and production 
        plan.
  [(2)] (3)(A) * * *

           *       *       *       *       *       *       *

  [(3)] (4) The Secretary shall, from time to time, review each 
plan approved under this section. Such review shall be based 
upon changes in available information and other onshore or 
offshore conditions affecting or impacted by development and 
production pursuant to such plan. If the review indicates that 
the plan should be revised to meet the requirements of this 
subsection, the Secretary shall require such revision.
  [(i)] (h) The Secretary may approve any revision of an 
approved plan proposed by the lessee if he determines that such 
revision will lead to greater recovery of oil and natural gas, 
improve the efficiency, safety and environmental protection of 
the recovery operation, is the only means available to avoid 
substantial economic hardship to the lessee, or is otherwise 
not inconsistent with the provisions of this Act, to the extent 
such revision is consistent with protection of the human, 
marine, and coastal environments. Any revision of an approved 
plan which the Secretary determines is significant shall be 
reviewed in accordance with subsections (d) through (f) of this 
section.
  [(j)] (i) Whenever the owner of any lease fails to submit a 
plan in accordance with regulations issued under this section, 
or fails to comply with an approved plan, the lease may be 
canceled in accordance with sections 5 (c) and (d). Termination 
of a lease because of failure to comply with an approved plan, 
including required modifications or revisions, shall not 
entitle a lessee to any compensation.
  [(k)] (j) If any development and production plan submitted to 
the Secretary pursuant to this section provides for the 
production and transportation of natural gas, the lessee shall 
contemporaneously submit to the Federal Energy Regulatory 
Commission that portion of such plan which relates to 
production of natural gas and the facilities for transportation 
of natural gas. The Secretary and the Federal Energy Regulatory 
Commission shall agree as to which of them shall prepare an 
environmental impact statement pursuant to the National 
Environmental Policy Act of 1969 applicable to such portion of 
such plan, or conduct studies as to the effect on the 
environment of implementing it. Thereafter, the findings and 
recommendations by the agency preparing such environmental 
impact statement or conducting such studies pursuant to such 
agreement shall be adopted by the other agency, and such other 
agency shall not independently prepare another environmental 
impact statement or duplicate such studies with respect to such 
portion of such plan, but the Federal Energy Regulatory 
Commission, in connection with its review of an application for 
a certificate of public convenience and necessity applicable to 
such transportation facilities pursuant to section 7 of the 
Natural Gas Act (15 U.S.C. 717), may prepare such environmental 
studies or statement relevant to certification of such 
transportation facilities as have not been covered by an 
environmental impact statement or studies prepared by the 
Secretary. The Secretary, in consultation with the Federal 
Energy Regulatory Commission, shall promulgate rules to 
implement this subsection, but the Federal Energy Regulatory 
Commission shall retain sole authority with respect to rules 
and procedures applicable to the filing of any application with 
the Commission and to all aspects of the Commission's review 
of, and action on, any such application.
  [(l) The Secretary may require the provisions of this section 
to apply to an oil and gas lease issued or maintained under 
this Act, which is located in that area of the Gulf of Mexico 
which is adjacent to the State of Florida, as determined 
pursuant to section 4(a)(2) of this Act.]
  Sec. 26. Outer Continental Shelf Oil and Gas Information 
Program.--(a)(1)(A) Any lessee or permittee conducting any 
exploration for, or development or production of, oil or gas 
pursuant to this Act shall provide the Secretary access to all 
data and information (including processed, analyzed, and 
interpreted information) obtained from such activity and shall 
provide copies of such data and information as the Secretary 
may request. Such data and information shall be provided in 
accordance with regulations which the Secretary shall 
prescribed[.], provided that such data shall be transmitted in 
electronic format either in real-time or as quickly as 
practicable following the generation of such data.

           *       *       *       *       *       *       *

  [(C) Whenever any data and information is provided to the 
Secretary, pursuant to subparagraph (A) of this paragraph--
          [(i) by a lessee, in the form and manner of 
        processing which is utilized by such lessee in the 
        normal conduct of his business, the Secretary shall pay 
        the reasonable cost of reproducing such data and 
        information;
          [(ii) by a lessee, in such other form and manner of 
        processing as the Secretary may request, the Secretary 
        shall pay the reasonable cost of processing and 
        reproducing such data and information;
          [(iii) by a permittee, in the form and manner of 
        processing which is utilized by such permittee in the 
        normal conduct of his business, the Secretary shall pay 
        such permittee the reasonable cost of reproducing such 
        data and information for the Secretary and shall pay at 
        the lowest rate available to any purchaser for 
        processing such data and information the costs 
        attributable to such processing; and
          [(iv) by the permittee, in such other form and manner 
        of processing as the Secretary may request, the 
        Secretary shall pay such permittee the reasonable cost 
        of processing and reproducing such data and information 
        for the Secretary,
pursuant to such regulations as he may prescribe.]
  (C) Lessees engaged in drilling operations shall provide to 
the Secretary all daily reports generated by the lessee, or any 
daily reports generated by contractors or subcontractors 
engaged in or supporting drilling operations on the lessee's 
lease, no more than 24 hours after the end of the day for which 
they should have been generated.

           *       *       *       *       *       *       *

  Sec. 27. Federal Purchase and Disposition of Oil and Gas.--
(a)(1) Except as may be necessary to comply with the provisions 
of sections 6 and 7 of this Act, all royalties or net profit 
shares, or both accruing to the United States under any oil and 
gas lease issued or maintained in accordance with this Act, 
shall, on demand of the Secretary, be paid in oil or gas[.], 
except that the Secretary shall not conduct a regular program 
to take oil and gas lease royalties in oil or gas.

           *       *       *       *       *       *       *

  [Sec. 29. Restrictions on Employment.--No full-time]

SEC. 29. RESTRICTIONS ON EMPLOYMENT.

  (a) In General.--No full-time officer or employee of the 
Department of the Interior who directly or indirectly 
discharged duties or responsibilities under this Act[, and who 
was at any time during the twelve months preceding the 
termination of his employment with the Department compensated 
under the Executive Schedule or compensated at or above the 
annual rate of basic pay for grade GS-16 of the General 
Schedule] shall--
          (1) within two years after his employment with the 
        Department has ceased--
                  (A) knowingly act as agent or attorney for, 
                or otherwise represent or advise, any other 
                person (except the United States) in any formal 
                or informal appearance before;
                  (B) [with the intent to influence, make] act 
                with the intent to influence, directly or 
                indirectly, or make any oral or written 
                communication on behalf of any other person 
                (except the United States) to; or

           *       *       *       *       *       *       *

        any department, agency, or court of the United States, 
        or any officer or employee thereof, in connection with 
        any judicial or other proceeding, application, request 
        for a ruling or other determination, regulation, order, 
        lease, permit, rulemaking, inspection or enforcement 
        action, or other particular matter involving a specific 
        party or parties in which the United States is a party 
        or has a direct and substantial interest which was 
        actually pending under his official responsibility as 
        an officer or employee within a period of one year 
        prior to the termination of such responsibility or in 
        which he participated personally and substantially as 
        an officer or employee; [or]
          (2) within one year after his employment with the 
        Department has ceased--
                  (A) knowingly act as agent or attorney for, 
                or otherwise represent or advise, any other 
                person (except the United States) in any formal 
                or informal appearance before; or
                  (B) [with the intent to influence, make] act 
                with the intent to influence, directly or 
                indirectly, or make any oral or written 
                communication on behalf of any other person 
                (except the United States) to,
        the Department of the Interior, or any officer or 
        employee thereof, in connection with any judicial, 
        rulemaking, regulation, order, lease, permit, 
        regulation, or other particular matter which is pending 
        before the Department of the Interior or in which the 
        Department has a direct and substantial interest[.]; or
          (3) during the 2-year period beginning on the date on 
        which the employment of the officer or employee ceased 
        at the Department, accept employment or compensation 
        from any party that has a direct and substantial 
        interest--
                  (A) that was pending under the official 
                responsibility of the officer or employee as an 
                officer at any point during the 2-year period 
                preceding the date of termination of the 
                responsibility; or
                  (B) in which the officer or employee 
                participated personally and substantially as an 
                officer or employee of the Department.
  (b) Prior Dealings.--No full-time officer or employee of the 
Department of the Interior who directly or indirectly 
discharged duties or responsibilities under this Act shall 
participate personally and substantially as a Federal officer 
or employee, through decision, approval, disapproval, 
recommendation, the rendering of advice, investigation, or 
otherwise, in a proceeding, application, request for a ruling 
or other determination, contract, claim, controversy, charge, 
accusation, inspection, enforcement action, or other particular 
matter in which, to the knowledge of the officer or employee--
          (1) the officer or employee or the spouse, minor 
        child, or general partner of the officer or employee 
        has a financial interest;
          (2) any organization in which the officer or employee 
        is serving as an officer, director, trustee, general 
        partner, or employee has a financial interest;
          (3) any person or organization with whom the officer 
        or employee is negotiating or has any arrangement 
        concerning prospective employment has a financial 
        interest; or
          (4) any person or organization in which the officer 
        or employee has, within the preceding 1-year period, 
        served as an officer, director, trustee, general 
        partner, agent, attorney, consultant, contractor, or 
        employee.
  (c) Gifts From Outside Sources.--No full-time officer or 
employee of the Department of the Interior who directly or 
indirectly discharges duties or responsibilities under this Act 
shall, directly or indirectly, solicit or accept any gift in 
violation of subpart B of part 2635 of title 5, Code of Federal 
Regulations (or successor regulations).
  (d) Penalty.--Any person that violates subsection (a) or (b) 
shall be punished in accordance with section 216 of title 18, 
United States Code.
  Sec. 30. Documentation, Registry, and Manning Requirements.--
(a) Within six months after the date of enactment of this 
section, the Secretary of the Department in which the Coast 
Guard is operating [shall issue regulations which] shall issue 
regulations that shall be supplemental to and complementary 
with and under no circumstances a substitution for the 
provisions of the Constitution and laws of the United States 
extended to the subsoil and seabed of the outer Continental 
Shelf pursuant to section 4(a)(1) of this Act, except insofar 
as such laws would otherwise apply to individuals who have 
extraordinary ability in the sciences, arts, education, or 
business, which has been demonstrated by sustained national or 
international acclaim, and that require that any vessel, rig, 
platform, or other vehicle or structure--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Buy and Build American.--It is the intention of the 
Congress that this Act, among other things, result in a healthy 
and growing American industrial, manufacturing, transportation, 
and service sector employing the vast talents of America's 
workforce to assist in the development of energy from the outer 
Continental Shelf. Moreover, the Congress intends to monitor 
the deployment of personnel and material on the outer 
Continental Shelf to encourage the development of American 
technology and manufacturing to enable United States workers to 
benefit from this Act by good jobs and careers, as well as the 
establishment of important industrial facilities to support 
expanded access to American resources.

           *       *       *       *       *       *       *

                              ----------                              


ENERGY POLICY ACT OF 2005

           *       *       *       *       *       *       *


TITLE III--OIL AND GAS

           *       *       *       *       *       *       *


Subtitle E--Production Incentives

           *       *       *       *       *       *       *


[SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
                    SHALLOW WATERS OF THE GULF OF MEXICO.

  [(a) Royalty Incentive Regulations for Ultra Deep Gas 
Wells.--
          [(1) In general.--Not later than 180 days after the 
        date of enactment of this Act, in addition to any other 
        regulations that may provide royalty incentives for 
        natural gas produced from deep wells on oil and gas 
        leases issued pursuant to the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.), the Secretary shall 
        issue regulations granting royalty relief suspension 
        volumes of not less than 35 billion cubic feet with 
        respect to the production of natural gas from ultra 
        deep wells on leases issued in shallow waters less than 
        400 meters deep located in the Gulf of Mexico wholly 
        west of 87 degrees, 30 minutes west longitude. 
        Regulations issued under this subsection shall be 
        retroactive to the date that the notice of proposed 
        rulemaking is published in the Federal Register.
          [(2) Suspension volumes.--The Secretary may grant 
        suspension volumes of not less than 35 billion cubic 
        feet in any case in which--
                  [(A) the ultra deep well is a sidetrack; or
                  [(B) the lease has previously produced from 
                wells with a perforated interval the top of 
                which is at least 15,000 feet true vertical 
                depth below the datum at mean sea level.
          [(3) Definitions.-- In this subsection:
                  [(A) Ultra deep well.--The term ``ultra deep 
                well'' means a well drilled with a perforated 
                interval, the top of which is at least 20,000 
                true vertical depth below the datum at mean sea 
                level.
                  [(B) Sidetrack.--
                          [(i) In general.--The term 
                        ``sidetrack'' means a well resulting 
                        from drilling an additional hole to a 
                        new objective bottom-hole location by 
                        leaving a previously drilled hole.
                          [(ii) Inclusion.--The term 
                        ``sidetrack'' includes--
                                  [(I) drilling a well from a 
                                platform slot reclaimed from a 
                                previously drilled well;
                                  [(II) re-entering and 
                                deepening a previously drilled 
                                well; and
                                  [(III) a bypass from a 
                                sidetrack, including drilling 
                                around material blocking a hole 
                                or drilling to straighten a 
                                crooked hole.
  [(b) Royalty Incentive Regulations for Deep Gas Wells.--Not 
later than 180 days after the date of enactment of this Act, in 
addition to any other regulations that may provide royalty 
incentives for natural gas produced from deep wells on oil and 
gas leases issued pursuant to the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331 et seq.), the Secretary shall issue 
regulations granting royalty relief suspension volumes with 
respect to production of natural gas from deep wells on leases 
issued in waters more than 200 meters but less than 400 meters 
deep located in the Gulf of Mexico wholly west of 87 degrees, 
30 minutes west longitude. The suspension volumes for deep 
wells within 200 to 400 meters of water depth shall be 
calculated using the same methodology used to calculate the 
suspension volumes for deep wells in the shallower waters of 
the Gulf of Mexico, and in no case shall the suspension volumes 
for deep wells within 200 to 400 meters of water depth be lower 
than those for deep wells in shallower waters. Regulations 
issued under this subsection shall be retroactive to the date 
that the notice of proposed rulemaking is published in the 
Federal Register.
  [(c) Limitations.--The Secretary may place limitations on the 
royalty relief granted under this section based on market 
price. The royalty relief granted under this section shall not 
apply to a lease for which deep water royalty relief is 
available.

[SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

  [(a) In General.--Subject to subsections (b) and (c), for 
each tract located in water depths of greater than 400 meters 
in the Western and Central Planning Area of the Gulf of Mexico 
(including the portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude), any oil or gas lease sale 
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) occurring during the 5-year period beginning on the date 
of enactment of this Act shall use the bidding system 
authorized under section 8(a)(1)(H) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
  [(b) Suspension of Royalties.--The suspension of royalties 
under subsection (a) shall be established at a volume of not 
less than--
          [(1) 5,000,000 barrels of oil equivalent for each 
        lease in water depths of 400 to 800 meters;
          [(2) 9,000,000 barrels of oil equivalent for each 
        lease in water depths of 800 to 1,600 meters;
          [(3) 12,000,000 barrels of oil equivalent for each 
        lease in water depths of 1,600 to 2,000 meters; and
          [(4) 16,000,000 barrels of oil equivalent for each 
        lease in water depths greater than 2,000 meters.
  [(c) Limitation.--The Secretary may place limitations on 
royalty relief granted under this section based on market 
price.]

           *       *       *       *       *       *       *


Subtitle G--Miscellaneous

           *       *       *       *       *       *       *


SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

  (a) * * *
  (b) Coordinated OCS Mapping Initiative.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Availability of data and information.--All heads 
        of departments and agencies of the Federal Government 
        shall, upon request of the Secretary, provide to the 
        Secretary all data and information that the Secretary 
        deems necessary for the purpose of including such data 
        and information in the mapping initiative, except that 
        no department or agency of the Federal Government shall 
        be required to provide any data or information that is 
        privileged or proprietary.

           *       *       *       *       *       *       *


[SEC. 390. NEPA REVIEW.

  [(a) NEPA Review.--Action by the Secretary of the Interior in 
managing the public lands, or the Secretary of Agriculture in 
managing National Forest System Lands, with respect to any of 
the activities described in subsection (b) shall be subject to 
a rebuttable presumption that the use of a categorical 
exclusion under the National Environmental Policy Act of 1969 
(NEPA) would apply if the activity is conducted pursuant to the 
Mineral Leasing Act for the purpose of exploration or 
development of oil or gas.
  [(b) Activities Described.--The activities referred to in 
subsection (a) are the following:
          [(1) Individual surface disturbances of less than 5 
        acres so long as the total surface disturbance on the 
        lease is not greater than 150 acres and site-specific 
        analysis in a document prepared pursuant to NEPA has 
        been previously completed.
          [(2) Drilling an oil or gas well at a location or 
        well pad site at which drilling has occurred previously 
        within 5 years prior to the date of spudding the well.
          [(3) Drilling an oil or gas well within a developed 
        field for which an approved land use plan or any 
        environmental document prepared pursuant to NEPA 
        analyzed such drilling as a reasonably foreseeable 
        activity, so long as such plan or document was approved 
        within 5 years prior to the date of spudding the well.
          [(4) Placement of a pipeline in an approved right-of-
        way corridor, so long as the corridor was approved 
        within 5 years prior to the date of placement of the 
        pipeline.
          [(5) Maintenance of a minor activity, other than any 
        construction or major renovation or a building or 
        facility.]

           *       *       *       *       *       *       *


TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


 Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other 
Petroleum Resources

           *       *       *       *       *       *       *


SEC. 999H. FUNDING.

  [(a) Oil and Gas Lease Income.--For each of fiscal years 2007 
through 2017, from any Federal royalties, rents, and bonuses 
derived from Federal onshore and offshore oil and gas leases 
issued under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181 et 
seq.) which are deposited in the Treasury, and after 
distribution of any such funds as described in subsection (c), 
$50,000,000 shall be deposited into the Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Research Fund 
(in this section referred to as the ``Fund''). For purposes of 
this section, the term ``royalties'' excludes proceeds from the 
sale of royalty production taken in kind and royalty production 
that is transferred under section 27(a)(3) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
  [(b) Obligational Authority.--Monies in the Fund shall be 
available to the Secretary for obligation under this part 
without fiscal year limitation, to remain available until 
expended.
  [(c) Prior Distributions.--The distributions described in 
subsection (a) are those required by law--
          [(1) to States and to the Reclamation Fund under the 
        Mineral Leasing Act (30 U.S.C. 191(a)); and
          [(2) to other funds receiving monies from Federal oil 
        and gas leasing programs, including--
                  [(A) any recipients pursuant to section 8(g) 
                of the Outer Continental Shelf Lands Act (43 
                U.S.C. 1337(g));
                  [(B) the Land and Water Conservation Fund, 
                pursuant to section 2(c) of the Land and Water 
                Conservation Fund Act of 1965 (16 U.S.C. 4601-
                5(c));
                  [(C) the Historic Preservation Fund, pursuant 
                to section 108 of the National Historic 
                Preservation Act (16 U.S.C. 470h); and
                  [(D) the coastal impact assistance program 
                established under section 31 of the Outer 
                Continental Shelf Lands Act (as amended by 
                section 384).]
  [(d)] (a) Allocation.--Amounts [obligated from the Fund under 
subsection (a)(1)] available under this section in each fiscal 
year shall be allocated as follows:
          (1) * * *

           *       *       *       *       *       *       *

  [(e)] (b) Authorization of Appropriations.--[In addition to 
other amounts that are made available to carry out this 
section, there] There is authorized to be appropriated to carry 
out this section $100,000,000 for each of fiscal years 2007 
through 2016.
  [(f) Fund.--There is hereby established in the Treasury of 
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum 
Research Fund''.]

           *       *       *       *       *       *       *

                              ----------                              


MINERAL LEASING ACT

           *       *       *       *       *       *       *


  Sec. 17.
  [(a)   All lands subject to disposition under this Act which 
are known or believed to contain oil or gas deposits may be 
leased by the Secretary.
  [(b)(1)(A) All lands to be leased which are not subject to 
leasing under paragraphs (2) and (3) of this subsection shall 
be leased as provided in this paragraph to the highest 
responsible qualified bidder by competitive bidding under 
general regulations in units of not more than 2,560 acres, 
except in Alaska, where units shall be not more than 5,760 
acres. Such units shall be as nearly compact as possible. Lease 
sales shall be conducted by oral bidding. Lease sales shall be 
held for each State where eligible lands are available at least 
quarterly and more frequently if the Secretary of the Interior 
determines such sales are necessary. A lease shall be 
conditioned upon the payment of a royalty at a rate of not less 
than 12.5 percent in amount or value of the production removed 
or sold from the lease. The Secretary shall accept the highest 
bid from a responsible qualified bidder which is equal to or 
greater than the national minimum acceptable bid, without 
evaluation of the value of the lands proposed for lease. Leases 
shall be issued within 60 days following payment by the 
successful bidder of the remainder of the bonus bid, if any, 
and the annual rental for the first lease year. All bids for 
less than the national minimum acceptable bid shall be 
rejected. Lands for which no bids are received or for which the 
highest bid is less than the national minimum acceptable bid 
shall be offered promptly within 30 days for leasing under 
subsection (c) of this section and shall remain available for 
leasing for a period of 2 years after the competitive lease 
sale.
  [(B) The national minimum acceptable bid shall be $2 per acre 
for a period of 2 years from the date of enactment of the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987. 
Thereafter, the Secretary, subject to paragraph (2)(B), may 
establish by regulation a higher national minimum acceptable 
bid for all leases based upon a finding that such action is 
necessary: (i) to enhance financial returns to the United 
States; and (ii) to promote more efficient management of oil 
and gas resources on Federal lands. Ninety days before the 
Secretary makes any change in the national minimum acceptable 
bid, the Secretary shall notify the Committee on Natural 
Resources of the United States House of Representatives and the 
Committee on Energy and Natural Resources of the United States 
Senate. The proposal or promulgation of any regulation to 
establish a national minimum acceptable bid shall not be 
considered a major Federal action subject to the requirements 
of section 102(2)(C) of the National Environmental Policy Act 
of 1969.]
  (a)(1) All lands subject to disposition under this Act that 
are known or believed to contain oil or gas deposits may be 
leased by the Secretary.
  (2) Leasing activities under this Act shall be conducted to 
assure receipt of fair market value for the lands and resources 
leased and the rights conveyed by the Federal Government.
  (b)(1)(A) All lands to be leased shall be leased as provided 
in this paragraph to the highest responsible qualified bidder 
by competitive bidding under general regulations in units of 
not more than 2,560 acres, except in Alaska, where units shall 
be not more than 5,760 acres. Such units shall be as nearly 
compact as possible. Lease sales shall be conducted by sealed 
bid. Lease sales shall be held for a State on a statewide basis 
where eligible lands in such States are available no more than 
3 times per year per State, unless the Secretary of the 
Interior determines additional sales are necessary. A lease 
shall be conditioned upon the payment of a royalty at a rate of 
not less than 12.5 percent in amount or value of the production 
removed or sold from the lease. The Secretary may issue a lease 
to the responsible qualified bidder with the highest bid that 
is equal to or greater than the national minimum acceptable 
bid, with evaluation of the value of the lands proposed for 
lease. The Secretary shall decide whether to accept a bid and 
issue a lease within 90 days following payment by the 
successful bidder of the remainder of the bonus bid, if any, 
and the annual rental for the first lease year. All bids for 
less than the national minimum acceptable bid shall be 
rejected.
  (B)(i) The national minimum acceptable bid shall be $2.50 per 
acre, except that the Secretary may establish a higher minimum 
acceptable bid for leases of areas in a State for all leases 
awarded after the 2-year period beginning on the date of 
enactment of the Consolidated Land, Energy, and Aquatic 
Resources Act of 2010, if the Secretary finds that such a 
higher amount is necessary--
          (I) to enhance financial returns to the United 
        States; and
          (II) to promote more efficient management of oil and 
        gas resources on Federal lands.
  (ii) The proposal or promulgation of any regulation to 
establish a higher minimum acceptable bid for a State shall not 
be considered a major Federal action that is subject to the 
requirements of section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(c)).

