II 

112TH CONGRESS 

2D SESSION S. 3438 

To require the Secretary of the Interior to implement the Proposed Final 

Outer Continental Shelf Oil and Gas Leasing Program: 2012–2017 and 

conduct additional oil and gas lease sales to promote offshore energy 

development in the United States for a more secure energy future, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 25, 2012 

Ms. MURKOWSKI (for herself, Mr. HOEVEN, Mr. WEBB, Ms. LANDRIEU, Mr. 

INHOFE, Mr. WARNER, Mr. BARRASSO, and Mr. BEGICH) introduced the 

following bill; which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To require the Secretary of the Interior to implement the 

Proposed Final Outer Continental Shelf Oil and Gas 

Leasing Program: 2012–2017 and conduct additional oil 

and gas lease sales to promote offshore energy development in the United States for a more secure energy 

future, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Offshore Petroleum 

5 Expansion Now Act of 2012’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) OCS PLANNING AREA.—The term ‘‘OCS 

4 Planning Area’’ means an area specified as an Outer 

5 Continental Shelf Planning Area by the Department 

6 of the Interior as of the date of the enactment of 

7 this Act. 

8 (2) PROPOSED OIL AND GAS LEASING PRO9 GRAM: 2012–2017.—The term ‘‘Proposed Oil and Gas 

10 Leasing Program: 2012–2017’’ means the Proposed 

11 Final Outer Continental Shelf Oil and Gas Leasing 

12 Program: 2012–2017 described in the notice of 

13 availability published in the Federal Register on 

14 July 6, 2012 (77 Fed. Reg. 40080). 

15 (3) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of the Interior. 

17 SEC. 3. REQUIREMENT TO IMPLEMENT PROPOSED OIL AND 

18 GAS LEASING PROGRAM: 2012–2017. 

19 (a) IN GENERAL.—Except as otherwise provided in 

20 this Act, the Secretary shall implement the Proposed Oil 

21 and Gas Leasing Program: 2012–2017 in accordance with 

22 the schedule for conducting oil and gas lease sales con23 tained in the Proposed Oil and Gas Leasing Program: 

24 2012–2017, the Outer Continental Shelf Lands Act (43 

25 U.S.C. 1331 et seq.), and other applicable law. 


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1 (b) MODIFIED AND ADDITIONAL LEASE SALES.— 

2 Notwithstanding the schedule of lease sales in the Pro3 posed Oil and Gas Leasing Program: 2012–2017, the Sec4 retary shall conduct under the Outer Continental Shelf 

5 Lands Act (43 U.S.C. 1331 et seq.) oil and gas lease sales 

6 in OCS Planning Areas as specified in the following table, 

7 during the year specified in the table for each lease sale: 

Lease Sale No. OCS Planning Area Year 

212 Chukchi Sea ........................ 2013

217 Beaufort Sea ....................... 2016

220 Mid-Atlantic ........................ 2013

221 Chukchi Sea ........................ 2014

225 Eastern Gulf of Mexico ...... 2013

226 Eastern Gulf of Mexico ...... 2016

227 Central Gulf of Mexico ....... 2013

228 Southern California ............ 2014

229 Western Gulf of Mexico ...... 2012

230 Mid-Atlantic ........................ 2014

231 Central Gulf of Mexico ....... 2014

233 Western Gulf of Mexico ...... 2013

234 Eastern Gulf of Mexico ...... 2015

235 Central Gulf of Mexico ....... 2015

237 Chukchi Sea ........................ 2016

238 Western Gulf of Mexico ...... 2014

241 Central Gulf of Mexico ....... 2016

242 Beaufort Sea ....................... 2014

243 Southern California ............ 2017

244 Cook Inlet ........................... 2013

245 Mid-Atlantic ........................ 2015

246 Western Gulf ....................... 2015

247 Central Gulf of Mexico ....... 2017

248 Western Gulf of Mexico ...... 2016

249 Southern California (existing infrastructure sale) ... 2013

250 Mid-Atlantic ........................ 2017. 

8 (c) LEASE SALES DESCRIBED.—For purposes of sub9 section (b)— 

10 (1) lease sale numbers 225, 226, 227, 229, 231, 

11 233, 235, 237, 238, 241, 242, 244, 246, 247, and 

12 248 are lease sales proposed in, and shall be con13 ducted in accordance with, the Proposed Oil and Gas 


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1 Leasing Program: 2012–2017, except each lease sale 

2 shall be conducted in the year specified for the sale 

3 in the table under subsection (b); 

4 (2) lease sale numbers 212, 217, 220, 221, 228, 

5 230, 234, 243, and 245 are sales proposed in, and 

6 shall be conducted in accordance with, the Draft 

7 Proposed Outer Continental Shelf (OCS) Oil and 

8 Gas Leasing Program 2010–2015 (January 2009), 

9 except each lease sale shall be conducted in the year 

10 specified for the sale in the table under subsection 

11 (b); and 

12 (3) lease sale number 250 shall be conducted— 

13 (A) for lease tracts in the OCS Planning 

14 Area and Mid-Atlantic OCS Planning Area, re15 spectively, by and at the discretion of the Sec16 retary, subject to subparagraph (C); 

17 (B) in the year specified for the lease sale 

18 in the table under subsection (b); and 

19 (C) in accordance with the other provisions 

20 of this Act. 

