duction on the outer Continental Shelf in the 
planning area; and 
(B) if the Secretary determines that there 
is a commercial interest described in subpara-
graph (A), conduct a lease sale in the planning 
area. 
(b) RENEWABLE ENERGY AND MARICULTURE.—The 
Secretary may conduct commercial lease sales of re-
sources— 
(1) to produce renewable energy (as defined in 
section 203(b) of the Energy Policy Act of 2005 (42 
U.S.C. 15852(b))); or 
(2) to cultivate marine organisms in the natural 
habitat of the organisms. 
SEC. 105. PROHIBITIONS ON SURFACE OCCUPANCY. 
(a) REGULATIONS.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior shall promulgate regulations that establish man-
agement of the surface occupancy of the portion of 
the Outer Continental Shelf near the coastline to the 
effect that— 
(A) the coastal State shall have sole au-
thority to restrict or allow surface facilities 
above the waterline for the purpose of produc-
tion of oil or gas resources in any area that is 
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within 12 nautical miles seaward from the 
coastline of any coastal State, in any area of 
the Outer Continental Shelf that has not been 
made available for oil and gas leasing after 
January 1, 2001, in a final notice of sale; 
(B) unless permanent surface occupancy is 
authorized by the coastal State, only sub-sur-
face production facilities may be installed for 
areas that are located beyond 12 nautical miles 
but not more than 25 nautical miles seaward 
from the coastline of any coastal State, in any 
area of the Outer Continental Shelf that has 
not been made available for oil and gas leasing 
after January 1, 2001, in a final notice of sale; 
and 
(C) new offshore production facilities are 
encouraged and the impacts on coastal vistas 
are minimized, to the extent practical; and 
(D) onshore facilities that facilitate the de-
velopment and production of the resources of 
the Outer Continental Shelf within 12 nautical 
miles seaward of the coastline are allowed. 
(2) TEMPORARY ACTIVITIES NOT AFFECTED.— 
Nothing in these regulations shall restrict temporary 
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surface activities related to operations associated 
with Outer Continental Shelf oil and gas leases. 
SEC. 106. DEFINITIONS UNDER THE SUBMERGED LANDS 
ACT. 
Section 2 of the Submerged Lands Act (43 U.S.C. 
1301) is amended— 
(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. 107. SEAWARD BOUNDARIES OF STATES. 
Section 4 of the Submerged Lands Act (43 U.S.C. 
1312) is amended— 
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(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-
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. 108. 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 
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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 
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. 109. 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; 
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(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 
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. 
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‘‘(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 
States exclusive economic zone adjacent to the Terri-
tories of the United States’’. 
SEC. 110. 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 
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September 2005 and on file in the Office of the Director, 
Minerals Management Service.’’. 
SEC. 111. 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 
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 
Deep Ocean Energy Resources Act of 2009.’’. 
SEC. 112. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
(1) 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-
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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.’’; 
(2) 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 
of the enactment of the Deep Ocean Energy 
Resources Act of 2009 that provides for equi-
table 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.’’; 
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(3) by adding at the end the following: 
‘‘(q) 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 Deep Ocean Energy Resources 
Act of 2009. 
‘‘(r) ROYALTY SUSPENSION PROVISIONS.—After the 
date of the enactment of the Deep Ocean Energy Re-
sources Act of 2009, price thresholds shall apply to any 
royalty suspension volumes granted by the Secretary. Un-
less otherwise set by Secretary by regulation or for a par-
ticular lease sale, the price thresholds shall be $40.50 for 
oil (January 1, 2006, dollars) and $6.75 for natural gas 
(January 1, 2006, dollars). 
‘‘(s) CONSERVATION
OF RESOURCES FEES.—Not 
later than one year after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2009, 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. 
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This fee shall apply from and after October 1, 2009, and 
shall be treated as offsetting receipts.’’; 
(4) by striking subsection (a)(3)(A) and redes-
ignating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
(5) 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 
(6) effective October 1, 2009, in subsection 
(g)— 
(A) by striking all after ‘‘(g)’’, except para-
graph (3); 
(B) by striking the last sentence of para-
graph (3); and 
(C) by striking ‘‘(3)’’. 
