II 

113TH CONGRESS 

1ST SESSION S. 199 

To amend the Outer Continental Shelf Lands Act to require that oil produced 

from Federal leases in certain Arctic waters be transported by pipeline 

to onshore facilities and to provide for the sharing of certain outer 

Continental Shelf revenues from areas in the Alaska Adjacent Zone. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 31, 2013 

Mr. BEGICH introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To amend the Outer Continental Shelf Lands Act to require 

that oil produced from Federal leases in certain Arctic 

waters be transported by pipeline to onshore facilities 

and to provide for the sharing of certain outer Continental Shelf revenues from areas in the Alaska Adjacent 

Zone. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Alaska Adjacent Zone 

5 Safe Oil Transport and Revenue Sharing Act’’. 


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1 SEC. 2. PRODUCTION OF OIL FROM CERTAIN ARCTIC OFF2 SHORE LEASES. 

3 Section 5 of the Outer Continental Shelf Lands Act 

4 (43 U.S.C. 1334) is amended by adding at the end the 

5 following: 

6 ‘‘(k) OIL TRANSPORTATION IN ARCTIC WATERS.— 

7 The Secretary shall— 

8 ‘‘(1) require that oil produced from Federal 

9 leases in Arctic waters in the Chukchi Sea planning 

10 area, Beaufort Sea planning area, or Hope Basin 

11 planning area be transported by pipeline to onshore 

12 facilities; and 

13 ‘‘(2) provide for, and issue appropriate permits 

14 for, the transportation of oil from Federal leases in 

15 Arctic waters in preproduction phases (including ex16 ploration) by means other than pipeline.’’. 

17 SEC. 3. REVENUE SHARING FROM AREAS IN ALASKA ADJA18 CENT ZONE. 

19 Section 18 of the Outer Continental Shelf Lands Act 

20 (43 U.S.C. 1344) is amended by adding at the end the 

21 following: 

22 ‘‘(i) REVENUE SHARING FROM AREAS IN ALASKA

23 ADJACENT ZONE.— 

24 ‘‘(1) DEFINITIONS.—In this subsection: 

25 ‘‘(A) COASTAL POLITICAL SUBDIVISION.— 

26 The term ‘coastal political subdivision’ means a 


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1 county-equivalent subdivision of the State all or 

2 part of which— 

3 ‘‘(i) lies within the coastal zone (as 

4 defined in section 304 of the Coastal Zone 

5 Management Act of 1972 (16 U.S.C. 

6 1453)); and 

7 ‘‘(ii) the closest point of which is not 

8 more than 300 statute miles from the geo9 graphical center of any leased tract. 

10 ‘‘(B) DISTANCE.—The term ‘distance’ 

11 means minimum great circle distance. 

12 ‘‘(C) INDIAN TRIBE.—The term ‘Indian 

13 tribe’ means an Alaska Native entity recognized 

14 and eligible to receive services from the Bureau 

15 of Indian Affairs, the headquarters of which is 

16 located within 300 miles of the geographical 

17 center of a leased tract. 

18 ‘‘(D) LEASED TRACT.—The term ‘leased 

19 tract’ means a tract leased under this Act for 

20 the purpose of drilling for, developing, and pro21 ducing oil or natural gas resources. 

22 ‘‘(E) RENEWABLE ENERGY.—The term 

23 ‘renewable energy’ means solar, wind, ocean, 

24 current, wave, tidal, or geothermal energy. 


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1 ‘‘(F) STATE.—The term ‘State’ means the 

2 State of Alaska. 

3 ‘‘(2) REVENUE SHARING.—Subject to para4 graphs (3), (4), and (5), effective beginning on the 

5 date of enactment of this subsection, the State shall, 

6 without further appropriation or action, receive 37.5 

7 percent of all revenues derived from all rentals, roy8 alties, bonus bids, and other sums due and payable 

9 to the United States from energy development in 

10 any area of the Alaska Adjacent Zone, including 

11 from all sources of renewable energy leased, devel12 oped, or produced in any area in the Alaska Adja13 cent Zone. 

14 ‘‘(3) ALLOCATION AMONG COASTAL POLITICAL

15 SUBDIVISIONS OF THE STATE.— 

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

17 pay 25 percent of any allocable share of the 

18 State, as determined under paragraph (2), di19 rectly to coastal political subdivisions. 

20 ‘‘(B) ALLOCATION.— 

21 ‘‘(i) IN GENERAL.—For each leased 

22 tract used to calculate the allocation of the 

23 State, the Secretary shall pay the coastal 

24 political subdivisions within 300 miles of 

25 the geographical center of the leased tract 


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1 based on the relative distance of the coast2 al political subdivisions from the leased 

3 tract in accordance with this subpara4 graph. 

5 ‘‘(ii) DISTANCES.—For each coastal 

6 political subdivision, the Secretary shall de7 termine the distance between the point on 

8 the coastal political subdivision coastline 

9 closest to the geographical center of the 

10 leased tract and the geographical center of 

11 the tract. 

12 ‘‘(iii) PAYMENTS.—The Secretary 

13 shall divide and allocate the qualified outer 

14 Continental Shelf revenues derived from 

15 the leased tract among coastal political 

16 subdivisions in amounts that are inversely 

17 proportional to the applicable distances de18 termined under clause (ii). 

