I 
112TH CONGRESS 
1ST SESSION H. R. 1870 
To safely increase domestic oil and gas production, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 12, 2011 
Mr. CONNOLLY of Virginia (for himself, Mr. BISHOP of New York, Mr. WAX-
MAN, Mr. MARKEY, Ms. ESHOO, and Mr. LARSON of Connecticut) intro-
duced the following bill; which was referred to the Committee on Natural 
Resources, and in addition to the Committees on Science, Space, and 
Technology, Energy and Commerce, Transportation and Infrastructure, 
and Education and the Workforce, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To safely increase domestic oil and gas production, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Increase American Energy Production Now Act of 
2011’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—CREATION OF NEW DEPARTMENT OF THE INTERIOR 
AGENCIES 
Sec. 101. Bureau of Ocean Energy Management. 
Sec. 102. Bureau of Safety and Environmental Enforcement. 
Sec. 103. Office of Natural Resources Revenue. 
Sec. 104. Ethics. 
Sec. 105. References. 
Sec. 106. Abolishment of Minerals Management Service. 
Sec. 107. Conforming amendment. 
Sec. 108. Outer Continental Shelf Safety and Environmental Advisory Board. 
Sec. 109. Limitation on effect on development of ocean renewable energy re-
source facilities. 
Sec. 110. Annual report on offshore energy development activities. 
TITLE II—FEDERAL OIL AND GAS DEVELOPMENT 
Sec. 201. Short title. 
Sec. 202. Definitions. 
Sec. 203. National policy for the Outer Continental Shelf. 
Sec. 204. Jurisdiction of laws on the Outer Continental Shelf. 
Sec. 205. Outer Continental Shelf leasing standard. 
Sec. 206. Chemical Safety Board Investigation. 
Sec. 207. Leases, easements, and rights-of-way. 
Sec. 208. Exploration plans. 
Sec. 209. Outer Continental Shelf leasing program. 
Sec. 210. Environmental studies. 
Sec. 211. Safety regulations. 
Sec. 212. Enforcement of safety and environmental regulations. 
Sec. 213. Judicial review. 
Sec. 214. Remedies and penalties. 
Sec. 215. Uniform planning for Outer Continental Shelf. 
Sec. 216. Oil and gas information program. 
Sec. 217. Limitation on royalty-in-kind program. 
Sec. 218. Restrictions on employment. 
Sec. 219. Repeal of royalty relief provisions. 
Sec. 220. Manning and buy- and build-American requirements. 
Sec. 221. Coordination and consultation with affected state and local govern-
ments. 
Sec. 222. Implementation. 
Sec. 223. Report on environmental baseline studies. 
Sec. 224. Cumulative impacts on marine mammal species and stocks and sub-
sistence use. 
Sec. 225. Savings clause. 
TITLE III—OIL AND GAS ROYALTY REFORM 
Sec. 301. Amendments to definitions. 
Sec. 302. Compliance reviews. 
Sec. 303. Clarification of liability for royalty payments. 
Sec. 304. Required recordkeeping. 
Sec. 305. Fines and penalties. 
Sec. 306. Interest on overpayments. 
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Sec. 307. Adjustments and refunds. 
Sec. 308. Conforming amendment. 
Sec. 309. Obligation period. 
Sec. 310. Notice regarding tolling agreements and subpoenas. 
Sec. 311. Appeals and final agency action. 
Sec. 312. Assessments. 
Sec. 313. Collection and production accountability. 
Sec. 314. Natural gas reporting. 
Sec. 315. Penalty for late or incorrect reporting of data. 
Sec. 316. Required recordkeeping. 
Sec. 317. Shared civil penalties. 
Sec. 318. Entitlements. 
Sec. 319. Limitation on royalty in-kind program. 
Sec. 320. Application of royalty to oil that is saved, removed, sold, or dis-
charged under offshore oil and gas leases. 
Sec. 321. Disposition of revenue. 
TITLE IV—GULF OF MEXICO RESTORATION 
Sec. 401. Short title. 
Sec. 402. Gulf coast ecosystem restoration. 
TITLE V—COORDINATION AND PLANNING 
Sec. 501. Regional coordination. 
Sec. 502. Regional Coordination Councils. 
Sec. 503. Regional strategic plans. 
Sec. 504. Regulations and savings clause. 
Sec. 505. Ocean Resources Conservation and Assistance Fund. 
Sec. 506. Waiver. 
TITLE VI—OIL SPILL ACCOUNTABILITY AND ENVIRONMENTAL 
PROTECTION 
Sec. 601. Short title. 
Sec. 602. Repeal of and adjustments to limitation on liability. 
Sec. 603. Evidence of financial responsibility for offshore facilities. 
Sec. 604. Damages to human health. 
Sec. 605. Clarification of liability for discharges from mobile offshore drilling 
units. 
Sec. 606. Standard of review for damage assessment. 
Sec. 607. Procedures for claims against Fund; Information on claims. 
Sec. 608. Additional amendments and clarifications to Oil Pollution Act of 
1990. 
Sec. 609. Americanization of offshore operations in the Exclusive Economic 
Zone. 
Sec. 610. Safety management systems for mobile offshore drilling units. 
Sec. 611. Safety standards for mobile offshore drilling units. 
Sec. 612. Operational control of mobile offshore drilling units. 
Sec. 613. Single-hull tankers. 
Sec. 614. Repeal of response plan waiver. 
Sec. 615. National Contingency Plan. 
Sec. 616. Tracking Database. 
Sec. 617. Evaluation and approval of response plans; maximum penalties. 
Sec. 618. Oil and hazardous substance cleanup technologies. 
Sec. 619. Implementation of oil spill prevention and response authorities. 
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Sec. 620. Impacts to Indian Tribes and public service damages. 
Sec. 621. Federal enforcement actions. 
Sec. 622. Time required before electing to proceed with judicial claim or 
against the Fund. 
Sec. 623. Authorized level of Coast Guard personnel. 
Sec. 624. Clarification of memorandums of understanding. 
Sec. 625. Build America requirement for offshore facilities. 
Sec. 626. Oil spill response vessel database. 
Sec. 627. Offshore sensing and monitoring systems. 
Sec. 628. Oil and gas exploration and production. 
Sec. 629. Authorization of appropriations. 
Sec. 630. Extension of liability to persons having ownership interests in respon-
sible parties. 
Sec. 631. Clarification of liability under Oil Pollution Act of 1990. 
Sec. 632. Salvage activities. 
Sec. 633. Requirement for redundancy in response plans. 
Sec. 634. Federal Oil Spill Research Program. 
Sec. 635.
Oil Spill Liability Trust Fund. 
TITLE VII—DILIGENT DEVELOPMENT OF FEDERAL OIL AND GAS 
LEASES 
Sec. 701. Clarification. 
Sec. 702. Covered provisions. 
Sec. 703. Regulations. 
Sec. 704. Resource estimates and leasing program management indicators. 
Sec. 705. Production incentive fee. 
TITLE VIII—NATIONAL PETROLEUM RESERVE IN ALASKA 
Sec. 801. Acceleration of lease sales for National Petroleum Reserve in Alaska. 
Sec. 802. National Petroleum Reserve in Alaska: Pipeline construction. 
Sec. 803. Project labor agreements and other pipeline requirements. 
Sec. 804. Provisions relating to lease terms in the National Petroleum Reserve 
in Alaska. 
TITLE IX—STUDY OF ACTIONS TO IMPROVE THE ACCURACY OF 
COLLECTION OF ROYALTIES 
Sec. 901. Short title. 
Sec. 902. Study of actions to improve the accuracy of collection of Federal oil, 
condensate, and natural gas royalties. 
Sec. 903. Definitions. 
TITLE X—OFFSHORE OIL AND GAS WORKER WHISTLEBLOWER 
PROTECTION 
Sec. 1001. Short title. 
Sec. 1002. Whistleblower protections; employee protection from other retalia-
tion. 
Sec. 1003. Definitions. 
TITLE XI—MISCELLANEOUS PROVISIONS 
Sec. 1101. Repeal of certain taxpayer subsidized royalty relief for the oil and 
gas industry. 
Sec. 1102. Leasing on Indian lands. 
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Sec. 1103. Outer Continental Shelf State boundaries. 
Sec. 1104. Liability for damages to national wildlife refuges. 
Sec. 1105. Strengthening coastal State oil spill planning and response. 
Sec. 1106. Information sharing. 
Sec. 1107. Limitation on use of funds. 
Sec. 1108. Environmental review. 
Sec. 1109. Government Accountability Office evaluation. 
Sec. 1110. Study on relief wells. 
Sec. 1111. Flow rate technical group. 
SEC. 2. DEFINITIONS. 
For the purposes of this Act: 
(1) AFFECTED INDIAN TRIBE.—The term ‘‘af-
fected Indian tribe’’ means an Indian tribe that has 
federally reserved rights that are affirmed by treaty, 
statute, Executive order, Federal court order, or 
other Federal law in the area at issue. 