           *       *       *       *       *       *       *

  [(3)(A)   If the United States held a vested future interest 
in a mineral estate that, immediately prior to becoming a 
vested present interest, was subject to a lease under which oil 
or gas was being produced, or had a well capable of producing, 
in paying quantities at an annual average production volume per 
well per day of either not more than 15 barrels per day of oil 
or condensate, or not more than 60,000 cubic feet of gas, the 
holder of the lease may elect to continue the lease as a 
noncompetitive lease under subsection (c)(1).
  [(B) An election under this paragraph is effective--
          [(i) in the case of an interest which vested after 
        January 1, 1990, and on or before the date of enactment 
        of this paragraph, if the election is made before the 
        date that is 1 year after the date of enactment of this 
        paragraph;
          [(ii) in the case of an interest which vests within 1 
        year after the date of enactment of this paragraph, if 
        the election is made before the date that is 2 years 
        after the date of enactment of this paragraph; and
          [(iii) in any case other than those described in 
        clause (i) or (ii), if the election is made prior to 
        the interest becoming a vested present interest.
  [(C) Notwithstanding the consent requirement referenced in 
section 3 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 352), the Secretary shall issue a noncompetitive lease 
under subsection (c)(1) to a holder who makes an election under 
subparagraph (A) and who is qualified to hold a lease under 
this Act. Such lease shall be subject to all terms and 
conditions under this Act that are applicable to leases issued 
under subsection (c)(1).
  [(D) A lease issued pursuant to this paragraph shall continue 
so long as oil or gas continues to be produced in paying 
quantities.
  [(E) This paragraph shall apply only to those lands under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following).]
  [(c)(1)   If the lands to be leased are not leased under 
subsection (b)(1) of this section or are not subject to 
competitive leasing under subsection (b)(2) of this section, 
the person first making application for the lease who is 
qualified to hold a lease under this Act shall be entitled to a 
lease of such lands without competitive bidding, upon payment 
of a non-refundable application fee of at least $75. A lease 
under this subsection shall be conditioned upon the payment of 
a royalty at a rate of 12.5 percent in amount or value of the 
production removed or sold from the lease. Leases shall be 
issued within 60 days of the date on which the Secretary 
identifies the first responsible qualified applicant.
  [(2)(A)   Lands (i) which were posted for sale under 
subsection (b)(1) of this section but for which no bids were 
received or for which the highest bid was less than the 
national minimum acceptable bid and (ii) for which, at the end 
of the period referred to in subsection (b)(1) of this section 
no lease has been issued and no lease application is pending 
under paragraph (1) of this subsection, shall again be 
available for leasing only in accordance with subsection (b)(1) 
of this section.
  [(B) The land in any lease which is issued under paragraph 
(1) of this subsection or under subsection (b)(1) of this 
section which lease terminates, expires, is cancelled or is 
relinquished shall again be available for leasing only in 
accordance with subsection (b)(1) of this section.
  [(d) All leases issued under this section, as amended by the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall 
be conditioned upon payment by the lessee of a rental of not 
less than $1.50 per acre per year for the first through fifth 
years of the lease and not less than $2 per acre per year for 
each year thereafter. A minimum royalty in lieu of rental of 
not less than the rental which otherwise would be required for 
that lease year shall be payable at the expiration of each 
lease year beginning on or after a discovery of oil or gas in 
paying quantities on the lands leased.]
  (d)(1) During the 2-year period beginning on the date of 
enactment of the Consolidated Land, Energy, and Aquatic 
Resources Act of 2010, all leases issued under this section 
shall be conditioned upon payment by the lessee of a rental of 
not less than $2.50 per acre per year for the first through 
fifth years of the lease and not less than $3 per acre per year 
for each year thereafter. After the end of such 2-year period, 
the Secretary may establish higher rental rates for all 
subsequent years, if the Secretary finds that such action is 
necessary--
          (A) to enhance financial returns to the United 
        States; and
          (B) to promote more efficient management of oil and 
        gas and alternative energy resources on Federal lands.
  (2) A minimum royalty in lieu of rental of not less than the 
rental that otherwise would be required for that lease year 
shall be payable at the expiration of each lease year beginning 
on or after a discovery of oil or gas in paying quantities on 
the land leased.
  (e) [Competitive and noncompetitive leases] Leases issued 
under this section shall be for a primary term of 10 years: 
Provided, however, That [competitive] leases issued in special 
tar sand areas shall also be for a primary term of ten years. 
Each such lease shall continue so long after its primary term 
as oil or gas is produced in paying quantities. Any lease 
issued under this section for land on which, or for which under 
an approved cooperative or unit plan of development or 
operation, actual drilling operations were commenced prior to 
the end of its primary term and are being diligently prosecuted 
at that time shall be extended for two years and so long 
thereafter as oil or gas is produced in paying quantities.
  [(f) At least 45 days before offering lands for lease under 
this section, and at least 30 days before approving 
applications for permits to drill under the provisions of a 
lease or substantially modifying the terms of any lease issued 
under this section, the Secretary shall provide notice of the 
proposed action. Such notice shall be posted in the appropriate 
local office of the leasing and land management agencies.]
  (f)(1) At least 45 days before offering lands for lease under 
this section, and at least 30 days before approving 
applications for permits to drill under the provisions of a 
lease or substantially modifying the terms of any lease issued 
under this section, the Secretary shall provide notice of the 
proposed action to-- 
          (A) the general public by posting such notice in the 
        appropriate local office and on the electronic website 
        of the leasing and land management agencies offering 
        the lands for lease; 
          (B) all surface land owners in the area of the lands 
        being offered for lease; and 
          (C) the holders of special recreation permits for 
        commercial use, competitive events, and other organized 
        activities on the lands being offered for lease. 
  (2)   Such notice shall include the terms or modified lease 
terms and maps or a narrative description of the affected 
lands. Where the inclusion of maps in such notice is not 
practicable, maps of the affected lands shall be made available 
to the public for review. Such maps shall show the location of 
all tracts to be leased, and of all leases already issued in 
the general area.
  (3) The requirements of this subsection are in addition to 
any public notice required by other law.
  [(g) The Secretary of the Interior, or for National Forest 
lands, the Secretary of Agriculture, shall regulate all 
surface-disturbing activities conducted pursuant to any lease 
issued under this Act, and shall determine reclamation and 
other actions as required in the interest of conservation of 
surface resources. No permit to drill on an oil and gas lease 
issued under this Act may be granted without the analysis and 
approval by the Secretary concerned of a plan of operations 
covering proposed surface-disturbing activities within the 
lease area. The Secretary concerned shall, by rule or 
regulation, establish such standards as may be necessary to 
ensure that an adequate bond, surety, or other financial 
arrangement will be established prior to the commencement of 
surface-disturbing activities on any lease, to ensure the 
complete and timely reclamation of the lease tract, and the 
restoration of any lands or surface waters adversely affected 
by lease operations after the abandonment or cessation of oil 
and gas operations on the lease. The Secretary shall not issue 
a lease or leases or approve the assignment of any lease or 
leases under the terms of this section to any person, 
association, corporation, or any subsidiary, affiliate, or 
person controlled by or under common control with such person, 
association, or corporation, during any period in which, as 
determined by the Secretary of the Interior or Secretary of 
Agriculture, such entity has failed or refused to comply in any 
material respect with the reclamation requirements and other 
standards established under this section for any prior lease to 
which such requirements and standards applied. Prior to making 
such determination with respect to any such entity the 
concerned Secretary shall provide such entity with adequate 
notification and an opportunity to comply with such reclamation 
requirements and other standards and shall consider whether any 
administrative or judicial appeal is pending. Once the entity 
has complied with the reclamation requirement or other standard 
concerned an oil or gas lease may be issued to such entity 
under this Act.]
  (g) Regulation of Surface-Disturbing Activities; Approval of 
Plan of Operations; Bond or Surety; Failure to Comply With 
Reclamation Requirements as Barring Lease; Opportunity to 
Comply With Requirements; Standards; Monitoring.--
          (1) Definitions.--In this subsection:
                  (A) Interim reclamation plan.--The term 
                ``Interim Reclamation Plan'' means an ongoing 
                plan specifying reclamation steps to be taken 
                on all disturbed areas covered by any lease 
                issued under this Act which are not needed for 
                active operations. Such Interim Reclamation 
                Plans shall be reviewed by the relevant 
                Secretary at regular intervals and shall be 
                amended as warranted, subject to the approval 
                of the relevant Secretary.
                  (B) Final reclamation plan.--The term ``Final 
                Reclamation Plan'' includes a detailed 
                description of all reclamation activity to be 
                conducted for all disturbed areas covered by a 
                lease issued under this Act prior to final 
                abandonment. Final Reclamation Plans shall 
                include reclamation of all locations, 
                facilities, trenches, rights-of-way, roads and 
                any other surface disturbance on lands covered 
                by the lease.
          (2) In general.--The Secretary of the Interior, or 
        for National Forest lands, the Secretary of 
        Agriculture, shall regulate all surface-disturbing 
        activities conducted pursuant to any lease issued under 
        this Act, and shall determine reclamation and other 
        actions as required in the interest of conservation of 
        surface resources.
          (3) Reclamation plans required.--
                  (A) Applications for permits to drill.--Each 
                application for a permit to drill submitted to 
                the Secretary pursuant to this Act shall 
                include both an Interim Reclamation Plan and a 
                Final Reclamation Plan.
                  (B) Analysis and approval required.--No 
                permit to drill on an oil and gas lease issued 
                under this Act may be granted without the 
                analysis and approval by the Secretary 
                concerned of both an interim reclamation plan 
                and a final reclamation plan covering proposed 
                surface-disturbing activities within the lease 
                area.
                  (C) Plans of operations.--All Plans of 
                Operations submitted and approved pursuant to 
                this Act shall include an Interim Reclamation 
                Plan.
          (4) Bonding.--The Secretary concerned shall, by 
        regulation, require that an adequate bond, surety, or 
        other financial arrangement will be established prior 
        to the commencement of surface-disturbing activities on 
        any lease, to ensure the complete and timely 
        reclamation of the lease tract, and the restoration of 
        any lands or surface waters adversely affected by lease 
        operations after the abandonment or cessation of oil 
        and gas operations on the lease. The Secretary shall 
        not issue a lease or leases or approve the assignment 
        of any lease or leases under the terms of this section 
        to any person, association, corporation, or any 
        subsidiary, affiliate, or person controlled by or under 
        common control with such person, association, or 
        corporation, during any period in which, as determined 
        by the Secretary of the Interior or Secretary of 
        Agriculture, such entity has failed or refused to 
        comply in any material respect with the reclamation 
        requirements and other standards established under this 
        section for any prior lease to which such requirements 
        and standards applied. Prior to making such 
        determination with respect to any such entity the 
        concerned Secretary shall provide such entity with 
        adequate notification and an opportunity to comply with 
        such reclamation requirements and other standards and 
        shall consider whether any administrative or judicial 
        appeal is pending. Once the entity has complied with 
        the reclamation requirement or other standard concerned 
        an oil or gas lease may be issued to such entity under 
        this Act.
          (5) Standards.--The Secretary of the Interior and the 
        Secretary of Agriculture shall, by regulation, 
        establish uniform standards for all Interim and Final 
        Reclamation Plans. The goal of such plans shall be the 
        restoration of the affected ecosystem to a condition 
        approximating or equal to that which existed prior to 
        the surface disturbance. Such standards shall include, 
        but are not limited to, restoration of natural 
        vegetation and hydrology, habitat restoration, salvage, 
        storage and reuse of topsoils, erosion control, control 
        of invasive species and noxious weeds and natural 
        contouring.
          (6) Monitoring.--The Secretary concerned shall not 
        approve final abandonment and shall not release any 
        bond required by this Act until the standards and 
        requirement for final reclamation established pursuant 
        to this Act have been met.

           *       *       *       *       *       *       *


                           GRANT OF AUTHORITY

  Sec. 28. (a) * * *

           *       *       *       *       *       *       *


                                reports

  (w)(1) * * *

           *       *       *       *       *       *       *

  (4) Upon request of a Committee listed under paragraph (2), 
that Committee may receive notifications under this subsection 
in electronic format in addition to in writing, or in 
electronic format alone. The Committee shall designate to the 
Secretary the appropriate individual or individuals on the 
Committee to receive such electronic notices.

           *       *       *       *       *       *       *

  Sec. 31. (a) * * *

           *       *       *       *       *       *       *

  (d)(1) Where any oil and gas lease issued pursuant to section 
17(b) [or section 17(c)] of this Act or the Mineral Leasing Act 
for Acquired Lands (30 U.S.C. 351 et seq.) has been, or is 
hereafter, terminated automatically by operation of law under 
this section for failure to pay on or before the anniversary 
date the full amount of the rental due, and such rental is not 
paid or tendered within twenty days thereafter, and it is shown 
to the satisfaction of the Secretary of the Interior that such 
failure was justifiable or not due to lack of reasonable 
diligence on the part of the lessee, or, no matter when the 
rental is paid after termination, it is shown to the 
satisfaction of the Secretary that such failure was 
inadvertent, the Secretary may reinstate the lease as of the 
date of termination for the unexpired portion of the primary 
term of the original lease or any extension thereof remaining 
at the date of termination, and so long thereafter as oil or 
gas is produced in paying quantities. In any case where a lease 
is reinstated under this subsection and the Secretary finds 
that the reinstatement of such lease (A) occurs after the 
expiration of the primary term or any extension thereof, or (B) 
will not afford the lessee a reasonable opportunity to continue 
operations under the lease, the Secretary may, at his 
discretion, extend the term of such lease for such period as he 
deems reasonable, but in no event for more than two years from 
the date the Secretary authorizes the reinstatement and so long 
thereafter as oil or gas is produced in paying quantities.

