II 

Calendar No. 492 

111TH CONGRESS 

2D SESSION S. 3516 

[Report No. 111–236] 

To amend the Outer Continental Shelf Lands Act to reform the management 

of energy and mineral resources on the Outer Continental Shelf, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2010 

Mr. BINGAMAN (for himself, Ms. MURKOWSKI, Mr. DORGAN, and Ms. 

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

JULY 28, 2010 

Reported by Mr. BINGAMAN, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To amend the Outer Continental Shelf Lands Act to reform 

the management of energy and mineral resources on 

the Outer Continental Shelf, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Outer Continental Shelf Reform Act of 2010’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

Sec. 4. National policy for the outer Continental Shelf. 

Sec. 5. Structural reform of outer Continental Shelf program management. 

Sec. 6. Safety, environmental, and financial reform of the Outer Continental 

Shelf Lands Act. 

Sec. 7. Reform of other laws. 

Sec. 8. Savings provisions. 

Sec. 9. Budgetary effects. 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

Sec. 4. National policy for the outer Continental Shelf. 

Sec. 5. Structural reform of outer Continental Shelf program management. 

Sec. 6. Safety, environmental, and financial reform of the Outer Continental 

Shelf Lands Act. 

Sec. 7. Study on the effect of the moratoria on new deepwater drilling in the Gulf 

of Mexico on employment and small businesses. 

Sec. 8. Reform of other law. 

Sec. 9. Safer oil and gas production. 

Sec. 10. National Commission on Outer Continental Shelf Oil Spill Prevention. 

Sec. 11. Classification of offshore systems. 

Sec. 12. Savings provisions. 

Sec. 13. Budgetary effects. 

6 SEC. 2. PURPOSES. 

7 The purposes of this Act are— 

8 (1) to rationalize and reform the responsibilities 

9 of the Secretary of the Interior with respect to the 

10 management of the outer Continental Shelf in order 

11 to improve the management, oversight, account12 ability, safety, and environmental protection of all 

13 the resources on the outer Continental Shelf; 


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1 (2) to provide independent development and en2 forcement of safety and environmental laws (includ3 ing regulations) governing— 

4 (A) energy development and mineral ex5 traction activities on the outer Continental 

6 Shelf; and 

7 (B) related offshore activities; and 

8 (3) to ensure a fair return to the taxpayer 

9 from, and independent management of, royalty and 

10 revenue collection and disbursement activities from 

11 mineral and energy resources. 

12 SEC. 3. DEFINITIONS. 

13 In this Act: 

14 (1) DEPARTMENT.—The term ‘‘Department’’ 

15 means the Department of the Interior. 

16 (2) OUTER CONTINENTAL SHELF.—The term 

17 ‘‘outer Continental Shelf’’ has the meaning given the 

18 term in section 2 of the Outer Continental Shelf 

19 Lands Act (43 U.S.C. 1331). 

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

21 the Secretary of the Interior. 

22 SEC. 4. NATIONAL POLICY FOR THE OUTER CONTINENTAL 

23 SHELF. 

24 Section 3 of the Outer Continental Shelf Lands Act 

25 (43 U.S.C. 1332) is amended— 


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1 (1) by striking paragraph (3) and inserting the 

2 following: 

3 ‘‘(3) the outer Continental Shelf is a vital na4 tional resource reserve held by the Federal Govern5 ment for the public, which should be managed in a 

6 manner that recognizes— 

7 ‘‘(A) the need of the United States for do8 mestic sources of energy, food, minerals, and 

9 other resources; 

10 ‘‘(B) the potential impacts of development 

11 of those resources on the marine and coastal 

12 environment and on human health and safety; 

13 and 

14 ‘‘(C) the long-term economic value to the 

15 United States of the balanced and orderly man16 agement of those resources that safeguards the 

17 environment and respects the multiple values 

18 and uses of the outer Continental Shelf;’’; 

19 (1) by striking paragraph (3) and inserting the 

20 following: 

21 ‘‘(3) the outer Continental Shelf is a vital na22 tional resource reserve held by the Federal Govern23 ment for the public, which should be managed in a 

24 manner that— 


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1 ‘‘(A) recognizes the need of the United 

2 States for domestic sources of energy, food, min3 erals, and other resources; 

4 ‘‘(B) minimizes the potential impacts of de5 velopment of those resources on the marine and 

6 coastal environment and on human health and 

7 safety; and 

8 ‘‘(C) acknowledges the long-term economic 

9 value to the United States of the balanced and 

10 orderly management of those resources that safe11 guards the environment and respects the multiple 

12 values and uses of the outer Continental Shelf;’’; 

13 (2) in paragraph (4)(C), by striking the period 

14 at the end and inserting a semicolon; 

15 (3) in paragraph (5), by striking ‘‘; and’’ and 

16 inserting a semicolon; 

17 (4) by redesignating paragraph (6) as para18 graph (7); 

19 (5) by inserting after paragraph (5) the fol20 lowing: 

21 ‘‘(6) exploration, development, and production 

22 of energy and minerals on the outer Continental 

23 Shelf should be allowed only when those activities 

24 can be accomplished in a manner that provides rea25 sonable assurance of adequate protection against 


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1 harm to life, health, the environment, property, or 

2 other users of the waters, seabed, or subsoil; and’’; 

3 and 

4 (6) in paragraph (7) (as so redesignated)— 

5 (A) by striking ‘‘should be’’ and inserting 

6 ‘‘shall be’’; and 

7 (B) by adding ‘‘best available’’ after 

8 ‘‘using’’. 

9 SEC. 5. STRUCTURAL REFORM OF OUTER CONTINENTAL 

10 SHELF PROGRAM MANAGEMENT. 

11 (a) IN GENERAL.—The Outer Continental Shelf 

12 Lands Act (43 U.S.C. 1331 et seq.) is amended by adding 

13 to the end the following: 

14 ‘‘SEC. 32. STRUCTURAL REFORM OF OUTER CONTINENTAL 

15 SHELF PROGRAM MANAGEMENT. 

16 ‘‘(a) LEASING, PERMITTING, AND REGULATION BU17 REAUS.— 

18 ‘‘(1) ESTABLISHMENT OF BUREAUS.— 

19 ‘‘(A) IN GENERAL.—Subject to the discre20 tion granted by Reorganization Plan Number 3 

21 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), 

22 the Secretary shall establish in the Department 

23 of the Interior not more than 2 bureaus to 

24 carry out the leasing, permitting, and safety 

25 and environmental regulatory functions vested 


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1 in the Secretary by this Act and the Federal Oil 

2 and Gas Royalty Management Act of 1982 (30 

3 U.S.C. 1701 et seq.) related to the outer Conti4 nental Shelf. 

5 ‘‘(B) CONFLICTS OF INTEREST.—In estab6 lishing the bureaus under subparagraph (A), 

7 the Secretary shall ensure, to the maximum ex8 tent practicable, that any potential organiza9 tional conflicts of interest related to leasing, 

10 revenue creation, environmental protection, and 

11 safety are eliminated. 

12 ‘‘(2) DIRECTOR.—Each bureau shall be headed 

13 by a Director, who shall be appointed by the Presi14 dent, by and with the advice and consent of the Sen15 ate. 

16 ‘‘(3) COMPENSATION.—Each Director shall be 

17 compensated at the rate provided for level V of the 

18 Executive Schedule under section 5316 of title 5, 

19 United States Code. 

20 ‘‘(4) QUALIFICATIONS.—Each Director shall be 

21 a person who, by reason of professional background 

22 and demonstrated ability and experience, is specially 

23 qualified to carry out the duties of the office. 

24 ‘‘(b) ROYALTY AND REVENUE OFFICE.— 


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1 ‘‘(1) ESTABLISHMENT OF OFFICE.—Subject to 

2 the discretion granted by Reorganization Plan Num3 ber 3 of 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), 

4 the Secretary shall establish in the Department of 

5 the Interior an office to carry out the royalty and 

6 revenue management functions vested in the Sec7 retary by this Act and the Federal Oil and Gas Roy8 alty Management Act of 1982 (30 U.S.C. 1701 et 

9 seq.). 

10 ‘‘(2) DIRECTOR.—The office established under 

11 paragraph (1) shall be headed by a Director, who 

12 shall be appointed by the President, by and with the 

13 advice and consent of the Senate. 

14 ‘‘(3) COMPENSATION.—The Director shall be 

15 compensated at the rate provided for level V of the 

16 Executive Schedule under section 5316 of title 5, 

17 United States Code. 

18 ‘‘(4) QUALIFICATIONS.—The Director shall be a 

19 person who, by reason of professional background 

20 and demonstrated ability and experience, is specially 

21 qualified to carry out the duties of the office. 

22 ‘‘(c) OCS SAFETY AND ENVIRONMENTAL ADVISORY

23 BOARD.— 

24 ‘‘(1) ESTABLISHMENT.—The Secretary shall es25 tablish, under the Federal Advisory Committee Act 


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1 (5 U.S.C. App.), an Outer Continental Shelf Safety 

2 and Environmental Advisory Board (referred to in 

3 this subsection as the ‘Board’), to provide the Sec4 retary and the Directors of the bureaus established 

5 under this section with independent peer-reviewed 

6 scientific and technical advice on safe and environ7 mentally compliant energy and mineral resource ex8 ploration, development, and production activities. 

9 ‘‘(2) MEMBERSHIP.— 

10 ‘‘(A) SIZE.— 

11 ‘‘(i) IN GENERAL.—The Board shall 

12 consist of not more than 12 members, cho13 sen to reflect a range of expertise in sci14 entific, engineering, management, and 

15 other disciplines related to safe and envi16 ronmentally compliant energy and mineral 

17 resource exploration, development, and 

18 production activities. 

19 ‘‘(ii) CONSULTATION.—The Secretary 

20 shall consult with the National Academy of 

21 Sciences and the National Academy of En22 gineering to identify potential candidates 

23 for membership on the Board. 

24 ‘‘(B) TERM.—The Secretary shall appoint 

25 Board members to staggered terms of not more 


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1 than 4 years, and shall not appoint a member 

2 for more than 2 consecutive terms. 

3 ‘‘(C) CHAIR.—The Secretary shall appoint 

4 the Chair for the Board. 

5 ‘‘(3) MEETINGS.—The Board shall— 

6 ‘‘(A) meet not less than 3 times per year; 

7 and 

8 ‘‘(B) at least once per year, shall host a 

9 public forum to review and assess the overall 

10 safety and environmental performance of outer 

11 Continental Shelf energy and mineral resource 

12 activities. 

13 ‘‘(4) REPORTS.—Reports of the Board shall— 

14 ‘‘(A) be submitted to Congress; and 

15 ‘‘(B) made available to the public in an 

16 electronically accessible form. 

17 ‘‘(5) TRAVEL EXPENSES.—Members of the 

18 Board, other than full-time employees of the Federal 

19 Government, while attending a meeting of the Board 

20 or while otherwise serving at the request of the Sec21 retary or the Director while serving away from their 

22 homes or regular places of business, may be allowed 

23 travel expenses, including per diem in lieu of subsist24 ence, as authorized by section 5703 of title 5, 


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1 United States Code, for individuals in the Federal 

2 Government serving without pay. 

3 ‘‘(d) SPECIAL PERSONNEL AUTHORITIES.— 

4 ‘‘(1) DIRECT HIRING AUTHORITY FOR CRITICAL

5 PERSONNEL.— 

6 ‘‘(A) IN GENERAL.—Notwithstanding sec7 tions 3104, 3304, and 3309 through 3318 of 

8 title 5, United States Code, the Secretary may, 

9 upon a determination that there is a severe 

10 shortage of candidates or a critical hiring need 

11 for particular positions, recruit and directly ap12 point highly qualified accountants, scientists, 

13 engineers, or critical technical personnel into 

14 the competitive service, as officers or employees 

15 of any of the organizational units established 

16 under this section. 