(2) 
COASTAL
STATE.—The 
term 
‘‘coastal 
State’’ has the same meaning given the term ‘‘coast-
al state’’ in section 304 of the Coastal Zone Man-
agement Act of 1972 (16 U.S.C. 1453). 
(3) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of the Interior, except as the 
context indicates otherwise. 
(4) FUNCTION.—The term ‘‘function’’, with re-
spect to a function of an officer, employee, or agent 
of the Federal Government, or of a Department, 
agency, office, or other instrumentality of the Fed-
eral Government, includes authorities, powers, 
rights, privileges, immunities, programs, projects, 
activities, duties, and responsibilities. 
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(5) IMPORTANT ECOLOGICAL AREA.—The term 
‘‘important ecological area’’ means an area that con-
tributes significantly to local or larger marine eco-
system health or is an especially unique or sensitive 
marine ecosystem. 
(6) INDIAN
LAND.—The term ‘‘Indian land’’ 
has the meaning given the term in section 502(a) of 
title V of Public Law 109–58 (25 U.S.C. 3501(2)). 
(7) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the same meaning given the term ‘‘Indian tribe’’ 
has in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b). 
(8) MARINE ECOSYSTEM HEALTH.—The term 
‘‘marine ecosystem health’’ means the ability of an 
ecosystem in ocean and coastal waters to support 
and maintain patterns, important processes, and 
productive, sustainable, and resilient communities of 
organisms, having a species composition, diversity, 
and functional organization resulting from the nat-
ural habitat of the region, such that it is capable of 
supporting a variety of activities and providing a 
complete range of ecological benefits. Such an eco-
system would be characterized by a variety of fac-
tors, including— 
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(A) a complete diversity of native species 
and habitat wherein each native species is able 
to maintain an abundance, population struc-
ture, and distribution supporting its ecological 
and evolutionary functions, patterns, and proc-
esses; and 
(B) a physical, chemical, geological, and 
microbial environment that is necessary to 
achieve such diversity. 
(9) MINERAL.—The term ‘‘mineral’’ has the 
same meaning that the term ‘‘minerals’’ has in sec-
tion 2(q) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331(q)). 
(10) NONRENEWABLE
ENERGY
RESOURCE.— 
The term ‘‘nonrenewable energy resource’’ means oil 
and natural gas. 
(11) 
OPERATOR.—The 
term 
‘‘operator’’ 
means— 
(A) the lessee; or 
(B) a person designated by the lessee as 
having control or management of operations on 
the leased area or a portion thereof, who is— 
(i) approved by the Secretary, acting 
through the Bureau of Ocean Energy Man-
agement, Regulation and Enforcement; or 
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(ii) the holder of operating rights 
under an assignment of operating rights 
that is approved by the Secretary, acting 
through the Bureau of Ocean Energy Man-
agement, Regulation and Enforcement. 
(12) OUTER CONTINENTAL SHELF.—The term 
‘‘Outer Continental Shelf’’ has the same meaning 
given the term ‘‘outer Continental Shelf’’ in the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.). 
(13) REGIONAL
OCEAN
PARTNERSHIP.—The 
term ‘‘Regional Ocean Partnership’’ means vol-
untary, collaborative management initiatives devel-
oped and entered into by the Governors of two or 
more coastal States or created by an interstate com-
pact for the purpose of addressing more than one 
ocean, coastal, or Great Lakes issue and to imple-
ment policies and activities identified under special 
area management plans under the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1451 et seq.) 
or other agreements developed and signed by the 
Governors. 
(14) RENEWABLE
ENERGY
RESOURCE.—The 
term ‘‘renewable energy resource’’ means each of the 
following: 
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(A) Wind energy. 
(B) Solar energy. 
(C) Geothermal energy. 
(D) Landfill gas. 
(E) Marine and hydrokinetic renewable en-
ergy, as that term is defined in section 632 of 
the Energy Independence and Security Act of 
2007 (42 U.S.C. 17211). 
(15) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior, except as other-
wise provided in this Act. 
(16) TERMS DEFINED IN OTHER LAW.—Each 
of the terms ‘‘Federal land’’, ‘‘lease’’, and ‘‘mineral 
leasing law’’ has the same meaning given the term 
under the Federal Oil and Gas Royalty Management 
Act of 1982 (30 U.S.C. 1701 et seq.), except that 
such terms shall also apply to all minerals and re-
newable energy resources in addition to oil and gas. 
TITLE I—CREATION OF NEW DE-
PARTMENT OF THE INTERIOR 
AGENCIES 
SEC. 101. BUREAU OF OCEAN ENERGY MANAGEMENT. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Interior a Bureau of Ocean Energy 
Management (referred to in this section as the ‘‘Bureau’’) 
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to be headed by a Director of Energy Management (re-
ferred to in this section as the ‘‘Director’’). 
(b) DIRECTOR.— 
(1) APPOINTMENT.—The Director shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, on the basis of— 
(A) professional background, demonstrated 
competence, and ability; and 
(B) capacity to— 
(i) administer the provisions of this 
Act; and 
(ii) ensure that the fiduciary duties of 
the United States Government on behalf of 
the people of the United States, as they re-
late to development of nonrenewable and 
renewable energy and mineral resources, 
are duly met. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN GENERAL.—Except as provided in para-
graph (4), the Secretary shall carry out through the 
Bureau all functions, powers, and duties vested in 
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the Secretary relating to the administration of a 
comprehensive program of offshore nonrenewable 
and renewable energy and mineral resources man-
agement— 
(A) on the Outer Continental Shelf, pursu-
ant to the Outer Continental Shelf Lands Act 
as amended by this Act (43 U.S.C. 1331 et 
seq.); and 
(B) pursuant to this Act and all other ap-
plicable Federal laws, including the administra-
tion and approval of all instruments and agree-
ments required to ensure orderly, safe, and en-
vironmentally responsible offshore nonrenewable 
and renewable energy and mineral resources de-
velopment activities. 
(2) SPECIFIC
AUTHORITIES.—The Director 
shall promulgate and implement regulations for the 
proper issuance of leases for the exploration, devel-
opment, and production of nonrenewable and renew-
able energy and mineral resources, and for the 
issuance of permits under such leases, on the Outer 
Continental Shelf, including regulations relating to 
resource identification, access, evaluation, and utili-
zation. 
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(3) 
INDEPENDENT
ENVIRONMENTAL 
SCIENCE.— 
(A) IN
GENERAL.—The Secretary shall 
create an independent office within the Bureau 
that— 
(i) shall report to the Director; 
(ii) shall be programmatically separate 
and distinct from the leasing and permit-
ting activities of the Bureau; and 
(iii) shall— 
(I) carry out the environmental 
studies program under section 20 of 
the Outer Continental Shelf Lands 
Act (43 U.S.C. 1346); 
(II) conduct any environmental 
analyses necessary for the programs 
administered by the Bureau; and 
(III) carry out other functions as 
deemed necessary by the Secretary. 
(B) CONSULTATION.—Studies and anal-
yses carried out by the office created under sub-
paragraph (A) shall be conducted in appro-
priate and timely consultation with other rel-
evant Federal agencies, including— 
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(i) the Bureau of Safety and Environ-
mental Enforcement; 
(ii) the United States Fish and Wild-
life Service; 
(iii) the United States Geological Sur-
vey; and 
(iv) the National Oceanic and Atmos-
pheric Administration. 
(4) LIMITATION.—The Secretary shall not carry 
out through the Bureau any function, power, or duty 
that is— 
(A) required by section 102 to be carried 
out through Bureau of Safety and Environ-
mental Enforcement; or 
(B) required by section 103 to be carried 
out through the Office of Natural Resources 
Revenue. 
(d) COMPREHENSIVE
DATA
AND
ANALYSES
ON 
OUTER CONTINENTAL SHELF RESOURCES.— 
(1) IN GENERAL.— 
(A) PROGRAMS.—The Director shall de-
velop and carry out programs for the collection, 
evaluation, assembly, analysis, and dissemina-
tion of data and information that is relevant to 
carrying out the duties of the Bureau, including 
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studies under section 20 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1346). 
(B) USE OF DATA AND INFORMATION.— 
The Director shall, in carrying out functions 
pursuant to the Outer Continental Lands Act 
(43 U.S.C. 1331 et seq.), consider data and in-
formation referred to in subparagraph (A) 
which shall inform the management functions 
of the Bureau, and shall contribute to a broader 
coordination of development activities within 
the contexts of the best available science and 
marine spatial planning. 
(2) INTERAGENCY COOPERATION.—In carrying 
out programs under this subsection, the Bureau 
shall— 
(A) utilize the authorities of subsection (g) 
and (h) of section 18 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1344); 
(B) cooperate with appropriate offices in 
the Department and in other Federal agencies; 
(C) use existing inventories and mapping 
of marine resources previously undertaken by 
the Minerals Management Service, mapping un-
dertaken by the United States Geological Sur-
vey and the National Oceanographic and At-
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mospheric Administration, and information pro-
vided by the Department of Defense and other 
Federal and State agencies possessing relevant 
data; and 
(D) use any available data regarding re-
newable energy potential, navigation uses, fish-
eries, aquaculture uses, recreational uses, habi-
tat, conservation, and military uses of the 
Outer Continental Shelf. 
