89–010 

Calendar No. 492 

111TH CONGRESS REPORT " ! SENATE 2d Session 111–236 

OUTER CONTINENTAL SHELF REFORM ACT 

JULY 28, 2010.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 3516] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 3516) to amend the Outer Continental Shelf 

Lands Act to reform the management of energy and mineral resources on the Outer Continental Shelf, and for other purposes, 

having considered the same, reports favorably thereon with amendments and recommends that the bill, as amended, do pass. 

CONTENTS 

Page 

Amendments ............................................................................................................ 1 

Purpose of the Measure ........................................................................................... 12 

Summary of Major Provisions ................................................................................ 12 

Background and Need ............................................................................................. 14 

Legislative History .................................................................................................. 16 

Committee Recommendation and Tabulation of Votes ......................................... 16 

Committee Amendments (explanation) .................................................................. 16 

Section-by-Section Analysis .................................................................................... 18 

Cost and Budgetary Considerations ....................................................................... 30 

Regulatory Impact Evaluation ................................................................................ 31 

Congressionally Directed Spending ........................................................................ 31 

Executive Communications ..................................................................................... 31 

Changes in Existing Law ........................................................................................ 41 

The amendments are as follows: 

Beginning on page 3, strike line 13 and all that follows through page 4, line 5, 

and insert the following: 

(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, which 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; 


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‘‘(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;’’; 

On page 7, line 23, insert ‘‘peer-reviewed’’ after ‘independent’’. 

On page 16, line 8, strike ‘‘body of evidence’’ and replace with ‘‘complete set of 

safety documentation’’. 

On page 16, line 25, strike ‘‘bond amounts’’ and insert ‘‘financial responsibility requirements’’. 

On page 17, lines 1 and 2, strike ‘‘set any bonds, surety, or other evidence of financial responsibility required in amounts adequate’’ and insert ‘‘adjust for inflation 

based on the Consumer Price Index for all Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, and recommend to Congress 

any further changes to existing financial responsibility requirements necessary’’. 

On page 17, line 10, strike ‘‘3’’ and insert ‘‘4’’. 

On page 18, line 7, strike ‘‘2 years’’ and insert ‘‘1 year’’. 

On page 18, line 9, strike ‘‘5’’ and insert ‘‘4.’’ 

On page 18, line 14, insert ‘‘income taxes and other significant financial elements,’’ after ‘‘taxes’’. 

On page 19, between lines 21 and 22, insert the following: 

‘‘(E) COMBINED REPORT.—The Secretary may combine the reports required by paragraphs (1) and (2)(D) into 1 report. 

On page 20, line 15, insert ‘‘prior public’’ after the word ‘‘after’’. 

On page 22, line 14, strike ‘‘potential’’ and insert ‘‘expected’’. 

On page 22, line 23, strike ‘‘necessary’’ and insert ‘‘to be used’’. 

On page 25, line 18, strike ‘‘engineering’’. 

On page 25, line 19, strike ‘‘system, including a’’ and insert ‘‘system by not less 

than 2 agency engineers, including a written’’. 

On page 26, lines 4 and 5, strike ‘‘degrade’’ and insert ‘‘compromise’’. 

On page 41, line 9, strike ‘‘The’’ and insert ‘‘To the extent necessary to fund the 

inspections described in this paragraph, the’’. 

On page 45, between lines 12 and 13, insert the following: 

(l) CONFLICTS OF INTEREST.—Section 29 of the Outer Continental Shelf Lands Act 

(43 U.S.C. 1355) is amended to read as follows: 

‘‘SEC. 29. CONFLICTS OF INTEREST. 

‘‘(a) RESTRICTIONS ON EMPLOYMENT.—No full-time officer or employee of the Department of the Interior who directly or indirectly discharged duties or responsibilities under this Act shall— 

‘‘(1) within 2 years after his employment with the Department has ceased— 

‘‘(A) knowingly act as agent or attorney for, or otherwise represent, any 

other person (except the United States) in any formal or informal appearance before; 

‘‘(B) with the intent to influence, make any oral or written communication 

on behalf of any other person (except the United States) to; or 

‘‘(C) knowingly aid, advise, or assist in— 

‘‘(i) representing any other person (except the United States in any 

formal or informal appearance before; or 

‘‘(ii) making, with the intent to influence, any oral or written communication on behalf of any other person (except the United States) to, 

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, 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; 

‘‘(2) within 1 year after his employment with the Department has ceased— 

‘‘(A) knowingly act as agent or attorney for, or otherwise represent, any 

other person (except the United States) in any formal or informal appearance before; 

‘‘(B) with the intent to influence, make any oral or written communication 

on behalf of any other person (except the United States) to; or 

‘‘(C) knowingly aid, advise, or assist in— 


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‘‘(i) representing any other person (except the United States in any 

formal or informal appearance before, or 

‘‘(ii) making, with the intent to influence, 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, inspection, enforcement action, 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) accept employment or compensation, during the 1-year period beginning 

on the date on which employment with the Department has ceased, from any 

person (other than the United States) that has a direct and substantial interest— 

‘‘(A) that was pending under the official responsibility of the employee as 

an officer or employee of the Department during the 1-year period preceding the termination of the responsibility; or 

‘‘(B) in which the employee participated personally and substantially as 

an officer or employee. 

‘‘(b) PRIOR EMPLOYMENT RELATIONSHIPS.—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 discharged 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 X, Code of Federal Regulations (or successor regulations). 

‘‘(d) EXEMPTIONS.—The Secretary may, by rule, exempt from this section clerical 

and support personnel who do not conduct inspections, perform audits, or otherwise 

exercise regulatory or policy making authority under this Act. 

‘‘(e) PENALTIES.— ‘‘(1) CRIMINAL PENALTIES.—Any person who violates paragraph (1) or (2) of 

subsection (a) or subsection (b) shall be punished in accordance with section 216 

of title 18, United States Code. 

‘‘(2) CIVIL PENALTIES.—Any person who violates subsection (a)(3) or (c) shall 

be punished in accordance with subsection (b) of section 216 of title 18, United 

States Code.’’. 

On page 45, between lines 13 and 14, insert the following: 

SEC. 7. STUDY ON THE EFFECT OF THE MORATORIA ON NEW DEEPWATER DRILLING IN THE 

GULF OF MEXICO ON EMPLOYMENT AND SMALL BUSINESSES. 

(a) IN GENERAL.—The Secretary of Energy, acting through the Energy Information Administration, shall publish a monthly study evaluating the effect of the moratoria resulting from the blowout and explosion of the mobile offshore drilling unit 

Deepwater Horizon that occurred on April 20, 2010, and resulting hydrocarbon releases into the environment, on employment and small businesses. 

(b) REPORT.—Not later than 60 days after the date of enactment of this Act and 

at the beginning of each month thereafter during the effective period of the moratoria described in subsection (a), the Secretary of Energy, acting through the Energy 

Information Administration, shall submit to the Committee on Energy and Natural 

Resources of the Senate and the Committee on Energy and Commerce of the House 

of Representatives a report regarding the results of the study conducted under subsection (a), including— 

(1) a survey of the effect of the moratoria on deepwater drilling on employment in the industries directly involved in oil and natural gas exploration in 

the Outer Continental Shelf; 


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(2) a survey of the effect of the moratoria on employment in the industries 

indirectly involved in oil and natural gas exploration in the Outer Continental 

Shelf, including suppliers of supplies or services and customers of industries directly involved in oil and natural gas exploration; 

(3) an estimate of the effect of the moratoria on the revenues of small business located near the Gulf of Mexico and, to the maximum extent practicable, 

throughout the United States; and 

(4) any recommendations to mitigate possible negative effects on small business concerns resulting from the moratoria. 

On page 46, strike lines 3 through 11 and insert the following: 

SEC. 8. SAFER OIL AND GAS PRODUCTION. 

(a) PROGRAM AUTHORITY.—Section 999A of the Energy Policy Act of 2005 (42 

U.S.C. 16371) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘ultra-deepwater’’ and inserting. ‘‘deepwater’’; and 

(B) by inserting ‘‘well control and accident prevention,’’ after ‘‘safe operations,’’; 

(2) in subsection (b)— 

(A) by striking paragraph (1) and inserting the following: 

‘‘(1) Deepwater architecture, well control and accident prevention, and deepwater technology, including drilling to deep formations in waters greater than 

500 feet’’; and 

(B) by striking paragraph (4) and inserting the following: 

‘‘(4) Safety technology research and development for drilling activities aimed 

at well control and accident prevention performed by the Office of Fossil Energy 

of the Department.’’; and 

(3) in subsection (d)— 

(A) in the subsection heading, by striking ‘‘NATIONAL ENERGY TECHNOLOGY LABORATORY’’ and inserting ‘‘OFFICE OF FOSSIL ENERGY OF THE DEPARTMENT’’; and 

(B) by striking ‘‘National Energy Technology Laboratory’’ and inserting 

‘‘Office of Fossil Energy of the Department’’. 

(b) DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND OTHER PETROLEUM RESEARCH AND DEVELOPMENT PROGRAM.—Section 999B of the Energy Policy 

Act of 2005 (42 U.S.C. 16372) is amended— 

(1) in the section heading, by striking ‘‘ULTRADEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND OTHER PETROLEUM’’ and inserting ‘‘SAFE OIL AND GAS PRODUCTION AND ACCIDENT PREVENTION’’; 

(2) in subsection (a), by striking. ‘‘, by increasing’’ and all that follows through 

the period at the end and inserting ‘‘and the safe and environmentally responsible exploration, development, and production of hydrocarbon resources.’’; 

(3) in subsection (e)(1)— 

(A) by redesignating subparagraphs (D) and (E) as subparagraphs (E) and 

(F), respectively; and 

(B) by inserting after subparagraph (C) the following: 

‘‘(D) projects will be selected on a competitive, peer-reviewed basis.’’; and 

(4) in subsection (d)— 

(A) in paragraph (6), by striking ‘‘ultradeepwater’’ and inserting ‘‘deepwater’’; 

(B) in paragraph (7)— 

(i) in subparagraph (A)— 

(I) in the subparagraph heading, by striking ‘‘ULTRA-DEEPWATER’’ 

and inserting ‘‘DEEPWATER’’; 

(II) by striking ‘‘development and’’ and inserting ‘‘research, development, and’’; and 

(III) by striking ‘‘as well as’’ and all that follows through the period at the end and inserting ‘‘aimed at improving operational safety of drilling activities, including well integrity systems, well control, blowout prevention, the use of non-toxic materials, and integrated systems approach-based management for exploration and 

production in deepwater.’’; 

(ii) in subparagraph (B), by striking ‘‘and environmental mitigation’’ 

and inserting ‘‘use of non-toxic materials, drilling safety, and environmental mitigation and accident prevention’’; 

(iii) in subparagraph (C), by inserting ‘‘safety and accident prevention, well control and systems integrity,’’ after ‘‘including’’; and 

(iv) by adding at the end the following: 


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‘‘(D) SAFETY AND ACCIDENT PREVENTION TECHNOLOGY RESEARCH AND DEVELOPMENT.—Awards from allocations under section 999H(d)(4) shall be expended on areas including— 

‘‘(i) development of improved cementing and casing technologies; 

‘‘(ii) best management practices for cementing, casing, and other well 

control activities and technologies; 

‘‘(iii) development of integrity and stewardship guidelines for— 

‘‘(I) well-plugging and abandonment; 

‘‘(II) development of wellbore sealant technologies; and 

‘‘(III) improvement and standardization of blowout prevention devices.’’; and 

(C) by adding at the end the following: 

‘‘(8) STUDY; REPORT.— 

‘‘(A) STUDY.—As soon as practicable after the date of enactment of this 

paragraph, the Secretary shall enter into an arrangement with the National 

Academy of Sciences under which the Academy shall conduct a study to determine— 

‘‘(i) whether the benefits provided through each award under this 

subsection during calendar year 2011 have been maximized; and 

‘‘(ii) the new areas of research that could be carried out to meet the 

overall objectives of the program. 

‘‘(B) REPORT.—Not later than January 1, 2012, the Secretary shall submit 

to the appropriate committees of Congress a report that contains a description of the results of the study conducted under subparagraph (A). 

‘‘(C) OPTIONAL UPDATES.—The Secretary may update the report described 

in subparagraph (B) for the 5-year period beginning on the date described 

in that subparagraph and each 5-year period thereafter.’’; 

(5) in subsection (e)— 

(A) in paragraph (2)— 

(i) in the second sentence of subparagraph (A), by inserting ‘‘to the 

Secretary for review’’ after ‘‘submit’’; and 

(ii) in the first sentence of subparagraph (B), by striking ‘‘Ultra-Deepwater’’ and all that follows through ‘‘and such Advisory Committees’’ 

and inserting ‘‘Program Advisory Committee established under section 

999D(a), and the Advisory Committee’’; and 

(B) by adding at the end the following: 

‘‘(6) RESEARCH FINDINGS AND RECOMMENDATIONS FOR IMPLEMENTATION.—The 

Secretary, in consultation with the Secretary of the Interior and the Administrator of the Environmental Protection Agency, shall publish in the Federal 

Register an annual report on the research findings of the program carried out 

under this section and any recommendations for implementation that the Secretary, in consultation with the Secretary of the Interior and the Administrator 

of the Environmental Protection Agency, determines to be necessary.’’; 

(6) in subsection (i)— 

(A) in the subsection heading, by striking ‘‘UNITED STATES GEOLOGICAL

SURVEY’’ and inserting ‘‘DEPARTMENT OF THE INTERIOR’’; and 

(B) by striking ‘‘, through the United States Geological Survey,’’; and 

(7) in the first sentence of subsection by striking ‘‘National Energy Technology 

Laboratory’’ and inserting ‘‘Office of Fossil Energy of the Department’’. 

(c) ADDITIONAL REQUIREMENTS FOR AWARDS.—Section 999C(b) of the Energy Policy Act of 2005 (42 U.S.C. 16373(b)) is amended by striking ‘‘an ultra-deepwater 

technology or an ultra-deepwater architecture’’ and inserting ‘‘a deepwater technology’’. 

(d) PROGRAM ADVISORY COMMITTEE.—Section 999D of the Energy Policy Act of 

2005 (42 U.S.C. 16374) is amended to read as follows: 

‘‘SEC. 999D. PROGRAM ADVISORY COMMITTEE. 

‘‘(a) ESTABLISHMENT.—Not later than 270 days after the date of enactment of the 

Safe and Responsible Energy Production Improvement Act of 2010, the Secretary 

shall establish an advisory committee to be known as the ‘Program Advisory Committee’ (referred to in this section as the ‘Advisory Committee’). 

‘‘(b) MEMBERSHIP.— 

‘‘(1) IN GENERAL.—The Advisory Committee shall be composed of members appointed by the Secretary, including— 

‘‘(A) individuals with extensive research experience or operational knowledge of hydrocarbon exploration and production; 

‘‘(B) individuals broadly representative of the affected interests in hydrocarbon production, including interests in environmental protection and safety operations; 


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‘‘(C) representatives of Federal agencies, including the Environmental 

Protection Agency and the Department of the Interior; 

‘‘(D) State regulatory agency representatives; and 

‘‘(E) other individuals, as determined by the Secretary. 

‘‘(2) LIMITATIONS.— ‘‘(A) IN GENERAL.—The Advisory Committee shall not include individuals 

who are board members, officers, or employees of the program consortium. 

‘‘(B) CATEGORICAL REPRESENTATION.—In appointing members of the Advisory Committee, the Secretary shall ensure that no class of individuals described in any of subparagraphs (A), (B), (D), or (E) of paragraph (1) comprises more than 1⁄3 of the membership of the Advisory Committee. 

‘‘(c) SUBCOMMITTEES.—The Advisory Committee may establish subcommittees for 

separate research programs carried out under this subtitle. 

‘‘(d) DUTIES.—The Advisory Committee shall— 

‘‘(1) advise the Secretary on the development and implementation of programs 

under this subtitle; and 

‘‘(2) carry out section 999B(e)(2)(B). 

‘‘(e) COMPENSATION.—A member of the Advisory Committee shall serve without 

compensation but shall be entitled to receive travel expenses in accordance with 

subchapter I of chapter 57 of title 5, United States Code. 

‘‘(f) PROHIBITION.—The Advisory Committee shall not make recommendations on 

funding awards to particular consortia or other entities, or for specific projects.’’. 

(e) DEFINITIONS.—Section 999G of the Energy Policy Act of 2005 (42 U.S.C. 16377) 

is amended— 

(1) in paragraph (1), by striking ‘‘200 but less than 1,500 meters’’ and inserting ‘‘500 feet’’; 

(2) by striking paragraphs (8), (9), and (10); 

(3) by redesignating paragraphs (2) through (7) and (11) as paragraphs (4) 

through (9) and (10), respectively; 

(4) by inserting after paragraph (1) the following: 

‘‘(2) DEEPWATER ARCHITECTURE.—The term ‘deepwater architecture’ means 

the integration of technologies for the exploration for, or production of, natural 

gas or other petroleum resources located at deepwater depths. 

‘‘(3) DEEPWATER TECHNOLOGY.—The term ‘deepwater technology’ means a discrete technology that is specially suited to address 1 or more challenges associated with the exploration for, or production of, natural gas or other petroleum 

resources located at deepwater depths.’’; and 

(5) in paragraph (10) (as redesignated by paragraph (3)), by striking ‘‘in an 

economically inaccessible geological formation, including resources of small producers’’. 

(f) FUNDING.—Section 999H of the Energy Policy Act of 2005 (42 U.S.C. 16378) 

is amended— 

(1) in the first sentence of subsection (a) by striking ‘‘Ultra-Deepwater and 

Unconventional Natural Gas and Other Petroleum Research Fund’’ and inserting ‘‘Safe and Responsible Energy Production Research Fund’’; 

(2) in subsection (d)— 

(A) in paragraph (1), by striking ‘‘35 percent’’ and inserting ‘‘21.5 percent’’; 

(B) in paragraph (2), by striking ‘‘32.5 percent’’ and inserting ‘‘21 percent’’; 

(C) in paragraph (4)— 

(i) by striking ‘‘25 percent’’ and inserting ‘‘30 percent’’; 

(ii) by striking ‘‘complementary research’’ and inserting ‘‘safety technology research and development’’; and 

(iii) by striking ‘‘contract management,’’ and all that follows through 

the period at the end and inserting ‘‘and contract management.’’; and 

(D) by adding at the end the following: 

‘‘(5) 20 percent shall be used for research activities required under sections 

20 and 21 of the Outer Continental Shelf Lands Act (43 U.S.C. 1346, 1347).’’; 

and 

(3) in subsection (f), by striking ‘‘Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund’’ and inserting ‘‘Safer Oil and 

Gas Production and Accident Prevention Research Fund’’. 

(g) CONFORMING AMENDMENT.—Subtitle J of title IX of the Energy Policy Act of 

2005 (42 U.S.C. 16371 et seq.) is amended in the subtitle heading by striking 

‘‘Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum 

Resources’’ and inserting ‘‘Safer Oil and Gas Production and Accident Prevention’’. 

On page 46, between lines 11 and 12, insert the following: 


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SEC. 8. NATIONAL COMMISSION ON OUTER CONTINENTAL SHELF OIL SPILL PREVENTION. 

(a) ESTABLISIIMENT.—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. 


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(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— 


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(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.— 


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(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 


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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. 

On page 46, strike line 12 and insert the following: 

SEC. 8. CLASSIFICATION OF OFFSHORE SYSTEMS. 

(a) REGULATIONS.— 

(1) IN GENERAL.—Not later than 2 years after the date of enactment of this 

Act, the Secretary of the Interior and the Secretary of the Department in which 

the Coast Guard is operating shall jointly issue regulations requiring systems 

(including existing systems) used in the offshore exploration, development, and 

production of oil and gas in the outer Continental Shelf (as defined in section 

2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) to be constructed, 

maintained, and operated so as to meet classification, certification, rating, and 

inspection standards that are necessary— 

(A) to protect the health and safety of affiliated workers; and 

(B) to prevent environmental degradation. 

