deposited all amounts collected as fees under para-
graph (1) and which shall be available as provided 
under paragraph (3). 
‘‘(3) AVAILABILITY OF FEES.— 
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 3302 of title 31, United States Code, all 
amounts deposited in the Fund— 
‘‘(i) shall be credited as offsetting col-
lections; 
‘‘(ii) shall be available for expenditure 
for purposes of carrying out inspections of 
outer Continental Shelf facilities (including 
mobile offshore drilling units) and the ad-
ministration of the inspection program 
under this section; 
‘‘(iii) shall be available only to the ex-
tent provided for in advance in an appro-
priations Act; and 
‘‘(iv) shall remain available until ex-
pended. 
‘‘(B) USE FOR FIELD OFFICES.—Not less 
than 75 percent of amounts in the Fund may 
be appropriated for use only for the respective 
Department of the Interior field offices where 
the amounts were originally assessed as fees. 
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‘‘(4) INITIAL FEES.—Fees shall be established 
under this subsection for the fiscal year in which 
this subsection takes effect and the subsequent 10 
years, and shall not be raised, except as determined 
by the Secretary to be appropriate as an adjustment 
equal to the percentage by which the Consumer 
Price Index for the month of June of the calendar 
year preceding the adjustment exceeds the Consumer 
Price Index for the month of June of the calendar 
year in which the claim was determined or last ad-
justed. 
‘‘(5) ANNUAL FEES.—Annual fees shall be col-
lected under this subsection for facilities that are 
above the waterline, excluding drilling rigs, and are 
in place at the start of the fiscal year. Fees for fiscal 
year 2019 shall be— 
‘‘(A) $10,500 for facilities with no wells, 
but with processing equipment or gathering 
lines; 
‘‘(B) $17,000 for facilities with 1 to 10 
wells, with any combination of active or inactive 
wells; and 
‘‘(C) $31,500 for facilities with more than 
10 wells, with any combination of active or in-
active wells. 
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‘‘(6) FEES FOR DRILLING RIGS.—Fees shall be 
collected under this subsection for drilling rigs on a 
per inspection basis. Fees for fiscal year 2019 shall 
be— 
‘‘(A) $30,500 per inspection for rigs oper-
ating in water depths of 1,000 feet or more; 
and 
‘‘(B) $16,700 per inspection for rigs oper-
ating in water depths of less than 1,000 feet. 
‘‘(7) BILLING.—The Secretary shall bill des-
ignated operators under paragraph (5) annually, 
with payment required within 30 days of billing. The 
Secretary shall bill designated operators under para-
graph (6) within 30 days of the end of the month 
in which the inspection occurred, with payment re-
quired within 30 days after billing. 
‘‘(8) ANNUAL REPORTS.— 
‘‘(A) IN
GENERAL.—Not later than 60 
days after the end of each fiscal year beginning 
with fiscal year 2019, the Secretary shall sub-
mit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on 
Natural Resources of the House of Representa-
tives a report on the operation of the Fund dur-
ing the fiscal year. 
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‘‘(B) CONTENTS.—Each report shall in-
clude, for the fiscal year covered by the report, 
the following: 
‘‘(i) A statement of the amounts de-
posited into the Fund. 
‘‘(ii) A description of the expenditures 
made from the Fund for the fiscal year, in-
cluding the purpose of the expenditures 
and the additional hiring of personnel. 
‘‘(iii) A statement of the balance re-
maining in the Fund at the end of the fis-
cal year. 
‘‘(iv) An accounting of pace of permit 
approvals. 
‘‘(v) If fee increases are proposed, a 
proper accounting of the potential adverse 
economic impacts such fee increases will 
have on offshore economic activity and 
overall production. 
‘‘(vi) Recommendations to increase 
the efficacy and efficiency of offshore in-
spections. 
‘‘(vii) Any corrective actions levied 
upon offshore inspectors as a result of any 
form of misconduct. 
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‘‘(9) SUNSET.—No fee may be collected under 
this subsection for any fiscal year after fiscal year 
2029.’’. 
SEC. 107. ARCTIC RULE SHALL HAVE NO FORCE OR EF-
FECT. 
The rule entitled ‘‘Oil and Gas and Sulfur Operations 
on the Outer Continental Shelf—Requirements for Ex-
ploratory Drilling on the Arctic Outer Continental Shelf’’ 
and published in the Federal Register on July 15, 2016 
(81 Fed. Reg. 46478), shall have no force or effect. 
SEC. 108. APPLICATION OF OUTER CONTINENTAL SHELF 
LANDS ACT WITH RESPECT TO TERRITORIES 
OF THE UNITED STATES. 
(a) IN GENERAL.—Section 2 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331) is amended— 
(1) in paragraph (a), by inserting after ‘‘con-
trol’’ the following: ‘‘or lying within exclusive eco-
nomic zone of the United States’’; 
(2) in paragraph (p), by striking ‘‘and’’ after 
the semicolon at the end; 
(3) in paragraph (q), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(r) The term ‘State’ includes each territory of the 
United States.’’. 
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(b) EXCLUSIONS.— 
(1) Section 4(a) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333) is amended by adding 
at the end the following: 
‘‘(4) This section shall not apply to the terri-
tories and possessions of the United States.’’. 
(2) Section 18 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1344) is amended by adding 
at the end the following: 
‘‘(i) This section shall not apply to the scheduling of 
lease sales in the outer Continental Shelf adjacent to the 
territories and possessions of the United States.’’. 
(c) EXPLORATION LICENSES AND LEASES.—Section 
8(k) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337) is amended by adding at the end the following: 
‘‘(3) EXPLORATION LICENSES AND LEASES ON 
OUTER CONTINENTAL SHELF ADJACENT TO TERRI-
TORIES AND POSSESSIONS.— 
‘‘(A) IN GENERAL.—The Secretary is au-
thorized to grant to any qualified applicant an 
exploration license which will provide the exclu-
sive right to explore for minerals, other than 
oil, gas, and sulphur, in an area lying within 
the United States exclusive economic zone and 
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