(4) COMPLIANCE.—Compliance with this sub-
section is deemed to satisfy all requirements for the 
analysis and consideration of the environmental ef-
fects of proposed leasing under this section. 
SEC. 205. REQUIREMENT TO CONDUCT OIL AND GAS LEASE 
SALE 214 IN THE NORTH ALEUTIAN BASIN 
OFFSHORE ALASKA. 
(a) IN GENERAL.—The Secretary of the Interior shall 
conduct the lease sale formerly known as Lease Sale 214, 
for the tracts located in the North Aleutian Basin Outer 
Continental Shelf Planning Area, not later than 1 year 
after the date of enactment of this Act. 
(b) RELATIONSHIP
TO LEASING PROGRAM.—Areas 
shall be offered for lease under this section notwithstanding 
inclusion of areas referred to in subsection (a) in the Pro-
posed Outer Continental Shelf Oil & Gas Leasing Program 
2012–2017. 
SEC. 206. ADDITIONAL LEASES. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended by adding at the end the fol-
lowing: 
‘‘(i) ADDITIONAL LEASE SALES.—In addition to lease 
sales in accordance with a leasing program in effect under 
this section, the Secretary may hold lease sales for areas 
identified by the Secretary to have the greatest potential 
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for new oil and gas development as a result of local support, 
new seismic findings, or nomination by interested per-
sons.’’. 
SEC. 207. DEFINITIONS. 
In this title: 
(1) The term ‘‘Environmental Impact Statement 
for the 2007–2012 5 Year Outer Continental Shelf 
Plan’’ means the Final Environmental Impact State-
ment for Outer Continental Shelf Oil and Gas Leas-
ing Program: 2007–2012 (April 2007) prepared by 
the Secretary. 
(2) The term ‘‘Multi-Sale Environmental Impact 
Statement’’ means the Environmental Impact State-
ment for Proposed Western Gulf of Mexico Outer Con-
tinental Shelf Oil and Gas Lease Sales 204, 207, 210, 
215, and 218, and Proposed Central Gulf of Mexico 
Outer Continental Shelf Oil and Gas Lease Sales 205, 
206, 208, 213, 216, and 222 (September 2008) pre-
pared by the Secretary. 
(3) The term ‘‘Secretary’’ means the Secretary of 
the Interior. 
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TITLE III—LEASING IN NEW 
OFFSHORE AREAS 
SEC. 301. LEASING IN THE EASTERN GULF OF MEXICO. 
Section 104 of division C of the Tax Relief and Health 
Care Act of 2006 (Public Law 109–432; 120 Stat. 3003) 
is repealed. 
SEC. 302. REFORMING OIL AND GAS LEASING IN THE EAST-
ERN GULF OF MEXICO. 
(a) REFORMING ADMINISTRATIVE BOUNDARIES.—Ef-
fective July 1, 2012, for purposes of administering the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
the boundary between the Central Gulf of Mexico Outer 
Continental Shelf Planning Area and the Eastern Gulf of 
Mexico Outer Continental Shelf Planning Area shall be 86 
degrees, 41 minutes west longitude. 
(b) EXTENDING THE MORATORIUM.—Effective during 
the period beginning on the date of enactment of this Act 
and ending June 30, 2025, the Secretary of the Interior 
shall not offer for leasing, preleasing, or any related activity 
any area in the Eastern Gulf of Mexico Outer Continental 
Shelf Planning Area except as required under subsection 
(c). 
(c) LIMITED NEW LEASING IN THE EASTERN GULF OF 
MEXICO.— 
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(1) IN GENERAL.—Notwithstanding the Proposed 
Outer Continental Shelf Oil & Gas Leasing Program 
2012–2017, the Secretary shall conduct planning and 
leasing for one lease sale in the Eastern Gulf of Mex-
ico Outer Continental Shelf Planning Area in each of 
2013, 2014, and 2015. Each lease sale shall only con-
sist of 50 contiguous Outer Continental Shelf lease 
blocks in those areas the Secretary considers to have 
the greatest potential for oil and gas after issuing a 
request for, receiving, and considering public com-
ment. In reviewing potential areas for such leasing, 
the Secretary shall focus on those areas for which 
there are known quantities of hydrocarbons that can 
be conventionally produced using existing or reason-
ably foreseeable technology, and for which oil and gas 
exploration, development, production, and marketing 
could be carried out in an expeditious manner. 