           *       *       *       *       *       *       *

  (e) Any reinstatement under subsection (d) of this section 
shall be made only if these conditions are met:
          (1) * * *
          (2) payment of back rentals and either the inclusion 
        in a reinstated lease issued pursuant to the provisions 
        of section 17(b) of this Act of a requirement for 
        future rentals at a rate of not less than $10 per acre 
        per year[, or the inclusion in a reinstated lease 
        issued pursuant to the provisions of section 17(c) of 
        this Act of a requirement that future rentals shall be 
        at a rate not less than $5 per acre per year, all as 
        determined by the Secretary;];
          (3)[(A)] payment of back royalties and the inclusion 
        in a reinstated lease issued pursuant to the provisions 
        of section 17(b) of this Act of a requirement for 
        future royalties at a rate of not less than 16\2/3\ 
        percent computed on a sliding scale based upon the 
        average production per well per day, at a rate which 
        shall be not less than 4 percentage points greater than 
        the competitive royalty schedule then in force and used 
        for royalty determination for competitive leases issued 
        pursuant to such section as determined by the 
        Secretary: Provided, That royalty on such reinstated 
        lease shall be paid on all production removed or sold 
        from such lease subsequent to the termination of the 
        original lease;
          [(B) payment of back royalties and inclusion in a 
        reinstated lease issued pursuant to the provisions of 
        section 17(c) of this Act of a requirement for future 
        royalties at a rate not less than 16\2/3\ percent: 
        Provided, That royalty on such reinstated lease shall 
        be paid on all production removed or sold from such 
        lease subsequent to the cancellation or termination of 
        the original lease; and]

           *       *       *       *       *       *       *

A copy of said notice, together with information concerning 
rental, royalty, volume of production, if any, and any other 
matter which the Secretary deemed significant in making this 
determination to reinstate, shall be furnished to the Committee 
on Natural Resources of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate at 
least thirty days in advance of the reinstatement. The lessee 
of a reinstated lease shall reimburse the Secretary for the 
administrative costs of reinstating the lease, but not to 
exceed $500. In addition the lessee shall reimburse the 
Secretary for the cost of publication in the Federal Register 
of the notice of proposed reinstatement. Upon request of such a 
Committee, that Committee may receive notifications under this 
subsection in electronic format in addition to in writing, or 
in electronic format alone. The Committee shall designate to 
the Secretary the appropriate individual or individuals on the 
Committee to receive such electronic notices.
  [(f) Where an unpatented oil placer mining claim validly 
located prior to February 24, 1920, which has been or is 
currently producing or is capable of producing oil or gas, has 
been or is hereafter deemed conclusively abandoned for failure 
to file timely the required instruments or copies of 
instruments required by section 314 of the Federal Land Policy 
and Management Act of 1976 (43 U.S.C. 1744), and it is shown to 
the satisfaction of the Secretary that such failure was 
inadvertent, justifiable, or not due to lack of reasonable 
diligence on the part of the owner, the Secretary may issue, 
for the lands covered by the abandoned unpatented oil placer 
mining claim, a noncompetitive oil and gas lease, consistent 
with the provisions of section 17(e) of this Act, to be 
effective from the statutory date the claim was deemed 
conclusively abandoned. Issuance of such a lease shall be 
conditioned upon:
          [(1) a petition for issuance of a noncompetitive oil 
        and gas lease, together with the required rental and 
        royalty, including back rental and royalty accruing 
        from the statutory date of abandonment of the oil 
        placer mining claim, being filed with the Secretary--
                  [(A) with respect to any claim deemed 
                conclusively abandoned on or before the date of 
                enactment of the Federal Oil and Gas Royalty 
                Management Act of 1982, on or before the one 
                hundred and twentieth day after such date of 
                enactment, or
                  [(B) with respect to any claim deemed 
                conclusively abandoned after such date of 
                enactment, on or before the one hundred and 
                twentieth day after final notification by the 
                Secretary or a court of competent jurisdiction 
                of the determination of the abandonment of the 
                oil placer mining claim;
          [(2) a valid lease not having been issued affecting 
        any of the lands covered by the abandoned oil placer 
        mining claim prior to the filing of such petition: 
        Provided, however, That after the filing of a petition 
        for issuance of a lease under this subsection, the 
        Secretary shall not issue any new lease affecting any 
        of the lands covered by such abandoned oil placer 
        mining claim for a reasonable period, as determined in 
        accordance with regulations issued by him;
          [(3) a requirement in the lease for payment of 
        rental, including back rentals accruing from the 
        statutory date of abandonment of the oil placer mining 
        claim, of not less than $5 per acre per year;
          [(4) a requirement in the lease for payment of 
        royalty on production removed or sold from the oil 
        placer mining claim, including all royalty on 
        production made subsequent to the statutory date the 
        claim was deemed conclusively abandoned, of not less 
        than 12\1/2\ percent; and
          [(5) compliance with the notice and reimbursement of 
        costs provisions of paragraph (4) of subsection (e) but 
        addressed to the petition covering the conversion of an 
        abandoned unpatented oil placer mining claim to a 
        noncompetitive oil and gas lease.]
  (g)(1) Except as otherwise provided in this section, a 
reinstated lease shall be treated as [a competitive or a 
noncompetitive oil and gas lease in the same manner as the 
original lease issued pursuant to section 17(b) or 17(c) of 
this Act.] in the same manner as the original lease issued 
pursuant to section 17.
  [(2) Except as otherwise provided in this section, the 
issuance of a lease in lieu of an abandoned patented oil placer 
mining claim shall be treated as a noncompetitive oil and gas 
lease issued pursuant to section 17(c) of this Act.]
  (3) Notwithstanding any other provision of law, any lease 
issued pursuant to section 14 of this Act shall be eligible for 
reinstatement under the terms and conditions set forth in 
subsections (c), (d), and (e) of this section[, applicable to 
leases issued under subsection 17(c) of this Act (30 U.S.C. 
226(c)) except,], except that, upon reinstatement, such lease 
shall continue for twenty years and so long thereafter as oil 
or gas is produced in paying quantities.

           *       *       *       *       *       *       *

  Sec. 36. That all royalty accruing to the United States under 
any oil or gas lease or permit under this Act on demand of the 
Secretary of the Interior shall be paid in oil or gas, except 
that the Secretary shall not conduct a regular program to take 
oil and gas lease royalties in oil or gas.

           *       *       *       *       *       *       *


SEC. 44. LEASING OF LANDS FOR URANIUM MINING.

  (a) In General.--
          (1) Withdrawal from entry; leasing requirement.--
        Effective upon the date of enactment of the 
        Consolidated Land, Energy, and Aquatic Resources Act of 
        2010, all Federal lands are hereby permanently 
        withdrawn from location and entry under section 2319 of 
        the Revised Statutes (30 U.S.C. 22 et seq.) for 
        uranium. After the end of the 2-year period beginning 
        on such date of enactment, no uranium may be produced 
        from Federal lands except pursuant to a lease issued 
        under this Act.
          (2) Leasing.--The Secretary--
                  (A) may divide any lands subject to this Act 
                that are not withdrawn from mineral leasing and 
                that are otherwise available for uranium 
                leasing under applicable law, including lands 
                available under the terms of land use plans 
                prepared by the Federal agency managing the 
                land, into leasing tracts of such size as the 
                Secretary finds appropriate and in the public 
                interest; and
                  (B) thereafter shall, in the Secretary's 
                discretion, upon the request of any qualified 
                applicant or on the Secretary's own motion, 
                from time to time, offer such lands for uranium 
                leasing and award uranium leases thereon by 
                competitive bidding.
  (b) Fair Market Value Required.--
          (1) In general.--No bid for a uranium lease shall be 
        accepted that is less than the fair market value, as 
        determined by the Secretary, of the uranium subject to 
        the lease.
          (2) Public comment.--Prior to the Secretary's 
        determination of the fair market value of the uranium 
        subject to the lease, the Secretary shall give 
        opportunity for and consideration to public comments on 
        the fair market value.
          (3) Disclosure not required.--Nothing in this section 
        shall be construed to require the Secretary to make 
        public the Secretary's judgment as to the fair market 
        value of the uranium to be leased, or the comments the 
        Secretary receives thereon prior to the issuance of the 
        lease.
  (c) Lands Under the Jurisdiction of Other Agencies.--Leases 
covering lands the surface of which is under the jurisdiction 
of any Federal agency other than the Department of the Interior 
may be issued only--
          (1) upon consent of the head of the other Federal 
        agency; and
          (2) upon such conditions the head of such other 
        Federal agency may prescribe with respect to the use 
        and protection of the nonmineral interests in those 
        lands.
  (d) Consideration of Effects of Mining.--Before issuing any 
uranium lease, the Secretary shall consider effects that mining 
under the proposed lease might have on an impacted community or 
area, including impacts on the environment, on agricultural, on 
cultural resources, and other economic activities, and on 
public services.
  (e) Notice of Proposed Lease.--No lease sale shall be held 
for lands until after a notice of the proposed offering for 
lease has been given once a week for three consecutive weeks in 
a newspaper of general circulation in the county in which the 
lands are situated, or in electronic format, in accordance with 
regulations prescribed by the Secretary.
  (f) Auction Requirements.--All lands to be leased under this 
section shall be leased to the highest responsible qualified 
bidder--
          (1) under general regulations;
          (2) in units of not more than 2,560 acres that are as 
        nearly compact as possible; and
          (3) by oral bidding.
  (g) Required Payments.--
          (1) In general.--A lease under this section shall be 
        conditioned upon the payment by the lessee of--
                  (A) a royalty at a rate of not less than 12.5 
                percent in amount or value of the production 
                removed or sold under the lease; and
                  (B) a rental of--
                          (i) not less than $2.50 per acre per 
                        year for the first through fifth years 
                        of the lease; and
                          (ii) not less than $3 per acre per 
                        year for each year thereafter.
          (2) Use of revenues.--Amounts received as revenues 
        under this subsection with respect to a lease may be 
        used by the Secretary of the Interior, subject to the 
        availability of appropriations, for cleaning up uranium 
        mill tailings and reclaiming abandoned uranium mines on 
        Federal lands in accordance with the priorities and 
        eligibility restrictions, respectively, under 
        subsections (c) and (d) of section 411 of the Surface 
        Mining Control and Reclamation Act of 1977 (30 U.S.C. 
        1240a), or may be transferred by the Secretary, subject 
        to the availability of appropriations, to the Attorney 
        General for use by the Attorney General to pay claims 
        filed under the Radiation Exposure Compensation Act (42 
        U.S.C. 2210 note) that the Attorney General determines 
        meet the requirements of that Act.
  (h) Lease Term.--A lease under this section--
          (1) shall be effective for a primary term of 10 
        years; and
          (2) shall continue in effect after such primary term 
        for so long is as uranium is produced under the lease 
        in paying quantities.
  (i) Exploration Licenses.--
          (1) In general.--The Secretary may, under such 
        regulations as the Secretary may prescribe, issue to 
        any person an exploration license. No person may 
        conduct uranium exploration for commercial purposes on 
        lands subject to this Act without such an exploration 
        license. Each exploration license shall be for a term 
        of not more than two years and shall be subject to a 
        reasonable fee. An exploration license shall confer no 
        right to a lease under this Act. The issuance of 
        exploration licenses shall not preclude the Secretary 
        from issuing uranium leases at such times and locations 
        and to such persons as the Secretary deems appropriate. 
        No exploration license may be issued for any land on 
        which a uranium lease has been issued. A separate 
        exploration license shall be required for exploration 
        in each State. An application for an exploration 
        license shall identify general areas and probable 
        methods of exploration. Each exploration license shall 
        be limited to specific geographic areas in each State 
        as determined by the Secretary, and shall contain such 
        reasonable conditions as the Secretary may require, 
        including conditions to ensure the protection of the 
        environment, and shall be subject to all applicable 
        Federal, State, and local laws and regulations. Upon 
        violation of any such conditions or laws the Secretary 
        may revoke the exploration license.
          (2) Limitations.--A licensee may not cause 
        substantial disturbance to the natural land surface. A 
        licensee may not remove any uranium for sale but may 
        remove a reasonable amount of uranium from the lands 
        subject to this Act included under the Secretary's 
        license for analysis and study. A licensee must comply 
        with all applicable rules and regulations of the 
        Federal agency having jurisdiction over the surface of 
        the lands subject to this Act. Exploration licenses 
        covering lands the surface of which is under the 
        jurisdiction of any Federal agency other than the 
        Department of the Interior may be issued only upon such 
        conditions as it may prescribe with respect to the use 
        and protection of the nonmineral interests in those 
        lands.
          (3) Sharing of data.--The licensee shall furnish to 
        the Secretary copies of all data (including geological, 
        geophysical, and core drilling analyses) obtained 
        during such exploration. The Secretary shall maintain 
        the confidentiality of all data so obtained until after 
        the areas involved have been leased or until such time 
        as the Secretary determines that making the data 
        available to the public would not damage the 
        competitive position of the licensee, whichever comes 
        first.
          (4) Exploration without a license.--Any person who 
        willfully conducts uranium exploration for commercial 
        purposes on lands subject to this Act without an 
        exploration license issued under this subsection shall 
        be subject to a fine of not more than $1,000 for each 
        day of violation. All data collected by such person on 
        any Federal lands as a result of such violation shall 
        be made immediately available to the Secretary, who 
        shall make the data available to the public as soon as 
        it is practicable. No penalty under this subsection 
        shall be assessed unless such person is given notice 
        and opportunity for a hearing with respect to such 
        violation.
  (j) Conversion of Mining Claims to Mineral Leases.--
          (1) In general.--The owner of any mining claim (in 
        this subsection referred to as a ``claimant'') located 
        prior to the date of enactment of the Consolidated 
        Land, Energy, and Aquatic Resources Act of 2010 may, 
        within two years after such date, apply to the 
        Secretary of the Interior to convert the claim to a 
        lease under this section. The Secretary shall issue a 
        uranium lease under this section to the claimant upon a 
        demonstration by the claimant, to the satisfaction of 
        the Secretary, within one year after the date of the 
        application to the Secretary, that the claim was, as of 
        such date of enactment, supported by the discovery of a 
        valuable deposit of uranium on the claimed land. The 
        holder of a lease issued upon conversion from a mining 
        claim under this subsection shall be subject to all the 
        requirements of this section governing uranium leases, 
        except that the holder shall pay a royalty of 6.25 
        percent on the value of the uranium produced under the 
        lease, until beginning ten years after the date the 
        claim is converted to a lease.
          (2) Other claims extinguished.--All mining claims 
        located for uranium on Federal lands whose claimant 
        does not apply to the Secretary for conversion to a 
        lease, or whose claimant cannot make such a 
        demonstration of discovery, shall become null and void 
        by operation of law three years after such date of 
        enactment.