SEC. 113. DISPOSITION OF RECEIPTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended— 
(1) by designating the existing text as sub-
section (a); 
(2) in subsection (a) (as so designated) by in-
serting ‘‘, if not paid as otherwise provided in this 
title’’ after ‘‘receipts’’; and 
(3) by adding the following: 
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‘‘(b) TREATMENT OF OCS RECEIPTS FROM TRACTS 
COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2), (3), and (4). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2009, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region com-
pletely beyond 4 marine leagues from any 
coastline and completely within 100 miles 
of any coastline that were available for 
leasing under the 2002–2007 5-Year OCS 
Oil and Gas Leasing Program. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2009, completely beyond 4 
marine leagues from any coastline and 
completely within 100 miles of any coast-
line located on portions of the OCS that 
were not available for leasing under the 
2002–2007 5-Year OCS Oil and Gas Leas-
ing Program. 
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‘‘(xii) For fiscal year 2021 and each 
subsequent fiscal year, 37.5 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
106(2) of the Deep Ocean Energy Resources 
Act of 2009. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2009, the Secretary shall share 
37.50 percent of OCS Receipts derived from all 
leases located completely beyond 4 marine leagues 
from any coastline and completely within 100 miles 
of any coastline not included within the provisions of 
paragraph (2), and 90 percent of the balance of 
such OCS Receipts shall be deposited into the Amer-
ican Renewable and Alternative Energy Trust Fund 
established by section 321 of the American Energy 
Act. 
‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 
4 MARINE LEAGUES OF ANY COASTLINE.— 
‘‘(A) AREAS
DESCRIBED
IN
PARAGRAPH 
(2).—Beginning October 1, 2009, and con-
tinuing through September 30, 2011, the Sec-
retary shall share 25 percent of OCS Receipts 
derived from all leases located within 4 marine 
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leagues from any coastline within areas de-
scribed in paragraph (2). For each fiscal year 
after September 30, 2011, the Secretary shall 
increase the percent shared in 5 percent incre-
ments each fiscal year until the sharing rate for 
all leases located within 4 marine leagues from 
any coastline within areas described in para-
graph (2) becomes 75 percent. 
‘‘(B) AREAS
NOT
DESCRIBED
IN
PARA-
GRAPH (2).—Beginning October 1, 2009, the 
Secretary shall share 75 percent of OCS re-
ceipts derived from all leases located completely 
or partially within 4 marine leagues from any 
coastline within areas not described paragraph 
(2). 
‘‘(5) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2), (3), and (4) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
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thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone within 100 miles of its 
coastline that generated royalties during the fis-
cal year, if the other producing State or States 
have a coastline point within 300 miles of any 
portion of the leased tract, in which case the 
amount allocated for the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS 
PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE 
COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2) and (3). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
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‘‘(A) Beginning October 1, 2009, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region partially 
or completely beyond 100 miles of any 
coastline that were available for leasing 
under the 2002–2007 5-Year OCS Oil and 
Gas Leasing Program. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2009, partially or completely 
beyond 100 miles of any coastline located 
on portions of the OCS that were not 
available for leasing under the 2002–2007 
5-Year OCS Oil and Gas Leasing Pro-
gram. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2009, located in 
the Alaska OCS Region partially or com-
pletely beyond 100 miles of the coastline. 
‘‘(B) The Secretary shall share the fol-
lowing percentages of OCS Receipts from the 
leases described in subparagraph (A) derived 
during the fiscal year indicated: 
‘‘(i) For fiscal year 2010, 5 percent. 
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‘‘(ii) For fiscal year 2011, 8 percent. 
‘‘(iii) For fiscal year 2012, 11 per-
cent. 
‘‘(iv) For fiscal year 2013, 14 percent. 
‘‘(v) For fiscal year 2014, 17 percent. 
‘‘(vi) For fiscal year 2015, 20 percent. 
‘‘(vii) For fiscal year 2016, 23 per-
cent. 
‘‘(viii) For fiscal year 2017, 26 per-
cent. 
‘‘(ix) For fiscal year 2018, 29 percent. 
