I 
111TH CONGRESS 
1ST SESSION H. R. 2120 
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 
APRIL 27, 2009 
Mrs. MYRICK introduced the following bill; which was referred to the Com-
mittee on Natural Resources, and in addition to the Committees on 
Science and Technology and the Judiciary, for a period to be subse-
quently 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. 
This Act may be cited as the ‘‘Deep Ocean Energy 
Resources Act of 2009’’. 
SEC. 2. POLICY. 
It is the policy of the United States that— 
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(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 
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 
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ment, and production of any mineral resources that 
might lie beneath them. 
SEC. 3. 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. 4. 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. 5. 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. 6. 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. 7. DETERMINATION OF ADJACENT ZONES AND PLAN-
NING 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. 8. 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. 
‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 
than July 1, 2011, 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 
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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 
Deep Ocean Energy Resources Act of 2009; 
‘‘(3) provide that natural gas leases shall con-
tain the same rights and obligations established for 
oil and gas leases, except as otherwise provided in 
the Deep Ocean Energy Resources Act of 2009; 
‘‘(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. 9. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
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(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.’’; 
(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 
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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.’’. 
(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. 
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‘‘(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) 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 
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of the enactment of the Deep Ocean Energy Resources 
Act of 2009. 
‘‘(s) 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). 
‘‘(t) 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. 
This fee shall apply from and after October 1, 2009, 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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(7) 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. 10. 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.— 
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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 
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 or States have 
a coastline point within 300 miles of any por-
tion of the leased tract, in which case the 
amount allocated for the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
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‘‘(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.— 
‘‘(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, 2008, partially or completely 
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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. 
‘‘(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. 
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‘‘(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 
6(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, 2008, from all leases located partially or com-
pletely beyond 100 miles of any coastline not in-
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: 
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‘‘(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 
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.— 
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‘‘(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 
‘‘(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 
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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 
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 
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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. 
‘‘(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 
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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 
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, 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— 
‘‘(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; 
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‘‘(G) alternative energy development, in-
cluding bio fuels, coal-to-liquids, oil shale, tar 
sands, geothermal, geopressure, wind, waves, 
currents, hydro, and other renewable energy; 
‘‘(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— 
‘‘(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-
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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 
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-
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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. 
‘‘(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. 
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‘‘(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. 
‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids, royalties, and conservation of re-
sources fees.’’. 
SEC. 11. RESERVATION OF LANDS AND RIGHTS. 
Section 12 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341) is amended— 
(1) in subsection (a) by adding at the end the 
following: ‘‘The President may partially or com-
pletely revise or revoke any prior withdrawal made 
by the President under the authority of this section. 
The President may not revise or revoke a withdrawal 
that is extended by a State under subsection (h), nor 
may the President withdraw from leasing any area 
for which a State failed to prohibit, or petition to 
prohibit, leasing under subsection (g). Further, in 
the area of the outer Continental Shelf more than 
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100 miles from any coastline, not more than 25 per-
cent of the acreage of any OCS Planning Area may 
be withdrawn from leasing under this section at any 
point in time. A withdrawal by the President may be 
for a term not to exceed 10 years. When considering 
potential uses of the outer Continental Shelf, to the 
maximum extent possible, the President shall accom-
modate competing interests and potential uses.’’; 
(2) by adding at the end the following: 
‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN 
AREAS OF THE OUTER CONTINENTAL SHELF.— 
‘‘(1) PROHIBITION AGAINST LEASING.— 
‘‘(A) UNAVAILABLE
FOR
LEASING
WITH-
OUT
STATE
REQUEST.—Except as otherwise 
provided in this subsection, from and after en-
actment of the Deep Ocean Energy Resources 
Act of 2009, the Secretary shall not offer for 
leasing for oil and gas, or natural gas, any area 
within 50 miles of the coastline that was with-
drawn from disposition by leasing in the Atlan-
tic OCS Region or the Pacific OCS Region, or 
the Gulf of Mexico OCS Region Eastern Plan-
ning Area, as depicted on the maps referred to 
in this subparagraph, under the ‘Memorandum 
on Withdrawal of Certain Areas of the United 
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States Outer Continental Shelf from Leasing 
Disposition’, 34 Weekly Comp. Pres. Doc. 
1111, dated June 12, 1998, or any area within 
50 miles of the coastline not withdrawn under 
that Memorandum that is included within the 
Gulf of Mexico OCS Region Eastern Planning 
Area as indicated on the map entitled ‘Gulf of 
Mexico OCS Region State Adjacent Zones and 
OCS Planning Areas’ or the Florida Straits 
Planning Area as indicated on the map entitled 
‘Atlantic OCS Region State Adjacent Zones and 
OCS Planning Areas’, both of which are dated 
September 2005 and on file in the Office of the 
Director, Minerals Management Service. 
