‘‘(s) ROYALTY SUSPENSION PROVISIONS.—The Sec-
retary shall agree to a request by any lessee to amend any 
lease issued for Central and Western Gulf of Mexico tracts 
during the period of December 1, 1995, through December 
31, 2000, to incorporate price thresholds applicable to roy-
alty suspension provisions, or amend existing price thresh-
olds, in the amount of $40.50 per barrel (2006 dollars) for 
oil and for natural gas of $6.75 per million Btu (2006 dol-
lars). Any amended lease shall impose the new or revised 
price thresholds effective October 1, 2005. Existing lease 
provisions shall prevail through September 30, 2005. After 
the date of the enactment of the Deep Ocean Energy Re-
sources Act of 2006, price thresholds shall apply to any roy-
alty suspension volumes granted by the Secretary. Unless 
otherwise set by Secretary by regulation or for a particular 
lease sale, the price thresholds shall be $40.50 for oil (2006 
dollars) and $6.75 for natural gas (2006 dollars). 
‘‘(t) ROYALTY RATE FOR OIL AND GAS OR NATURAL 
GAS LEASES ON THE OUTER CONTINENTAL SHELF.—After 
the date of the enactment of the Deep Ocean Energy Re-
sources Act of 2006, the base royalty rate for new oil and 
gas or natural gas leases on the outer Continental Shelf 
shall be the same for all leased tracts. 
‘‘(u) CONSERVATION OF RESOURCES FEES.— 
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‘‘(1) Not later than one year after the date of the 
enactment of the Deep Ocean Energy Resources Act of 
2006, the Secretary by regulation shall establish a 
conservation of resources fee for producing leases that 
will apply to new and existing leases which shall be 
set at $9 per barrel for oil and $1.25 per million Btu 
for gas. This fee shall only apply to leases in produc-
tion located in more than 200 meters of water for 
which royalties are not being paid when prices exceed 
$40.50 per barrel for oil and $6.75 per million Btu 
for natural gas in 2006, dollars. This fee shall apply 
to production from and after October 1, 2005, and 
shall be treated as offsetting receipts. 
‘‘(2) Not later than one year after the date of the 
enactment of the Deep Ocean Energy Resources Act of 
2006, the Secretary by regulation shall establish a 
conservation of resources fee for nonproducing leases 
that will apply to new and existing leases which shall 
be set at not less than $1.00 nor more than $4.00 per 
acre per year. This fee shall apply from and after Oc-
tober 1, 2005, and shall be treated as offsetting re-
ceipts.’’; 
(5) by striking subsection (a)(3)(A) and redesig-
nating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
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(6) in subsection (a)(3)(A) (as so redesignated) 
by striking ‘‘In the Western’’ and all that follows 
through ‘‘the Secretary’’ the first place it appears and 
inserting ‘‘The Secretary’’; and 
(7) effective October 1, 2006, in subsection (g)— 
(A) by striking all after ‘‘(g)’’, except para-
graph (3); 
(B) by striking the last sentence of para-
graph (3); and 
(C) by striking ‘‘(3)’’. 
SEC. 7. DISPOSITION OF RECEIPTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended— 
(1) by designating the existing text as subsection 
(a); 
(2) in subsection (a) (as so designated) by insert-
ing ‘‘, if not paid as otherwise provided in this title’’ 
after ‘‘receipts’’; and 
(3) by adding the following: 
‘‘(b) TREATMENT OF OCS RECEIPTS FROM TRACTS 
COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit into 
a separate account in the Treasury the portion of 
OCS Receipts for each fiscal year that will be shared 
under paragraphs (2), (3), and (4). 
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‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2005, the Sec-
retary shall share OCS Receipts derived from the 
following areas: 
‘‘(i) Lease tracts located on portions of 
the Gulf of Mexico OCS Region completely 
beyond 4 marine leagues from any coastline 
and completely within 100 miles of any 
coastline that are available for leasing 
under the 2002–2007 5-Year Oil and Gas 
Leasing Program in effect prior to the date 
of the enactment of the Deep Ocean Energy 
Resources Act of 2006. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2005, completely beyond 4 ma-
rine leagues from any coastline and com-
pletely within 100 miles of any coastline lo-
cated on portions of the OCS that were not 
available for leasing under the 2002–2007 
5-Year OCS Oil and Gas Leasing Program 
in effect prior to the date of the enactment 
of the Deep Ocean Energy Resources Act of 
2006. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2005, located in 
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the Alaska OCS Region completely beyond 4 
marine leagues from any coastline and com-
pletely within 100 miles of the coastline. 