‘‘(x) For fiscal year 2019, 32 percent. 
‘‘(xi) For fiscal year 2020, 35 percent. 
‘‘(xii) For fiscal year 2021 and each 
subsequent fiscal year, 37.5 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
106(2) of the Deep Ocean Energy Resources 
Act of 2009. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2009, the Secretary shall share 37.5 
percent of OCS Receipts derived on and after Octo-
ber 1, 2009, from all leases located partially or com-
pletely beyond 100 miles of any coastline not in-
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cluded within the provisions of paragraph (2), except 
that the Secretary shall only share 25 percent of 
such OCS Receipts derived from all such leases 
within a State’s Adjacent Zone if no leasing is al-
lowed within any portion of that State’s Adjacent 
Zone located completely within 100 miles of any 
coastline. 
‘‘(4) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2) and (3) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone partially or completely 
beyond 100 miles of its coastline that generated 
royalties during the fiscal year, if the other pro-
ducing State or States have a coastline point 
within 300 miles of any portion of the leased 
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tract, in which case the amount allocated for 
the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
‘‘(d) TRANSMISSION OF ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the end of each fiscal year, the Secretary shall 
transmit— 
‘‘(A) to each State 60 percent of such 
State’s allocations under subsections (b)(5)(A), 
(b)(5)(B), (c)(4)(A), and (c)(4)(B) for the im-
mediate prior fiscal year; 
‘‘(B) to each coastal county-equivalent and 
municipal political subdivisions of such State a 
total of 40 percent of such State’s allocations 
under 
subsections 
(b)(5)(A), 
(b)(5)(B), 
(c)(4)(A), and (c)(4)(B), together with all ac-
crued interest thereon; and 
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‘‘(C) the remaining allocations under sub-
sections (b)(5) and (c)(4), together with all ac-
crued interest thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY- 
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows: 
‘‘(A) 25 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely more than 25 miles landward of 
the coastline and at least a part of which lies 
not more than 75 miles landward from the 
coastline, with the allocation among such coast-
al county-equivalent political subdivisions based 
on population. 
‘‘(B) 75 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely or partially less than 25 miles 
landward of the coastline, with the allocation 
among such coastal county-equivalent political 
subdivisions to be further allocated as follows: 
‘‘(i) 25 percent shall be allocated 
based on the ratio of such coastal county- 
equivalent political subdivision’s population 
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to the coastal population of all coastal 
county-equivalent political subdivisions in 
the State. 
‘‘(ii) 25 percent shall be allocated 
based on the ratio of such coastal county- 
equivalent political subdivision’s coastline 
miles to the coastline miles of all coastal 
county-equivalent political subdivisions in 
the State as calculated by the Secretary. 
In such calculations, coastal county-equiva-
lent political subdivisions without a coast-
line shall be considered to have 50 percent 
of the average coastline miles of the coast-
al county-equivalent political subdivisions 
that do have coastlines. 
‘‘(iii) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on a 
formula that allocates the funds based on 
such coastal county-equivalent political 
subdivision’s relative distance from the 
leased tract. 
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‘‘(iv) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on 
the relative level of outer Continental Shelf 
oil and gas activities in a coastal political 
subdivision compared to the level of outer 
Continental Shelf activities in all coastal 
political subdivisions in the State. The Sec-
retary shall define the term ‘outer Conti-
nental Shelf oil and gas activities’ for pur-
poses of this subparagraph to include, but 
not be limited to, construction of vessels, 
drillships, and platforms involved in explo-
ration, production, and development on the 
outer Continental Shelf; support and sup-
ply bases, ports, and related activities; of-
fices of geologists, geophysicists, engineers, 
and other professionals involved in support 
of exploration, production, and develop-
ment of oil and gas on the outer Conti-
nental Shelf; pipelines and other means of 
transporting oil and gas production from 
the outer Continental Shelf; and processing 
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and refining of oil and gas production from 
the outer Continental Shelf. For purposes 
of this subparagraph, if a coastal county- 
equivalent political subdivision does not 
have a coastline, its coastal point shall be 
the point on the coastline closest to it. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
SUBDIVISIONS.—The initial allocation to 
each coastal county-equivalent political subdivision 
under paragraph (2) shall be further allocated to the 
coastal county-equivalent political subdivision and 
any coastal municipal political subdivisions located 
partially or wholly within the boundaries of the 
coastal county-equivalent political subdivision as fol-
lows: 
‘‘(A) One-third shall be allocated to the 
coastal county-equivalent political subdivision. 