17 ‘‘(B) REQUIREMENTS.—In exercising the 

18 authority granted under subparagraph (A), the 

19 Secretary shall ensure that any action taken by 

20 the Secretary— 

21 ‘‘(i) is consistent with the merit prin22 ciples of chapter 23 of title 5, United 

23 States Code; and 


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1 ‘‘(ii) complies with the public notice 

2 requirements of section 3327 of title 5, 

3 United States Code. 

4 ‘‘(2) CRITICAL PAY AUTHORITY.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding sec6 tion 5377 of title 5, United States Code, and 

7 without regard to the provisions of that title 

8 governing appointments in the competitive serv9 ice or the Senior Executive Service and chap10 ters 51 and 53 of that title (relating to classi11 fication and pay rates), the Secretary may es12 tablish, fix the compensation of, and appoint in13 dividuals to critical positions needed to carry 

14 out the functions of any of the organizational 

15 units established under this section, if the Sec16 retary certifies that— 

17 ‘‘(i) the positions— 

18 ‘‘(I) require expertise of an ex19 tremely high level in a scientific or 

20 technical field; and 

21 ‘‘(II) any of the organizational 

22 units established in this section would 

23 not successfully accomplish an impor24 tant mission without such an indi25 vidual; and 


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1 ‘‘(ii) exercise of the authority is nec2 essary to recruit an individual exceptionally 

3 well qualified for the position. 

4 ‘‘(B) LIMITATIONS.—The authority grant5 ed under subparagraph (A) shall be subject to 

6 the following conditions: 

7 ‘‘(i) The number of critical positions 

8 authorized by subparagraph (A) may not 

9 exceed 40 at any 1 time in either of the 

10 bureaus established under this section. 

11 ‘‘(ii) The term of an appointment 

12 under subparagraph (A) may not exceed 4 

13 years. 

14 ‘‘(iii) An individual appointed under 

15 subparagraph (A) may not have been an 

16 employee of the Department of the Interior 

17 during the 2-year period prior to the date 

18 of appointment. 

19 ‘‘(iv) Total annual compensation for 

20 any individual appointed under subpara21 graph (A) may not exceed the highest total 

22 annual compensation payable at the rate 

23 determined under section 104 of title 3, 

24 United States Code. 


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1 ‘‘(v) An individual appointed under 

2 subparagraph (A) may not be considered 

3 to be an employee for purposes of sub4 chapter II of chapter 75 of title 5, United 

5 States Code. 

6 ‘‘(C) NOTIFICATION.—Each year, the Sec7 retary shall submit to Congress a notification 

8 that lists each individual appointed under this 

9 paragraph. 

10 ‘‘(3) REEMPLOYMENT OF CIVILIAN RETIR11 EES.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding part 

13 553 of title 5, Code of Federal Regulations (re14 lating to reemployment of civilian retirees to 

15 meet exceptional employment needs), or suc16 cessor regulations, the Secretary may approve 

17 the reemployment of an individual to a par18 ticular position without reduction or termi19 nation of annuity if the hiring of the individual 

20 is necessary to carry out a critical function of 

21 any of the organizational units established 

22 under this section for which suitably qualified 

23 candidates do not exist. 


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1 ‘‘(B) LIMITATIONS.—An annuitant hired 

2 with full salary and annuities under the author3 ity granted by subparagraph (A)— 

4 ‘‘(i) shall not be considered an em5 ployee for purposes of subchapter III of 

6 chapter 83 and chapter 84 of title 5, 

7 United States Code; 

8 ‘‘(ii) may not elect to have retirement 

9 contributions withheld from the pay of the 

10 annuitant; 

11 ‘‘(iii) may not use any employment 

12 under this paragraph as a basis for a sup13 plemental or recomputed annuity; and 

14 ‘‘(iv) may not participate in the Thrift 

15 Savings Plan under subchapter III of 

16 chapter 84 of title 5, United States Code. 

17 ‘‘(C) LIMITATION ON TERM.—The term of 

18 employment of any individual hired under sub19 paragraph (A) may not exceed an initial term 

20 of 2 years, with an additional 2-year appoint21 ment under exceptional circumstances. 

22 ‘‘(e) CONTINUITY OF AUTHORITY.—Subject to the 

23 discretion granted by Reorganization Plan Number 3 of 

24 1950 (64 Stat. 1262; 43 U.S.C. 1451 note), any reference 

25 in any law, rule, regulation, directive, or instruction, or 


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1 certificate or other official document, in force immediately 

2 prior to the date of enactment of this section— 

3 ‘‘(1) to the Minerals Management Service that 

4 pertains to any of the duties and authorities de5 scribed in this section shall be deemed to refer and 

6 apply to the appropriate bureaus and offices estab7 lished under this section; 

8 ‘‘(2) to the Director of the Minerals Manage9 ment Service that pertains to any of the duties and 

10 authorities described in this section shall be deemed 

11 to refer and apply to the Director of the bureau or 

12 office under this section to whom the Secretary has 

13 assigned the respective duty or authority; and 

14 ‘‘(3) to any other position in the Minerals Man15 agement Service that pertains to any of the duties 

16 and authorities described in this section shall be 

17 deemed to refer and apply to that same or equiva18 lent position in the appropriate bureau or office es19 tablished under this section.’’. 

20 (b) CONFORMING AMENDMENT.—Section 5316 of 

21 title 5, United States Code, is amended by striking ‘‘Direc22 tor, Bureau of Mines, Department of the Interior’’ and 

23 inserting the following: 

24 ‘‘Bureau Directors, Department of the Interior 

25 (2). 


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1 ‘‘Director, Royalty and Revenue Office, Depart2 ment of the Interior.’’. 

3 SEC. 6. SAFETY, ENVIRONMENTAL, AND FINANCIAL RE4 FORM OF THE OUTER CONTINENTAL SHELF 

5 LANDS ACT. 

6 (a) DEFINITIONS.—Section 2 of the Outer Conti7 nental Shelf Lands Act (43 U.S.C. 1331) is amended by 

8 adding at the end the following: 

9 ‘‘(r) SAFETY CASE.—The term ‘safety case’ means 

10 a body of evidence complete set of safety documentation 

11 that provides a basis for determining whether a system 

12 is adequately safe for a given application in a given envi13 ronment.’’. 

14 (b) ADMINISTRATION OF LEASING.—Section 5(a) of 

15 the Outer Continental Shelf Lands Act (43 U.S.C. 

16 1334(a)) is amended in the second sentence— 

17 (1) by striking ‘‘The Secretary may at any 

18 time’’ and inserting ‘‘The Secretary shall’’; and 

19 (2) by inserting after ‘‘provide for’’ the fol20 lowing: ‘‘operational safety, the protection of the ma21 rine and coastal environment,’’. 

22 (c) MAINTENANCE OF LEASES.—Section 6 of the 

23 Outer Continental Shelf Lands Act (43 U.S.C. 1335) is 

24 amended by adding at the end the following: 


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1 ‘‘(f) REVIEW OF BOND AND SURETY AMOUNTS.— 

2 Not later than May 1, 2011, and every 5 years thereafter, 

3 the Secretary shall— 

4 ‘‘(1) review the minimum bond amounts finan5 cial responsibility requirements for mineral leases 

6 under subsection (a)(11); and 

7 ‘‘(2) set any bonds, surety, or other evidence of 

8 financial responsibility required in amounts adequate 

9 adjust for inflation based on the Consumer Price 

10 Index for all Urban Consumers published by the Bu11 reau of Labor Statistics of the Department of Labor, 

12 and recommend to Congress any further changes to 

13 existing financial responsibility requirements nec14 essary to permit lessees to fulfill all obligations 

15 under this Act or the Oil Pollution Act of 1990 (33 

16 U.S.C. 2701 et seq.). 

17 ‘‘(g) PERIODIC FISCAL REVIEWS AND REPORTS.— 

18 ‘‘(1) ROYALTY RATES.— 

19 ‘‘(A) IN GENERAL.—Not later than 1 year 

20 after the date of enactment of this subsection 

21 and every 3 4 years thereafter, the Secretary 

22 shall carry out a review of, and prepare a re23 port that describes— 


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1 ‘‘(i) the royalty and rental rates in2 cluded in new offshore oil and gas leases 

3 and the rationale for the rates; 

4 ‘‘(ii) whether, in the view of the Sec5 retary, the royalty and rental rates de6 scribed in subparagraph (A) would yield a 

7 fair return to the public while promoting 

8 the production of oil and gas resources in 

9 a timely manner; and 

10 ‘‘(iii) whether, based on the review, 

11 the Secretary intends to modify the royalty 

12 or rental rates. 

13 ‘‘(B) PUBLIC PARTICIPATION.—In carrying 

14 out a review and preparing a report under sub15 paragraph (A), the Secretary shall provide to 

16 the public an opportunity to participate. 

17 ‘‘(2) COMPARATIVE REVIEW OF FISCAL SYS18 TEM.— 

19 ‘‘(A) IN GENERAL.—Not later than 2 years 

20 1 year after the date of enactment of this sub21 section and every 5 4 years thereafter, the Sec22 retary in consultation with the Secretary of the 

23 Treasury, shall carry out a comprehensive re24 view of all components of the Federal offshore 

25 oil and gas fiscal system, including requireVerDate Mar 15 2010 23:37 Jul 28, 2010 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S3516.RS S3516

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1 ments for bonus bids, rental rates, royalties, oil 

2 and gas taxes, income taxes and other signifi3 cant financial elements, and oil and gas fees. 

4 ‘‘(B) INCLUSIONS.—The review shall in5 clude— 

6 ‘‘(i) information and analyses com7 paring the offshore bonus bids, rents, roy8 alties, taxes, and fees of the Federal Gov9 ernment to the offshore bonus bids, rents, 

10 royalties, taxes, and fees of other resource 

11 owners (including States and foreign coun12 tries); and 

13 ‘‘(ii) an assessment of the overall off14 shore oil and gas fiscal system in the 

15 United States, as compared to foreign 

16 countries. 

17 ‘‘(C) INDEPENDENT ADVISORY COM18 MITTEE.—In carrying out a review under this 

19 paragraph, the Secretary shall convene and seek 

20 the advice of an independent advisory com21 mittee comprised of oil and gas and fiscal ex22 perts from States, Indian tribes, academia, the 

23 energy industry, and appropriate nongovern24 mental organizations. 


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1 ‘‘(D) REPORT.—The Secretary shall pre2 pare a report that contains— 

3 ‘‘(i) the contents and results of the re4 view carried out under this paragraph for 

5 the period covered by the report; and 

6 ‘‘(ii) any recommendations of the Sec7 retary and the Secretary of the Treasury 

8 based on the contents and results of the 

9 review. 

10 ‘‘(E) COMBINED REPORT.—The Secretary 

11 may combine the reports required by paragraphs 

12 (1) and (2)(D) into 1 report. 

13 ‘‘(3) REPORT DEADLINE.—Not later than 30 

14 days after the date on which the Secretary completes 

15 each report under this subsection, the Secretary 

16 shall submit copies of the report to— 

17 ‘‘(A) the Committee on Energy and Nat18 ural Resources of the Senate; 

19 ‘‘(B) the Committee on Finance of the 

20 Senate; 

21 ‘‘(C) the Committee on Natural Resources 

22 of the House of Representatives; and 

23 ‘‘(D) the Committee on Ways and Means 

24 of the House of Representatives.’’. 


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1 (d) LEASES, EASEMENTS, AND RIGHTS-OF-WAY.— 

2 Section 8 of the Outer Continental Shelf Lands Act (43 

3 U.S.C. 1337) is amended by striking subsection (d) and 

4 inserting the following: 

5 ‘‘(d) DISQUALIFICATION FROM BIDDING.—No bid 

6 for a lease may be submitted by any entity that the Sec7 retary finds, after prior public notice and opportunity for 

8 a hearing— 

9 ‘‘(1) is not meeting due diligence, safety, or en10 vironmental requirements on other leases; or 

11 ‘‘(2)(A) is a responsible party for a vessel or a 

12 facility from which oil is discharged, for purposes of 

13 section 1002 of the Oil Pollution Act of 1990 (33 

14 U.S.C. 2702); and 

15 ‘‘(B) has failed to meet the obligations of the 

16 responsible party under that Act to provide com17 pensation for covered removal costs and damages.’’. 

