I 

111TH CONGRESS 

1ST SESSION H. R. 1108 

To provide for State enhanced authority for coastal and ocean resources, 

expansion of America’s supply of natural gas and oil, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 23, 2009 

Mr. SCALISE introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committees on Ways 

and Means, Armed Services, and Energy and Commerce, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To provide for State enhanced authority for coastal and 

ocean resources, expansion of America’s supply of natural gas and oil, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Grow American Supply Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title. 


rfrederick on PROD1PC67 with BILLS
2 

•HR 1108 IH

Sec. 2. Policy. 

Sec. 3. Definitions under the Outer Continental Shelf Lands Act. 

Sec. 4. Determination of Adjacent Zones and Planning Areas. 

Sec. 5. Administration of leasing. 

Sec. 6. Grant of leases by Secretary. 

Sec. 7. Disposition of receipts. 

Sec. 8. Review of outer Continental Shelf exploration plans. 

Sec. 9. Reservation of lands and rights. 

Sec. 10. Outer Continental Shelf leasing program. 

Sec. 11. Coordination with Adjacent States. 

Sec. 12. Environmental studies. 

Sec. 13. Review of outer Continental Shelf development and production plans. 

Sec. 14. Termination of effect of laws prohibiting the spending of appropriated 

funds for certain purposes. 

Sec. 15. Outer Continental Shelf incompatible use. 

Sec. 16. Repurchase of certain leases. 

Sec. 17. Offsite environmental mitigation. 

Sec. 18. Regulation of onshore surface-disturbing activities. 

Sec. 19. Authority to use decommissioned offshore oil and gas platforms and 

other facilities for artificial reef, scientific research, or other 

uses. 

Sec. 20. OCS regional headquarters. 

Sec. 21. Oil shale and tar sands amendments. 

Sec. 22. Buy and build American. 

Sec. 23. Repeal of the Gulf of Mexico Energy Security Act of 2006. 

Sec. 24. Royalty-in-kind. 

Sec. 25. Mandatory issuance of regulations promoting production of natural gas 

from gas hydrates. 

Sec. 26. Mandatory issuance of regulations promoting enhanced oil and natural 

gas production through carbon dioxide injection. 

Sec. 27. Minimum rental rates for future oil, gas, and coal Federal leases. 

Sec. 28. Outer Continental Shelf discharges and emissions. 

Sec. 29. Onshore oil and gas royalties. 

Sec. 30. OCS joint permitting offices. 

1 SEC. 2. POLICY. 

2 It is the policy of the United States that— 

3 (1) the United States is blessed with abundant 

4 energy resources on the outer Continental Shelf and 

5 has developed a comprehensive framework of envi6 ronmental laws and regulations and fostered the de7 velopment of state-of-the-art technology that allows 

8 for the responsible development of these resources 

9 for the benefit of its citizenry; 


rfrederick on PROD1PC67 with BILLS
3 

•HR 1108 IH

1 (2) adjacent States are required by the cir2 cumstances to commit significant resources in sup3 port of exploration, development, and production ac4 tivities for mineral resources on the outer Conti5 nental Shelf, and it is fair and proper for a portion 

6 of the receipts from such activities to be shared with 

7 Adjacent States and their local coastal governments; 

8 (3) the existing laws governing the leasing and 

9 production of the mineral resources of the outer 

10 Continental Shelf have reduced the production of 

11 mineral resources, have preempted Adjacent States 

12 from being sufficiently involved in the decisions re13 garding the allowance of mineral resource develop14 ment, and have been harmful to the national inter15 est; 

16 (4) the national interest is served by granting 

17 the Adjacent States more options related to whether 

18 or not mineral leasing should occur in the outer 

19 Continental Shelf within their Adjacent Zones; 

20 (5) it is not reasonably foreseeable that explo21 ration of a leased tract located more than 25 miles 

22 seaward of the coastline, development and produc23 tion of a natural gas discovery located more than 25 

24 miles seaward of the coastline, or development and 

25 production of an oil discovery located more than 50 


rfrederick on PROD1PC67 with BILLS
4 

•HR 1108 IH

1 miles seaward of the coastline will adversely affect 

2 resources near the coastline; 

3 (6) transportation of oil from a leased tract 

4 might reasonably be foreseen, under limited cir5 cumstances, to have the potential to adversely affect 

6 resources near the coastline if the oil is within 50 

7 miles of the coastline, but such potential to adversely 

8 affect such resources is likely no greater, and prob9 ably less, than the potential impacts from tanker 

10 transportation because tanker spills usually involve 

11 large releases of oil over a brief period of time; and 

12 (7) among other bodies of inland waters, the 

13 Great Lakes, Long Island Sound, Delaware Bay, 

14 Chesapeake Bay, Albemarle Sound, San Francisco 

15 Bay, and Puget Sound are not part of the outer 

16 Continental Shelf, and are not subject to leasing by 

17 the Federal Government for the exploration, develop18 ment, and production of any mineral resources that 

19 might lie beneath them. 

20 SEC. 3. DEFINITIONS UNDER THE OUTER CONTINENTAL 

21 SHELF LANDS ACT. 

22 Section 2 of the Outer Continental Shelf Lands Act 

23 (43 U.S.C. 1331) is amended— 

24 (1) by amending subsection (f) to read as fol25 lows: 


rfrederick on PROD1PC67 with BILLS
5 

•HR 1108 IH

1 ‘‘(f) The term ‘affected State’ means the Adjacent 

2 State.’’; 

3 (2) by striking the semicolon at the end of each 

4 of subsections (a) through (o) and inserting a pe5 riod; 

6 (3) by striking ‘‘; and’’ at the end of subsection 

7 (p) and inserting a period; 

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

9 ‘‘(r) The term ‘Adjacent State’ means, with respect 

10 to any program, plan, lease sale, leased tract or other ac11 tivity, proposed, conducted, or approved pursuant to the 

12 provisions of this Act, any State the laws of which are 

13 declared, pursuant to section 4(a)(2), to be the law of the 

14 United States for the portion of the outer Continental 

15 Shelf on which such program, plan, lease sale, leased tract 

16 or activity appertains or is, or is proposed to be, con17 ducted. For purposes of this Act, the term ‘State’ includes 

18 all States having a coastline contiguous to the Arctic, At19 lantic, and Pacific Oceans and the Gulf of Mexico, the 

20 Commonwealth of Puerto Rico, the Commonwealth of the 

21 Northern Mariana Islands, the Virgin Islands, American 

22 Samoa, Guam, the other Territories of the United States, 

23 and the District of Columbia. 

24 ‘‘(s) The term ‘Adjacent Zone’ means, with respect 

25 to any program, plan, lease sale, leased tract, or other acVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
6 

•HR 1108 IH

1 tivity, proposed, conducted, or approved pursuant to the 

2 provisions of this Act, the portion of the outer Continental 

3 Shelf for which the laws of a particular Adjacent State 

4 are declared, pursuant to section 4(a)(2), to be the law 

5 of the United States. 

6 ‘‘(t) The term ‘miles’ means statute miles. 

7 ‘‘(u) The term ‘coastline’ has the same meaning as 

8 the term ‘coast line’ as defined in section 2(c) of the Sub9 merged Lands Act (43 U.S.C. 1301(c)). 

10 ‘‘(v) The term ‘Neighboring State’ means a coastal 

11 State having a common boundary at the coastline with the 

12 Adjacent State.’’; and 

13 (5) in subsection (a), by inserting after ‘‘con14 trol’’ the following: ‘‘or lying within the United 

15 States’ Exclusive Economic Zone and outer Conti16 nental Shelf adjacent to the Commonwealth of Puer17 to Rico, the Commonwealth of the Northern Mar18 iana Islands, the Virgin Islands, American Samoa, 

19 Guam, and the other Territories of the United 

20 States’’. 

21 SEC. 4. DETERMINATION OF ADJACENT ZONES AND PLAN22 NING AREAS. 

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

24 Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 

25 first sentence by striking ‘‘, and the President’’ and all 


rfrederick on PROD1PC67 with BILLS
7 

•HR 1108 IH

1 that follows through the end of the sentence and inserting 

2 the following: ‘‘. The lines extending seaward and defining 

3 each State’s Adjacent Zone, and each OCS Planning Area, 

4 are as indicated on the maps for each outer Continental 

5 Shelf region entitled ‘Alaska OCS Region State Adjacent 

6 Zone and OCS Planning Areas’, ‘Pacific OCS Region 

7 State Adjacent Zones and OCS Planning Areas’, ‘Gulf of 

8 Mexico OCS Region State Adjacent Zones and OCS Plan9 ning Areas’, and ‘Atlantic OCS Region State Adjacent 

10 Zones and OCS Planning Areas’, all of which are dated 

11 September 2005 and on file in the Office of the Director, 

12 Minerals Management Service. The Secretary shall des13 ignate the Adjacent Zones of States, and additional OCS 

14 Planning Areas, for parts of the United States’ Exclusive 

15 Economic Zone and outer Continental Shelf not covered 

16 by the referenced maps.’’. 

17 SEC. 5. ADMINISTRATION OF LEASING. 

18 Section 5 of the Outer Continental Shelf Lands Act 

19 (43 U.S.C. 1334) is amended by adding at the end the 

20 following: 

21 ‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A

22 LEASE.—Any lessee of a producing lease may relinquish 

23 to the Secretary any portion of a lease that the lessee has 

24 no interest in producing and that the Secretary finds is 

25 geologically prospective. In return for any such relinquishVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
8 

•HR 1108 IH

1 ment, the Secretary shall provide to the lessee a royalty 

2 incentive for the portion of the lease retained by the lessee, 

3 in accordance with regulations promulgated by the Sec4 retary to carry out this subsection. The Secretary shall 

5 publish final regulations implementing this subsection 

6 within 365 days after the date of enactment of the Grow 

7 American Supply Act. 

8 ‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 

9 than July 1, 2010, the Secretary shall publish a final regu10 lation that shall— 

11 ‘‘(1) establish procedures for entering into nat12 ural gas leases; 

13 ‘‘(2) ensure that natural gas leases are only 

14 available for tracts on the outer Continental Shelf 

15 that are wholly within 75 miles of the coastline with16 in an area withdrawn from disposition by leasing on 

17 the day after the date of enactment of the Grow 

18 American Supply Act; 

19 ‘‘(3) provide that natural gas leases shall con20 tain the same rights and obligations established for 

21 oil and gas leases, except as otherwise provided in 

22 the Grow American Supply Act; 

23 ‘‘(4) provide that, in reviewing the adequacy of 

24 bids for natural gas leases, the value of any crude 


rfrederick on PROD1PC67 with BILLS
9 

•HR 1108 IH

1 oil estimated to be contained within any tract shall 

2 be excluded; 

3 ‘‘(5) provide that any crude oil produced from 

4 a well and reinjected into the leased tract shall not 

5 be subject to payment of royalty, and that the Sec6 retary shall consider, in setting the royalty rates for 

7 a natural gas lease, the additional cost to the lessee 

8 of not producing any crude oil; and 

9 ‘‘(6) provide that any Federal law that applies 

10 to an oil and gas lease on the outer Continental 

11 Shelf shall apply to a natural gas lease unless other12 wise clearly inapplicable.’’. 

13 SEC. 6. GRANT OF LEASES BY SECRETARY. 

14 Section 8 of the Outer Continental Shelf Lands Act 

15 (43 U.S.C. 1337) is amended— 

16 (1) in subsection (a)(1) by inserting after the 

17 first sentence the following: ‘‘Further, the Secretary 

18 may grant natural gas leases in a manner similar to 

19 the granting of oil and gas leases and under the var20 ious bidding systems available for oil and gas 

21 leases.’’; 

(2) in subsection (a)(1) by striking ‘‘121 22 ⁄2 per 

centum’’ in each occurrence and inserting ‘‘162 23 ⁄3 per 

24 centum’’ for each; 


rfrederick on PROD1PC67 with BILLS
10 

•HR 1108 IH

1 (3) in subsection (a)(1) by redesignating sub2 paragraph (I) as subparagraph (J), and inserting 

3 the following new subparagraph (I): 

4 ‘‘(I) cash bonus bid with royalty fixed by 

the Secretary at 183 5 ⁄4 per centum in the 

6 amount or value of production saved, removed, 

7 or sold, subject to the following adjustments: 

8 ‘‘(i) if the arithmetic average of the 

9 closing prices on the New York Mercantile 

10 Exchange for light sweet crude oil, or a 

11 similar index as determined by the Sec12 retary, for the 365 days prior to issuance 

13 of the final notice of lease sale exceeded 

14 $150.00 per barrel (in January 1, 2008, 

15 dollars), the royalty rate shall be fixed by 

16 the Secretary at 20 per centum in the 

17 amount or value of production, removed, or 

18 sold; 

19 ‘‘(ii) if the arithmetic average of the 

20 closing prices on the New York Mercantile 

21 Exchange for light sweet crude oil, or a 

22 similar index as determined by the Sec23 retary, for the 365 days prior to issuance 

24 of the final notice of lease sale was less 

25 than $75.00 per barrel (in January 1, 


rfrederick on PROD1PC67 with BILLS
11 

•HR 1108 IH

1 2008, dollars), the royalty rate shall be 

fixed by the Secretary at 171 2 ⁄2 per centum 

3 in the amount or value of production, re4 moved, or sold; 

5 ‘‘(iii) the royalty rate fixed in the 

6 lease shall be reduced up to 4 per centum 

7 as follows: 

8 ‘‘(I) 100 per centum of this 

9 amount if the first production well is 

10 spudded within 3 years after issuance 

11 of the lease, 

12 ‘‘(II) 75 per centum of this 

13 amount if the first production well is 

14 spudded between 3 and 4 years after 

15 issuance of the lease, 

16 ‘‘(III) 50 per centum of this 

17 amount if the first production well is 

18 spudded between 4 and 5 years after 

19 issuance of the lease, and 

20 ‘‘(IV) 25 per centum of this 

21 amount if the first production well is 

22 spudded between 5 and 6 years after 

23 issuance of the lease.’’; 

24 (4) in subsection (a) by adding the following: 


rfrederick on PROD1PC67 with BILLS
12 

•HR 1108 IH

1 ‘‘(9) The Secretary shall use only the bidding 

2 system provided for in paragraph (1)(I) of this sub3 section for all lease sales conducted from January 1, 

4 2010, through January 1, 2020. However, the Sec5 retary may reduce the royalty rate fixed under that 

6 bidding system by up to 2 per centum for tracts lo7 cated in frontier areas, as determined by the Sec8 retary, if the Secretary finds that the royalty rate 

9 otherwise fixed by the bidding system would likely 

10 significantly reduce production resulting from use of 

11 such bidding system in frontier areas. 

