183 
rate which shall be not less than 4 percentage points 
greater than the competitive royalty schedule then in 
force and used for royalty determination for com-
petitive leases issued pursuant to such section as de-
termined by the Secretary: Provided, That royalty 
on such reinstated lease shall be paid on all produc-
tion removed or sold from such lease subsequent to 
the termination of the original lease; 
‘‘(B) payment of back royalties and inclusion in 
a reinstated lease issued pursuant to the provisions 
of section 17(c) of this Act of a requirement for fu-
ture royalties at a rate not less than 162⁄3 percent: 
Provided, That royalty on such reinstated lease shall 
be paid on all production removed or sold from such 
lease subsequent to the cancellation or termination 
of the original lease; and’’; 
(C) in subsection (f)— 
(i) in paragraph (1), strike ‘‘in the 
same manner as the original lease issued 
pursuant to section 17’’ and insert ‘‘as a 
competitive or a noncompetitive oil and gas 
lease in the same manner as the original 
lease issued pursuant to subsection (b) or 
(c) of section 17 of this Act’’;
184 
(ii) by redesignating paragraphs (2) 
and (3) as paragraph (3) and (4), respec-
tively; and 
(iii) by inserting after paragraph (1) 
the following: 
‘‘(2) Except as otherwise provided in this sec-
tion, the issuance of a lease in lieu of an abandoned 
patented oil placer mining claim shall be treated as 
a noncompetitive oil and gas lease issued pursuant 
to section 17(c) of this Act.’’; 
(D) in subsection (g), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsections (d) and 
(f)’’; 
(E) by amending subsection (h) to read as 
follows: 
‘‘(h) ROYALTY REDUCTIONS.— 
‘‘(1) In acting on a petition to issue a non-
competitive oil and gas lease, under subsection (f) of 
this section or in response to a request filed after 
issuance of such a lease, or both, the Secretary is 
authorized to reduce the royalty on such lease if in 
his judgment it is equitable to do so or the cir-
cumstances warrant such relief due to uneconomic 
or other circumstances which could cause undue 
hardship or premature termination of production.
185 
‘‘(2) In acting on a petition for reinstatement 
pursuant to subsection (d) of this section or in re-
sponse to a request filed after reinstatement, or 
both, the Secretary is authorized to reduce the roy-
alty in that reinstated lease on the entire leasehold 
or any tract or portion thereof segregated for royalty 
purposes if, in his judgment, there are uneconomic 
or other circumstances which could cause undue 
hardship or premature termination of production; or 
because of any written action of the United States, 
its agents or employees, which preceded, and was a 
major consideration in, the lessee’s expenditure of 
funds to develop the property under the lease after 
the rent had become due and had not been paid; or 
if in the judgment of the Secretary it is equitable to 
do so for any reason.’’; 
(F) 
by 
redesignating 
subsections 
(f) 
through (i) as subsections (g) through (j), re-
spectively; and 
(G) by inserting after subsection (e) the 
following: 
‘‘(f) ISSUANCE OF NONCOMPETITIVE OIL AND GAS 
LEASE; CONDITIONS.—Where an unpatented oil placer 
mining claim validly located prior to February 24, 1920, 
which has been or is currently producing or is capable of
186 
producing oil or gas, has been or is hereafter deemed con-
clusively abandoned for failure to file timely the required 
instruments or copies of instruments required by section 
1744 of title 43, and it is shown to the satisfaction of 
the Secretary that such failure was inadvertent, justifi-
able, or not due to lack of reasonable diligence on the part 
of the owner, the Secretary may issue, for the lands cov-
ered by the abandoned unpatented oil placer mining claim, 
a noncompetitive oil and gas lease, consistent with the pro-
visions of section 17(e) of this Act, to be effective from 
the statutory date the claim was deemed conclusively 
abandoned. Issuance of such a lease shall be conditioned 
upon: 
‘‘(1) a petition for issuance of a noncompetitive 
oil and gas lease, together with the required rental 
and royalty, including back rental and royalty accru-
ing from the statutory date of abandonment of the 
oil placer mining claim, being filed with the 
Secretary- (A) with respect to any claim deemed 
conclusively abandoned on or before January 12, 
1983, on or before the one hundred and twentieth 
day after January 12, 1983, or (B) with respect to 
any claim deemed conclusively abandoned after Jan-
uary 12, 1983, on or before the one hundred and 
twentieth day after final notification by the Sec-
187 
retary or a court of competent jurisdiction of the de-
termination of the abandonment of the oil placer 
mining claim; 
‘‘(2) a valid lease not having been issued affect-
ing any of the lands covered by the abandoned oil 
placer mining claim prior to the filing of such peti-
tion: Provided, however, That after the filing of a 
petition for issuance of a lease under this subsection, 
the Secretary shall not issue any new lease affecting 
any of the lands covered by such abandoned oil plac-
er mining claim for a reasonable period, as deter-
mined in accordance with regulations issued by him; 
‘‘(3) a requirement in the lease for payment of 
rental, including back rentals accruing from the 
statutory date of abandonment of the oil placer min-
ing claim, of not less than $5 per acre per year; 
‘‘(4) a requirement in the lease for payment of 
royalty on production removed or sold from the oil 
placer mining claim, including all royalty on produc-
tion made subsequent to the statutory date the claim 
was deemed conclusively abandoned, of not less than 
121⁄2 percent; and 
‘‘(5) compliance with the notice and reimburse-
ment of costs provisions of paragraph (4) of sub-
section (e) but addressed to the petition covering the
188 
conversion of an abandoned unpatented oil placer 
mining claim to a noncompetitive oil and gas lease.’’. 