‘‘(B) Two-thirds shall be allocated on a per 
capita basis to the municipal political subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos-
ited under this section shall be invested by the Secretary 
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of the Treasury in securities backed by the full faith and 
credit of the United States having maturities suitable to 
the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury. 
‘‘(f) USE OF FUNDS.—A recipient of funds under this 
section may use the funds for one or more of the following: 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support 
public education, including career technical edu-
cation. 
‘‘(2) To make transportation infrastructure im-
provements. 
‘‘(3) To reduce taxes. 
‘‘(4) To promote, fund, and provide for— 
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways construction and mainte-
nance; 
‘‘(D) levee construction and maintenance 
and shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To promote, fund, and provide for— 
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‘‘(A) infrastructure associated with energy 
production activities conducted on the outer 
Continental Shelf; 
‘‘(B) energy demonstration projects; 
‘‘(C) supporting infrastructure for shore- 
based energy projects; 
‘‘(D) State geologic programs, including 
geologic mapping and data storage programs, 
and State geophysical data acquisition; 
‘‘(E) State seismic monitoring programs, 
including operation of monitoring stations; 
‘‘(F) development of oil and gas resources 
through enhanced recovery techniques; 
‘‘(G) alternative energy development, in-
cluding bio fuels, coal-to-liquids, oil shale, tar 
sands, geothermal, geopressure, wind, waves, 
currents, hydro, solar, and other renewable en-
ergy; 
‘‘(H) energy efficiency and conservation 
programs; and 
‘‘(I) front-end engineering and design for 
facilities that produce liquid fuels from hydro-
carbons and other biological matter. 
‘‘(6) To promote, fund, and provide for— 
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‘‘(A) historic preservation programs and 
projects; 
‘‘(B) natural disaster planning and re-
sponse; and 
‘‘(C) hurricane and natural disaster insur-
ance programs. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(g) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such 
funds, except as otherwise may be required by law. How-
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
sions may be used as matching funds for other Federal 
programs. 
‘‘(h) EFFECT OF FUTURE LAWS.—Enactment of any 
future Federal statute that has the effect, as determined 
by the Secretary, of restricting any Federal agency from 
spending appropriated funds, or otherwise preventing it 
from fulfilling its pre-existing responsibilities as of the 
date of enactment of the statute, unless such responsibil-
ities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue 
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any permit or other approval impacting on the OCS oil 
and gas leasing program, or any lease issued thereunder, 
or to implement any provision of this Act shall automati-
cally prohibit any sharing of OCS Receipts under this sec-
tion directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Sec-
retary shall make the determination of the existence of 
such restricting effects within 30 days of a petition by any 
outer Continental Shelf lessee or producing State. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
political subdivision’ means a political jurisdiction 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
pendent municipality not part of a county, parish, or 
borough in Alaska, or other equivalent subdivision of 
a coastal State, that lies within the coastal zone. 
‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ means a municipality located within and part 
of a county, parish, borough in Alaska, or other 
equivalent subdivision of a State, all or part of which 
coastal municipal political subdivision lies within the 
coastal zone. 
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‘‘(3) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of all coastal coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Census Bureau. 
‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical subdivision at least a part of which lies, within 
75 miles landward from the coastline, or a greater 
distance as determined by State law enacted to im-
plement this section. 
‘‘(5) BONUS
BIDS.—The term ‘bonus bids’ 
means all funds received by the Secretary to issue 
an outer Continental Shelf minerals lease. 
‘‘(6) ROYALTIES.—The term ‘royalties’ means 
all funds received by the Secretary from production 
of oil or natural gas, or the sale of production taken 
in-kind, from an outer Continental Shelf minerals 
lease. 
