I 
112TH CONGRESS 
1ST SESSION H. R. 3404 
To establish in the Department of the Interior an Under Secretary for 
Energy, Lands, and Minerals and a Bureau of Ocean Energy, an Ocean 
Energy Safety Service, and an Office of Natural Resources Revenue, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 14, 2011 
Mr. HASTINGS of Washington introduced the following bill; which was referred 
to the Committee on Natural Resources 
A BILL 
To establish in the Department of the Interior an Under 
Secretary for Energy, Lands, and Minerals and a Bureau 
of Ocean Energy, an Ocean Energy Safety Service, and 
an Office of Natural Resources Revenue, 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. ESTABLISHMENT OF UNDER SECRETARY FOR 
ENERGY, LANDS, AND MINERALS AND ASSIST-
ANT SECRETARY OF OCEAN ENERGY AND 
SAFETY. 
There shall be in the Department of the Interior— 
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(1) an Under Secretary for Energy, Lands, and 
Minerals, who shall— 
(A) be appointed by the President, by and 
with the advise and consent of the Senate; 
(B) report to the Secretary of the Interior; 
(C) be paid at the rate payable for level III 
of the Executive Schedule; and 
(D) be responsible for— 
(i) the safe and responsible develop-
ment of our energy and mineral resources 
on Federal lands in appropriate accordance 
with United States energy demands; and 
(ii) ensuring multiple-use missions of 
the Department of the Interior that pro-
mote the safe and sustained development 
of energy and minerals resources on public 
lands (as that term is defined in the Fed-
eral Land Policy and Management Act of 
1976 (43 U.S.C. 1701 et seq.)); 
(2) an Assistant Secretary of Ocean Energy 
and Safety, who shall— 
(A) be appointed by the President, by and 
with the advise and consent of the Senate; 
(B) report to the Under Secretary for En-
ergy, Lands, and Minerals; 
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(C) be paid at the rate payable for level IV 
of the Executive Schedule; and 
(D) be responsible for ensuring safe and 
efficient development of energy and minerals on 
the Outer Continental Shelf of the United 
States; and 
(3) an Assistant Secretary of Land and Min-
erals Management, who shall— 
(A) be appointed by the President, by and 
with the advise and consent of the Senate; 
(B) report to the Under Secretary for En-
ergy, Lands, and Minerals; 
(C) be paid at the rate payable for level IV 
of the Executive Schedule; and 
(D) be responsible for ensuring safe and 
efficient development of energy and minerals on 
public lands and other Federal onshore lands 
under the jurisdiction of the Department of the 
Interior, including implementation of the Min-
eral Leasing Act (30 U.S.C. 181 et seq.) and 
the Surface Mining Control and Reclamation 
Act (30 U.S.C. 1201 et seq.) and administra-
tion of the Office of Surface Mining. 
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SEC. 2. BUREAU OF OCEAN ENERGY. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Interior a Bureau of Ocean Energy (re-
ferred to in this section as the ‘‘Bureau’’), which shall— 
(1) be headed by a Director of Ocean Energy 
(referred to in this section as the ‘‘Director’’); and 
(2) be administered under the direction of the 
Assistant Secretary of Ocean Energy and Safety. 
(b) DIRECTOR.— 
(1) APPOINTMENT.—The Director shall be ap-
pointed by the Secretary of the Interior. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior shall carry out through the Bureau all func-
tions, powers, and duties vested in the Secretary re-
lating to the administration of a comprehensive pro-
gram of offshore mineral and renewable energy re-
sources management. 
(2) SPECIFIC
AUTHORITIES.—The Director 
shall promulgate and implement regulations— 
(A) for the proper issuance of leases for 
the exploration, development, and production of 
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nonrenewable and renewable energy and min-
eral resources on the Outer Continental Shelf; 
(B) relating to resource identification, ac-
cess, evaluation, and utilization; 
(C) for development of leasing plans, lease 
sales, and issuance of leases for such resources; 
and 
(D) regarding issuance of environmental 
impact statements related to leasing and post 
leasing activities including exploration, develop-
ment, and production, and the use of third 
party contracting for necessary environmental 
analysis for the development of such resources. 