12 ‘‘(10) The royalty rate for leases in effect on 

January 1, 2010, having a royalty rate of 183 13 ⁄4 per 

14 centum, that have not spudded the first production 

15 well prior to July 1, 2009, shall be reduced up to 

16 4 per centum as follows: 

17 ‘‘(A) 100 per centum of this amount if the 

18 first production well is spudded within 3 years 

19 after issuance of the lease, 

20 ‘‘(B) 75 per centum of this amount if the 

21 first production well is spudded between 3 and 

22 4 years after issuance of the lease, 

23 ‘‘(C) 50 per centum of this amount if the 

24 first production well is spudded between 4 and 

25 5 years after issuance of the lease, and 


rfrederick on PROD1PC67 with BILLS
13 

•HR 1108 IH

1 ‘‘(D) 25 per centum of this amount if the 

2 first production well is spudded between 5 and 

3 6 years after issuance of the lease. 

4 ‘‘(11) The royalty rate for leases in effect on 

5 January 1, 2010, having a royalty rate of less than 

183 6 ⁄4 per centum, that have not spudded the first 

7 production well prior to July 1, 2009, shall be re8 duced by up to 2 per centum as follows: 

9 ‘‘(A) 100 per centum of this amount if the 

10 first production well is spudded within 3 years 

11 after issuance of the lease, 

12 ‘‘(B) 75 per centum of this amount if the 

13 first production well is spudded between 3 and 

14 4 years after issuance of the lease, 

15 ‘‘(C) 50 per centum of this amount if the 

16 first production well is spudded between 4 and 

17 5 years after issuance of the lease, and 

18 ‘‘(D) 25 per centum of this amount if the 

19 first production well is spudded between 5 and 

20 6 years after issuance of the lease.’’; 

21 (5) by adding at the end of subsection (b) the 

22 following: ‘‘The Secretary may issue more than one 

23 lease for a given tract if each lease applies to a sepa24 rate and distinct range of vertical depths, horizontal 

25 surface area, or a combination of the two. The SecVerDate Nov 24 2008 22:43 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
14 

•HR 1108 IH

1 retary may issue regulations that the Secretary de2 termines are necessary to manage such leases con3 sistent with the purposes of this Act.’’; 

4 (6) by amending subsection (p)(2)(B) to read 

5 as follows: 

6 ‘‘(B) The Secretary shall provide for the 

7 payment to coastal States, and their local coast8 al governments, of 50 percent of Federal re9 ceipts from projects authorized under this sec10 tion located within the area extending seaward 

11 of State submerged lands. Payments shall be 

12 based on a formula established by the Secretary 

13 by rulemaking no later than 180 days after the 

14 date of enactment of the that provides for equi15 table distribution, based on proximity to the 

16 project, among coastal States that have a coast17 line that is located within 200 miles of the geo18 graphic center of the project.’’; and 

19 (7) by adding at the end the following: 

20 ‘‘(q) NATURAL GAS LEASES.— 

21 ‘‘(1) RIGHT TO PRODUCE NATURAL GAS.—A 

22 lessee of a natural gas lease shall have the right to 

23 produce the natural gas from a field on a natural 

24 gas leased tract if the Secretary estimates that the 

25 discovered field has at least 40 percent of the ecoVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
15 

•HR 1108 IH

1 nomically recoverable Btu content of the field con2 tained within natural gas and such natural gas is ec3 onomical to produce. 

4 ‘‘(2) CRUDE OIL.—A lessee of a natural gas 

5 lease may not produce crude oil from the lease un6 less the Governor of the Adjacent State agrees to 

7 such production. 

8 ‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec9 retary shall make estimates of the natural gas Btu 

10 content of discovered fields on a natural gas lease 

11 only after the completion of at least one exploration 

12 well, the data from which has been tied to the re13 sults of a three-dimensional seismic survey of the 

14 field. The Secretary may not require the lessee to 

15 further delineate any discovered field prior to mak16 ing such estimates. 

17 ‘‘(4) DEFINITION OF NATURAL GAS.—For pur18 poses of a natural gas lease, natural gas means nat19 ural gas and all substances produced in association 

20 with gas, including, but not limited to, hydrocarbon 

21 liquids (other than crude oil) that are obtained by 

22 the condensation of hydrocarbon vapors and sepa23 rate out in liquid form from the produced gas 

24 stream. 


rfrederick on PROD1PC67 with BILLS
16 

•HR 1108 IH

1 ‘‘(r) REMOVAL OF RESTRICTIONS ON JOINT BIDDING

2 IN CERTAIN AREAS OF THE OUTER CONTINENTAL

3 SHELF.—Restrictions on joint bidders shall no longer 

4 apply to tracts determined to be ‘frontier tracts’ or other5 wise ‘high cost tracts’ under final regulations that shall 

6 be published by the Secretary by not later than 365 days 

7 after the date of enactment of the Grow American Supply 

8 Act. 

9 ‘‘(s) ROYALTY SUSPENSION PROVISIONS.—The Sec10 retary shall agree to a request by any lessee to amend 

11 any lease issued for Central and Western Gulf of Mexico 

12 tracts during the period of December 1, 1995, through 

13 December 31, 2000, to incorporate price thresholds appli14 cable to royalty suspension provisions, or amend existing 

15 price thresholds, in the amount of $40.50 per barrel (Jan16 uary 1, 2008, dollars) for oil and for natural gas of $6.75 

17 per million Btu (January 1, 2008, dollars). Any royalties 

18 paid because of such new or revised price thresholds shall 

19 be treated as offsetting receipts. Any royalties paid under 

20 lease price thresholds agreed to after the date of enact21 ment of the Grow American Supply Act shall be subject 

22 to immediate receipts sharing under section 9, and the 

23 balance not shared under that section shall be transferred 

24 by the Secretary of the Interior to the Treasury. 


rfrederick on PROD1PC67 with BILLS
17 

•HR 1108 IH

1 ‘‘(t) MANDATORY PRICE THRESHOLDS FOR ROYALTY

2 SUSPENSION VOLUMES.—After the date of enactment of 

3 the Grow American Supply Act, price thresholds shall 

4 apply to any royalty suspension volumes granted by the 

5 Secretary. Unless otherwise set by the Secretary by regu6 lation or for a particular lease sale within the final notice 

7 of sale, the price thresholds shall be $40.50 for oil (Janu8 ary 1, 2008, dollars) and $6.75 for natural gas (January 

9 1, 2008, dollars).’’. 

10 SEC. 7. DISPOSITION OF RECEIPTS. 

11 (a) AMENDMENT OF OUTER CONTINENTAL SHELF

12 LANDS ACT.—Section 9 of the Outer Continental Shelf 

13 Lands Act (43 U.S.C. 1338) is amended as follows: 

14 (1) By designating the existing text as sub15 section (a). 

16 (2) In subsection (a) (as so designated) by in17 serting ‘‘, if not paid as otherwise provided in this 

18 title’’ after ‘‘receipts’’. 

19 (3) by adding the following: 

20 ‘‘(b) TREATMENT OF OCS RECEIPTS.— 

21 ‘‘(1) DEPOSIT.—The Secretary shall deposit 

22 into a separate account in the Treasury the portion 

23 of OCS Receipts for each fiscal year that will be 

24 shared under paragraph (2). 


rfrederick on PROD1PC67 with BILLS
18 

•HR 1108 IH

1 ‘‘(2) IMMEDIATE RECEIPTS SHARING.—Begin2 ning October 1, 2009, the Secretary shall share 50 

3 percent of OCS Receipts derived from all leases, ex4 cept that the Secretary shall only share 25 percent 

5 of such OCS Receipts derived from all such leases 

6 within a State’s Adjacent Zone if leasing is not al7 lowed within at least 25 percent of that State’s Ad8 jacent Zone located completely within 75 miles of 

9 any coastline. 

10 ‘‘(3) ALLOCATIONS.—The Secretary shall allo11 cate the OCS Receipts deposited into the separate 

12 account established by paragraph (1) that are 

13 shared under paragraph (2) as follows: 

14 ‘‘(A) BONUS BIDS.—Deposits derived from 

15 bonus bids from a leased tract, including inter16 est thereon, shall be allocated at the end of 

17 each fiscal year to the Adjacent State. 

18 ‘‘(B) ROYALTIES.—Deposits derived from 

19 royalties and net profit shares from a leased 

20 tract, including interest thereon, shall be allo21 cated at the end of each fiscal year as follows: 

22 ‘‘(i) 50 percent to the Adjacent State. 

23 ‘‘(ii) 50 percent to all States, includ24 ing the Adjacent State, having a coastline 

25 point within 300 miles of the leased tract, 


rfrederick on PROD1PC67 with BILLS
19 

•HR 1108 IH

1 divided equally, if such State allows leasing 

2 within at least 25 percent of its Adjacent 

3 Zone within 75 miles of the coastline. 

4 ‘‘(C) LIMITATION IF NOT ADMITTED TO

5 THE UNION AS A STATE.—Any entity defined as 

6 a ‘State’ under section 2(r), that has not been 

7 admitted to the Union as a State shall only be 

8 entitled to one-half of a ‘State’ share under this 

9 paragraph. 

10 ‘‘(c) TRANSMISSION OF ALLOCATIONS.— 

11 ‘‘(1) IN GENERAL.—Not later than 90 days 

12 after the end of each fiscal year, the Secretary shall 

13 transmit— 

14 ‘‘(A) to each State 60 percent of such 

15 State’s allocations under subsections (b)(2), 

16 (b)(3)(A), and (b)(3)(B)(i) and (ii) for the im17 mediate prior fiscal year; and 

18 ‘‘(B) to each coastal county-equivalent and 

19 municipal political subdivisions of such State a 

20 total of 40 percent of such State’s allocations 

21 under subsections (b)(2), (b)(3)(A), and 

22 (b)(3)(B)(i) and (ii), for the immediate prior 

23 fiscal year, together with all accrued interest 

24 thereon. 


rfrederick on PROD1PC67 with BILLS
20 

•HR 1108 IH

1 ‘‘(2) ALLOCATIONS TO COASTAL COUNTY2 EQUIVALENT POLITICAL SUBDIVISIONS.—The Sec3 retary shall make an initial allocation of the OCS 

4 Receipts to be shared under paragraph (1)(B) as fol5 lows: 

6 ‘‘(A) 25 percent shall be allocated to coast7 al county-equivalent political subdivisions that 

8 are completely more than 25 miles landward of 

9 the coastline and at least a part of which lies 

10 not more than 75 miles landward from the 

11 coastline, with the allocation among such coast12 al county-equivalent political subdivisions based 

13 on population. 

14 ‘‘(B) 75 percent shall be allocated to coast15 al county-equivalent political subdivisions that 

16 are completely or partially less than 25 miles 

17 landward of the coastline, with the allocation 

18 among such coastal county-equivalent political 

19 subdivisions to be further allocated as follows: 

20 ‘‘(i) 25 percent shall be allocated 

21 based on the ratio of such coastal county22 equivalent political subdivision’s population 

23 to the coastal population of all coastal 

24 county-equivalent political subdivisions in 

25 the State. 


rfrederick on PROD1PC67 with BILLS
21 

•HR 1108 IH

1 ‘‘(ii) 25 percent shall be allocated 

2 based on the ratio of such coastal county3 equivalent political subdivision’s coastline 

4 miles to the coastline miles of all coastal 

5 county-equivalent political subdivisions in 

6 the State as calculated by the Secretary. 

7 In such calculations, coastal county-equiva8 lent political subdivisions without a coast9 line shall be considered to have 50 percent 

10 of the average coastline miles of the coast11 al county-equivalent political subdivisions 

12 that do have coastlines. 

13 ‘‘(iii) 50 percent shall be allocated 

14 equally to all coastal county-equivalent po15 litical subdivisions having a coastline point 

16 within 300 miles of the leased tract for 

17 which OCS Receipts are being shared. 

18 ‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO19 LITICAL SUBDIVISIONS.—The initial allocation to 

20 each coastal county-equivalent political subdivision 

21 under paragraph (2) shall be further allocated to the 

22 coastal county-equivalent political subdivision and 

23 any coastal municipal political subdivisions located 

24 partially or wholly within the boundaries of the 


rfrederick on PROD1PC67 with BILLS
22 

•HR 1108 IH

1 coastal county-equivalent political subdivision as fol2 lows: 

3 ‘‘(A) One-third shall be allocated to the 

4 coastal county-equivalent political subdivision. 

5 ‘‘(B) Two-thirds shall be allocated on a per 

6 capita basis to the municipal political subdivi7 sions and the county-equivalent political sub8 division, with the allocation to the latter based 

9 upon its population not included within the 

10 boundaries of a municipal political subdivision. 

11 ‘‘(d) INVESTMENT OF DEPOSITS.—Amounts depos12 ited under this section shall be invested by the Secretary 

13 of the Treasury in securities backed by the full faith and 

14 credit of the United States having maturities suitable to 

15 the needs of the account in which they are deposited and 

16 yielding the highest reasonably available interest rates as 

17 determined by the Secretary of the Treasury. 

18 ‘‘(e) USE OF FUNDS.—A recipient of funds under 

19 this section may use the funds for one or more of the fol20 lowing: 

21 ‘‘(1) To reduce in-State college tuition at public 

22 institutions of higher learning and otherwise support 

23 public education, including career technical edu24 cation. 


rfrederick on PROD1PC67 with BILLS
23 

•HR 1108 IH

1 ‘‘(2) To make transportation infrastructure im2 provements. 

3 ‘‘(3) To reduce taxes. 

4 ‘‘(4) To promote, fund, and provide for— 

5 ‘‘(A) coastal or environmental restoration; 

6 ‘‘(B) fish, wildlife, and marine life habitat 

7 enhancement; 

8 ‘‘(C) waterways construction and mainte9 nance; 

10 ‘‘(D) levee construction and maintenance 

11 and shore protection; and 

12 ‘‘(E) marine and oceanographic education 

13 and research. 

14 ‘‘(5) To promote, fund, and provide for— 

15 ‘‘(A) infrastructure associated with energy 

16 production activities conducted on the outer 

17 Continental Shelf; 

18 ‘‘(B) energy demonstration projects; 

19 ‘‘(C) supporting infrastructure for shore20 based energy projects; 

21 ‘‘(D) State geologic programs, including 

22 geologic mapping and data storage programs, 

23 and State geophysical data acquisition; 

24 ‘‘(E) State seismic monitoring programs, 

25 including operation of monitoring stations; 


rfrederick on PROD1PC67 with BILLS
24 

•HR 1108 IH

1 ‘‘(F) development of oil and gas resources 

2 through enhanced recovery techniques; 

3 ‘‘(G) alternative energy development, in4 cluding bio fuels, coal-to-liquids, oil shale, tar 

5 sands, geothermal, geopressure, wind, waves, 

6 currents, hydro, and other renewable energy; 

7 ‘‘(H) energy efficiency and conservation 

8 programs; and 

9 ‘‘(I) front-end engineering and design for 

10 facilities that produce liquid fuels from hydro11 carbons and other biological matter. 

12 ‘‘(6) To promote, fund, and provide for— 

13 ‘‘(A) historic preservation programs and 

14 projects; 

15 ‘‘(B) natural disaster planning and re16 sponse; and 

17 ‘‘(C) hurricane and natural disaster insur18 ance programs. 