(2) THIRD-PARTY VERIFICATION.—The standards established by regulation 

under paragraph (1) shall be verified through certification and classification by 

independent third parties that— 

(A) have been preapproved by both the Secretary of the Interior and the 

Secretary of the Department in which the Coast Guard is operating; and 

(B) have no financial conflict of interest in conducting the duties of the 

third parties. 

(3) MINIMUM SYSTEMS COVERED.—At a minimum, the regulations issued 

under paragraph (1) shall require the certification and classification by an independent third party who meets the requirements of paragraph (2) of— 

(A) mobile offshore drilling units; 

(B) fixed and floating drilling or production facilities; 

(C) drilling systems, including risers and blowout preventers; and 

(D) any other equipment dedicated to the safety systems relating to offshore extraction and production of oil and gas. 

(4) EXCEPTIONS.—The Secretary of the Interior and the Secretary of the Department in which the Coast Guard is operating may waive the standards established by regulation under paragraph (1) for an existing system only if— 

(A) the system is of an age or type where meeting such requirements is 

impractical; and 

(B) the system poses an acceptably low level of risk to the environment 

and to human safety. 

(b) AUTHORITY OF COAST GUARD.—Nothing in this section preempts or interferes 

with the authority of the Coast Guard. 


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SEC. 9. SAVINGS PROVISIONS. 

On page 47, strike line 7 and insert the following: 

SEC. 10. BUDGETARY EFFECTS. 

PURPOSE

The purposes of the measure are: to improve the management, 

oversight, accountability, safety, and environmental protection of 

all the resources on the Outer Continental Shelf; to provide independent development and enforcement of safety and environmental 

laws governing energy development and mineral extractions activities on the Outer Continental Shelf and related offshore activities; 

and to ensure a fair return to the taxpayer from, and independent 

management of, royalty and revenue activities from mineral and 

energy resources. 

SUMMARY OF MAJOR PROVISIONS

National Policy for the Outer Continental Shelf 

Section 4 clarifies U.S. policy to be applied in all management 

decisions regarding the Outer Continental Shelf. That policy provides that the vital resources of the U.S. Outer Continental Shelf 

are to be managed in a way that recognizes and balances the value 

of all of the resources, minimizes the impact of development on the 

environment, and acknowledges the long term economic value of 

balanced and orderly management. It further provides that it is national policy to allow energy and mineral development activities 

only when there is reasonable assurance of adequate protection 

from harm to life, health, the environment, property, or to other 

users of the waters, seabed, or subsoil. 

Structural Reform of Outer Continental Shelf Program Management 

Section 5 reforms the organizational structure of the OCS in several major ways. It requires reorganization of the agency so that 

the revenue collection functions are kept separate from the other 

functions; that no more than two other bureaus are to be designated to carry out the leasing, safety, and environmental functions in a way that minimizes the potential for conflicts of interest; 

and that the heads of the bureaus or offices created be appointed 

by the President and confirmed by the Senate. It provides the Secretary with new hiring and compensation authorities for a certain 

number of employees as necessary to ensure that the agency has 

the technical expertise required to carry out its safety and environmental functions. Finally, it creates a new Outer Continental Shelf 

Safety and Environmental Advisory Board made up of a balanced 

and unbiased group of experts identified through consultation with 

the National Academies of Science and Engineering to reflect a 

range of disciplines related to safe and environmentally compliant 

energy and mineral development activities. This Board is to provide independent peer reviewed scientific and technical advice for 

use by the agency in carrying out its safety and environmental responsibilities. 


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Safety, Environmental, and Financial Reform 

Section 6 amends various aspects of the Outer Continental Shelf 

Lands Act to strengthen the planning, safety, and environmental 

requirements involved in offshore energy development to prevent 

future accidents and to create a culture of excellence that governs 

both the regulators and the industry. In addition to mandating 

more stringent regulatory activity, it provides the Department of 

the Interior with additional scientific and technical capability and 

some new resources to help in the exercise of adequate oversight 

over the industry through development of regulations, inspections, 

and enforcement. 

Key components of this system include: requirements for exploration plans, separate deepwater operations plans, and drilling permits for individual wells that focus on review of the system of operations as a whole and as related to the offshore conditions in which 

the system will operate; required use of best available technology; 

full review of the systems by qualified engineers; an evidentiary 

demonstration of the safety of the system and any modifications; 

and new requirements to ensure that containment systems and oil 

spill response plans are adequate in advance of the start of operations. 

An operations plan is also required that will demonstrate that 

the industry employees who work on offshore facilities are adequately trained and experienced, and training requirements are established for all employees engaged in offshore operations. Time 

limits currently applicable to review of exploration plans are extended to ensure that the Secretary has adequate time for complete 

review of the plans. 

The Department of the Interior is required to establish independent internal programs for research and development of environmental and safety issues that must be used to inform the regulatory activity, so that science will always be transparent and an 

essential part of both areas. Existing research funding is redirected 

to this research to reflect its high priority status. This research, as 

well as data from required investigations of all accidents, must be 

made public. The Secretary is required to maximize the value of 

this information, in part by the exchange of technical information 

domestically and internationally to ensure widespread understanding of best practices. The Department is also required to seek the 

views of other agencies and to make public those views and the Department’s analysis of them to the extent the Department disagrees. 

The bill also will provide for a qualified independent third party 

classification and certification utilizing a technical and engineering 

review of key systems for each operation based on standards to be 

developed jointly by the Department of the Interior and the Coast 

Guard. This process is modeled on the certification and classification systems currently required for ocean-going vessels engaged in 

shipping operations, and will provide an additional level of oversight with the goal of safety and environmental protection. 

Enforcement of the law is strengthened in a number of respects. 

Inspection fees are established at a level that will fully fund all inspections, so that increased numbers of highly trained inspectors 

will be available to oversee compliance with these rules. Operators 

who are found to be not meeting diligence, safety, or environmental 


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requirements on other leases, or who have failed to meet their obligations for oil spill-related damages, are disqualified from bidding 

on new leases after public notice prior to the lease sale and opportunity for a hearing. The Secretary is required to review financial 

responsibility requirements to adjust the requirements for Consumer Price Index and make recommendations to Congress to ensure that they are adequate to permit lessees to fulfill obligations, 

including oil spill-related obligations. The National Transportation 

Safety Board is authorized to perform independent investigations of 

any accident at the Secretary’s request. Civil and criminal penalties for violations of any legal requirements are increased. New 

ethics requirements are established to prevent conflicts of interest 

and eliminate industry influence of regulators. 

To ensure a fair return to the taxpayer, the Secretary is required 

to periodically review royalty rates and to complete a comparative 

review of all components of relevant fiscal systems for oil and gas 

resources with periodic reports to Congress. 

Research for Safer Oil and Gas Production 

Section 9 amends section 999 of the Energy Policy Act of 2005 

to ensure research on the highest priority needs for safety and environmental protection in offshore oil and gas production; and to 

redirect a portion of the funding to the Department of the Interior 

to assist in carrying out its new research responsibilities as required by this Act. 

BACKGROUND AND NEED

The Department of the Interior is charged with the management 

of the energy and mineral resources contained on the Outer Continental Shelf—numerous and varied resources that all are vital to 

our national well-being. Between January 19, 1982 and June 18, 

2010, this responsibility was delegated by the Secretary to the Minerals Management Service (MMS). While the MMS was a small 

agency that was not well-known to the public, it was tasked with 

an increasingly complex and wide-ranging set of responsibilities 

which in some cases have a perceived or real potential for conflict. 

MMS had management responsibilities that determined the uses 

of portions of the Outer Continental Shelf. It had regulatory responsibilities that directly impacted the design and operation of 

complex systems of offshore energy production. It had planning responsibilities that significantly impacted the marine and coastal 

environment. These same planning decisions in some cases determined the level of federal revenue received from offshore operations. It also had responsibility for the collection of revenue that 

makes up a significant portion of the federal budget from both offshore and onshore mineral development on public lands. 

The issues over which MMS had oversight became vastly more 

complicated as offshore oil and gas operations moved into deeper 

water and used deeper wells. The industry developed increasingly 

sophisticated and complex technology for these undertakings. For 

example, between 1992–2006, 2493 wells were drilled at water 

depths greater than 1,000 feet. Wells are now routinely drilled to 

depths of 10,000 feet below the sea floor and often to 20,000 to 

25,000 feet deep. 


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In such operations the potential impacts can be extremely high, 

should there be a regulatory or operational failure. Containment of 

wells and control of oil discharges in deepwater can be much more 

complex than in shallow water or onshore. In addition, marine research has provided better data about the complexities of the ocean 

environment and its resources that must be considered in planning 

efforts, making these efforts much more sophisticated undertakings 

if done correctly. At the same time, the MMS budget did not keep 

pace with other agencies in terms of research capabilities. MMS 

had to become increasingly reliant on industry for understanding 

of the industry’s technology and for understanding safety mechanisms applicable to key components of the well design and operation. 

The primary statute governing offshore oil and gas development 

is the Outer Continental Shelf Lands Act (67 Stat.29), which originally was enacted in 1953 and last amended by the Energy Policy 

Act of 2005 (Public Law 109–58; 119 Stat.594). Some significant 

safety and environmental provisions have remained unchanged 

since 1978. Provisions of that Act suggest that the primary responsibility of the agency carrying out the Act is to provide national energy resources. Knowledge of the other resources in the marine environment—both economic and otherwise—has evolved significantly 

since initial enactment, as has the technological capability of the 

industry to locate and develop oil and gas in the outer continental 

shelf. 

In this legislative and regulatory context, on April 20, 2010 a loss 

of well control occurred and resulted in an explosion and fire on the 

semisubmersible Mobile Offshore Drilling Unit Deepwater Horizon 

about 50 miles off the coast of Louisiana. Eleven lives were lost in 

this incident and the vessel subsequently sank. 

This drilling operation was in a water depth of 4,993 feet and the 

well itself was at a depth of nearly 18,000 feet below the seabed. 

As of the date of Committee consideration of this bill, the well was 

not contained. Millions of gallons of oil had been discharged into 

the Gulf, with dire consequences for the people and wildlife of the 

Gulf coast, the regional marine and coastal environment, and the 

fishing and tourism industries. 

The exact causes of the accident are as yet unknown and several 

investigations are ongoing. However, testimony provided during the 

Committee’s hearings on the issue has demonstrated that, at a 

minimum, there were multiple technical failures as well as multiple regulatory failures. For example, the regulatory system failed 

to require adequate demonstrations of safety in well design, blowout prevention, containment capability, and oil spill response planning. Questions exist about the permitting of modifications to the 

well design, adequacy and frequency of required inspections, and 

balanced consideration generally of areas to be leased and risks associated with leasing in those areas. 

Even before the accident, in recognition of the increasing complexity and volume of MMS’s responsibilities, the Department of 

the Interior had requested that Congress consider enactment of an 

‘‘organic act’’ for the MMS as well as budget increases to fund more 

personnel, including inspectors, for offshore operations. Following 

the accident, the Secretary requested, among other things, that 

Congress eliminate the statutory time constraints applicable to the 


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agency’s review of lessee’s exploration plans, the first plans in 

which the agency receives specific, place-based design for the exploration process from a lessee for review. 

On May 19, 2010, in light of the Deepwater Horizon accident, the 

Secretary announced a plan to fundamentally restructure MMS 

and divide its responsibilities among three separate offices: a Bureau of Ocean Energy Management; a Bureau of Safety and Environmental Enforcement; and an Office of Natural Resources Revenue. On June 18, 2010, the Secretary renamed MMS the Bureau 

of Ocean Energy Management, Regulation, and Enforcement pending further reorganization. He has been and is still in the process 

of establishing additional safety requirements applicable to the 

areas of concern in the loss of well control, and has hired additional 

rig inspectors. 

However, it is clear that administrative changes alone cannot ultimately be sufficient to the challenges that are demonstrated by 

the Deepwater Horizon accident. Legislation will ensure that the 

necessary safety and environmental requirements can be developed, enforced and maintained regardless of changes in the leadership of the Department; that the agency always has the scientific 

and technical resources to lead instead of follow advances in technology of well design, containment and oil spill response; and that 

agency organization avoids conflicts of interest that can and have 

arisen due to its multiple responsibilities. Legislation is needed to 

create and embed an enduring culture of excellence in the regulatory agency that in turn can ensure the same level of excellence 

in industry operations. 

LEGISLATIVE HISTORY

S. 3516 was introduced by Senator Bingaman on June 21, 2010, 

and is cosponsored by Senators Murkowski, Dorgan and Stabenow. 

The Committee on Energy and Natural Resources held a hearing 

on environmental stewardship on November 19, 2009, four oversight hearings on offshore oil and gas development and the Deepwater Horizon Accident (May 11, May 18, May 25, and June 9, 

2010), and a legislative hearing on S. 3516 and related legislation 

on June 24, 2010. At its business meeting on June 30, 2010, the 

Committee on Energy and Natural Resources ordered S. 3516 to be 

favorably reported with amendments. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on June 30, 2010, by a unanimous voice vote of a 

quorum present, recommends that the Senate pass S. 3516, if 

amended as described herein. 

COMMITTEE AMENDMENTS

During its consideration of S. 3516, the Committee adopted seven 

amendments as follows: 

1. An amendment (#1) offered by Senator Shaheen to section 4 

of S. 3516, which in turn amends section 3 of the Outer Continental Shelf Lands Act relating to the national policy for the OCS. 

The amendment requires that the OCS be managed in a way that 

‘‘minimizes’’ rather than ‘‘recognizes’’ the potential impacts of the 


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development of energy, food, mineral, and other OCS resources on 

the marine and coastal environment and on human health and 

safety. 

2. An amendment (#2–17) offered by Senators Bingaman and 

Murkowski, to make a series of 16 minor, technical, or clarifying 

amendments to the bill. 

3. An amendment (#18) offered by Senators Bingaman and 

Wyden, which adds a new subsection (l) to section 6 of the bill. The 

amendment amends section 29 of the Outer Continental Shelf 

Lands Act to strengthen the post-employment restrictions currently 

found in the Act, to add new conflict-of-interest restrictions, and to 

prescribe civil and criminal penalties for violations of the restrictions. 

4. An amendment (#19) offered by Senator Landrieu, which adds 

a new section 7 to the bill, to require that the Secretary of Energy, 

acting through the Energy Information Administration, publish a 

monthly study evaluating the effect of the moratoria which followed the blowout and explosion of the mobile offshore drilling unit 

Deepwater Horizon that occurred on April 20, 2010. The amendment also requires that not later than 60 days after the date of enactment of this Act and at the beginning of each month thereafter 

during the effective period of the moratoria, the Secretary of Energy submit a report to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce 

of the House of Representatives regarding the results of the study. 

5. An amendment (#20) offered by Senator Udall, which adds a 

new section 9 to the bill and amends title IX, subtitle J of the Energy Policy Act of 2005, relating to ultra-deepwater and unconventional natural gas and other petroleum resources. The amendment 

refocuses the ultra-deepwater research and development program 

on deepwater, redefines ‘‘deepwater’’ to apply to depths of 500 feet 

or greater, and expands the scope of the program to include deepwater well control and accident prevention, improved safety and 

blowout prevention technologies, and best practices. The amendment also changes the name of the Fund established by section 

999H of the Energy Policy Act of 2005 and changes how the Fund 

is allocated among program elements. It provides some of the funding to the Department of the Interior for priority research required 

by the bill. 

6. An amendment (#21) offered by Senator Barrasso, which adds 

a new section 10 to the bill, to establish a National Commission on 

Outer Continental Shelf Oil Spill Prevention in the Legislative 

branch to be comprised of 10 members to be appointed by both political parties before September 15, 2010. Functions of the Commission include: conducting an investigation relating to the facts and 

circumstances of the Deepwater Horizon incident of April 20, 2010 

and the associated oil spill; identifying, reviewing, and evaluating 

the lessons learned from the Deepwater Horizon incident regarding 

structure, coordination, management policies, and procedures of the 

Federal Government and, if appropriate, State and local governments, non-governmental entities, and the private sector; and submitting to the President and the Congress reports containing the 

Commission’s findings, conclusions, and recommendations, including a final report 180 days after enactment. The Commission is 

given subpoena power and is authorized at a level of $10,000,000 


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for the first fiscal year and $3,000,000 for each fiscal year thereafter in which the Commission convenes. It will adjourn 60 days 

after filing its final report, with the authority to reconvene upon 

declaration of any oil spill of national significance. 

7. An amendment (#22) offered by Senator Cantwell, which adds 

a new section 11 to the bill, to require that not later than 2 years 

after the date of enactment, the Secretary of the Interior and the 

Secretary of the department in which the Coast Guard is operating 

jointly issue regulations requiring drilling systems used in the offshore exploration, development, and production of oil and gas in 

the OCS to be constructed, maintained, and operated so as to meet 

classification, certification, rating, and inspection standards that 

are necessary to protect the health and safety of workers and prevent environmental degradation. The standards established by the 

regulations are to be verified through certification and classification by qualified independent third parties that have been 

preapproved by the Secretaries and have no financial conflict of interest. The Secretaries may waive the standards for an existing 

system only if the system is of an age or type where meeting such 

requirements is impractical and the system poses an acceptably 

low level of risk to the environment and human safety. 

The amendments are explained in further detail in the sectionby-section analysis that follows. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title; table of contents 

This section sets forth the short title and table of contents. 

Section 2. Purposes 

This section sets forth the purposes of the legislation. 

Section 3. Definitions 

This section sets forth definitions. 

Section 4. National policy for the outer Continental Shelf 

This section amends the section 3 of the Outer Continental Shelf 

Lands Act (OCSLA) (43 U.S.C. 1332), pertaining to the national 

policy for the outer Continental Shelf (OCS). 

Paragraph (1) adds a new paragraph (3) to section 3 of the 

OCSLA that provides that the outer Continental Shelf (OCS) is a 

vital national resource reserve to be managed to recognize the need 

for domestic sources of energy, food, minerals, and other resources; 

minimizes the potential impacts of development of those resources 

on the marine and coastal environment and on human health and 

safety; and 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 OCS. 

Paragraphs (2), (3), and (4) make conforming changes. 

Paragraph (5) adds a new paragraph (6) to section 3 of the 

OCSLA that provides that it is the policy of the United States that 

energy exploration, development, and production on the OCS 

should be allowed only when it can be done in a manner that provides reasonable assurance of adequate protection against harm to 


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life, health, the environment, property or other users of the waters, 

seabed or subsoil. 

Paragraphs (6) and (7) are self-explanatory. 

Section 5. Structural reform of Outer Continental Shelf program 

management 

Section 5(a) amends the OCSLA by adding a new section 32 pertaining to structural reform of OCS program management. 

New OCLSA section 32(a) provides that the Secretary of the Interior shall establish not more than two bureaus to carry out the 

leasing, permitting, safety and environmental regulatory functions 

vested in the Secretary by this Act and the Federal Oil and Gas 

Royalty Management Act of 1982 (30 U.S.C. 1701, et seq.) related 

to the OCS. The Secretary is required to ensure to the maximum 

extent practicable that any potential organizational conflicts of interest are eliminated. The bureau or bureaus established pursuant 

to this subsection are to be headed by a Director appointed by the 

President by and with the advice and consent of the Senate. The 

remaining provisions of new subsection (a) pertaining to compensation and qualifications are self-explanatory. 

New OCSLA section 32(b) requires the Secretary to establish 

within the Department of the Interior an office to carry out the royalty and revenue management functions vested in the Secretary by 

the OCSLA and the Federal Oil and Gas Royalty Management Act 

of 1982 (30 U.S.C. 1701, et seq.). The office established pursuant 

to this subsection is to be headed by a Director appointed by the 

President by and with the advice and consent of the Senate. The 

remaining provisions of new subsection (b) pertaining to compensation and qualifications are self-explanatory. 

New OCSLA section 32(c) requires the Secretary of the Interior 

to establish an Outer Continental Shelf Safety and Environmental 

Advisory Board to provide the Secretary and the bureau Directors 

with independent scientific and technical advice on safe and environmentally compliant energy and mineral resource exploration, 

development and production activities. Paragraphs (2) through (5) 

address membership, meetings, reports, and travel expenses, and 

are self-explanatory. 

New OCSLA section 32(d) provides special personnel authorities 

for the direct hiring of critical personnel, including highly qualified 

accountants, scientists, engineers, or critical technical personnel. 