SEC. [44.] 45. SHORT TITLE.

  This Act may be cited as the ``Mineral Leasing Act''.

           *       *       *       *       *       *       *

                              ----------                              


FEDERAL OIL AND GAS ROYALTY MANAGEMENT ACT OF 1982

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 3. For the purposes of this Act, the term--
          (1) * * *

           *       *       *       *       *       *       *

          (8) ``mineral leasing law'' means any Federal law 
        administered by the Secretary authorizing the 
        disposition under lease of oil or gas [;] including but 
        not limited to the Act of October 20, 1914 (38 Stat. 
        741); the Act of February 25, 1920 (41 Stat. 437); the 
        Act of April 17, 1926 (44 Stat. 301); the Act of 
        February 7, 1927 (44 Stat. 1057); and all Acts 
        heretofore or hereafter enacted that are amendatory of 
        or supplementary to any of the foregoing Acts;

           *       *       *       *       *       *       *

          (20) ``commence'' means--
                  (A) with respect to a judicial proceeding, 
                the service of a complaint, petition, 
                counterclaim, cross claim, or other pleading 
                seeking affirmative relief or seeking credit or 
                recoupment[: Provided, That if the Secretary 
                commences a judicial proceeding against a 
                designee, the Secretary shall give notice of 
                that commencement to the lessee who designated 
                the designee, but the Secretary is not required 
                to give notice to other lessees who may be 
                liable pursuant to section 102(a) of this Act, 
                for the obligation that is the subject of the 
                judicial proceeding]; or
                  (B) with respect to a demand, the receipt by 
                the Secretary or a delegated State or a lessee 
                or its designee [(with written notice to the 
                lessee who designated the designee)] of the 
                demand;

           *       *       *       *       *       *       *

          (23) ``demand'' means--
                  (A) an order to pay issued by the Secretary 
                or the applicable delegated State to a lessee 
                or its designee [(with written notice to the 
                lessee who designated the designee)] that has a 
                reasonable basis to conclude that the 
                obligation in the amount of the demand is due 
                and owing; or

           *       *       *       *       *       *       *

          [(24) ``designee'' means the person designated by a 
        lessee pursuant to section 102(a) of this Act, with 
        such written designation effective on the date such 
        designation is received by the Secretary and remaining 
        in effect until the Secretary receives notice in 
        writing that the designation is modified or 
        terminated;]
          (24) ``designee'' means a person who pays, offsets, 
        or credits monies, makes adjustments, requests and 
        receives refunds, or submits reports with respect to 
        payments a lessee must make pursuant to section 102(a);
          (25) ``obligation'' means--
                  (A) * * *
                  (B) any duty of a lessee or its designee 
                [(subject to the provisions of section 102(a) 
                of this Act)]--
                          (i) * * *
                          (ii) to pay, offset or credit monies 
                        including (but not limited to)--
                                  (I) * * *

           *       *       *       *       *       *       *

                        [which arises from or relates to any 
                        lease administered by the Secretary 
                        for, or any mineral leasing law related 
                        to, the exploration, production and 
                        development of oil or gas on Federal 
                        lands or the Outer Continental Shelf;]
                        that arises from or relates to any 
                        lease, easement, right-of-way, permit, 
                        or other agreement regardless of form 
                        administered by the Secretary for, or 
                        any mineral leasing law related to, the 
                        exploration, production, and 
                        development of oil and gas or other 
                        energy resource on Federal lands or the 
                        Outer Continental Shelf;

           *       *       *       *       *       *       *

          (29) ``penalty'' means a statutorily authorized civil 
        fine levied or imposed for a violation of this Act, any 
        mineral leasing law, or a term or provision of a lease 
        or permit administered by the Secretary;

           *       *       *       *       *       *       *

          (32) ``underpayment'' means any payment or nonpayment 
        by a lessee or its designee that is less than the 
        amount legally required to be paid on an obligation;   
        [and]
          (33) ``United States'' means the United States 
        Government and any department, agency, or 
        instrumentality thereof, the several States, the 
        District of Columbia, and the territories of the United 
        States [.];
          (34) ``compliance review'' means a full-scope or a 
        limited-scope examination of a lessee's lease accounts 
        to compare one or all elements of the royalty equation 
        (volume, value, royalty rate, and allowances) against 
        anticipated elements of the royalty equation to test 
        for variances; and
          (35) ``marketing affiliate'' means an affiliate of a 
        lessee whose function is to acquire the lessee's 
        production and to market that production.

          TITLE I--FEDERAL ROYALTY MANAGEMENT AND ENFORCEMENT

                        DUTIES OF THE SECRETARY

  Sec. 101. (a) * * *

           *       *       *       *       *       *       *

  (d) The Secretary may, as an adjunct to audits of accounts 
for leases, utilize compliance reviews of accounts. Such 
reviews shall not constitute nor substitute for audits of lease 
accounts. Any disparity uncovered in such a compliance review 
shall be immediately referred to a program auditor. The 
Secretary shall, before completion of a compliance review, 
provide notice of the review to designees whose obligations are 
the subject of the review.

      DUTIES OF LESSEES, OPERATORS, AND MOTOR VEHICLE TRANSPORTERS

  Sec. 102.
  [(a)   In order to increase receipts and achieve effective 
collections of royalty and other payments, a lessee who is 
required to make any royalty or other payment under a lease or 
under the mineral leasing laws, shall make such payments in the 
time and manner as may be specified by the Secretary or the 
applicable delegated State. A lessee may designate a person to 
make all or part of the payments due under a lease on the 
lessee's behalf and shall notify the Secretary or the 
applicable delegated State in writing of such designation, in 
which event said designated person may, in its own name, pay, 
offset or credit monies, make adjustments, request and receive 
refunds and submit reports with respect to payments required by 
the lessee. Notwithstanding any other provision of this Act to 
the contrary, a designee shall not be liable for any payment 
obligation under the lease. The person owning operating rights 
in a lease shall be primarily liable for its pro rata share of 
payment obligations under the lease. If the person owning the 
legal record title in a lease is other than the operating 
rights owner, the person owning the legal record title shall be 
secondarily liable for its pro rata share of such payment 
obligations under the lease.]
  (a) In order to increase receipts and achieve effective 
collections of royalty and other payments, a lessee who is 
required to make any royalty or other payment under a lease, 
easement, right-of-way, permit, or other agreement, regardless 
of form, or under the mineral leasing laws, shall make such 
payment in the time and manner as may be specified by the 
Secretary or the applicable delegated State. Any person who 
pays, offsets, or credits monies, makes adjustments, requests 
and receives refunds, or submits reports with respect to 
payments the lessee must make is the lessee's designee under 
this Act. Notwithstanding any other provision of this Act to 
the contrary, a designee shall be liable for any payment 
obligation of any lessee on whose behalf the designee pays 
royalty under the lease. The person owning operating rights in 
a lease and a person owning legal record title in a lease shall 
be liable for that person's pro rata share of payment 
obligations under the lease.

           *       *       *       *       *       *       *


                         REQUIRED RECORDKEEPING

  Sec. 103. (a) * * *
  (b) Records required by the Secretary with respect to oil and 
gas leases from Federal or Indian lands or the Outer 
Continental Shelf shall be maintained for [6] 7 years after the 
records are generated unless the Secretary notifies the record 
holder that he has initiated an audit or investigation 
involving such records and that such records must be maintained 
for a longer period. In any case when an audit or investigation 
is underway, records shall be maintained until the Secretary 
releases the record holder of the obligation to maintain such 
records.

           *       *       *       *       *       *       *


                            CIVIL PENALTIES

  Sec. 109. (a) Any person who--
          (1) * * *
          (2) fails to permit inspection authorized in section 
        108 or fails to notify the Secretary of any assignment 
        under section 102(a)(2)
shall be liable for a penalty of up to [$500] $1,000 per 
violation for each day such violation continues, dating from 
the date of such notice or report. A penalty under this 
subsection may not be applied to any person who is otherwise 
liable for a violation of paragraph (1) if:
          (A) * * *
          (B) after the due notice of violation required in 
        paragraph (1) has been given to such person (i) by the 
        Secretary or his authorized representative, such person 
        has corrected the violation within 20 days of such 
        notification or such longer time as the Secretary may 
        agree to[.]; and (ii) has not received notice, pursuant 
        to paragraph (1), of more than two prior violations in 
        the current calendar year.
  (b) If corrective action is not taken within 40 days or a 
longer period as the Secretary may agree to, after due notice 
or the report referred to in subsection (a)(1), such person 
shall be liable for a civil penalty of not more than [$5,000] 
$10,000 per violation for each day such violation continues, 
dating from the date of such notice or report.
  (c) Any person who--
          (1) * * *
          (2) fails or refuses to permit lawful entry, 
        inspection, or audit[; or], including any failure or 
        refusal to promptly tender requested documents;

           *       *       *       *       *       *       *

shall be liable for a penalty of up to [$10,000] $20,000 per 
violation for each day such violation continues[.];
          (4) knowingly or willfully fails to make any royalty 
        payment in the amount or value as specified by statute, 
        regulation, order, or terms of the lease; or
          (5) fails to correctly report and timely provide 
        operations or financial records necessary for the 
        Secretary or any authorized designee of the Secretary 
        to accomplish lease management responsibilities,
  (d) Any person who--
          (1) * * *

           *       *       *       *       *       *       *

  (h) Notice under this subsection (a) shall be by personal 
service by an authorized representative of the Secretary or [by 
registered mail] a common carrier that provides proof of 
delivery. Any person may, in the manner prescribed by the 
Secretary, designate a representative to receive any notice 
under this subsection.

           *       *       *       *       *       *       *

  (m)(1) Any determination by the Secretary or a designee of 
the Secretary that a person has committed a violation under 
subsection (a), (c), or (d)(1) shall toll any applicable 
statute of limitations for all oil and gas leases held or 
operated by such person, until the later of--
          (A) the date on which the person corrects the 
        violation and certifies that all violations of a like 
        nature have been corrected for all of the oil and gas 
        leases held or operated by such person; or
          (B) the date a final, nonappealable order has been 
        issued by the Secretary or a court of competent 
        jurisdiction.
  (2) A person determined by the Secretary or a designee of the 
Secretary to have violated subsection (a), (c), or (d)(1) shall 
maintain all records with respect to the person's oil and gas 
leases until the later of--
          (A) the date the Secretary releases the person from 
        the obligation to maintain such records; and
          (B) the expiration of the period during which the 
        records must be maintained under section 103(b).