19 ‘‘(7) For any other purpose as determined by 

20 State law. 

21 ‘‘(f) NO ACCOUNTING REQUIRED.—No recipient of 

22 funds under this section shall be required to account to 

23 the Federal Government for the expenditure of such 

24 funds, except as otherwise may be required by law. How25 ever, States may enact legislation providing for accounting 


rfrederick on PROD1PC67 with BILLS
25 

•HR 1108 IH

1 for and auditing of such expenditures. Further, funds allo2 cated under this section to States and political subdivi3 sions may be used as matching funds for other Federal 

4 programs. 

5 ‘‘(g) EFFECT OF FUTURE LAWS.—Enactment of any 

6 future Federal statute that has the effect, as determined 

7 by the Secretary, of restricting any Federal agency from 

8 spending appropriated funds, or otherwise preventing it 

9 from fulfilling its pre-existing responsibilities as of the 

10 date of enactment of the statute, unless such responsibil11 ities have been reassigned to another Federal agency by 

12 the statute with no prevention of performance, to issue 

13 any permit or other approval impacting on the OCS oil 

14 and gas leasing program, or any lease issued thereunder, 

15 or to implement any provision of this Act shall automati16 cally prohibit any sharing of OCS Receipts under this sec17 tion directly with the States, and their coastal political 

18 subdivisions, for the duration of the restriction. The Sec19 retary shall make the determination of the existence of 

20 such restricting effects within 30 days of a petition by any 

21 outer Continental Shelf lessee or producing State. 

22 ‘‘(h) USE OF FEDERAL REVENUES FROM CERTAIN

23 NEW LEASES TO REDUCE SOCIAL SECURITY DEBT.— 

24 ‘‘(1) SPECIAL DEDICATED ACCOUNT IN SOCIAL

25 SECURITY TRUST FUND.—25 percent of OCS ReVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
26 

•HR 1108 IH

1 ceipts that are derived from leases under this Act on 

2 tracts that would not have been available for leasing 

3 prior to the enactment of the Grow American Supply 

4 Act and that would otherwise have been deposited in 

5 the General Fund of the Treasury and not allocated 

6 to any other specific use shall be deposited in a Spe7 cial Dedicated Account in the Federal Old-Age and 

8 Survivors Insurance Trust Fund. Notwithstanding 

9 section 201(d) of the Social Security Act, amounts 

10 deposited in the Special Dedicated Account under 

11 this subsection shall be invested by the Secretary of 

12 the Treasury in securities backed by the full faith 

13 and credit of the United States having maturities 

14 suitable to the needs of the account in which they 

15 are deposited and yielding the highest reasonably 

16 available interest rates as determined by the Sec17 retary of the Treasury. 

18 ‘‘(2) EXPENDITURES.—No portion of the prin19 cipal amount of such Special Dedicated Account or 

20 of the accrued interest in such account may be ex21 pended in any fiscal year unless the Secretary of the 

22 Treasury determines that revenues allocated to the 

23 Federal Old-Age and Survivors Insurance Trust 

24 Fund in that fiscal year will be less than expendi25 tures from the Fund in that fiscal year, and in any 


rfrederick on PROD1PC67 with BILLS
27 

•HR 1108 IH

1 such fiscal year the Secretary may transfer such 

2 amounts as may be necessary from the Special Dedi3 cated Account to the general account in the Federal 

4 Old-Age and Survivors Insurance Trust Fund for ex5 penditure in that fiscal year to the extent necessary 

6 to equalize revenues and expenditures from such 

7 Trust Fund in that fiscal year. 

8 ‘‘(i) DEFINITIONS.—In this section: 

9 ‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL

10 SUBDIVISION.—The term ‘coastal county-equivalent 

11 political subdivision’ means a political jurisdiction 

12 immediately below the level of State government, in13 cluding a county, parish, borough in Alaska, inde14 pendent municipality not part of a county, parish, or 

15 borough in Alaska, or other equivalent subdivision of 

16 a coastal State, that lies within the coastal zone. 

17 ‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI18 SION.—The term ‘coastal municipal political subdivi19 sion’ means a municipality located within and part 

20 of a county, parish, borough in Alaska, or other 

21 equivalent subdivision of a State, all or part of which 

22 coastal municipal political subdivision lies within the 

23 coastal zone. 

24 ‘‘(3) COASTAL POPULATION.—The term ‘coastal 

25 population’ means the population of all coastal counVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
28 

•HR 1108 IH

1 ty-equivalent political subdivisions, as determined by 

2 the most recent official data of the Census Bureau. 

3 ‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 

4 means that portion of a coastal State, including the 

5 entire territory of any coastal county-equivalent po6 litical subdivision at least a part of which lies, within 

7 75 miles landward from the coastline, or a greater 

8 distance as determined by State law enacted to im9 plement this section. 

10 ‘‘(5) BONUS BIDS.—The term ‘bonus bids’ 

11 means all funds received by the Secretary to issue 

12 an outer Continental Shelf minerals lease. 

13 ‘‘(6) ROYALTIES.—The term ‘royalties’ means 

14 all funds received by the Secretary from production 

15 of oil or natural gas, or the sale of production taken 

16 in-kind, or from net profit shares, from an outer 

17 Continental Shelf minerals lease. 

18 ‘‘(7) PRODUCING STATE.—The term ‘producing 

19 State’ means an Adjacent State having an Adjacent 

20 Zone containing leased tracts from which OCS Re21 ceipts were derived. 

22 ‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 

23 means bonus bids and royalties, excluding royalties 

24 from leases amended under the authority of section 

25 8(s) of this Act.’’. 


rfrederick on PROD1PC67 with BILLS
29 

•HR 1108 IH

1 (b) AMENDMENT OF INTERNAL REVENUE CODE OF

2 1986.— 

3 (1) IN GENERAL.—Subchapter A of chapter 98 

4 of the Internal Revenue Code of 1986 is amended by 

5 adding at the end the following new section: 

6 ‘‘SEC. 9511. DEFICIT REDUCTION TRUST FUND. 

7 ‘‘(a) CREATION.—There is established in the Treas8 ury of the United States a trust fund to be known as the 

9 ‘Deficit Reduction Trust Fund’, consisting of such 

10 amounts as may be appropriated or credited to the Deficit 

11 Reduction Trust Fund as provided in this section. 

12 ‘‘(b) TRANSFERS.—There are hereby appropriated to 

13 the Deficit Reduction Trust Fund amounts equivalent to 

14 25 percent of all OCS Receipts, as defined in section 

15 9(i)(8) of the Outer Continental Shelf Lands Act (43 

16 U.S.C. 1338), that are derived from leases under that Act 

17 on tracts that would not have been available for leasing 

18 prior to the enactment of the Grow American Supply Act 

19 and that would otherwise have been deposited in the Gen20 eral Fund of the Treasury and not allocated to any other 

21 specific use. 

22 ‘‘(c) EXPENDITURES.—Amounts in the Deficit Re23 duction Trust Fund shall be available as provided in ap24 propriation Acts only for the purpose of reducing the Fed25 eral debt.’’. 


rfrederick on PROD1PC67 with BILLS
30 

•HR 1108 IH

1 (2) CLERICAL AMENDMENT.—The table of sec2 tions at the beginning of such subchapter is amend3 ed by adding at the end the following new item: 

‘‘9511. Deficit Reduction Trust Fund.’’. 

4 SEC. 8. REVIEW OF OUTER CONTINENTAL SHELF EXPLO5 RATION PLANS. 

6 Subsections (c) and (d) of section 11 of the Outer 

7 Continental Shelf Lands Act (43 U.S.C. 1340) are amend8 ed to read as follows: 

9 ‘‘(c) PLAN REVIEW; PLAN PROVISIONS.— 

10 ‘‘(1) Except as otherwise provided in this Act, 

11 prior to commencing exploration pursuant to any oil 

12 and gas lease issued or maintained under this Act, 

13 the holder thereof shall submit an exploration plan 

14 (hereinafter in this section referred to as a ‘plan’) to 

15 the Secretary for review which shall include all infor16 mation and documentation required under para17 graphs (2) and (3). The Secretary shall review the 

18 plan for completeness within 10 days of submission. 

19 If the Secretary finds that the plan is not complete, 

20 the Secretary shall notify the lessee with a detailed 

21 explanation and require such modifications of such 

22 plan as are necessary to achieve completeness. The 

23 Secretary shall have 10 days to review a modified 

24 plan for completeness. Such plan may apply to more 

25 than one lease held by a lessee in any one region of 


rfrederick on PROD1PC67 with BILLS
31 

•HR 1108 IH

1 the outer Continental Shelf, or by a group of lessees 

2 acting under a unitization, pooling, or drilling agree3 ment, and the lessee shall certify that such plan is 

4 consistent with the terms of the lease and is con5 sistent with all statutory and regulatory require6 ments in effect on the date of issuance of the lease, 

7 and any regulations promulgated under this Act to 

8 the conservation of resources after the date of lease 

9 issuances. The Secretary shall have 30 days from 

10 the date the plan is deemed complete to conduct a 

11 review of the plan. If the Secretary finds the plan 

12 is not consistent with the lease and all such statu13 tory and regulatory requirements, the Secretary 

14 shall notify the lessee with a detailed explanation of 

15 such modifications of such plan as are necessary to 

16 achieve compliance. The Secretary shall have 30 

17 days to review any modified plan submitted by the 

18 lessee. The lessee shall not take any action under 

19 the exploration plan within the 30-day review period, 

20 or thereafter until the plan has been modified to 

21 achieve compliance as so notified. 

22 ‘‘(2) An exploration plan submitted under this 

23 subsection shall include, in the degree of detail 

24 which the Secretary may by regulation require— 


rfrederick on PROD1PC67 with BILLS
32 

•HR 1108 IH

1 ‘‘(A) a schedule of anticipated exploration 

2 activities to be undertaken; 

3 ‘‘(B) a description of equipment to be used 

4 for such activities; 

5 ‘‘(C) the general location of each well to be 

6 drilled; and 

7 ‘‘(D) such other information deemed perti8 nent by the Secretary. 

9 ‘‘(3) The Secretary may, by regulation, require 

10 that such plan be accompanied by a general state11 ment of development and production intentions 

12 which shall be for planning purposes only and which 

13 shall not be binding on any party. 

14 ‘‘(d) PLAN REVISIONS; CONDUCT OF EXPLORATION

15 ACTIVITIES.— 

16 ‘‘(1) If a significant revision of an exploration 

17 plan under this subsection is submitted to the Sec18 retary, the process to be used for the review of such 

19 revision shall be the same as set forth in subsection 

20 (c) of this section. 

21 ‘‘(2) All exploration activities pursuant to any 

22 lease shall be conducted in accordance with an explo23 ration plan or a revised plan which has been sub24 mitted to and reviewed by the Secretary.’’. 


rfrederick on PROD1PC67 with BILLS
33 

•HR 1108 IH

1 SEC. 9. RESERVATION OF LANDS AND RIGHTS. 

2 Section 12 of the Outer Continental Shelf Lands Act 

3 (43 U.S.C. 1341) is amended— 

4 (1) in subsection (a) by adding at the end the 

5 following: ‘‘The President may partially or com6 pletely revise or revoke any prior withdrawal made 

7 by the President under the authority of this section. 

8 The President may not revise or revoke a withdrawal 

9 that is extended by a State under subsection (h), nor 

10 may the President withdraw from leasing any area 

11 for which a State failed to prohibit, or petition to 

12 prohibit, leasing under subsection (g). Further, in 

13 the area of the outer Continental Shelf more than 

14 75 miles from any coastline, not more than 25 per15 cent of the acreage of any OCS Planning Area may 

16 be withdrawn from leasing under this section at any 

17 point in time. A withdrawal by the President may be 

18 for a term not to exceed 5 years. Except when other19 wise provided by law, when considering potential 

20 uses of the outer Continental Shelf, to the maximum 

21 extent possible, the President shall accommodate 

22 competing interests and potential uses.’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN

25 AREAS OF THE OUTER CONTINENTAL SHELF.— 

26 ‘‘(1) PROHIBITION AGAINST LEASING.— 


rfrederick on PROD1PC67 with BILLS
34 

•HR 1108 IH

1 ‘‘(A) UNAVAILABLE FOR LEASING WITH2 OUT STATE REQUEST.—Except as otherwise 

3 provided in this subsection, from and after the 

4 date of enactment of the Grow American Sup5 ply Act, the Secretary shall not offer for leasing 

6 for oil and gas, or natural gas, any area within 

7 35 miles of the coastline that was withdrawn 

8 from disposition by leasing in the Atlantic OCS 

9 Region or the Pacific OCS Region, or the Gulf 

10 of Mexico OCS Region Eastern Planning Area, 

11 as depicted on the maps referred to in this sub12 paragraph, under the ‘Memorandum on With13 drawal of Certain Areas of the United States 

14 Outer Continental Shelf from Leasing Disposi15 tion’, 34 Weekly Comp. Pres. Doc. 1111, dated 

16 June 12, 1998, or any area within 35 miles of 

17 the coastline not withdrawn from leasing under 

18 that Memorandum that is included within the 

19 territorial waters and Exclusive Economic Zone 

20 adjacent to the Commonwealth of Puerto Rico, 

21 the Commonwealth of the Northern Mariana Is22 lands, the Virgin Islands, American Samoa, 

23 Guam, and the other Territories of the United 

24 States, or any area within 35 miles of the 

25 coastline within the Florida Straits Planning 


rfrederick on PROD1PC67 with BILLS
35 

•HR 1108 IH

1 Area as indicated on the map entitled ‘Atlantic 

2 OCS Region State Adjacent Zones and OCS 

3 Planning Areas’, which is dated September 

4 2005 and on file in the Office of the Director, 

5 Minerals Management Service. 

6 ‘‘(B) AREAS BETWEEN 35 AND 75 MILES

7 FROM THE COASTLINE.—Unless an Adjacent 

8 State petitions under subsection (h) within one 

9 year after the date of enactment of the Grow 

10 American Supply Act for natural gas leasing or 

11 within three years after date of enactment for 

12 oil and gas leasing, the Secretary shall offer for 

13 leasing any area more than 35 miles but less 

14 than 75 miles from the coastline that was with15 drawn from disposition by leasing in the Atlan16 tic OCS Region, the Pacific OCS Region, or the 

17 Gulf of Mexico OCS Region Eastern Planning 

18 Area, as depicted on the maps referred to in 

19 this subparagraph, under the ‘Memorandum on 

20 Withdrawal of Certain Areas of the United 

21 States Outer Continental Shelf from Leasing 

22 Disposition’, 34 Weekly Comp. Pres. Doc. 

23 1111, dated June 12, 1998, or any area more 

24 than 35 miles but less than 75 miles of the 

25 coastline not withdrawn under that MemoVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
36 

•HR 1108 IH

1 randum that is included within the Exclusive 

2 Economic Zone adjacent to the Commonwealth 

3 of Puerto Rico, the Commonwealth of the 

4 Northern Mariana Islands, the Virgin Islands, 

5 American Samoa, Guam, and the other Terri6 tories of the United States, or any area more 

7 than 35 miles but less than 75 miles of the 

8 coastline within the Florida Straits Planning 

9 Area as indicated on the map entitled ‘Atlantic 

10 OCS Region State Adjacent Zones and OCS 

11 Planning Areas’, which is dated September 

12 2005 and on file in the Office of the Director, 

13 Minerals Management Service. 

14 ‘‘(2) REVOCATION OF WITHDRAWAL.—The pro15 visions of the ‘Memorandum on Withdrawal of Cer16 tain Areas of the United States Outer Continental 

17 Shelf from Leasing Disposition’, 34 Weekly Comp. 

18 Pres. Doc. 1111, dated June 12, 1998, are hereby 

19 revoked and are no longer in effect. Any area in the 

20 OCS withdrawn from leasing may be leased, and 

21 thereafter developed and produced by the lessee 

22 using extended reach or similar drilling from a loca23 tion on a leased area located in an area available for 

24 leasing. 