The authorities include critical pay authority and authority to reemploy civilian retirees. The section imposes certain limitations on 

the terms of employment for the employees hired under these special authorities. The section also provides for continuity of authorities and conforming amendments. 

Section 5(b) makes conforming changes. 

Section 6. Safety, environmental, and financial reform of the Outer 

Continental Shelf Lands Act 

This section amends several sections of the OCSLA to modify 

safety, environmental, and financial requirements. 

Section 6(a) amends section 2 of the OCSLA (43 U.S.C. 1331) by 

adding a new subsection (r) setting forth the definition of ‘‘safety 

case’’. 


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Section 6(b) amends section 5(a) of the OCSLA (43 U.S.C. 1334(a) 

by requiring the Secretary to prescribe and amend rules and regulations to provide for operational safety and the protection of marine and coastal environment. 

Section 6(c) amends section 6 of the OCSLA (43 U.S.C. 1335) by 

adding new subsections (f) and (g). New OCSLA section 6(f) requires the Secretary to review, periodically, minimum financial responsibility requirements and adjust for inflation and recommend 

to Congress any further changes to existing financial responsibility 

requirements necessary to permit lessees to fulfill all obligations 

under the OCSLA and the Oil Pollution Act of 1990 (33 U.S.C. 

2701, et seq.). New OCSLA section 6(g)(1) requires a periodic review of rental and royalty rates for leases under the OCSLA. New 

OCSLA section 6(g)(2) requires a periodic comparative review of fiscal systems of the United States and other resource owners, including states and foreign nations, for offshore oil and gas, including 

requirements for bonus bids, royalties, rentals, fees, oil and gas 

taxes, income taxes and other significant financial elements. The 

Secretary may combine the reports required under paragraphs (1) 

and (2)(D) into one report. 

Section 6(d) amends section 8 of the OCSLA (43 U.S.C. 1337) by 

striking subsection (d) and inserting a new subsection (d) which 

provides that no bid for a lease may be submitted by any entity 

that the Secretary finds, after prior public notice and an opportunity for a hearing, is not meeting due diligence, safety, or environmental requirements on other leases, or is a responsible party 

for a vessel or facility from which oil is discharged for purposes of 

section 1002 of the Oil Pollution Act of 1990 and has failed to meet 

the obligations of the responsible party under that Act to provide 

compensation for covered removal costs and damages. It is the 

Committee’s intention that prior public notice of any such noncompliance occur at the time of the lease sale announcement. 

Section 6(e)(1) amends section 11(c) of the OCSLA (43 U.S.C. 

1340(c)) to replace the requirement that the Secretary approve an 

exploration plan within 30 days with a requirement that the approval take place by the deadline described in new paragraph (5). 

Section 6(e)(1) further amends the OCSLA by adding a new section 11(c)(3) that specifies certain requirements for the exploration 

plan, including: a complete description and schedule of exploration 

activities; a description of the equipment to be used for exploration 

activities, including a description of the drilling unit; a statement 

of the design of major safety-related equipment; a statement demonstrating the equipment meets the best available technology requirements; a map showing the location of each well; a scenario for 

the potential blowout of the well involving the highest expected volume of liquid hydrocarbons; and a description of the response plan 

to control the blowout and manage the accompanying discharge of 

hydrocarbons. Before conducting exploration activities in water 

depths greater than 500 feet, the lessee must submit to the Secretary for approval a deepwater operations plan prepared by the 

lessee, which must be based on best available technology to carry 

out the exploration activity and blowout response plan. The Secretary shall not approve the plan unless it includes a technical systems analysis as specified, including blowout prevention technology 

and blowout and spill response plans. 


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Section 6(e)(1) further amends the OCSLA by adding a new section 11(c)(5) that provides that for leases issued under a sale held 

after March 17, 2010, the deadline for approval of an exploration 

plan is 90 days, except that an additional 180 days may be taken 

if the Secretary makes a finding that additional time is necessary 

to complete any environmental, safety, or other reviews. The Secretary may extend the 30 day deadline with the consent of the lessee for leases issued under a sale held on or before March 17, 2010. 

March 17, 2010 is the date of the last lease sale held prior to the 

Deepwater Horizon accident. 

Section 6(e)(2) makes conforming changes. 

Section 6(e)(3) amends section 11(d) of the OCSLA (43 U.S.C. 

1340(d)) by striking subsection (d) and inserting a new subsection 

that provides that the Secretary require that the lessee obtain a 

drilling permit prior to drilling a well under an exploration plan 

and before significantly modifying a well design originally approved 

by the Secretary. The Secretary may not grant any drilling permit 

until the date of completion of a full review of the well system by 

not less than 2 agency engineers, including a written determination 

that critical safety systems will use best available technology and 

blowout preventions systems will include redundancy and remote 

triggering capability. The Secretary may not approve any modification of a permit without a determination, after an additional engineering review, that the modification will not compromise the safety of the well system previously approved. The Secretary may not 

grant any drilling permit or modification of a permit until the date 

of completion and approval of a safety and environmental management plan that specifies the expertise and experience level of crew 

members who will be present on the rig and that requires that not 

later than May 1, 2012, all employees on the rig meet certain training and experience requirements. 

Section 6(e)(3) further amends section 11 by adding a new subsection (e) which requires that the Secretary disapprove an exploration plan if the Secretary makes certain determinations as specified. New OCSLA section 11(e) applies the Act’s provisions relating 

to compensation if an exploration plan is disapproved under the 

subsection. 

Section 6(f)(1) amends section 18(a) of the OCSLA (43 U.S.C. 

1344(a)) to include the consideration of protection of marine and 

coastal environment and resources in developing the schedule for 

leasing on the OCS, and to require that equal consideration is 

given to certain factors in developing the oil and gas leasing program. The remaining provision is self-explanatory. 

Section 6(f)(2) amends section 18(b) of the OCSLA (43 U.S.C. 

1344(b)) to require that additional items be considered in estimating the appropriations and staff needed to carry out the leasing 

program. 

Section 6(f)(3) amends section 18(d)(2) of the OCSLA (43 U.S.C. 

1344(d)(2)) to require the submission by the Secretary under that 

paragraph to indicate why any specific recommendation of the head 

of a Federal agency with respect to a proposed leasing program was 

not accepted. 

Section 6(f)(4) amends section 18(g) of the OCSLA (43 U.S.C. 

1344(g) to list additional information that may be obtained by the 


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Secretary in preparing an environmental impact statement and 

other evaluations required by the section. 

Section 6(f)(5) amends section 18 of the OCSLA (43 U.S.C. 1344) 

by adding a new subsection (i) that requires the Secretary to carry 

out a program of research and development to ensure the continued 

improvement of methodologies for characterizing resources of the 

OCS and conditions that may affect the ability to develop and use 

those resources in a safe, sound, and environmentally responsible 

manner. This may include activities to provide accurate resource 

estimates. These activities are not to be considered leasing or preleasing activities. This section is not intended to alter other provisions of the Act related to activities for characterizing the resources 

of the OCS including environmental permitting requirements. 

Section 6(g) amends section 20 of the OCSLA (43 U.S.C. 1346) 

by making conforming changes and by inserting a new subsection 

(a) that requires the Secretary to carry out programs for the collection, evaluation and dissemination of environmental and other resource data relevant to carrying out the OCSLA. New OCSLA section 20(a) sets forth the scope of the research and the use of the 

data. The subsection requires that the program be carried out in 

a manner that is programmatically separate and distinct from the 

leasing program and provides for external scientific review of studies. Section 6(g) amends redesignated section 20(b) of the OCSLA 

to require an environmental study every three years of any area or 

region included in any oil and gas lease sale. 

Section 6(h)(1) amends section 21(a) of the OCSLA (43 U.S.C. 

1347(a)) to require not later than May 1, 2011, and every three 

years thereafter, a 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 minerals on the OCS. 

Section 6(h)(2) amends section 21 of the OCSLA by striking subsection (b) and inserting a new subsection. New OCSLA subsection 

21(b)(1) requires on all new drilling and production operations and, 

to the maximum extent practicable, on existing operations, the use 

of the best available and safest technologies and practices, if the 

failure of the equipment would have a significant effect on safety, 

health, or the environment. New OCSLA section 21(b)(2) requires 

the Secretary to identify and publish not later than every three 

years an updated list of best available technologies for key areas 

of well design and operation. It is the Committee’s intention that 

this list be maintained to reflect developing technologies and not 

preclude the use of improved equipment developed between updates. New OCSLA section 21(b)(3) requires that the Secretary promulgate regulations requiring a safety case to be submitted along 

with each new application for a permit to drill. 

New OCSLA section 21(b)(4) requires the Secretary to issue regulations no later than May 1, 2011, setting standards for training 

for all workers on offshore facilities conducting energy and mineral 

resource exploration, development, and production operations on 

the OCS. The standards shall require that any worker who has less 

than 5 years of applied experience pass a certification requirement 

after receiving appropriate training. The new section sets forth additional requirements regarding employee training that are self-explanatory. 


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Section 6(h)(3) amends section 21 of the OCSLA by adding a new 

subsection (g) that requires the Secretary to carry out a program 

of research, development, and risk assessment to address technology and development issues associated with OCS energy and 

mineral resource activities. New OCLSA section 21(g)(2) sets for 

the specific areas of focus for the program and is self-explanatory. 

New OCSLA section 21(g)(3) requires the Secretary to carry out 

programs to facilitate the exchange and dissemination of scientific 

and technical information and best practices. The Secretary is further directed to carry out programs to cooperate with international 

organizations and foreign governments to share information and 

best practices related to management of safety and environmental 

issues associated with energy and mineral resource exploration, 

production and development on the OCS. 

New OCSLA section 21(g)(4) sets forth reporting requirements 

and is self-explanatory. New OCSLA section 21(g)(5) requires the 

Secretary to create a program within the appropriate bureau that 

shall be programmatically separate and distinct from the leasing 

program to carry out these studies and activities, to provide for external scientific review, and to make certain information available 

to the public. 

Section 6(i)(1) amends section 22(d)(1) of the OCSLA (43 U.S.C. 

1348(d)(1)) to require investigations of accidents that presented a 

serious risk to human or environmental safety, including: each loss 

of well control, blowout, and activation of a blowout preventer. Section 22(d)(1) is further amended to provide that the lessee shall cooperate with the investigation as a condition of the lease. 

Section 6(i)(2) amends section 22(e) of the OCSLA (43 U.S.C. 

1348(e)) by redesignating the existing text as paragraph (1) and 

adding a new paragraph (2) that requires the Secretary to investigate any allegation of the existence of a violation of a safety regulation issued under the OCSLA from an employee of a lessee or a 

subcontractor. 

Section 6(i)(3) amends Section 22 of the OCSLA by adding a new 

subsection (g) authorizing the National Transportation Safety 

Board to conduct, at the request of the Secretary of the Interior, 

an independent investigation of certain accidents occurring on the 

OCS and involving activities under the OCSLA. New subsection (g) 

further provides that for purposes of an investigation under this 

subsection, the accident that is the subject of the request by the 

Secretary shall be determined to be a transportation accident within the meaning of that term in chapter 11 of title 49 of the United 

States Code. 

Section 6(i)(3) further amends section 22 of the OCSLA by adding a new subsection (h) that requires the Secretary to make available to lessees and the public in a public database technical information about the causes and corrective actions taken for all incidents investigated under this section. 

Section 6(i)(3) further amends section 22 of the OCSLA by adding a new subsection (i) that requires, to the extent necessary to 

fund the inspections described in this paragraph, the Secretary to 

collect from the designated operator for facilities subject to inspection under subsection (c), a non-refundable inspection fee which 

shall be deposited in the Ocean Energy Enforcement Fund. The 

Secretary shall establish the fee by regulation at a level necessary 


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to offset the annual expenses of the inspections using a schedule 

that reflects differences in complexity among the classes of facilities to be inspected. Monies from the Fund may be expended only 

for inspections and shall be subject to appropriation. The subsection further provides that the Secretary is required to prepare 

a report on the operation of the Fund and to submit the report to 

the Congress, and need not collect the fee if inspections are adequately funded. The remaining provisions in new OCSLA section 

22(i) are self-explanatory. 

Section 6(j)(1) amends section 24 of the OCSLA (43 U.S.C. 1350) 

by striking subsection (b) and inserting a new subsection (b). Section 24(b)(1) increases civil administrative penalties to $75,000 per 

day of the continuance of the violation. New OCSLA section 

24(b)(2) provides that the Secretary may assess, collect, and compromise any penalty under paragraph (1). New OCSLA section 

24(b)(3) provides that no penalty shall be assessed until the person 

charged with a violation has been given the opportunity for a hearing. New OCSLA section 24(b)(4) provides that the civil penalty 

amount shall increase annually to reflect any increases in the Consumer Price Index for All Urban Consumers. 

Section 6(j)(2) amends section 24(c) of the OCSLA (43 U.S.C. 

1350(c)) to increase the corresponding criminal penalty from not 

more than $100,000 per violation to not more than $10,000,000. 

The subsection is further amended to provide that the penalty 

amount shall increase each year to reflect any increases in the 

Consumer Price Index for All Urban Consumers. 

Section 6(j)(3) amends section 24(d) of the OCSLA (43 U.S.C. 

1350(d)) to establish an additional basis for criminal liability for officers and agents of a corporation or other entity for authorizing, 

ordering, or carrying out proscribed activities with reckless disregard. 

Section 6(k) amends section 25 of the OCSLA (43 U.S.C. 1351) 

to delete exceptions from certain requirements for the Gulf of Mexico. 

Section 6(l) amends section 29 of the OCSLA (43 U.S.C. 1355) to 

strengthen the employment restrictions currently found in section 

29, add conflict of interest restrictions, and stiffen penalties for violations of the restrictions. 

Under current law, section 29 imposes two sets of employment 

restrictions on any full-time officer or employee of the Department 

of the Interior who directly or indirectly discharged duties or responsibilities under the OSCLA and who was at any time during 

the 12 months preceding the termination of his employment with 

the Department compensated under the Executive Schedule or at 

or above the GS–16 level of the General Schedule. One set applies 

for two years after the employee’s employment with the Department ends and restricts appearances before, communications to, 

and aiding and assisting in appearances before federal agencies, officers, and employees in any particular matter involving a specific 

party in which the United States is a party or has a direct and substantial interest, and which was actually pending under the employee’s official responsibility within one year before his or her termination or in which he or she participated personally and substantially. The second set applies for one year after the employee’s 

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tions to the Department of the Interior or any officer or employee 

on any particular matter that is pending before the Department or 

in which the Department has a substantial interest. 

Subsection (l) redesignates the existing section 29 as subsection 

(a) of an expanded section 29. It eliminates the current language 

limiting the restrictions to senior officials and employees, thereby 

making the restrictions applicable to all full-time officers and employees discharging duties or responsibilities under the OSCLA. It 

expands the two-year restrictions by expressly including advising 

(in addition to aiding and assisting) in the list of restricted activities in paragraph (1)(C), and by banning aiding, advising, or assisting others in making prohibited communications as well as in making prohibited appearances in paragraph (1)(C). It expands the oneyear restrictions by adding a new paragraph (2)(C) that bans aiding, advising or assisting others in making prohibited appearances 

or prohibited communications. 

In addition, subsection (l) adds a new paragraph (3) to the redesignated section 29(a), which prohibits all officers and employees 

discharging duties or responsibilities under the OSCLA from accepting employment or compensation within one year after his or 

her employment has ceased from any person that has a direct and 

substantial interest which was actually pending under his or her 

official responsibility during the year prior to his or her termination or in which he participated personally and substantially. 

Subsection (l) also adds 4 new subsections to section 29. Subsection (b) prohibits any full-time officer or employee of the Department of the Interior who directly or indirectly discharges duties or 

responsibilities under the OSCLA from participating personally 

and substantially in any particular matter in which— 

(1) the officer or employee or his or her spouse, minor child, 

or general partner has a financial interest; 

(2) any organization in which the officer or employee is serving as an officer, director, trustee, or general partner, or employee has a financial interest; 

(3) any person or organization with whom the officer or employee is negotiating or has arranged future employment has 

a financial interest; or 

(4) any person or organization in which the officer or employee, during the preceding year, served as an officer, director, trustee, general partner, agent, attorney, consultant, contractor, or employee has a financial interest. 

Section 29 of the OCSLA currently contains no comparable provision, though the federal criminal code and the Standards of Ethical 

Conduct for Employees of the Executive Branch do. Section 208 of 

title 18 of the United States Code already makes it a felony for an 

officer or employee of the executive branch to participate in particular matters covered by items (1), (2), and (3) above. In addition, 

section 502 of the Standards of Ethical Conduct prohibit a federal 

employee from participating in any particular matter described in 

item (4). 5 C.F.R. 2635.502(b)(iv). 

Subsection (c) prohibits any full-time officer or employee of the 

Department of the Interior who directly or indirectly discharged 

duties or responsibilities under the OSCLA from soliciting or accepting any gifts in violation of the gift ban in the Standards of 


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Ethical Conduct for Employees of the Executive Branch, 5 C.F.R. 

2635, subpart B. 

Subsection (d) authorizes the Secretary to exempt, by rule, clerical or support personnel who would otherwise be covered by section 29, as amended, if they do not conduct inspections, perform 

audits, or otherwise exercise regulatory or policy making authority 

under the OCSLA. 

Subsection (e) prescribes penalties for violations of section 29, as 

amended. As it now stands, section 29 itself does not contain penalties for its violation. The federal criminal code, however, provides 

that a violation of the post-employment restrictions in 18 U.S.C. 

207, which are similar to those in paragraphs (1) and (2) of the 

amended section 29(a), and the conflict-of-interest restrictions in 18 

U.S.C. 208, which are similar to those in paragraphs (1), (2), and 

(3) of the amended section 29(b), is a felony, punishable by imprisonment for up to one year, or up to five years if the violation is 

willful, criminal fines of up to $250,000, and civil penalties of up 

to $50,000 or the amount of compensation which the person received for the prohibited conduct. 18 U.S.C. 216; 18 U.S.C. 3571. 

Violations of the provisions of the Standards of Ethical Conduct 

similar to subsections (a)(3), (b)(4), and (c) of the amended section 

29 are not criminal, and are punishable by disciplinary employment actions, such as reprimand, suspension, demotion, or removal, rather than civil or criminal penalties. 

Subsection (e) prescribes penalties for violations of section 29 

that are generally comparable to the penalties for similar violations 

of federal law. Paragraph (1) provides that any person who violates 

the post-employment restrictions in paragraphs (1) or (2) of the 

amended section 29(a), which are comparable to restrictions in 18 

U.S.C. 207, or the conflict-of-interest restrictions in subsection (b), 

which are comparable to restrictions in 18 U.S.C. 208, shall be 

punishable in accordance with 18 U.S.C. 216, which provides for 

imprisonment for up to one year, or up to five years if the violation 

is willful, criminal fines of up to $250,000, and civil penalties of up 

to $50,000 or the amount of compensation which the person received for the prohibited conduct. 18 U.S.C. 216; 18 U.S.C. 3571. 

Paragraph (2) provides that any person who violates the post-employment restriction in section 29(a)(3) or the gift ban in subsection 

(c) shall be punishable in accordance with subsection (b) of 18 

U.S.C. 216, which provides for a civil penalty of up to $55,000 

($50,000 adjusted for inflation in accordance with the Federal Civil 

Monetary Penalties Inflation Adjustment Act of 1990). 28 C.F.R. 

85.3(c). The penalty for violating the post-employment restriction in 

section 29(a)(3) is comparable to the penalty for violating the similar post-employment restriction on federal procurement officers by 

the Procurement Integrity Act, 41 U.S.C. 423. The penalties for violating the conflict-of-interest restriction in section 29(b)(4) and the 

gift ban in section 29(c) are harsher than those provided by current 

law, which are now limited to disciplinary employment actions. 

The Committee notes that section 24(c) of the OCSLA provides 

that ‘‘any person’’ who fails to comply with ‘‘any provision’’ of the 

OCSLA is subject to a civil penalty of up to $20,000 for each day 

of failure, and that any person who knowingly and willfully violates 

any provision of the OCSLA may be punished by a fine of up to 

$100,000 or imprisoned for up to 10 years, or both. Section 6(j) of 


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S. 3516 amends section 24 of the OCSLA to increase the maximum 

civil penalty from $20,000 to $75,000 per day of violation, and to 

increase the maximum criminal fine from $100,000 to $10,000,000. 