21 SEC. 4. SOUTHERN CALIFORNIA EXISTING INFRASTRUC22 TURE LEASE SALE. 

23 (a) IN GENERAL.—In the case of lease sale number 

24 249, the Secretary shall offer for sale leases of tracts in 

25 the Santa Maria and Santa Barbara or Ventura Basins 


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1 of the Southern California OCS Planning Area as soon 

2 as practicable, but not later than December 31, 2013. 

3 (b) USE OF EXISTING STRUCTURES OR ONSHORE4 BASED DRILLING.—The Secretary shall include in leases 

5 offered for sale under lease sale numbers 228, 243, and 

6 249 such terms and conditions as are necessary to require 

7 that development and production may occur only from off8 shore infrastructure in existence on the date of the enact9 ment of this Act or from onshore-based drilling unless, not 

10 later than 1 year after the date of the next scheduled 

11 Southern California lease sale, the Governor of the State 

12 of California requests the Secretary to conduct an area13 wide sale. 

14 SEC. 5. REVISED MAP OF THE MID-ATLANTIC PLANNING 

15 AREA. 

16 (a) DEFINITION OF MID-ATLANTIC STATE.—In this 

17 section, the term ‘‘Mid-Atlantic State’’ means each of the 

18 States of Delaware, Maryland, North Carolina, and Vir19 ginia. 

20 (b) REVISION OF MAP.—Subject to subsection (c), 

21 the Secretary shall revise the Bureau of Ocean Energy 

22 Management, Regulation and Enforcement map entitled 

23 ‘‘Atlantic NAD 83 Federal Outer Continental Shelf (OCS) 

24 Administrative Boundaries’’ and dated January 2010 to 

25 ensure that the square footage of the leasable area in the 


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1 Mid-Atlantic planning area is directly proportional to the 

2 length of the tidal shoreline of the Mid-Atlantic States, 

3 as determined using the information on tidal shorelines 

4 provided in the document published by the National Oce5 anic and Atmospheric Administration entitled ‘‘The Coast6 line of the United States’’ and numbered NOAA/PA 

7 71046 (1975). 

8 (c) LIMITATION.—Nothing in this section affects the 

9 boundary of Lease Sale 220. 

10 SEC. 6. NATIONAL DEFENSE. 

11 (a) NATIONAL DEFENSE AREAS.—This Act shall not 

12 affect the authority of the Secretary of Defense, with the 

13 approval of the President, to designate national defense 

14 areas on the outer Continental Shelf pursuant to section 

15 12(d) of the Outer Continental Shelf Lands Act (43 

16 U.S.C. 1341(d)). 

17 (b) PROHIBITION ON CONFLICTS WITH MILITARY

18 OPERATIONS.—No person may engage in any exploration, 

19 development, or production of oil or natural gas on the 

20 Outer Continental Shelf under a lease issued under this 

21 Act that would conflict with any military operation, as de22 termined in accordance with— 

23 (1) the Memorandum of Agreement between the 

24 Department of Defense and the Department of the 


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1 Interior on Mutual Concerns on the Outer Conti2 nental Shelf signed July 20, 1983; and 

3 (2) any revision or replacement for that agree4 ment that is agreed to by the Secretary of Defense 

5 and the Secretary of the Interior after that date but 

6 before the date of issuance of the lease under which 

7 the exploration, development, or production is con8 ducted. 

9 SEC. 7. ENVIRONMENTAL IMPACT STATEMENT REQUIRE10 MENT. 

11 (a) IN GENERAL.—For purposes of this Act and to 

12 conduct lease sales in accordance with the lease sale sched13 ule established by this Act, the Secretary shall prepare a 

14 multisale environmental impact statement under section 

15 102 of the National Environmental Policy Act of 1969 (42 

16 U.S.C. 4332) for all lease sales required under this Act 

17 that are not included in the Proposed Oil and Gas Leasing 

18 Program: 2012–2017. 

19 (b) ACTIONS TO BE CONSIDERED.—Notwithstanding 

20 section 102 of the National Environmental Policy Act of 

21 1969 (42 U.S.C. 4332), in the statement described in sub22 section (a)— 

23 (1) the Secretary is not required to identify 

24 nonleasing alternative courses of action or to analyze 


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1 the environmental effects of alternative courses of 

2 action; and 

3 (2) the Secretary shall only— 

4 (A) identify a preferred action for leasing 

5 and not more than 1 alternative leasing pro6 posal; and 

7 (B) analyze the environmental effects and 

8 potential mitigation measures for the preferred 

9 action and the alternative leasing proposal. 