25 ‘‘(3) PETITION FOR LEASING.— 


rfrederick on PROD1PC67 with BILLS
37 

•HR 1108 IH

1 ‘‘(A) IN GENERAL.—The Governor of the 

2 State, upon enactment of a State statute pro3 viding for such, shall submit to the Secretary a 

4 petition requesting that the Secretary make 

5 available any area that is within the State’s Ad6 jacent Zone, included within the provisions of 

7 paragraph (1), and that (i) is greater than 35 

8 miles from any point on the coastline of a 

9 Neighboring State for the conduct of offshore 

10 leasing, pre-leasing, and related activities with 

11 respect to natural gas leasing; or (ii) is greater 

12 than 50 miles from any point on the coastline 

13 of a Neighboring State for the conduct of off14 shore leasing, pre-leasing, and related activities 

15 with respect to oil and gas leasing. The Adja16 cent State may also petition for leasing any 

17 other area within its Adjacent Zone if leasing is 

18 allowed in the similar area of the Adjacent 

19 Zone of the applicable Neighboring State, or if 

20 not allowed, if the Neighboring State, acting 

21 through its Governor, expresses its concurrence 

22 with the petition. The Secretary shall only con23 sider such a petition upon making a finding 

24 that leasing is allowed in the similar area of the 

25 Adjacent Zone of the applicable Neighboring 


rfrederick on PROD1PC67 with BILLS
38 

•HR 1108 IH

1 State or upon receipt of the concurrence of the 

2 Neighboring State. The date of receipt by the 

3 Secretary of such concurrence by the Neigh4 boring State shall constitute the date of receipt 

5 of the petition for that area for which the con6 currence applies. 

7 ‘‘(B) LIMITATIONS ON LEASING.—In its 

8 petition, a State with an Adjacent Zone that 

9 contains leased tracts may condition new leas10 ing for oil and gas, or natural gas for tracts 

11 within 35 miles of the coastline by— 

12 ‘‘(i) requiring a net reduction in the 

13 number of production platforms; 

14 ‘‘(ii) requiring a net increase in the 

15 average distance of production platforms 

16 from the coastline; 

17 ‘‘(iii) limiting permanent surface occu18 pancy on new leases to areas that are more 

19 than 10 miles from the coastline; 

20 ‘‘(iv) limiting some tracts to being 

21 produced from shore or from platforms lo22 cated on other tracts; or 

23 ‘‘(v) other conditions that the Adja24 cent State may deem appropriate as long 

25 as the Secretary does not determine that 


rfrederick on PROD1PC67 with BILLS
39 

•HR 1108 IH

1 production is made economically or tech2 nically impracticable or otherwise impos3 sible. 

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

5 than 90 days after receipt of a petition under 

6 subparagraph (A), the Secretary shall approve 

7 the petition, unless the Secretary determines 

8 that leasing the area would probably cause seri9 ous harm or damage to the marine resources of 

10 the State’s Adjacent Zone. Prior to approving 

11 the petition, the Secretary shall complete an en12 vironmental assessment that documents the an13 ticipated environmental effects of leasing in the 

14 area included within the scope of the petition. 

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

16 fails to approve or deny a petition in accordance 

17 with subparagraph (C) the petition shall be con18 sidered to be approved 90 days after receipt of 

19 the petition. 

20 ‘‘(E) AMENDMENT OF THE 5-YEAR LEAS21 ING PROGRAM.—Notwithstanding section 18, 

22 within 180 days of the approval of a petition 

23 under subparagraph (C) or (D), after the expi24 ration of the time limits in paragraph (1)(B), 

25 and within 180 days after the date of enactVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
40 

•HR 1108 IH

1 ment of the Grow American Supply Act for the 

2 areas made available for leasing under para3 graph (2), the Secretary shall amend the cur4 rent 5-Year Outer Continental Shelf Oil and 

5 Gas Leasing Program to include a lease sale or 

6 sales for at least 75 percent of the associated 

7 areas, unless there are, from the date of ap8 proval, expiration of such time limits, or enact9 ment, as applicable, fewer than 12 months re10 maining in the current 5-Year Leasing Program 

11 in which case the Secretary shall include the as12 sociated areas within lease sales under the next 

13 5-Year Leasing Program. For purposes of 

14 amending the 5-Year Program in accordance 

15 with this section, further consultations with 

16 States shall not be required. For purposes of 

17 this section, an environmental assessment per18 formed under the provisions of the National 

19 Environmental Policy Act of 1969 to assess the 

20 effects of approving the petition shall be suffi21 cient to amend the 5-Year Leasing Program. 

22 ‘‘(h) OPTION TO EXTEND WITHDRAWAL FROM

23 LEASING WITHIN CERTAIN AREAS OF THE OUTER CON24 TINENTAL SHELF.—A State, through enactment of a 

25 State statute, may extend for a period of time of up to 


rfrederick on PROD1PC67 with BILLS
41 

•HR 1108 IH

1 5 years for each extension the withdrawal from leasing for 

2 all or part of any area within the State’s Adjacent Zone 

3 located more than 35 miles, but less than 75 miles, from 

4 the coastline that is subject to subsection (g)(1)(B). A 

5 State may extend multiple times for any particular area 

6 but not more than once per calendar year for any par7 ticular area, may a State extend the withdrawal for an 

8 area to cause it to extend to a total of more than 5 years 

9 from the date of concurrence by the legislature. A State 

10 must prepare separate extensions, with enactment of sepa11 rate State statutes, for oil and gas leasing and for natural 

12 gas leasing. An extension by a State may affect some areas 

13 to be withdrawn from all leasing and some areas to be 

14 withdrawn only from one type of leasing. 

15 ‘‘(i) EFFECT OF OTHER LAWS.—Adoption by any 

16 Adjacent State of any constitutional provision, or enact17 ment of any State statute, that has the effect, as deter18 mined by the Secretary, of restricting either the Governor 

19 or the Legislature, or both, from exercising full discretion 

20 related to subsection (g) or (h), or both, shall automati21 cally (1) prohibit any sharing of OCS Receipts under this 

22 Act with the Adjacent State, and its coastal political sub23 divisions, and (2) prohibit the Adjacent State from exer24 cising any authority under subsection (h), for the duration 

25 of the restriction. The Secretary shall make the determinaVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
42 

•HR 1108 IH

1 tion of the existence of such restricting constitutional pro2 vision or State statute within 30 days of a petition by any 

3 outer Continental Shelf lessee or any State. 

4 ‘‘(j) PROHIBITION ON LEASING EAST OF THE MILI5 TARY MISSION LINE.— 

6 ‘‘(1) Notwithstanding any other provision of 

7 law, from and after the date of enactment of the 

8 Grow American Supply Act, prior to January 1, 

9 2022, no area of the outer Continental Shelf located 

10 in the Gulf of Mexico east of the military mission 

11 line may be offered for leasing for oil and gas or 

12 natural gas unless a waiver is issued by the Sec13 retary of Defense. If such a waiver is granted, 50 

14 percent of the OCS Receipts from a lease within 

15 such area issued because of such waiver shall be 

16 paid under section 9 and the other 50 percent shall 

17 be paid annually to the National Guards of all 

18 States, allocated by the Secretary among the States 

19 on a per capita basis using the entire population of 

20 such States. 

21 ‘‘(2) In this subsection, the term ‘military mis22 sion line’ means a line located at 86 degrees, 41 

23 minutes West Longitude, and extending south from 

24 the coast of Florida to the outer boundary of United 


rfrederick on PROD1PC67 with BILLS
43 

•HR 1108 IH

1 States exclusive economic zone in the Gulf of Mex2 ico.’’. 

3 SEC. 10. OUTER CONTINENTAL SHELF LEASING PROGRAM. 

4 Section 18 of the Outer Continental Shelf Lands Act 

5 (43 U.S.C. 1344) is amended— 

6 (1) in subsection (a), by adding at the end of 

7 paragraph (3) the following: ‘‘The Secretary shall, in 

8 each 5-year program, include lease sales that when 

9 viewed as a whole propose to offer for oil and gas 

10 or natural gas leasing at least 75 percent of the 

11 available unleased acreage within each OCS Plan12 ning Area. Available unleased acreage is that portion 

13 of the outer Continental Shelf that is not under 

14 lease at the time of the proposed lease sale, and has 

15 not otherwise been made unavailable for leasing by 

16 law.’’; 

17 (2) in subsection (c), by striking so much as 

18 precedes paragraph (3) and inserting the following: 

19 ‘‘(c)(1) During the preparation of any proposed leas20 ing program under this section, the Secretary shall con21 sider and analyze leasing throughout the entire outer Con22 tinental Shelf without regard to any other law affecting 

23 such leasing. During this preparation the Secretary shall 

24 invite and consider suggestions from any interested Fed25 eral agency, including the Attorney General, in consultaVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
44 

•HR 1108 IH

1 tion with the Federal Trade Commission, and from the 

2 Governor of any coastal State. The Secretary may also in3 vite or consider any suggestions from the executive of any 

4 local government in a coastal State that have been pre5 viously submitted to the Governor of such State, and from 

6 any other person. Further, the Secretary shall consult 

7 with the Secretary of Defense regarding military oper8 ational needs in the outer Continental Shelf. The Sec9 retary shall work with the Secretary of Defense to resolve 

10 any conflicts that might arise regarding offering any area 

11 of the outer Continental Shelf for oil and gas or natural 

12 gas leasing. If the Secretaries are not able to resolve all 

13 such conflicts, any unresolved issues shall be elevated to 

14 the President for resolution. 

15 ‘‘(2) After the consideration and analysis required by 

16 paragraph (1), including the consideration of the sugges17 tions received from any interested Federal agency, the 

18 Federal Trade Commission, the Governor of any coastal 

19 State, any local government of a coastal State, and any 

20 other person, the Secretary shall publish in the Federal 

21 Register a proposed leasing program accompanied by a 

22 draft environmental impact statement prepared pursuant 

23 to the National Environmental Policy Act of 1969. After 

24 the publishing of the proposed leasing program and during 

25 the comment period provided for on the draft environVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
45 

•HR 1108 IH

1 mental impact statement, the Secretary shall submit a 

2 copy of the proposed program to the Governor of each af3 fected State for review and comment. The Governor may 

4 solicit comments from those executives of local govern5 ments in the Governor’s State that the Governor, in the 

6 discretion of the Governor, determines will be affected by 

7 the proposed program. If any comment by such Governor 

8 is received by the Secretary at least 15 days prior to sub9 mission to the Congress pursuant to paragraph (3) and 

10 includes a request for any modification of such proposed 

11 program, the Secretary shall reply in writing, granting or 

12 denying such request in whole or in part, or granting such 

13 request in such modified form as the Secretary considers 

14 appropriate, and stating the Secretary’s reasons therefor. 

15 All such correspondence between the Secretary and the 

16 Governor of any affected State, together with any addi17 tional information and data relating thereto, shall accom18 pany such proposed program when it is submitted to the 

19 Congress.’’; and 

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

21 ‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE22 SOURCES AND STATE AND LOCAL GOVERNMENT SHARES

23 OF OCS RECEIPTS.—Concurrent with the publication of 

24 the scoping notice at the beginning of the development of 

25 each 5-Year Outer Continental Shelf Oil and Gas Leasing 


rfrederick on PROD1PC67 with BILLS
46 

•HR 1108 IH

1 Program, or as soon thereafter as possible, the Secretary 

2 shall— 

3 ‘‘(1) provide to each Adjacent State a current 

4 estimate of proven and potential oil and gas re5 sources located within the State’s Adjacent Zone; 

6 and 

7 ‘‘(2) provide to each Adjacent State, and coast8 al political subdivisions thereof, a best-efforts projec9 tion of the OCS Receipts that the Secretary expects 

10 will be shared with each Adjacent State, and its 

11 coastal political subdivisions, using the assumption 

12 that the unleased tracts within the State’s Adjacent 

13 Zone are fully made available for leasing, including 

14 long-term projected OCS Receipts. In addition, the 

15 Secretary shall include a macroeconomic estimate of 

16 the impact of such leasing on the national economy 

17 and each State’s economy, including investment, 

18 jobs, revenues, personal income, and other cat19 egories.’’. 

20 SEC. 11. COORDINATION WITH ADJACENT STATES. 

21 Section 19 of the Outer Continental Shelf Lands Act 

22 (43 U.S.C. 1345) is amended— 

23 (1) in subsection (a) in the first sentence by in24 serting ‘‘, for any tract located within the Adjacent 

25 State’s Adjacent Zone,’’ after ‘‘government’’; and 


rfrederick on PROD1PC67 with BILLS
47 

•HR 1108 IH

1 (2) by adding the following: 

2 ‘‘(f)(1) No Federal agency may permit or otherwise 

3 approve, without the concurrence of the Adjacent State, 

4 the construction of a crude oil or petroleum products (or 

5 both) pipeline within the part of the Adjacent State’s Ad6 jacent Zone that is withdrawn from oil and gas or natural 

7 gas leasing, except that such a pipeline may be approved, 

8 without such Adjacent State’s concurrence, to pass 

9 through such Adjacent Zone if at least 50 percent of the 

10 production projected to be carried by the pipeline within 

11 its first 10 years of operation is from areas of the Adja12 cent State’s Adjacent Zone. 

13 ‘‘(2) No State may prohibit the construction within 

14 its Adjacent Zone or its State waters of a natural gas pipe15 line that will transport natural gas produced from the 

16 outer Continental Shelf. However, an Adjacent State may 

17 prevent a proposed natural gas pipeline landing location 

18 if it proposes two alternate landing locations in the Adja19 cent State, acceptable to the Adjacent State, located with20 in 50 miles on either side of the proposed landing loca21 tion.’’. 

22 SEC. 12. ENVIRONMENTAL STUDIES. 

23 Section 20(d) of the Outer Continental Shelf Lands 

24 Act (43 U.S.C. 1346) is amended— 

25 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 


rfrederick on PROD1PC67 with BILLS
48 

•HR 1108 IH

1 (2) by adding at the end the following: 

2 ‘‘(2) For all programs, lease sales, leases, and actions 

3 under this Act, the following shall apply regarding the ap4 plication of the National Environmental Policy Act of 

5 1969: 

6 ‘‘(A) Granting or directing lease suspensions 

7 and the conduct of all preliminary activities on outer 

8 Continental Shelf tracts, including seismic activities, 

9 are categorically excluded from the need to prepare 

10 either an environmental assessment or an environ11 mental impact statement, and the Secretary shall 

12 not be required to analyze whether any exceptions to 

13 a categorical exclusion apply for activities conducted 

14 under the authority of this Act. 