While the broad language of section 24(c) could be read to apply 

to section 29, the Committee is not aware of any instance in which 

section 24(c) penalties have been imposed on an officer or employee 

of the Department for violating the employment restrictions of section 29. The Department has informally advised the Committee 

that ‘‘there is some ambiguity as to whether section 24 would be 

applicable to section 29.’’ Accordingly, the Committee chose to prescribe specific penalties for violating section 29 in section 29 itself, 

rather than rely on section 24(c). 

Subsection (l) does not define key terms already used in section 

29 of the OCSLA, such as ‘‘particular matter’’, ‘‘specific party’’, ‘‘direct and substantial interest’’, ‘‘official responsibility’’, and ‘‘personal and substantial participation.’’ The Committee believes that 

the meaning of these terms have long been established by federal 

ethics laws and the Standards of Ethical Conduct for Employees of 

the Executive Branch, and does not intend to alter their established meaning. 

The Committee intends the amendments to section 29 of the 

OCSLA made by subsection (l) to operate prospectively. Section 

29(a), as amended, by its terms can apply only to any ‘‘full-time officer or employee of the Department of the Interior who directly or 

indirectly discharges duties or responsibilities under’’ the OCSLA 

on or after the date of enactment of the Outer Continental Shelf 

Reform Act of 2010. The amendments made to the post-employment restrictions are intended to apply to officers or employees 

who leave the Department on or after the effective date of the Act, 

and under ordinary rules of statutory construction, do not affect 

the substantive rights of officers or employees who leave the Department prior to the effective date of the Act. 

Section 7. Study on the effect of the moratoria on new deepwater 

drilling in the Gulf of Mexico on employment and small businesses 

Section 7(a) provides that the Secretary of Energy, acting 

through the Energy Information Administration, shall publish a 

monthly study evaluating the effect of the moratoria which followed the blowout and explosion of the mobile offshore drilling unit 

Deepwater Horizon that occurred on April 20, 2010. 

Section 7(b) provides that not later than 60 days after the date 

of enactment of this Act and at the beginning of each month thereafter during the effective period of the moratoria, the Secretary of 

Energy shall submit a report to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and 

Commerce of the House of Representatives a report regarding the 

results of the study conducted under subsection (a). The subsection 

further specifies the contents of the report and is self-explanatory. 

Section 8. Reform of Other Law 

Section 8 amends section 388(b) of the Energy Policy Act of 2005 

(43 U.S.C. 1337 note) to add a new paragraph (4) that requires that 

with respect to the coordinated mapping initiative provided for by 

that subsection, any head of a Federal agency is required, on the 


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request of the Secretary of the Interior, to provide data and information that the Secretary determines is necessary to the mapping 

initiative, except the agency head is not required to provide privileged or confidential information. 

Section 9. Safer Oil and Gas Production 

Section 9(a)(1) amends section 999A(a) of the Energy Policy Act 

of 2005 (42 U.S.C. 16371(a)) to broaden the focus of the research 

and development program from ‘‘ultra-deepwater’’ (defined in section 999G(8) of the Energy Policy Act of 2005 (42 U.S.C. 16377(8)) 

as 1,500 meters or greater) to ‘‘deepwater’’ (redefined by section 

9(e)(1) as 500 feet or greater). Paragraph (1) also adds research, development, demonstration, and commercial application of technologies for deepwater well control and accident prevention to the 

program’s mission. Paragraph (2) makes changes in two of the program elements in section 999A(b) to reflect the program’s new 

focus. Paragraphs (2)(B) and (3) changes references to the National 

Energy Technology Laboratory in subsections (b)(4) and (d) of section 999A of the Energy Policy Act of 2005 to the Office of Fossil 

Energy. 

Section 9(b) amends section 999B of the Energy Policy Act of 

2005 (42 U.S.C. 16372) to refocus the program on developing improved safety and blowout prevention technologies and best practices associated with the drilling of deepwater oil and gas wells. 

Paragraph (3) requires the program consortium to select research 

and development projects on a competitive, peer-reviewed basis. 

Paragraph (4)(D) requires the Secretary of Energy to commission 

the National Academy of Sciences to review the research program 

and its projects to determine the programs effectiveness. Paragraph 

(5)(B) requires the Secretary of Energy, in consultation with the 

Secretary of the Interior and the Administrator of the Environmental Protection Agency, to annually report on the research findings of the program and any recommendations. 

Section 9(c) amends section 999C(b) of the Energy Policy Act of 

2005 (42 U.S.C. 16373(b)) to change a reference to ‘‘ultra-deepwater 

technology or . . . architecture’’ to ‘‘deepwater technology.’’ 

Section 9(d) amends section 999D of the Energy Policy Act of 

2005 (42 U.S.C. 16374) to eliminate the Ultra-Deepwater Advisory 

Committee and establish in its place a Program Advisory Committee to advise the Secretary on the development and implementation of the deepwater research and development program. 

Section 9(e) amends section 999G of the Energy Policy Act of 

2005 (42 U.S.C. 16375) by amending the definition of deep-water 

in paragraph (1) from 200 to 1,500 meters to any water depth 

greater than 500 feet deep, striking definitions relating to ultradeepwater, adding new definitions for ‘‘deepwater architecture’’ and 

‘‘deepwater technology,’’ and by renumbering the remaining definitions. 

Section 9(f) amends section 999H of the Energy Policy Act of 

2005 (42 U.S.C. 16378) to change the name of the Ultra-Deepwater 

and Unconventional Natural Gas and Other Petroleum Research 

Fund to the Safe and Responsible Energy Production Research 

Fund, to modify how the Fund is allocated among program elements, as those program elements are modified by section 9(a), and 

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mental and safety research required by sections 20 and 21 of the 

OCSLA (43 U.S.C. 1346 and 1347), as amended by sections 9(g) 

and 9(h). 

Section 9(g) amends the subtitle heading to reflect the program’s 

new focus. 

Section 10. National Commission on Outer Continental Shelf Oil 

Spill Prevention 

Section 10(a) establishes in the Legislative branch the National 

Commission on Outer Continental Shelf Oil Spill Prevention. 

Section 10(b) sets forth the purposes of the Commission and is 

self-explanatory. 

Section 10(c) requires that the Commission be composed of 10 

members and sets forth who shall appoint each member. Subsection (c) sets forth qualification for commission members and is 

self-explanatory. Subsection (c) provides that all members of the 

Commission shall be appointed on or before September 15, 2010, 

and requires that the initial Commission meeting be as soon as 

practicable. Subsection (c) further addresses quorum requirements 

and vacancies. 

Section 10(d) sets forth the functions of the Commission, including: conducting an investigation relating to the facts and circumstances of the Deepwater Horizon incident of April 20, 2010 

and the associated oil spill thereafter; identifying, reviewing, and 

evaluating the lessons learned from the Deepwater Horizon incident regarding structure, coordination, management policies and 

procedures of the Federal Government and if appropriate, State 

and local governments, non-governmental entities, and the private 

sector; and submit to the President and the Congress reports as are 

required by the section containing such findings, conclusions, and 

recommendations as the Commission finds appropriate. Section 

10(d) sets forth the relationship of the Commission to the inquiry 

by congressional committees and is self-explanatory. 

Section 10(e) describes the powers of the Commission with respect to: hearings and evidence; the issuance and enforcement of 

subpoenas; contracting; securing and handling information from 

Federal agencies; obtaining assistance from Federal agencies; gifts; 

and postal services. 

Section 10(f) requires the Commission to hold public hearings 

and meetings, to the extent appropriate and to release public 

versions of the Commission’s interim and final reports required 

under paragraphs (1) and (2) of subsection (j). Public meetings are 

required to be conducted in a manner consistent with the protection of proprietary or sensitive information. 

Section 10(g) addresses the appointment and compensation of 

Commission staff, the treatment of Commission staff as Federal 

employees, and employees detailed to the Commission. 

Section 10(h) addresses compensation and travel expenses for 

Commission members and is self-explanatory. 

Section 10(i) sets forth requirements relating to security clearances for Commission members and staff and is self-explanatory. 

Section 10(j) addresses the reports of the Commission and requirements relating to adjournment of the Commission and is selfexplanatory. Section 10(j)((3)(C) provides that after adjourning 

upon completion of the final report on the Deepwater Horizon inciVerDate Mar 15 2010 04:38 Jul 30, 2010 Jkt 089010 PO 00000 Frm 00029 Fmt 6659 Sfmt 6602 E:\HR\OC\SR236.XXX SR236

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dent, the Commission is to reconvene at such time as the President 

or the Secretary of Homeland Security declares an oil spill of national significance to have occurred. 

Section 10(k) authorizes appropriations of $10,000,000 for the 

first fiscal year in which the Commission convenes and $3,000,000 

for each fiscal year thereafter in which the Commission convenes. 

Section 10(l) provides that the Federal Advisory Committee Act 

shall not apply to the Commission. 

Section 11. Classification of Offshore Systems 

Section 11(a) requires that not later than 2 years after the date 

of enactment, the Secretary and the Secretary of the department 

in which the Coast Guard is operating shall jointly issue regulations requiring systems used in the offshore exploration, development and production of oil and gas in the OCS to be constructed, 

maintained, and operated so as to meet classification, certification, 

rating, and inspection standards that are necessary to protect the 

health and safety of workers and prevent environmental degradation. The standards established by the regulations are to be 

verified through certification and classification by independent 

third parties that have been preapproved by the Secretaries and 

have no financial conflict of interest. Section 11(a) further describes 

the minimum systems covered. The Secretaries may waive the 

standards for an existing system only if the system is of an age or 

type where meeting such requirements is impractical and the system poses an acceptably low level of risk to the environment and 

human safety. 

Section 11(b) provides that nothing in section 11 preempts or 

interferes with the authority of the Coast Guard. 

Section 12. Savings Provisions 

Section 12(a) provides that all regulations, rules, standards, determinations, contracts and agreements, memoranda of understanding, certifications, or any other actions issued, made or taken 

by or pursuant to the authority of any law that resulted in the assignment of functions to the Secretary, the Director of the Minerals 

Management Service or the Department, that were in effect on the 

date of enactment of this Act, remain in full force and effect after 

the date of enactment of this Act unless previously scheduled to expire or until otherwise modified or rescinded by this Act or any 

other Act. 

Section 12(b) provides that this Act does not amend or alter the 

provisions of other applicable laws, unless otherwise noted. 

Section 13. Budgetary Effects 

Section 13 addresses the determination of budgetary effects of 

the legislation. 

COST AND BUDGETARY CONSIDERATIONS

The Congressional Budget Office estimate of the costs of this 

measure has been requested but was not received at the time the 

report was filed. When the cost estimate is available it will be posted on the Congressional Budget Office’s website www.cbo.gov. 


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REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 3516. 

The bill strengthens the safety, environmental, and financial regulation of companies exploring for, developing, and producing federal oil and natural gas resources on the Outer Continental Shelf, 

and is expected to impose some additional regulatory burdens on 

such companies. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Additional paperwork would result from the enactment of S. 

3516, as ordered reported, due to increased requirements for safety 

and environmental regulatory compliance, application, planning, 

review, and documentation. 

CONGRESSIONALLY DIRECTED SPENDING

S. 3516, as ordered reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff 

benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The views of the Administration on S. 3516 are included in the 

testimony of the Secretary of the Interior received by the Committee at its June 24, 2010, hearing, which is set forth below: 

STATEMENT OF KEN SALAZAR, SECRETARY OF THE INTERIOR, 

JUNE 24, 2010 

Chairman Bingaman, Ranking Member Murkowski, and 

Members of the Committee, I want to thank you for holding this hearing today as we continue to address the issues 

and challenges associated with the continuing reform of 

the Department of the Interior’s offshore energy program. 

Before we begin, I want to introduce Michael R. 

Bromwich, the new Director of the Bureau of Ocean Energy Management, Regulation, and Enforcement. His impressive background includes time as the Inspector General of the U.S. Department of Justice, as an Assistant 

U.S. Attorney, and since 1999, as an attorney in private 

practice. His extensive experience in government and the 

private sector in improving the way organizations work 

make him an ideal choice to lead the restructuring and reform of the Department’s offshore energy program. 

For the same reasons I chose Michael Bromwich for this 

position, I chose Wilma Lewis who oversees the Department’s energy bureaus as the Assistant Secretary for Land 

and Minerals Management. A former U.S. Attorney for the 

District of Columbia and Inspector General at the Department, Wilma has played a central leadership role in some 

of the most significant reforms during my tenure as Secretary. She has helped shape reforms ranging from our 


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new approach to offshore oil and gas leasing and a new 

emphasis on renewable energy development on the Outer 

Continental Shelf, to ethics reform, to the enhancement of 

leasing programs and the development of renewable energy programs onshore, to support for our study of policies 

designed to ensure fair return to American taxpayers for 

the development of public oil and gas resources. I have 

also appointed her to chair the Safety Oversight Board in 

the aftermath of the Deepwater Horizon oil spill, and to 

help spearhead the reorganization of MMS toward a new 

future. 

OFFSHORE ENERGY REFORMS COMPLETED

Although this unprecedented disaster, which resulted in 

the tragic loss of life and many injuries, is commanding 

our time and resources, it has also strengthened our resolve to continue reforming the OCS program. 

The reforms we have embarked on over the last 17 

months, and upon which we will continue to build, are 

substantive and systematic, not cosmetic. The kind of fundamental changes we are making do not come easily and 

many of the changes we have already made have raised 

the ire of industry. Our efforts at reform have been characterized by some as impediments and roadblocks to the development of domestic oil and gas resources. We believe, 

however, that they are crucial to ensuring that we carry 

out our responsibilities effectively, without compromise, 

and in a manner that facilitates the balanced, responsible, 

and sustainable development of the resources entrusted to 

us. 

To review the reforms we have undertaken: 

First, we focused our efforts on ethics and other concerns 

that had been raised in the revenue collection side of the 

MMS. We began changing the way the bureau does business and took concrete action to: 

• upgrade and strengthen ethics standards throughout MMS and for all political and career employees; 

• terminate the Royalty-in-Kind program to reduce 

the likelihood of fraud or collusion with industry in 

connection with the collection of royalties; and 

• aggressively pursue continued implementation of 

the recommendations to improve the royalty collection 

program that came from the Department’s Inspector 

General, the Government Accountability Office, and a 

committee chaired by former Senators Bob Kerrey and 

Jake Gam. 

Second, we started reforms of the offshore oil and gas 

regulatory program, which included actions to: 

• initiate in Fall 2009 an independent study by an 

arm of the National Academy of Engineering to examine how we could upgrade our inspection program for 

offshore rigs; 

• procure substantial increases in the MMS budget 

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crease in the number of inspectors for offshore facilities; and • develop a new approach to on-going oil and gas activities on the OCS aimed at promoting the responsible, environmentally sound, and scientifically 

grounded development of oil and gas resources on the 

Outer Continental Shelf. 

In that effort, we cancelled the upcoming Beaufort and 

Chukchi lease sales, removed Bristol Bay altogether from 

leasing under the current 5 year plan, and removed the 

Pacific Coast and the Northeast entirely from any drilling 

under a new 5 year plan. We made clear that we will require full environmental analysis through an Environmental Impact Statement prior to any decision to lease in 

any additional areas, such as the mid and south Atlantic, 

and launched a scientific evaluation, led by the Director of 

USGS, to analyze issues associated with drilling in the 

Arctic. 

Third, we laid the groundwork for expanding the mission of MMS beyond conventional oil and gas by devoting 

significant attention and infusing new resources into the 

renewable energy program, thereby providing for a more 

balanced energy portfolio that reflects the President’s priorities for clean energy. Toward that end, we took action 

to: 

• finalize long-stalled regulations that define a permitting process for off-shore wind—cutting through jurisdictional disputes with FERC in the process and ultimately approving the Cape Wind project; 

• announce the establishment of a regional renewable energy office, located in Virginia, which will coordinate and expedite, as appropriate, the development of wind, solar, and other renewable energy resources on the Atlantic Outer Continental Shelf; and • commence discussions and enter into an MOU 

with governors of East Coast states, which formally 

established an Atlantic Offshore Wind Energy Consortium to promote the efficient, orderly, and responsible 

development of wind resources on the Outer Continental Shelf through increased Federal-State cooperation. 

OFFSHORE ENERGY REFORMS AND RELATED ACTIVITIES

UNDERWAY

Since the Deepwater Horizon explosion and oil spill, the 

reforms and associated efforts have continued with urgency, with particular focus on issues raised by, and lessons being learned from, the circumstances surrounding 

the event. We are aggressively pursuing actions on multiple fronts, including: 

• inspecting all deepwater oil and gas drilling operations in the Gulf of Mexico and issuance of a safety 

notice to all rig operators; 

• implementing the 30 day safety report to the 

President, including issuing notices to lessees on new 


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safety requirements, and developing new rules for 

safety and environmental protection; defending the 

moratorium on new deepwater drilling, which is currently the subject of litigation; and • implementing new requirements that operators 

submit information regarding blowout scenarios in 

their exploration plans—reversing a long standing exemption that resulted from too much reliance on industry to self-regulate. 

Additional reforms will be influenced by several ongoing 

investigations and reviews, including the Deepwater Horizon Joint Investigation currently underway by the Bureau 

of Ocean Energy Management, Regulation and Enforcement, and the United States Coast Guard. In addition, at 

my request, a separate investigation is being undertaken 

by the National Academy of Engineering to conduct an 

independent, science-based analysis of the root causes of 

the oil spill. I also requested that the Inspector General’s 

Office undertake an investigation to determine whether 

there was a failure of MMS personnel to adequately enforce standards or inspect the Deepwater Horizon. 

Further, on April 30th I announced the formation of the 

Outer Continental Shelf Safety Oversight Board to identify, evaluate and implement new safety requirements. The 

Board, which consists of Assistant Secretary for Land and 

Minerals Management Wilma A. Lewis, who serves as 

Chair, Assistant Secretary for Policy, Management and 

Budget Rhea Suh, and Acting Inspector General Mary 

Kendall, will develop recommendations designed to 

strengthen safety, and improve overall management, regulation, and oversight of operations on the Outer Continental Shelf. 

Finally, the President established the independent bipartisan National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling tasked with providing 

options on how we can prevent and mitigate the impact of 

any future spills that result from offshore drilling. The 

Commission will be focused on the environmental and 

safety precautions we must build into our regulatory 

framework in order to ensure an accident like this never 

happens again, taking into account the other investigations concerning the causes of the spill. 

SUPPLEMENTAL LEGISLATION

The Administration will make sure that BP and other 

responsible parties are held accountable, that they will pay 

the costs of the government in responding to the spill, and 

compensation for loss or damages that arise from the spill. 

We will do everything in our power to make our affected 

communities whole. As a part of the response efforts, we 

expect to spend a total of $27 million through June 30, 

2010 for Interior’s response activities. 

As part of our reforms, we are also building on the efforts we undertook in the last sixteen months to strengthen the OCS budget. As I already mentioned, the 2011 


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budget includes a ten percent increase in the number of inspectors. Our restructuring of the OCS program will require additional resources to aggressively pursue the reforms I outlined earlier, to implement the 30 day report to 

the President, and to potentially address the results of ongoing investigations and the President’s Commission. We 

are currently hiring an additional twelve inspectors, six 

more than we proposed in the 2011 budget, and we are 

taking other actions that are outlined in the 30 day report 

to the President. Over the course of the next several years, 

our restructuring of a more robust OCS regulatory and enforcement program will dictate the need for engineering, 

technical, and other specialized staff. 

The President’s supplemental request of May 12, 2010 includes $29 million that will fund the near term resources 

we need for these activities. I appreciate the Senate’s 

prompt action in passing the supplemental on May 27. As 

you know, it is critically needed to support our full and relentless reforms—to bolster inspections of offshore oil and 

gas platforms, draft enforcement and safety regulations, 

and carry out environmental and engineering studies. The 

President’s request included a proposal to extend the time 

allowed by statute for review and approve of oil and gas 

exploration plans from 30 to 90 days—this is also needed 

and I hope Congress will include it in the final version of 

the supplemental. 