18 (e) EXPLORATION PLANS.—Section 11 of the Outer 

19 Continental Shelf Lands Act (43 U.S.C. 1340) is amend20 ed— 

21 (1) in subsection (c)— 

22 (A) in the fourth sentence of paragraph 

23 (1), by striking ‘‘within thirty days of its sub24 mission’’ and inserting ‘‘by the deadline de25 scribed in paragraph (5)’’; 


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1 (B) by striking paragraph (3) and insert2 ing the following: 

3 ‘‘(3) MINIMUM REQUIREMENTS.— 

4 ‘‘(A) IN GENERAL.—An exploration plan 

5 submitted under this subsection shall include, 

6 in such degree of detail as the Secretary by reg7 ulation may require— 

8 ‘‘(i) a complete description and sched9 ule of the exploration activities to be un10 dertaken; 

11 ‘‘(ii) a description of the equipment to 

12 be used for the exploration activities, in13 cluding— 

14 ‘‘(I) a description of the drilling 

15 unit; 

16 ‘‘(II) a statement of the design 

17 and condition of major safety-related 

18 pieces of equipment; 

19 ‘‘(III) a description of any new 

20 technology to be used; and 

21 ‘‘(IV) a statement demonstrating 

22 that the equipment to be used meets 

23 the best available technology require24 ments under section 21(b); 


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1 ‘‘(iii) a map showing the location of 

2 each well to be drilled; 

3 ‘‘(iv)(I) a scenario for the potential 

4 blowout of the well involving the highest 

5 potential expected volume of liquid hydro6 carbons; and 

7 ‘‘(II) a complete description of a re8 sponse plan to control the blowout and 

9 manage the accompanying discharge of hy10 drocarbons, including— 

11 ‘‘(aa) the technology and timeline 

12 for regaining control of the well; and 

13 ‘‘(bb) the strategy, organization, 

14 and resources necessary to be used to 

15 avoid harm to the environment and 

16 human health from hydrocarbons; and 

17 ‘‘(v) any other information determined 

18 to be relevant by the Secretary. 

19 ‘‘(B) DEEPWATER WELLS.— 

20 ‘‘(i) IN GENERAL.—Before conducting 

21 exploration activities in water depths 

22 greater than 500 feet, the holder of a lease 

23 shall submit to the Secretary for approval 

24 a deepwater operations plan prepared by 


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1 the lessee in accordance with this subpara2 graph. 

3 ‘‘(ii) TECHNOLOGY REQUIREMENTS.— 

4 A deepwater operations plan under this 

5 subparagraph shall be based on the best 

6 available technology to ensure safety in 

7 carrying out the exploration activity and 

8 the blowout response plan. 

9 ‘‘(iii) SYSTEMS ANALYSIS RE10 QUIRED.—The Secretary shall not approve 

11 a deepwater operations plan under this 

12 subparagraph unless the plan includes a 

13 technical systems analysis of— 

14 ‘‘(I) the safety of the proposed 

15 exploration activity; 

16 ‘‘(II) the blowout prevention 

17 technology; and 

18 ‘‘(III) the blowout and spill re19 sponse plans.’’; and 

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

21 ‘‘(5) DEADLINE FOR APPROVAL.— 

22 ‘‘(A) IN GENERAL.—In the case of a lease 

23 issued under a sale held after March 17, 2010, 

24 the deadline for approval of an exploration plan 


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1 referred to in the fourth sentence of paragraph 

2 (1) is— 

3 ‘‘(i) the date that is 90 days after the 

4 date on which the plan or the modifica5 tions to the plan are submitted; or 

6 ‘‘(ii) the date that is not later than an 

7 additional 180 days after the deadline de8 scribed in clause (i), if the Secretary 

9 makes a finding that additional time is 

10 necessary to complete any environmental, 

11 safety, or other reviews. 

12 ‘‘(B) EXISTING LEASES.—In the case of a 

13 lease issued under a sale held on or before 

14 March 17, 2010, the Secretary, with the con15 sent of the holder of the lease, may extend the 

16 deadline applicable to the lease for such addi17 tional time as the Secretary determines is nec18 essary to complete any environmental, safety, or 

19 other reviews.’’; 

20 (2) by resdesignating subsections (e) through 

21 (h) as subsections (f) through (i), respectively; and 

22 (3) by striking subsection (d) and inserting the 

23 following: 

24 ‘‘(d) DRILLING PERMITS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall, by 

2 regulation, require that any lessee operating under 

3 an approved exploration plan obtain a permit— 

4 ‘‘(A) before the lessee drills a well in ac5 cordance with the plan; and 

6 ‘‘(B) before the lessee significantly modi7 fies the well design originally approved by the 

8 Secretary. 

9 ‘‘(2) ENGINEERING REVIEW REQUIRED.—The 

10 Secretary may not grant any drilling permit until 

11 the date of completion of a full engineering review 

12 of the well system, including a system by not less 

13 than 2 agency engineers, including a written deter14 mination that— 

15 ‘‘(A) critical safety systems (including 

16 blowout prevention) will use best available tech17 nology; and 

18 ‘‘(B) blowout prevention systems will in19 clude redundancy and remote triggering capa20 bility. 

21 ‘‘(3) MODIFICATION REVIEW REQUIRED.—The 

22 Secretary may not approve any modification of a 

23 permit without a determination, after an additional 

24 engineering review, that the modification will not deVerDate Mar 15 2010 23:37 Jul 28, 2010 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S3516.RS S3516

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1 grade compromise the safety of the well system pre2 viously approved. 

3 ‘‘(4) OPERATOR SAFETY AND ENVIRONMENTAL

4 MANAGEMENT REQUIRED.—The Secretary may not 

5 grant any drilling permit or modification of the per6 mit until the date of completion and approval of a 

7 safety and environmental management plan that— 

8 ‘‘(A) is to be used by the operator during 

9 all well operations; and 

10 ‘‘(B) includes— 

11 ‘‘(i) a description of the expertise and 

12 experience level of crew members who will 

13 be present on the rig; and 

14 ‘‘(ii) designation of at least 2 environ15 mental and safety managers that— 

16 ‘‘(I) are employees of the oper17 ator; 

18 ‘‘(II) would be present on the rig 

19 at all times; and 

20 ‘‘(III) have overall responsibility 

21 for the safety and environmental man22 agement of the well system and spill 

23 response plan; and 

24 ‘‘(C) not later than May 1, 2012, requires 

25 that all employees on the rig meet the training 


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1 and experience requirements under section 

2 21(b)(4). 

3 ‘‘(e) DISAPPROVAL OF EXPLORATION PLAN.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall dis5 approve an exploration plan submitted under this 

6 section if the Secretary determines that, because of 

7 exceptional geological conditions in the lease areas, 

8 exceptional resource values in the marine or coastal 

9 environment, or other exceptional circumstances, 

10 that— 

11 ‘‘(A) implementation of the exploration 

12 plan would probably cause serious harm or 

13 damage to life (including fish and other aquatic 

14 life), property, mineral deposits, national secu15 rity or defense, or the marine, coastal or human 

16 environments; 

17 ‘‘(B) the threat of harm or damage would 

18 not disappear or decrease to an acceptable ex19 tent within a reasonable period of time; and 

20 ‘‘(C) the advantages of disapproving the 

21 exploration plan outweigh the advantages of ex22 ploration. 

23 ‘‘(2) COMPENSATION.—If an exploration plan is 

24 disapproved under this subsection, the provisions of 

25 subparagraphs (B) and (C) of section 25(h)(2) shall 


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1 apply to the lease and the plan or any modified plan, 

2 except that the reference in section 25(h)(2)(C) to a 

3 development and production plan shall be considered 

4 to be a reference to an exploration plan.’’. 

5 (f) OUTER CONTINENTAL SHELF LEASING PRO6 GRAM.—Section 18 of the Outer Continental Shelf Lands 

7 Act (43 U.S.C. 1344) is amended— 

8 (1) in subsection (a)— 

9 (A) in the second sentence, by inserting 

10 after ‘‘national energy needs’’ the following: 

11 ‘‘and the need for the protection of the marine 

12 and coastal environment and resources’’; 

13 (B) in paragraph (1), by striking ‘‘con14 siders’’ and inserting ‘‘gives equal consideration 

15 to’’; and 

16 (C) in paragraph (3), by striking ‘‘, to the 

17 maximum extent practicable,’’; 

18 (2) in subsection (b)— 

19 (A) in paragraph (3), by striking ‘‘and’’ at 

20 the end; 

21 (B) in paragraph (4), by striking the pe22 riod at the end and inserting ‘‘; and’’; and 

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

24 ‘‘(5) provide technical review and oversight of 

25 the exploration plan and a systems review of the 


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1 safety of the well design and other operational deci2 sions; 

3 ‘‘(6) conduct regular and thorough safety re4 views and inspections, and; 

5 ‘‘(7) enforce all applicable laws (including regu6 lations).’’; 

7 (3) in the second sentence of subsection (d)(2), 

8 by inserting ‘‘, the head of an interested Federal 

9 agency,’’ after ‘‘Attorney General’’; 

10 (4) in the first sentence of subsection (g), by in11 serting before the period at the end the following: ‘‘, 

12 including existing inventories and mapping of ma13 rine resources previously undertaken by the Depart14 ment of the Interior and the National Oceanic and 

15 Atmospheric Administration, information provided 

16 by the Department of Defense, and other available 

17 data regarding energy or mineral resource potential, 

18 navigation uses, fisheries, aquaculture uses, rec19 reational uses, habitat, conservation, and military 

20 uses on the outer Continental Shelf’’; and 

21 (5) by adding at the end the following: 

22 ‘‘(i) RESEARCH AND DEVELOPMENT.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall carry 

24 out a program of research and development to en25 sure the continued improvement of methodologies for 


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1 characterizing resources of the outer Continental 

2 Shelf and conditions that may affect the ability to 

3 develop and use those resources in a safe, sound, 

4 and environmentally responsible manner. 

5 ‘‘(2) INCLUSIONS.—Research and development 

6 activities carried out under paragraph (1) may in7 clude activities to provide accurate estimates of en8 ergy and mineral reserves and potential on the outer 

9 Continental Shelf and any activities that may assist 

10 in filling gaps in environmental data needed to de11 velop each leasing program under this section. 

12 ‘‘(3) LEASING ACTIVITIES.—Research and de13 velopment activities carried out under paragraph (1) 

14 shall not be considered to be leasing or pre-leasing 

15 activities for purposes of this Act.’’. 

16 (g) ENVIRONMENTAL STUDIES.—Section 20 of the 

17 Outer Continental Shelf Lands Act (43 U.S.C. 1346) is 

18 amended— 

19 (1) by redesignating subsections (a) through (f) 

20 as subsections (b) through (g), respectively; 

21 (2) by inserting before subsection (b) (as so re22 designated) the following: 

23 ‘‘(a) COMPREHENSIVE AND INDEPENDENT STUD24 IES.— 


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

2 and carry out programs for the collection, evalua3 tion, assembly, analysis, and dissemination of envi4 ronmental and other resource data that are relevant 

5 to carrying out the purposes of this Act. 

6 ‘‘(2) SCOPE OF RESEARCH.—The programs 

7 under this subsection shall include— 

8 ‘‘(A) the gathering of baseline data in 

9 areas before energy or mineral resource devel10 opment activities occur; 

11 ‘‘(B) ecosystem research and monitoring 

12 studies to support integrated resource manage13 ment decisions; and 

14 ‘‘(C) the improvement of scientific under15 standing of the fate, transport, and effects of 

16 discharges and spilled materials, including deep 

17 water hydrocarbon spills, in the marine environ18 ment. 