10 SEC. 8. EASTERN GULF OF MEXICO PROTECTIONS. 

11 Nothing in this Act affects restrictions on oil and gas 

12 leasing under the Gulf of Mexico Energy Security Act of 

13 2006 (43 U.S.C. 1331 note; Public Law 109–432). 

14 SEC. 9. AREA-WIDE LEASE SALES. 

15 Except as provided in sections 4, 6, and 8, and except 

16 as deferred under subsistence deferral in the Barrow vicin17 ity under the Proposed Oil and Gas Leasing Program: 

18 2012–2017, all lease sales conducted pursuant to this Act 

19 shall be area-wide lease sales. 

20 SEC. 10. COASTAL STATE REVENUE SHARING FOR OUTER 

21 CONTINENTAL SHELF ENERGY SOURCES. 

22 (a) IN GENERAL.— 

23 (1) FISCAL YEARS 2012 THROUGH 2022.—Not24 withstanding section 9 of the Outer Continental 

25 Shelf Lands Act (43 U.S.C. 1338) and subject to 


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1 the other provisions of this section, for each of fiscal 

2 years 2012 through 2022, the Secretary of the 

3 Treasury shall deposit in a special account in the 

4 Treasury, and the Secretary of the Interior shall dis5 burse, 37.5 percent of all revenues derived from all 

6 rentals, royalties, bonus bids, and other sums due 

7 and payable to the United States from outer Conti8 nental Shelf areas not scheduled for lease sale under 

9 Proposed Oil and Gas Leasing Program: 2012–2017 

10 to coastal States and coastal political subdivisions in 

11 accordance with subsection (b). 

12 (2) SUBSEQUENT FISCAL YEARS.—Notwith13 standing section 9 of the Outer Continental Shelf 

14 Lands Act (43 U.S.C. 1338) and subject to the 

15 other provisions of this section, for fiscal year 2023 

16 and each subsequent fiscal year, the Secretary of the 

17 Treasury shall deposit in a special account in the 

18 Treasury, and the Secretary of the Interior shall dis19 burse, 37.5 percent of all revenues derived from all 

20 rentals, royalties, bonus bids, and other sums due 

21 and payable to the United States from outer Conti22 nental Shelf areas to coastal States and coastal po23 litical subdivisions in accordance with subsection (b). 

24 (b) ALLOCATION AMONG COASTAL STATES AND

25 COASTAL POLITICAL SUBDIVISIONS.— 


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1 (1) IN GENERAL.—Subject to paragraph (2), 

2 for each fiscal year, the amount made available 

3 under subsection (a) from any lease shall be allo4 cated to each coastal State in amounts (based on a 

5 formula established by the Secretary by regulation) 

6 that are inversely proportional to the respective dis7 tances between the point on the coastline of each 

8 coastal State that is closest to the geographic center 

9 of the applicable leased tract and the geographic 

10 center of the leased tract. 

11 (2) PAYMENTS TO COASTAL POLITICAL SUB12 DIVISIONS.— 

13 (A) IN GENERAL.—The Secretary shall pay 

14 25 percent of the allocable share of each coastal 

15 State, as determined under paragraph (1), to 

16 the coastal political subdivisions of the coastal 

17 State. 

18 (B) ALLOCATION.—The amount paid by 

19 the Secretary to coastal political subdivisions 

20 shall be allocated to each coastal political sub21 division in accordance with subparagraphs (B), 

22 (C), and (E) of section 31(b)(4) of the Outer 

23 Continental Shelf Lands Act (43 U.S.C. 

24 1356a(b)(4)). 


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1 (c) ADMINISTRATION.—The Secretary shall ensure 

2 that revenues from all sources of renewable and nonrenew3 able energy leased and produced from any outer Conti4 nental Shelf area are distributed among coastal States and 

5 coastal political subdivisions in accordance with this sec6 tion. 

7 (d) ADDITIONAL REVENUES.—Revenues made avail8 able to coastal States and coastal political subdivisions 

9 under this section shall be in addition to any revenues 

10 made available to Gulf producing States and political sub11 divisions under the Gulf of Mexico Energy Security Act 

12 of 2006 (43 U.S.C. 1331 note; Public Law 109–432). 

13 (e) REPEAL OF LIMITATIONS ON AMOUNT OF DIS14 TRIBUTED QUALIFIED OUTER CONTINENTAL SHELF

15 REVENUES.— 

16 (1) IN GENERAL.—Section 105 of the Gulf of 

17 Mexico Energy Security Act of 2006 (43 U.S.C. 

18 1331 note; Public Law 109–432) is amended by 

19 striking subsection (f). 

20 (2) EFFECTIVE DATE.—The amendment made 

21 by paragraph (1) takes effect on the date that is 10 

22 years after the date of enactment of this Act. 

Æ 


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