REORGANIZATION OF THE MINERALS MANAGEMENT SERVICE

On June 15, I appointed Michael R. Bromwich as the Director of the Bureau of Ocean Energy Management, Regulation and Enforcement. Michael will lead us through the 

reorganization—the foundation for the reforms we have 

underway. He will lead the changes in how the agency 

does business, implement the reforms that will raise the 

bar for safe and environmentally sound offshore oil and 

gas operations, and help our Nation transition to a clean 

energy future. 

Michael will join the team that has been working out the 

details of the reorganization. In a May 19 Secretarial 

Order I tasked Rhea Suh, the Assistant Secretary for Policy, Management and Budget, Wilma Lewis, the Assistant 

Secretary for Land and Minerals Management, and Chris 

Henderson, one of my senior advisors, to develop a reorganization plan in consultation with others within the Administration and with Congress. The report will provide 

the plan to restructure the Bureau of Ocean Energy Management, Regulation and Enforcement in order to responsibly address sustained development of the Outer Continental Shelf’s conventional and renewable energy resources, including resource evaluation, planning, and other 

activities related to leasing; comprehensive oversight, safety, and environmental protection in all offshore energy activities; and royalty and revenue management including 

the collection and distribution of revenue, auditing and 

compliance, and asset management. 


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The Deepwater Horizon tragedy and the massive spill 

have made the importance and urgency of a reorganization 

of this nature ever more clear, particularly the creation of 

a separate and independent safety and environmental enforcement entity. We will responsibly and thoughtfully 

move to establish independence and separation for this 

critical mission so that the American people know they 

have a strong and independent organization ensuring that 

energy companies comply with their safety and environmental protection obligations. 

The restructuring will also address any concerns about 

the incentives related to revenue collections. The OCS currently provides nearly 30 percent of the Nation’s domestic 

oil production and almost 11 percent of its domestic natural gas production and is one of the largest sources of 

non-tax and non-trust revenue for the Treasury. The MMS 

collected an average of more than $13 billion annually for 

the past 5 years. There will be clear separation between 

the entities that collect and manage revenue and those 

that are responsible for the management of the OCS exploration and leasing activities. 

SUSTAINED RESPONSE EFFORTS IN THE GULF

Of utmost importance to us is the oil spill containment 

and clean up of the Gulf. I have returned to the Gulf Region numerous times to witness the work Departmental 

staff and volunteers are carrying out to protect the coasts, 

wetlands, and wildlife threatened by this spill. We have 

deployed approximately 1,000 employees to the Gulf and 

they are directing actions to contain the spill; cleaning up 

affected coastal and marine areas under our jurisdiction; 

and assisting Gulf Coast residents with information related to the claims process, health and safety information, 

volunteer opportunities, and general information on the efforts being carried out in the region. 

Under the direction of National Incident Commander 

Admiral Thad Allen, the Flow Rate Technical Group, 

which is led by U.S. Geological Survey Director Dr. Marcia 

McNutt, and a scientific team led by Energy Secretary Steven Chu recently announced an improved estimate of how 

much oil is flowing from the leaking well. That estimate, 

suggests that the flow rate is at least 35,000 barrels per 

day, based on the improved quality and quantity of data 

that are now available. 

The Department’s senior staff continues to offer coordination and guidance to the effort. Deputy Secretary David 

J. Hayes is devoting his time to coordinating the many 

Gulf-related response activities we are undertaking. Assistant Secretary for Fish, Wildlife and Parks Tom Strickland has been leading the Department’s efforts for onshore 

and near shore protection. National Park Service Director 

Jon Jarvis and Acting Director of the Fish and Wildlife 

Service Rowan Gould continue to supervise incident management personnel and activities that their bureaus are 

taking to respond to the spill and clean up oil impacts. To 


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protect the eight national parks and 36 wildlife refuges 

and the numerous wildlife, birds, and historic structures 

they are responsible for in the Gulf of Mexico, the NPS 

and FWS dispatched approximately 590 employees. 

Representatives from the FWS also participated with the 

U.S. Coast Guard, the Environmental Protection Agency, 

and state and local governments in a series of public meetings with local residents to answer questions and offer information on a variety of topics related to the spill and response activities. 

Finally, there are many, many people in the Department 

who are devoting significant time and energy to this event; 

to the various investigations and inquiries, both within the 

Administration and in Congress, that are being carried 

out; and to the ongoing reorganization and reform. I want 

to acknowledge their work and let them know their efforts 

are appreciated and are not going unnoticed. 

In the last 60 days we have also seen what the employees in the Bureau of Ocean Energy Management, Regulation and Enforcement are capable of, their professionalism, 

their dedication to the Department, and their enthusiasm 

for the reforms underway. With Michael’s help we will be 

able to cast aside the shadow on the many dedicated employees that has been left by an errant few, and by previous policies that have prioritized production over ethics, 

safety, and environmental protection. 

LEGISLATIVE EFFORTS AT REFORM

All four of the bills before you today address reform of 

the Department’s offshore energy and mineral resource development program. I would like to provide you some general comments on each of these bills and a few provisions 

in particular. 

Your legislation, Mr. Chairman, S. 3516, the ‘‘Outer 

Continental Shelf Reform Act,’’ would provide general organic authority for the restructuring of the offshore energy 

and minerals program in the Department and would make 

additional changes reforming some of the underlying laws 

governing management of these resources. 

I have previously testified in support of organic legislation for the functions performed by MMS, noting that an 

organization with such important responsibilities should 

be governed by a thoughtfully considered organic act. It is 

important for organic legislation to provide the Secretary 

with the discretion to implement the details of a reorganization as complicated as this. 

The provisions in S. 3516 authorizing the creation of the 

three new entities are consistent with the changes I have 

directed in my Secretarial Order. The report and schedule 

for implementation that I will receive on July 9 will provide a detailed roadmap for this reorganization and will 

greatly inform the process. The Administration would like 

to continue discussion with the Committee regarding the 

specifics in this legislation of the appointment and confirmation of the new bureau and office directors. 


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A number of the changes contained in this bill highlight 

the need for increased safety of operations and consideration of the marine and coastal environment, including the 

need for integrated programs for both environmental research and technological research and development. In this 

same vein, S. 3509, the ‘‘Safer Oil and Gas Production Research and Development Act’’, would amend certain research and development provisions contained in the Energy Policy Act of 2005 to provide an additional focus on 

research and development on safety and reduced environmental impacts from development of these resources. 

A focus on strengthened safety and oversight and the environmental impacts of offshore oil and gas operations are 

priorities of the Administration. These issues, and several 

others in the bills before you today, will require the Department to work closely with the Committee and other 

relevant federal agencies to ensure a coordinated approach 

to attaining these important objectives. 

S. 3516 also includes new planning requirements, including a requirement for detailed descriptions of equipment and plans to address potential well blowouts. S. 

3497, the ‘‘Oil Spill Prevention and Mitigation Improvement Act,’’ includes a similar focus, amending the Outer 

Continental Shelf Lands Act to require that leases entered 

into under that Act include a plan for containment and 

termination of discharges of oil, and a timeline for accomplishing those actions. 

Recognizing the importance of this information, on June 

18, 2010, the Department issued a Notice to Lessees (NTL) 

requiring that new filings for drilling permits, exploration 

plans, or development plans to contain information specifically addressing the possibility of a blowout and the detailed steps that lessees or operators would take to prevent 

blowouts. This reverses a 2003 policy and a 2008 NTL that 

exempted many offshore oiland gas operations in the Gulf 

from submitting certain information about such a scenario 

and is consistent with the requirements contained in these 

bills. 

S. 3516 would also extend the deadline for the Department to review and approve exploration plans; require that 

lessees obtain a drilling permit after approval of an exploration plan; and require that, prior to approval of such a 

permit, an engineering review of the well system be completed and reviewed. The Administration supports authority to provide for longer review time and for stronger reviews of exploration plans prior to drilling. We would like 

to work with the Committee on this important issue. 

We are also supportive of the changes in S. 3516 intended to strengthen civil and criminal penalties contained 

in the OCSLA. These provisions are generally consistent 

with the support for increasing these penalties that Deputy Secretary Hayes expressed before this Committee on 

May 25th. 

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fill positions in these new entities. We look forward to continuing the dialog on this issue, as well. 

STRENGTHENING THE WAY WE DO BUSINESS

Over the past several weeks I have talked about the 

many ways we have changed the direction of the MMS, 

both programmatically and structurally. S. 3431 would 

change laws governing ethical standards and fraudulent 

statements by MMS employees. 

I have already mentioned the actions in this regard that 

I ordered last year. I am also pleased to have two former 

Inspectors General, in Michael Bromwich and Wilma 

Lewis, to help lead our reform efforts. But my interest in 

strengthened ethics standards isn’t limited to employees of 

the MMS. President Obama made it clear from the earliest 

days of this Administration that ethical behavior, among 

both political and career employees, was to be held to a 

premium standard. On January 26, 2009, I issued a memorandum to all employees regarding the high ethical standards with which we were all expected to carry out our duties. I also directed the Department’s Ethics Office to review Department-specific regulations and recommend 

areas where improvements could be made. On August 19, 

2009, I issued a Secretarial Order laying out additional 

clarifications to enhance and promote a stronger ethical 

culture at the Department. 

S. 3431 would codify portions of the new standards made 

applicable to MMS employees in January 2009. The Department’s Ethics Office is currently preparing updates to 

statutory language, including updates to provisions applicable to Departmental offices and to lands and energy and 

mineral development programs. I look forward to working 

with you and the sponsor as we move to modernize these 

important obligations. 

CONCLUSION

Much of my time as Secretary of the Interior has been 

spent working to promote reform of prior practices in the 

Minerals Management Service and to advance the President’s vision of a new energy future that will help us to 

move away from spending hundreds of billions of dollars 

each year on imported oil. A balanced program of safe and 

environmentally responsible offshore energy development 

is a necessary part of that future. We are also involved in 

a multi-agency process to develop a new national ocean 

policy that is intended to look ahead in the long term to 

help the United States think comprehensively about how 

we make better informed management decisions regarding 

the use and conservation of ocean, coastal, and Great 

Lakes resources. 

As we evaluate new areas for potential exploration and 

development on the OCS, we will conduct thorough environmental analysis and scientific study, gather public 

input and comment, and carefully examine the potential 

safety and spill risk considerations. The findings of the 


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Joint Investigation and the independent National Academy 

of Engineering will provide us with the facts and help us 

understand what happened on the Deepwater Horizon. 

Those findings, the work of the Outer Continental Shelf 

Safety Oversight Board, the OIG investigation and review, 

and the findings of the Presidential Commission will help 

inform the implementation of the Administration’s comprehensive energy strategy for the OCS. 

We are taking responsible action to address the safety of 

other offshore oil and gas operations, further tightening 

our oversight of industry’s practices through a package of 

reforms, and taking a careful look at the questions this 

disaster is raising. We will also work with you on legislative reforms and the finalization of a reorganization that 

will ensure that the OCS program is effectively managed 

to achieve these goals. 

Lastly, let me assure you this Administration will continue its relentless response to the Deepwater Horizon 

tragedy. Our team is committed to help the people and 

communities of the Gulf Coast region persevere through 

this disaster, to protect our important places and resources, and to take actions based on the valuable lessons 

that will help prevent similar spills in the future. 


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CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill H.R. 

2741, as ordered 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): 

TABLE OF EXISTING LAWS PROPOSED TO BE 

CHANGED 

1. Outer Continental Shelf Lands Act, Act of August 7, 1953, as 

amended 

2. Title 5, United States Code 

3. Energy Policy Act of 2005, Public Law 109–58, as amended 

OUTER CONTINENTAL SHELF LANDS ACT 

ACT OF AUGUST 7, 1953, AS AMENDED 

AN ACT To provide for the jurisdiction of the United States over the submerged 

lands of the outer Continental Shelf, and to authorize the Secretary of the Interior 

to lease such lands for certain purposes 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, That this Act may 

be cited as the ‘‘Outer Continental Shelf Lands Act.’’ 

SEC. 2. DEFINITIONS.—When used in this Act— 

(a) The term ‘‘outer Continental Shelf’’ means all submerged 

lands lying seaward and outside of the area of lands beneath navigable waters as defined in section 2 of the Submerged Lands Act 

(Public Law 31, Eighty-third Congress, first session), and of which 

the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control; 

* * * * * * * 

(r) SAFETY CASE.—The term ‘‘safety case’’ means a complete set of 

safety documentation that provides a basis for determining whether 

a system is adequately safe for a given application in a given environment. 

SEC. 3. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.— 

It is hereby declared to be the policy of the United States that— 

(1) the subsoil and seabed of the outer Continental Shelf appertain to the United States and are subject to its jurisdiction, 

control, and power of disposition as provided in this Act; 

* * * * * * * 

ø(3) the outer Continental Shelf is a vital national resource 

reserve held by the Federal Government for the public, which 


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should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner which 

is consistent with the maintenance 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, which 

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) such States and their affected local governments may 

require assistance in protecting their coastal zones and 

other affected areas from any temporary or permanent adverse effects of such impacts; 

(B) the distribution of a portion of the receipts from the 

leasing of mineral resources of the outer Continental Shelf 

adjacent to State lands, as provided under section 1337(g) 

of this title, will provide affected coastal States and localities with funds which may be used for the mitigation of 

adverse economic and environmental effects related to the 

development of such resources; and 

(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 Shelfø.¿; 

(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 considered and 

recognizedø; 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 

provides reasonable assurance of adequate protection against 

harm to life, health, the environment, property, or other users 

of the waters, seabed, or subsoil; and 

ø(6)¿ (7) operations in the outer Continental Shelf øshould 

be¿ shall be conducted in a safe manner by well-trained perVerDate Mar 15 2010 04:38 Jul 30, 2010 Jkt 089010 PO 00000 Frm 00042 Fmt 6604 Sfmt 6602 E:\HR\OC\SR236.XXX SR236

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sonnel using best available technology, precautions, and techniques sufficient to prevent or minimize the likelihood of blowouts, loss of well control, fires, spillages, 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. 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. øThe 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, 

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. 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— 

* * * * * * * 

SEC. 6. MAINTENANCE OF LEASES ON OUTER CONTINENTAL

SHELF.—(a) The provisions of this section shall apply to any mineral lease covering submerged lands of the outer Continental Shelf 

issued by any State (including any extension, renewal, or replacement thereof heretofore granted pursuant to such lease or under 

the laws of such State) if— 

(1) such lease, or a true copy thereof, is filed with the Secretary by the lessee or his duly authorized agent within ninety 

days from the effective date of this Act, or within such further 

period or periods as provided in section 7 hereof or as may be 

fixed from time to time by the Secretary; 

* * * * * * * 

(e) In the event any lease maintained under this section covers 

lands beneath navigable waters, as that term is used in the Submerged Lands Act, as well as lands of the outer Continental Shelf, 

the provisions of this section shall apply to such lease only insofar 

as it covers lands of the outer Continental Shelf. 

(f) REVIEW OF BOND AND SURETY AMOUNTS.—Not later than May 

1, 2011, and every 5 years thereafter, the Secretary shall— 


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(1) review the minimum financial responsibility requirements 

for mineral leases under subsection (a)(11); and 

(2) adjust for inflation based on the Consumer Price Index for 

all Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, and recommend to Congress 

any further changes to existing financial responsibility requirements necessary to permit lessees to fulfill all obligations under 

this Act or the Oil Pollution Act of 1990 (33 U.S.C. 2701 et 

seq.). 

(g) PERIODIC FISCAL REVIEWS AND REPORTS.— 

(1) ROYALTY RATES.— 

(A) IN GENERAL.—Not later than 1 year after the date of 

enactment of this subsection and every 4 years thereafter, 

the Secretary shall carry out a review of, and prepare a report that describes— 

(i) the royalty and rental rates included in new offshore oil and gas leases and the rationale for the rates; 

(ii) whether, in the view of the Secretary, the royalty 

and rental rates described in subparagraph (A) would 

yield a fair return to the public while promoting the 

production of oil and gas resources in a timely manner; 

and 

(iii) whether, based on the review, the Secretary intends to modify the royalty or rental rates. 

(B) PUBLIC PARTICIPATION.—In carrying out a review and 

preparing a report under subparagraph (A), the Secretary 

shall provide to the public an opportunity to participate. 

(2) COMPARATIVE REVIEW OF FISCAL SYSTEM.— 

(A) IN GENERAL.—Not later than 1 year after the date of 

enactment of this subsection and every 4 years thereafter, 

the Secretary in consultation with the Secretary of the 

Treasury, shall carry out a comprehensive review of all 

components of the Federal offshore oil and gas fiscal system, including requirements for bonus bids, rental rates, 

royalties, oil and gas taxes, income taxes and other significant financial elements, and oil and gas fees. 

(B) INCLUSIONS.—The review shall include— 

(i) information and analyses comparing the offshore 

bonus bids, rents, royalties, taxes, and fees of the Federal Government to the offshore bonus bids, rents, royalties, taxes, and fees 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. 

(C) INDEPENDENT ADVISORY COMMITTEE.—In carrying out 

a review under this paragraph, 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. 

(D) REPORT.—The Secretary shall prepare a report that 

contains— 


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(i) the contents and results of the review carried out 

under this paragraph for the period covered by the report; and 

(ii) any recommendations of the Secretary and the 

Secretary of the Treasury based on the contents and results of the review. 

(E) COMBINED REPORT.—The Secretary may combine the 

reports required by paragraphs (1) and (2)(D) into 1 report. 

(3) REPORT DEADLINE.—Not later than 30 days after the date 

on which the Secretary completes each report under this subsection, the Secretary shall submit copies of the report to— 

(A) the Committee on Energy and Natural Resources of 

the Senate; 

(B) the Committee on Finance of the Senate; 

(C) the Committee on Natural Resources of the House of 

Representatives; and 

(D) the Committee on Ways and Means of the House of 

Representatives. 

* * * * * * * 

SEC. 8. LEASES, EASEMENTS, AND RIGHTS-OF-WAY ON THE OUTER

CONTINENTAL SHELF.—(a)(1) The Secretary is authorized to grant 

to the highest responsible qualified bidder or bidders by competitive bidding, under regulations promulgated in advance, any oil 

and gas lease on submerged lands of the outer Continental Shelf 

which are not covered by leases meeting the requirements of subsection (a) of section 6 of this Act. Such regulations may provide 

for the deposit of cash bids in an interest-bearing account until the 

Secretary announces his decision on whether to accept the bids, 

with the interest earned thereon to be paid to the Treasury as to 

bids that are accepted and to the unsuccessful bidders as to bids 

that are rejected. The bidding shall be by sealed bid and, at the 

discretion of the Secretary, on the basis of— 

* * * * * * * 

ø(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) DISQUALIFICATION FROM BIDDING.—No bid for a lease may be 

submitted by any entity that the Secretary finds, after prior public 

notice and opportunity for a hearing— 

(1) is not meeting due diligence, safety, or environmental requirements on other leases; or 

(2)(A) 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); and 

(B) has failed to meet the obligations of the responsible party 

under that Act to provide compensation for covered removal 

costs and damages. 

(e) No lease issued under this Act may be sold, exchanged, assigned, or otherwise transferred except with the approval of the 

Secretary. Prior to any such approval, the Secretary shall consult 


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with and give due consideration to the views of the Attorney General. 

* * * * * * * 

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 aquatic life 

in such area. 

* * * * * * * 

(c)(1) 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 

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, øwithin thirty days of its submission¿ by the deadline described in paragraph (5), 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. 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. 

(2) The Secretary shall not grant any license or permit for any 

activity described in detail in an exploration plan and affecting 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), unless the 

State concurs or is conclusively presumed to concur with the consistency certification accompanying such plan pursuant to section 

307(c)(3)(B) (i) or (ii) of such Act, or the Secretary of Commerce 

makes the finding authorized by section 307(c)(3)(B)(iii) of such 

Act. 