(e) RESPONSIBILITIES
OF
LAND
MANAGEMENT 
AGENCIES.—Nothing in this section shall affect the au-
thorities of the Bureau of Land Management under the 
Federal Land Policy and Management Act of 1976 (43 
U.S.C. 1701 et seq.) or of the Forest Service under the 
National Forest Management Act of 1976 (Public Law 
94–588). 
SEC. 102. BUREAU OF SAFETY AND ENVIRONMENTAL EN-
FORCEMENT. 
(a) ESTABLISHMENT.—There is established in the 
Department a Bureau of Safety and Environmental En-
forcement (referred to in this section as the ‘‘Bureau’’) 
to be headed by a Director of Safety and Environmental 
Enforcement (referred to in this section as the ‘‘Direc-
tor’’). 
(b) DIRECTOR.— 
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(1) APPOINTMENT.—The Director shall be ap-
pointed by the President for a fixed term of five 
years, by and with the advice and consent of the 
Senate, on the basis of— 
(A) professional background, demonstrated 
competence, and ability; and 
(B) capacity to administer the provisions 
of this Act. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN
GENERAL.—The Secretary shall carry 
out through the Bureau all functions, powers, and 
duties vested in the Secretary relating to the admin-
istration of safety and environmental enforcement 
activities related to offshore nonrenewable and re-
newable energy and mineral resources— 
(A) on the Outer Continental Shelf pursu-
ant to the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.); and 
(B) pursuant to— 
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(i) the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1701 
et seq.); 
(ii) the Energy Policy Act of 2005 
(Public Law 109–58); 
(iii) the Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1996 
(Public Law 104–185); 
(iv) the Forest and Rangeland Renew-
able Resources Planning Act of 1974 (16 
U.S.C. 1600 et seq.); 
(v) the Federal Land Policy and Man-
agement Act of 1976 (43 U.S.C. 1701 et 
seq.); 
(vi) this Act; and 
(vii) all other applicable Federal laws, 
including the authority to develop, promulgate, 
and enforce regulations to ensure the safe and 
environmentally sound exploration, develop-
ment, and production of nonrenewable and re-
newable energy and mineral resources on the 
Outer Continental Shelf. 
(d) AUTHORITIES.—In carrying out the duties under 
this section, the Secretary’s authorities shall include— 
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(1) performing necessary oversight activities to 
ensure the proper application of environmental re-
views, including those conducted pursuant to the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) by the Bureau of Ocean En-
ergy Management in the performance of its duties 
under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.); 
(2) suspending or prohibiting, on a temporary 
basis, any operation or activity, including production 
on leases held on the Outer Continental Shelf, in ac-
cordance with section 5(a)(1) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1334(a)(1)); 
(3) cancelling any lease, permit, or right-of-way 
on the Outer Continental Shelf, in accordance with 
section 5(a)(2) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1334(a)(2)); 
(4) compelling compliance with applicable work-
er safety and environmental laws and regulations; 
(5) requiring comprehensive safety and environ-
mental management programs for persons engaged 
in activities connected with the exploration, develop-
ment, and production of energy or mineral re-
sources; 
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(6) developing and implementing regulations for 
Federal employees to carry out any inspection or in-
vestigation to ascertain compliance with applicable 
regulations, including health, safety, or environ-
mental regulations; 
(7) collecting, evaluating, assembling, analyzing, 
and publicly disseminating electronically data and 
information that is relevant to inspections, failures, 
or accidents involving equipment and systems used 
for exploration and production of energy and min-
eral resources, including human factors associated 
therewith; 
(8) implementing the Offshore Technology Re-
search and Risk Assessment Program under section 
21 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1347); 
(9) summoning witnesses and directing the pro-
duction of evidence; 
(10) levying fines and penalties and disquali-
fying operators; and 
(11) carrying out any safety, response, and re-
moval preparedness functions. 
(e) EMPLOYEES.— 
(1) IN GENERAL.—The Secretary shall ensure 
that the inspection force of the Bureau consists of 
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qualified, trained employees who meet qualification 
requirements and adhere to the highest professional 
and ethical standards. 
(2) QUALIFICATIONS.—The qualification re-
quirements referred to in paragraph (1)— 
(A) shall be determined by the Secretary, 
subject to subparagraph (B); and 
(B) shall include— 
(i) three years of practical experience 
in oil and gas exploration, development, or 
production; or 
(ii) a degree in an appropriate field of 
engineering from an accredited institution 
of higher learning. 
(3) ASSIGNMENT.—In assigning oil and gas in-
spectors to the inspection and investigation of indi-
vidual operations, the Secretary shall give due con-
sideration to the extent possible to their previous ex-
perience in the particular type of oil and gas oper-
ation in which such inspections are to be made. 
(4) TRAINING ACADEMY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish and maintain a National Oil and Gas 
Health and Safety Academy (referred to in this 
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paragraph as the ‘‘Academy’’) as an agency of 
the Department of the Interior. 
(B) FUNCTIONS OF ACADEMY.—The Sec-
retary, through the Academy, shall be respon-
sible for— 
(i) the initial and continued training 
of both newly hired and experienced oil 
and gas inspectors in all aspects of health, 
safety, environmental, and operational in-
spections; 
(ii) the training of technical support 
personnel of the Bureau; 
(iii) any other training programs for 
oil and gas inspectors, Bureau personnel, 
Department personnel, or other persons as 
the Secretary shall designate; and 
(iv) certification of the successful 
completion of training programs for newly 
hired and experienced oil and gas inspec-
tors. 
(C) COOPERATIVE AGREEMENTS.— 
(i) IN GENERAL.—In performing func-
tions under this paragraph, and subject to 
clause (ii), the Secretary may enter into 
cooperative educational and training agree-
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ments with educational institutions, related 
Federal academies, other Federal agencies, 
State governments, labor organizations, 
safety training firms, and oil and gas oper-
ators and related industries. 
(ii) TRAINING
REQUIREMENT.—Such 
training shall be conducted by the Acad-
emy in accordance with curriculum needs 
and assignment of instructional personnel 
established by the Secretary. 
(D) 
USE
OF
DEPARTMENTAL
PER-
SONNEL.—In performing functions under this 
subsection, the Secretary shall use, to the ex-
tent practicable, the facilities and personnel of 
the Department of the Interior. The Secretary 
may appoint or assign to the Academy such of-
ficers and employees as the Secretary considers 
necessary for the performance of the duties and 
functions of the Academy. 
(5) ADDITIONAL TRAINING PROGRAMS.— 
(A) IN
GENERAL.—The Secretary shall 
work with appropriate educational institutions, 
operators, and representatives of oil and gas 
workers to develop and maintain adequate pro-
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grams with educational institutions and oil and 
gas operators, that are designed— 
(i) to enable persons to qualify for po-
sitions in the administration of this Act; 
and 
(ii) to provide for the continuing edu-
cation of inspectors or other appropriate 
Departmental personnel. 
(B) FINANCIAL
AND
TECHNICAL
ASSIST-
ANCE.—The Secretary may provide financial 
and technical assistance to educational institu-
tions in carrying out this paragraph. 
(6) ROLE OF OIL OR GAS OPERATORS AND RE-
LATED
INDUSTRIES.—The Secretary shall ensure 
that any cooperative agreement or other collabora-
tion with a representative of an oil or gas operator 
or related industry in relation to a training program 
established under paragraph (4) or paragraph (5) is 
limited to consultation regarding curricula and does 
not extend to the provision of instructional per-
sonnel. 
SEC. 103. OFFICE OF NATURAL RESOURCES REVENUE. 
(a) ESTABLISHMENT.—There is established in the 
Department an Office of Natural Resources Revenue (re-
ferred to in this section as the ‘‘Office’’) to be headed by 
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a Director of Natural Resources Revenue (referred to in 
this section as the ‘‘Director’’). 
(b) APPOINTMENT AND COMPENSATION.— 
(1) IN GENERAL.—The Director shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, on the basis of— 
(A) professional competence; and 
(B) capacity to— 
(i) administer the provisions of this 
Act; and 
(ii) ensure that the fiduciary duties of 
the United States Government on behalf of 
the American people, as they relate to de-
velopment of nonrenewable and renewable 
energy and mineral resources, are duly 
met. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN
GENERAL.—The Secretary shall carry 
out, through the Office— 
(A) all functions, powers, and duties vested 
in the Secretary and relating to the administra-
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tion of offshore royalty and revenue manage-
ment functions pursuant to— 
(i) the Outer Continental Shelf Lands 
Act (43 U.S.C. 1331 et seq.); and 
(ii) this Act and all other applicable 
Federal laws; and 
(B) all functions, powers, and duties pre-
viously assigned to the Minerals Management 
Service (including the authority to develop, pro-
mulgate, and enforce regulations) regarding off-
shore— 
(i) royalty and revenue collection; 
(ii) royalty and revenue distribution; 
(iii) auditing and compliance; 
(iv) investigation and enforcement of 
royalty and revenue regulations; and 
(v) asset management for onshore and 
offshore activities. 