(2) LEASE CONDITIONS.—In addition to such re-
quirements as otherwise apply, each lease sale under 
this subsection shall be subject to the following: 
(A) The Secretary may include limits on 
permanent surface occupancy on any lease block 
if surface occupancy is incompatible with mili-
tary operations. 
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(B) The Secretary may include limits on 
drilling schedules and surface occupancy to ac-
commodate defense activities on a short-term or 
seasonal basis. Such limits shall be treated as 
administrative suspensions of a lease term. 
(C) The Secretary may limit permanent 
surface infrastructure on any Outer Continental 
Shelf lease block that is closer than 12 nautical 
miles to the coast of any State, unless that infra-
structure is approved by the State. 
(d) REQUIREMENT TO MAKE REPLACEMENT LEASE 
BLOCKS AVAILABLE.—For each lease block in a proposed 
lease sale under this section for which the Secretary of De-
fense, in consultation with the Secretary of the Interior, 
under the Memorandum of Agreement referred to in sub-
section (e)(2) issues a statement proposing deferral from a 
lease offering due to defense-related activities that are ir-
reconcilable with mineral exploration and development, the 
Secretary of the Interior, in consultation with the Secretary 
of Defense, shall make available in the same lease sale two 
other lease blocks in the same Outer Continental Shelf plan-
ning area that are acceptable for oil and gas exploration 
and production in order to mitigate conflict. 
(e) BALANCING MILITARY AND ENERGY PRODUCTION 
GOALS.— 
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(1) JOINT GOALS.—In recognition that the Outer 
Continental Shelf oil and gas leasing program and 
the domestic energy resources produced therefrom are 
integral to national security, the Secretary of the In-
terior and the Secretary of Defense shall work jointly 
in implementing this section in order to ensure 
achievement of the goals of— 
(A) preserving the ability of the Armed 
Forces of the United States to maintain an opti-
mum state of readiness through their continued 
use of the Outer Continental Shelf; and 
(B) allowing effective exploration, develop-
ment, and production of our Nation’s oil, gas, 
and renewable energy resources. 
(C) recognizing the Outer Continental Shelf 
oil and gas leasing program is an integral part 
of the Nation’s energy security program to de-
velop domestic oil and gas resources. 
(2) PROHIBITION ON CONFLICTS WITH MILITARY 
OPERATIONS.—No person may engage in any explo-
ration, development, or production of oil or natural 
gas in the Eastern Gulf of Mexico Outer Continental 
Shelf Planning Area that would conflict with any 
military operation, as determined in accordance with 
the Memorandum of Agreement between the Depart-
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ment of Defense and the Department of the Interior 
on Mutual Concerns on the Outer Continental Shelf 
signed July 20, 1983, and any revision or replace-
ment for that agreement that is agreed to by the Sec-
retary of Defense and the Secretary of the Interior 
after that date but before the date of issuance of the 
lease under which such exploration, development, or 
production is conducted. 
SEC. 303. AREAS ADDED TO CENTRAL GULF OF MEXICO 
PLANNING AREA. 
The Secretary shall conduct an offshore oil and gas 
lease sale under section 8 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337) for the areas added to the Cen-
tral Gulf of Mexico Outer Continental Shelf Planning Area 
as a result of the enactment of section 302(a) as soon as 
practicable, but not later than the first lease sale under such 
section after the date of the enactment of this Act in which 
any area in such planning area is made available for leas-
ing. 