15 ‘‘(B) The environmental impact statement de16 veloped in support of each 5-year oil and gas leasing 

17 program provides the environmental analysis for all 

18 lease sales to be conducted under the program and 

19 such sales shall not be subject to further environ20 mental analysis. 

21 ‘‘(C) Exploration plans shall not be subject to 

22 any requirement to prepare an environmental impact 

23 statement, and the Secretary may find that explo24 ration plans are eligible for categorical exclusion due 

25 to the impacts already being considered within an 


rfrederick on PROD1PC67 with BILLS
49 

•HR 1108 IH

1 environmental impact statement or due to mitigation 

2 measures included within the plan. 

3 ‘‘(D) Within each OCS Planning Area, after the 

4 preparation of the first development and production 

5 plan environmental impact statement for a leased 

6 tract within the Area, future development and pro7 duction plans for leased tracts within the Area shall 

8 only require the preparation of an environmental as9 sessment unless the most recent development and 

10 production plan environmental impact statement 

11 within the Area was finalized more than 10 years 

12 prior to the date of the approval of the plan, in 

13 which case an environmental impact statement shall 

14 be required.’’. 

15 SEC. 13. REVIEW OF OUTER CONTINENTAL SHELF DEVEL16 OPMENT AND PRODUCTION PLANS. 

17 Section 25 of the Outer Continental Shelf Lands Act 

18 (43 U.S.C. 1351(a)) is amended to read as follows: 

19 ‘‘SEC. 25. REVIEW OF OUTER CONTINENTAL SHELF DEVEL20 OPMENT AND PRODUCTION PLANS. 

21 ‘‘(a) DEVELOPMENT AND PRODUCTION PLANS; SUB22 MISSION TO SECRETARY; STATEMENT OF FACILITIES AND

23 OPERATION; SUBMISSION TO GOVERNORS OF AFFECTED

24 STATES AND LOCAL GOVERNMENTS.— 


rfrederick on PROD1PC67 with BILLS
50 

•HR 1108 IH

1 ‘‘(1) Prior to development and production pur2 suant to an oil and gas lease issued on or after Sep3 tember 18, 1978, for any area of the outer Conti4 nental Shelf, or issued or maintained prior to Sep5 tember 18, 1978, for any area of the outer Conti6 nental Shelf, with respect to which no oil or gas has 

7 been discovered in paying quantities prior to Sep8 tember 18, 1978, the lessee shall submit a develop9 ment and production plan (hereinafter in this sec10 tion referred to as a ‘plan’) to the Secretary for re11 view. 

12 ‘‘(2) A plan shall be accompanied by a state13 ment describing all facilities and operations, other 

14 than those on the outer Continental Shelf, proposed 

15 by the lessee and known by the lessee (whether or 

16 not owned or operated by such lessee) that will be 

17 constructed or utilized in the development and pro18 duction of oil or gas from the lease area, including 

19 the location and site of such facilities and oper20 ations, the land, labor, material, and energy require21 ments associated with such facilities and operations, 

22 and all environmental and safety safeguards to be 

23 implemented. 

24 ‘‘(3) Except for any privileged or proprietary 

25 information (as such term is defined in regulations 


rfrederick on PROD1PC67 with BILLS
51 

•HR 1108 IH

1 issued by the Secretary), the Secretary, within 30 

2 days after receipt of a plan and statement, shall— 

3 ‘‘(A) submit such plan and statement to 

4 the Governor of any affected State, and upon 

5 request to the executive of any affected local 

6 government; and 

7 ‘‘(B) make such plan and statement avail8 able to any appropriate interstate regional enti9 ty and the public. 

10 ‘‘(b) DEVELOPMENT AND PRODUCTION ACTIVITIES

11 IN ACCORDANCE WITH PLAN AS LEASE REQUIREMENT.— 

12 After the date of enactment of the Grow American Supply 

13 Act, no oil and gas lease may be issued pursuant to this 

14 Act in any region of the outer Continental Shelf, unless 

15 such lease requires that development and production ac16 tivities be carried out in accordance with a plan that com17 plies with the requirements of this section. This section 

18 shall also apply to leases that do not have an approved 

19 development and production plan as of the date of enact20 ment of the Grow American Supply Act. 

21 ‘‘(c) SCOPE AND CONTENTS OF PLAN.—A plan may 

22 apply to more than one oil and gas lease, and shall set 

23 forth, in the degree of detail established by regulations 

24 issued by the Secretary— 

25 ‘‘(1) the general work to be performed; 


rfrederick on PROD1PC67 with BILLS
52 

•HR 1108 IH

1 ‘‘(2) a description of all facilities and operations 

2 located on the outer Continental Shelf that are pro3 posed by the lessee or known by the lessee (whether 

4 or not owned or operated by such lessee) to be di5 rectly related to the proposed development, including 

6 the location and size of such facilities and oper7 ations, and the land, labor, material, and energy re8 quirements associated with such facilities and oper9 ations; 

10 ‘‘(3) the environmental safeguards to be imple11 mented on the outer Continental Shelf and how such 

12 safeguards are to be implemented; 

13 ‘‘(4) all safety standards to be met and how 

14 such standards are to be met; 

15 ‘‘(5) an expected rate of development and pro16 duction and a time schedule for performance; and 

17 ‘‘(6) such other relevant information as the Sec18 retary may by regulation require. 

19 ‘‘(d) COMPLETENESS REVIEW OF THE PLAN.— 

20 ‘‘(1) Prior to commencing any activity under a 

21 development and production plan pursuant to any oil 

22 and gas lease issued or maintained under this Act, 

23 the lessee shall certify that the plan is consistent 

24 with the terms of the lease and that it is consistent 

25 with all statutory and regulatory requirements in efVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
53 

•HR 1108 IH

1 fect on the date of issuance of the lease, and any 

2 regulations promulgated under this Act related to 

3 the conservation of resources after the date of lease 

4 issuance. The plan shall include all required infor5 mation and documentation required under sub6 section (c). 

7 ‘‘(2) The Secretary shall review the plan for 

8 completeness within 30 days of submission. If the 

9 Secretary finds that the plan is not complete, the 

10 Secretary shall notify the lessee with a detailed ex11 planation of such modifications of such plan as are 

12 necessary to achieve completeness. The Secretary 

13 shall have 30 days to review a modified plan for 

14 completeness. 

15 ‘‘(e) REVIEW FOR CONSISTENCY OF THE PLAN.— 

16 ‘‘(1) After a determination that a plan is com17 plete, the Secretary shall have 120 days to conduct 

18 a review of the plan, to ensure that it is consistent 

19 with the terms of the lease, and that it is consistent 

20 with all such statutory and regulatory requirements 

21 applicable to the lease. The review shall ensure that 

22 the plan is consistent with lease terms, and statutory 

23 and regulatory requirements applicable to the lease, 

24 related to national security or national defense, in25 cluding any military operating stipulations or other 


rfrederick on PROD1PC67 with BILLS
54 

•HR 1108 IH

1 restrictions. The Secretary shall seek the assistance 

2 of the Department of Defense in the conduct of the 

3 review of any plan prepared under this section for 

4 a lease containing military operating stipulations or 

5 other restrictions and shall accept the assistance of 

6 the Department of Defense in the conduct of the re7 view of any plan prepared under this section for any 

8 other lease when the Secretary of Defense requests 

9 an opportunity to participate in the review. If the 

10 Secretary finds that the plan is not consistent, the 

11 Secretary shall notify the lessee with a detailed ex12 planation of such modifications of such plan as are 

13 necessary to achieve consistency. 

14 ‘‘(2) The Secretary shall have 120 days to re15 view a modified plan. 

16 ‘‘(3) The lessee shall not conduct any activities 

17 under the plan during any 120-day review period, or 

18 thereafter until the plan has been modified to 

19 achieve compliance as so notified. 

20 ‘‘(4) After review by the Secretary provided for 

21 by this section, a lessee may operate pursuant to the 

22 plan without further review or approval by the Sec23 retary. 

24 ‘‘(f) REVIEW OF REVISION OF THE APPROVED

25 PLAN.—The lessee may submit to the Secretary any reviVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
55 

•HR 1108 IH

1 sion of a plan if the lessee determines that such revision 

2 will lead to greater recovery of oil and natural gas, im3 prove the efficiency, safety, and environmental protection 

4 of the recovery operation, is the only means available to 

5 avoid substantial economic hardship to the lessee, or is 

6 otherwise not inconsistent with the provisions of this Act, 

7 to the extent such revision is consistent with protection 

8 of the human, marine, and coastal environments. The 

9 process to be used for the review of any such revision shall 

10 be the same as that set forth in subsections (d) and (e). 

11 ‘‘(g) CANCELLATION OF LEASE ON FAILURE TO

12 SUBMIT PLAN OR COMPLY WITH A PLAN.—Whenever the 

13 owner of any lease fails to submit a plan in accordance 

14 with regulations issued under this section, or fails to com15 ply with a plan, the lease may be canceled in accordance 

16 with section 5(c) and (d). Termination of a lease because 

17 of failure to comply with a plan, including required modi18 fications or revisions, shall not entitle a lessee to any com19 pensation. 

20 ‘‘(h) PRODUCTION AND TRANSPORTATION OF NAT21 URAL GAS; SUBMISSION OF PLAN TO FEDERAL ENERGY

22 REGULATORY COMMISSION; IMPACT STATEMENT.—If any 

23 development and production plan submitted to the Sec24 retary pursuant to this section provides for the production 

25 and transportation of natural gas, the lessee shall contemVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
56 

•HR 1108 IH

1 poraneously submit to the Federal Energy Regulatory 

2 Commission that portion of such plan that relates to the 

3 facilities for transportation of natural gas. The Secretary 

4 and the Federal Energy Regulatory Commission shall 

5 agree as to which of them shall prepare an environmental 

6 impact statement pursuant to the National Environmental 

7 Policy Act of 1969 (42 U.S.C. 4321 et seq.) applicable 

8 to such portion of such plan, or conduct studies as to the 

9 effect on the environment of implementing it. Thereafter, 

10 the findings and recommendations by the agency pre11 paring such environmental impact statement or con12 ducting such studies pursuant to such agreement shall be 

13 adopted by the other agency, and such other agency shall 

14 not independently prepare another environmental impact 

15 statement or duplicate such studies with respect to such 

16 portion of such plan, but the Federal Energy Regulatory 

17 Commission, in connection with its review of an applica18 tion for a certificate of public convenience and necessity 

19 applicable to such transportation facilities pursuant to sec20 tion 7 of the Natural Gas Act (15 U.S.C. 717f), may pre21 pare such environmental studies or statement relevant to 

22 certification of such transportation facilities as have not 

23 been covered by an environmental impact statement or 

24 studies prepared by the Secretary. The Secretary, in con25 sultation with the Federal Energy Regulatory CommisVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
57 

•HR 1108 IH

1 sion, shall promulgate rules to implement this subsection, 

2 but the Federal Energy Regulatory Commission shall re3 tain sole authority with respect to rules and procedures 

4 applicable to the filing of any application with the Com5 mission and to all aspects of the Commission’s review of, 

6 and action on, any such application.’’. 

7 SEC. 14. TERMINATION OF EFFECT OF LAWS PROHIBITING 

8 THE SPENDING OF APPROPRIATED FUNDS 

9 FOR CERTAIN PURPOSES. 

10 All provisions of existing Federal law prohibiting the 

11 spending of appropriated funds to conduct oil and natural 

12 gas leasing and preleasing activities, or to issue a lease 

13 to any person, for any area of the outer Continental Shelf 

14 shall have no force or effect. 

15 SEC. 15. OUTER CONTINENTAL SHELF INCOMPATIBLE USE. 

16 (a) IN GENERAL.—No Federal agency may permit 

17 construction or operation (or both) of any facility, or des18 ignate or maintain a restricted transportation corridor or 

19 operating area on the Federal outer Continental Shelf or 

20 in State waters, that will be incompatible with, as deter21 mined by the Secretary of the Interior, oil and gas or nat22 ural gas leasing and substantially full exploration and pro23 duction of tracts that are geologically prospective for oil 

24 or natural gas (or both). 


rfrederick on PROD1PC67 with BILLS
58 

•HR 1108 IH

1 (b) EXCEPTIONS.—Subsection (a) shall not apply to 

2 any facility, transportation corridor, or operating area the 

3 construction, operation, designation, or maintenance of 

4 which is or will be— 

5 (1) located in an area of the outer Continental 

6 Shelf that is unavailable for oil and gas or natural 

7 gas leasing by operation of Federal law; 

8 (2) used for a military readiness activity (as de9 fined in section 315(f) of Public Law 107–314; 16 

10 U.S.C. 703 note); or 

11 (3) required in the national interest, as deter12 mined by the President. 

13 SEC. 16. REPURCHASE OF CERTAIN LEASES. 

14 (a) AUTHORITY TO REPURCHASE AND CANCEL CER15 TAIN LEASES.—The Secretary of the Interior shall repur16 chase and cancel any Federal oil and gas, geothermal, 

17 coal, oil shale, tar sands, or other mineral lease, whether 

18 onshore or offshore, but not including any outer Conti19 nental Shelf oil and gas leases that were subject to litiga20 tion in the Court of Federal Claims on January 1, 2008, 

21 if the Secretary finds that such lease qualifies for repur22 chase and cancellation under the regulations authorized 

23 by this section. 

24 (b) REGULATIONS.—Not later than 365 days after 

25 the date of enactment of this Act, the Secretary shall pubVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
59 

•HR 1108 IH

1 lish a final regulation stating the conditions under which 

2 a lease referred to in subsection (a) would qualify for re3 purchase and cancellation, and the process to be followed 

4 regarding repurchase and cancellation. Such regulation 

5 shall include, but not be limited to, the following: 

6 (1) The Secretary shall repurchase and cancel 

7 a lease after written request by the lessee upon a 

8 finding by the Secretary that— 

9 (A) a request by the lessee for a required 

10 permit or other approval complied with applica11 ble law, except the Coastal Zone Management 

12 Act of 1972 (16 U.S.C. 1451 et seq.), and 

13 terms of the lease, and such permit or other ap14 proval was denied; 

15 (B) a Federal agency failed to act on a re16 quest by the lessee for a required permit, other 

17 approval, or administrative appeal within a reg18 ulatory or statutory timeframe associated with 

19 the requested action, whether advisory or man20 datory, or if none, within 180 days; or 

21 (C) a Federal agency attached a condition 

22 of approval, without agreement by the lessee, to 

23 a required permit or other approval if such con24 dition of approval was not mandated by Federal 

25 statute or regulation in effect on the date of 


rfrederick on PROD1PC67 with BILLS
60 

•HR 1108 IH

1 lease issuance, or was not specifically allowed 

2 under the terms of the lease. 