(d) OVERSIGHT.—In order to provide transparency 
and ensure strong oversight over the revenue program, the 
Secretary shall create within the Office an independent 
audit and oversight program responsible for monitoring 
the performance of the Office with respect to the duties 
and functions under subsection (c), and conducting inter-
nal control audits of the operations of the Office. 
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SEC. 104. ETHICS. 
(a) CERTIFICATION.—The Secretary shall certify an-
nually that all Department of the Interior officers and em-
ployees having regular, direct contact with lessees and op-
erators as a function of their official duties are in full com-
pliance with all Federal employee ethics laws and regula-
tions under the Ethics in Government Act of 1978 (5 
U.S.C. App.) and part 2635 of title 5, Code of Federal 
Regulations, and all guidance issued under subsection (b). 
(b) GUIDANCE.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall issue 
supplementary ethics guidance for the employees for which 
certification is required under subsection (a). The Sec-
retary shall update the supplementary ethics guidance not 
less than once every 3 years thereafter. 
SEC. 105. REFERENCES. 
(a) BUREAU
OF OCEAN ENERGY MANAGEMENT, 
REGULATION AND ENFORCEMENT.—Any reference in any 
law, rule, regulation, directive, instruction, certificate, or 
other official document, in force immediately before the 
enactment of this Act— 
(1) to the Minerals Management Service that 
pertains to any of the duties and authorities referred 
to in section 101 is deemed to refer and apply to the 
Bureau of Ocean Energy Management established 
by section 101; 
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(2) to the Director of the Minerals Management 
Service that pertains to any of the duties and au-
thorities referred to in section 101 is deemed to 
refer and apply to the Director of the Bureau of 
Ocean Energy Management; and 
(3) to any other position in the Minerals Man-
agement Service that pertains to any of the duties 
and authorities referred to in section 101 is deemed 
to refer and apply to that same or equivalent posi-
tion in the Bureau of Ocean Energy Management. 
(b) BUREAU OF SAFETY AND ENVIRONMENTAL EN-
FORCEMENT.—Any reference in any law, rule, regulation, 
directive, instruction, certificate, or other official docu-
ment in force immediately before the enactment of this 
Act— 
(1) to the Minerals Management Service that 
pertains to any of the duties and authorities referred 
to in section 102 is deemed to refer and apply to the 
Bureau of Safety and Environmental Enforcement 
established by section 102; 
(2) to the Director of the Minerals Management 
Service that pertains to any of the duties and au-
thorities referred to in section 102 is deemed to 
refer and apply to the Director of the Bureau of 
Safety and Environmental Enforcement; and 
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SEC. 106. ABOLISHMENT OF MINERALS MANAGEMENT 
SERVICE. 
(a) ABOLISHMENT.—The Minerals Management 
Service (in this section referred to as the ‘‘Service’’) is 
abolished. 
(b) COMPLETED ADMINISTRATIVE ACTIONS.— 
(1) IN
GENERAL.—Completed administrative 
actions of the Service shall not be affected by the 
enactment of this Act, but shall continue in effect 
according to their terms until amended, modified, 
superseded, terminated, set aside, or revoked in ac-
cordance with law by an officer of the United States 
or a court of competent jurisdiction, or by operation 
of law. 
(2) COMPLETED ADMINISTRATIVE ACTION DE-
FINED.—For purposes of paragraph (1), the term 
‘‘completed administrative action’’ includes orders, 
determinations, rules, regulations, personnel actions, 
permits, agreements, grants, contracts, certificates, 
licenses, registrations, and privileges. 
(c) PENDING PROCEEDINGS.—Subject to the author-
ity of the Secretary of the Interior and the officers of the 
Department of the Interior under this Act— 
(1) pending proceedings in the Service, includ-
ing notices of proposed rulemaking, and applications 
for licenses, permits, certificates, grants, and finan-
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cial assistance, shall continue, notwithstanding the 
enactment of this Act or the vesting of functions of 
the Service in another agency, unless discontinued or 
modified under the same terms and conditions and 
to the same extent that such discontinuance or 
modification could have occurred if this Act had not 
been enacted; and 
(2) orders issued in such proceedings, and ap-
peals therefrom, and payments made pursuant to 
such orders, shall issue in the same manner and on 
the same terms as if this Act had not been enacted, 
and any such orders shall continue in effect until 
amended, modified, superseded, terminated, set 
aside, or revoked by an officer of the United States 
or a court of competent jurisdiction, or by operation 
of law. 
(d) PENDING CIVIL ACTIONS.—Subject to the au-
thority of the Secretary of the Interior or any officer of 
the Department of the Interior under this Act, pending 
civil actions shall continue notwithstanding the enactment 
of this Act, and in such civil actions, proceedings shall be 
had, appeals taken, and judgments rendered and enforced 
in the same manner and with the same effect as if such 
enactment had not occurred. 
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(e) REFERENCES.—References relating to the Service 
in statutes, Executive orders, rules, regulations, directives, 
or delegations of authority that precede the effective date 
of this Act are deemed to refer, as appropriate, to the De-
partment, to its officers, employees, or agents, or to its 
corresponding organizational units or functions. Statutory 
reporting requirements that applied in relation to the 
Service immediately before the effective date of this Act 
shall continue to apply. 
SEC. 107. CONFORMING AMENDMENT. 
Section 5316 of title 5, United States Code, is 
amended by striking ‘‘Director, Bureau of Mines, Depart-
ment of the Interior.’’ and inserting the following new 
items: 
‘‘Director, Bureau of Ocean Energy Manage-
ment, Department of the Interior. 
‘‘Director, Bureau of Safety and Environmental 
Enforcement, Department of the Interior. 
‘‘Director, Office of Natural Resources Rev-
enue, Department of the Interior.’’. 
SEC. 108. OUTER CONTINENTAL SHELF SAFETY AND ENVI-
RONMENTAL ADVISORY BOARD. 
(a) ESTABLISHMENT.—The Secretary shall establish, 
under the Federal Advisory Committee Act, an Outer Con-
tinental Shelf Safety and Environmental Advisory Board 
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(referred to in this section as the ‘‘Board’’), to provide 
the Secretary and the Directors of the bureaus established 
by this title with independent scientific and technical ad-
vice on safe and environmentally compliant nonrenewable 
and renewable energy and mineral resource exploration, 
development, and production activities. 
(b) MEMBERSHIP.— 
(1) SIZE.—The Board shall consist of not more 
than 12 members, chosen to reflect a range of exper-
tise in scientific, engineering, management, environ-
mental, and other disciplines related to safe and en-
vironmentally compliant renewable and nonrenewable 
energy and mineral resource exploration, develop-
ment, and production activities. The Secretary shall 
consult with the National Academy of Sciences and 
the National Academy of Engineering to identify po-
tential candidates for the Board. 
(2) TERM.—The Secretary shall appoint Board 
members to staggered terms of not more than 4 
years, and shall not appoint a member for more 
than 2 consecutive terms. 
(3) BALANCE.—In appointing members to the 
Board, the Secretary shall ensure a balanced rep-
resentation of industry- and nonindustry-related in-
terests. 
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(c) CHAIR.—The Secretary shall appoint the Chair 
for the Board. 
(d) MEETINGS.—The Board shall meet not less than 
3 times per year and, at least once per year, shall host 
a public forum to review and assess the overall safety and 
environmental performance of Outer Continental Shelf 
nonrenewable and renewable energy and mineral resource 
activities. 
(e) OFFSHORE DRILLING SAFETY ASSESSMENTS 
AND RECOMMENDATIONS.—As part of its duties under 
this section, the Board shall, by not later than 180 days 
after the date of enactment of this section and every 5 
years thereafter, submit to the Secretary a report that— 
(1) assesses offshore oil and gas well control 
technologies, practices, voluntary standards, and 
regulations in the United States and elsewhere; 
(2) assesses offshore oil and gas well control 
technologies, practices, voluntary standards, regula-
tions, and technologies and practices used to esti-
mate the flow rate of hydrocarbons in the United 
States and elsewhere; and 
(3) as appropriate, recommends modifications 
to the regulations issued under this Act to ensure 
adequate protection of safety and the environment. 
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(f) REPORTS.—Reports of the Board shall be sub-
mitted to the Congress and made available to the public 
in electronically accessible form. 
(g) TRAVEL EXPENSES.—Members of the Board, 
other than full-time employees of the Federal Government, 
while attending meeting of the Board or while otherwise 
serving at the request of the Secretary or the Director 
while serving away from their homes or regular places of 
business, may be allowed travel expenses, including per 
diem in lieu of subsistence, as authorized by section 5703 
of title 5, United States Code, for individuals in the Gov-
ernment serving without pay. 
