the Coastal Economic and Environmental Protection 
Act; 
‘‘(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. 6. 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-
ious bidding systems available for oil and gas 
leases.’’; 
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sroberts on PROD1PC70 with BILLS
(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 sepa-
rate and distinct range of vertical depths, horizontal 
surface area, or a combination of the two. The Sec-
retary may issue regulations that the Secretary de-
termines are necessary to manage such leases con-
sistent with the purposes of this Act.’’; 
(3) in subsection (p)(2)(B)— 
(A) by striking ‘‘27’’ and inserting ‘‘50’’; 
and 
(B) by striking ‘‘15’’ and inserting ‘‘200’’; 
(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 natural gas leased 
tract if the Secretary estimates that the discovered 
field has at least 40 percent of the economically re-
coverable Btu content of the field contained within 
natural gas and such natural gas is economical to 
produce. 
‘‘(2) RIGHT TO PRODUCE CRUDE OIL.—A lessee 
of a natural gas lease may produce crude oil from 
the lease unless the Governor and the legislature of 
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the Adjacent State object to such production within 
180 days after receipt of written notice from the les-
see of intent to produce crude oil from the lease. If 
the leased tract is located within 50 miles of the 
nearest point on the coastline of a Neighboring 
State, the Governor and legislature of the Neigh-
boring State shall also receive such notice and have 
the right to object to such production within 180 
days after receipt of such notice. 
‘‘(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 
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) TRANSPORTATION OF CRUDE OIL.—If an 
Adjacent State or any applicable Neighboring State 
does not object to production of crude oil from a 
natural gas lease, the lessee shall be permitted to 
transport the crude oil from the leased tract through 
Adjacent State waters, and Neighboring State wa-
ters if applicable, to facilities onshore in the Adja-
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cent State, and Neighboring State if applicable, un-
less the lessee agreed to other arrangements with 
the Adjacent State or Neighboring State, or both. 
‘‘(5) REPURCHASE OF CERTAIN NATURAL GAS 
LEASES.—Upon request of the lessee and certifi-
cation by the Secretary of the Interior that a natural 
gas lease contains all or part of a commercial oil and 
gas discovery that is not allowed to be produced be-
cause it does not meet the standard set in paragraph 
(1), the Secretary of the Treasury shall repurchase 
the lease by issuance of a check or electronic pay-
ment from OCS Receipts to the lessee in full com-
pensation for the repurchase. The Secretary shall re-
coup from the State and local governments any 
funds previously shared with them that were derived 
from the repurchased lease. Such recoupment shall 
only be from the State and local governments’ 
shares of OCS receipts that are payable after the 
date of repurchase. 
‘‘(6) AMOUNT OF COMPENSATION.—Repurchase 
compensation for each lease repurchased under the 
authority of this section shall be in the amount of 
the lesser of the original bonus bid paid for the lease 
or, if the lessee is not the original lessee, the com-
pensation paid by the current lessee to obtain its in-
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terest in the lease. In addition, the lessee shall be 
compensated for any expenses directly attributable 
to the lease that the lessee incurs after acquisition 
of its interest in the lease to be repurchased, includ-
ing rentals, seismic acquisition costs, drilling costs, 
and other reasonable expenses on the lease, includ-
ing expenses incurred in the repurchase process, to 
the extent that the lessee has not previously been 
compensated by the United States for such expenses. 
The lessee shall not be compensated for general 
overhead expenses or employee salaries. 
‘‘(7) PRIORITY RIGHT TO OBTAIN FUTURE OIL 
AND GAS LEASE.—The lessee, or a designee of the 
lessee, of a repurchased natural gas leased tract 
shall have the right to repurchase such tract as an 
oil and gas lease, on a noncompetitive basis, by re-
paying the amount received by the lessee if the tract 
is made available for lease under an oil and gas 
lease within 30 years after the repurchase. 
‘‘(8) 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-
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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 Coastal Economic and Environ-
mental Protection Act.’’; 
(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 
(7) effective October 1, 2006, in subsection 
(g)— 
(A) by striking all after ‘‘(g)’’, except para-
graph (3); 
(B) by striking the last sentence of para-
graph (3); and 
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sroberts on PROD1PC70 with BILLS
(C) by striking ‘‘(3)’’. 