3 (2) A lessee shall not be required to exhaust ad4 ministrative remedies regarding a permit request, 

5 administrative appeal, or other required request for 

6 approval for the purposes of this section. 

7 (3) The Secretary shall make a final agency de8 cision on a request by a lessee under this section 

9 within 180 days of request. 

10 (4) Compensation to a lessee to repurchase and 

11 cancel a lease under this section shall be the amount 

12 that a lessee would receive in a restitution case for 

13 a material breach of contract. 

14 (5) Compensation shall be in the form of a 

15 check or electronic transfer from the Department of 

16 the Treasury from funds deposited into miscella17 neous receipts under the authority of the same Act 

18 that authorized the issuance of the lease being re19 purchased. 

20 (6) Failure of the Secretary to make a final 

21 agency decision on a request by a lessee under this 

22 section within 180 days of request shall result in a 

23 10 percent increase in the compensation due to the 

24 lessee if the lease is ultimately repurchased. 


rfrederick on PROD1PC67 with BILLS
61 

•HR 1108 IH

1 (c) NO PREJUDICE.—This section shall not be inter2 preted to prejudice any other rights that the lessee would 

3 have in the absence of this section. 

4 SEC. 17. OFFSITE ENVIRONMENTAL MITIGATION. 

5 Notwithstanding any other provision of law, any per6 son conducting activities under the Mineral Leasing Act 

7 (30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 

8 U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac9 quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 

10 U.S.C. 552 et seq.), the General Mining Act of 1872 (30 

11 U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 

12 601 et seq.), or the Outer Continental Shelf Lands Act 

13 (43 U.S.C. 1331 et seq.), may in satisfying any mitigation 

14 requirements associated with such activities propose miti15 gation measures on a site away from the area impacted 

16 and the Secretary of the Interior shall accept these pro17 posed measures if the Secretary finds that they generally 

18 achieve the purposes for which mitigation measures apper19 tained. 

20 SEC. 18. REGULATION OF ONSHORE SURFACE-DISTURBING 

21 ACTIVITIES. 

22 Section 17(g) of the Mineral Leasing Act (30 U.S.C. 

23 226(g)) is amended to read as follows: 

24 ‘‘(g) REGULATION OF SURFACE-DISTURBING ACTIVI25 TIES.— 


rfrederick on PROD1PC67 with BILLS
62 

•HR 1108 IH

1 ‘‘(1) REGULATION OF SURFACE-DISTURBING

2 ACTIVITIES.—The Secretary of the Interior, or for 

3 National Forest lands, the Secretary of Agriculture, 

4 shall regulate all surface-disturbing activities con5 ducted pursuant to any lease issued under this Act, 

6 and shall determine reclamation and other actions as 

7 required in the interest of conservation of surface re8 sources. 

9 ‘‘(2) SUBMISSION OF EXPLORATION PLAN; COM10 PLETION REVIEW; COMPLIANCE REVIEW.— 

11 ‘‘(A) Prior to beginning oil and gas explo12 ration activities, a lessee shall submit an explo13 ration plan to the Secretary of the Interior for 

14 review. 

15 ‘‘(B) The Secretary shall review the plan 

16 for completeness within 10 days of submission. 

17 ‘‘(C) In the event the exploration plan is 

18 determined to be incomplete, the Secretary shall 

19 notify the lessee in writing and specify the 

20 items or information needed to complete the ex21 ploration plan. 

22 ‘‘(D) The Secretary shall have 10 days to 

23 review any modified exploration plan submitted 

24 by the lessee. 


rfrederick on PROD1PC67 with BILLS
63 

•HR 1108 IH

1 ‘‘(E) To be deemed complete, an explo2 ration plan shall include, in the degree of detail 

3 to be determined by the Secretary by rule or 

4 regulation— 

5 ‘‘(i) a drilling plan containing a de6 scription of the drilling program; 

7 ‘‘(ii) the surface and projected com8 pletion zone location; 

9 ‘‘(iii) pertinent geologic data; 

10 ‘‘(iv) expected hazards, and proposed 

11 mitigation measures to address such haz12 ards; 

13 ‘‘(v) a schedule of anticipated explo14 ration activities to be undertaken; 

15 ‘‘(vi) a description of equipment to be 

16 used for such activities; 

17 ‘‘(vii) a certification from the lessee 

18 stating that the exploration plan complies 

19 with all lease, regulatory and statutory re20 quirements in effect on the date of the 

21 issuance of the lease and any regulations 

22 promulgated after the date of lease 

23 issuance related to the conservation of re24 sources; 


rfrederick on PROD1PC67 with BILLS
64 

•HR 1108 IH

1 ‘‘(viii) evidence that the lessee has se2 cured an adequate bond, surety, or other 

3 financial arrangement prior to commence4 ment of any surface disturbing activity; 

5 ‘‘(ix) a plan that details the complete 

6 and timely reclamation of the lease tract; 

7 and 

8 ‘‘(x) such other relevant information 

9 as the Secretary may by regulation require. 

10 ‘‘(F) Upon a determination that the explo11 ration plan is complete, the Secretary shall have 

12 30 days from the date the plan is deemed com13 plete to conduct a review of the plan. 

14 ‘‘(G) If the Secretary finds the exploration 

15 plan is not consistent with all statutory and 

16 regulatory requirements described in subpara17 graph (E)(vii), the Secretary shall notify the 

18 lessee with a detailed explanation of such modi19 fications of the exploration plan as are nec20 essary to achieve compliance. 

21 ‘‘(H) The lessee shall not take any action 

22 under the exploration plan within a 30-day re23 view period, or thereafter until the plan has 

24 been modified to achieve compliance as so noti25 fied. 


rfrederick on PROD1PC67 with BILLS
65 

•HR 1108 IH

1 ‘‘(I) After review by the Secretary provided 

2 by this subsection, a lessee may operate pursu3 ant to the plan without further review or ap4 proval by the Secretary. 

5 ‘‘(3) PLAN REVISIONS; CONDUCT OF EXPLO6 RATION ACTIVITIES.— 

7 ‘‘(A) If a significant revision of an explo8 ration plan under this subsection is submitted 

9 to the Secretary, the process to be used for the 

10 review of such revision shall be the same as set 

11 forth in paragraph (1) of this subsection. 

12 ‘‘(B) All exploration activities pursuant to 

13 any lease shall be conducted in accordance with 

14 an exploration plan that has been submitted to 

15 and reviewed by the Secretary or a revision of 

16 such plan. 

17 ‘‘(4) SUBMISSION OF DEVELOPMENT AND PRO18 DUCTION PLAN; COMPLETENESS REVIEW; COMPLI19 ANCE REVIEW.— 

20 ‘‘(A) Prior to beginning oil and gas devel21 opment and production activities, a lessee shall 

22 submit a development and exploration plan to 

23 the Secretary of the Interior. Upon submission, 

24 such plans shall be subject to a review for com25 pleteness. 


rfrederick on PROD1PC67 with BILLS
66 

•HR 1108 IH

1 ‘‘(B) The Secretary shall review the plan 

2 for completeness within 30 days of submission. 

3 ‘‘(C) In the event a development and pro4 duction plan is determined to be incomplete, the 

5 Secretary shall notify the lessee in writing and 

6 specify the items or information needed to com7 plete the plan. 

8 ‘‘(D) The Secretary shall have 30 days to 

9 review for completeness any modified develop10 ment and production plan submitted by the les11 see. 

12 ‘‘(E) To be deemed complete, a develop13 ment and production plan shall include, in the 

14 degree of detail to be determined by the Sec15 retary by rule or regulation— 

16 ‘‘(i) a drilling plan containing a de17 scription of the drilling program; 

18 ‘‘(ii) the surface and projected com19 pletion zone location; 

20 ‘‘(iii) pertinent geologic data; 

21 ‘‘(iv) expected hazards, and proposed 

22 mitigation measures to address such haz23 ards; 

24 ‘‘(v) a statement describing all facili25 ties and operations proposed by the lessee 


rfrederick on PROD1PC67 with BILLS
67 

•HR 1108 IH

1 and known by the lessee (whether or not 

2 owned or operated by such lessee) that 

3 shall be constructed or utilized in the de4 velopment and production of oil or gas 

5 from the leases areas, including the loca6 tion and site of such facilities and oper7 ations, the land, labor, material, and en8 ergy requirements associated with such fa9 cilities and operations; 

10 ‘‘(vi) the general work to be per11 formed; 

12 ‘‘(vii) the environmental safeguards to 

13 be implemented in connection with the de14 velopment and production and how such 

15 safeguards are to be implemented; 

16 ‘‘(viii) all safety standards to be met 

17 and how such standards are to be met; 

18 ‘‘(ix) an expected rate of development 

19 and production and a time schedule for 

20 performance; 

21 ‘‘(x) a certification from the lessee 

22 stating that the development and produc23 tion plan complies with all lease, regu24 latory, and statutory requirements in effect 

25 on the date of issuance of the lease, and 


rfrederick on PROD1PC67 with BILLS
68 

•HR 1108 IH

1 any regulations promulgated after the date 

2 of lease issuance related to the conserva3 tion of resources; 

4 ‘‘(xi) evidence that the lessee has se5 cured an adequate bond, surety, or other 

6 financial arrangement prior to commence7 ment of any surface disturbing activity; 

8 ‘‘(xii) a plan that details the complete 

9 and timely reclamation of the lease tract; 

10 and 

11 ‘‘(xiii) such other relevant information 

12 as the Secretary may by regulation require. 

13 ‘‘(F) Upon a determination that the devel14 opment and production plan is complete, the 

15 Secretary shall have 120 days from the date the 

16 plan is deemed complete to conduct a review of 

17 the plan. 

18 ‘‘(G) If the Secretary finds the develop19 ment and production plan is not consistent with 

20 all statutory and regulatory requirements de21 scribed in subparagraph (E)(x), the Secretary 

22 shall notify the lessee with a detailed expla23 nation of such modifications of the development 

24 and production plan as are necessary to achieve 

25 compliance. 


rfrederick on PROD1PC67 with BILLS
69 

•HR 1108 IH

1 ‘‘(H) The lessee shall not take any action 

2 under the development and production plan 

3 within a 120 day review period, or thereafter 

4 until the plan has been modified to achieve 

5 compliance as so notified. 

6 ‘‘(5) PLAN REVISIONS; CONDUCT OF DEVELOP7 MENT AND PRODUCTION ACTIVITIES.— 

8 ‘‘(A) If a significant revision of a develop9 ment and production plan under this subsection 

10 is submitted to the Secretary, the process to be 

11 used for the review of such revision shall be the 

12 same as set forth in paragraph (4) of this sub13 section. 

14 ‘‘(B) All development and production ac15 tivities pursuant to any lease shall be conducted 

16 in accordance with a development and produc17 tion plan that has been submitted to and re18 viewed by the Secretary or a revision of such 

19 plan. 

20 ‘‘(6) CANCELLATION OF LEASE ON FAILURE TO

21 SUBMIT PLAN OR COMPLY WITH APPROVED PLAN.— 

22 Whenever the owner of any lease fails to submit a 

23 plan in accordance with regulations issued under 

24 this section, or fails to comply with a plan, the lease 

25 may be canceled in accordance with section 31. TerVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
70 

•HR 1108 IH

1 mination of a lease because of failure to comply with 

2 a plan, including required modifications or revisions, 

3 shall not entitle a lessee to any compensation.’’. 

4 SEC. 19. AUTHORITY TO USE DECOMMISSIONED OFFSHORE 

5 OIL AND GAS PLATFORMS AND OTHER FA6 CILITIES FOR ARTIFICIAL REEF, SCIENTIFIC 

7 RESEARCH, OR OTHER USES. 

8 (a) SHORT TITLE.—This section may be cited as the 

9 ‘‘Rigs to Reefs Act of 2009’’. 

10 (b) IN GENERAL.—The Outer Continental Shelf 

11 Lands Act (43 U.S.C. 1301 et seq.) is amended by insert12 ing after section 9 the following: 

13 ‘‘SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND 

14 GAS PLATFORMS AND OTHER FACILITIES 

15 FOR ARTIFICIAL REEF, SCIENTIFIC RE16 SEARCH, OR OTHER USES. 

17 ‘‘(a) IN GENERAL.—The Secretary shall issue regula18 tions under which the Secretary may authorize use of an 

19 offshore oil and gas platform or other facility that is de20 commissioned from service for oil and gas purposes for 

21 an artificial reef, scientific research, or any other use au22 thorized under section 8(p) or any other applicable Fed23 eral law. 

24 ‘‘(b) TRANSFER REQUIREMENTS.—The Secretary 

25 shall not allow the transfer of a decommissioned offshore 


rfrederick on PROD1PC67 with BILLS
71 

•HR 1108 IH

1 oil and gas platform or other facility to another person 

2 unless the Secretary is satisfied that the transferee is suf3 ficiently bonded, endowed, or otherwise financially able to 

4 fulfill its obligations, including but not limited to— 

5 ‘‘(1) ongoing maintenance of the platform or 

6 other facility; 

7 ‘‘(2) any liability obligations that might arise; 

8 ‘‘(3) removal of the platform or other facility if 

9 determined necessary by the Secretary; and 

10 ‘‘(4) any other requirements and obligations 

11 that the Secretary may deem appropriate by regula12 tion. 

13 ‘‘(c) PLUGGING AND ABANDONMENT.—The Sec14 retary shall ensure that plugging and abandonment of 

15 wells is accomplished at an appropriate time. 

16 ‘‘(d) POTENTIAL TO PETITION TO OPT-OUT OF REG17 ULATIONS.—An Adjacent State acting through a resolu18 tion of its legislature, with concurrence of its Governor, 

19 may preliminarily petition to opt-out of the application of 

20 regulations promulgated under this section to platforms 

21 and other facilities located in the area of its Adjacent Zone 

22 within 12 miles of the coastline. Upon receipt of the pre23 liminary petition, the Secretary shall complete an environ24 mental assessment that documents the anticipated envi25 ronmental effects of approving the petition. The Secretary 


rfrederick on PROD1PC67 with BILLS
72 

•HR 1108 IH

1 shall provide the environmental assessment to the State, 

2 which then has the choice of no action or confirming its 

3 petition by further action of its legislature, with the con4 currence of its Governor. The Secretary is authorized to 

5 except such area from the application of such regulations, 

6 and shall approve any confirmed petition. 

7 ‘‘(e) LIMITATION ON LIABILITY.—A person that had 

8 used an offshore oil and gas platform or other facility for 

9 oil and gas purposes and that no longer has any ownership 

10 or control of the platform or other facility shall not be 

11 liable under Federal law for any costs or damages arising 

12 from such platform or other facility after the date the plat13 form or other facility is used for any purpose under sub14 section (a), unless such costs or damages arise from— 

15 ‘‘(1) use of the platform or other facility by the 

16 person for development or production of oil or gas; 

17 or 

18 ‘‘(2) another act or omission of the person. 