‘‘(7) PRODUCING STATE.—The term ‘producing 
State’ means an Adjacent State having an Adjacent 
Zone containing leased tracts from which OCS Re-
ceipts were derived. 
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‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids, royalties, and conservation of re-
sources fees.’’. 
SEC. 114. RESERVATION OF LANDS AND RIGHTS. 
Section 12 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341) is amended by adding at the end the 
following: 
‘‘(g) PROHIBITION ON LEASING EAST OF THE MILI-
TARY MISSION LINE.— 
‘‘(1) Notwithstanding any other provision of 
law, from and after the enactment of the Deep 
Ocean Energy Resources Act of 2009, prior to Janu-
ary 1, 2022, no area of the outer Continental Shelf 
located in the Gulf of Mexico east of the military 
mission line may be offered for leasing for oil and 
gas or natural gas unless a waiver is issued by the 
Secretary of Defense. If such a waiver is granted, 
62.5 percent of the OCS Receipts from a lease with-
in such area issued because of such waiver shall be 
paid annually to the National Guards of all States 
having a point within 1000 miles of such a lease, al-
located among the States on a per capita basis using 
the entire population of such States. 
‘‘(2) In this subsection, the term ‘military mis-
sion line’ means a line located at 86 degrees, 41 
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minutes West Longitude, and extending south from 
the coast of Florida to the outer boundary of United 
States territorial waters in the Gulf of Mexico.’’. 
SEC. 115. OUTER CONTINENTAL SHELF LEASING PROGRAM. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) in subsection (a), by adding at the end of 
paragraph (3) the following: ‘‘The Secretary shall, in 
each 5-Year Program, include lease sales that when 
viewed as a whole propose to offer for oil and gas 
leasing at least 75 percent of the available unleased 
acreage within each OCS Planning Area. Available 
unleased acreage is that portion of the outer Conti-
nental Shelf that is not under lease at the time of 
the proposed lease sale, and has not otherwise been 
made unavailable for leasing by law.’’; 
(2) in subsection (c), by striking so much as 
precedes paragraph (3) and inserting the following: 
‘‘(c)(1) During the preparation of any proposed leas-
ing program under this section, the Secretary shall con-
sider and analyze leasing throughout the entire outer Con-
tinental Shelf without regard to any other law affecting 
such leasing. During this preparation the Secretary shall 
invite and consider suggestions from any interested Fed-
eral agency, including the Attorney General, in consulta-
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tion with the Federal Trade Commission, and from the 
Governor of any coastal State. The Secretary may also in-
vite or consider any suggestions from the executive of any 
local government in a coastal State that have been pre-
viously submitted to the Governor of such State, and from 
any other person. Further, the Secretary shall consult 
with the Secretary of Defense regarding military oper-
ational needs in the outer Continental Shelf. The Sec-
retary shall work with the Secretary of Defense to resolve 
any conflicts that might arise regarding offering any area 
of the outer Continental Shelf for oil and gas leasing. If 
the Secretaries are not able to resolve all such conflicts, 
any unresolved issues shall be elevated to the President 
for resolution. 
‘‘(2) After the consideration and analysis required by 
paragraph (1), including the consideration of the sugges-
tions received from any interested Federal agency, the 
Federal Trade Commission, the Governor of any coastal 
State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal 
Register a proposed leasing program accompanied by a 
draft environmental impact statement prepared pursuant 
to the National Environmental Policy Act of 1969. After 
the publishing of the proposed leasing program and during 
the comment period provided for on the draft environ-
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mental impact statement, the Secretary shall submit a 
copy of the proposed program to the Governor of each af-
fected State for review and comment. The Governor may 
solicit comments from those executives of local govern-
ments in the Governor’s State that the Governor, in the 
discretion of the Governor, determines will be affected by 
the proposed program. If any comment by such Governor 
is received by the Secretary at least 15 days prior to sub-
mission to the Congress pursuant to paragraph (3) and 
includes a request for any modification of such proposed 
program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such 
request in such modified form as the Secretary considers 
appropriate, and stating the Secretary’s reasons therefor. 