19 ‘‘(3) USE OF DATA.—The Secretary shall en20 sure that information from the studies carried out 

21 under this section— 

22 ‘‘(A) informs the management of energy 

23 and mineral resources on the outer Continental 

24 Shelf including any areas under consideration 

25 for oil and gas leasing; and 


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1 ‘‘(B) contributes to a broader coordination 

2 of energy and mineral resource development ac3 tivities within the context of best available 

4 science. 

5 ‘‘(4) INDEPENDENCE.—The Secretary shall cre6 ate a program within the appropriate bureau estab7 lished under section 32 that shall— 

8 ‘‘(A) be programmatically separate and 

9 distinct from the leasing program; 

10 ‘‘(B) carry out the environmental studies 

11 under this section; 

12 ‘‘(C) conduct additional environmental 

13 studies relevant to the sound management of 

14 energy and mineral resources on the outer Con15 tinental Shelf; 

16 ‘‘(D) provide for external scientific review 

17 of studies under this section, including through 

18 appropriate arrangements with the National 

19 Academy of Sciences; and 

20 ‘‘(E) subject to the restrictions of sub21 sections (g) and (h) of section 18, make avail22 able to the public studies conducted and data 

23 gathered under this section.’’; and 


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1 (3) in the first sentence of subsection (b)(1) (as 

2 so redesignated), by inserting ‘‘every 3 years’’ after 

3 ‘‘shall conduct’’. 

4 (h) SAFETY RESEARCH AND REGULATIONS.—Section 

5 21 of the Outer Continental Shelf Lands Act (43 U.S.C. 

6 1347) is amended— 

7 (1) in the first sentence of subsection (a), by 

8 striking ‘‘Upon the date of enactment of this sec9 tion,’’ and inserting ‘‘Not later than May 1, 2011, 

10 and every 3 years thereafter,’’; 

11 (2) by striking subsection (b) and inserting the 

12 following: 

13 ‘‘(b) BEST AVAILABLE TECHNOLOGIES AND PRAC14 TICES.— 

15 ‘‘(1) IN GENERAL.—In exercising respective re16 sponsibilities under this Act, the Secretary, and the 

17 Secretary of the Department in which the Coast 

18 Guard is operating, shall require, on all new drilling 

19 and production operations and, to the maximum ex20 tent practicable, on existing operations, the use of 

21 the best available and safest technologies and prac22 tices, if the failure of equipment would have a sig23 nificant effect on safety, health, or the environment. 

24 ‘‘(2) IDENTIFICATION OF BEST AVAILABLE

25 TECHNOLOGIES.—Not later than May 1, 2011, and 


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1 not later than every 3 years thereafter, the Secretary 

2 shall identify and publish an updated list of best 

3 available technologies for key areas of well design 

4 and operation, including blowout prevention and 

5 blowout and oil spill response. 

6 ‘‘(3) SAFETY CASE.—Not later than May 1, 

7 2011, the Secretary shall promulgate regulations re8 quiring a safety case be submitted along with each 

9 new application for a permit to drill on the outer 

10 Continental Shelf. 

11 ‘‘(4) EMPLOYEE TRAINING.— 

12 ‘‘(A) IN GENERAL.—Not later than May 1, 

13 2011, the Secretary shall promulgate regula14 tions setting standards for training for all 

15 workers on offshore facilities (including mobile 

16 offshore drilling units) conducting energy and 

17 mineral resource exploration, development, and 

18 production operations on the outer Continental 

19 Shelf. 

20 ‘‘(B) REQUIREMENTS.—The training 

21 standards under this paragraph shall require 

22 that employers of workers described in subpara23 graph (A)— 

24 ‘‘(i) establish training programs ap25 proved by the Secretary; and 


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1 ‘‘(ii) demonstrate that employees in2 volved in the offshore operations meet 

3 standards that demonstrate the aptitude of 

4 the employees in critical technical skills. 

5 ‘‘(C) EXPERIENCE.—The training stand6 ards under this section shall require that any 

7 offshore worker with less than 5 years of ap8 plied experience in offshore facilities operations 

9 pass a certification requirement after receiving 

10 the appropriate training. 

11 ‘‘(D) MONITORING TRAINING COURSES.— 

12 The Secretary shall ensure that Department 

13 employees responsible for inspecting offshore fa14 cilities monitor, observe, and report on training 

15 courses established under this paragraph, in16 cluding attending a representative number of 

17 the training sessions, as determined by the Sec18 retary.’’; and 

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

20 ‘‘(g) TECHNOLOGY RESEARCH AND RISK ASSESS21 MENT PROGRAM.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall carry 

23 out a program of research, development, and risk as24 sessment to address technology and development 

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1 ergy and mineral resource activities, with the pri2 mary purpose of informing the role of research, de3 velopment, and risk assessment relating to safety, 

4 environmental protection, and spill response. 

5 ‘‘(2) SPECIFIC AREAS OF FOCUS.—The program 

6 under this subsection shall include research, develop7 ment, and other activities related to— 

8 ‘‘(A) risk assessment, using all available 

9 data from safety and compliance records both 

10 within the United States and internationally; 

11 ‘‘(B) analysis of industry trends in tech12 nology, investment, and interest in frontier 

13 areas; 

14 ‘‘(C) analysis of incidents investigated 

15 under section 22; 

16 ‘‘(D) reviews of best available technologies, 

17 including technologies associated with pipelines, 

18 blowout preventer mechanisms, casing, well de19 sign, and other associated infrastructure related 

20 to offshore energy development; 

21 ‘‘(E) oil spill response and mitigation; 

22 ‘‘(F) risks associated with human factors; 

23 and 

24 ‘‘(G) renewable energy operations. 

25 ‘‘(3) INFORMATION SHARING ACTIVITIES.— 


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1 ‘‘(A) DOMESTIC ACTIVITIES.—The Sec2 retary shall carry out programs to facilitate the 

3 exchange and dissemination of scientific and 

4 technical information and best practices related 

5 to the management of safety and environmental 

6 issues associated with energy and mineral re7 source exploration, development, and produc8 tion. 

9 ‘‘(B) INTERNATIONAL COOPERATION.— 

10 The Secretary shall carry out programs to co11 operate with international organizations and 

12 foreign governments to share information and 

13 best practices related to the management of 

14 safety and environmental issues associated with 

15 energy and mineral resource exploration, devel16 opment, and production. 

17 ‘‘(4) REPORTS.—The program under this sub18 section shall provide to the Secretary, each Bureau 

19 Director under section 32, and the public quarterly 

20 reports that address— 

21 ‘‘(A) developments in each of the areas 

22 under paragraph (2); and 

23 ‘‘(B)(i) any accidents that have occurred in 

24 the past quarter; and 


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1 ‘‘(ii) appropriate responses to the acci2 dents. 

3 ‘‘(5) INDEPENDENCE.—The Secretary shall cre4 ate a program within the appropriate bureau estab5 lished under section 32 that shall— 

6 ‘‘(A) be programmatically separate and 

7 distinct from the leasing program; 

8 ‘‘(B) carry out the studies, analyses, and 

9 other activities under this subsection; 

10 ‘‘(C) provide for external scientific review 

11 of studies under this section, including through 

12 appropriate arrangements with the National 

13 Academy of Sciences; and 

14 ‘‘(D) make available to the public studies 

15 conducted and data gathered under this section. 

16 ‘‘(6) USE OF DATA.—The Secretary shall en17 sure that the information from the studies and re18 search carried out under this section inform the de19 velopment of safety practices and regulations as re20 quired by this Act and other applicable laws.’’. 

21 (i) ENFORCEMENT.—Section 22 of the Outer Conti22 nental Shelf Lands Act (43 U.S.C. 1348) is amended— 

23 (1) in subsection (d)— 

24 (A) in paragraph (1)— 


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1 (i) in the first sentence, by inserting 

2 ‘‘, each loss of well control, blowout, activa3 tion of the blowout preventer, and other 

4 accident that presented a serious risk to 

5 human or environmental safety,’’ after 

6 ‘‘fire’’; and 

7 (ii) in the last sentence, by inserting 

8 ‘‘as a condition of the lease’’ before the pe9 riod at the end; 

10 (B) in the last sentence of paragraph (2), 

11 by inserting ‘‘as a condition of lease’’ before the 

12 period at the end; 

13 (2) in subsection (e)— 

14 (A) by striking ‘‘(e) The’’ and inserting the 

15 following: 

16 ‘‘(e) REVIEW OF ALLEGED SAFETY VIOLATIONS.— 

17 ‘‘(1) IN GENERAL.—The’’; and 

18 (B) by adding at the end the following: 

19 ‘‘(2) INVESTIGATION.—The Secretary shall in20 vestigate any allegation from any employee of the 

21 lessee or any subcontractor of the lessee made under 

22 paragraph (1).’’; and 

23 (3) by adding at the end of the section the fol24 lowing: 

25 ‘‘(g) INDEPENDENT INVESTIGATION.— 


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1 ‘‘(1) IN GENERAL.—At the request of the Sec2 retary, the National Transportation Safety Board 

3 may conduct an independent investigation of any ac4 cident, occurring in the outer Continental Shelf and 

5 involving activities under this Act, that does not oth6 erwise fall within the definition of an accident or 

7 major marine casualty, as those terms are used in 

8 chapter 11 of title 49, United States Code. 

9 ‘‘(2) TRANSPORTATION ACCIDENT.—For pur10 poses of an investigation under this subsection, the 

11 accident that is the subject of the request by the 

12 Secretary shall be determined to be a transportation 

13 accident within the meaning of that term in chapter 

14 11 of title 49, United States Code. 

15 ‘‘(h) INFORMATION ON CAUSES AND CORRECTIVE

16 ACTIONS.— 

17 ‘‘(1) IN GENERAL.—For each incident inves18 tigated under this section, the Secretary shall 

19 promptly make available to all lessees and the public 

20 technical information about the causes and correc21 tive actions taken. 

22 ‘‘(2) PUBLIC DATABASE.—All data and reports 

23 related to an incident described in paragraph (1) 

24 shall be maintained in a database that is available 

25 to the public. 


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1 ‘‘(i) INSPECTION FEE.— 

2 ‘‘(1) IN GENERAL.—TheTo the extent necessary 

3 to fund the inspections described in this paragraph, 

4 the Secretary shall collect a non-refundable inspec5 tion fee, which shall be deposited in the Ocean En6 ergy Enforcement Fund established under para7 graph (3), from the designated operator for facilities 

8 subject to inspection under subsection (c). 

9 ‘‘(2) ESTABLISHMENT.—The Secretary shall es10 tablish, by rule, inspection fees— 

11 ‘‘(A) at an aggregate level equal to the 

12 amount necessary to offset the annual expenses 

13 of inspections of outer Continental Shelf facili14 ties (including mobile offshore drilling units) by 

15 the Department of the Interior; and 

16 ‘‘(B) using a schedule that reflects the dif17 ferences in complexity among the classes of fa18 cilities to be inspected. 

19 ‘‘(3) OCEAN ENERGY ENFORCEMENT FUND.— 

20 There is established in the Treasury a fund, to be 

21 known as the ‘Ocean Energy Enforcement Fund’ 

22 (referred to in this subsection as the ‘Fund’), into 

23 which shall be deposited amounts collected under 

24 paragraph (1) and which shall be available as pro25 vided under paragraph (4). 


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1 ‘‘(4) AVAILABILITY OF FEES.—Notwithstanding 

2 section 3302 of title 31, United States Code, all 

3 amounts collected by the Secretary under this sec4 tion— 

5 ‘‘(A) shall be credited as offsetting collec6 tions; 

7 ‘‘(B) shall be available for expenditure only 

8 for purposes of carrying out inspections of 

9 outer Continental Shelf facilities (including mo10 bile offshore drilling units) and the administra11 tion of the inspection program; 

12 ‘‘(C) shall be available only to the extent 

13 provided for in advance in an appropriations 

14 Act; and 

15 ‘‘(D) shall remain available until expended. 

