I 
110TH CONGRESS 
2D SESSION 
H. R. 6108 
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 
MAY 21, 2008 
Mrs. MYRICK (for herself, Mr. CULBERSON, Mrs. EMERSON, Mr. CANTOR, Mr. 
REGULA, Mr. TERRY, Mr. SOUDER, Mr. BISHOP of Utah, Mr. KINGSTON, 
Mr. LINDER, and Mrs. DRAKE) introduced the following bill; which was 
referred to the Committee on Natural Resources, and in addition to the 
Committees on Science and Technology and the Judiciary, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation 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 2008’’. 
SEC. 2. POLICY. 
It is the policy of the United States that— 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
(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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
or not mineral leasing should occur in the outer 
Continental Shelf within their Adjacent Zones; 
(5) it is not reasonably foreseeable that explo-
ration of a leased tract located more than 25 miles 
seaward of the coastline, development and produc-
tion of a natural gas discovery located more than 25 
miles seaward of the coastline, or development and 
production of an oil discovery located more than 50 
miles seaward of the coastline will adversely affect 
resources near the coastline; 
(6) transportation of oil from a leased tract 
might reasonably be foreseen, under limited cir-
cumstances, to have the potential to adversely affect 
resources near the coastline if the oil is within 50 
miles of the coastline, but such potential to adversely 
affect such resources is likely no greater, and prob-
ably less, than the potential impacts from tanker 
transportation because tanker spills usually involve 
large releases of oil over a brief period of time; and 
(7) among other bodies of inland waters, the 
Great Lakes, Long Island Sound, Delaware Bay, 
Chesapeake Bay, Albemarle Sound, San Francisco 
Bay, and Puget Sound are not part of the outer 
Continental Shelf, and are not subject to leasing by 
the Federal Government for the exploration, develop-
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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— 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
(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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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; 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 2008. 
‘‘(l) NATURAL GAS LEASE REGULATIONS.—Not later 
than July 1, 2010, the Secretary shall publish a final regu-
lation that shall— 
‘‘(1) establish procedures for entering into nat-
ural gas leases; 
‘‘(2) ensure that natural gas leases are only 
available for tracts on the outer Continental Shelf 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 2008; 
‘‘(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 2008; 
‘‘(4) provide that, in reviewing the adequacy of 
bids for natural gas leases, the value of any crude 
oil estimated to be contained within any tract shall 
be excluded; 
‘‘(5) provide that any crude oil produced from 
a well and reinjected into the leased tract shall not 
be subject to payment of royalty, and that the Sec-
retary shall consider, in setting the royalty rates for 
a natural gas lease, the additional cost to the lessee 
of not producing any crude oil; and 
‘‘(6) provide that any Federal law that applies 
to an oil and gas lease on the outer Continental 
Shelf shall apply to a natural gas lease unless other-
wise clearly inapplicable.’’. 
SEC. 9. GRANT OF LEASES BY SECRETARY. 
Section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) is amended— 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
(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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 2008 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. 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
of the enactment of the Deep Ocean Energy Resources 
Act of 2008. 
‘‘(s) ROYALTY SUSPENSION PROVISIONS.—After the 
date of the enactment of the Deep Ocean Energy Re-
sources Act of 2008, 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 2008, the Secretary 
by regulation shall establish a conservation of resources 
fee for nonproducing leases that will apply to new and ex-
isting leases which shall be set at $3.75 per acre per year. 
This fee shall apply from and after October 1, 2008, and 
shall be treated as offsetting receipts.’’; 
(5) by striking subsection (a)(3)(A) and redes-
ignating the subsequent subparagraphs as subpara-
graphs (A) and (B), respectively; 
(6) in subsection (a)(3)(A) (as so redesignated) 
by striking ‘‘In the Western’’ and all that follows 
through ‘‘the Secretary’’ the first place it appears 
and inserting ‘‘The Secretary’’; and 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
(7) effective October 1, 2008, 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.— 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(A) Beginning October 1, 2008, 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, 2008, 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. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2008, located in 
the Alaska OCS Region completely beyond 
4 marine leagues from any coastline and 
completely within 100 miles of the coast-
line. 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(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 2009, 5 percent. 
‘‘(ii) For fiscal year 2010, 8 percent. 
‘‘(iii) For fiscal year 2011, 11 per-
cent. 
‘‘(iv) For fiscal year 2012, 14 percent. 
‘‘(v) For fiscal year 2013, 17 percent. 
‘‘(vi) For fiscal year 2014, 20 percent. 
‘‘(vii) For fiscal year 2015, 23 per-
cent. 
‘‘(viii) For fiscal year 2016, 26 per-
cent. 
‘‘(ix) For fiscal year 2017, 29 percent. 
‘‘(x) For fiscal year 2018, 32 percent. 
‘‘(xi) For fiscal year 2019, 35 percent. 
‘‘(xii) For fiscal year 2020 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 2008. 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2008, 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). 
‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 
4 MARINE LEAGUES OF ANY COASTLINE.— 
‘‘(A) AREAS
DESCRIBED
IN
PARAGRAPH 
(2).—Beginning October 1, 2008, and con-
tinuing through September 30, 2010, the Sec-
retary shall share 25 percent of OCS Receipts 
derived from all leases located within 4 marine 
leagues from any coastline within areas de-
scribed in paragraph (2). For each fiscal year 
after September 30, 2010, 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, 2008, the 
Secretary shall share 75 percent of OCS re-
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(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, 2008, 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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(x) For fiscal year 2018, 32 percent. 
‘‘(xi) For fiscal year 2019, 35 percent. 
‘‘(xii) For fiscal year 2020 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 2008. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2008, 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: 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(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.— 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
‘‘(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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS
HR 6108 IH 
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 
VerDate Aug 31 2005 
01:22 May 29, 2008
Jkt 069200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H6108.IH
H6108
wwoods2 on PRODPC68 with BILLS