SEC. 109. LIMITATION ON EFFECT ON DEVELOPMENT OF 
OCEAN RENEWABLE ENERGY RESOURCE FA-
CILITIES. 
Nothing in this title shall delay development of ocean 
renewable energy resource facilities including— 
(1) promotion of offshore wind development; 
(2) planning, leasing, licensing, and fee and 
royalty collection for such development of ocean re-
newable energy resource facilities; and 
(3) developing and administering an efficient 
leasing and licensing process for ocean renewable en-
ergy resource facilities. 
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SEC. 110. ANNUAL REPORT ON OFFSHORE ENERGY DEVEL-
OPMENT ACTIVITIES. 
The Secretary shall annually report to Congress on 
offshore energy development activities. Each report shall 
detail— 
(1) the Department’s progress in improving its 
safety regulations and strengthening environmental 
review; and 
(2) steps taken by industry to address safety 
and environmental concerns related to offshore drill-
ing. 
TITLE II—FEDERAL OIL AND GAS 
DEVELOPMENT 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Outer Continental 
Shelf Lands Act Amendments of 2011’’. 
SEC. 202. DEFINITIONS. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended by adding at the end the 
following: 
‘‘(r) The term ‘safety case’ means a body of evidence 
that provides a basis for determining whether a system 
is adequately safe for a given application in a given oper-
ating environment.’’. 
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SEC. 203. NATIONAL POLICY FOR THE OUTER CONTI-
NENTAL SHELF. 
Section 3 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1332) is amended— 
(1) by striking paragraph (3) and inserting the 
following: 
‘‘(3) the outer Continental Shelf is a vital na-
tional resource reserve held by the Federal Govern-
ment for the public, that should be managed in a 
manner that— 
‘‘(A) recognizes the need of the United 
States for domestic sources of energy, food, 
minerals, and other resources; 
‘‘(B) minimizes the potential impacts of 
development of those resources on the marine 
and coastal environment and on safety; and 
‘‘(C) acknowledges the long-term economic 
value to the United States of the balanced and 
orderly management of those resources that 
safeguards the environment and respects the 
multiple values and uses of the outer Conti-
nental Shelf;’’; 
(2) in paragraph (4), by striking the period at 
the end and inserting a semicolon; 
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(3) in paragraph (5), by striking ‘‘should be’’ 
and inserting ‘‘shall be’’, and striking ‘‘; and’’ and 
inserting a semicolon; 
(4) by redesignating paragraph (6) as para-
graph (7); 
(5) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) exploration, development, and production 
of energy and minerals on the outer Continental 
Shelf should be allowed only when those activities 
can be accomplished in a manner that minimizes— 
‘‘(A) harmful impacts to life (including fish 
and other aquatic life) and health; 
‘‘(B) damage to the marine, coastal, and 
human environments and to property; and 
‘‘(C) harm to other users of the waters, 
seabed, or subsoil; and’’; and 
(6) in paragraph (7) (as so redesignated), by— 
(A) striking ‘‘should be’’ and inserting 
‘‘shall be’’; 
(B) 
inserting 
‘‘best 
available’’ 
after 
‘‘using’’; and 
(C) striking ‘‘or minimize’’. 
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SEC. 204. JURISDICTION OF LAWS ON THE OUTER CONTI-
NENTAL SHELF. 
Section 4(a)(1) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1333(a)(1)) is amended by— 
(1) inserting ‘‘or producing or supporting pro-
duction of energy from sources other than oil and 
gas’’ after ‘‘therefrom’’; 
(2) inserting ‘‘or transmitting such energy’’ 
after ‘‘transporting such resources’’; and 
(3) inserting ‘‘and other energy’’ after ‘‘That 
mineral’’. 
SEC. 205. OUTER CONTINENTAL SHELF LEASING STAND-
ARD. 
(a) IN GENERAL.—Section 5 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1334) is amended— 
(1) in subsection (a), by striking ‘‘The Sec-
retary may at any time’’ and inserting ‘‘The Sec-
retary shall’’; 
(2) in the second sentence of subsection (a), by 
adding after ‘‘provide for’’ the following: ‘‘oper-
ational safety, the protection of the marine and 
coastal environment, and’’; 
(3) in subsection (a), by inserting ‘‘and the Sec-
retary of Commerce with respect to matters that 
may affect the marine and coastal environment’’ 
after ‘‘which may affect competition’’; 
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(4) in clause (ii) of subsection (a)(2)(A), by 
striking ‘‘a reasonable period of time’’ and inserting 
‘‘30 days’’; 
(5) in subsection (a)(7), by inserting ‘‘in a 
manner that minimizes harmful impacts to the ma-
rine and coastal environment’’ after ‘‘lease area’’; 
(6) in subsection (a), by striking ‘‘and’’ after 
the semicolon at the end of paragraph (7), redesig-
nating paragraph (8) as paragraph (13), and insert-
ing after paragraph (7) the following: 
‘‘(8) for independent third-party certification 
requirements of safety systems related to well con-
trol, such as blowout preventers; 
‘‘(9) for performance requirements for blowout 
preventers, including quantitative risk assessment 
standards, subsea testing, and secondary activation 
methods; 
‘‘(10) for independent third-party certification 
requirements of well casing and cementing programs 
and procedures; 
‘‘(11) for the establishment of mandatory safety 
and environmental management systems by opera-
tors on the outer Continental Shelf; 
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‘‘(12) for procedures and technologies to be 
used during drilling operations to minimize the risk 
of ignition and explosion of hydrocarbons;’’; 
(7) in subsection (a), by striking the period at 
the end of paragraph (13), as so redesignated, and 
inserting ‘‘; and’’, and by adding at the end the fol-
lowing: 
‘‘(14) ensuring compliance with other applicable 
environmental and natural resource conservation 
laws, including the response plan requirements of 
section 311(j) of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1321(j)).’’; and 
(8) by adding at the end the following new sub-
sections: 
‘‘(k) DOCUMENTS INCORPORATED BY REFERENCE.— 
Any documents incorporated by reference in regulations 
promulgated by the Secretary pursuant to this Act shall 
be made available to the public, free of charge, on a 
website maintained by the Secretary. 
‘‘(l) REGULATORY STANDARDS FOR BLOWOUT PRE-
VENTERS, WELL DESIGN, AND CEMENTING.— 
‘‘(1) IN
GENERAL.—In promulgating regula-
tions under this Act related to blowout preventers, 
well design, and cementing, the Secretary shall en-
sure that such regulations include the minimum 
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standards included in paragraphs (2), (3), and (4), 
unless, after notice and an opportunity for public 
comment, the Secretary determines that a standard 
required under this subsection would be less effective 
in ensuring safe operations than an available alter-
native technology or practice. Such regulations shall 
require independent third-party certification, pursu-
ant to paragraph (5), of blowout preventers, well de-
sign, and cementing programs and procedures prior 
to the commencement of drilling operations. Such 
regulations shall also require recertification by an 
independent third-party certifier, pursuant to para-
graph (5), of a blowout preventer upon any material 
modification to the blowout preventer or well design 
and of a well design upon any material modification 
to the well design. 
‘‘(2) BLOWOUT PREVENTERS.—Subject to para-
graph (1), regulations issued under this Act for 
blowout preventers shall include at a minimum the 
following requirements: 
‘‘(A) Two sets of blind shear rams appro-
priately spaced to prevent blowout preventer 
failure if a drill pipe joint or drill tool is across 
one set of blind shear rams during a situation 
that threatens loss of well control. 
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‘‘(B) Redundant emergency backup control 
systems capable of activating the relevant com-
ponents of a blowout preventer, including when 
the communications link or other critical links 
between the drilling rig and the blowout pre-
venter are destroyed or inoperable. 
‘‘(C) Regular testing of the emergency 
backup control systems, including testing dur-
ing deployment of the blowout preventer. 
‘‘(D) As appropriate, remotely operated ve-
hicle intervention capabilities for secondary con-
trol of all subsea blowout preventer functions, 
including adequate hydraulic capacity to acti-
vate blind shear rams, casing shear rams, and 
other critical blowout preventer components. 
‘‘(3) WELL DESIGN.—Subject to paragraph (1), 
regulations issued under this Act for well design 
standards shall include at a minimum the following 
requirements: 
‘‘(A) In connection with the installation of 
the final casing string, the installation of at 
least two independent, tested mechanical bar-
riers, in addition to a cement barrier, across 
each flow path between hydrocarbon bearing 
formations and the blowout preventer. 
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‘‘(B) That wells shall be designed so that 
a failure of one barrier does not significantly in-
crease the likelihood of another barrier’s failure. 
‘‘(C) That the casing design is appropriate 
for the purpose for which it is intended under 
reasonably expected wellbore conditions. 
‘‘(D) The installation and verification with 
a pressure test of a lockdown device at the time 
the casing is installed in the wellhead. 