16 ‘‘(5) ANNUAL REPORTS.— 

17 ‘‘(A) IN GENERAL.—Not later than 60 

18 days after the end of each fiscal year beginning 

19 with fiscal year 2011, the Secretary shall sub20 mit to the Committee on Energy and Natural 

21 Resources of the Senate and the Committee on 

22 Natural Resources of the House of Representa23 tives a report on the operation of the Fund dur24 ing the fiscal year. 


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1 ‘‘(B) CONTENTS.—Each report shall in2 clude, for the fiscal year covered by the report, 

3 the following: 

4 ‘‘(i) A statement of the amounts de5 posited into the Fund. 

6 ‘‘(ii) A description of the expenditures 

7 made from the Fund for the fiscal year, in8 cluding the purpose of the expenditures. 

9 ‘‘(iii) Recommendations for additional 

10 authorities to fulfill the purpose of the 

11 Fund. 

12 ‘‘(iv) A statement of the balance re13 maining in the Fund at the end of the fis14 cal year.’’. 

15 (j) REMEDIES AND PENALTIES.—Section 24 of the 

16 Outer Continental Shelf Lands Act (43 U.S.C. 1350) is 

17 amended— 

18 (1) by striking subsection (b) and inserting the 

19 following: 

20 ‘‘(b) CIVIL PENALTY.— 

21 ‘‘(1) IN GENERAL.—Subject to paragraphs (2) 

22 through (3), if any person fails to comply with this 

23 Act, any term of a lease or permit issued under this 

24 Act, or any regulation or order issued under this 

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1 tive penalty of not more than $75,000 for each day 

2 of continuance of each failure. 

3 ‘‘(2) ADMINISTRATION.—The Secretary may as4 sess, collect, and compromise any penalty under 

5 paragraph (1). 

6 ‘‘(3) HEARING.—No penalty shall be assessed 

7 under this subsection until the person charged with 

8 a violation has been given the opportunity for a 

9 hearing. 

10 ‘‘(4) ADJUSTMENT.—The penalty amount speci11 fied in this subsection shall increase each year to re12 flect any increases in the Consumer Price Index for 

13 All Urban Consumers published by the Bureau of 

14 Labor Statistics of the Department of Labor.’’; 

15 (2) in subsection (c)— 

16 (A) in the first sentence, by striking 

17 ‘‘$100,000’’ and inserting ‘‘$10,000,000’’; and 

18 (B) by adding at the end the following: 

19 ‘‘The penalty amount specified in this sub20 section shall increase each year to reflect any 

21 increases in the Consumer Price Index for All 

22 Urban Consumers published by the Bureau of 

23 Labor Statistics of the Department of Labor.’’; 

24 and 


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1 (3) in subsection (d), by inserting ‘‘, or with 

2 reckless disregard,’’ after ‘‘knowingly and willfully’’. 

3 (k) OIL AND GAS DEVELOPMENT AND PRODUC4 TION.—Section 25 of the Outer Continental Shelf Lands 

5 Act (43 U.S.C. 1351) is amended by striking ‘‘, other than 

6 the Gulf of Mexico,’’ each place it appears in subsections 

7 (a)(1), (b), and (e)(1). 

8 (l) CONFLICTS OF INTEREST.—Section 29 of the Outer 

9 Continental Shelf Lands Act (43 U.S.C. 1355) is amended 

10 to read as follows: 

11 ‘‘SEC. 29. CONFLICTS OF INTEREST. 

12 ‘‘(a) RESTRICTIONS ON EMPLOYMENT.—No full-time 

13 officer or employee of the Department of the Interior who 

14 directly or indirectly discharges duties or responsibilities 

15 under this Act shall— 

16 ‘‘(1) within 2 years after his employment with 

17 the Department has ceased— 

18 ‘‘(A) knowingly act as agent or attorney for, 

19 or otherwise represent, any other person (except 

20 the United States) in any formal or informal 

21 appearance before; 

22 ‘‘(B) with the intent to influence, make any 

23 oral or written communication on behalf of any 

24 other person (except the United States) to; or 

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


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1 ‘‘(i) representing any other person (ex2 cept the United States in any formal or in3 formal appearance before; or 

4 ‘‘(ii) making, with the intent to influ5 ence, any oral or written communication on 

6 behalf of any other person (except the 

7 United States) to, 

8 any department, agency, or court of the United 

9 States, or any officer or employee thereof, in connec10 tion with any judicial or other proceeding, applica11 tion, request for a ruling or other determination, reg12 ulation, order lease, permit, rulemaking, inspection, 

13 enforcement action, or other particular matter involv14 ing a specific party or parties in which the United 

15 States is a party or has a direct and substantial in16 terest which was actually pending under his official 

17 responsibility as an officer or employee within a pe18 riod of one year prior to the termination of such re19 sponsibility or in which he participated personally 

20 and substantially as an officer or employee; 

21 ‘‘(2) within 1 year after his employment with 

22 the Department has ceased— 

23 ‘‘(A) knowingly act as agent or attorney for, 

24 or otherwise represent, any other person (except 


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1 the United States) in any formal or informal 

2 appearance before; 

3 ‘‘(B) with the intent to influence, make any 

4 oral or written communication on behalf of any 

5 other person (except the United States) to; or 

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

7 ‘‘(i) representing any other person (ex8 cept the United States in any formal or in9 formal appearance before, or 

10 ‘‘(ii) making, with the intent to influ11 ence, any oral or written communication on 

12 behalf of any other person (except the 

13 United States) to, 

14 the Department of the Interior, or any officer or em15 ployee thereof, in connection with any judicial, rule16 making, regulation, order, lease, permit, regulation, 

17 inspection, enforcement action, or other particular 

18 matter which is pending before the Department of the 

19 Interior or in which the Department has a direct and 

20 substantial interest; or 

21 ‘‘(3) accept employment or compensation, during 

22 the 1-year period beginning on the date on which em23 ployment with the Department has ceased, from any 

24 person (other than the United States) that has a di25 rect and substantial interest— 


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1 ‘‘(A) that was pending under the official re2 sponsibility of the employee as an officer or em3 ployee of the Department during the 1-year pe4 riod preceding the termination of the responsi5 bility; or 

6 ‘‘(B) in which the employee participated 

7 personally and substantially as an officer or em8 ployee. 

9 ‘‘(b) PRIOR EMPLOYMENT RELATIONSHIPS.—No full10 time officer or employee of the Department of the Interior 

11 who directly or indirectly discharges duties or responsibil12 ities under this Act shall participate personally and sub13 stantially as a Federal officer or employee, through deci14 sion, approval, disapproval, recommendation, the rendering 

15 of advice, investigation, or otherwise, in a proceeding, ap16 plication, request for a ruling or other determination, con17 tract, claim, controversy, charge, accusation, inspection, en18 forcement action, or other particular matter in which, to 

19 the knowledge of the officer or employee— 

20 ‘‘(1) the officer or employee or the spouse, minor 

21 child, or general partner of the officer or employee has 

22 a financial interest; 

23 ‘‘(2) any organization in which the officer or em24 ployee is serving as an officer, director, trustee, gen25 eral partner, or employee has a financial interest; 


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1 ‘‘(3) any person or organization with whom the 

2 officer or employee is negotiating or has any arrange3 ment concerning prospective employment has a finan4 cial interest; or 

5 ‘‘(4) any person or organization in which the of6 ficer or employee has, within the preceding 1-year pe7 riod, served as an officer, director, trustee, general 

8 partner, agent, attorney, consultant, contractor, or 

9 employee has a financial interest. 

10 ‘‘(c) GIFTS FROM OUTSIDE SOURCES.—No full-time 

11 officer or employee of the Department of the Interior who 

12 directly or indirectly discharges duties or responsibilities 

13 under this Act shall, directly or indirectly, solicit or accept 

14 any gift in violation of subpart B of part 2635 of title V, 

15 Code of Federal Regulations (or successor regulations). 

16 ‘‘(d) EXEMPTIONS.—The Secretary may, by rule, ex17 empt from this section clerical and support personnel who 

18 do not conduct inspections, perform audits, or otherwise ex19 ercise regulatory or policy making authority under this Act. 

20 ‘‘(e) PENALTIES.— 

21 ‘‘(1) CRIMINAL PENALTIES.—Any person who 

22 violates paragraph (1) or (2) of subsection (a) or sub23 section (b) shall be punished in accordance with sec24 tion 216 of title 18, United States Code. 


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1 ‘‘(2) CIVIL PENALTIES.—Any person who violates 

2 subsection (a)(3) or (c) shall be punished in accord3 ance with subsection (b) of section 216 of title 18, 

4 United States Code.’’. 

5 SEC. 7. STUDY ON THE EFFECT OF THE MORATORIA ON 

6 NEW DEEPWATER DRILLING IN THE GULF OF 

7 MEXICO ON EMPLOYMENT AND SMALL BUSI8 NESSES. 

9 (a) IN GENERAL.—The Secretary of Energy, acting 

10 through the Energy Information Administration, shall pub11 lish a monthly study evaluating the effect of the moratoria 

12 resulting from the blowout and explosion of the mobile off13 shore drilling unit Deepwater Horizon that occurred on 

14 April 20, 2010, and resulting hydrocarbon releases into the 

15 environment, on employment and small businesses. 

16 (b) REPORT.—Not later than 60 days after the date 

17 of enactment of this Act and at the beginning of each month 

18 thereafter during the effective period of the moratoria de19 scribed in subsection (a), the Secretary of Energy, acting 

20 through the Energy Information Administration, shall sub21 mit to the Committee on Energy and Natural Resources of 

22 the Senate and the Committee on Energy and Commerce 

23 of the House of Representatives a report regarding the re24 sults of the study conducted under subsection (a), includ25 ing— 


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1 (1) a survey of the effect of the moratoria on 

2 deepwater drilling on employment in the industries 

3 directly involved in oil and natural gas exploration 

4 in the outer Continental Shelf; 

5 (2) a survey of the effect of the moratoria on em6 ployment in the industries indirectly involved in oil 

7 and natural gas exploration in the outer Continental 

8 Shelf, including suppliers of supplies or services and 

9 customers of industries directly involved in oil and 

10 natural gas exploration; 

11 (3) an estimate of the effect of the moratoria on 

12 the revenues of small business located near the Gulf 

13 of Mexico and, to the maximum extent practicable, 

14 throughout the United States; and 

15 (4) any recommendations to mitigate possible 

16 negative effects on small business concerns resulting 

17 from the moratoria. 

18 SEC. 78. REFORM OF OTHER LAWS. 

19 (a) COORDINATED MAPPING INITIATIVE.— 

20 Section 388(b) of the Energy Policy Act of 2005 (43 

21 U.S.C. 1337 note; Public Law 109–58) is amended by 

22 adding at the end the following: 

23 ‘‘(4) FEDERAL AGENCIES.—Any head of a Fed24 eral department or agency shall, on request of the 

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1 formation that the Secretary determines to be nec2 essary for the purpose of including the data and in3 formation in the mapping initiative, except that no 

4 Federal department or agency shall be required to 

5 provide any data or information that is privileged or 

6 proprietary.’’. 

7 (b) DEDICATED FUNDING FOR OUTER CONTINENTAL

8 SHELF RESEARCH ACTIVITIES.—Section 999H(d) of the 

9 Energy Policy Act of 2005 (42 U.S.C. 16378(d)) is 

10 amended by striking paragraph (4) and inserting the fol11 lowing: 

12 ‘‘(4) 25 percent shall be used for research ac13 tivities required under sections 20 and 21 of the 

14 Outer Continental Shelf Lands Act (43 U.S.C. 1346, 

15 1347).’’. 