           *       *       *       *       *       *       *


         ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES

  Sec. 111. (a) * * *

           *       *       *       *       *       *       *

  [(h) Interest shall be allowed and paid or credited on any 
overpayment, with such interest to accrue from the date such 
overpayment was made, at the rate obtained by applying the 
provisions of subparagraphs (A) and (B) of section 6621(a)(1) 
of the Internal Revenue Code of 1986, but determined without 
regard to the sentence following subparagraph (B) of section 
6621(a)(1). Interest which has accrued on any overpayment may 
be applied to reduce an underpayment. This subsection applies 
to overpayments made later than six months after the date of 
enactment of this subsection or September 1, 1996, whichever is 
later. Such interest shall be paid from amounts received as 
current receipts from sales, bonuses, royalties (including 
interest charges collected under this section) and rentals of 
the public lands and the Outer Continental Shelf under the 
provisions of the Mineral Leasing Act, and the Outer 
Continental Shelf Lands Act, which are not payable to a State 
or the Reclamation Fund. The portion of any such interest 
payment attributable to any amounts previously disbursed to a 
State, the Reclamation Fund, or any other recipient designated 
by law shall be deducted from the next disbursements to that 
recipient made under the applicable law. Such amounts deducted 
from subsequent disbursements shall be credited to 
miscellaneous receipts in the Treasury.
  [(i) Upon a determination by the Secretary that an excessive 
overpayment (based upon all obligations of a lessee or its 
designee for a given reporting month) was made for the sole 
purpose of receiving interest, interest shall not be paid on 
the excessive amount of such overpayment. For purposes of this 
Act, an ``excessive overpayment'' shall be the amount that any 
overpayment a lessee or its designee pays for a given reporting 
month (excluding payments for demands for obligations 
determined to be due as a result of judicial or administrative 
proceedings or agreed to be paid pursuant to settlement 
agreements) for the aggregate of all of its Federal leases 
exceeds 10 percent of the total royalties paid that month for 
those leases.
  [(j) A lessee or its designee may make a payment for the 
approximate amount of royalties (hereinafter in this subsection 
``estimated payment'') that would otherwise be due for such 
lease by the date royalties are due for that lease. When an 
estimated payment is made, actual royalties are payable at the 
end of the month following the month in which the estimated 
payment is made. If the estimated payment was less than the 
amount of actual royalties due, interest is owed on the 
underpaid amount. If the estimated payment exceeds the actual 
royalties due, interest is owed on the overpayment. If the 
lessee or its designee makes a payment for such actual 
royalties, the lessee or its designee may apply the estimated 
payment to future royalties. Any estimated payment may be 
adjusted, recouped, or reinstated at any time by the lessee or 
its designee.]
  (h) Interest shall not be allowed nor paid nor credited on 
any overpayment, and no interest shall accrue from the date 
such overpayment was made.
  (i) A lessee or its designee may make a payment for the 
approximate amount of royalties (hereinafter in this subsection 
referred to as the ``estimated payment'') that would otherwise 
be due for such lease by the date royalties are due for that 
lease. When an estimated payment is made, actual royalties are 
payable at the end of the month following the month in which 
the estimated payment is made. If the estimated payment was 
less than the amount of actual royalties due, interest is owed 
on the underpaid amount. If the lessee or its designee makes a 
payment for such actual royalties, the lessee or its designee 
may apply the estimated payment to future royalties. Any 
estimated payment may be adjusted, recouped, or reinstated by 
the lessee or its designee provided such adjustment, 
recoupment, or reinstatement is made within the limitation 
period for which the date royalties were due for that lease.
  (k)(1) * * *

           *       *       *       *       *       *       *

  (4) The Secretary or the delegated State shall grant an 
exception from the reporting and payment requirements for 
marginal properties by allowing for any calendar year or 
portion thereof royalties to be paid each month based on the 
volume of production sold. Interest shall not accrue on the 
difference for the entire calendar year or portion thereof 
between the amount of oil and gas actually sold and the share 
of production allocated to the lease until the beginning of the 
month following such calendar year or portion thereof. Any 
additional royalties due [or overpaid royalties and associated 
interest]   shall be paid[, refunded, or credited]   within six 
months after the end of each calendar year in which royalties 
are paid based on volumes of production sold. For the purpose 
of this subsection, the term ``marginal property'' means a 
lease that produces on average the combined equivalent of less 
than 15 barrels of oil per well per day or 90 thousand cubic 
feet of gas per well per day, or a combination thereof, 
determined by dividing the average daily production of crude 
oil and natural gas from producing wells on such lease by the 
number of such wells, unless the Secretary, together with the 
State concerned, determines that a different production is more 
appropriate.

           *       *       *       *       *       *       *


SEC. 111A. ADJUSTMENTS AND REFUNDS.

  (a) Adjustments to Royalties Paid to the Secretary or a 
Delegated State.--
          (1) * * *

           *       *       *       *       *       *       *

          (3)(A) An adjustment or a request for a refund for an 
        obligation may be made after the adjustment period only 
        upon written notice to and approval by the Secretary or 
        the applicable delegated State, as appropriate, during 
        an audit of the period which includes the production 
        month for which the adjustment is being made. [If an 
        overpayment is identified during an audit, then the 
        Secretary or the applicable delegated State, as 
        appropriate, shall allow a credit or refund in the 
        amount of the overpayment.]
          (B) Except as provided in subparagraph (C), no 
        adjustment may be made with respect to an obligation 
        that is the subject of an audit or compliance review 
        after completion of the audit or compliance review, 
        respectively, unless such adjustment is approved by the 
        Secretary or the applicable delegated State, as 
        appropriate. 
          (C) If an overpayment is identified during an audit, 
        the Secretary shall allow a credit in the amount of the 
        overpayment.
          (4) For purposes of this section, the adjustment 
        period for any obligation [shall] may be the [six] 
        four-year period following the date on which an 
        obligation became due. The adjustment period shall be 
        suspended, tolled, extended, enlarged, or terminated by 
        the same actions as the limitation period in section 
        115.
  (b) Refunds.--
          (1) In general.--A request for refund is sufficient 
        if it--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) provides the Secretary information that 
                reasonably enables the Secretary to identify 
                the overpayment for which such refund is 
                sought; [and]
                  (D) provides the reasons why the payment was 
                an overpayment[.]; and
                  (E) is made within the adjustment period for 
                that obligation.

           *       *       *       *       *       *       *


            [NONCOMPETITIVE OIL AND GAS LEASE ROYALTY RATES

  [Sec. 114. The Secretary is directed to conduct a thorough 
study of the effects of a change in the royalty rate under 
section 17(c) of the Mineral Leasing Act of 1920 on: (a) the 
exploration, development, or production of oil or gas; and (b) 
the overall revenues generated by such change. Such study shall 
be completed and submitted to Congress within six months after 
the date of enactment of this Act.]

SEC. 115. SECRETARIAL AND DELEGATED STATES' ACTIONS AND LIMITATION 
                    PERIODS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Obligation Becomes Due.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Adjustments.--In the case of an adjustment under 
        section 111A(a) in which a recoupment by the lessee 
        results in an underpayment of an obligation, for 
        purposes of this Act the obligation becomes due on the 
        date the lessee or its designee makes the adjustment.
  (d) Tolling of Limitation Period.--The running of the 
limitation period under subsection (b) shall not be suspended, 
tolled, extended, or enlarged for any obligation for any reason 
by any action, including an action by the Secretary or a 
delegated State, other than the following:
          (1) Tolling agreement.--A written agreement executed 
        during the limitation period between the Secretary or a 
        delegated State and a lessee or its designee [(with 
        notice to the lessee who designated the designee)] 
        shall toll the limitation period for the amount of time 
        during which the agreement is in effect.
          (2) Subpoena.--
                  (A) The issuance of a subpoena to a lessee or 
                its designee [(with notice to the lessee who 
                designated the designee, which notice shall not 
                constitute a subpoena to the lessee)] in 
                accordance with the provisions of subparagraph 
                (B)(i) shall toll the limitation period with 
                respect to the obligation which is the subject 
                of a subpoena only for the period beginning on 
                the date the lessee or its designee receives 
                the subpoena and ending on the date on which 
                (i) the lessee or its designee has produced 
                such subpoenaed records for the subject 
                obligation, (ii) the Secretary or a delegated 
                State receives written notice that the 
                subpoenaed records for the subject obligation 
                are not in existence or are not in the lessee's 
                or its designee's possession or control, or 
                (iii) a court has determined in a final 
                decision that such records are not required to 
                be produced, whichever occurs first.

           *       *       *       *       *       *       *

  (h) Appeals and Final Agency Action.--
          (1) 33-month period.--Demands or orders issued by the 
        Secretary or a delegated State are subject to 
        administrative appeal in accordance with the 
        regulations of the Secretary. No State shall impose any 
        conditions which would hinder a lessee's or its 
        designee's immediate appeal of an order to the 
        Secretary or the Secretary's designee. The Secretary 
        shall issue a final decision in any administrative 
        proceeding, including any administrative proceedings 
        pending on the date of enactment of this section, 
        within [33] 48 months from the date such proceeding was 
        commenced or [33] 48 months from the date of such 
        enactment, whichever is later. The [33] 48-month period 
        may be extended by any period of time agreed upon in 
        writing by the Secretary and the appellant.
          (2) Effect of failure to issue decision.--If no such 
        decision has been issued by the Secretary within the 
        [33] 48-month period referred to in paragraph (1)--
                  (A) * * *

           *       *       *       *       *       *       *


[SEC. 116. ASSESSMENTS.

  [Beginning eighteen months after the date of enactment of 
this section, to encourage proper royalty payment the Secretary 
or the delegated State shall impose assessments on a person who 
chronically submits erroneous reports under this Act. 
Assessments under this Act may only be issued as provided for 
in this section.]

           *       *       *       *       *       *       *


TITLE II--STATES AND INDIAN TRIBES

           *       *       *       *       *       *       *


                         SHARED CIVIL PENALTIES

  Sec. 206. An amount equal to 50 per centum of any civil 
penalty collected by the Federal Government under this Act 
resulting from activities conducted by a State or Indian tribe 
pursuant to a cooperative agreement under section 202 or a 
State under a delegation under section 205, shall be payable to 
such State or tribe. [Such amount shall be deducted from any 
compensation due such State or Indian tribe under section 202 
or such State under section 205.]

           *       *       *       *       *       *       *


TITLE III--GENERAL PROVISIONS

           *       *       *       *       *       *       *


                         RELATION TO OTHER LAWS

  Sec. 304. (a) * * *

           *       *       *       *       *       *       *

  (e) Applicability to Other Minerals.--
          (1) Notwithstanding any other provision of law, 
        sections 107, 109, and 110 of this Act and the 
        regulations duly promulgated with respect thereto shall 
        apply to any lease authorizing the development of coal 
        or any other solid mineral on any Federal lands or 
        Indian lands, to the same extent as if such lease were 
        an oil and gas lease, on the same terms and conditions 
        as those authorized for oil and gas leases.
          (2) Notwithstanding any other provision of law, 
        sections 107, 109, and 110 of this Act and the 
        regulations duly promulgated with respect thereto shall 
        apply with respect to any lease, easement, right-of-
        way, or other agreement, regardless of form (including 
        any royalty, rent, or other payment due thereunder)--
                  (A) under section 8(k) or 8(p) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1337(k) 
                and 1337(p)); or
                  (B) under the Geothermal Steam Act (30 U.S.C. 
                1001 et seq.), to the same extent as if such 
                lease, easement, right-of-way, or other 
                agreement were an oil and gas lease on the same 
                terms and conditions as those authorized for 
                oil and gas leases.
          (3) For the purposes of this subsection, the term 
        ``solid mineral'' means any mineral other than oil, 
        gas, and geo-pressured-geothermal resources, that is 
        authorized by an Act of Congress to be produced from 
        public lands (as that term is defined in section 103 of 
        the Federal Land Policy and Management Act of 1976 (43 
        U.S.C. 1702)).

           *       *       *       *       *       *       *

                              ----------                              


              LAND AND WATER CONSERVATION FUND ACT OF 1965

TITLE I--LAND AND WATER CONSERVATION PROVISIONS

           *       *       *       *       *       *       *


  Sec. 2. Separate Fund.--During the period ending [September 
30, 2015] September 30, 2040, there shall be covered into the 
land and water conservation fund in the Treasury of the United 
States, which fund is hereby established and is hereinafter 
referred to as the ``fund'', the following revenues and 
collections:
  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Other Revenues.--In addition to the sum of the 
revenues and collections estimated by the Secretary of the 
Interior to be covered into the fund pursuant to this section, 
as amended, there are authorized to be appropriated annually to 
the fund out of any money in the Treasury not otherwise 
appropriated such amounts as are necessary to make the income 
of the fund not less than $300,000,000 for fiscal year 1977, 
and $900,000,000 for fiscal year 1978 and for each fiscal year 
thereafter through [September 30, 2015] September 30, 2040.
  (2) To the extent that any such sums so appropriated are not 
sufficient to make the total annual income of the fund 
equivalent to the amounts provided in clause (1), an amount 
sufficient to cover the remainder thereof shall be credited to 
the fund from revenues due and payable to the United States for 
deposit in the Treasury as miscellaneous receipts under the 
Outer Continental Shelf Lands Act, as amended (43 U.S.C. 1331 
et seq.)[: Provided, That notwithstanding the provisions of 
section 3 of this Act, moneys covered into the fund under this 
paragraph shall remain in the fund until appropriated by the 
Congress to carry out the purpose of this Act].
  Sec. 3. Appropriations.--[Moneys covered into the fund shall 
be available for expenditure for the purposes of this Act only 
when appropriated therefor. Such appropriations may be made 
without fiscal-year limitation. Moneys made available for 
obligation or expenditure from the fund or from the special 
account established under section 4(i)(1) may be obligated or 
expended only as provided in this Act.] Of the moneys covered 
into the fund, $900,000,000 shall be available each fiscal year 
for expenditure for the purposes of this Act without further 
appropriation. Moneys made available for obligation or 
expenditure from the fund or from the special account 
established under section 4(i)(1) may be obligated or expended 
only as provided in this Act.