SEC. 304. APPLICATION OF OUTER CONTINENTAL SHELF 
LANDS ACT WITH RESPECT TO TERRITORIES 
OF THE UNITED STATES. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended— 
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(1) in paragraph (a), by inserting after ‘‘con-
trol’’ the following: ‘‘or lying within the United 
States’ exclusive economic zone and the Continental 
Shelf adjacent to any territory of the United States’’; 
and 
(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.’’. 
TITLE IV—OUTER CONTINENTAL 
SHELF REVENUE SHARING 
SEC. 401. DISPOSITION OF OUTER CONTINENTAL SHELF 
REVENUES TO COASTAL STATES. 
(a) IN GENERAL.—Section 9 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1338) is amended— 
(1) in the existing text— 
(A) in the first sentence, by striking ‘‘All 
rentals,’’ and inserting the following: 
‘‘(c) 
DISPOSITION
OF
REVENUE
UNDER
OLD 
LEASES.—All rentals,’’; and 
(B) in subsection (c) (as designated by the 
amendment made by subparagraph (A) of this 
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paragraph), by striking ‘‘for the period from 
June 5, 1950, to date, and thereafter’’ and in-
serting ‘‘in the period beginning June 5, 1950, 
and ending on the date of enactment of the En-
ergy Security and Transportation Jobs Act’’; 
(2) by adding after subsection (c) (as so des-
ignated) the following: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COASTAL STATE.—The term ‘coastal State’ 
includes a territory of the United States. 
‘‘(2) NEW LEASING REVENUES.—The term ‘new 
leasing revenues’— 
‘‘(A) means amounts received by the United 
States as bonuses, rents, and royalties under 
leases for oil and gas, wind, tidal, or other en-
ergy exploration, development, and production 
on areas of the outer Continental Shelf that are 
authorized to be made available for leasing as a 
result of enactment of the Energy Security and 
Transportation Jobs Act; and 
‘‘(B) does not include amounts received by 
the United States under any lease of an area lo-
cated in the boundaries of the Central Gulf of 
Mexico and Western Gulf of Mexico Outer Conti-
nental Shelf Planning Areas on the date of the 
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enactment of the Energy Security and Transpor-
tation Jobs Act, including a lease issued before, 
on, or after such date of enactment.’’; and 
(3) by inserting before subsection (c) (as so des-
ignated) the following: 
‘‘(a) PAYMENT
OF NEW LEASING REVENUES
TO 
COASTAL STATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), of the amount of new leasing revenues re-
ceived by the United States each fiscal year, 37.5 per-
cent shall be allocated and paid in accordance with 
subsection (b) to coastal States that are affected States 
with respect to the leases under which those revenues 
are received by the United States. 
‘‘(2) PHASE-IN.—Paragraph (1) shall be ap-
plied— 
‘‘(A) with respect to new leasing revenues 
under leases awarded under the first leasing pro-
gram under section 18(a) that takes effect after 
the date of enactment of the Energy Security and 
Transportation Jobs Act, by substituting ‘12.5 
percent’ for ‘37.5 percent’; and 
‘‘(B) with respect to new leasing revenues 
under leases awarded under the second leasing 
program under section 18(a) that takes effect 
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after the date of enactment of the Energy Secu-
rity and Transportation Jobs Act, by sub-
stituting ‘25 percent’ for ‘37.5 percent’. 
‘‘(b) ALLOCATION OF PAYMENTS.— 
‘‘(1) IN GENERAL.—The amount of new leasing 
revenues received by the United States with respect to 
a leased tract that are required to be paid to coastal 
States in accordance with this subsection each fiscal 
year shall be allocated among and paid to coastal 
States that are within 200 miles of the leased tract, 
in amounts that are inversely proportional to the re-
spective distances between the point on the coastline 
of each such State that is closest to the geographic 
center of the lease tract, as determined by the Sec-
retary. 
‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.—The 
amount allocated to a coastal State under paragraph 
(1) each fiscal year with respect to a leased tract shall 
be— 
‘‘(A) in the case of a coastal State that is 
the nearest State to the geographic center of the 
leased tract, not less than 25 percent of the total 
amounts allocated with respect to the leased 
tract; 
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‘‘(B) in the case of any other coastal State, 
not less than 10 percent, and not more than 15 
percent, of the total amounts allocated with re-
spect to the leased tract; and 
‘‘(C) in the case of a coastal State that is 
the only coastal State within 200 miles of a least 
tract, 100 percent of the total amounts allocated 
with respect to the leased tract. 
‘‘(3) ADMINISTRATION.—Amounts allocated to a 
coastal State under this subsection— 
‘‘(A) shall be available to the coastal State 
without further appropriation; 
‘‘(B) shall remain available until expended; 
and 
‘‘(C) shall be in addition to any other 
amounts available to the coastal State under this 
Act. 
‘‘(4) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a coastal State may use funds 
allocated and paid to it under this subsection for 
any purpose as determined by the laws of that 
State. 
‘‘(B) RESTRICTION
ON
USE
FOR
MATCH-
ING.—Funds allocated and paid to a coastal 
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State under this subsection may not be used as 
matching funds for any other Federal program.’’. 
(b) LIMITATION ON APPLICATION.—This section and 
the amendment made by this section shall not affect the ap-
plication of section 105 of the Gulf of Mexico Energy Secu-
rity Act of 2006 (title I of division C of Public Law 109– 
432; (43 U.S.C. 1331 note)), as in effect before the enact-
ment of this Act, with respect to revenues received by the 
United States under oil and gas leases issued for tracts lo-
cated in the Western and Central Gulf of Mexico Outer Con-
tinental Shelf Planning Areas, including such leases issued 
on or after the date of the enactment of this Act. 
TITLE V—MISCELLANEOUS 
PROVISIONS 
SEC. 501. POLICIES REGARDING BUYING, BUILDING, AND 
WORKING FOR AMERICA. 
(a) CONGRESSIONAL INTENT.—It is the intent of the 
Congress that— 
(1) this Act will support a healthy and growing 
United States domestic energy sector that, in turn, 
helps to reinvigorate American manufacturing, trans-
portation, and service sectors by employing the vast 
talents of United States workers to assist in the devel-
opment of energy from domestic sources; and 
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(2) Congress will monitor the deployment of per-
sonnel and material onshore and offshore to encourage 
the development of American technology and manu-
facturing to enable United States workers to benefit 
from this Act through good jobs and careers, as well 
as the establishment of important industrial facilities 
to support expanded access to American resources. 
(b) REQUIREMENT.—The Secretary of the Interior 
shall when possible, and practicable, encourage the use of 
United States workers and equipment manufactured in the 
United States in all construction related to mineral and 
renewable energy resource development on the Outer Conti-
nental Shelf under this Act. 
SEC. 502. REGULATIONS. 
Section 30(a) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356(a)) is amended by striking ‘‘shall issue reg-
ulations which’’ and inserting ‘‘shall issue regulations that 
shall be supplemental to, complementary with, and under 
no circumstances a substitution for the provisions of the 
Constitution and laws of the United States extended to the 
subsoil and seabed of the outer Continental Shelf by section 
4(a)(1), except insofar as such laws would otherwise apply 
to individuals who have extraordinary ability in the 
sciences, arts, education, or business, which has been dem-
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onstrated by sustained national or international acclaim, 
and that’’. 
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Union Calendar No. 275 
112TH CONGRESS 
2D SESSION 
H. R. 3410 
[Report No. 112–395] 
A BILL 
To require the Secretary of the Interior to conduct 
certain offshore oil and gas lease sales, to provide 
fair and equitable revenue sharing for all coastal 
States, to formulate future offshore energy devel-
opment plans in areas with the most potential, to 
generate revenue for American infrastructure, 
and for other purposes. 
FEBRUARY 9, 2012 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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