All such correspondence between the Secretary and the 
Governor of any affected State, together with any addi-
tional information and data relating thereto, shall accom-
pany such proposed program when it is submitted to the 
Congress.’’; and 
(3) by adding at the end the following: 
‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE-
SOURCES AND STATE AND LOCAL GOVERNMENT SHARES 
OF OCS RECEIPTS.—Concurrent with the publication of 
the scoping notice at the beginning of the development of 
each 5-Year Outer Continental Shelf Oil and Gas Leasing 
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Program, or as soon thereafter as possible, the Secretary 
shall— 
‘‘(1) provide to each Adjacent State a current 
estimate of proven and potential oil and gas re-
sources located within the State’s Adjacent Zone; 
and 
‘‘(2) provide to each Adjacent State, and coast-
al political subdivisions thereof, a best-efforts projec-
tion of the OCS Receipts that the Secretary expects 
will be shared with each Adjacent State, and its 
coastal political subdivisions, using the assumption 
that the unleased tracts within the State’s Adjacent 
Zone are fully made available for leasing, including 
long-term projected OCS Receipts. In addition, the 
Secretary shall include a macroeconomic estimate of 
the impact of such leasing on the national economy 
and each State’s economy, including investment, 
jobs, revenues, personal income, and other cat-
egories.’’. 
SEC. 116. COORDINATION WITH ADJACENT STATES. 
Section 19 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1345) is amended— 
(1) in subsection (a) in the first sentence by in-
serting ‘‘, for any tract located within the Adjacent 
State’s Adjacent Zone,’’ after ‘‘government’’; and 
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(2) by adding the following: 
‘‘(f)(1) No Federal agency may permit or otherwise 
approve, without the concurrence of the Adjacent State, 
the construction of a crude oil or petroleum products (or 
both) pipeline within the part of the Adjacent State’s Ad-
jacent Zone that is withdrawn from oil and gas leasing, 
except that such a pipeline may be approved, without such 
Adjacent State’s concurrence, to pass through such Adja-
cent Zone if at least 50 percent of the production pro-
jected to be carried by the pipeline within its first 10 years 
of operation is from areas of the Adjacent State’s Adja-
cent Zone. 
‘‘(2) No State may prohibit the construction within 
its Adjacent Zone or its State waters of a natural gas pipe-
line that will transport natural gas produced from the 
outer Continental Shelf. However, an Adjacent State may 
prevent a proposed natural gas pipeline landing location 
if it proposes two alternate landing locations in the Adja-
cent State, acceptable to the Adjacent State, located with-
in 50 miles on either side of the proposed landing loca-
tion.’’. 
SEC. 117. ENVIRONMENTAL STUDIES. 
Section 20(d) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1346) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
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(2) by adding at the end the following: 
‘‘(2) For all programs, lease sales, leases, and 
actions under this Act, the following shall apply re-
garding the application of the National Environ-
mental Policy Act of 1969: 
‘‘(A) Granting or directing lease suspen-
sions and the conduct of all preliminary activi-
ties on outer Continental Shelf tracts, including 
seismic activities, are categorically excluded 
from the need to prepare either an environ-
mental assessment or an environmental impact 
statement, and the Secretary shall not be re-
quired to analyze whether any exceptions to a 
categorical exclusion apply for activities con-
ducted under the authority of this Act. 
‘‘(B) The environmental impact statement 
developed in support of each 5-Year Oil and 
Gas Leasing Program provides the environ-
mental analysis for all lease sales to be con-
ducted under the program and such sales shall 
not be subject to further environmental anal-
ysis. 
‘‘(C) Exploration plans shall not be subject 
to any requirement to prepare an environmental 
impact statement, and the Secretary may find 
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that exploration plans are eligible for categor-
ical exclusion due to the impacts already being 
considered within an environmental impact 
statement or due to mitigation measures in-
cluded within the plan. 
‘‘(D) Within each OCS Planning Area, 
after the preparation of the first development 
and production plan environmental impact 
statement for a leased tract within the Area, fu-
ture development and production plans for 
leased tracts within the Area shall only require 
the preparation of an environmental assessment 
unless the most recent development and produc-
tion plan environmental impact statement with-
in the Area was finalized more than 10 years 
prior to the date of the approval of the plan, in 
which case an environmental impact statement 
shall be required.’’. 