ø(3) An exploration plan submitted under this subsection shall 

include, in the degree of detail which the Secretary may by regulation require— 

ø(A) a schedule of anticipated exploration activities to be undertaken; 

ø(B) a description of equipment to be used for such activities; 

ø(C) the general location of each well to be drilled; and 

ø(D) such other information deemed pertinent by the Secretary.¿ 


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(3) MINIMUM REQUIREMENTS.— (A) IN GENERAL.—An exploration plan submitted under this 

subsection shall include, in such degree of detail as the Secretary by regulation may require— 

(i) a complete description and schedule of the exploration 

activities to be undertaken; 

(ii) a description of the equipment to be used for the exploration activities, including— 

(I) a description of the drilling unit; 

(II) a statement of the design and condition of major 

safety-related pieces of equipment; 

(III) a description of any new technology to be used; 

and 

(IV) a statement demonstrating that the equipment to 

be used meets the best available technology requirements under section 21(b); 

(iii) a map showing the location of each well to be drilled; 

(iv)(I) a scenario for the potential blowout of the well involving the highest expected volume of liquid hydrocarbons; 

and 

(II) a complete description of a response plan to control 

the blowout and manage the accompanying discharge of 

hydrocarbons, including— 

(aa) the technology and timeline for regaining control 

of the well; and 

(bb) the strategy, organization, and resources to be 

used to avoid harm to the environment and human 

health from hydrocarbons; and 

(v) any other information determined to be relevant by 

the Secretary. 

(B) DEEPWATER WELLS.— (i) IN GENERAL.—Before conducting exploration activities 

in water depths greater than 500 feet, the holder of a lease 

shall submit to the Secretary for approval a deepwater operations plan prepared by the lessee in accordance with this 

subparagraph. 

(ii) TECHNOLOGY REQUIREMENTS.—A deepwater operations plan under this subparagraph shall be based on the 

best available technology to ensure safety in carrying out 

the exploration activity and the blowout response plan. 

(iii) SYSTEMS ANALYSIS REQUIRED.—The Secretary shall 

not approve a deepwater operations plan under this subparagraph unless the plan includes a technical systems 

analysis of— 

(I) the safety of the proposed exploration activity; 

(II) the blowout prevention technology; and 

(III) the blowout and spill response plans. 

(4) The Secretary may, by regulation, require that such plan be 

accompanied by a general statement of development and production 

intentions which shall be for planning purposes only and which 

shall not be binding on any party. 

(5) DEADLINE FOR APPROVAL.— (A) IN GENERAL.—In the case of a lease issued under a sale 

held after March 17, 2010, the deadline for approval of an exVerDate Mar 15 2010 04:38 Jul 30, 2010 Jkt 089010 PO 00000 Frm 00047 Fmt 6604 Sfmt 6603 E:\HR\OC\SR236.XXX SR236

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ploration plan referred to in the fourth sentence of paragraph 

(1) is— 

(i) the date that is 90 days after the date on which the 

plan or the modifications to the plan are submitted; or 

(ii) the date that is not later than an additional 180 days 

after the deadline described in clause (i), if the Secretary 

makes a finding that additional time is necessary to complete any environmental, safety, or other reviews. 

(B) EXISTING LEASES.—In the case of a lease issued under a 

sale held on or before March 17, 2010, the Secretary, with the 

consent of the holder of the lease, may extend the deadline applicable to the lease for such additional time as the Secretary 

determines is necessary to complete any environmental, safety, 

or other reviews. 

ø(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— 

(A) before the lessee drills a well in accordance with the 

plan; and 

(B) before the lessee significantly modifies the well design 

originally approved by the Secretary. 

(2) ENGINEERING REVIEW REQUIRED.—The Secretary may not 

grant any drilling permit until the date of completion of a full 

review of the well system by not less than 2 agency engineers, 

including a written determination that— 

(A) critical safety systems (including blowout prevention) 

will use best available technology; and 

(B) blowout prevention systems will include redundancy 

and remote triggering capability. 

(3) MODIFICATION REVIEW REQUIRED.—The Secretary may not 

approve any modification of a permit without a determination, 

after an additional engineering review, that the modification 

will not compromise the safety of the well system previously approved. 

(4) OPERATOR SAFETY AND ENVIRONMENTAL MANAGEMENT RE- QUIRED.—The Secretary may not grant any drilling permit or 

modification of the permit until the date of completion and approval of a safety and environmental management plan that— 

(A) is to be used by the operator during all well operations; and 

(B) includes— 

(i) a description of the expertise and experience level 

of crew members who will be present on the rig; and 

(ii) designation of at least 2 environmental and safety managers that— 

(I) are employees of the operator; 

(II) would be present on the rig at all times; and 

(III) have overall responsibility for the safety 

and environmental management of the well system 

and spill response plan; and 


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(C) not later than May 1, 2012, requires that all employees on the rig meet the training and experience requirements under section 21(b)(4). 

(e) DISAPPROVAL OF EXPLORATION PLAN.— (1) IN GENERAL.—The Secretary shall disapprove an exploration plan submitted under this section if the Secretary determines that, 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 exploration plan would probably cause serious harm or damage to life (including fish 

and other aquatic life), property, mineral deposits, national 

security or defense, or the marine, coastal or human environments; 

(B) the threat of harm or damage would not disappear 

or decrease to an acceptable extent within a reasonable period of time; and 

(C) the advantages of disapproving the exploration plan 

outweigh the advantages of exploration. 

(2) COMPENSATION.—If an exploration plan is disapproved 

under this subsection, the provisions of subparagraphs (B) and 

(C) of section 25(h)(2) shall apply to the lease and the plan or 

any modified plan, except that the reference in section 

25(h)(2)(C) to a development and production plan shall be considered to be a reference to an exploration plan. 

ø(e)¿ (f)(1) If a significant revision of an exploration plan approved under this subsection is submitted to the Secretary, the 

process to be used for the approval of such revision shall be the 

same as set forth in subsection (c) of this section. 

(2) All exploration activities pursuant to any lease shall be conducted in accordance with an approved exploration plan or an approved revision of such plan. 

ø(f)¿ (g)(1) Exploration activities pursuant to any lease for which 

a drilling permit has been issued or for which an exploration plan 

has been approved, prior to ninety days after the date of enactment 

of this subsection, shall be considered in compliance with this section, except that the Secretary may, in accordance with section 

5(a)(1)(B) of this Act, order a suspension or temporary prohibition 

of any exploration activities and require a revised exploration plan. 

(2) The Secretary may require the holder of a lease described in 

paragraph (1) of this subsection to supply a general statement in 

accordance with subsection (c)(4) of this section, or to submit other 

information. 

(3) Nothing in this subsection shall be construed to amend the 

terms of any permit or plan to which this subsection applies. 

ø(g)¿ (h) Any permit for geological explorations authorized by 

this section shall be issued only if the Secretary determines, in accordance with regulations issued by the Secretary that— 

(1) the applicant for such permit is qualified; 

(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 aquatic 

life in the area, result in pollution, create hazardous or unsafe 


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conditions, unreasonably interfere with other uses of the area, 

or disturb any site, structure, or object of historical or archeological significance. 

ø(h)¿ (i) The Secretary shall not issue a lease or permit for, or 

otherwise allow, exploration, development, or production activities 

within fifteen miles of the boundaries of the Point Reyes Wilderness as depicted on a map entitled ‘‘Wilderness Plan, Point Reyes 

National Seashore’’, numbered 612–90,000–B and dated September 

1976, unless the State of California issues a lease or permit for, or 

otherwise allows, exploration, development, or production activities 

on lands beneath navigable waters (as such term is defined in section 2 of the Submerged Lands Act) of such State which are adjacent to such Wilderness. 

* * * * * * * 

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 and the need for the protection of the 

marine and coastal environment and resources 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 øconsiders¿ 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. 

* * * * * * * 

(3) The Secretary shall select the timing and location of leasing, øto the maximum extent practicable,¿ so as to obtain a 

proper balance between the potential for environmental damage, the potential for the discovery of oil and gas, and the potential for adverse impact on the coastal zone. 

* * * * * * * 

(b) The leasing program shall include estimates of the appropriations and staff required to— 

(1) obtain resource information and any other information 

needed to prepare the leasing program required by this section; 

(2) analyze and interpret the 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)); øand¿ 


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(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 leaseø.¿; and 

(5) provide technical review and oversight of the exploration 

plan and a systems review of the safety of the well design and 

other operational decisions; 

(6) conduct regular and thorough safety reviews and inspections, and; 

(7) enforce all applicable laws (including regulations). 

* * * * * * * 

(d)(1) Within ninety days after the date of publication of a proposed leasing program, the Attorney General may, after consultation with the Federal Trade Commission, submit comments on the 

anticipated effects of such proposed program upon competition. Any 

State, local government, or other person may submit comments and 

recommendations as to any aspect of such proposed program. 

(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 an interested 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, including 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. 

(h) The heads of all Federal departments and agencies shall provide the Secretary with any nonprivileged or nonproprietary information he requests to assist him in preparing the leasing program 

and may provide the Secretary with any privileged or proprietary 

information he requests to assist him in preparing the leasing program. Privileged or proprietary information 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. In adVerDate Mar 15 2010 04:38 Jul 30, 2010 Jkt 089010 PO 00000 Frm 00051 Fmt 6604 Sfmt 6602 E:\HR\OC\SR236.XXX SR236

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dition, the Secretary shall utilize the existing capabilities and resources of such Federal departments and agencies by appropriate 

agreement. 

(i) RESEARCH AND DEVELOPMENT.— (1) IN GENERAL.—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. 

(2) INCLUSIONS.—Research and development activities carried 

out under paragraph (1) 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. 

(3) LEASING ACTIVITIES.—Research and development activities 

carried out under paragraph (1) shall not be considered to be 

leasing or pre-leasing activities for purposes of this Act. 

* * * * * * * 

SEC. 20. ENVIRONMENTAL STUDIES.—(a) Comprehensive and Independent Studies— 

(1) IN GENERAL.—The Secretary shall develop and carry out 

programs for the collection, evaluation, assembly, analysis, and 

dissemination of environmental and other resource data that 

are relevant to carrying out the purposes of this Act. 

(2) SCOPE OF RESEARCH.—The programs under this subsection shall include— 

(A) the gathering of baseline data in areas before energy 

or mineral resource development activities occur; 

(B) ecosystem research and monitoring studies to support 

integrated resource management decisions; and 

(C) the improvement of scientific understanding of the 

fate, transport, and effects of discharges and spilled materials, including deep water hydrocarbon spills, in the marine environment. 

(3) USE OF DATA.—The Secretary shall ensure that information from the studies carried out under this section— 

(A) informs the management of energy and mineral resources on the outer Continental Shelf including any areas 

under consideration for oil and gas leasing; and 

(B) contributes to a broader coordination of energy and 

mineral resource development activities within the context 

of best available science. 

(4) INDEPENDENCE.—The Secretary shall create a program 

within the appropriate bureau established under section 32 that 

shall— 

(A) be programmatically separate and distinct from the 

leasing program; 

(B) carry out the environmental studies under this section; 

(C) conduct additional environmental studies relevant to 

the sound management of energy and mineral resources on 

the outer Continental Shelf; 


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(D) provide for external scientific review of studies under 

this section, including through appropriate arrangements 

with the National Academy of Sciences; and 

(E) subject to the restrictions of subsections (g) and (h) of 

section 18, make available to the public studies conducted 

and data gathered under this section. 

ø(a)¿ (b)(1) The Secretary shall conduct every 3 years 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. 

(2) Each study required by paragraph (1) of this subsection shall 

be commenced not later than six months after the date of enactment of this section with respect to any area or region where a 

lease sale has been held or announced by publication of a notice of 

proposed lease sale before such date of enactment, and not later 

than six months prior to the holding of a lease sale with respect 

to any area or region where no lease sale has been held or scheduled before such date of enactment. In the case of an agreement 

under section 8(k)(2), each study required by paragraph (1) of this 

subsection shall be commenced not later than 6 months prior to 

commencing negotiations for such agreement or the entering into 

the memorandum of agreement as the case may be. The Secretary 

may utilize information collected in any study prior to such date 

of enactment. 

(3) In addition to developing environmental information, any 

study of an area or region, to the extent practicable, shall be designed to predict impacts on the marine biota which may result 

from chronic low level pollution or large spills associated with outer 

Continental Shelf production, from the introduction of drill cuttings 

and drilling muds in the area, and from the laying of pipe to serve 

the offshore production area, and the impacts of development offshore on the affected and coastal areas. 

ø(b)¿ (c) Subsequent to the leasing and developing of any area or 

region, the Secretary shall conduct such additional studies to establish environmental information as he deems necessary and shall 

monitor the human, marine, and coastal environments of such area 

or region in a manner designed to provide time-series and data 

trend information which can be used for comparison with any previously collected data for the purpose of identifying any significant 

changes in the quality and productivity of such environments, for 

establishing trends in the areas studied and monitored, and for designing experiments to identify the causes of such changes. 

ø(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 


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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. 

ø(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. 

ø(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. 

ø(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) øUpon the date of enactment 

of this section,¿ Not later than May 1, 2011, and every 3 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. 

ø(b) In exercising their respective responsibilities for the artificial islands, installations, and other devices referred to in section 

4(a)(1) of 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.¿ 

(b) BEST AVAILABLE TECHNOLOGIES AND PRACTICES.— 

(1) IN GENERAL.—In exercising respective responsibilities 

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, to the maximum extent practicable, on existing operations, the use of the 

best available and safest technologies and practices, if the failVerDate Mar 15 2010 04:38 Jul 30, 2010 Jkt 089010 PO 00000 Frm 00054 Fmt 6604 Sfmt 6603 E:\HR\OC\SR236.XXX SR236

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ure of equipment would have a significant effect on safety, 

health, or the environment. 

(2) IDENTIFICATION OF BEST AVAILABLE TECHNOLOGIES.—Not 

later than May 1, 2011, and not later than every 3 years thereafter, the Secretary shall identify and publish an updated list 

of best available technologies for key areas of well design and 

operation, including blowout prevention and blowout and oil 

spill response. 

(3) SAFETY CASE.—Not later than May 1, 2011, 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. 

(4) EMPLOYEE TRAINING.— (A) IN GENERAL.—Not later than May 1, 2011, the Secretary shall promulgate regulations setting standards for 

training for all workers on offshore facilities (including mobile offshore drilling units) conducting energy and mineral 

resource exploration, development, and production operations on the outer Continental Shelf. 

(B) REQUIREMENTS.—The training standards under this 

paragraph shall require that employers of workers described in subparagraph (A)— 

(i) establish training programs approved by the Secretary; and 

(ii) demonstrate that employees involved in the offshore operations meet standards that demonstrate the 

aptitude of the employees in critical technical skills. 

(C) EXPERIENCE.—The training standards under this section shall require that any offshore worker with less than 

5 years of applied experience in offshore facilities operations pass a certification requirement after receiving the 

appropriate training. 

(D) MONITORING TRAINING COURSES.—The Secretary 

shall ensure that Department employees responsible for inspecting offshore facilities monitor, observe, and report on 

training courses established under this paragraph, including attending a representative number of the training sessions, as determined by the Secretary. 

(c) The Secretary of the Department in which the Coast Guard 

is operating shall promulgate regulations or standards applying to 

unregulated hazardous working conditions related to activities on 

the Outer Continental Shelf when he determines such regulations 

or standards are necessary. The Secretary of the Department in 

which the Coast Guard is operating may from time to time modify 

any regulations, interim or final, dealing with hazardous working 

conditions on the Outer Continental Shelf. 

* * * * * * * 

(f)(1) In administering the provisions of this section, the Secretary shall consult and coordinate with the heads of other appropriate Federal departments and agencies for purposes of assuring 

that, to the maximum extent practicable, inconsistent or duplicative requirements are not imposed. 

(2) The Secretary shall make available to any interested person 

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pared and promulgated by any Federal department or agency and 

applicable to activities on the Outer Continental Shelf. Such compilation shall be revised and updated annually. 

(g) 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 outer Continental Shelf energy and mineral resource activities, with the 

primary purpose of informing the role of research, development, 

and risk assessment relating to safety, environmental protection, and spill response. 

(2) SPECIFIC AREAS OF FOCUS.—The program under this subsection shall include research, development, and other activities 

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 interest in frontier areas; 

(C) analysis of incidents investigated under section 22; 

(D) reviews of best available technologies, including technologies associated with pipelines, blowout preventer mechanisms, casing, well design, and other associated infrastructure related to offshore energy development; 

(E) oil spill response and mitigation; 

(F) risks associated with human factors; and 

(G) renewable energy operations. 

(3) INFORMATION SHARING ACTIVITIES.— 

(A) DOMESTIC ACTIVITIES.—The Secretary shall carry out 

programs to facilitate the exchange and dissemination of 

scientific and technical information and best practices related to the management of safety and environmental issues 

associated with energy and mineral resource exploration, 

development, and production. 

(B) INTERNATIONAL COOPERATION.—The Secretary shall 

carry out programs to cooperate with international organizations and foreign governments to share information and 

best practices related to the management of safety and environmental issues associated with energy and mineral resource exploration, development, and production. 

(4) REPORTS.—The program under this subsection shall provide to the Secretary, each Bureau Director under section 32, 

and the public quarterly reports that address— 

(A) developments in each of the areas under paragraph 

(2); and 

(B)(i) any accidents that have occurred in the past quarter; and 

(ii) appropriate responses to the accidents. 

(5) INDEPENDENCE.—The Secretary shall create a program 

within the appropriate bureau established under section 32 that 

shall— 

(A) be programmatically separate and distinct from the 

leasing program; 


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(B) carry out the studies, analyses, and other activities 

under this subsection; 

(C) provide for external scientific review of studies under 

this section, including through appropriate arrangements 

with the National Academy of Sciences; and 

(D) make available to the public studies conducted and 

data gathered under this section. 

(6) USE OF DATA.—The Secretary shall ensure that the information from the studies and research carried out under this 

section inform the development of safety practices and regulations as required by this Act and other applicable laws. 

SEC. 22. ENFORCEMENT.—(a) The Secretary, the Secretary of the 

Department in which the Coast Guard is operating, and the Secretary of the Army shall enforce safety and environmental regulations promulgated pursuant to this Act. Each such Federal department may by agreement utilize, with or without reimbursement, 

the services, personnel, or facilities of other Federal departments 

and agencies for the enforcement of their respective regulations. 

* * * * * * * 

(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. 

(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, each loss of well control, blowout, activation of the blowout preventer, and other accident that presented 

a serious risk to human or environmental safety, and each major oil 

spillage 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. 

(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 lease. 


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ø(e) The¿ (e) REVIEW OF ALLEGED SAFETY VIOLATIONS.— (1) IN GENERAL.—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. 

(2) INVESTIGATION.—The Secretary shall investigate any allegation from any employee of the lessee or any subcontractor of 

the lessee made under paragraph (1). 

(f) In any investigation conducted pursuant to this section, the 

Secretary or the Secretary of the Department in which the Coast 

Guard is operating shall have power to summon witnesses and to 

require the production of books, papers, documents, and any other 

evidence. Attendance of witnesses or the production of books, papers, documents, or any other evidence shall be compelled by a 

similar process, as in the district courts of the United States. Such 

Secretary, or his designee, shall administer all necessary oaths to 

any witnesses summoned before such investigation. 

(g) INDEPENDENT INVESTIGATION.— (1) IN GENERAL.—At the request of the Secretary, the National 

Transportation Safety Board may conduct an independent investigation of any accident, occurring in the outer Continental 

Shelf and involving activities under this Act, that does not otherwise fall within the definition of an accident or major marine 

casualty, as those terms are used in chapter 11 of title 49, 

United States Code. 

(2) TRANSPORTATION ACCIDENT.—For purposes of an investigation under this subsection, the accident that is the subject 

of the request by the Secretary shall be determined to be a 

transportation accident within the meaning of that term in 

chapter 11 of title 49, United States Code. 

(h) INFORMATION ON CAUSES AND CORRECTIVE ACTIONS.— 

(1) IN GENERAL.—For each 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. 

(2) PUBLIC DATABASE.—All data and reports related to an incident described in paragraph (1) shall be maintained in a 

database that is available to the public. 

(i) INSPECTION FEE.— 

(1) IN GENERAL.—To the extent necessary to fund the inspections described in this paragraph, the Secretary shall collect a 

non-refundable inspection fee, which shall be deposited in the 

Ocean Energy Enforcement Fund established under paragraph 

(3), from the designated operator for facilities subject to inspection under subsection (c). 