‘‘(4) CEMENTING.—Subject to paragraph (1), 
regulations issued under this Act for cementing 
standards shall include at a minimum the following 
requirements: 
‘‘(A) Adequate centralization of the casing 
to ensure proper distribution of cement. 
‘‘(B) A full circulation of drilling fluids 
prior to cementing. 
‘‘(C) The use of an adequate volume of ce-
ment to prevent any unintended flow of hydro-
carbons between any hydrocarbon-bearing for-
mation zone and the wellhead. 
‘‘(D) Cement bond logs for all cementing 
jobs intended to provide a barrier to hydro-
carbon flow. 
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‘‘(E) Cement bond logs or such other in-
tegrity tests as the Secretary may prescribe for 
cement jobs other than those identified in sub-
paragraph (D). 
‘‘(5) INDEPENDENT
THIRD-PARTY
CERTIFI-
CATION.—The Secretary shall issue regulations that 
establish appropriate standards for the approval of 
independent third-party certifiers capable of exer-
cising certification functions for blowout preventers, 
well design, and cementing. For any certification re-
quired for regulations related to blowout preventers, 
well design, or cementing, the operator shall use a 
qualified independent third-party certifier chosen by 
the Secretary. The costs of any certification shall be 
borne by the operator. The regulations issued under 
this subsection shall require the following: 
‘‘(A) Prior to the commencement of drill-
ing through a blowout preventer at any covered 
well, the operator shall obtain a written and 
signed certification from an independent third 
party approved and assigned by the appropriate 
Federal official pursuant to subsection (a) that 
the third party— 
‘‘(i) conducted or oversaw a detailed 
physical inspection, design review, system 
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integration test, and function and pressure 
testing of the blowout preventer; and 
‘‘(ii) in the third-party certifier’s best 
professional judgment, determined that— 
‘‘(I) the blowout preventer is de-
signed for the specific drilling condi-
tions, equipment, and location where 
it will be installed and for the specific 
well design; 
‘‘(II) the blowout preventer and 
all of its components and control sys-
tems will operate effectively and as 
designed when installed; 
‘‘(III) each blind shear ram or 
casing shear ram will function effec-
tively under likely emergency sce-
narios and is capable of shearing the 
drill pipe or casing, as applicable, that 
will be used when installed; 
‘‘(IV) emergency control systems 
will function under the conditions in 
which they will be installed; and 
‘‘(V) the blowout preventer has 
not been compromised or damaged 
from any previous service. 
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‘‘(B) Not less than once every 180 days 
after commencement of drilling through a blow-
out preventer at any covered well, or upon im-
plementation of any material modification to 
the blowout preventer or well design at such a 
well, the operator shall obtain a written and 
signed recertification from an independent third 
party approved and assigned by the appropriate 
Federal official pursuant to subsection (a) that 
the requirements in clause (ii) of subparagraph 
(A) continue to be met with the systems as de-
ployed. Such recertification determinations shall 
consider the results of tests required by the ap-
propriate Federal official, including testing of 
the emergency control systems of a blowout pre-
venter. 
‘‘(C) Certifications under subparagraph 
(A), recertifications under subparagraph (A), 
and results of and data from all tests conducted 
pursuant to this subsection shall be promptly 
submitted to the appropriate Federal official 
and made publicly available. 
‘‘(6) APPLICATION TO INSHORE WATERS; STATE 
IMPLEMENTATION.— 
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‘‘(A) IN
GENERAL.—Requirements estab-
lished under this subsection shall apply, as pro-
vided in subparagraph (B), to offshore drilling 
operations that take place on lands that are 
landward of the outer Continental Shelf and 
seaward of the line of mean high tide, and that 
the Secretary determines, based on criteria es-
tablished by rule, could, in the event of a blow-
out, lead to extensive and widespread harm to 
safety or the environment. 
‘‘(B) SUBMISSION OF STATE REGULATORY 
REGIME.—Any State may submit to the Sec-
retary a plan demonstrating that the State’s 
regulatory regime for wells identified in sub-
paragraph (A) establishes requirements for 
such wells that are comparable to, or alter-
native requirements providing an equal or 
greater level of safety than, those established 
under this section for wells on the outer Conti-
nental Shelf. The Secretary shall promptly de-
termine, after notice and an opportunity for 
public comment, whether a State’s regulatory 
regime meets the standard set forth in the pre-
ceding sentence. If the Secretary determines 
that a State’s regulatory regime does not meet 
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such standard, the Secretary shall identify the 
deficiencies that are the basis for such deter-
mination and provide a reasonable period of 
time for the State to remedy the deficiencies. If 
the State does not do so within such reasonable 
period of time, the Secretary shall apply the re-
quirements established under this section to off-
shore drilling operations described in subpara-
graph (A) that are located in such State, until 
such time as the Secretary determines that the 
deficiencies have been remedied. 
‘‘(m) RULEMAKING DOCKETS.— 
‘‘(1) ESTABLISHMENT.—Not later than the 
date of proposal of any regulation under this Act, 
the Secretary shall establish a publicly available 
rulemaking docket for such regulation. 
‘‘(2) DOCUMENTS TO BE INCLUDED.—The Sec-
retary shall include in the docket— 
‘‘(A) all written comments and documen-
tary information on the proposed rule received 
from any person in the comment period for the 
rulemaking, promptly upon receipt by the Sec-
retary; 
‘‘(B) the transcript of each public hearing, 
if any, on the proposed rule, promptly upon re-
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ceipt from the person who transcribed such 
hearing; and 
‘‘(C) all documents that become available 
after the proposed rule is published and that 
the Secretary determines are of central rel-
evance to the rulemaking, by as soon as pos-
sible after their availability. 
‘‘(3) PROPOSED AND DRAFT FINAL RULE AND 
ASSOCIATED
MATERIAL.—The Secretary shall in-
clude in the docket— 
‘‘(A) each draft proposed rule submitted by 
the Secretary to the Office of Management and 
Budget for any interagency review process prior 
to proposal of such rule, all documents accom-
panying such draft, all written comments there-
on by other agencies, and all written responses 
to such written comments by the Secretary, by 
no later than the date of proposal of the rule; 
and 
‘‘(B) each draft final rule submitted by the 
Secretary for such review process before 
issuance of the final rule, all such written com-
ments thereon, all documents accompanying 
such draft, and all written responses thereto, by 
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no later than the date of issuance of the final 
rule.’’. 
(b) CONFORMING AMENDMENT.—Subsection (g) of 
section 25 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1351), as redesignated by section 215(4) of this 
Act, is further amended by striking ‘‘paragraph (8) of sec-
tion 5(a) of this Act’’ each place it appears and inserting 
‘‘paragraph (13) of section 5(a) of this Act’’. 
SEC. 206. CHEMICAL SAFETY BOARD INVESTIGATION. 
Section 112(r)(6) of the Clean Air Act (42 U.S.C. 
7412(r)(6)) is amended by adding at the end the following: 
‘‘(T) AGREEMENT.—Not later than 30 
days after the date of enactment of this sub-
paragraph, the Chemical Safety and Hazard In-
vestigation Board, the Coast Guard, and the 
Department of the Interior shall enter into an 
agreement in order to facilitate the Board’s in-
vestigation of the facts, circumstances, and 
causes of an accidental fire, explosion, or re-
lease involving an offshore oil or gas exploration 
or production facility (regardless of whether 
there is a resulting marine oil spill). Such 
agreement shall provide the Board with the fol-
lowing: 
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‘‘(i) Unrestricted access to any per-
sonnel, records, witness statements, re-
corded witness interviews, and physical or 
documentary evidence related to an off-
shore oil or gas exploration or production 
facility under investigation collected or pos-
sessed by the Coast Guard or the Depart-
ment of the Interior. 
‘‘(ii) The ability to conduct recorded 
interviews of all agency personnel and con-
tractors and the right to obtain records re-
lated to Federal regulatory, inspection, en-
forcement, and safety programs for off-
shore oil or gas exploration and produc-
tion. 
‘‘(iii) The right to participate equally 
in planning and executing any testing of 
relevant items of physical evidence related 
to the cause of the accident. 
‘‘(iv) Such support and facilities as 
may be necessary for the Board’s inves-
tigation, including transportation to the 
accident site, coastal waters and affected 
areas, and other offshore oil or gas explo-
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ration and production facilities without 
cost to the Board. 
‘‘(U) RECOMMENDATIONS.—Based on an 
investigation of an accidental fire, explosion, or 
release involving an offshore oil or gas explo-
ration or production facility, the Board shall 
make recommendations with respect to pre-
venting subsequent accidental fires, explosions, 
or releases to the Secretary of the Interior and 
the Commandant of the Coast Guard. The Sec-
retary of the Interior and the Commandant of 
the Coast Guard shall respond formally and in 
writing to any recommendation of the Board 
within 90 days of the receipt of such rec-
ommendation.’’. 
SEC. 207. LEASES, EASEMENTS, AND RIGHTS-OF-WAY. 
