I 
110TH CONGRESS 
2D SESSION 
H. R. 6301 
To provide for exploration, development, and production activities for mineral 
resources on the outer Continental Shelf, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2008 
Mr. PEARCE introduced the following bill; which was referred to the Com-
mittee on Natural Resources, and in addition to the Committees on the 
Judiciary, Science and Technology, Energy and Commerce, and Trans-
portation and Infrastructure, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To provide for exploration, development, and production ac-
tivities for mineral resources on the outer Continental 
Shelf, 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 
‘‘Funding a Clean Energy Future By Bringing Lower Gas 
Prices for Americans Today Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
TITLE I—OUTER CONTINENTAL SHELF 
Sec. 101. Policy. 
Sec. 102. Definitions under the Submerged Lands Act. 
Sec. 103. Seaward boundaries of States. 
Sec. 104. Exceptions from confirmation and establishment of States’ title, 
power, and rights. 
Sec. 105. Definitions under the Outer Continental Shelf Lands Act. 
Sec. 106. Determination of adjacent zones and planning areas. 
Sec. 107. Administration of leasing. 
Sec. 108. Grant of leases by Secretary. 
Sec. 109. Disposition of receipts. 
Sec. 110. Reservation of lands and rights. 
Sec. 111. Outer Continental Shelf leasing program. 
Sec. 112. Coordination with adjacent States. 
Sec. 113. Environmental studies. 
TITLE II—COASTAL PLAIN OF ALASKA 
Sec. 201. Definitions. 
Sec. 202. Leasing program for lands within the Coastal Plain. 
Sec. 203. Lease sales. 
Sec. 204. Grant of leases by the Secretary. 
Sec. 205. Lease terms and conditions. 
Sec. 206. Coastal Plain environmental protection. 
Sec. 207. Expedited judicial review. 
Sec. 208. Federal and State distribution of revenues. 
Sec. 209. Rights-of-way across the Coastal Plain. 
Sec. 210. Conveyance. 
Sec. 211. Local government impact aid and community service assistance. 
TITLE III—CLEAN FUTURE-LOWER PRICES ALTERNATIVE 
ENERGY TRUST FUND 
Sec. 301. Clean Future-Lower Prices Alternative Energy Trust Fund. 
TITLE I—OUTER CONTINENTAL 
SHELF 
SEC. 101. POLICY. 
It is the policy of the United States that— 
(1) the United States is blessed with abundant 
energy resources on the outer Continental Shelf and 
has developed a comprehensive framework of envi-
ronmental laws and regulations and fostered the de-
velopment of state-of-the-art technology that allows 
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for the responsible development of these resources 
for the benefit of its citizenry; 
(2) adjacent States are required by the cir-
cumstances to commit significant resources in sup-
port of exploration, development, and production ac-
tivities for mineral resources on the outer Conti-
nental Shelf, and it is fair and proper for a portion 
of the receipts from such activities to be shared with 
Adjacent States and their local coastal governments; 
(3) the existing laws governing the leasing and 
production of the mineral resources of the outer 
Continental Shelf have reduced the production of 
mineral resources, have preempted Adjacent States 
from being sufficiently involved in the decisions re-
garding the allowance of mineral resource develop-
ment, and have been harmful to the national inter-
est; 
(4) the national interest is served by granting 
the Adjacent States more options related to whether 
or not mineral leasing should occur in the outer 
Continental Shelf within their Adjacent Zones; 
(5) it is not reasonably foreseeable that explo-
ration of a leased tract located more than 25 miles 
seaward of the coastline, development and produc-
tion of a natural gas discovery located more than 25 
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miles seaward of the coastline, or development and 
production of an oil discovery located more than 50 
miles seaward of the coastline will adversely affect 
resources near the coastline; 
(6) transportation of oil from a leased tract 
might reasonably be foreseen, under limited cir-
cumstances, to have the potential to adversely affect 
resources near the coastline if the oil is within 50 
miles of the coastline, but such potential to adversely 
affect such resources is likely no greater, and prob-
ably less, than the potential impacts from tanker 
transportation because tanker spills usually involve 
large releases of oil over a brief period of time; and 
(7) among other bodies of inland waters, the 
Great Lakes, Long Island Sound, Delaware Bay, 
Chesapeake Bay, Albemarle Sound, San Francisco 
Bay, and Puget Sound are not part of the outer 
Continental Shelf, and are not subject to leasing by 
the Federal Government for the exploration, develop-
ment, and production of any mineral resources that 
might lie beneath them. 