19 ‘‘(f) OTHER LEASING AND USE NOT AFFECTED.— 

20 This section, and the use of any offshore oil and gas plat21 form or other facility for any purpose under subsection 

22 (a), shall not affect— 

23 ‘‘(1) the authority of the Secretary to lease any 

24 area under this Act; or 


rfrederick on PROD1PC67 with BILLS
73 

•HR 1108 IH

1 ‘‘(2) any activity otherwise authorized under 

2 this Act.’’. 

3 (c) DEADLINE FOR REGULATIONS.—The Secretary of 

4 the Interior shall issue regulations under subsection (b) 

5 by not later than 180 days after the date of enactment 

6 of this Act. 

7 (d) STUDY AND REPORT ON EFFECTS OF REMOVAL

8 OF PLATFORMS.—Not later than one year after the date 

9 of enactment of this Act, the Secretary of the Interior, 

10 in consultation with other Federal agencies as the Sec11 retary deems advisable, shall study and report to the Con12 gress regarding how the removal of offshore oil and gas 

13 platforms and other facilities from the outer Continental 

14 Shelf would affect existing fish stocks and coral popu15 lations. 

16 SEC. 20. OCS REGIONAL HEADQUARTERS. 

17 Not later than July 1, 2011, the Secretary of the In18 terior shall establish the headquarters for the Atlantic 

19 OCS Region and the headquarters for the Pacific OCS 

20 Region within a State bordering the Atlantic OCS Region 

21 and a State bordering the Pacific OCS Region, respec22 tively, from among the States bordering those Regions, 

23 that petitions by no later than January 1, 2011, for leas24 ing, for oil and gas or natural gas, covering at least 40 

25 percent of the area of its Adjacent Zone within 75 miles 


rfrederick on PROD1PC67 with BILLS
74 

•HR 1108 IH

1 of the coastline. Such Atlantic and Pacific OCS Regions 

2 headquarters shall be located within 25 miles of the coast3 line and each Minerals Management Service OCS regional 

4 headquarters shall be the permanent duty station for all 

5 Minerals Management Service personnel that on a daily 

6 basis spend on average 60 percent or more of their time 

7 in performance of duties in support of the activities of the 

8 respective Region, except that the Minerals Management 

9 Service may house regional inspection staff in other loca10 tions. Each OCS Region shall each be led by a Regional 

11 Director who shall be an employee within the Senior Exec12 utive Service. 

13 SEC. 21. OIL SHALE AND TAR SANDS AMENDMENTS. 

14 (a) ROYALTY RATES FOR LEASES.—Section 369(o) 

15 of the Energy Policy Act of 2005 (Public Law 109–58; 

16 119 Stat. 728; 42 U.S.C. 15927) is amended by desig17 nating the existing language as (1), by redesignating the 

18 existing (1) and (2) as (A) and (B), respectively, and by 

19 adding a new paragraph (2), as follows: 

20 ‘‘(2) DEFAULT PROVISIONS.—In the absence of 

21 the issuance of regulations or other designation by 

22 the Secretary, the following shall be the royalties, 

23 fees, rentals, bonus provisions and other payments 

24 for research, development and demonstration leases, 


rfrederick on PROD1PC67 with BILLS
75 

•HR 1108 IH

1 and commercial leases, issued under the authority of 

2 this section: 

3 ‘‘(A) ROYALTY RATES FOR COMMERCIAL

4 LEASES.— 

5 ‘‘(i) ROYALTY RATES.—The royalty 

6 rate for commercial leases shall be 10 per 

7 centum of the value of production at the 

8 first sale. 

9 ‘‘(ii) REDUCTION.—The royalty rate 

10 fixed in the lease shall be reduced up to 5 

11 per centum as follows: 

12 ‘‘(I) 100 per centum of this 

13 amount if the lease is brought to first 

14 sustained production within 3 years 

15 after issuance of the lease. 

16 ‘‘(II) 80 per centum of this 

17 amount if the lease is brought to first 

18 sustained production between 3 and 4 

19 years after issuance of the lease. 

20 ‘‘(III) 60 per centum of this 

21 amount if the lease is brought to first 

22 sustained production between 4 and 5 

23 years after issuance of the lease. 

24 ‘‘(IV) 40 per centum of this 

25 amount if the lease is brought to first 


rfrederick on PROD1PC67 with BILLS
76 

•HR 1108 IH

1 sustained production between 5 and 6 

2 years after issuance of the lease. 

3 ‘‘(V) 20 per centum of this 

4 amount if the lease is brought to first 

5 sustained production between 6 and 7 

6 years after issuance of the lease. 

7 ‘‘(B) ROYALTY RATES FOR RESEARCH, DE8 VELOPMENT, AND DEMONSTRATION LEASES.— 

9 ‘‘(i) ROYALTY RATES.—The royalty 

10 rate for research, development, and dem11 onstration leases that have been converted 

12 to full-sized leases shall be 8 percent of the 

13 value of production at the first sale. 

14 ‘‘(ii) REDUCTION.—The royalty rate 

15 fixed in the lease shall be reduced up to 3 

16 per centum as follows: 

17 ‘‘(I) 100 per centum of this 

18 amount if the lease is brought to first 

19 sustained production within 3 years 

20 after conversion to a full-sized lease. 

21 ‘‘(II) 80 per centum of this 

22 amount if the lease is brought to first 

23 sustained production between 3 and 4 

24 years after conversion to a full-sized 

25 lease. 


rfrederick on PROD1PC67 with BILLS
77 

•HR 1108 IH

1 ‘‘(III) 60 per centum of this 

2 amount if the lease is brought to first 

3 sustained production between 4 and 5 

4 years after conversion to a full-sized 

5 lease. 

6 ‘‘(IV) 40 per centum of this 

7 amount if the lease is brought to first 

8 sustained production between 5 and 6 

9 years after conversion to a full-sized 

10 lease. 

11 ‘‘(V) 20 per centum of this 

12 amount if the lease is brought to first 

13 sustained production between 6 and 7 

14 years after conversion to a full-sized 

15 lease. 

16 ‘‘(C) OTHER PROVISIONS.—Commercial 

17 tracts shall be leased to the highest bidder 

18 based on sealed bids. The provisions for depos19 its, rentals, fees, and other matters shall be the 

20 same for commercial oil shale and tar sands 

21 leases as for oil and gas leases under the Min22 eral Leasing Act.’’. 

23 (b) TREATMENT OF RECEIPTS.—Section 21 of the 

24 Mineral Leasing Act (30 U.S.C. 241) is amended by add25 ing at the end the following: 


rfrederick on PROD1PC67 with BILLS
78 

•HR 1108 IH

1 ‘‘(e) RECEIPTS.— 

2 ‘‘(1) IN GENERAL.—Notwithstanding the provi3 sions of section 35, all funds received from and 

4 under an oil shale or tar sands lease shall be dis5 posed of as provided in this subsection. 

6 ‘‘(2) DISPOSITION OF RECEIPTS.— 

7 ‘‘(A) DEPOSIT.—The Secretary shall de8 posit into a separate account in the Treasury 

9 all receipts derived from any oil shale or tar 

10 sands lease. 

11 ‘‘(B) ALLOCATIONS TO STATES AND LOCAL

12 POLITICAL SUBDIVISIONS.—The Secretary shall 

13 allocate 50 percent of the receipts deposited 

14 into the account established under subpara15 graph (A) to the State within the boundaries of 

16 which the leased lands are located, with a por17 tion of that to be paid directly by the Secretary 

18 to the State’s local political subdivisions as pro19 vided in this paragraph. 

20 ‘‘(C) TRANSMISSION OF ALLOCATIONS.— 

21 ‘‘(i) IN GENERAL.—Not later than the 

22 last business day of the month after the 

23 month in which the revenues were received, 

24 the Secretary shall transmit— 


rfrederick on PROD1PC67 with BILLS
79 

•HR 1108 IH

1 ‘‘(I) to each State two-thirds of 

2 such State’s allocations under sub3 paragraph (B), and in accordance 

4 with clauses (ii) and (iii) to certain 

5 county-equivalent and municipal polit6 ical subdivisions of such State a total 

7 of one-third of such State’s allocations 

8 under subparagraph (B), together 

9 with all accrued interest thereon; and 

10 ‘‘(II) the remaining balance of 

11 such receipts deposited into the ac12 count that are not allocated under 

13 subparagraph (B), together with in14 terest thereon, shall be transmitted to 

15 the miscellaneous receipts account of 

16 the Treasury, except that until a lease 

17 has been in production for 20 years 

18 20 percent of such remaining balance 

19 derived from a lease shall be paid in 

20 accordance with subclause (I). 

21 ‘‘(ii) ALLOCATIONS TO CERTAIN

22 COUNTY-EQUIVALENT POLITICAL SUBDIVI23 SIONS.—The Secretary shall under clause 

24 (i)(I) make equitable allocations of the re25 ceipts to county-equivalent political subVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
80 

•HR 1108 IH

1 divisions that the Secretary determines are 

2 closely associated with the leasing and pro3 duction of oil shale and tar sands, under a 

4 formula that the Secretary shall determine 

5 by regulation. 

6 ‘‘(iii) ALLOCATIONS TO MUNICIPAL

7 POLITICAL SUBDIVISIONS.—The initial al8 location to each county-equivalent political 

9 subdivision under clause (ii) shall be fur10 ther allocated to the county-equivalent po11 litical subdivision and any municipal polit12 ical subdivisions located partially or wholly 

13 within the boundaries of the county-equiva14 lent political subdivision on an equitable 

15 basis under a formula that the Secretary 

16 shall determine by regulation. 

17 ‘‘(D) INVESTMENT OF DEPOSITS.—The de18 posits in the Treasury account established 

19 under this section shall be invested by the Sec20 retary of the Treasury in securities backed by 

21 the full faith and credit of the United States 

22 having maturities suitable to the needs of the 

23 account and yielding the highest reasonably 

24 available interest rates as determined by the 

25 Secretary of the Treasury. 


rfrederick on PROD1PC67 with BILLS
81 

•HR 1108 IH

1 ‘‘(E) USE OF FUNDS.—A recipient of 

2 funds under this subsection may use the funds 

3 for any lawful purpose as determined by State 

4 law. Funds allocated under this subsection to 

5 States and local political subdivisions may be 

6 used as matching funds for other Federal pro7 grams without limitation. Funds allocated to 

8 local political subdivisions under this subsection 

9 may not be used in calculation of payments to 

10 such local political subdivisions under programs 

11 for payments in lieu of taxes or other similar 

12 programs. 

13 ‘‘(F) NO ACCOUNTING REQUIRED.—No re14 cipient of funds under this subsection shall be 

15 required to account to the Federal Government 

16 for the expenditure of such funds, except as 

17 otherwise may be required by law. 

18 ‘‘(3) DEFINITIONS.—In this subsection: 

19 ‘‘(A) COUNTY-EQUIVALENT POLITICAL

20 SUBDIVISION.—The term ‘county-equivalent po21 litical subdivision’ means a political jurisdiction 

22 immediately below the level of State govern23 ment, including a county, parish, borough in 

24 Alaska, independent municipality not part of a 


rfrederick on PROD1PC67 with BILLS
82 

•HR 1108 IH

1 county, parish, or borough in Alaska, or other 

2 equivalent subdivision of a State. 

3 ‘‘(B) MUNICIPAL POLITICAL SUBDIVI4 SION.—The term ‘municipal political subdivi5 sion’ means a municipality located within and 

6 part of a county, parish, borough in Alaska, or 

7 other equivalent subdivision of a State.’’. 

8 (c) INTERAGENCY COORDINATION AND EXPEDITIOUS

9 REVIEW OF PERMITTING PROCESS.— 

10 (1) DEPARTMENT OF INTERIOR AS LEAD AGEN11 CY.—Upon written request of a prospective applicant 

12 for Federal authorization to develop a proposed oil 

13 shale or tar sands project, the Department shall act 

14 as the lead Federal agency for the purposes of co15 ordinating all applicable Federal authorizations and 

16 environmental reviews. To the maximum extent 

17 practicable under applicable Federal law, the Sec18 retary shall coordinate this Federal authorization 

19 and review process with any Indian tribes and State 

20 and local agencies responsible for conducting any 

21 separate permitting and environmental reviews. 

22 (2) SCHEDULE.—The Secretary, in coordination 

23 with the agencies with authority over Federal au24 thorizations and, as appropriate, with Indian tribes 

25 and State and local agencies that are willing to coVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
83 

•HR 1108 IH

1 ordinate their separate permitting and environ2 mental reviews with the Federal authorizations and 

3 environmental reviews, shall establish a schedule 

4 with prompt and binding intermediate and ultimate 

5 deadlines, not to exceed 18 months from the date of 

6 the written request, for the review of, and Federal 

7 authorization decisions relating to, oil shale or tar 

8 sands project development and operation. 

9 (3) CONSOLIDATED ENVIRONMENTAL RE10 VIEW.—If the Department determines that two or 

11 more environmental impact statements are required, 

12 the Department shall consolidate all or some of such 

13 statements in order to promote efficiency and timeli14 ness in the permitting process to the extent prac15 ticable. The Department may consolidate the envi16 ronmental reviews of any Federal agency considering 

17 any aspect of the proposed oil shale or tar sands 

18 project including ancillary surface processing facili19 ties, electric generation or transmission facilities, 

20 and other related facilities. 

21 (4) APPEALS.—In the event any agency has de22 nied a Federal authorization required for an oil 

23 shale or tar sands project, or has failed to act by a 

24 deadline established by the Secretary pursuant to 

25 paragraph (2) for deciding whether to issue the FedVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
84 

•HR 1108 IH

1 eral authorization, the applicant or any State in 

2 which the proposed oil shale or tar sands project 

3 would be located may file an appeal with the Sec4 retary. In consultation with the affected agency, the 

5 Secretary may then either issue the necessary Fed6 eral authorization with appropriate conditions, or 

7 deny the appeal. The Secretary shall issue a decision 

8 within 60 days after the filing of the appeal. 

9 (5) CONFORMING REGULATIONS.—Not later 

10 than 6 months after the date of enactment of this 

11 Act, the Secretary shall issue any regulations nec12 essary to implement this section. 

13 (d) OIL SHALE AND TAR SANDS LAND EX14 CHANGES.—Section 206 of the Federal Land Policy and 

15 Management Act of 1976 (43 U.S.C. 1716), is hereby 

16 amended by adding the following new subsection: 

17 ‘‘(j) OIL SHALE AND TAR SANDS LAND EX18 CHANGES.—For the purpose of promoting the economic 

19 recovery of oil shale and tar sands resources, the Secretary 

20 of the Interior shall identify and pursue to completion ex21 change and disposition of non-park, non-wilderness Fed22 eral lands, including lands having a non-Federal surface 

23 owner, containing deposits of oil shale and/or tar sands. 

24 The Secretary shall identify blocks of land containing oil 

25 shale and/or tar sands deposits for the purpose of maxiVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
85 

•HR 1108 IH

1 mizing consolidation of land ownership, and mineral inter2 ests, into manageable blocks within the following geologic 

3 basins located in Colorado, Utah, and Wyoming: Green 

4 River, Piceance Creek, Uinta, and Washakie. The Sec5 retary shall consider the geology of the basin when deter6 mining the size of manageable blocks. The Secretary shall 

7 conduct exchanges that are favorable to and in the overall 

8 best interest of the United States.’’. 