(a) FINANCIAL ASSURANCE AND FISCAL RESPONSI-
BILITY.—Section 8 of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337) is amended by adding at the end 
the following: 
‘‘(q) REVIEW OF BOND AND SURETY AMOUNTS.— 
Not later than May 1, 2011, and every 5 years thereafter, 
the Secretary shall review the minimum financial responsi-
bility requirements for leases issued under this section and 
shall ensure that any bonds or surety required are ade-
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quate to comply with the requirements of this Act or the 
Oil Pollution Act of 1990 (33 U.S.C. 2701 et seq.). 
‘‘(r) PERIODIC FISCAL REVIEW AND REPORT.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this subsection and every 
3 years thereafter, the Secretary shall carry out a 
review and prepare a report setting forth— 
‘‘(A)(i) the royalty and rental rates in-
cluded in new offshore oil and gas leases; and 
‘‘(ii) the rationale for the rates; 
‘‘(B) whether, in the view of the Secretary, 
the royalty and rental rates described in sub-
paragraph (A) will yield a fair return to the 
public while promoting the production of oil and 
gas resources in a timely manner; 
‘‘(C)(i) the minimum bond or surety 
amounts required pursuant to offshore oil and 
gas leases; and 
‘‘(ii) the rationale for the minimum 
amounts; 
‘‘(D) whether the bond or surety amounts 
described in subparagraph (C) are adequate to 
comply with subsection (q); and 
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‘‘(E) whether the Secretary intends to 
modify the royalty or rental rates, or bond or 
surety amounts, based on the review. 
‘‘(2) PUBLIC PARTICIPATION.—In carrying out 
a review and preparing a report under paragraph 
(1), the Secretary shall provide to the public an op-
portunity to participate. 
‘‘(3) REPORT DEADLINE.—Not later than 30 
days after the date on which the Secretary completes 
a report under paragraph (1), the Secretary shall 
transmit copies of the report to— 
‘‘(A) the Committee on Energy and Nat-
ural Resources of the Senate; and 
‘‘(B) the Committee on Natural Resources 
of the House of Representatives. 
‘‘(s) COMPARATIVE REVIEW OF FISCAL SYSTEM.— 
‘‘(1) IN
GENERAL.—Not later than 2 years 
after the date of enactment of this subsection and 
every 5 years thereafter, the Secretary shall carry 
out a comprehensive review of all components of the 
Federal offshore oil and gas fiscal system, including 
requirements for— 
‘‘(A) bonus bids; 
‘‘(B) rental rates; and 
‘‘(C) royalties. 
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‘‘(2) REQUIREMENTS.— 
‘‘(A) CONTENTS; SCOPE.—A review under 
paragraph (1) shall include— 
‘‘(i) the information and analyses nec-
essary to compare the offshore bonus bids, 
rents, and royalties of the Federal Govern-
ment to the offshore bonus bids, rents, and 
royalties of other resource owners, includ-
ing States and foreign countries; and 
‘‘(ii) an assessment of the overall off-
shore oil and gas fiscal system in the 
United States, as compared to foreign 
countries. 
‘‘(B) 
INDEPENDENT
ADVISORY
COM-
MITTEE.—In carrying out a review under para-
graph (1), the Secretary shall convene and seek 
the advice of an independent advisory com-
mittee comprised of oil and gas and fiscal ex-
perts from States, Indian tribes, academia, the 
energy industry, and appropriate nongovern-
mental organizations. 
‘‘(3) REPORT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
prepare a report that contains— 
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‘‘(i) the contents and results of the re-
view carried out under paragraph (1) for 
the period covered by the report; and 
‘‘(ii) any recommendations of the Sec-
retary based on the contents and results of 
the review. 
‘‘(B) REPORT DEADLINE.—Not later than 
30 days after the date on which the Secretary 
completes a report under paragraph (1), the 
Secretary shall transmit copies of the report to 
the Committee on Natural Resources of the 
House of Representatives and the Committee 
on Energy and Natural Resources of the Sen-
ate.’’. 
(b) ENVIRONMENTAL DILIGENCE.—Section 8 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is 
amended by striking subsection (d) and inserting the fol-
lowing: 
‘‘(d) REQUIREMENT
FOR CERTIFICATION
OF RE-
SPONSIBLE STEWARDSHIP.— 
‘‘(1) CERTIFICATION
REQUIREMENT.—No bid 
or request for a lease, easement, or right-of-way 
under this section, or for a permit to drill under sec-
tion 11(d), may be submitted by any person unless 
the person certifies to the Secretary that the person 
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(including any related person and any predecessor of 
such person or related person) meets each of the fol-
lowing requirements: 
‘‘(A) The person is meeting due diligence, 
safety, and environmental requirements on 
other leases, easements, and rights-of-way. 
‘‘(B) In the case of a person that is a re-
sponsible party for a vessel or a facility from 
which oil is discharged, for purposes of section 
1002 of the Oil Pollution Act of 1990 (33 
U.S.C. 2702), the person has met all of its obli-
gations under that Act to provide compensation 
for covered removal costs and damages. 
‘‘(C) In the 7-year period ending on the 
date of certification, the person, in connection 
with activities in the oil industry (including ex-
ploration, development, production, transpor-
tation by pipeline, and refining)— 
‘‘(i) was not found to have committed 
willful or repeated violations under the Oc-
cupational Safety and Health Act of 1970 
(29 U.S.C. 651 et seq.) (including State 
plans approved under section 18(c) of such 
Act (29 U.S.C. 667(c))) at a rate that is 
higher than five times the rate determined 
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by the Secretary to be the oil industry av-
erage for such violations for such period; 
‘‘(ii) was not convicted of a criminal 
violation for death or serious bodily injury; 
‘‘(iii) did not have more than 10 fa-
talities at its exploration, development, and 
production facilities and refineries as a re-
sult of violations of Federal or State 
health, safety, or environmental laws; 
‘‘(iv) was not assessed, did not enter 
into an agreement to pay, and was not oth-
erwise required to pay, civil penalties and 
criminal fines for violations the person was 
found to have committed under the Fed-
eral Water Pollution Control Act (33 
U.S.C. 1251 et seq.) (including State pro-
grams approved under sections 402 and 
404 of such Act (33 U.S.C. 1342 and 
1344)) in a total amount that is equal to 
more than $10,000,000; and 
‘‘(v) was not assessed, did not enter 
into an agreement to pay, and was not oth-
erwise required to pay, civil penalties and 
criminal fines for violations the person was 
found to have committed under the Clean 
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Air Act (42 U.S.C. 7401 et seq.) (includ-
ing State plans approved under section 
110 of such Act (42 U.S.C. 7410)) in a 
total amount that is equal to more than 
$10,000,000. 
‘‘(2) ENFORCEMENT.—If the Secretary deter-
mines that a certification made under paragraph (1) 
is false, the Secretary shall cancel any lease, ease-
ment, or right of way and shall revoke any permit 
with respect to which the certification was required 
under such paragraph. 
‘‘(3) DEFINITION OF RELATED PERSON.—For 
purposes of this subsection, the term ‘related person’ 
includes a parent, subsidiary, affiliate, member of 
the same controlled group, contractor, subcontractor, 
a person holding a controlling interest or in which 
a controlling interest is held, and a person with sub-
stantially the same board members, senior officers, 
or investors.’’. 
(c) ALTERNATIVE ENERGY DEVELOPMENT.—Section 
8(p) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(p)) is amended— 
(1) in paragraph (1)— 
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(A) in the matter preceding subparagraph 
(A), by inserting ‘‘or’’ after ‘‘1501 et seq.),’’, 
and by striking ‘‘or other applicable law,’’; and 
(B) by amending subparagraph (D) to 
read as follows: 
‘‘(D) use, for energy-related purposes, fa-
cilities currently or previously used for activities 
authorized under this Act, except that any oil 
and gas energy-related uses shall not be author-
ized in areas in which oil and gas preleasing, 
leasing, and related activities are prohibited by 
a moratorium.’’; and 
(2) in paragraph (4)— 
(A) in subparagraph (E), by striking ‘‘co-
ordination’’ and inserting ‘‘in consultation’’; 
and 
(B) in subparagraph (J)(ii), by inserting 
‘‘a potential site for an alternative energy facil-
ity,’’ after ‘‘deepwater port,’’. 
(d) REVIEW OF IMPACTS OF LEASE SALES ON THE 
MARINE AND COASTAL ENVIRONMENT BY SECRETARY.— 
Section 8 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337) is amended by adding at the end of sub-
section (a) the following: 
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‘‘(9) At least 60 days prior to any lease sale, 
the Secretary shall request a review by the Secretary 
of Commerce of the proposed sale with respect to 
impacts on the marine and coastal environment. The 
Secretary of Commerce shall complete and submit in 
writing the results of that review within 60 days 
after receipt of the Secretary of the Interior’s re-
quest. If the Secretary of Commerce makes specific 
recommendations related to a proposed lease sale to 
reduce impacts on the marine and coastal environ-
ment, and the Secretary rejects or modifies such rec-
ommendations, the Secretary shall provide in writing 
justification for rejecting or modifying such rec-
ommendations.’’. 