TITLE VI—ENERGY REVENUE 
SHARING 
SEC. 20601. GULF OF MEXICO OUTER CONTINENTAL SHELF 
REVENUE. 
(a) DISTRIBUTION OF OUTER CONTINENTAL SHELF 
REVENUE TO GULF PRODUCING STATES.—Section 105 of 
the Gulf of Mexico Energy Security Act of 2006 (43 
U.S.C. 1331 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘50’’ and 
inserting ‘‘37.5’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘50’’ and inserting 
‘‘62.5’’; 
(ii) in subparagraph (A), by striking 
‘‘75’’ and inserting ‘‘80’’; and 
(iii) in subparagraph (B), by striking 
‘‘25’’ and inserting ‘‘20’’; and 
(2) by striking subsection (f) and inserting the 
following: 
‘‘(f) TREATMENT OF AMOUNTS.—Amounts disbursed 
to a Gulf producing State under this section shall be treat-
ed as revenue sharing and not as a Federal award or grant
189 
for the purposes of part 200 of title 2, Code of Federal 
Regulations.’’. 
(b) EXEMPTION OF CERTAIN PAYMENTS FROM SE-
QUESTRATION.— 
(1) IN GENERAL.—Section 255(g)(1)(A) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended by 
inserting after ‘‘Payments to Social Security Trust 
Funds (28–0404–0–1–651).’’ the following: 
‘‘Payments to States pursuant to section 
105(a)(2)(A) of the Gulf of Mexico Energy Security 
Act of 2006 (Public Law 109–432; 43 U.S.C. 1331 
note) (014–5535–0–2–302).’’. 
(2) APPLICABILITY.—The amendment made by 
this subsection shall apply to any sequestration 
order issued under the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 900 et 
seq.) on or after the date of enactment of this Act. 
SEC. 20602. PARITY IN OFFSHORE WIND REVENUE SHAR-
ING. 
(a) PAYMENTS AND REVENUES.—Section 8(p)(2) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(p)(2)) is amended— 
(1) in subparagraph (A), by striking ‘‘(A) The 
Secretary’’ and inserting the following:
190 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the Secretary’’; 
(2) in subparagraph (B), by striking ‘‘(B) The 
Secretary’’ and inserting the following: 
‘‘(B) DISPOSITION
OF
REVENUES
FOR 
PROJECTS LOCATED WITHIN 3 NAUTICAL MILES 
SEAWARD OF STATE SUBMERGED LAND.—The 
Secretary’’; and 
(3) by adding at the end the following: 
‘‘(C) DISPOSITION OF REVENUES FOR OFF-
SHORE WIND PROJECTS IN CERTAIN AREAS.— 
‘‘(i) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) COVERED OFFSHORE WIND 
PROJECT.—The term ‘covered off-
shore wind project’ means a wind 
powered electric generation project in 
a wind energy area on the outer Con-
tinental Shelf that is not wholly or 
partially located within an area sub-
ject to subparagraph (B). 
‘‘(II) 
ELIGIBLE
STATE.—The 
term ‘eligible State’ means a State a 
point on the coastline of which is lo-
cated within 75 miles of the geo-
191 
graphic center of a covered offshore 
wind project. 
‘‘(III) QUALIFIED OUTER CONTI-
NENTAL
SHELF
REVENUES.—The 
term 
‘qualified 
outer 
Continental 
Shelf revenues’ means all royalties, 
fees, rentals, bonuses, or other pay-
ments from covered offshore wind 
projects carried out pursuant to this 
subsection on or after the date of en-
actment of this subparagraph. 
‘‘(ii) REQUIREMENT.— 
‘‘(I) IN
GENERAL.—The Sec-
retary of the Treasury shall deposit— 
‘‘(aa) 12.5 percent of quali-
fied outer Continental Shelf reve-
nues in the general fund of the 
Treasury; 
‘‘(bb) 37.5 percent of quali-
fied outer Continental Shelf reve-
nues in the North American Wet-
lands Conservation Fund; and 
‘‘(cc) 50 percent of qualified 
outer Continental Shelf revenues 
in a special account in the Treas-
192 
ury from which the Secretary 
shall disburse to each eligible 
State an amount determined pur-
suant to subclause (II). 
‘‘(II) ALLOCATION.— 
‘‘(aa) IN
GENERAL.—Sub-
ject to item (bb), for each fiscal 
year beginning after the date of 
enactment of this subparagraph, 
the amount made available under 
subclause (I)(cc) shall be allo-
cated to each eligible State in 
amounts (based on a formula es-
tablished by the Secretary by 
regulation) that are inversely 
proportional to the respective dis-
tances between the point on the 
coastline of each eligible State 
that is closest to the geographic 
center of the applicable leased 
tract and the geographic center 
of the leased tract. 
‘‘(bb) 
MINIMUM
ALLOCA-
TION.—The amount allocated to 
an eligible State each fiscal year
193 
under item (aa) shall be at least 
10 percent of the amounts made 
available under subclause (I)(cc). 
‘‘(cc) PAYMENTS TO COAST-
AL POLITICAL SUBDIVISIONS.— 
‘‘(AA) IN
GENERAL.— 
The Secretary shall pay 20 
percent 
of 
the 
allocable 
share of each eligible State, 
as determined pursuant to 
item (aa), to the coastal po-
litical subdivisions of the eli-
gible State. 
‘‘(BB) ALLOCATION.— 
The amount paid by the 
Secretary to coastal political 
subdivisions under subitem 
(AA) shall be allocated to 
each coastal political sub-
division in accordance with 
subparagraphs (B) and (C) 
of section 31(b)(4) of this 
Act. 
‘‘(iii) TIMING.—The amounts required 
to be deposited under subclause (I) of