(2) ESTABLISHMENT.—The Secretary shall establish, by rule, 

inspection fees— 

(A) at an aggregate level equal to the amount necessary 

to offset the annual expenses of inspections of outer Continental Shelf facilities (including mobile offshore drilling 

units) by the Department of the Interior; and 

(B) using a schedule that reflects the differences in complexity among the classes of facilities to be inspected. 


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(3) OCEAN ENERGY ENFORCEMENT FUND.—There is established in the Treasury a fund, to be known as the ‘Ocean Energy Enforcement Fund’ (referred to in this subsection as the 

‘Fund’), into which shall be deposited amounts collected under 

paragraph (1) and which shall be available as provided under 

paragraph (4). 

(4) AVAILABILITY OF FEES.—Notwithstanding section 3302 of 

title 31, United States Code, all amounts collected by the Secretary under this section— 

(A) shall be credited as offsetting collections; 

(B) shall be available for expenditure only for purposes of 

carrying out inspections of outer Continental Shelf facilities 

(including mobile offshore drilling units) and the administration of the inspection program; 

(C) shall be available only to the extent provided for in 

advance in an appropriations Act; and 

(D) shall remain available until expended. 

(5) ANNUAL REPORTS.— (A) IN GENERAL.—Not later than 60 days after the end of 

each fiscal year beginning with fiscal year 2011, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural 

Resources of the House of Representatives a report on the 

operation of the Fund during the fiscal year. 

(B) CONTENTS.—Each report shall include, for the fiscal 

year covered by the report, the following: 

(i) A statement of the amounts deposited into the 

Fund. 

(ii) A description of the expenditures made from the 

Fund for the fiscal year, including the purpose of the 

expenditures. 

(iii) Recommendations for additional authorities to 

fulfill the purpose of the Fund. 

(iv) A statement of the balance remaining in the 

Fund at the end of the fiscal year. 

* * * * * * * 

SEC. 24. REMEDIES AND PENALTIES.—(a) At the request of the 

Secretary, the Secretary of the Army, or the Secretary of the Department in which the Coast Guard is operating, the Attorney General or a United States attorney shall institute a civil action in the 

district court of the United States for the district in which the affected operation is located for a temporary restraining order, injunction, or other appropriate remedy to enforce any provision of 

this Act, any regulation or order issued under this Act, or any term 

of a lease, license, or permit issued pursuant to this Act. 

ø(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 


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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. 

ø(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) CIVIL PENALTY— 

(1) IN GENERAL.—Subject to paragraphs (2) through (3), if 

any person fails to comply with this Act, any term of a lease or 

permit issued under this Act, or any regulation or order issued 

under this Act, the person shall be liable for a civil administrative penalty of not more than $75,000 for each day of continuance of each failure. 

(2) ADMINISTRATION.—The Secretary may assess, collect, and 

compromise any penalty under paragraph (1). 

(3) HEARING.—No penalty shall be assessed under this subsection until the person charged with a violation has been given 

the opportunity for a hearing. 

(4) ADJUSTMENT.—The penalty amount specified in this subsection shall increase each year to reflect any increases in the 

Consumer Price Index for All Urban Consumers published by 

the Bureau of Labor Statistics of the Department of Labor. 

(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 ø$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. The penalty amount specified in this 

subsection shall increase each year to reflect any increases in the 

Consumer Price Index for All Urban Consumers published by the 

Bureau of Labor Statistics of the Department of Labor. 

(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 reckless 

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. 


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(e) The remedies and penalties prescribed in this Act shall be 

concurrent and cumulative and the exercise of one shall not preclude the exercise of the others. Further, the remedies and penalties prescribed in this Act shall be in addition to any other remedies and penalties afforded by any other law or regulation. 

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 Shelfø, 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 Shelfø, 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. 

* * * * * * * 

(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 Shelfø, other than the 

Gulf of Mexico,¿ to be a major Federal action. 

(2) The Secretary may require lessees of tracts for which development and production plans have not been approved, to submit preliminary or final plans for their leases, prior to or immediately 

after a determination by the Secretary that the procedures under 

the National Environmental Policy Act of 1969 shall commence. 

* * * * * * * 

øSEC. 29. RESTRICTIONS ON EMPLOYMENT.—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— 

ø(1) within two years after his employment with the Department has ceased— 

ø(A) knowingly act as agent or attorney for, or otherwise 

represent, any other person (except the United States) in 

any formal or informal appearance before; 

ø(B) with the intent to influence, make any oral or written communication on behalf of any other person (except 

the United States) to; or 

ø(C) knowingly aid or assist in representing any other 

person (except the United States) in any formal or informal appearance before, 


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øany 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, 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 

ø(2) within one year after his employment with the Department has ceased— 

ø(A) knowingly act as agent or attorney for, or otherwise 

represent, any other person (except the United States) in 

any formal or informal appearance before; or 

ø[(B) with the intent to influence, make any oral or written communication on behalf of any other person (except 

the United States) to, 

øthe 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.¿ 

SEC. 29. CONFLICTS OF INTEREST. 

(a) RESTRICTIONS ON EMPLOYMENT.—No full-time officer or employee of the department of the Interior who directly or indirectly 

discharged duties or responsibilities under this Act shall— 

(1) within 2 years after his employment with the Department 

has ceased— 

(A) knowingly act as agent or attorney for, or otherwise 

represent, any other person (except the United States) in 

any formal or informal appearance before; 

(B) with the intent to influence, make any oral or written 

communication on behalf of any other person (except the 

United States) to; or 

(C) knowingly aid, advise, or assist in— 

(i) representing any other person (except the United 

States in any formal or informal appearance before; or 

(ii) making, with the intent to influence, any oral or 

written communication on behalf of any other person 

(except the United States) to, 

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, 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; 


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(2) within 1 year after his employment with the Department 

has ceased— 

(A) knowingly act as agent or attorney for, or otherwise 

represent, any other person (except the United States) in 

any formal or informal appearance before; 

(B) with the intent to influence, make any oral or written 

communication on behalf of any other person (except the 

United States) to; or 

(C) knowingly aid, advise, or assist in— 

(i) representing any other person (except the United 

States in any formal or informal appearance before, or 

(ii) making, with the intent to influence, 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, inspection, enforcement action, 

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) accept employment or compensation, during the 1-year period beginning on the date on which employment with the Department has ceased, from any person (other than the United 

States) that has a direct and substantial interest— 

(A) that was pending under the official responsibility of 

the employee as an officer or employee of the Department 

during the 1-year period preceding the termination of the 

responsibility; or 

(B) in which the employee participated personally and 

substantially as an officer or employee. 

(b) PRIOR EMPLOYMENT RELATIONSHIPS.—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 has a financial interest. 

(c) GIFTS FROM OUTSIDE SOURCES.—No full-time officer or employee of the Department of the Interior who directly or indirectly 


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discharged 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 V, Code of Federal Regulations (or successor regulations). 

(d) EXEMPTIONS.—The Secretary may, by rule, exempt from this 

section clerical and support personnel who do not conduct inspections, perform audits, or otherwise exercise regulatory or policy 

making authority under this Act. 

(e) PENALTIES.— (1) CRIMINAL PENALTIES.—Any person who violates paragraph (1) or (2) of subsection (a) or subsection (b) shall be punished in accordance with section 216 of title 18, United States 

Code. 

(2) CIVIL PENALTIES.—Any person who violates subsection 

(a)(3) or (c) shall be punished in accordance with subsection (b) 

of section 216 of title 18, United States Code. 

* * * * * * * 

SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM. 

* * * * * * * 

SEC. 32. STRUCTURAL REFORM OF OUTER CONTINENTAL SHELF PROGRAM MANAGEMENT. 

(a) LEASING, PERMITTING, AND REGULATION BUREAUS.— (1) ESTABLISHMENT OF BUREAUS.— (A) IN GENERAL.—Subject to the discretion granted by Reorganization Plan Number 3 of 1950 (64 Stat. 1262; 43 

U.S.C. 1451 note), the Secretary shall establish in the Department of the Interior not more than 2 bureaus to carry 

out the leasing, permitting, and safety and environmental 

regulatory functions vested in the Secretary by this Act and 

the Federal Oil and Gas Royalty Management Act of 1982 

(30 U.S.C. 1701 et seq.) related to the outer Continental 

Shelf. 

(B) CONFLICTS OF INTEREST.—In establishing the bureaus under subparagraph (A), the Secretary shall ensure, 

to the maximum extent practicable, that any potential organizational conflicts of interest related to leasing, revenue 

creation, environmental protection, and safety are eliminated. 

(2) DIRECTOR.—Each bureau shall be headed by a Director, 

who shall be appointed by the President, by and with the advice 

and consent of the Senate. 

(3) COMPENSATION.—Each Director shall be compensated at 

the rate provided for level V of the Executive Schedule under 

section 5316 of title 5, United States Code. 

(4) QUALIFICATIONS.—Each Director shall be a person who, 

by reason of professional background and demonstrated ability 

and experience, is specially qualified to carry out the duties of 

the office. 

(b) ROYALTY AND REVENUE OFFICE.— 

(1) ESTABLISHMENT OF OFFICE.—Subject to the discretion 

granted by Reorganization Plan Number 3 of 1950 (64 Stat. 

1262; 43 U.S.C. 1451 note), the Secretary shall establish in the 


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Department of the Interior an office to carry out the royalty and 

revenue management functions vested in the Secretary by this 

Act and the Federal Oil and Gas Royalty Management Act of 

1982 (30 U.S.C. 1701 et seq.). 

(2) DIRECTOR.—The office established under paragraph (1) 

shall be headed by a Director, who shall be appointed by the 

President, by and with the advice and consent of the Senate. 

(3) 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. 

(4) QUALIFICATIONS.—The Director shall be a person who, by 

reason of professional background and demonstrated ability 

and experience, is specially qualified to carry out the duties of 

the office. 

(c) OCS SAFETY AND ENVIRONMENTAL ADVISORY BOARD.— (1) ESTABLISHMENT.—The Secretary shall establish, under 

the Federal Advisory Committee Act (5 U.S.C. App.), an Outer 

Continental Shelf Safety and Environmental Advisory Board 

(referred to in this subsection as the ‘Board’), to provide the Secretary and the Directors of the bureaus established under this 

section with independent peer-reviewed scientific and technical 

advice on safe and environmentally compliant energy and mineral resource exploration, development, and production activities. 

(2) MEMBERSHIP.— (A) SIZE.— (i) IN GENERAL.—The Board shall consist of not more 

than 12 members, chosen to reflect a range of expertise 

in scientific, engineering, management, and other disciplines related to safe and environmentally compliant 

energy and mineral resource exploration, development, 

and production activities. 

(ii) CONSULTATION.—The Secretary shall consult 

with the National Academy of Sciences and the National Academy of Engineering to identify potential 

candidates for membership on the Board. 

(B) TERM.—The Secretary shall appoint Board members 

to staggered erms of not more than 4 years, and shall not 

appoint a member for more than 2 consecutive terms. 

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

the Board. 

(3) MEETINGS.—The Board shall— 

(A) meet not less than 3 times per year; and 

(B) at least once per year, shall host a public forum to 

review and assess the overall safety and environmental performance of outer Continental Shelf energy and mineral resource activities. 

(4) REPORTS.—Reports of the Board shall— 

(A) be submitted to Congress; and 

(B) made available to the public in an electronically accessible form. 

(5) TRAVEL EXPENSES.—Members of the Board, other than 

full-time employees of the Federal Government, while attending 

a meeting of the Board or while otherwise serving at the request 


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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 Federal Government serving without pay. 

(d) SPECIAL PERSONNEL AUTHORITIES.— 

(1) DIRECT HIRING AUTHORITY FOR CRITICAL PERSONNEL.— 

(A) IN GENERAL.—Notwithstanding sections 3104, 3304, 

and 3309 through 3318 of title 5, United States Code, the 

Secretary may, upon a determination that there is a severe 

shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified accountants, scientists, engineers, or critical technical 

personnel into the competitive service, as officers or employees of any of the organizational units established under this 

section. 

(B) REQUIREMENTS.—In exercising the authority granted 

under subparagraph (A), the Secretary shall ensure that 

any action taken by the Secretary— 

(i) is consistent with the merit principles of chapter 

23 of title 5, United States Code; and 

(ii) complies with the public notice requirements of 

section 3327 of title 5, United States Code. 

(2) CRITICAL PAY AUTHORITY.— 

(A) IN GENERAL.—Notwithstanding section 5377 of title 5, 

United States Code, and without regard to the provisions 

of that title governing appointments in the competitive service or the Senior Executive Service and chapters 51 and 53 

of that title (relating to classification and pay rates), the 

Secretary may establish, fix the compensation of, and appoint individuals to critical positions needed to carry out 

the functions of any of the organizational units established 

under this section, if the Secretary certifies that— 

(i) the positions— 

(I) require expertise of an extremely high level in 

a scientific or technical field; and 

(II) any of the organizational units established 

in this section would not successfully accomplish 

an important mission without such an individual; 

and 

(ii) exercise of the authority is necessary to recruit an 

individual exceptionally well qualified for the position. 

(B) LIMITATIONS.—The authority granted under subparagraph (A) shall be subject to the following conditions: 

(i) The number of critical positions authorized by 

subparagraph (A) may not exceed 40 at any 1 time in 

either of the bureaus established under this section. 

(ii) The term of an appointment under subparagraph 

(A) may not exceed 4 years. 

(iii) An individual appointed under subparagraph 

(A) may not have been an employee of the Department 

of the Interior during the 2–year period prior to the 

date of appointment. 


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(iv) Total annual compensation for any individual 

appointed under subparagraph (A) may not exceed the 

highest total annual compensation payable at the rate 

determined under section 104 of title 3, United States 

Code. 

(v) An individual appointed under subparagraph (A) 

may not be considered to be an employee for purposes 

of subchapter II of chapter 75 of title 5, United States 

Code. 

(C) NOTIFICATION.—Each year, the Secretary shall submit to Congress a notification that lists each individual appointed under this paragraph. 

(3) REEMPLOYMENT OF CIVILIAN RETIREES.— 

(A) IN GENERAL.—Notwithstanding part 553 of title 5, 

Code of Federal Regulations (relating to reemployment of 

civilian retirees to meet exceptional employment needs), or 

successor regulations, the Secretary may approve the reemployment of an individual to a particular position without 

reduction or termination of annuity if the hiring of the individual is necessary to carry out a critical function of any 

of the organizational units established under this section 

for which suitably qualified candidates do not exist. 

(B) LIMITATIONS.—An annuitant hired with full salary 

and annuities under the authority granted by subparagraph (A)— 

(i) shall not be considered an employee for purposes 

of subchapter III of chapter 83 and chapter 84 of title 

5, United States Code; 

(ii) may not elect to have retirement contributions 

withheld from the pay of the annuitant; 

(iii) may not use any employment under this paragraph as a basis for a supplemental or recomputed annuity; and (iv) may not participate in the Thrift Savings Plan under subchapter III of chapter 84 of title 5, 

United States Code. 

(C) LIMITATION ON TERM.—The term of employment of 

any individual hired under subparagraph (A) may not exceed an initial term of 2 years, with an additional 2–year 

appointment under exceptional circumstances. 

(e) CONTINUITY OF AUTHORITY.—Subject to the discretion granted 

by Reorganization Plan Number 3 of 1950 (64 Stat. 1262; 43 U.S.C. 

1451 note), any reference in any law, rule, regulation, directive, or 

instruction, or certificate or other official document, in force immediately prior to the date of enactment of this section— 

(1) to the Minerals Management Service that pertains to any 

of the duties and authorities described in this section shall be 

deemed to refer and apply to the appropriate bureaus and offices established under this section; 

(2) to the Director of the Minerals Management Service that 

pertains to any of the duties and authorities described in this 

section shall be deemed to refer and apply to the Director of the 

bureau or office under this section to whom the Secretary has 

assigned the respective duty or authority; and 


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(3) to any other position in the Minerals Management Service 

that pertains to any of the duties and authorities described in 

this section shall be deemed to refer and apply to that same or 

equivalent position in the appropriate bureau or office established under this section. 

UNITED STATES CODE 

TITLE 5—GOVERNMENT ORGANIZATION AND 

EMPLOYEES 

* * * * * * * 

PART III—EMPLOYEES 

* * * * * * * 

Subpart D—Pay and Allowances 

* * * * * * * 

CHAPTER 53—PAY RATES AND SYSTEMS 

* * * * * * * 

Subchapter II—Executive Schedule Pay Rates 

* * * * * * * 

§ 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: 

* * * * * * * 

øDirector, Bureau of Mines, Department of the Interior.¿ 

Bureau Directors, Department of the Interior (2). 

Director, Royalty and Revenue Office, Department of the Interior. 

* * * * * * * 

ENERGY POLICY ACT OF 2005 

PUBLIC LAW 109–58, AS AMENDED 

AN ACT To ensure jobs for our future with secure, affordable, and reliable energy. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Energy Policy 

Act of 2005’’. 

* * * * * * * 


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TITLE III—OIL AND GAS 

* * * * * * * 

Subtitle G—Miscellaneous 

* * * * * * * 

SEC. 388. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF. 

* * * * * * * 

(b) COORDINATED OCS MAPPING INITIATIVE.— 

(1) IN GENERAL.—The Secretary of the Interior, in cooperation with the Secretary of Commerce, the Commandant of the 

Coast Guard, and the Secretary of Defense, shall establish an 

interagency comprehensive digital mapping initiative for the 

outer Continental Shelf to assist in decisionmaking relating to 

the siting of activities under subsection (p) of section 8 of the 

Outer Continental Shelf Lands Act (43 U.S.C. 1337) (as added 

by subsection (a)). 

* * * * * * * 

(4) FEDERAL AGENCIES.—Any head of a Federal department 

or agency shall, on request of the Secretary, provide to the Secretary all data and information that the Secretary determines 

to be necessary for the purpose of including the data and information in the mapping initiative, except that no Federal department or agency shall be required to provide any data or information that is privileged or proprietary. 

* * * * * * * 

TITLE IX—RESEARCH AND DEVELOPMENT 

* * * * * * * 

Subtitle J—øUltra-Deepwater and Unconventional Natural Gas 

and Other Petroleum Resources¿ Safer Oil and Gas Production 

and Accident Prevention 

* * * * * * * 

SEC. 999A. PROGRAM AUTHORITY. 

(a) IN GENERAL.—The Secretary shall carry out a program under 

this subtitle of research, development, demonstration, and commercial application of technologies for øultra-deepwater¿ deepwater 

and unconventional natural gas and other petroleum resource exploration and production, including addressing the technology challenges for small producers, safe operations, well control and accident prevention, and environmental mitigation (including reduction 

of greenhouse gas emissions and sequestration of carbon). 

(b) PROGRAM ELEMENTS.—The program under this subtitle shall 

address the following areas, including improving safety and minimizing environmental impacts of activities within each area: 

ø(1) Ultra-deepwater architecture and technology, including 

drilling to formations in the Outer Continental Shelf to depths 

greater than 15,000 feet.¿ 


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(1) Deepwater architecture, well control and accident prevention, and deepwater technology, including drilling to deep formations in waters greater than 500 feet. 

(2) Unconventional natural gas and other petroleum resource 

exploration and production technology. 

(3) The technology challenges of small producers. 

ø(4) Complementary research performed by the National Energy Technology Laboratory for the Department.¿ 

(4) Safety technology research and development for drilling 

activities aimed at well control and accident prevention performed by the Office of Fossil Energy of the Department. 

(c) LIMITATION ON LOCATION OF FIELD ACTIVITIES.—Field activities under the program under this subtitle shall be carried out 

only— 

(1) in— 

(A) areas in the territorial waters of the United States 

not under any Outer Continental Shelf moratorium as of 

September 30, 2002; 

(B) areas onshore in the United States on public land 

administered by the Secretary of the Interior available for 

oil and gas leasing, where consistent with applicable law 

and land use plans; and 

(C) areas onshore in the United States on State or private land, subject to applicable law; and 

(2) with the approval of the appropriate Federal or State 

land management agency or private land owner. 