16 SEC. 9. SAFER OIL AND GAS PRODUCTION. 

17 (a) PROGRAM AUTHORITY.—Section 999A of the En18 ergy Policy Act of 2005 (42 U.S.C. 16371) is amended— 

19 (1) in subsection (a)— 

20 (A) by striking ‘‘ultra-deepwater’’ and in21 serting ‘‘deepwater’’; and 

22 (B) by inserting ‘‘well control and accident 

23 prevention,’’ after ‘‘safe operations,’’; 

24 (2) in subsection (b)— 


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1 (A) by striking paragraph (1) and inserting 

2 the following: 

3 ‘‘(1) Deepwater architecture, well control and ac4 cident prevention, and deepwater technology, includ5 ing drilling to deep formations in waters greater than 

6 500 feet.’’; and 

7 (B) by striking paragraph (4) and inserting 

8 the following: 

9 ‘‘(4) Safety technology research and development 

10 for drilling activities aimed at well control and acci11 dent prevention performed by the Office of Fossil En12 ergy of the Department.’’; and 

13 (3) in subsection (d)— 

14 (A) in the subsection heading, by striking 

15 ‘‘NATIONAL ENERGY TECHNOLOGY LABORA16 TORY’’ and inserting ‘‘OFFICE OF FOSSIL EN17 ERGY OF THE DEPARTMENT’’; and 

18 (B) by striking ‘‘National Energy Tech19 nology Laboratory’’ and inserting ‘‘Office of Fos20 sil Energy of the Department’’. 

21 (b) DEEPWATER AND UNCONVENTIONAL ONSHORE

22 NATURAL GAS AND OTHER PETROLEUM RESEARCH AND

23 DEVELOPMENT PROGRAM.—Section 999B of the Energy 

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


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1 (1) in the section heading, by striking ‘‘ULTRA2 DEEPWATER AND UNCONVENTIONAL ONSHORE

3 NATURAL GAS AND OTHER PETROLEUM’’ and 

4 inserting ‘‘SAFE OIL AND GAS PRODUCTION AND

5 ACCIDENT PREVENTION’’; 

6 (2) in subsection (a), by striking ‘‘, by increas7 ing’’ and all that follows through the period at the 

8 end and inserting ‘‘and the safe and environmentally 

9 responsible exploration, development, and production 

10 of hydrocarbon resources.’’; 

11 (3) in subsection (c)(1)— 

12 (A) by redesignating subparagraphs (D) 

13 and (E) as subparagraphs (E) and (F), respec14 tively; and 

15 (B) by inserting after subparagraph (C) the 

16 following: 

17 ‘‘(D) projects will be selected on a competi18 tive, peer-reviewed basis.’’; and 

19 (4) in subsection (d)— 

20 (A) in paragraph (6), by striking ‘‘ultra21 deepwater’’ and inserting ‘‘deepwater’’; 

22 (B) in paragraph (7)— 

23 (i) in subparagraph (A)— 


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1 (I) in the subparagraph heading, 

2 by striking ‘‘ULTRA-DEEPWATER’’ and 

3 inserting ‘‘DEEPWATER’’; 

4 (II) by striking ‘‘development 

5 and’’ and inserting ‘‘research, develop6 ment, and’’; and 

7 (III) by striking ‘‘as well as’’ and 

8 all that follows through the period at 

9 the end and inserting ‘‘aimed at im10 proving operational safety of drilling 

11 activities, including well integrity sys12 tems, well control, blowout prevention, 

13 the use of non-toxic materials, and in14 tegrated systems approach-based man15 agement for exploration and produc16 tion in deepwater.’’; 

17 (ii) in subparagraph (B), by striking 

18 ‘‘and environmental mitigation’’ and in19 serting ‘‘use of non-toxic materials, drilling 

20 safety, and environmental mitigation and 

21 accident prevention’’; 

22 (iii) in subparagraph (C), by inserting 

23 ‘‘safety and accident prevention, well con24 trol and systems integrity,’’ after ‘‘includ25 ing’’; and 


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

2 ‘‘(D) SAFETY AND ACCIDENT PREVENTION

3 TECHNOLOGY RESEARCH AND DEVELOPMENT.— 

4 Awards from allocations under section 

5 999H(d)(4) shall be expended on areas includ6 ing— 

7 ‘‘(i) development of improved cement8 ing and casing technologies; 

9 ‘‘(ii) best management practices for ce10 menting, casing, and other well control ac11 tivities and technologies; 

12 ‘‘(iii) development of integrity and 

13 stewardship guidelines for— 

14 ‘‘(I) well-plugging and abandon15 ment; 

16 ‘‘(II) development of wellbore seal17 ant technologies; and 

18 ‘‘(III) improvement and stand19 ardization of blowout prevention de20 vices.’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(8) STUDY; REPORT.— 

23 ‘‘(A) STUDY.—As soon as practicable after 

24 the date of enactment of this paragraph, the Sec25 retary shall enter into an arrangement with the 


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1 National Academy of Sciences under which the 

2 Academy shall conduct a study to determine— 

3 ‘‘(i) whether the benefits provided 

4 through each award under this subsection 

5 during calendar year 2011 have been maxi6 mized; and 

7 ‘‘(ii) the new areas of research that 

8 could be carried out to meet the overall ob9 jectives of the program. 

10 ‘‘(B) REPORT.—Not later than January 1, 

11 2012, the Secretary shall submit to the appro12 priate committees of Congress a report that con13 tains a description of the results of the study 

14 conducted under subparagraph (A). 

15 ‘‘(C) OPTIONAL UPDATES.—The Secretary 

16 may update the report described in subpara17 graph (B) for the 5-year period beginning on the 

18 date described in that subparagraph and each 5- 

19 year period thereafter.’’; 

20 (5) in subsection (e)— 

21 (A) in paragraph (2)— 

22 (i) in the second sentence of subpara23 graph (A), by inserting ‘‘to the Secretary 

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


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1 (ii) in the first sentence of subpara2 graph (B), by striking ‘‘Ultra-Deepwater’’ 

3 and all that follows through ‘‘and such Ad4 visory Committees’’ and inserting ‘‘Pro5 gram Advisory Committee established under 

6 section 999D(a), and the Advisory Com7 mittee’’; and 

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

9 ‘‘(6) RESEARCH FINDINGS AND RECOMMENDA10 TIONS FOR IMPLEMENTATION.—The Secretary, in con11 sultation with the Secretary of the Interior and the 

12 Administrator of the Environmental Protection Agen13 cy, shall publish in the Federal Register an annual 

14 report on the research findings of the program carried 

15 out under this section and any recommendations for 

16 implementation that the Secretary, in consultation 

17 with the Secretary of the Interior and the Adminis18 trator of the Environmental Protection Agency, deter19 mines to be necessary.’’; 

20 (6) in subsection (i)— 

21 (A) in the subsection heading, by striking 

22 ‘‘UNITED STATES GEOLOGICAL SURVEY’’ and in23 serting ‘‘DEPARTMENT OF THE INTERIOR’’; and 

24 (B) by striking ‘‘, through the United States 

25 Geological Survey,’’; and 


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1 (7) in the first sentence of subsection (j), by 

2 striking ‘‘National Energy Technology Laboratory’’ 

3 and inserting ‘‘Office of Fossil Energy of the Depart4 ment’’. 

5 (c) ADDITIONAL REQUIREMENTS FOR AWARDS.—Sec6 tion 999C(b) of the Energy Policy Act of 2005 (42 U.S.C. 

7 16373(b)) is amended by striking ‘‘an ultra-deepwater tech8 nology or an ultra-deepwater architecture’’ and inserting 

9 ‘‘a deepwater technology’’. 

10 (d) PROGRAM ADVISORY COMMITTEE.—Section 999D 

11 of the Energy Policy Act of 2005 (42 U.S.C. 16374) is 

12 amended to read as follows: 

13 ‘‘SEC. 999D. PROGRAM ADVISORY COMMITTEE. 

14 ‘‘(a) ESTABLISHMENT.—Not later than 270 days after 

15 the date of enactment of the Safe and Responsible Energy 

16 Production Improvement Act of 2010, the Secretary shall 

17 establish an advisory committee to be known as the ‘Pro18 gram Advisory Committee’ (referred to in this section as 

19 the ‘Advisory Committee’). 

20 ‘‘(b) MEMBERSHIP.— 

21 ‘‘(1) IN GENERAL.—The Advisory Committee 

22 shall be composed of members appointed by the Sec23 retary, including— 


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1 ‘‘(A) individuals with extensive research ex2 perience or operational knowledge of hydrocarbon 

3 exploration and production; 

4 ‘‘(B) individuals broadly representative of 

5 the affected interests in hydrocarbon production, 

6 including interests in environmental protection 

7 and safety operations; 

8 ‘‘(C) representatives of Federal agencies, in9 cluding the Environmental Protection Agency 

10 and the Department of the Interior; 

11 ‘‘(D) State regulatory agency representa12 tives; and 

13 ‘‘(E) other individuals, as determined by 

14 the Secretary. 

15 ‘‘(2) LIMITATIONS.— 

16 ‘‘(A) IN GENERAL.—The Advisory Com17 mittee shall not include individuals who are 

18 board members, officers, or employees of the pro19 gram consortium. 

20 ‘‘(B) CATEGORICAL REPRESENTATION.—In 

21 appointing members of the Advisory Committee, 

22 the Secretary shall ensure that no class of indi23 viduals described in any of subparagraphs (A), 

24 (B), (D), or (E) of paragraph (1) comprises 


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more than 1 1 ⁄3 of the membership of the Advisory 

2 Committee. 

3 ‘‘(c) SUBCOMMITTEES.—The Advisory Committee may 

4 establish subcommittees for separate research programs car5 ried out under this subtitle. 

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

7 ‘‘(1) advise the Secretary on the development and 

8 implementation of programs under this subtitle; and 

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

10 ‘‘(e) COMPENSATION.—A member of the Advisory Com11 mittee shall serve without compensation but shall be entitled 

12 to receive travel expenses in accordance with subchapter I 

13 of chapter 57 of title 5, United States Code. 

14 ‘‘(f) PROHIBITION.—The Advisory Committee shall not 

15 make recommendations on funding awards to particular 

16 consortia or other entities, or for specific projects.’’. 

17 (e) DEFINITIONS.—Section 999G of the Energy Policy 

18 Act of 2005 (42 U.S.C. 16377) is amended— 

19 (1) in paragraph (1), by striking ‘‘200 but less 

20 than 1,500 meters’’ and inserting ‘‘500 feet’’; 

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

22 (3) by redesignating paragraphs (2) through (7) 

23 and (11) as paragraphs (4) through (9) and (10), re24 spectively; 


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1 (4) by inserting after paragraph (1) the fol2 lowing: 

3 ‘‘(2) DEEPWATER ARCHITECTURE.—The term 

4 ‘deepwater architecture’ means the integration of tech5 nologies for the exploration for, or production of, nat6 ural gas or other petroleum resources located at deep7 water depths. 

8 ‘‘(3) DEEPWATER TECHNOLOGY.—The term 

9 ‘deepwater technology’ means a discrete technology 

10 that is specially suited to address 1 or more chal11 lenges associated with the exploration for, or produc12 tion of, natural gas or other petroleum resources lo13 cated at deepwater depths.’’; and 

14 (5) in paragraph (10) (as redesignated by para15 graph (3)), by striking ‘‘in an economically inacces16 sible geological formation, including resources of 

17 small producers’’. 

18 (f) FUNDING.—Section 999H of the Energy Policy Act 

19 of 2005 (42 U.S.C. 16378) is amended— 

20 (1) in the first sentence of subsection (a) by 

21 striking ‘‘Ultra-Deepwater and Unconventional Nat22 ural Gas and Other Petroleum Research Fund’’ and 

23 inserting ‘‘Safe and Responsible Energy Production 

24 Research Fund’’; 

25 (2) in subsection (d)— 


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1 (A) in paragraph (1), by striking ‘‘35 per2 cent’’ and inserting ‘‘21.5 percent’’; 

3 (B) in paragraph (2), by striking ‘‘32.5 

4 percent’’ and inserting ‘‘21 percent’’; 

5 (C) in paragraph (4)— 

6 (i) by striking ‘‘25 percent’’ and in7 serting ‘‘30 percent’’; 

8 (ii) by striking ‘‘complementary re9 search’’ and inserting ‘‘safety technology re10 search and development’’; and 

11 (iii) by striking ‘‘contract manage12 ment,’’ and all that follows through the pe13 riod at the end and inserting ‘‘and contract 

14 management.’’; and 

15 (D) by adding at the end the following: 

16 ‘‘(5) 20 percent shall be used for research activi17 ties required under sections 20 and 21 of the Outer 

18 Continental Shelf Lands Act (43 U.S.C. 1346, 

19 1347).’’. 