SEC. 102. DEFINITIONS UNDER THE SUBMERGED LANDS 
ACT. 
Section 2 of the Submerged Lands Act (43 U.S.C. 
1301) is amended— 
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(1) in subparagraph (2) of paragraph (a) by 
striking all after ‘‘seaward to a line’’ and inserting 
‘‘twelve nautical miles distant from the coast line of 
such State;’’; 
(2) by striking out paragraph (b) and redesig-
nating the subsequent paragraphs in order as para-
graphs (b) through (g); 
(3) by striking the period at the end of para-
graph (g) (as so redesignated) and inserting ‘‘; 
and’’; 
(4) by adding the following: ‘‘(i) The term ‘Sec-
retary’ means the Secretary of the Interior.’’; and 
(5) by defining ‘‘State’’ as it is defined in Sec-
tion 2(r) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331(r)). 
SEC. 103. SEAWARD BOUNDARIES OF STATES. 
Section 4 of the Submerged Lands Act (43 U.S.C. 
1312) is amended— 
(1) in the first sentence by striking ‘‘original’’, 
and in the same sentence by striking ‘‘three geo-
graphical’’ and inserting ‘‘twelve nautical’’; and 
(2) by striking all after the first sentence and 
inserting the following: ‘‘Extension and delineation 
of lateral offshore State boundaries under the provi-
sions of this Act shall follow the lines used to deter-
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mine the Adjacent Zones of coastal States under the 
Outer Continental Shelf Lands Act to the extent 
such lines extend twelve nautical miles for the near-
est coastline.’’ 
SEC. 104. EXCEPTIONS FROM CONFIRMATION AND ESTAB-
LISHMENT OF STATES’ TITLE, POWER, AND 
RIGHTS. 
Section 5 of the Submerged Lands Act (43 U.S.C. 
1313) is amended— 
(1) by redesignating paragraphs (a) through (c) 
in order as paragraphs (1) through (3); 
(2) by inserting ‘‘(a)’’ before ‘‘There is ex-
cepted’’; and 
(3) by inserting at the end the following: 
‘‘(b) EXCEPTION
OF
OIL
AND
GAS
MINERAL 
RIGHTS.—There is excepted from the operation of sections 
3 and 4 all of the oil and gas mineral rights for lands 
beneath the navigable waters that are located within the 
expanded offshore State seaward boundaries established 
under this Act. These oil and gas mineral rights shall re-
main Federal property and shall be considered to be part 
of the Federal outer Continental Shelf for purposes of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) and subject to leasing under the authority of that 
Act and to laws applicable to the leasing of the oil and 
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gas resources of the Federal outer Continental Shelf. All 
existing Federal oil and gas leases within the expanded 
offshore State seaward boundaries shall continue un-
changed by the provisions of this Act, except as otherwise 
provided herein. However, a State may exercise all of its 
sovereign powers of taxation within the entire extent of 
its expanded offshore State boundaries.’’. 
SEC. 105. DEFINITIONS UNDER THE OUTER CONTINENTAL 
SHELF LANDS ACT. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended— 
(1) by amending paragraph (f) to read as fol-
lows: 
‘‘(f) The term ‘affected State’ means the ‘Adjacent 
State’.’’; 
(2) by striking the semicolon at the end of each 
of paragraphs (a) through (o) and inserting a pe-
riod; 
(3) by striking ‘‘; and’’ at the end of paragraph 
(p) and inserting a period; 
(4) by adding at the end the following: 
‘‘(r) The term ‘Adjacent State’ means, with respect 
to any program, plan, lease sale, leased tract or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, any State the laws of which are 
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declared, pursuant to section 4(a)(2), to be the law of the 
United States for the portion of the outer Continental 
Shelf on which such program, plan, lease sale, leased tract 
or activity appertains or is, or is proposed to be, con-
ducted. For purposes of this paragraph, the term ‘State’ 
includes the Commonwealth of Puerto Rico, the Common-
wealth of the Northern Mariana Islands, the Virgin Is-
lands, American Samoa, Guam, and the other Territories 
of the United States. 