9 (e) PROCUREMENT OF UNCONVENTIONAL FUELS.— 

10 Section 2398a of title 10, United States Code, is amended 

11 in subsection (d) by striking ‘‘1 or more’’ and inserting 

12 ‘‘up to 25’’. 

13 SEC. 22. BUY AND BUILD AMERICAN. 

14 (a) BUY AND BUILD AMERICAN.—It is the intention 

15 of the Congress that this Act, among other things, results 

16 in a healthy and growing American industrial, manufac17 turing, transportation, and service sector employing the 

18 vast talents of America’s workforce to assist in the devel19 opment of affordable energy from the outer Continental 

20 Shelf. Moreover, the Congress intends to monitor the de21 ployment of personnel and material in the outer Conti22 nental Shelf to encourage the development of American 

23 technology and manufacturing to enable United States 

24 workers to benefit from this Act by good jobs and careers, 


rfrederick on PROD1PC67 with BILLS
86 

•HR 1108 IH

1 as well as the establishment of important industrial facili2 ties to support expanded access to American resources. 

3 (b) SAFEGUARD FOR EXTRAORDINARY ABILITY.— 

4 Section 30(a) of the Outer Continental Shelf Lands Act 

5 (43 U.S.C. 1356(a)) is amended in the matter preceding 

6 paragraph (1) by striking ‘‘regulations which’’ and insert7 ing ‘‘regulations that shall be supplemental and com8 plimentary with and under no circumstances a substi9 tution for the provisions of the Constitution and laws of 

10 the United States extended to the subsoil and seabed of 

11 the outer Continental Shelf pursuant to section 4(a)(1) 

12 of this Act, except insofar as such laws would otherwise 

13 apply to individuals who have extraordinary ability in the 

14 sciences, arts, education, or business, which has been dem15 onstrated by sustained national or international acclaim, 

16 and that’’. 

17 SEC. 23. REPEAL OF THE GULF OF MEXICO ENERGY SECU18 RITY ACT OF 2006. 

19 The Gulf of Mexico Energy Security Act of 2006 is 

20 repealed effective October 1, 2009, except the Secretary 

21 of the Interior shall make any payments to State and local 

22 governments based on fiscal year 2009 receipts under the 

23 Gulf of Mexico Energy Security Act of 2006. 


rfrederick on PROD1PC67 with BILLS
87 

•HR 1108 IH

1 SEC. 24. ROYALTY-IN-KIND. 

2 Section 27 of the Outer Continental Shelf Lands Act 

3 (43 U.S.C. 1353) is amended as follows: 

4 (1) By striking paragraph (3) of subsection (a) 

5 and replacing it with the following: 

6 ‘‘(3) Title to any royalty or net profit share oil 

7 or gas from leases issued under this Act or the Min8 eral Leasing Act may not be transferred by the Sec9 retary to another Federal Government agency except 

10 by sale for cash at fair market value. If not pur11 chased by another Federal Government agency, such 

12 oil and gas must be sold under subsections (b), (c), 

13 or (d). Proceeds from sales under this section shall 

14 be treated as offsetting receipts and shall be subject 

15 to any receipts sharing provisions applicable to the 

16 leases from which the in-kind royalty or net profit 

17 share production was produced in the same manner 

18 as if it had been paid in value. After payment of 

19 such shared receipts to State and local governments, 

20 the Secretary shall deposit the remainder of the re21 ceipts from sales into the Treasury of the United 

22 States and they shall be credited to miscellaneous 

23 receipts.’’. 

24 (2) In the first sentence of subsection (d) strike 

25 ‘‘transferred’’ and insert ‘‘sold’’. 


rfrederick on PROD1PC67 with BILLS
88 

•HR 1108 IH

1 SEC. 25. MANDATORY ISSUANCE OF REGULATIONS PRO2 MOTING PRODUCTION OF NATURAL GAS 

3 FROM GAS HYDRATES. 

4 (a) Section 353 of the Energy Policy Act of 2005 (42 

5 U.S.C. 15909) is amended as follows: 

6 (1) In subsection (b)(1) strike ‘‘may’’ and in7 sert ‘‘shall’’. 

8 (2) In subsection (b)(3) in the first sentence 

9 strike ‘‘if the Secretary determines that such royalty 

10 relief would encourage production’’. 

11 (3) In subsection (b)(4) by inserting at the end 

12 ‘‘when the price of natural gas on NYMEX (Henry 

13 Hub) exceeds $6.75/million btu (January 1, 2008 

14 dollars)’’. 

15 (b) The Secretary shall issue the final regulations 

16 under section 353 of the Energy Policy Act of 2005 not 

17 later than 180 days after the date of enactment of this 

18 Act. 

19 SEC. 26. MANDATORY ISSUANCE OF REGULATIONS PRO20 MOTING ENHANCED OIL AND NATURAL GAS 

21 PRODUCTION THROUGH CARBON DIOXIDE 

22 INJECTION. 

23 (a) Subsection (b)(1) of section 354 of the Energy 

24 Policy Act of 2005 (42 U.S.C. 15910) is amended to read 

25 as follows: 


rfrederick on PROD1PC67 with BILLS
89 

•HR 1108 IH

1 ‘‘(1) IN GENERAL.—The Secretary shall under2 take a rulemaking to provide for reduction of the 

3 royalty under a Federal oil and gas lease that is an 

4 eligible lease.’’. 

5 (b) The Secretary shall issue the final regulations 

6 under section 354 of the Energy Policy Act of 2005 not 

7 later than 180 days after enactment of this Act. 

8 SEC. 27. MINIMUM RENTAL RATES FOR FUTURE OIL, GAS, 

9 AND COAL FEDERAL LEASES. 

10 Effective upon the date of enactment of this Act, the 

11 minimum annual rental rate for oil and gas, oil shale, tar 

12 sands, and coal leases issued after that date shall be no 

13 less than $4.00 per acre for the first 5 years, and increas14 ing by $1 per acre/per year for each thereafter until the 

15 lessee begins to pay royalties for leases under the Mineral 

16 Leasing Act (30 U.S.C. 181 et seq.), the Mineral Leasing 

17 Act for Acquired Lands (30 U.S.C. 351 et seq.), the Outer 

18 Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), and 

19 any other statute that provides for the leasing of lands 

20 and waters owned and/or controlled by the Federal Gov21 ernment for mineral exploration and production. Any in22 creased rental receipts under this section shall be treated 

23 as offsetting receipts. 


rfrederick on PROD1PC67 with BILLS
90 

•HR 1108 IH

1 SEC. 28. OUTER CONTINENTAL SHELF DISCHARGES AND 

2 EMISSIONS. 

3 The Secretary of the Interior shall require that all 

4 operations related to oil and gas exploration, development, 

5 and production on the outer Continental Shelf utilize the 

6 best available and safest technology to minimize air emis7 sions and discharges into the water, including but not lim8 ited to drilling muds and fluids, unless the Minerals Man9 agement Service Regional Supervisor determines that the 

10 interests of safety require such discharges or emissions. 

11 SEC. 29. ONSHORE OIL AND GAS ROYALTIES. 

12 (a) IN GENERAL.—Effective January 1, 2010, the 

13 royalty rate for all new oil and gas leases issued under 

14 the authority of the Mineral Leasing Act (30 U.S.C. 181 

15 et seq.), the Mineral Leasing Act for Acquired Lands (30 

16 U.S.C. 351 et seq.), and other statutes providing for the 

17 issuance of oil and gas leases on public lands or other 

18 lands containing mineral rights owned by the United 

19 States Government, excluding the Outer Continental Shelf 

20 Lands Act (43 U.S.C. 1331 et seq.), shall be fixed by the 

21 Secretary at 15 per centum in the amount or value of pro22 duction saved, removed, or sold, subject to the following 

23 adjustments— 

24 (1) if the arithmetic average of the closing 

25 prices on the New York Mercantile Exchange for 

26 light sweet crude oil, or a similar index as deterVerDate Nov 24 2008 07:07 Feb 24, 2009 Jkt 079200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H1108.IH H1108

rfrederick on PROD1PC67 with BILLS
91 

•HR 1108 IH

1 mined by the Secretary, for the 365 days prior to 

2 issuance of the final notice of lease sale exceeded 

3 $150.00 per barrel (in January 1, 2008, dollars), 

4 the royalty rate shall be fixed by the Secretary at 

161 5 ⁄4 per centum in the amount or value of produc6 tion, removed, or sold; 

7 (2) if the arithmetic average of the closing 

8 prices on the New York Mercantile Exchange for 

9 light sweet crude oil, or a similar index as deter10 mined by the Secretary, for the 365 days prior to 

11 issuance of the final notice of lease sale was less 

12 than $75.00 per barrel (in January 1, 2008, dol13 lars), the royalty rate shall be fixed by the Secretary 

at 133 14 ⁄4 per centum in the amount or value of pro15 duction, removed, or sold; and 

16 (3) the royalty rate fixed in the lease shall be 

17 reduced up to 4 per centum as follows: (A) 100 per 

18 centum of this amount if the first production well is 

19 spudded within 3 years after issuance of the lease, 

20 (B) 75 per centum of this amount if the first pro21 duction well is spudded between 3 and 4 years after 

22 issuance of the lease, (C) 50 per centum of this 

23 amount if the first production well is spudded be24 tween 4 and 5 years after issuance of the lease, (D) 

25 25 per centum of this amount if the first production 


rfrederick on PROD1PC67 with BILLS
92 

•HR 1108 IH

1 well is spudded between 5 and 6 years after issuance 

2 of the lease. 

3 (b) REDUCTION.—The Secretary may reduce the roy4 alty rate fixed under subsection (a) by up to 2 per centum 

5 for tracts located in frontier areas, as determined by the 

6 Secretary, if the Secretary finds that the royalty rate oth7 erwise fixed by subsection (a) would likely significantly re8 duce production resulting from use of such bidding system 

9 in frontier areas. 

10 (c) RATE FOR CERTAIN LEASES.—The royalty rate 

11 for oil and gas leases in effect on January 1, 2010, that 

12 have not spudded the first production well prior to July 

13 1, 2009, issued under the authority of the Mineral Leasing 

14 Act (30 U.S.C. 181 et seq.), the Mineral Leasing Act for 

15 Acquired Lands (30 U.S.C. 351 et seq.), and other stat16 utes providing for the issuance of oil and gas leases on 

17 public lands or other lands containing mineral rights 

18 owned by the United States Government, excluding the 

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

20 seq.) shall be reduced up to 2 per centum as follows: 

21 (1) 100 per centum of this amount if the first 

22 production well is spudded within 3 years after 

23 issuance of the lease, 


rfrederick on PROD1PC67 with BILLS
93 

•HR 1108 IH

1 (2) 75 per centum of this amount if the first 

2 production well is spudded between 3 and 4 years 

3 after issuance of the lease, 

4 (3) 50 per centum of this amount if the first 

5 production well is spudded between 4 and 5 years 

6 after issuance of the lease, and 

7 (4) 25 per centum of this amount if the first 

8 production well is spudded between 5 and 6 years 

9 after issuance of the lease. 

10 SEC. 30. OCS JOINT PERMITTING OFFICES. 

11 (a) ESTABLISHMENT.—The Secretary of the Interior 

12 (referred to in this section as the ‘‘Secretary’’) shall estab13 lish Federal OCS Joint Regional Permitting Offices (re14 ferred to in this section as the ‘‘Regional Permitting Of15 fices’’). 

16 (b) MEMORANDUM OF UNDERSTANDING.—Not later 

17 than 90 days after the date of enactment of this Act, the 

18 Secretary shall enter into a memorandum of under19 standing for purposes of this section with— 

20 (1) the Secretary of Commerce; 

21 (2) the Administrator of the Environmental 

22 Protection Agency; and 

23 (3) the Chief of Engineers. 

24 (c) DESIGNATION OF QUALIFIED STAFF.— 


rfrederick on PROD1PC67 with BILLS
94 

•HR 1108 IH

1 (1) IN GENERAL.—Not later than 30 days after 

2 the date of the signing of the memorandum of un3 derstanding under subsection (b), all Federal signa4 tory parties shall assign to each of the Regional Per5 mitting Offices identified in subsection (d) a suffi6 cient number of employees with expertise to address 

7 the full spectrum of agency regulatory issues relat8 ing to the Regional Permitting Office in which the 

9 employee is employed, including, as applicable, par10 ticular expertise in— 

11 (A) the consultations and the preparation 

12 of biological opinions under section 7 of the En13 dangered Species Act of 1973 (16 U.S.C. 

14 1536); 

15 (B) permits under section 404 of Federal 

16 Water Pollution Control Act (33 U.S.C. 1344); 

17 (C) regulatory matters under the Clean Air 

18 Act (42 U.S.C. 7401 et seq.); 

19 (D) the consultations and preparation of 

20 documents under the Marine Mammals Protec21 tion Act; and 

22 (E) the preparation of analyses under the 

23 National Environmental Policy Act of 1969 (42 

24 U.S.C. 4321 et seq.). 


rfrederick on PROD1PC67 with BILLS
95 

•HR 1108 IH

1 (2) DUTIES.—Each employee assigned under 

2 paragraph (1) shall— 

3 (A) not later than 90 days after the date 

4 of assignment, report to the Minerals Manage5 ment Service Regional Director in the Regional 

6 Permitting Office to which the employee is as7 signed; 

8 (B) be responsible for all issues relating to 

9 the jurisdiction of the home office or agency of 

10 the employee; and 

11 (C) participate as part of the team of per12 sonnel working on proposed energy projects, 

13 planning, and environmental analyses. 

14 (d) REGIONAL PERMITTING OFFICES.—The fol15 lowing Minerals Management Service Regional Head16 quarters shall serve as the Regional Permitting Offices: 

17 (1) Anchorage, Alaska. 

18 (2) New Orleans, Louisiana. 

19 (3) Minerals Management Service Pacific Re20 gional Headquarters. 

21 (4) Minerals Management Service Atlantic Re22 gional Headquarters. 

23 (e) REPORTS.—Not later than 3 years after the date 

24 of enactment of this Act, the Secretary shall submit to 


rfrederick on PROD1PC67 with BILLS
96 

•HR 1108 IH

1 Congress a report that outlines the results of the Regional 

2 Permitting Offices to date. 

3 (f) TRANSFER OF FUNDS.—For the purposes of co4 ordination and processing of oil and gas use authorizations 

5 on the Federal outer Continental Shelf under the adminis6 tration of the Regional Permitting Offices identified in 

7 subsection (d), the Secretary may authorize the expendi8 ture or transfer of such funds as are necessary to— 

9 (1) the United States Fish and Wildlife Service; 

10 (2) the Bureau of Indian Affairs; 

11 (3) the Environmental Protection Agency; 

12 (4) the National Oceanic and Atmospheric Ad13 ministration; and 

14 (5) the Corps of Engineers. 

Æ 


rfrederick on PROD1PC67 with BILLS