SEC. 118. OUTER CONTINENTAL SHELF INCOMPATIBLE 
USE. 
(a) IN GENERAL.—No Federal agency may permit 
construction or operation (or both) of any facility, or des-
ignate or maintain a restricted transportation corridor or 
operating area on the Federal outer Continental Shelf or 
in State waters, that will be incompatible with, as deter-
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mined by the Secretary of the Interior, oil and gas leasing 
and substantially full exploration and production of tracts 
that are geologically prospective for oil or natural gas (or 
both). 
(b) EXCEPTIONS.—Subsection (a) shall not apply to 
any facility, transportation corridor, or operating area the 
construction, operation, designation, or maintenance of 
which is or will be— 
(1) located in an area of the outer Continental 
Shelf that is unavailable for oil and gas leasing by 
operation of law; 
(2) used for a military readiness activity (as de-
fined in section 315(f) of Public Law 107–314; 16 
U.S.C. 703 note); or 
(3) required in the national interest, as deter-
mined by the President. 
SEC. 119. REPURCHASE OF CERTAIN LEASES. 
(a) AUTHORITY TO REPURCHASE AND CANCEL CER-
TAIN LEASES.—The Secretary of the Interior shall repur-
chase and cancel any Federal oil and gas, geothermal, 
coal, oil shale, tar sands, or other mineral lease, whether 
onshore or offshore, but not including any outer Conti-
nental Shelf oil and gas leases that were subject to litiga-
tion in the Court of Federal Claims on January 1, 2006, 
if the Secretary finds that such lease qualifies for repur-
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chase and cancellation under the regulations authorized 
by this section. 
(b) REGULATIONS.—Not later than 365 days after 
the date of the enactment of this Act, the Secretary shall 
publish a final regulation stating the conditions under 
which a lease referred to in subsection (a) would qualify 
for repurchase and cancellation, and the process to be fol-
lowed regarding repurchase and cancellation. Such regula-
tion shall include, but not be limited to, the following: 
(1) The Secretary shall repurchase and cancel 
a lease after written request by the lessee upon a 
finding by the Secretary that— 
(A) a request by the lessee for a required 
permit or other approval complied with applica-
ble law, except the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1451 et seq.), and 
terms of the lease and such permit or other ap-
proval was denied; 
(B) a Federal agency failed to act on a re-
quest by the lessee for a required permit, other 
approval, or administrative appeal within a reg-
ulatory or statutory time-frame associated with 
the requested action, whether advisory or man-
datory, or if none, within 180 days; or 
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(C) a Federal agency attached a condition 
of approval, without agreement by the lessee, to 
a required permit or other approval if such con-
dition of approval was not mandated by Federal 
statute or regulation in effect on the date of 
lease issuance, or was not specifically allowed 
under the terms of the lease. 
(2) A lessee shall not be required to exhaust ad-
ministrative remedies regarding a permit request, 
administrative appeal, or other required request for 
approval for the purposes of this section. 
(3) The Secretary shall make a final agency de-
cision on a request by a lessee under this section 
within 180 days of request. 
(4) Compensation to a lessee to repurchase and 
cancel a lease under this section shall be the amount 
that a lessee would receive in a restitution case for 
a material breach of contract. 
(5) Compensation shall be in the form of a 
check or electronic transfer from the Department of 
the Treasury from funds deposited into miscella-
neous receipts under the authority of the same Act 
that authorized the issuance of the lease being re-
purchased. 
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(6) Failure of the Secretary to make a final 
agency decision on a request by a lessee under this 
section within 180 days of request shall result in a 
10 percent increase in the compensation due to the 
lessee if the lease is ultimately repurchased. 
(c) NO PREJUDICE.—This section shall not be inter-
preted to prejudice any other rights that the lessee would 
have in the absence of this section. 
SEC. 120. OFFSITE ENVIRONMENTAL MITIGATION. 