‘‘(s) The term ‘Adjacent Zone’ means, with respect 
to any program, plan, lease sale, leased tract, or other ac-
tivity, proposed, conducted, or approved pursuant to the 
provisions of this Act, the portion of the outer Continental 
Shelf for which the laws of a particular Adjacent State 
are declared, pursuant to section 4(a)(2), to be the law 
of the United States. 
‘‘(t) The term ‘miles’ means statute miles. 
‘‘(u) The term ‘coastline’ has the same meaning as 
the term ‘coast line’ as defined in section 2(c) of the Sub-
merged Lands Act (43 U.S.C. 1301(c)). 
‘‘(v) The term ‘Neighboring State’ means a coastal 
State having a common boundary at the coastline with the 
Adjacent State.’’; and 
(5) in paragraph (a), by inserting after ‘‘con-
trol’’ the following: ‘‘or lying within the United 
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States exclusive economic zone adjacent to the Terri-
tories of the United States’’. 
SEC. 106. DETERMINATION OF ADJACENT ZONES AND 
PLANNING AREAS. 
Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 
first sentence by striking ‘‘, and the President’’ and all 
that follows through the end of the sentence and inserting 
the following: ‘‘. The lines extending seaward and defining 
each State’s Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental 
Shelf region entitled ‘Alaska OCS Region State Adjacent 
Zone and OCS Planning Areas’, ‘Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas’, ‘Gulf of 
Mexico OCS Region State Adjacent Zones and OCS Plan-
ning Areas’, and ‘Atlantic OCS Region State Adjacent 
Zones and OCS Planning Areas’, all of which are dated 
September 2005 and on file in the Office of the Director, 
Minerals Management Service.’’. 
SEC. 107. ADMINISTRATION OF LEASING. 
Section 5 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1334) is amended by adding at the end the 
following: 
‘‘(k) VOLUNTARY PARTIAL RELINQUISHMENT OF A 
LEASE.—Any lessee of a producing lease may relinquish 
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to the Secretary any portion of a lease that the lessee has 
no interest in producing and that the Secretary finds is 
geologically prospective. In return for any such relinquish-
ment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, 
in accordance with regulations promulgated by the Sec-
retary to carry out this subsection. The Secretary shall 
publish final regulations implementing this subsection 
within 365 days after the date of the enactment of the 
Funding a Clean Energy Future By Bringing Lower Gas 
Prices for Americans Today Act of 2008. 
‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 
than July 1, 2010, the Secretary shall publish a final regu-
lation that shall— 
‘‘(1) establish procedures for entering into nat-
ural gas leases; 
‘‘(2) ensure that natural gas leases are only 
available for tracts on the outer Continental Shelf 
that are wholly within 100 miles of the coastline 
within an area withdrawn from disposition by leas-
ing on the day after the date of enactment of the 
Funding a Clean Energy Future By Bringing Lower 
Gas Prices for Americans Today Act of 2008; 
‘‘(3) provide that natural gas leases shall con-
tain the same rights and obligations established for 
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oil and gas leases, except as otherwise provided in 
the Funding a Clean Energy Future By Bringing 
Lower Gas Prices for Americans Today Act of 2008; 
‘‘(4) provide that, in reviewing the adequacy of 
bids for natural gas leases, the value of any crude 
oil estimated to be contained within any tract shall 
be excluded; 
‘‘(5) provide that any crude oil produced from 
a well and reinjected into the leased tract shall not 
be subject to payment of royalty, and that the Sec-
retary shall consider, in setting the royalty rates for 
a natural gas lease, the additional cost to the lessee 
of not producing any crude oil; and 
‘‘(6) provide that any Federal law that applies 
to an oil and gas lease on the outer Continental 
Shelf shall apply to a natural gas lease unless other-
wise clearly inapplicable.’’. 