SEC. 7. 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: 
‘‘(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, 2005, 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 125 miles 
of any coastline that are available for leas-
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sroberts on PROD1PC70 with BILLS
ing under the 2002–2007 5-Year Oil and 
Gas Leasing Program in effect prior to the 
date of the enactment of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2005, completely beyond 4 
marine leagues from any coastline and 
completely within 125 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 in effect prior to the date of 
the enactment of the Coastal Economic 
and Environmental Protection Act. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2005, located in 
the Alaska OCS Region completely beyond 
4 marine leagues from any coastline and 
completely within 125 miles of the coast-
line. 
‘‘(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 2006, 6.0 percent. 
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‘‘(ii) For fiscal year 2007, 7.0 per-
cent. 
‘‘(iii) For fiscal year 2008, 8.0 per-
cent. 
‘‘(iv) For fiscal year 2009, 9.0 per-
cent. 
‘‘(v) For fiscal year 2010, 12.0 per-
cent. 
‘‘(vi) For fiscal year 2011, 15.0 per-
cent. 
‘‘(vii) For fiscal year 2012, 18.0 per-
cent. 
‘‘(viii) For fiscal year 2013, 21.0 per-
cent. 
‘‘(ix) For fiscal year 2014, 24.0 per-
cent. 
‘‘(x) For fiscal year 2015, 27.0 per-
cent. 
‘‘(xi) For fiscal year 2016, 30.0 per-
cent. 
‘‘(xii) For fiscal year 2017, 33.0 per-
cent. 
‘‘(xiii) For fiscal year 2018, 36.0 per-
cent. 
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‘‘(xiv) For fiscal year 2019, 39.0 per-
cent. 
‘‘(xv) For fiscal year 2020, 42.0 per-
cent. 
‘‘(xvi) For fiscal year 2021, 45.0 per-
cent. 
‘‘(xvii) For fiscal year 2022 and each 
subsequent fiscal year, 50.0 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 
6(2) of the Coastal Economic and Environ-
mental Protection Act. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2005, the Secretary shall share 50 
percent of OCS Receipts derived from all leases lo-
cated completely beyond 4 marine leagues from any 
coastline and completely within 125 miles of any 
coastline not included within the provisions of para-
graph (2). 
‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 
4 MARINE LEAGUES OF ANY COASTLINE.—Beginning 
October 1, 2005, the Secretary shall share 75 per-
cent of OCS Receipts derived from all leases located 
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completely or partially within 4 marine leagues from 
any coastline. 
‘‘(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 as follows: 
‘‘(i) 87.5 percent to the Adjacent 
State. 
‘‘(ii) 6.25 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(iii) 5 percent into the account es-
tablished by section 23 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(iv) 1.25 percent into the account es-
tablished by section 26 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
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sroberts on PROD1PC70 with BILLS
thereon, shall be allocated at the end of each 
fiscal year as follows: 
‘‘(i) 87.5 percent to the Adjacent 
State and any other producing State or 
States with a leased tract within its Adja-
cent Zone within 125 miles of its coastline 
that generated royalties during the fiscal 
year, if the other producing 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 pro-
ducing State, including the Adjacent 
State, inversely proportional to the 
distance between the nearest point on 
the coastline of the producing State 
and the geographic center of the 
leased tract. 
‘‘(ii) 6.25 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Coastal Eco-
nomic and Environmental Protection Act; 
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‘‘(iii) 5 percent into the account es-
tablished by section 23 of the Coastal Eco-
nomic and Environmental Protection Act; 
and 
‘‘(iv) 1.25 percent into the account es-
tablished by section 26 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS 
PARTIALLY OR COMPLETELY BEYOND 125 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.— 
‘‘(A) Beginning October 1, 2005, 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 125 miles of any 
coastline that are available for leasing 
under the 2002–2007 5-Year Oil and Gas 
Leasing Program in effect prior to the 
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date of enactment of the Coastal Economic 
and Environmental Protection Act. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2005, partially or completely 
beyond 125 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 Program 
in effect prior to the date of enactment of 
the Coastal Economic and Environmental 
Protection Act. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2005, located in 
the Alaska OCS Region partially or com-
pletely beyond 125 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 2006, 6.0 percent. 
‘‘(ii) For fiscal year 2007, 7.0 per-
cent. 
‘‘(iii) For fiscal year 2008, 8.0 per-
cent. 
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‘‘(iv) For fiscal year 2009, 9.0 per-
cent. 
‘‘(v) For fiscal year 2010, 12.0 per-
cent. 
‘‘(vi) For fiscal year 2011, 15.0 per-
cent. 
‘‘(vii) For fiscal year 2012, 18.0 per-
cent. 
‘‘(viii) For fiscal year 2013, 21.0 per-
cent. 
‘‘(ix) For fiscal year 2014, 24.0 per-
cent. 