Notwithstanding any other provision of law, any per-
son conducting activities under the Mineral Leasing Act 
(30 U.S.C. 181 et seq.), the Geothermal Steam Act (30 
U.S.C. 1001 et seq.), the Mineral Leasing Act for Ac-
quired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 
U.S.C. 552 et seq.), the General Mining Act of 1872 (30 
U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 
601 et seq.), or the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.), may in satisfying any mitigation 
requirements associated with such activities propose miti-
gation measures on a site away from the area impacted 
and the Secretary of the Interior shall accept these pro-
posed measures if the Secretary finds that they generally 
achieve the purposes for which mitigation measures apper-
tained. 
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SEC. 121. OCS REGIONAL HEADQUARTERS. 
Not later than July 1, 2011, the Secretary of the In-
terior shall establish the headquarters for the Atlantic 
OCS Region, the headquarters for the Gulf of Mexico OCS 
Region, and the headquarters for the Pacific OCS Region 
within a State bordering the Atlantic OCS Region, a State 
bordering the Gulf of Mexico OCS Region, and a State 
bordering the Pacific OCS Region. Such Atlantic and Pa-
cific OCS Regions headquarters shall be located within 25 
miles of the coastline and each Minerals Management 
Service OCS regional headquarters shall be the permanent 
duty station for all Minerals Management Service per-
sonnel that on a daily basis spend on average 60 percent 
or more of their time in performance of duties in support 
of the activities of the respective Region, except that the 
Minerals Management Service may house regional inspec-
tion staff in other locations. Each OCS Region shall each 
be led by a Regional Director who shall be an employee 
within the Senior Executive Service. 
SEC. 122. LEASES FOR AREAS LOCATED WITHIN 12 NAU-
TICAL MILES OF CALIFORNIA OR FLORIDA. 
(a) AUTHORIZATION TO CANCEL AND EXCHANGE 
CERTAIN EXISTING OIL AND GAS LEASES.— 
(1) AUTHORITY.—Within 2 years after the date 
of enactment of this Act, the lessee of an existing oil 
and gas lease for an area located completely within 
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12 nautical miles of the coastline within the Cali-
fornia or Florida Adjacent Zones shall have the op-
tion, without compensation, of exchanging such lease 
for a new oil and gas lease having a primary term 
of 5 years. For the area subject to the new lease, the 
lessee may select any unleased tract on the outer 
Continental Shelf that is in an area available for 
leasing. 
(2) ADMINISTRATIVE PROCESS.—The Secretary 
of the Interior shall establish a reasonable adminis-
trative process to implement paragraph (1). Ex-
changes and conversions under subsection (a), in-
cluding the issuance of new leases, shall not be con-
sidered to be major Federal actions for purposes of 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). Further, such actions con-
ducted in accordance with this section are deemed to 
be in compliance all provisions of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1331 et seq.). 
(3) OPERATING
RESTRICTIONS.—A new lease 
issued in exchange for an existing lease under this 
section shall be subject to such national defense op-
erating stipulations on the OCS tract covered by the 
new lease as may be applicable upon issuance. 
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(4) PRIORITY.—The Secretary shall give pri-
ority in the lease exchange process based on the 
amount of the original bonus bid paid for the 
issuance of each lease to be exchanged. The Sec-
retary shall allow leases covering partial tracts to be 
exchanged for leases covering full tracts conditioned 
upon payment of additional bonus bids on a per-acre 
basis as determined by the average per acre of the 
original bonus bid per acre for the partial tract 
being exchanged. 
(b) FURTHER
LEASE
CANCELLATION
AND
EX-
CHANGE PROVISIONS.— 
(1) CANCELLATION OF LEASE.—As part of the 
lease exchange process under this section, the Sec-
retary shall cancel a lease that is exchanged under 
this section. 
(2) CONSENT OF LESSEES.—All lessees holding 
an interest in a lease must consent to cancellation 
of their leasehold interests in order for the lease to 
be cancelled and exchanged under this section. 
(3) WAIVER OF RIGHTS.—As a prerequisite to 
the exchange of a lease under this section, the lessee 
must waive any rights to bring any litigation against 
the United States related to the transaction. 
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