‘‘(B) AREAS BETWEEN 50 AND 100 MILES 
FROM
THE
COASTLINE.—Unless an Adjacent 
State petitions under subsection (h) within one 
year after the date of the enactment of the 
Deep Ocean Energy Resources Act of 2009 for 
natural gas leasing or by June 30, 2011, for oil 
and gas leasing, the Secretary shall offer for 
leasing any area more than 50 miles but less 
than 100 miles from the coastline that was 
withdrawn from disposition by leasing in the 
Atlantic OCS Region, the Pacific OCS Region, 
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or the Gulf of Mexico OCS Region Eastern 
Planning Area, as depicted on the maps re-
ferred to in this subparagraph, under the 
‘Memorandum on Withdrawal of Certain Areas 
of the United States Outer Continental Shelf 
from Leasing Disposition’, 34 Weekly Comp. 
Pres. Doc. 1111, dated June 12, 1998, or any 
area more than 50 miles but less than 100 
miles of the coastline not withdrawn under that 
Memorandum that is included within the Gulf 
of Mexico OCS Region Eastern Planning Area 
as indicated on the map entitled ‘Gulf of Mexico 
OCS Region State Adjacent Zones and OCS 
Planning Areas’ or within the Florida Straits 
Planning Area as indicated on the map entitled 
‘Atlantic OCS Region State Adjacent Zones and 
OCS Planning Areas’, both of which are dated 
September 2005 and on file in the Office of the 
Director, Minerals Management Service. 
‘‘(2) REVOCATION OF WITHDRAWAL.—The pro-
visions of the ‘Memorandum on Withdrawal of Cer-
tain Areas of the United States Outer Continental 
Shelf from Leasing Disposition’, 34 Weekly Comp. 
Pres. Doc. 1111, dated June 12, 1998, are hereby 
revoked and are no longer in effect. Any tract only 
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partially added to the Gulf of Mexico OCS Region 
Central Planning Area by this Act shall be eligible 
for leasing of the part of such tract that is included 
within the Gulf of Mexico OCS Region Central Plan-
ning Area, and the remainder of such tract that lies 
outside of the Gulf of Mexico OCS Region Central 
Planning Area may be developed and produced by 
the lessee of such partial tract using extended reach 
or similar drilling from a location on a leased area. 
Further, any area in the OCS withdrawn from leas-
ing may be leased, and thereafter developed and pro-
duced by the lessee using extended reach or similar 
drilling from a location on a leased area located in 
an area available for leasing. 
‘‘(3) PETITION FOR LEASING.— 
‘‘(A) IN GENERAL.—The Governor of the 
State, upon concurrence of its legislature, may 
submit to the Secretary a petition requesting 
that the Secretary make available any area that 
is within the State’s Adjacent Zone, included 
within the provisions of paragraph (1), and that 
(i) is greater than 25 miles from any point on 
the coastline of a Neighboring State for the 
conduct of offshore leasing, pre-leasing, and re-
lated activities with respect to natural gas leas-
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ing; or (ii) is greater than 50 miles from any 
point on the coastline of a Neighboring State 
for the conduct of offshore leasing, pre-leasing, 
and related activities with respect to oil and gas 
leasing. The Adjacent State may also petition 
for leasing any other area within its Adjacent 
Zone if leasing is allowed in the similar area of 
the Adjacent Zone of the applicable Neigh-
boring State, or if not allowed, if the Neigh-
boring State, acting through its Governor, ex-
presses its concurrence with the petition. The 
Secretary shall only consider such a petition 
upon making a finding that leasing is allowed 
in the similar area of the Adjacent Zone of the 
applicable Neighboring State or upon receipt of 
the concurrence of the Neighboring State. The 
date of receipt by the Secretary of such concur-
rence by the Neighboring State shall constitute 
the date of receipt of the petition for that area 
for which the concurrence applies. 
‘‘(B) LIMITATIONS
ON
LEASING.—In its 
petition, a State with an Adjacent Zone that 
contains leased tracts may condition new leas-
ing for oil and gas, or natural gas for tracts 
within 25 miles of the coastline by— 
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‘‘(i) requiring a net reduction in the 
number of production platforms; 
‘‘(ii) requiring a net increase in the 
average distance of production platforms 
from the coastline; 
‘‘(iii) limiting permanent surface occu-
pancy on new leases to areas that are more 
than 10 miles from the coastline; 
‘‘(iv) limiting some tracts to being 
produced from shore or from platforms lo-
cated on other tracts; or 
‘‘(v) other conditions that the Adja-
cent State may deem appropriate as long 
as the Secretary does not determine that 
production is made economically or tech-
nically impracticable or otherwise impos-
sible. 
‘‘(C) ACTION BY SECRETARY.—Not later 
than 90 days after receipt of a petition under 
subparagraph (A), the Secretary shall approve 
the petition, unless the Secretary determines 
that leasing the area would probably cause seri-
ous harm or damage to the marine resources of 
the State’s Adjacent Zone. Prior to approving 
the petition, the Secretary shall complete an en-
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vironmental assessment that documents the an-
ticipated environmental effects of leasing in the 
area included within the scope of the petition. 