(d) ACTIVITIES AT THE øNATIONAL ENERGY TECHNOLOGY LABORATORY¿ OFFICE OF FOSSIL ENERGY OF THE DEPARTMENT.—The Secretary, through the øNational Energy Technology Laboratory¿ Office of Fossil Energy of the Department, shall carry out a program 

of research and other activities complementary to and supportive 

of the research programs under subsection (b). 

(e) CONSULTATION WITH SECRETARY OF THE INTERIOR.—In carrying out this subtitle, the Secretary shall consult regularly with 

the Secretary of the Interior. 

SEC. 999B. øULTRA-DEEPWATER AND UNCONVENTIONAL ONSHORE 

NATURAL GAS AND OTHER PETROLEUM¿ SAFE OIL AND 

GAS PRODUCTION AND ACCIDENT PREVENTION RESEARCH AND DEVELOPMENT PROGRAM. 

(a) IN GENERAL.—The Secretary shall carry out the activities 

under section 999A, to maximize the value of natural gas and other 

petroleum resources of the United Statesø, by increasing the supply of such resources, through reducing the cost and increasing the 

efficiency of exploration for and production of such resources, while 

improving safety and minimizing environmental impacts.¿ and the 

safe and environmentally responsible exploration, development, and 

production of hydrocarbon resources. 

(b) ROLE OF THE SECRETARY.—The Secretary shall have ultimate 

responsibility for, and oversight of, all aspects of the program 

under this section. 

(c) ROLE OF THE PROGRAM CONSORTIUM.— 

(1) IN GENERAL.—The Secretary shall contract with a corporation that is structured as a consortium to administer the 


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programmatic activities outlined in this chapter. The program 

consortium shall— 

(A) administer the program pursuant to subsection (f)(3), 

utilizing program administration funds only; 

(B) issue research project solicitations upon approval of 

the Secretary or the Secretary’s designee; 

(C) make project awards to research performers upon approval of the Secretary or the Secretary’s designee; 

(D) projects will be selected on a competitive, peer-reviewed basis; 

ø(D)¿ (E) disburse research funds to research performers 

awarded under subsection (f) as directed by the Secretary 

in accordance with the annual plan under subsection (e); 

and 

ø(E)¿ (F) carry out other activities assigned to the program consortium by this section. 

(2) LIMITATION.—The Secretary may not assign any activities 

to the program consortium except as specifically authorized 

under this section. 

* * * * * * * 

(d) SELECTION OF THE PROGRAM CONSORTIUM.— (1) IN GENERAL.—The Secretary shall select the program consortium through an open, competitive process. 

* * * * * * * 

(6) ELIGIBILITY.—To be eligible to be selected as the program 

consortium, an applicant must be an entity whose members 

have collectively demonstrated capabilities and experience in 

planning and managing research, development, demonstration, 

and commercial application programs for øultra-deepwater¿ 

deepwater and unconventional natural gas or other petroleum 

exploration or production. 

(7) FOCUS AREAS FOR AWARDS.— 

(A) øULTRA-DEEPWATER¿ DEEPWATER RESOURCES.— 

Awards from allocations under section 999H(d)(1) shall 

focus on the ødevelopment and¿ research, development, 

and demonstration of individual exploration and production technologies øas well as integrated systems technologies including new architectures for production in 

ultra-deepwater.¿ aimed at improving operational safety of 

drilling activities, including well integrity systems, well 

control, blowout prevention, the use of non-toxic materials, 

and integrated systems approach-based management for exploration and production in deepwater. 

(B) UNCONVENTIONAL RESOURCES.—Awards from allocations under section 999H(d)(2) shall focus on areas including advanced coalbed methane, deep drilling, natural gas 

production from tight sands, natural gas production from 

gas shales, stranded gas, innovative exploration and production techniques, enhanced recovery techniques, øand 

environmental mitigation¿ use of non-toxic materials, drilling safety, and environmental mitigation and accident prevention of unconventional natural gas and other petroleum 

resources exploration and production. 


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(C) SMALL PRODUCERS.—Awards from allocations under 

section 999H(d)(3) shall be made to consortia consisting of 

small producers or organized primarily for the benefit of 

small producers, and shall focus on areas including safety 

and accident prevention, well control and systems integrity, complex geology involving rapid changes in the type and 

quality of the oil and gas reservoirs across the reservoir; 

low reservoir pressure; unconventional natural gas reservoirs in coalbeds, deep reservoirs, tight sands, or shales; 

and unconventional oil reservoirs in tar sands and oil 

shales. 

(D) SAFETY AND ACCIDENT PREVENTION TECHNOLOGY RE- SEARCH AND DEVELOPMENT.—Awards from allocations 

under section 999H(d)(4) shall be expended on areas including— 

(i) development of improved cementing and casing 

technologies; 

(ii) best management practices for cementing, casing, 

and other well control activities and technologies; 

(iii) development of integrity and stewardship guidelines for— 

(I) well-plugging and abandonment; 

(II) development of wellbore sealant technologies; 

and 

(III) improvement and standardization of blowout prevention devices. 

(8) STUDY; REPORT.— (A) STUDY.—As soon as practicable after the date of enactment of this paragraph, the Secretary shall enter into an 

arrangement with the National Academy of Sciences under 

which the Academy shall conduct a study to determine— 

(i) whether the benefits provided through each award 

under this subsection during calendar year 2011 have 

been maximized; and 

(ii) the new areas of research that could be carried 

out to meet the overall objectives of the program. 

(B) REPORT.—Not later than January 1, 2012, the Secretary shall submit to the appropriate committees of Congress a report that contains a description of the results of 

the study conducted under subparagraph (A). 

(C) OPTIONAL UPDATES.—The Secretary may update the 

report described in subparagraph (B) for the 5–year period 

beginning on the date described in that subparagraph and 

each 5-year period thereafter. 

(e) ANNUAL PLAN.— 

(1) IN GENERAL.—The program under this section shall be 

carried out pursuant to an annual plan prepared by the Secretary in accordance with paragraph (2). 

(2) DEVELOPMENT.— (A) SOLICITATION OF RECOMMENDATIONS.—Before drafting an annual plan under this subsection, the Secretary 

shall solicit specific written recommendations from the 

program consortium for each element to be addressed in 

the plan, including those described in paragraph (4). The 


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program consortium shall submit to the Secretary for review its recommendations in the form of a draft annual 

plan. 

(B) SUBMISSION OF RECOMMENDATIONS; OTHER COM- MENT.—The Secretary shall submit the recommendations 

of the program consortium under subparagraph (A) to the 

øUltra-Deepwater Advisory Committee established under 

section 999D(a) and to the Unconventional Resources 

Technology Advisory Committee established under section 

999D(b), and such Advisory Committees¿ Program Advisory Committee established under section 999D(a), and the 

Advisory Committee shall provide to the Secretary written 

comments by a date determined by the Secretary. The Secretary may also solicit comments from any other experts. 

(C) CONSULTATION.—The Secretary shall consult regularly with the program consortium throughout the preparation of the annual plan. 

(3) PUBLICATION.—The Secretary shall transmit to Congress 

and publish in the Federal Register the annual plan, along 

with any written comments received under paragraph (2)(A) 

and (B). 

(4) CONTENTS.—The annual plan shall describe the ongoing 

and prospective activities of the program under this section 

and shall include— 

(A) a list of any solicitations for awards to carry out research, development, demonstration, or commercial application activities, including the topics for such work, who 

would be eligible to apply, selection criteria, and the duration of awards; and 

(B) a description of the activities expected of the program consortium to carry out subsection (f)(3). 

(5) ESTIMATES OF INCREASED ROYALTY RECEIPTS.—The Secretary, in consultation with the Secretary of the Interior, shall 

provide an annual report to Congress with the President’s 

budget on the estimated cumulative increase in Federal royalty 

receipts (if any) resulting from the implementation of this subtitle. The initial report under this paragraph shall be submitted in the first President’s budget following the completion 

of the first annual plan required under this subsection. 

(6) RESEARCH FINDINGS AND RECOMMENDATIONS FOR IMPLE- MENTATION.—The Secretary, in consultation with the Secretary 

of the Interior and the Administrator of the Environmental Protection Agency, shall publish in the Federal Register an annual 

report on the research findings of the program carried out 

under this section and any recommendations for implementation that the Secretary, in consultation with the Secretary of the 

Interior and the Administrator of the Environmental Protection 

Agency, determines to be necessary. 

* * * * * * * 

(i) ACTIVITIES BY THE øUNITED STATES GEOLOGICAL SURVEY¿ DE- PARTMENT OF THE INTERIOR.—The Secretary of the Interiorø, through the United States Geological Survey,¿ shall, where appropriate, carry out programs of long-term research to complement the 

programs under this section. 


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(j) PROGRAM REVIEW AND OVERSIGHT.—The øNational Energy 

Technology Laboratory¿ Office of Fossil Energy of the Department, 

on behalf of the Secretary, shall (1) issue a competitive solicitation 

for the program consortium, (2) evaluate, select, and award a contract or other agreement to a qualified program consortium, and (3) 

have primary review and oversight responsibility for the program 

consortium, including review and approval of research awards proposed to be made by the program consortium, to ensure that its activities are consistent with the purposes and requirements described in this subtitle. Up to 5 percent of program funds allocated 

under paragraphs (1) through (3) of section 999H(d) may be used 

for this purpose, including program direction and the establishment of a site office if determined to be necessary to carry out the 

purposes of this subsection. 

SEC. 999C. ADDITIONAL REQUIREMENTS FOR AWARDS. 

(a) DEMONSTRATION PROJECTS.—An application for an award 

under this subtitle for a demonstration project shall describe with 

specificity the intended commercial use of the technology to be 

demonstrated. 

(b) FLEXIBILITY IN LOCATING DEMONSTRATION PROJECTS.—Subject to the limitation in section 999A(c), a demonstration project 

under this subtitle relating to øan ultra-deepwater technology or 

an ultra-deepwater architecture¿ a deepwater technology may be 

conducted in deepwater depths. 

* * * * * * * 

øSEC. 999D. ADVISORY COMMITTEES. 

ø(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— ø(1) ESTABLISHMENT.—Not later than 270 days after the date 

of enactment of this Act, the Secretary shall establish an advisory committee to be known as the Ultra-Deepwater Advisory 

Committee. 

ø(2) MEMBERSHIP.—The Advisory Committee under this subsection shall be composed of members appointed by the Secretary, including— 

ø(A) individuals with extensive research experience or 

operational knowledge of offshore natural gas and other 

petroleum exploration and production; 

ø(B) individuals broadly representative of the affected 

interests in ultra-deepwater natural gas and other petroleum production, including interests in environmental protection and safe operations; 

ø(C) no individuals who are Federal employees; and 

ø(D) no individuals who are board members, officers, or 

employees of the program consortium. 

ø(3) DUTIES.—The Advisory Committee under this subsection 

shall— 

ø(A) advise the Secretary on the development and implementation of programs under this subtitle related to ultradeepwater natural gas and other petroleum resources; and 

ø(B) carry out section 999B(e)(2)(B). 

ø(4) COMPENSTATION.—A member of the Advisory Committee 

under this subsection shall serve without compensation but 

shall receive travel expenses in accordance with applicable proVerDate Mar 15 2010 04:38 Jul 30, 2010 Jkt 089010 PO 00000 Frm 00074 Fmt 6604 Sfmt 6602 E:\HR\OC\SR236.XXX SR236

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visions under subchapter I of chapter 57 of title 5, United 

States Code. 

ø(b) UNCONVENTIONAL RESOURCES TECHNOLOGY ADVISORY COMMITTEE.— 

ø(1) ESTABLISHMENT.—Not later than 270 days after the date 

of enactment of this Act, the Secretary shall establish an advisory committee to be known as the Unconventional Resources 

Technology Advisory Committee. 

ø(2) MEMBERSHIP.—The Secretary shall endeavor to have a 

balanced representation of members on the Advisory Committee to reflect the breadth of geographic areas of potential 

gas supply. The Advisory Committee under this subsection 

shall be composed of members appointed by the Secretary, including— 

ø(A) a majority of members who are employees or representatives of independent producers of natural gas and 

other petroleum, including small producers; 

ø(B) individuals with extensive research experience or 

operational knowledge of unconventional natural gas and 

other petroleum resource exploration and production; 

ø(C) individuals broadly representative of the affected 

interests in unconventional natural gas and other petroleum resource exploration and production, including interests in environmental protection and safe operations; 

ø(D) individuals with expertise in the various geographic 

areas of potential supply of unconventional onshore natural gas and other petroleum in the United States; 

ø(E) no individuals who are Federal employees; and 

ø(F) no individuals who are board members, officers, or 

employees of the program consortium. 

ø(3) DUTIES.—The Advisory Committee under this subsection 

shall— 

ø(A) advise the Secretary on the development and implementation of activities under this subtitle related to unconventional natural gas and other petroleum resources; and 

ø(B) carry out section 999B(e)(2)(B). 

ø(4) COMPENSTATION.—A member of the Advisory Committee 

under this subsection shall serve without compensation but 

shall receive travel expenses in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United 

States Code. 

ø(c) PROHIBITION.—No advisory committee established under this 

section shall make recommendations on funding awards to particular consortia or other entities, or for specific projects.¿ 

SEC. 999D. PROGRAM ADVISORY COMMITTEE. 

(a) ESTABLISHMENT.—Not later than 270 days after the date of 

enactment of the Safe and Responsible Energy Production Improvement Act of 2010, the Secretary shall establish an advisory committee to be known as the Program Advisory Committee’ (referred to 

in this section as the Advisory Committee’). 

(b) MEMBERSHIP.— 

(1) IN GENERAL.—The Advisory Committee shall be composed 

of members appointed by the Secretary, including— 


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(A) individuals with extensive research experience or 

operational knowledge of hydrocarbon exploration and production; 

(B) individuals broadly representative of the affected interests in hydrocarbon production, including interests in 

environmental protection and safety operations; 

(C) representatives of Federal agencies, including the Environmental Protection Agency and the Department of the 

Interior; 

(D) State regulatory agency representatives; and 

(E) other individuals, as determined by the Secretary. 

(2) LIMITATIONS.— (A) IN GENERAL.—The Advisory Committee shall not include individuals who are board members, officers, or employees of the program consortium. 

(B) CATEGORICAL REPRESENTATION.—In appointing members of the Advisory Committee, the Secretary shall ensure 

that no class of individuals described in any of subparagraphs (A), (B), (D), or (E) of paragraph (1) comprises more 

than 13 of the membership of the Advisory Committee. 

(c) SUBCOMMITTEES.—The Advisory Committee may establish subcommittees for separate research programs carried out under this 

subtitle. 

(d) DUTIES.—The Advisory Committee shall— 

(1) advise the Secretary on the development and implementation of programs under this subtitle; and 

(2) carry out section 999B(e)(2)(B). 

(e) COMPENSATION.—A member of the Advisory Committee shall 

serve without compensation but shall be entitled to receive travel expenses in accordance with subchapter I of chapter 57 of title 5, 

United States Code. 

(f) PROHIBITION.—The Advisory Committee shall not make recommendations on funding awards to particular consortia or other 

entities, or for specific projects. 

* * * * * * * 

SEC. 999G. DEFINITIONS. 

In this subtitle: 

(1) DEEPWATER.—The term ‘‘deepwater’’ means a water 

depth that is greater than ø200 but less than 1,500 meters¿ 

500 feet. (2) DEEPWATER ARCHITECTURE.—The term ‘‘deepwater architecture’’ means the integration of technologies for the exploration for, or production of, natural gas or other petroleum resources located at deepwater depths. 

(3) DEEPWATER TECHNOLOGY.—The term ‘‘deepwater technology’’ means a discrete technology that is specially suited to 

address 1 or more challenges associated with the exploration 

for, or production of, natural gas or other petroleum resources 

located at deepwater depths. 

ø(2)¿ (4) INDEPENDENT PRODUCER OF OIL OR GAS.— 

(A) IN GENERAL.—The term ‘‘independent producer of oil 

or gas’’ means any person that produces oil or gas other 

than a person to whom subsection (c) of section 613A of 


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the Internal Revenue Code of 1986 does not apply by reason of paragraph (2) (relating to certain retailers) or paragraph (4) (relating to certain refiners) of section 613A(d) of 

such Code. 

(B) RULES FOR APPLYING PARAGRAPHS (2) AND (4) OF SEC- TION 613A(d).—For purposes of subparagraph (A), paragraphs (2) and (4) of section 613A(d) of the Internal Revenue Code of 1986 shall be applied by substituting ‘‘calendar year’’ for ‘‘taxable year’’ each place it appears in 

such paragraphs. 

ø(3)¿ (5) PROGRAM ADMINISTRATION FUNDS.—The term ‘‘program administration funds’’ means funds used by the program 

consortium to administer the program under this subtitle, but 

not to exceed 10 percent of the total funds allocated under 

paragraphs (1) through (3) of section 999H(d). 

ø(4)¿ (6) PROGRAM CONSORTIUM.—The term ‘‘program consortium’’ means the consortium selected under section 999B(d). 

ø(5)¿ (7) PROGRAM RESEARCH FUNDS.—The term ‘‘program research funds’’ means funds awarded to research performers by 

the program consortium consistent with the annual plan. 

ø(6)¿ (8) REMOTE OR INCONSEQUENTIAL.—The term ‘‘remote 

or inconsequential’’ has the meaning given that term in regulations issued by the Office of Government Ethics under section 

208(b)(2) of title 18, United States Code. 

ø(7)¿ (9) SMALL PRODUCER.—The term ‘‘small producer’’ 

means an entity organized under the laws of the United States 

with production levels of less than 1,000 barrels per day of oil 

equivalent. 

ø(8) ULTRA-DEEPWATER.—The term ‘‘ultra-deepwater’’ means 

a water depth that is equal to or greater than 1,500 meters. 

ø(9) ULTRA-DEEPWATER ARCHITECTURE.—The term ‘‘ultradeepwater architecture’’ means the integration of technologies 

for the exploration for, or production of, natural gas or other 

petroleum resources located at ultra-deepwater depths. 

ø(10) ULTRA-DEEPWATER TECHNOLOGY.—The term ‘‘ultradeepwater technology’’ means a discrete technology that is specially suited to address one or more challenges associated with 

the exploration for, or production of, natural gas or other petroleum resources located at ultra-deepwater depths.¿ 

ø(11)¿ (10) UNCONVENTIONAL NATURAL GAS AND OTHER PE- TROLEUM RESOURCE.—The term ‘‘unconventional natural gas 

and other petroleum resource’’ means natural gas and other 

petroleum resource located onshore øin an economically inaccessible geological formation, including resources of small producers¿. 

SEC. 999H. ø42 U.S.C. 16378¿ 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 øUltra-Deepwater and Unconventional Natural Gas and Other 


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Petroleum Research Fund¿ Safe and Responsible Energy Production 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)). 

* * * * * * * 

(d) ALLOCATION.—Amounts obligated from the Fund under subsection (a)(1) in each fiscal year shall be allocated as follows: 

(1) ø35 percent¿ 21.5 percent shall be for activities under section 999A(b)(1). 

(2) ø32.5 percent¿ 21 percent shall be for activities under section 999A(b)(2). 

(3) 7.5 percent shall be for activities under section 

999A(b)(3). 

(4) ø25 percent¿ 30 percent shall be for øcomplementary research¿ safety technology research and development under section 999A(b)(4) and other activities under section 999A(b) to include program direction funds, overall program oversight, øcontract management, and the establishment and operation of a 

technical committee to ensure that in-house research activities 

funded under section 999A(b)(4) are technically complementary 

to, and not duplicative of, research conducted under paragraphs (1), (2), and (3) of section 999A(b).¿ and contract management. 

(5) 20 percent shall be used for research activities required 

under sections 20 and 21 of the Outer Continental Shelf Lands 

Act (43 U.S.C. 1346, 1347). 

(e) AUTHORIZATION OF APPROPRIATIONS.—In addition to other 

amounts that are made available to carry out this section, 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 ø‘‘Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund’’¿ ‘‘Safer Oil and Gas Production and Accident Prevention Research Fund’’. 

Æ 


pwalker on DSK8KYBLC1PROD with HEARING