           *       *       *       *       *       *       *

                              ----------                              


     SECTION 108 OF THE NATIONAL HISTORIC PRESERVATION ACT OF 1966

  Sec. 108. [To carry out the provisions of this Act, there is 
hereby established the Historic Preservation Fund (hereafter 
referred to as the ``fund'') in the Treasury of the United 
States.
  There shall be covered into such fund $24,400,000 for fiscal 
year 1977, $100,000,000 for fiscal year 1978, $100,000,000 for 
fiscal year 1979, $150,000,000 for fiscal year 1980, and 
$150,000,000 for fiscal year 1981 and $150,000,000 for each of 
fiscal years 1982 through 2015, from revenues due and payable 
to the United States under the Outer Continental Shelf Lands 
Act (67 Stat. 462, 469), as amended (43 U.S.C. 1338), and/or 
under the Act of June 4, 1920 (41 Stat. 813), as amended (30 
U.S.C. 191), notwithstanding any provision of law that such 
proceeds shall be credited to miscellaneous receipts of the 
Treasury. Such moneys shall be used only to carry out the 
purposes of this Act and shall be available for expenditure 
only when appropriated by the Congress. Any moneys not 
appropriated shall remain available in the fund until 
appropriated for said purposes: Provided, That appropriations 
made pursuant to this paragraph may be made without fiscal year 
limitation.] To carry out the provisions of this Act, there is 
hereby established the Historic Preservation Fund (hereinafter 
referred to as the ``fund'') in the Treasury of the United 
States. There shall be covered into the fund $150,000,000 for 
fiscal years 1982 through 2040 from revenues due and payable to 
the United States under the Outer Continental Shelf Lands Act 
(67 Stat. 462, 469), as amended (43 U.S.C. 1338) and/or under 
the Act of June 4, 1920 (41 Stat. 813), as amended (30 U.S.C. 
191), notwithstanding any provision of law that such proceeds 
shall be credited to miscellaneous receipts of the Treasury. 
Such moneys shall be used only to carry out the purposes of 
this Act and shall be available for expenditure without further 
appropriation.
                              ----------                              


NAVAL PETROLEUM RESERVES PRODUCTION ACT OF 1976

           *       *       *       *       *       *       *


TITLE I--NATIONAL PETROLEUM RESERVE IN ALASKA

           *       *       *       *       *       *       *


SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.

  (a) * * *

           *       *       *       *       *       *       *

  (i) Terms.--
          (1) * * *
          [(2) Renewal of leases with discoveries.--At the end 
        of the primary term of a lease the Secretary shall 
        renew for an additional 10-year term a lease that does 
        not meet the requirements of paragraph (1) if the 
        lessee submits to the Secretary an application for 
        renewal not later than 60 days before the expiration of 
        the primary lease and the lessee certifies, and the 
        Secretary agrees, that hydrocarbon resources were 
        discovered on one or more wells drilled on the leased 
        land in such quantities that a prudent operator would 
        hold the lease for potential future development.
          [(3) Renewal of leases without discoveries.--At the 
        end of the primary term of a lease the Secretary shall 
        renew for an additional 10-year term a lease that does 
        not meet the requirements of paragraph (1) if the 
        lessee submits to the Secretary an application for 
        renewal not later than 60 days before the expiration of 
        the primary lease and pays the Secretary a renewal fee 
        of $100 per acre of leased land, and--
                  [(A) the lessee provides evidence, and the 
                Secretary agrees that, the lessee has 
                diligently pursued exploration that warrants 
                continuation with the intent of continued 
                exploration or future potential development of 
                the leased land; or
                  [(B) all or part of the lease--
                          [(i) is part of a unit agreement 
                        covering a lease described in 
                        subparagraph (A); and
                          [(ii) has not been previously 
                        contracted out of the unit.
          [(4) Applicability.--This subsection applies to a 
        lease that is in effect on or after the date of 
        enactment of the Energy Policy Act of 2005.
          [(5) Expiration for failure to produce.--
        Notwithstanding any other provision of this Act, if no 
        oil or gas is produced from a lease within 30 years 
        after the date of the issuance of the lease the lease 
        shall expire.
          [(6) Termination.--No lease issued under this section 
        covering lands capable of producing oil or gas in 
        paying quantities shall expire because the lessee fails 
        to produce the same due to circumstances beyond the 
        control of the lessee.]

           *       *       *       *       *       *       *

  [(k) Exploration Incentives.--
          [(1) In general.--
                  [(A) Waiver, suspension, or reduction.--To 
                encourage the greatest ultimate recovery of oil 
                or gas or in the interest of conservation, the 
                Secretary may waive, suspend, or reduce the 
                rental fees or minimum royalty, or reduce the 
                royalty on an entire leasehold (including on 
                any lease operated pursuant to a unit 
                agreement), whenever (after consultation with 
                the State of Alaska and the North Slope Borough 
                of Alaska and the concurrence of any Regional 
                Corporation for leases that include land that 
                was made available for acquisition by the 
                Regional Corporation under the provisions of 
                section 1431(o) of the Alaska National Interest 
                Lands Conservation Act (16 U.S.C. 3101 et 
                seq.)) in the judgment of the Secretary it is 
                necessary to do so to promote development, or 
                whenever in the judgment of the Secretary the 
                leases cannot be successfully operated under 
                the terms provided therein.
                  [(B) Applicability.--This paragraph applies 
                to a lease that is in effect on or after the 
                date of enactment of the Energy Policy Act of 
                2005..
          [(2) Suspension of operations and production.--The 
        Secretary may direct or assent to the suspension of 
        operations and production on any lease or unit.
          [(3) Suspension of payments.--If the Secretary, in 
        the interest of conservation, shall direct or assent to 
        the suspension of operations and production on any 
        lease or unit, any payment of acreage rental or minimum 
        royalty prescribed by such lease or unit likewise shall 
        be suspended during the period of suspension of 
        operations and production, and the term of such lease 
        shall be extended by adding any such suspension period 
        to the lease.]

           *       *       *       *       *       *       *

                              ----------                              


NATIONAL WILDLIFE REFUGE SYSTEM ADMINISTRATION ACT OF 1966

           *       *       *       *       *       *       *


  Sec. 4. (a) * * *

           *       *       *       *       *       *       *

  (p) Destruction or Loss Of, or Injury To, Refuge Resources.--
          (1) Liability.--
                  (A) Liability to united states.--Any person 
                who destroys, causes the loss of, or injures 
                any refuge resource is liable to the United 
                States for an amount equal to the sum of--
                          (i) the amount of the response costs 
                        and damages resulting from the 
                        destruction, loss, or injury; and
                          (ii) interest on that amount 
                        calculated in the manner described 
                        under section1005 of the Oil Pollution 
                        Act of 1990 (33 U.S.C. 2705).
                  (B) Liability in rem.--Any instrumentality, 
                including a vessel, vehicle, aircraft, or other 
                equipment, that destroys, causes the loss of, 
                or injures any refuge resource shall be liable 
                in rem to the United States for response costs 
                and damages resulting from such destruction, 
                loss, or injury to the same extent as a person 
                is liable under subparagraph (A).
                  (C) Defenses.--A person is not liable under 
                this paragraph if that person establishes 
                that--
                          (i) the destruction or loss of, or 
                        injury to, the refuge resource was 
                        caused solely by an act of God, an act 
                        of war, or an act or omission of a 
                        third party, and the person acted with 
                        due care;
                          (ii) the destruction, loss, or injury 
                        was caused by an activity authorized by 
                        Federal or State law; or
                          (iii) the destruction, loss, or 
                        injury was negligible.
                  (D) Limits to liability.--Nothing in sections 
                30501 to 30512 or section 30706 of title 46, 
                United States Code, shall limit the liability 
                of any person under this section.
          (2) Response actions.--The Secretary may undertake or 
        authorize all necessary actions to prevent or minimize 
        the destruction or loss of, or injury to, refuge 
        resources, or to minimize the imminent risk of such 
        destruction, loss, or injury.
          (3) Civil actions for response costs and damages.--
                  (A) In general.--The Attorney General, upon 
                request of the Secretary, may commence a civil 
                action against any person or instrumentality 
                who may be liable under paragraph (1) for 
                response costs and damages. The Secretary, 
                acting as trustee for refuge resources for the 
                United States, shall submit a request for such 
                an action to the Attorney General whenever a 
                person may be liable for such costs or damages.
                  (B) Jurisdiction and venue.--An action under 
                this subsection may be brought in the United 
                States district court for any district in 
                which--
                          (i) the defendant is located, 
                        resides, or is doing business, in the 
                        case of an action against a person;
                          (ii) the instrumentality is located, 
                        in the case of an action against an 
                        instrumentality; or
                          (iii) the destruction of, loss of, or 
                        injury to a refuge resource occurred.
          (4) Use of recovered amounts.--Response costs and 
        damages recovered by the Secretary under this 
        subsection shall be retained by the Secretary in the 
        manner provided for in section 107(f)(1) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9607(f)(1)) and used 
        as follows:
                  (A) Response costs.--Amounts recovered by the 
                United States for costs of response actions and 
                damage assessments under this subsection shall 
                be used, as the Secretary considers 
                appropriate--
                          (i) to reimburse the Secretary or any 
                        other Federal or State agency that 
                        conducted those activities; and
                          (ii) after reimbursement of such 
                        costs, to restore, replace, or acquire 
                        the equivalent of any refuge resource.
                  (B) Other amounts.--All other amounts 
                recovered shall be used, in order of priority--
                          (i) to restore, replace, or acquire 
                        the equivalent of the refuge resources 
                        that were the subject of the action, 
                        including the costs of monitoring the 
                        refuge resources;
                          (ii) to restore degraded refuge 
                        resources of the refuge that was the 
                        subject of the action, giving priority 
                        to refuge resources that are comparable 
                        to the refuge resources that were the 
                        subject of the action; and
                          (iii) to restore degraded refuge 
                        resources of other refuges.
          (5) Definitions.--In this subsection, the term--
                  (A) ``damages'' includes--
                          (i) compensation for--
                                  (I)(aa) the cost of 
                                replacing, restoring, or 
                                acquiring the equivalent of a 
                                refuge resource; and
                                  (bb) the value of the lost 
                                use of a refuge resource 
                                pending its restoration or 
                                replacement or the acquisition 
                                of an equivalent refuge 
                                resource; or
                                  (II) the value of a refuge 
                                resource if the refuge resource 
                                cannot be restored or replaced 
                                or if the equivalent of such 
                                resource cannot be acquired;
                          (ii) the cost of conducting damage 
                        assessments;
                          (iii) the reasonable cost of 
                        monitoring appropriate to the injured, 
                        restored, or replaced refuge resource; 
                        and
                          (iv) the cost of enforcement actions 
                        undertaken by the Secretary in response 
                        to the destruction or loss of, or 
                        injury to, a refuge resource;
                  (B) ``response costs'' means the costs of 
                actions taken or authorized by the Secretary to 
                minimize destruction or loss of, or injury to, 
                refuge resources, or to minimize the imminent 
                risks of such destruction, loss, or injury, 
                including costs related to seizure, forfeiture, 
                storage, or disposal arising from liability, or 
                to monitor ongoing effects of incidents causing 
                such destruction, loss, or injury under this 
                subsection; and
                  (C) ``refuge resource'' means any living or 
                nonliving resource of a refuge that contributes 
                to the conservation, management, and 
                restoration mission of the System, including 
                living or nonliving resources of a marine 
                national monument that may be managed as a unit 
                of the System.

           *       *       *       *       *       *       *

                              ----------                              


COASTAL ZONE MANAGEMENT ACT OF 1972

           *       *       *       *       *       *       *


SEC. 320. STRENGTHENING COASTAL STATE OIL SPILL RESPONSE AND PLANNING.