20 (3) in subsection (f), by striking ‘‘Ultra-Deep21 water and Unconventional Natural Gas and Other 

22 Petroleum Research Fund’’ and inserting ‘‘Safer Oil 

23 and Gas Production and Accident Prevention Re24 search Fund’’. 


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1 (g) CONFORMING AMENDMENT.—Subtitle J of title IX 

2 of the Energy Policy Act of 2005 (42 U.S.C. 16371 et seq.) 

3 is amended in the subtitle heading by striking ‘‘Ultra4 Deepwater and Unconventional Natural Gas 

5 and Other Petroleum Resources’’ and inserting 

6 ‘‘Safer Oil and Gas Production and Accident 

7 Prevention’’. 

8 SEC. 10. NATIONAL COMMISSION ON OUTER CONTINENTAL 

9 SHELF OIL SPILL PREVENTION. 

10 (a) ESTABLISHMENT.—There is established in the Leg11 islative branch the National Commission on Outer Conti12 nental Shelf Oil Spill Prevention (referred to in this section 

13 as the ‘‘Commission’’). 

14 (b) PURPOSES.—The purposes of the Commission 

15 are— 

16 (1) to examine and report on the facts and 

17 causes relating to the Deepwater Horizon explosion 

18 and oil spill of 2010; 

19 (2) to ascertain, evaluate, and report on the evi20 dence developed by all relevant governmental agencies 

21 regarding the facts and circumstances surrounding 

22 the incident; 

23 (3) to build upon the investigations of other enti24 ties, and avoid unnecessary duplication, by reviewing 

25 the findings, conclusions, and recommendations of— 


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1 (A) the Committees on Energy and Natural 

2 Resources and Commerce, Science, and Trans3 portation of the Senate; 

4 (B) the Committee on Natural Resources 

5 and the Subcommittee on Oversight and Inves6 tigations of the House of Representatives; and 

7 (C) other Executive branch, congressional, 

8 or independent commission investigations into 

9 the Deepwater Horizon incident of 2010, other 

10 fatal oil platform accidents and major spills, 

11 and major oil spills generally; 

12 (4) to make a full and complete accounting of the 

13 circumstances surrounding the incident, and the ex14 tent of the preparedness of the United States for, and 

15 immediate response of the United States to, the inci16 dent; and 

17 (5) to investigate and report to the President 

18 and Congress findings, conclusions, and recommenda19 tions for corrective measures that may be taken to 

20 prevent similar incidents. 

21 (c) COMPOSITION OF COMMISSION.— 

22 (1) MEMBERS.—The Commission shall be com23 posed of 10 members, of whom— 


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1 (A) 1 member shall be appointed by the 

2 President, who shall serve as Chairperson of the 

3 Commission; 

4 (B) 1 member shall be appointed by the ma5 jority or minority (as the case may be) leader of 

6 the Senate from the Republican Party and the 

7 majority or minority (as the case may be) leader 

8 of the House of Representatives from the Repub9 lican Party, who shall serve as Vice Chairperson 

10 of the Commission; 

11 (C) 2 members shall be appointed by the 

12 senior member of the leadership of the Senate 

13 from the Democratic Party; 

14 (D) 2 members shall be appointed by the 

15 senior member of the leadership of the House of 

16 Representatives from the Republican Party; 

17 (E) 2 members shall be appointed by the 

18 senior member of the leadership of the Senate 

19 from the Republican Party; and 

20 (F) 2 members shall be appointed by the 

21 senior member of the leadership of the House of 

22 Representatives from the Democratic Party. 

23 (2) QUALIFICATIONS; INITIAL MEETING.— 


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1 (A) POLITICAL PARTY AFFILIATION.—Not 

2 more than 5 members of the Commission shall be 

3 from the same political party. 

4 (B) NONGOVERNMENTAL APPOINTEES.—An 

5 individual appointed to the Commission may 

6 not be a current officer or employee of the Fed7 eral Government or any State or local govern8 ment. 

9 (C) OTHER QUALIFICATIONS.—It is the 

10 sense of Congress that individuals appointed to 

11 the Commission should be prominent United 

12 States citizens, with national recognition and 

13 significant depth of experience and expertise in 

14 such areas as— 

15 (i) engineering; 

16 (ii) environmental compliance; 

17 (iii) health and safety law (particu18 larly oil spill legislation); 

19 (iv) oil spill insurance policies; 

20 (v) public administration; 

21 (vi) oil and gas exploration and pro22 duction; 

23 (vii) environmental cleanup; and 

24 (viii) fisheries and wildlife manage25 ment. 


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1 (D) DEADLINE FOR APPOINTMENT.—All 

2 members of the Commission shall be appointed 

3 on or before September 15, 2010. 

4 (E) INITIAL MEETING.—The Commission 

5 shall meet and begin the operations of the Com6 mission as soon as practicable after the date of 

7 enactment of this Act. 

8 (3) QUORUM; VACANCIES.— 

9 (A) IN GENERAL.—After the initial meeting 

10 of the Commission, the Commission shall meet 

11 upon the call of the Chairperson or a majority 

12 of the members of the Commission. 

13 (B) QUORUM.—6 members of the Commis14 sion shall constitute a quorum. 

15 (C) VACANCIES.—Any vacancy in the Com16 mission shall not affect the powers of the Com17 mission, but shall be filled in the same manner 

18 in which the original appointment was made. 

19 (d) FUNCTIONS OF COMMISSION.— 

20 (1) IN GENERAL.—The functions of the Commis21 sion are— 

22 (A) to conduct an investigation that— 

23 (i) investigates relevant facts and cir24 cumstances relating to the Deepwater Hori25 zon incident of April 20, 2010, and the asVerDate Mar 15 2010 23:37 Jul 28, 2010 Jkt 089200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6203 E:\BILLS\S3516.RS S3516

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1 sociated oil spill thereafter, including any 

2 relevant legislation, Executive order, regula3 tion, plan, policy, practice, or procedure; 

4 and 

5 (ii) may include relevant facts and cir6 cumstances relating to— 

7 (I) permitting agencies; 

8 (II) environmental and worker 

9 safety law enforcement agencies; 

10 (III) national energy require11 ments; 

12 (IV) deepwater and 

13 ultradeepwater oil and gas exploration 

14 and development; 

15 (V) regulatory specifications, test16 ing, and requirements for offshore oil 

17 and gas well explosion prevention; 

18 (VI) regulatory specifications, 

19 testing, and requirements offshore oil 

20 and gas well casing and cementing reg21 ulation; 

22 (VII) the role of congressional 

23 oversight and resource allocation; and 

24 (VIII) other areas of the public 

25 and private sectors determined to be 


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1 relevant to the Deepwater Horizon in2 cident by the Commission; 

3 (B) to identify, review, and evaluate the les4 sons learned from the Deepwater Horizon inci5 dent of April 20, 2010, regarding the structure, 

6 coordination, management policies, and proce7 dures of the Federal Government, and, if appro8 priate, State and local governments and non9 governmental entities, and the private sector, rel10 ative to detecting, preventing, and responding to 

11 those incidents; and 

12 (C) to submit to the President and Congress 

13 such reports as are required under this section 

14 containing such findings, conclusions, and rec15 ommendations as the Commission determines to 

16 be appropriate, including proposals for organiza17 tion, coordination, planning, management ar18 rangements, procedures, rules, and regulations. 

19 (2) RELATIONSHIP TO INQUIRY BY CONGRES20 SIONAL COMMITTEES.—In investigating facts and cir21 cumstances relating to energy policy, the Commission 

22 shall— 

23 (A) first review the information compiled 

24 by, and any findings, conclusions, and rec25 ommendations of, the committees identified in 


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1 subparagraphs (A) and (B) of subsection (b)(3); 

2 and 

3 (B) after completion of that review, pursue 

4 any appropriate area of inquiry, if the Commis5 sion determines that— 

6 (i) those committees have not inves7 tigated that area; 

8 (ii) the investigation of that area by 

9 those committees has not been completed; or 

10 (iii) new information not reviewed by 

11 the committees has become available with 

12 respect to that area. 

13 (e) POWERS OF COMMISSION.— 

14 (1) HEARINGS AND EVIDENCE.—The Commission 

15 or, on the authority of the Commission, any sub16 committee or member of the Commission, may, for the 

17 purpose of carrying out this section— 

18 (A) hold such hearings, meet and act at 

19 such times and places, take such testimony, re20 ceive such evidence, and administer such oaths; 

21 and 

22 (B) require, by subpoena or otherwise, the 

23 attendance and testimony of such witnesses and 

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1 ence, memoranda, papers, documents, tapes, and 

2 materials; 

3 as the Commission or such subcommittee or member con4 siders to be advisable. 

5 (2) SUBPOENAS.— 

6 (A) ISSUANCE.— 

7 (i) IN GENERAL.—A subpoena may be 

8 issued under this paragraph only— 

9 (I) by the agreement of the Chair10 person and the Vice Chairperson; or 

11 (II) by the affirmative vote of 6 

12 members of the Commission. 

13 (ii) SIGNATURE.—Subject to clause (i), 

14 a subpoena issued under this paragraph— 

15 (I) shall bear the signature of the 

16 Chairperson or any member designated 

17 by a majority of the Commission; 

18 (II) and may be served by any 

19 person or class of persons designated 

20 by the Chairperson or by a member 

21 designated by a majority of the Com22 mission for that purpose. 

23 (B) ENFORCEMENT.— 

24 (i) IN GENERAL.—In the case of contu25 macy or failure to obey a subpoena issued 


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1 under subparagraph (A), the United States 

2 district court for the district in which the 

3 subpoenaed person resides, is served, or may 

4 be found, or where the subpoena is return5 able, may issue an order requiring the per6 son to appear at any designated place to 

7 testify or to produce documentary or other 

8 evidence. 

9 (ii) JUDICIAL ACTION FOR NONCOMPLI10 ANCE.—Any failure to obey the order of the 

11 court may be punished by the court as a 

12 contempt of that court. 

13 (iii) ADDITIONAL ENFORCEMENT.—In 

14 the case of any failure of any witness to 

15 comply with any subpoena or to testify 

16 when summoned under authority of this 

17 subsection, the Commission may, by major18 ity vote, certify a statement of fact consti19 tuting such failure to the appropriate 

20 United States attorney, who may bring the 

21 matter before the grand jury for action, 

22 under the same statutory authority and 

23 procedures as if the United States attorney 

24 had received a certification under sections 


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1 102 through 104 of the Revised Statutes (2 

2 U.S.C. 192 through 194). 

3 (3) CONTRACTING.—The Commission may, to 

4 such extent and in such amounts as are provided in 

5 appropriation Acts, enter into contracts to enable the 

6 Commission to discharge the duties of the Commission 

7 under this section. 

8 (4) INFORMATION FROM FEDERAL AGENCIES.— 

9 (A) IN GENERAL.—The Commission may se10 cure directly from any Executive department, 

11 bureau, agency, board, commission, office, inde12 pendent establishment, or instrumentality of the 

13 Federal Government, information, suggestions, 

14 estimates, and statistics for the purposes of this 

15 section. 

16 (B) COOPERATION.—Each Federal depart17 ment, bureau, agency, board, commission, office, 

18 independent establishment, or instrumentality 

19 shall, to the extent authorized by law, furnish in20 formation, suggestions, estimates, and statistics 

21 directly to the Commission, upon request made 

22 by the Chairperson, the Chairperson of any sub23 committee created by a majority of the Commis24 sion, or any member designated by a majority of 

25 the Commission. 