19 ‘‘(4) ALLOCATION AMONG REGIONAL CORPORA20 TIONS.— 

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

22 pay 25 percent of any allocable share of the 

23 State, as determined under this subsection, di24 rectly to certain Regional Corporations estabVerDate Mar 15 2010 03:06 Feb 08, 2013 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S199.IS S199

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1 lished under section 7(a) of the Alaska Native 

2 Claims Settlement Act (43 U.S.C. 1606(a)). 

3 ‘‘(B) ALLOCATION.— 

4 ‘‘(i) IN GENERAL.—For each leased 

5 tract used to calculate the allocation of the 

6 State, the Secretary shall pay the Regional 

7 Corporations, after determining those Na8 tive villages within the region of the Re9 gional Corporation which are within 300 

10 miles of the geographical center of the 

11 leased tract based on the relative distance 

12 of such villages from the leased tract, in 

13 accordance with this paragraph. 

14 ‘‘(ii) DISTANCES.—For each such vil15 lage, the Secretary shall determine the dis16 tance between the point in the village clos17 est to the geographical center of the leased 

18 tract and the geographical center of the 

19 tract. 

20 ‘‘(iii) PAYMENTS.—The Secretary 

21 shall divide and allocate the qualified outer 

22 Continental Shelf revenues derived from 

23 the leased tract among the qualifying Re24 gional Corporations in amounts that are 

25 inversely proportional to the distances of 


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1 all of the Native villages within each quali2 fying region. 

3 ‘‘(iv) REVENUES.—All revenues re4 ceived by each Regional Corporation under 

5 clause (iii) shall be— 

6 ‘‘(I) treated by the Regional Cor7 poration as revenue subject to the dis8 tribution requirements of section 

9 7(i)(1)(A) of the Alaska Native 

10 Claims Settlement Act (43 U.S.C. 

11 1606(i)(1)(A)); and 

12 ‘‘(II) divided annually by the Re13 gional Corporation among all 12 Re14 gional Corporations in accordance 

15 with section 7(i) of that Act. 

16 ‘‘(v) FURTHER DISTRIBUTION TO VIL17 LAGE CORPORATIONS.—A Regional Cor18 poration receiving revenues under clause 

19 (iii) or (iv)(II) shall further distribute 50 

20 percent of the revenues received to the Vil21 lage Corporations in the region and the 

22 class of stockholders who are not residents 

23 of those villages in accordance with section 

24 7(j) of that Act (43 U.S.C. 1606(j)). 

25 ‘‘(5) ALLOCATION AMONG INDIAN TRIBES.— 


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

2 pay 10 percent of any allocable share of the 

3 State, as determined under this subsection, di4 rectly to Indian tribes. 

5 ‘‘(B) ALLOCATION.— 

6 ‘‘(i) IN GENERAL.—For each leased 

7 tract used to calculate the allocation of the 

8 State, the Secretary shall pay Indian tribes 

9 based on the relative distance of the head10 quarters of the Indian tribes from the 

11 leased tract, in accordance with this sub12 paragraph. 

13 ‘‘(ii) DISTANCES.—For each Indian 

14 tribe, the Secretary shall determine the 

15 distance between the location of the head16 quarters of the Indian tribe and the geo17 graphical center of the tract. 

18 ‘‘(iii) PAYMENTS.—The Secretary 

19 shall divide and allocate the qualified outer 

20 Continental Shelf revenues derived from 

21 the leased tract among the Indian tribes in 

22 amounts that are inversely proportional to 

23 the distances described in clause (ii). 

24 ‘‘(6) CONSERVATION ROYALTY.—After making 

25 distributions under paragraph (2) and section 31, 


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1 the Secretary shall, without further appropriation or 

2 action, distribute a conservation royalty equal to 15 

3 percent of Federal royalty revenues derived from an 

4 area leased under this subsection from all areas 

5 leased under this subsection for any year, into the 

6 land and water conservation fund established under 

7 section 2 of the Land and Water Conservation Fund 

8 Act of 1965 (16 U.S.C. 460l–5) to provide financial 

9 assistance to States under section 6 of that Act (16 

10 U.S.C. 460l–8). 

11 ‘‘(7) DEFICIT REDUCTION.—After making dis12 tributions in accordance with paragraph (2) and in 

13 accordance with section 31, the Secretary shall, 

14 without further appropriation or action, distribute 

15 an amount equal to 7.5 percent of Federal royalty 

16 revenues derived from an area leased under this sub17 section from all areas leased under this subsection 

18 for any year, into direct Federal deficit reduction.’’. 

19 SEC. 4. IMPOSITION OF EXCISE TAX ON BITUMEN TRANS20 PORTED INTO THE UNITED STATES. 

21 (a) IN GENERAL.—Subsection (a) of section 4612 of 

22 the Internal Revenue Code of 1986 is amended— 

23 (1) in paragraph (1), by striking ‘‘and natural 

24 gasoline’’ and inserting ‘‘, natural gasoline, and bitu25 men’’, and 


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1 (2) by inserting at the end the following new 

2 paragraph: 

3 ‘‘(10) BITUMEN.—The term ‘bitumen’ includes 

4 diluted bitumen, bituminous mixtures, or any oil 

5 manufactured from bitumen or a bituminous mix6 ture.’’. 

7 (b) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to oil and petroleum products re9 ceived or entered after December 31, 2013. 

Æ 


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