  (a) Grants to States.--The Secretary may make grants to 
eligible coastal states--
          (1) to revise management programs approved under 
        section 306 (16 U.S.C. 1455) to identify and implement 
        new enforceable policies and procedures to ensure 
        sufficient response capabilities at the state level to 
        address the environmental, economic and social impacts 
        of oil spills or other accidents resulting from Outer 
        Continental Shelf energy activities with the potential 
        to affect any land or water use or natural resource of 
        the coastal zone; and
          (2) to review and revise where necessary applicable 
        enforceable policies within approved state management 
        programs affecting coastal energy activities and energy 
        to ensure that these policies are consistent with--
                  (A) other emergency response plans and 
                policies developed under Federal or State law; 
                and
                  (B) new policies and procedures developed 
                under paragraph (1); and
          (3) after a State has adopted new or revised 
        enforceable policies and procedures under paragraphs 
        (1) and (2)--
                  (A) the State shall submit the policies and 
                procedures to the Secretary; and
                  (B) the Secretary shall notify the State 
                whether the Secretary approves or disapproves 
                the incorporation of the policies and 
                procedures into the State's management program 
                pursuant to section 306(e).
  (b) Elements.--New enforceable policies and procedures 
developed by coastal states with grants awarded under this 
section shall consider, but not be limited to--
          (1) other existing emergency response plans, 
        procedures and enforceable policies developed under 
        other Federal or State law that affect the coastal 
        zone;
          (2) identification of critical infrastructure 
        essential to facilitate spill or accident response 
        activities;
          (3) identification of coordination, logistics and 
        communication networks between Federal and State 
        government agencies, and between State agencies and 
        affected local communities, to ensure the efficient and 
        timely dissemination of data and other information;
          (4) inventories of shore locations and infrastructure 
        and equipment necessary to respond to oil spills or 
        other accidents resulting from Outer Continental Shelf 
        energy activities;
          (5) identification and characterization of 
        significant or sensitive marine ecosystems or other 
        areas possessing important conservation, recreational, 
        ecological, historic, or aesthetic values;
          (6) inventories and surveys of shore locations and 
        infrastructure capable of supporting alternative energy 
        development; and
          (7) other information or actions as may be necessary.
  (c) Guidelines.--The Secretary shall, within 180 days after 
the date of enactment of this section and after consultation 
with the coastal states, publish guidelines for the application 
for and use of grants under this section.
  (d) Participation.--A coastal state shall provide opportunity 
for public participation in developing new enforceable policies 
and procedures under this section pursuant to sections 
306(d)(1) and 306(e), especially by relevant Federal agencies, 
other coastal state agencies, local governments, regional 
organizations, port authorities, and other interested parties 
and stakeholders, public and private, that are related to, or 
affected by Outer Continental Shelf energy activities.
  (e) Annual Grants.--
          (1) In general.--For each of fiscal years 2011 
        through 2015, the Secretary may make a grant to a 
        coastal state to develop new enforceable polices and 
        procedures as required under this section.
          (2) Grant amounts and limit on awards.--The amount of 
        any grant to any one coastal State under this section 
        shall not exceed $750,000 for any fiscal year. No 
        coastal state may receive more than two grants under 
        this section.
          (3) No state matching contribution required.--As it 
        is in the national interest to be able to respond 
        efficiently and effectively at all levels of government 
        to oil spills and other accidents resulting from Outer 
        Continental Shelf energy activities, a coastal state 
        shall not be required to contribute any portion of the 
        cost of a grant awarded under this section.
          (4) Secretarial review and limit on awards.--After an 
        initial grant is made to a coastal state under this 
        section, no subsequent grant may be made to that 
        coastal state under this section unless the Secretary 
        finds that the coastal state is satisfactorily 
        developing revisions to address offshore energy 
        impacts. No coastal state is eligible to receive grants 
        under this section for more than 2 fiscal years.
  (f) Applicability.--The requirements of this section shall 
only apply if appropriations are provided to the Secretary to 
make grants under this section. This section shall not be 
construed to convey any new authority to any coastal state, or 
repeal or supersede any existing authority of any coastal 
state, to regulate the siting, licensing, leasing, or 
permitting of energy facilities in areas of the Outer 
Continental Shelf under the administration of the Federal 
Government. Nothing in this section repeals or supersedes any 
existing coastal state authority.
  (g) Assistance by the Secretary.--The Secretary as authorized 
under section 310(a) and to the extent practicable, shall make 
available to coastal states the resources and capabilities of 
the National Oceanic and Atmospheric Administration to provide 
technical assistance to the coastal states to prepare revisions 
to approved management programs to meet the requirements under 
this section.
                              ----------                              


GEOTHERMAL STEAM ACT OF 1970

           *       *       *       *       *       *       *


SEC. 4. LEASING PROCEDURES.

  (a) * * *
  (b) Competitive Lease Sale Required.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Adjoining lands.--
                  (A) In general.--An area of qualified Federal 
                lands that adjoins other lands for which a 
                qualified lessee holds a legal right to develop 
                geothermal resources may be available for 
                noncompetitive lease under this section to the 
                qualified lessee at the fair market value per 
                acre, if--
                          (i) the area of qualified Federal 
                        lands--
                                  (I) consists of not less than 
                                1 acre, and not more than 640 
                                acres; and
                                  (II) is not already leased 
                                under this Act or nominated to 
                                be leased under subsection (a);
                          (ii) the qualified lessee has not 
                        previously received a noncompetitive 
                        lease under this paragraph in 
                        connection with the valid discovery for 
                        which data has been submitted under 
                        subclause (I) of clause (iii); and
                          (iii) sufficient geological and other 
                        technical data prepared by a qualified 
                        geothermal professional has been 
                        submitted by the qualified lessee to 
                        the relevant Federal land management 
                        agency that would engender a belief in 
                        individuals who are experienced in the 
                        subject matter that--
                                  (I) there is a valid 
                                discovery of geothermal 
                                resources on the lands for 
                                which the qualified lessee 
                                holds the legal right to 
                                develop geothermal resources; 
                                and
                                  (II) such thermal feature 
                                extends into the adjoining 
                                areas.
                  (B) Determination of fair market value.--
                          (i) In general.--The Secretary 
                        shall--
                                  (I) publish a notice of any 
                                request to lease land under 
                                this paragraph;
                                  (II) determine fair market 
                                value for purposes of this 
                                paragraph in accordance with 
                                procedures for making such 
                                determinations that are 
                                established by regulations 
                                issued by the Secretary;
                                  (III) provide to a qualified 
                                lessee and publish any proposed 
                                determination under this 
                                subparagraph of the fair market 
                                value of an area that the 
                                qualified lessee seeks to lease 
                                under this paragraph;
                                  (IV) provide to such 
                                qualified lessee the 
                                opportunity to appeal such 
                                proposed determination within 
                                the 30-day period after it is 
                                provided to the qualified 
                                lessee; and
                                  (V) provide to any interested 
                                member of the public the 
                                opportunity to appeal such 
                                proposed determination in 
                                accordance with the process set 
                                forth in parts 4, 1840, and 
                                3200.5 of title 43, Code of 
                                Federal Regulations (as in 
                                effect on the date of enactment 
                                of the Geothermal Production 
                                Expansion Act) within the 30-
                                day period after it published.
                          (ii) Limitation on nomination.--After 
                        publication of a notice of request to 
                        lease land under this paragraph, the 
                        Secretary may not accept under 
                        subsection (a) any nomination of the 
                        land for leasing unless the request has 
                        been denied or withdrawn.
                          (iii) Regulations: deadline; 
                        publication of proposed regulations.--
                        The regulations required under clause 
                        (i) shall be issued by not later than 
                        90 days after the date of enactment of 
                        this Act, and after publication of, and 
                        an opportunity for public comment on, 
                        the proposed regulations.
                  (C) Definitions.--In this paragraph--
                          (i) the term ``fair market value per 
                        acre'' means a dollar amount per acre 
                        that--
                                  (I) except as provided in 
                                this clause, shall be equal to 
                                the market value per acre as 
                                determined by the Secretary 
                                under regulations under this 
                                paragraph;
                                  (II) shall be determined by 
                                the Secretary with respect to a 
                                lease under this paragraph, by 
                                not later than the end of the 
                                90-day period beginning on the 
                                date the Secretary receives an 
                                application for the lease; and
                                  (III) shall be not less than 
                                the greater of--
                                          (aa) four times the 
                                        median amount paid per 
                                        acre for all lands 
                                        leased under this Act 
                                        in the preceding year; 
                                        or
                                          (bb) $50;
                          (ii)   the term ``industry 
                        standards'' means the standards by 
                        which a qualified geothermal 
                        professional assesses whether downhole 
                        or flowing temperature measurements 
                        with indications of permeability are 
                        sufficient to produce energy from 
                        geothermal resources as determined 
                        through flow or injection testing or 
                        measurement of lost circulation while 
                        drilling;
                          (iii) the term ``qualified Federal 
                        lands'' means lands that are otherwise 
                        available for leasing under this Act;
                          (iv) the term ``qualified geothermal 
                        professional'' means an individual who 
                        is an engineer or geoscientist in good 
                        professional standing with at least 
                        five years of experience in geothermal 
                        exploration, development, project 
                        assessment, or any combination of the 
                        forgoing;
                          (v) the term ``qualified lessee'' 
                        means a person that may hold a 
                        geothermal lease under part 3202.10 of 
                        title 43, Code of Federal Regulations, 
                        as in effect on the date of enactment 
                        of the Geothermal Production Expansion 
                        Act; and
                          (vi) the term ``valid discovery'' 
                        means a discovery of a geothermal 
                        resource by a new or existing slim hole 
                        or production well, that exhibits 
                        downhole or flowing temperature 
                        measurements with indications of 
                        permeability sufficient to meet 
                        industry standards.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    When it comes to the Gulf oil spill, it couldn't be clearer 
what the focus of Congress should be right now: making certain 
the well is permanently capped, the oil is cleaned up, BP is 
held fully responsible, that the people of the Gulf states get 
all the support they need, and that we get to the bottom of 
what happened so we can make the informed and complete reforms 
needed to ensure American offshore drilling is the safest in 
the world.
    Unfortunately, this bill does not have this focus and does 
not achieve these priorities. In fact, what this bill actually 
does is totally ignore efforts to get to the bottom of why this 
spill happened. And it uses the oil spill as an opportunity to 
try and pass page after page of new rules and laws on matters 
totally unrelated to the oil spill or offshore drilling.
    This bill makes major rewrites to offshore drilling 
policies without knowing the results of the numerous ongoing 
investigations. Reforms are clearly needed, but Congress 
shouldn't get ahead of the facts. To ensure it makes the right 
reforms, Congress must first know exactly what caused and 
contributed to this disaster. There is so much that isn't yet 
known. For example, the fail safe device of the Deepwater 
Horizon rig--the blowout preventer--is still a mile under the 
ocean. Specific changes to the law may be needed relating to 
blowout preventer devices, but how do we know what changes are 
needed if the failed equipment hasn't yet been retrieved or 
examined? Why have a Presidential Commission, and why did the 
House pass bills giving the Commission subpoena authority and 
millions of dollars to do its work, if this bill and the 
Committee aren't willing to consider their findings on what 
happened? Not to mention the multiple other investigations that 
are underway.
    Even more outrageous is this bill's attempt to use the oil 
spill tragedy as leverage to enact totally unrelated policies 
and increase federal spending on unrelated programs by billions 
of dollars. What does a solar panel in Nevada, a wind turbine 
in Montana, uranium for nuclear power, or a ban on fish farming 
have to do with the Gulf spill? Nothing--but the spill is a 
good excuse to try and pass otherwise stalled or unpopular new 
laws.
    This is precisely the motivation behind the 
Administration's call to use the oil spill to pass cap-and-
trade legislation and this legislation helps accomplish that 
goal. This is supposedly an oil spill bill, but instead it is 
loaded up with unrelated programs simply to setup a vehicle to 
add a job-killing cap-and-trade national energy tax. Where is 
the assurance and promise that the Waxman-Markey or Kerry-
Lieberman national energy tax bills won't ride this legislation 
over the finish line? There isn't any. What we do have is a 
prime time Oval Office speech by the President where he 
outlined his support for just such a plan.
    And all of these changes in the bill--those that refuse to 
wait for the facts on what caused this tragedy, and those that 
seek to monopolize on the disaster to enact new, unrelated 
policies and spending--there is no understanding of what impact 
they will have on jobs and the economy. In these tough economic 
times and with the Gulf Coast already reeling from the spill, 
Congress should know what effect proposed new laws would have 
on American jobs, the economy, and hurting Gulf Coast families 
and communities. Congress should be acting to improve the 
situation in the Gulf, not make it worse. Congress must take 
the care to ensure that reforms, especially the many premature 
and unrelated ones in this bill, will not cause greater 
economic damage than what is already being felt in the Gulf and 
across the nation.
    At the Committee markup of this bill, Republicans attempted 
to refocus this bill on the primary goals of restoring the Gulf 
and reorganizing the former Minerals Management Service. The 
restoration of the Gulf is a step that Congress can take now, 
and the reorganization is a step that Congress can take now. 
The rest of the original bill are either steps that are 
premature while the investigations are taking place, or steps 
that have nothing to do with responding to the Gulf disaster. 
Congress shouldn't rush ahead of the facts or exploit this oil 
spill tragedy.
                                   Doc Hastings.

                                  <all>
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