‘‘(B) The Secretary shall share the following 
percentages of OCS Receipts from the leases de-
scribed in subparagraph (A) derived during the 
fiscal year indicated: 
‘‘(i) For fiscal year 2006, 6.0 percent. 
‘‘(ii) For fiscal year 2007, 7.0 percent. 
‘‘(iii) For fiscal year 2008, 8.0 percent. 
‘‘(iv) For fiscal year 2009, 9.0 percent. 
‘‘(v) For fiscal year 2010, 12.0 percent. 
‘‘(vi) For fiscal year 2011, 15.0 per-
cent. 
‘‘(vii) For fiscal year 2012, 18.0 per-
cent. 
‘‘(viii) For fiscal year 2013, 21.0 per-
cent. 
‘‘(ix) For fiscal year 2014, 24.0 per-
cent. 
‘‘(x) For fiscal year 2015, 27.0 percent. 
‘‘(xi) For fiscal year 2016, 30.0 per-
cent. 
‘‘(xii) For fiscal year 2017, 33.0 per-
cent. 
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‘‘(xiii) For fiscal year 2018, 36.0 per-
cent. 
‘‘(xiv) For fiscal year 2019, 39.0 per-
cent. 
‘‘(xv) For fiscal year 2020, 42.0 per-
cent. 
‘‘(xvi) For fiscal year 2021, 45.0 per-
cent. 
‘‘(xvii) For fiscal year 2022 and each 
subsequent fiscal year, 50.0 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
6(2) of the Deep Ocean Energy Resources Act of 
2006. 
‘‘(3) IMMEDIATE
RECEIPTS
SHARING.—Begin-
ning October 1, 2005, the Secretary shall share 50 
percent of OCS Receipts derived from all leases lo-
cated completely beyond 4 marine leagues from any 
coastline and completely within 100 miles of any 
coastline not included within the provisions of para-
graph (2). 
‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 4 
MARINE
LEAGUES
OF
ANY
COASTLINE.—Beginning 
October 1, 2005, the Secretary shall share 75 percent 
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of OCS Receipts derived from all leases located com-
pletely or partially within 4 marine leagues from any 
coastline. 
‘‘(5) ALLOCATIONS.—The Secretary shall allocate 
the OCS Receipts deposited into the separate account 
established by paragraph (1) that are shared under 
paragraphs (2), (3), and (4) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including interest 
thereon, shall be allocated at the end of each fis-
cal year as follows: 
‘‘(i) 85 percent to the Adjacent State. 
‘‘(ii) 5 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Deep Ocean 
Energy Resources Act of 2006. 
‘‘(iii) 5 percent into the account estab-
lished by section 23 of the Deep Ocean En-
ergy Resources Act of 2006. 
‘‘(iv) 5 percent into the account estab-
lished by section 26 of the Deep Ocean En-
ergy Resources Act of 2006. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
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thereon, shall be allocated at the end of each fis-
cal year as follows: 
‘‘(i) 85 percent to the Adjacent State 
and any other producing State or States 
with a leased tract within its Adjacent Zone 
within 100 miles of its coastline that gen-
erated royalties during the fiscal year, if the 
other producing or States have a coastline 
point within 300 miles of any portion of the 
leased tract, in which case the amount allo-
cated for the leased tract shall be— 
‘‘(I) one-third to the Adjacent 
State; and 
‘‘(II) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline 
of the producing State and the geo-
graphic center of the leased tract. 
‘‘(ii) 5 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Deep Ocean 
Energy Resources Act of 2006. 
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‘‘(iii) 5 percent into the account estab-
lished by section 23 of the Deep Ocean En-
ergy Resources Act of 2006. 
‘‘(iv) 5 percent into the account estab-
lished by section 26 of the Deep Ocean En-
ergy Resources Act of 2006. 
‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS 
PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE 
COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit into 
a separate account in the Treasury the portion of 
OCS Receipts for each fiscal year that will be shared 
under paragraphs (2) and (3). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2005, the Sec-
retary shall share OCS Receipts derived from the 
following areas: 
‘‘(i) Lease tracts located on portions of 
the Gulf of Mexico OCS Region partially or 
completely beyond 100 miles of any coast-
line that were available for leasing under 
the 2002–2007 5-Year Oil and Gas Leasing 
Program in effect prior to the date of enact-
ment of the Deep Ocean Energy Resources 
Act of 2006. 
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‘‘(ii) Lease tracts in production prior 
to October 1, 2005, partially or completely 
beyond 100 miles of any coastline located 
on portions of the OCS that were not avail-
able for leasing under the 2002–2007 5-Year 
OCS Oil and Gas Leasing Program in ef-
fect prior to the date of enactment of the 
Deep Ocean Energy Resources Act of 2006. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2005, located in 
the Alaska OCS Region partially or com-
pletely beyond 100 miles of the coastline. 
‘‘(B) The Secretary shall share the following 
percentages of OCS Receipts from the leases de-
scribed in subparagraph (A) derived during the 
fiscal year indicated: 
‘‘(i) For fiscal year 2006, 6.0 percent. 
‘‘(ii) For fiscal year 2007, 7.0 percent. 
‘‘(iii) For fiscal year 2008, 8.0 percent. 
‘‘(iv) For fiscal year 2009, 9.0 percent. 
‘‘(v) For fiscal year 2010, 12.0 percent. 
‘‘(vi) For fiscal year 2011, 15.0 per-
cent. 
‘‘(vii) For fiscal year 2012, 18.0 per-
cent. 
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‘‘(viii) For fiscal year 2013, 21.0 per-
cent. 
‘‘(ix) For fiscal year 2014, 24.0 per-
cent. 
‘‘(x) For fiscal year 2015, 27.0 percent. 
‘‘(xi) For fiscal year 2016, 30.0 per-
cent. 
‘‘(xii) For fiscal year 2017, 33.0 per-
cent. 
‘‘(xiii) For fiscal year 2018, 36.0 per-
cent. 
‘‘(xiv) For fiscal year 2019, 39.0 per-
cent. 
‘‘(xv) For fiscal year 2020, 42.0 per-
cent. 
‘‘(xvi) For fiscal year 2021, 45.0 per-
cent. 
‘‘(xvii) For fiscal year 2022 and each 
subsequent fiscal year, 50.0 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
6(2) of the Deep Ocean Energy Resources Act of 
2006. 
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‘‘(3) IMMEDIATE
RECEIPTS
SHARING.—Begin-
ning October 1, 2005, the Secretary shall share 50 
percent of OCS Receipts derived on and after October 
1, 2005, from all leases located partially or completely 
beyond 100 miles of any coastline not included within 
the provisions of paragraph (2). 
‘‘(4) ALLOCATIONS.—The Secretary shall allocate 
the OCS Receipts deposited into the separate account 
established by paragraph (1) that are shared under 
paragraphs (2) and (3) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including interest 
thereon, shall be allocated at the end of each fis-
cal year as follows: 
‘‘(i) 85 percent to the Adjacent State. 
‘‘(ii) 5 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Deep Ocean 
Energy Resources Act of 2006. 
‘‘(iii) 5 percent into the account estab-
lished by section 23 of the Deep Ocean En-
ergy Resources Act of 2006. 
‘‘(iv) 5 percent into the account estab-
lished by section 26 of the Deep Ocean En-
ergy Resources Act of 2006. 
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‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each fis-
cal year as follows: 
‘‘(i) 85 percent to the Adjacent State 
and any other producing State or States 
with a leased tract within its Adjacent Zone 
partially or completely beyond 100 miles of 
its coastline that generated royalties during 
the fiscal year, if the other producing State 
or States have a coastline point within 300 
miles of any portion of the leased tract, in 
which case the amount allocated for the 
leased tract shall be— 
‘‘(I) one-third to the Adjacent 
State; and 
‘‘(II) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline 
of the producing State and the geo-
graphic center of the leased tract. 
‘‘(ii) 5 percent into the account estab-
lished by section 14 of the Deep Ocean En-
ergy Resources Act of 2006. 
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