SEC. 108. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
(1) in subsection (a)(1) by inserting after the 
first sentence the following: ‘‘Further, the Secretary 
may grant natural gas leases in a manner similar to 
the granting of oil and gas leases and under the var-
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ious bidding systems available for oil and gas 
leases.’’; 
(2) by adding at the end of subsection (b) the 
following: 
‘‘The Secretary may issue more than one lease for 
a given tract if each lease applies to a separate and dis-
tinct range of vertical depths, horizontal surface area, or 
a combination of the two. The Secretary may issue regula-
tions that the Secretary determines are necessary to man-
age such leases consistent with the purposes of this Act.’’; 
(3) by amending subsection (p)(2)(B) to read 
as follows: 
‘‘(B) The Secretary shall provide for the 
payment to coastal states, and their local coast-
al governments, of 75 percent of Federal re-
ceipts from projects authorized under this sec-
tion located partially or completely within the 
area extending seaward of State submerged 
lands out to 4 marine leagues from the coast-
line, and the payment to coastal states of 50 
percent of the receipts from projects completely 
located in the area more than 4 marine leagues 
from the coastline. Payments shall be based on 
a formula established by the Secretary by rule-
making no later than 180 days after the date 
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of the enactment of the Funding a Clean En-
ergy Future By Bringing Lower Gas Prices for 
Americans Today Act of 2008 that provides for 
equitable distribution, based on proximity to the 
project, among coastal states that have coast-
line that is located within 200 miles of the geo-
graphic center of the project.’’. 
(4) by adding at the end the following: 
‘‘(q) NATURAL GAS LEASES.— 
‘‘(1) RIGHT
TO
PRODUCE
NATURAL
GAS.—A 
lessee of a natural gas lease shall have the right to 
produce the natural gas from a field on a natural 
gas leased tract if the Secretary estimates that the 
discovered field has at least 40 percent of the eco-
nomically recoverable Btu content of the field con-
tained within natural gas and such natural gas is ec-
onomical to produce. 
‘‘(2) CRUDE OIL.—A lessee of a natural gas 
lease may not produce crude oil from the lease un-
less the Governor of the Adjacent State agrees to 
such production. 
‘‘(3) ESTIMATES OF BTU CONTENT.—The Sec-
retary shall make estimates of the natural gas Btu 
content of discovered fields on a natural gas lease 
only after the completion of at least one exploration 
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well, the data from which has been tied to the re-
sults of a three-dimensional seismic survey of the 
field. The Secretary may not require the lessee to 
further delineate any discovered field prior to mak-
ing such estimates. 
‘‘(4) DEFINITION OF NATURAL GAS.—For pur-
poses of a natural gas lease, natural gas means nat-
ural gas and all substances produced in association 
with gas, including, but not limited to, hydrocarbon 
liquids (other than crude oil) that are obtained by 
the condensation of hydrocarbon vapors and sepa-
rate out in liquid form from the produced gas 
stream. 
‘‘(r) REMOVAL OF RESTRICTIONS ON JOINT BIDDING 
IN
CERTAIN
AREAS
OF
THE
OUTER
CONTINENTAL 
SHELF.—Restrictions on joint bidders shall no longer 
apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions 
determined to be ‘frontier tracts’ or otherwise ‘high cost 
tracts’ under final regulations that shall be published by 
the Secretary by not later than 365 days after the date 
of the enactment of the Funding a Clean Energy Future 
By Bringing Lower Gas Prices for Americans Today Act 
of 2008. 
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‘‘(s) ROYALTY SUSPENSION PROVISIONS.—After the 
date of the enactment of the Funding a Clean Energy Fu-
ture By Bringing Lower Gas Prices for Americans Today 
Act of 2008, price thresholds shall apply to any royalty 
suspension volumes granted by the Secretary. Unless oth-
erwise set by Secretary by regulation or for a particular 
lease sale, the price thresholds shall be $40.50 for oil 
(January 1, 2006 dollars) and $6.75 for natural gas (Jan-
uary 1, 2006 dollars). 
‘‘(t) CONSERVATION
OF RESOURCES FEES.—Not 
later than one year after the date of the enactment of the 
Funding a Clean Energy Future By Bringing Lower Gas 
Prices for Americans Today Act of 2008, the Secretary 
by regulation shall establish a conservation of resources 
fee for nonproducing leases that will apply to new and ex-
isting leases which shall be set at $3.75 per acre per year. 
This fee shall apply from and after October 1, 2008, and 
shall be treated as offsetting receipts.’’; 
(5) by striking subsection (a)(3)(A) and redes-
ignating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
(6) in subsection (a)(3)(A) (as so redesignated) 
by striking ‘‘In the Western’’ and all that follows 
through ‘‘the Secretary’’ the first place it appears 
and inserting ‘‘The Secretary’’; and 
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