‘‘(D) FAILURE TO ACT.—If the Secretary 
fails to approve or deny a petition in accordance 
with subparagraph (C) the petition shall be con-
sidered to be approved 90 days after receipt of 
the petition. 
‘‘(E) AMENDMENT OF THE 5-YEAR LEAS-
ING
PROGRAM.—Notwithstanding section 18, 
within 180 days of the approval of a petition 
under subparagraph (C) or (D), after the expi-
ration of the time limits in paragraph (1)(B), 
and within 180 days after the enactment of the 
Deep Ocean Energy Resources Act of 2009 for 
the areas made available for leasing under 
paragraph (2), the Secretary shall amend the 
current 5-Year Outer Continental Shelf Oil and 
Gas Leasing Program to include a lease sale or 
sales for at least 75 percent of the associated 
areas, unless there are, from the date of ap-
proval, expiration of such time limits, or enact-
ment, as applicable, fewer than 12 months re-
maining in the current 5-Year Leasing Program 
in which case the Secretary shall include the as-
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sociated areas within lease sales under the next 
5-Year Leasing Program. For purposes of 
amending the 5-Year Program in accordance 
with this section, further consultations with 
States shall not be required. For purposes of 
this section, an environmental assessment per-
formed under the provisions of the National 
Environmental Policy Act of 1969 to assess the 
effects of approving the petition shall be suffi-
cient to amend the 5-Year Leasing Program. 
‘‘(h) OPTION
TO
EXTEND
WITHDRAWAL
FROM 
LEASING WITHIN CERTAIN AREAS OF THE OUTER CON-
TINENTAL SHELF.—A State, through its Governor and 
upon the concurrence of its legislature, may extend for a 
period of time of up to 5 years for each extension the with-
drawal from leasing for all or part of any area within the 
State’s Adjacent Zone located more than 50 miles, but less 
than 100 miles, from the coastline that is subject to sub-
section (g)(1)(B). A State may extend multiple times for 
any particular area but not more than once per calendar 
year for any particular area. A State must prepare sepa-
rate extensions, with separate votes by its legislature, for 
oil and gas leasing and for natural gas leasing. An exten-
sion by a State may affect some areas to be withdrawn 
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from all leasing and some areas to be withdrawn only from 
one type of leasing. 
‘‘(i) EFFECT OF OTHER LAWS.—Adoption by any 
Adjacent State of any constitutional provision, or enact-
ment of any State statute, that has the effect, as deter-
mined by the Secretary, of restricting either the Governor 
or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automati-
cally (1) prohibit any sharing of OCS Receipts under this 
Act with the Adjacent State, and its coastal political sub-
divisions, and (2) prohibit the Adjacent State from exer-
cising any authority under subsection (h), for the duration 
of the restriction. The Secretary shall make the determina-
tion of the existence of such restricting constitutional pro-
vision or State statute within 30 days of a petition by any 
outer Continental Shelf lessee or coastal State. 
‘‘(j) 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, 2023, 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 
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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 
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. 12. 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 
or natural gas leasing at least 75 percent of the 
available unleased acreage within each OCS Plan-
ning Area. Available unleased acreage is that portion 
of the outer Continental Shelf that is not under 
lease at the time of the proposed lease sale, and has 
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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-
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 or natural 
gas leasing. If the Secretaries are not able to resolve all 
such conflicts, any unresolved issues shall be elevated to 
the President for resolution. 
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‘‘(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-
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. 
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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 
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 
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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. 13. 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 
(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 or natural 
gas leasing, except that such a pipeline may be approved, 
without such Adjacent State’s concurrence, to pass 
through such Adjacent Zone if at least 50 percent of the 
production projected to be carried by the pipeline within 
its first 10 years of operation is from areas of the Adja-
cent State’s Adjacent Zone. 
‘‘(2) No State may prohibit the construction within 
its Adjacent Zone or its State waters of a natural gas pipe-
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(1) IN
GENERAL.—There is established the 
Federal Energy Natural Resources Enhancement 
Program. 
(2) PAYMENT
TO
SECRETARY
OF
THE
INTE-
RIOR.—Beginning with fiscal year 2010, and in each 
fiscal year thereafter, one-third of amounts appro-
priated for the Enhancement Program shall be avail-
able to the Secretary of the Interior for use for the 
purposes described in subsection (b)(3). 
(3) PAYMENT TO STATES.— 
(A) IN GENERAL.—Beginning with fiscal 
year 2010, and in each fiscal year thereafter, 
two-thirds of amounts appropriated for the En-
hancement Program shall be available to the 
States for use for the purposes described in 
(b)(3). 
(B) USE OF PAYMENTS BY STATE.—Each 
State shall use the payments made under this 
paragraph only for carrying out projects and 
programs for the purposes described in (b)(3). 
(C) ENCOURAGE USE OF PRIVATE FUNDS 
BY STATE.—Each State shall use the payments 
made under this paragraph to leverage private 
funds for carrying out projects for the purposes 
described in (b)(3). 
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