(e) LIMITATION ON LEASE TRACT SIZE.—Section 
8(b)(1) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(b)(1)) is amended by striking ‘‘, unless the 
Secretary finds that a larger area is necessary to comprise 
a reasonable economic production unit’’. 
(f) SULPHUR LEASES.—Section 8(i) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(i)) is 
amended by striking ‘‘meet the urgent need’’ and inserting 
‘‘allow’’. 
(g) TERMS AND PROVISIONS.—Section 8(b) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337(b)) 
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is amended by striking ‘‘An oil and gas lease issued pursu-
ant to this section shall’’ and inserting ‘‘An oil and gas 
lease may be issued pursuant to this section only if the 
Secretary determines that activities under the lease are 
not likely to result in any condition described in section 
5(a)(2)(A)(i), and shall’’. 
SEC. 208. EXPLORATION PLANS. 
(a) WORST CASE SCENARIO DISCHARGES.—Not later 
than 180 days after the date of enactment of this Act, 
and every 5 years thereafter, the Secretary shall publish 
an estimate of the worst-case scenario discharges, includ-
ing subsurface discharges, that are possible in each Outer 
Continental Shelf region, based on the oil and gas explo-
ration, development, and production activities that are 
being conducted or are planned to be conducted at various 
locations and depths in each area. 
(b) LIMITATION ON HARM FROM AGENCY EXPLO-
RATION.—Section 11(a)(1) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1340(a)(1)) is amended by striking 
‘‘, which do not interfere with or endanger actual oper-
ations under any lease maintained or granted pursuant to 
this Act, and which are not unduly harmful to aquatic life 
in such area’’ and inserting ‘‘if a permit authorizing such 
activity is issued by the Secretary under subsection (g)’’. 
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(c) EXPLORATION PLAN REVIEW.—Section 11(c) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1340(c)), is amended— 
(1) by inserting ‘‘(A)’’ before the first sentence; 
(2) in paragraph (1)(A), as designated by the 
amendment made by paragraph (1) of this sub-
section— 
(A) by striking ‘‘and the provisions of such 
lease’’ and inserting ‘‘the provisions of such 
lease, and other applicable environmental and 
natural resource conservation laws’’; and 
(B) by striking the fourth sentence and in-
serting the following: 
‘‘(B) The Secretary shall approve such plan, as sub-
mitted or modified, within 90 days after its submission 
and it is made publicly accessible by the Secretary, or 
within such additional time as the Secretary determines 
is necessary to complete any environmental, safety, or 
other reviews, if the Secretary determines that— 
‘‘(i) any proposed activity under such plan is 
not likely to result in any condition described in sec-
tion 5(a)(2)(A)(i); 
‘‘(ii) the plan complies with other applicable en-
vironmental or natural resource conservation laws; 
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‘‘(iii) in the case of geophysical surveys, the ap-
plicant will use the best available technologies and 
methods to minimize impacts on marine life; and 
‘‘(iv) the applicant has demonstrated the capa-
bility and technology to respond immediately and ef-
fectively to a worst-case-scenario discharge, which 
shall be estimated for the proposed activities con-
tained in the exploration plan, utilizing, in part, the 
relevant worst-case scenario discharge estimate pub-
lished by the Secretary under section 208(a) of the 
Implementing the Recommendations of the BP Oil 
Spill Commission Act of 2011.’’; and 
(3) by adding at the end the following: 
‘‘(5) If the Secretary requires greater than 90 
days to review an exploration plan submitted pursu-
ant to any oil and gas lease issued or maintained 
under this Act, then the Secretary may provide for 
a suspension of that lease pursuant to section 5 
until the review of the exploration plan is com-
pleted.’’. 
(d) REQUIREMENTS.—Section 11(c) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1340(c)), is 
amended by amending paragraph (3) to read as follows: 
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‘‘(3) An exploration plan submitted under this 
subsection shall include, in the degree of detail that 
the Secretary may by regulation require— 
‘‘(A) a schedule of anticipated exploration 
activities to be undertaken; 
‘‘(B) a detailed and accurate description of 
equipment to be used for such activities, includ-
ing— 
‘‘(i) a description of each drilling unit; 
‘‘(ii) a statement of the design and 
condition of major safety-related pieces of 
equipment, including independent third 
party certification of such equipment; and 
‘‘(iii) a description of any new tech-
nology to be used; 
‘‘(C) a map showing the location of each 
well to be drilled; 
‘‘(D) a scenario for the potential blowout 
of the well involving the highest potential vol-
ume of liquid hydrocarbons, along with a com-
plete description of a response plan to both con-
trol the blowout and manage the accompanying 
discharge of hydrocarbons, including the likeli-
hood for surface intervention to stop the blow-
out, the availability of a rig to drill a relief well, 
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an estimate of the time it would take to drill a 
relief well, a description of other technology 
that may be used to regain control of the well 
or capture escaping hydrocarbons and the po-
tential timeline for using that technology for its 
intended purpose, and the strategy, organiza-
tion, and resources necessary to avoid harm to 
the environment from hydrocarbons; 
‘‘(E) an analysis of the potential impacts 
of the worst-case-scenario discharge, which shall 
be estimated for the proposed activities con-
tained in the exploratory plan, utilizing, in part, 
the worst-case-scenario discharge performed by 
the Secretary under section 208(a) of hydro-
carbons on the marine, coastal, and human en-
vironments for activities conducted pursuant to 
the proposed exploration plan; and 
‘‘(F) such other information deemed perti-
nent by the Secretary.’’. 
(e) DRILLING PERMITS.—Section 11(d) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1340(d)) is 
amended by to read as follows: 
‘‘(d) DRILLING PERMITS.— 
‘‘(1) IN
GENERAL.—The Secretary shall, by 
regulation, require that any lessee operating under 
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an approved exploration plan obtain a permit prior 
to drilling any well in accordance with such plan, 
and prior to any significant modification of the well 
design as originally approved by the Secretary. 
‘‘(2) ENGINEERING
REVIEW
REQUIRED.—The 
Secretary may not grant any drilling permit or 
modification of the permit prior to completion of a 
full engineering review of the well system, including 
a determination that critical safety systems, includ-
ing blowout prevention, will utilize best available 
technology and that blowout prevention systems will 
include redundancy and remote triggering capability. 
‘‘(3) OPERATOR SAFETY AND ENVIRONMENTAL 
MANAGEMENT REQUIRED.—The Secretary shall not 
grant any drilling permit or modification of the per-
mit prior to completion of a safety and environ-
mental management plan to be utilized by the oper-
ator during all well operations.’’. 
(f) EXPLORATION PERMIT REQUIREMENTS.—Section 
11(g) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1340(g)) is amended by— 
(1) striking ‘‘shall be issued’’ and inserting 
‘‘may be issued’’; 
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101 
1926 (44 Stat. 301); the Act of February 7, 1927 
(44 Stat. 1057); and all Acts heretofore or hereafter 
enacted that are amendatory of or supplementary to 
any of the foregoing Acts;’’; 
(2) in paragraph (20)(A), by striking ‘‘: Pro-
vided, That’’ and all that follows through ‘‘subject of 
the judicial proceeding’’; 
(3) in paragraph (20)(B), by striking ‘‘(with 
written notice to the lessee who designated the des-
ignee)’’; 
(4) in paragraph (23)(A), by striking ‘‘(with 
written notice to the lessee who designated the des-
ignee)’’; 
(5) by striking paragraph (24) and inserting 
the following: 
‘‘(24) ‘designee’ means a person who pays, off-
sets, or credits monies, makes adjustments, requests 
and receives refunds, or submits reports with respect 
to payments a lessee must make pursuant to section 
102(a);’’; 
(6) in paragraph (25)(B)— 
(A) by striking ‘‘(subject to the provisions 
of section 102(a) of this Act)’’; and 
(B) in clause (ii) by striking the matter 
after subclause (IV) and inserting the following: 
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108 
adjustment, recoupment, or reinstatement is made within 
the limitation period for which the date royalties were due 
for that lease.’’; 
(2) by striking subsection (j); and 
(3) in subsection (k)(4)— 
(A) by striking ‘‘or overpaid royalties and 
associated interest’’; and 
(B) by striking ‘‘, refunded, or credited’’. 
SEC. 307. ADJUSTMENTS AND REFUNDS. 
Section 111A of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1721a) is amend-
ed— 
(1) in subsection (a)(3), by inserting ‘‘(A)’’ 
after ‘‘(3)’’, and by striking the last sentence and in-
serting the following: 
‘‘(B) Except as provided in subparagraph 
(C), no adjustment may be made with respect 
to an obligation that is the subject of an audit 
or compliance review after completion of the 
audit or compliance review, respectively, unless 
such adjustment is approved by the Secretary 
or the applicable delegated State, as appro-
priate. 
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