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1 (C) RECEIPT, HANDLING, STORAGE, AND

2 DISSEMINATION.—Information shall be received, 

3 handled, stored, and disseminated only by mem4 bers of the Commission and the staff of the Com5 mission in accordance with all applicable laws 

6 (including regulations and Executive orders). 

7 (5) ASSISTANCE FROM FEDERAL AGENCIES.— 

8 (A) GENERAL SERVICES ADMINISTRA9 TION.—The Administrator of General Services 

10 shall provide to the Commission on a reimburs11 able basis administrative support and other serv12 ices for the performance of the functions of the 

13 Commission. 

14 (B) OTHER DEPARTMENTS AND AGEN15 CIES.—In addition to the assistance prescribed 

16 in subparagraph (A), departments and agencies 

17 of the United States may provide to the Commis18 sion such services, funds, facilities, staff, and 

19 other support services as are determined to be 

20 advisable and authorized by law. 

21 (6) GIFTS.—The Commission may accept, use, 

22 and dispose of gifts or donations of services or prop23 erty, including travel, for the direct advancement of 

24 the functions of the Commission. 


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1 (7) POSTAL SERVICES.—The Commission may 

2 use the United States mails in the same manner and 

3 under the same conditions as departments and agen4 cies of the United States. 

5 (f) PUBLIC MEETINGS AND HEARINGS.— 

6 (1) PUBLIC MEETINGS AND RELEASE OF PUBLIC

7 VERSIONS OF REPORTS.—The Commission shall— 

8 (A) hold public hearings and meetings, to 

9 the extent appropriate; and 

10 (B) release public versions of the reports re11 quired under paragraphs (1) and (2) of sub12 section (j). 

13 (2) PUBLIC HEARINGS.—Any public hearings of 

14 the Commission shall be conducted in a manner con15 sistent with the protection of proprietary or sensitive 

16 information provided to or developed for or by the 

17 Commission as required by any applicable law (in18 cluding a regulation or Executive order). 

19 (g) STAFF OF COMMISSION.— 

20 (1) IN GENERAL.— 

21 (A) APPOINTMENT AND COMPENSATION.— 

22 (i) IN GENERAL.—The Chairperson, in 

23 consultation with the Vice Chairperson and 

24 in accordance with rules agreed upon by the 

25 Commission, may, without regard to the 


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1 civil service laws (including regulations), 

2 appoint and fix the compensation of a staff 

3 director and such other personnel as are 

4 necessary to enable the Commission to carry 

5 out the functions of the Commission. 

6 (ii) MAXIMUM RATE OF PAY.—No rate 

7 of pay fixed under this subparagraph may 

8 exceed the equivalent of that payable for a 

9 position at level V of the Executive Schedule 

10 under section 5316 of title 5, United States 

11 Code. 

12 (B) PERSONNEL AS FEDERAL EMPLOY13 EES.— 

14 (i) IN GENERAL.—The staff director 

15 and any personnel of the Commission who 

16 are employees shall be considered to be em17 ployees under section 2105 of title 5, United 

18 States Code, for purposes of chapters 63, 81, 

19 83, 84, 85, 87, 89, and 90 of that title. 

20 (ii) MEMBERS OF COMMISSION.— 

21 Clause (i) shall not apply to members of the 

22 Commission. 

23 (2) DETAILEES.— 


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1 (A) IN GENERAL.—An employee of the Fed2 eral Government may be detailed to the Commis3 sion without reimbursement. 

4 (B) CIVIL SERVICE STATUS.—The detail of 

5 the employee shall be without interruption or 

6 loss of civil service status or privilege. 

7 (3) PROCUREMENT OF TEMPORARY AND INTER8 MITTENT SERVICES.—The Chairperson of the Com9 mission may procure temporary and intermittent 

10 services in accordance with section 3109(b) of title 5, 

11 United States Code, at rates for individuals that do 

12 not exceed the daily equivalent of the annual rate of 

13 basic pay prescribed for level V of the Executive 

14 Schedule under section 5316 of that title. 

15 (h) COMPENSATION AND TRAVEL EXPENSES.— 

16 (1) COMPENSATION OF MEMBERS.— 

17 (A) NON-FEDERAL EMPLOYEES.—A member 

18 of the Commission who is not an officer or em19 ployee of the Federal Government shall be com20 pensated at a rate equal to the daily equivalent 

21 of the annual rate of basic pay prescribed for 

22 level IV of the Executive Schedule under section 

23 5315 of title 5, United States Code, for each day 

24 (including travel time) during which the member 


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1 is engaged in the performance of the duties of the 

2 Commission. 

3 (B) FEDERAL EMPLOYEES.—A member of 

4 the Commission who is an officer or employee of 

5 the Federal Government shall serve without com6 pensation in addition to the compensation re7 ceived for the services of the member as an officer 

8 or employee of the Federal Government. 

9 (2) TRAVEL EXPENSES.—A member of the Com10 mission shall be allowed travel expenses, including 

11 per diem in lieu of subsistence, at rates authorized for 

12 an employee of an agency under subchapter I of chap13 ter 57 of title 5, United States Code, while away from 

14 the home or regular place of business of the member 

15 in the performance of the duties of the Commission. 

16 (i) SECURITY CLEARANCES FOR COMMISSION MEM17 BERS AND STAFF.— 

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

19 appropriate Federal agencies or departments shall co20 operate with the Commission in expeditiously pro21 viding to the members and staff of the Commission 

22 appropriate security clearances, to the maximum ex23 tent practicable, pursuant to existing procedures and 

24 requirements. 


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1 (2) PROPRIETARY INFORMATION.—No person 

2 shall be provided with access to proprietary informa3 tion under this section without the appropriate secu4 rity clearances. 

5 (j) REPORTS OF COMMISSION; ADJOURNMENT.— 

6 (1) INTERIM REPORTS.—The Commission may 

7 submit to the President and Congress interim reports 

8 containing such findings, conclusions, and rec9 ommendations for corrective measures as have been 

10 agreed to by a majority of members of the Commis11 sion. 

12 (2) FINAL REPORT.—Not later than 180 days 

13 after the date of the enactment of this Act, the Com14 mission shall submit to the President and Congress a 

15 final report containing such findings, conclusions, 

16 and recommendations for corrective measures as have 

17 been agreed to by a majority of members of the Com18 mission. 

19 (3) TEMPORARY ADJOURNMENT.— 

20 (A) IN GENERAL.—The Commission, and all 

21 the authority provided under this section, shall 

22 adjourn and be suspended, respectively, on the 

23 date that is 60 days after the date on which the 

24 final report is submitted under paragraph (2). 


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1 (B) ADMINISTRATIVE ACTIVITIES BEFORE

2 TERMINATION.—The Commission may use the 

3 60-day period referred to in subparagraph (A) 

4 for the purpose of concluding activities of the 

5 Commission, including— 

6 (i) providing testimony to committees 

7 of Congress concerning reports of the Com8 mission; and 

9 (ii) disseminating the final report sub10 mitted under paragraph (2). 

11 (C) RECONVENING OF COMMISSION.—The 

12 Commission shall stand adjourned until such 

13 time as the President or the Secretary of Home14 land Security declares an oil spill of national 

15 significance to have occurred, at which time— 

16 (i) the Commission shall reconvene in 

17 accordance with subsection (c)(3); and 

18 (ii) the authority of the Commission 

19 under this section shall be of full force and 

20 effect. 

21 (k) FUNDING.— 

22 (1) AUTHORIZATION OF APPROPRIATIONS.— 

23 There are authorized to be appropriated to carry out 

24 this section— 


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1 (A) $10,000,000 for the first fiscal year in 

2 which the Commission convenes; and 

3 (B) $3,000,000 for each fiscal year there4 after in which the Commission convenes. 

5 (2) AVAILABILITY.—Amounts made available to 

6 carry out this section shall be available— 

7 (A) for transfer to the Commission for use 

8 in carrying out the functions and activities of 

9 the Commission under this section; and 

10 (B) until the date on which the Commission 

11 adjourns for the fiscal year under subsection 

12 (j)(3). 

13 (l) NONAPPLICABILITY OF FEDERAL ADVISORY COM14 MITTEE ACT.—The Federal Advisory Committee Act (5 

15 U.S.C. App.) shall not apply to the Commission. 

16 SEC. 11. CLASSIFICATION OF OFFSHORE SYSTEMS. 

17 (a) REGULATIONS.— 

18 (1) IN GENERAL.—Not later than 2 years after 

19 the date of enactment of this Act, the Secretary and 

20 the Secretary of the Department in which the Coast 

21 Guard is operating shall jointly issue regulations re22 quiring systems (including existing systems) used in 

23 the offshore exploration, development, and production 

24 of oil and gas in the outer Continental Shelf to be 

25 constructed, maintained, and operated so as to meet 


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1 classification, certification, rating, and inspection 

2 standards that are necessary— 

3 (A) to protect the health and safety of affili4 ated workers; and 

5 (B) to prevent environmental degradation. 

6 (2) THIRD-PARTY VERIFICATION.—The standards 

7 established by regulation under paragraph (1) shall 

8 be verified through certification and classification by 

9 independent third parties that— 

10 (A) have been preapproved by both the Sec11 retary and the Secretary of the Department in 

12 which the Coast Guard is operating; and 

13 (B) have no financial conflict of interest in 

14 conducting the duties of the third parties. 

15 (3) MINIMUM SYSTEMS COVERED.—At a min16 imum, the regulations issued under paragraph (1) 

17 shall require the certification and classification by an 

18 independent third party who meets the requirements 

19 of paragraph (2) of— 

20 (A) mobile offshore drilling units; 

21 (B) fixed and floating drilling or produc22 tion facilities; 

23 (C) drilling systems, including risers and 

24 blowout preventers; and 


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1 (D) any other equipment dedicated to the 

2 safety systems relating to offshore extraction and 

3 production of oil and gas. 

4 (4) EXCEPTIONS.—The Secretary and the Sec5 retary of the Department in which the Coast Guard 

6 is operating may waive the standards established by 

7 regulation under paragraph (1) for an existing sys8 tem only if— 

9 (A) the system is of an age or type where 

10 meeting such requirements is impractical; and 

11 (B) the system poses an acceptably low level 

12 of risk to the environment and to human safety. 

13 (b) AUTHORITY OF COAST GUARD.—Nothing in this 

14 section preempts or interferes with the authority of the 

15 Coast Guard. 

16 SEC. 812. SAVINGS PROVISIONS. 

17 (a) EXISTING LAW.—All regulations, rules, stand18 ards, determinations, contracts and agreements, memo19 randa of understanding, certifications, authorizations, ap20 pointments, delegations, results and findings of investiga21 tions, or any other actions issued, made, or taken by, or 

22 pursuant to or under, the authority of any law (including 

23 regulations) that resulted in the assignment of functions 

24 or activities to the Secretary, the Director of the Minerals 

25 Management Service (including by delegation from the 


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1 Secretary), or the Department (as related to the imple2 mentation of the purposes referenced in this Act) that 

3 were in effect on the date of enactment of this Act shall 

4 continue in full force and effect after the date of enact5 ment of this Act unless previously scheduled to expire or 

6 until otherwise modified or rescinded by this Act or any 

7 other Act. 

8 (b) EFFECT ON OTHER AUTHORITIES.—This Act 

9 does not amend or alter the provisions of other applicable 

10 laws, unless otherwise noted. 

11 SEC. 913. BUDGETARY EFFECTS. 

12 The budgetary effects of this Act, for the purpose of 

13 complying with the Statutory Pay-As-You-Go Act of 2010, 

14 shall be determined by reference to the latest statement 

15 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

16 Act, submitted for printing in the Congressional Record 

17 by the Chairman of the Senate Budget Committee, pro18 vided that such statement has been submitted prior to the 

19 vote on passage. 


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Calendar No. 492 

111TH CONGRESS 

2D SESSION S. 3516 

[Report No. 111–236] 

A BILL 

To amend the Outer Continental Shelf Lands Act 

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

JULY 28, 2010 

Reported with amendments 


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