‘‘(x) For fiscal year 2015, 27.0 per-
cent. 
‘‘(xi) For fiscal year 2016, 30.0 per-
cent. 
‘‘(xii) For fiscal year 2017, 33.0 per-
cent. 
‘‘(xiii) For fiscal year 2018, 36.0 per-
cent. 
‘‘(xiv) For fiscal year 2019, 39.0 per-
cent. 
‘‘(xv) For fiscal year 2020, 42.0 per-
cent. 
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‘‘(xvi) For fiscal year 2021, 45.0 per-
cent. 
‘‘(xvii) For fiscal year 2022 and each 
subsequent fiscal year, 50.0 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 
6(2) of the Coastal Economic and Environ-
mental Protection Act. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2005, the Secretary shall share 50 
percent of OCS Receipts derived on and after Octo-
ber 1, 2005, from all leases located partially or com-
pletely beyond 125 miles of any coastline not in-
cluded within the provisions of paragraph (2). 
‘‘(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 as follows: 
‘‘(i) 87.5 percent to the Adjacent 
State. 
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‘‘(ii) 6.25 percent into the Treasury, 
which shall be allocated to the account es-
tablished by section 14 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(iii) 5 percent into the account es-
tablished by section 23 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(iv) 1.25 percent into the account es-
tablished by section 26 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year as follows: 
‘‘(i) 87.5 percent to the Adjacent 
State and any other producing State or 
States with a leased tract within its Adja-
cent Zone partially or completely beyond 
125 miles of its coastline that generated 
royalties during the fiscal 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— 
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‘‘(I) one-third to the Adjacent 
State; and 
‘‘(II) two-thirds to each pro-
ducing State, including the Adjacent 
State, inversely proportional to the 
distance between the nearest point on 
the coastline of the producing State 
and the geographic center of the 
leased tract. 
‘‘(ii) 6.25 percent into the account es-
tablished by section 14 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(iii) 5 percent into the account es-
tablished by section 23 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(iv) 1.25 percent into the account es-
tablished by section 26 of the Coastal Eco-
nomic and Environmental Protection Act. 
‘‘(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 two-thirds of such 
State’s 
allocations 
under 
subsections 
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(b)(5)(A)(i), 
(b)(5)(B)(i), 
(c)(4)(A)(i), 
and 
(c)(4)(B)(i) for the immediate prior fiscal year; 
‘‘(B) to coastal county-equivalent and mu-
nicipal political subdivisions of such State a 
total of one-third of such State’s allocations 
under subsections (b)(5)(A)(i), (b)(5)(B)(i), 
(c)(4)(A)(i), and (c)(4)(B)(i), together with all 
accrued interest thereon; and 
‘‘(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 based on 
the ratio of such coastal county-equivalent polit-
ical subdivision’s population to the coastal pop-
ulation of all coastal county-equivalent political 
subdivisions in the State. 
‘‘(B) 25 percent shall be allocated based on 
the ratio of such coastal county-equivalent polit-
ical subdivision’s coastline miles to the coastline 
miles of all coastal county-equivalent political 
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subdivisions in the State as calculated by the 
Secretary. In such calculations, coastal county- 
equivalent political subdivisions without a coast-
line shall be considered to have 50 percent of 
the average coastline miles of the coastal coun-
ty-equivalent political subdivisions that do have 
coastlines. 
‘‘(C) 25 percent shall be allocated to all 
coastal county-equivalent political subdivisions 
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. 
‘‘(D) 25 percent shall be allocated to all 
coastal county-equivalent political subdivisions 
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 Con-
tinental 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 Continental 
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Shelf oil and gas activities’ for purposes of this 
subparagraph to include, but not be limited to, 
construction of vessels, drillships, and platforms 
involved in exploration, production, and develop-
ment on the outer Continental Shelf; support 
and supply bases, ports, and related activities; 
offices of geologists, geophysicists, engineers, 
and other professionals involved in support of 
exploration, production, and development of oil 
and gas on the outer Continental Shelf; pipe-
lines and other means of transporting oil and 
gas production from the outer Continental 
Shelf; and processing 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 
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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 
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. 
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‘‘(3) To reduce taxes. 
‘‘(4) To promote and provide for— 
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways maintenance; 
‘‘(D) shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To improve infrastructure associated with 
energy production activities conducted on the outer 
Continental Shelf. 
‘‘(6) To fund energy demonstration projects 
and supporting infrastructure for energy projects. 
‘‘(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. 
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‘‘(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 
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 
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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. 
‘‘(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 
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