(3) LIMITATION.—The Secretary shall not carry 
out through the Bureau any function, power, or duty 
that is— 
(A) required by section 3 to be carried out 
through the Ocean Energy Safety Service; or 
(B) required by section 4 to be carried out 
through the Office of Natural Resources Rev-
enue. 
(d) RESPONSIBILITIES
OF
LAND
MANAGEMENT 
AGENCIES.—Nothing in this section shall affect the au-
thorities of the Bureau of Land Management under the 
Federal Land Policy and Management Act of 1976 (43 
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U.S.C. 1701 et seq.) or of the Forest Service under the 
National Forest Management Act of 1976 (Public Law 
94–588). 
SEC. 3. OCEAN ENERGY SAFETY SERVICE. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Interior an Ocean Energy Safety Serv-
ice (referred to in this section as the ‘‘Service’’), which 
shall— 
(1) be headed by a Director of Energy Safety 
(referred to in this section as the ‘‘Director’’); and 
(2) be administered under the direction of the 
Assistant Secretary of Ocean Energy and Safety. 
(b) DIRECTOR.— 
(1) APPOINTMENT.—The Director shall be ap-
pointed by the Secretary of the Interior. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior shall carry out through the Service all functions, 
powers, and duties vested in the Secretary relating 
to the administration of safety and environmental 
enforcement activities related to offshore mineral 
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and renewable energy resources on the Outer Conti-
nental Shelf pursuant to the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) including the 
authority to develop, promulgate, and enforce regu-
lations to ensure the safe and sound exploration, de-
velopment, and production of mineral and renewable 
energy resources on the Outer Continental Shelf in 
a timely fashion. 
(2) SPECIFIC
AUTHORITIES.—The Director 
shall be responsible for all safety activities related to 
exploration and development of renewable and min-
eral resources on the Outer Continental Shelf, in-
cluding— 
(A) exploration, development, production, 
and ongoing inspections of infrastructure; 
(B) the suspending or prohibiting, on a 
temporary basis, any operation or activity, in-
cluding production under leases held on the 
Outer Continental Shelf, in accordance with 
section 5(a)(1) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1334(a)(1)); 
(C) cancelling any lease, permit, or right- 
of-way on the Outer Continental Shelf, in ac-
cordance with section 5(a)(2) of the Outer Con-
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tinental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1334(a)(2)); 
(D) compelling compliance with applicable 
Federal laws and regulations relating to worker 
safety and other matters; 
(E) requiring comprehensive safety and en-
vironmental management programs for persons 
engaged in activities connected with the explo-
ration, development, and production of mineral 
or renewable energy resources; 
(F) developing and implementing regula-
tions for Federal employees to carry out any in-
spection or investigation to ascertain compli-
ance with applicable regulations, including 
health, safety, or environmental regulations; 
(G) implementing the Offshore Technology 
Research and Risk Assessment Program under 
section 21 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1347); 
(H) summoning witnesses and directing 
the production of evidence; 
(I) levying fines and penalties and disquali-
fying operators; 
(J) carrying out any safety, response, and 
removal preparedness functions; and 
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(K) the processing of permits, exploration 
plans, development plans. 
(d) EMPLOYEES.— 
(1) IN GENERAL.—The Secretary shall ensure 
that the inspection force of the Bureau consists of 
qualified, trained employees who meet qualification 
requirements and adhere to the highest professional 
and ethical standards. 
(2) QUALIFICATIONS.—The qualification re-
quirements referred to in paragraph (1)— 
(A) shall be determined by the Secretary, 
subject to subparagraph (B); and 
(B) shall include— 
(i) three years of practical experience 
in oil and gas exploration, development, or 
production; or 
(ii) a degree in an appropriate field of 
engineering from an accredited institution 
of higher learning. 
(3) ASSIGNMENT.—In assigning oil and gas in-
spectors to the inspection and investigation of indi-
vidual operations, the Secretary shall give due con-
sideration to the extent possible to their previous ex-
perience in the particular type of oil and gas oper-
ation in which such inspections are to be made. 
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(4) BACKGROUND CHECKS.—The Director shall 
require that an individual to be hired as an inspec-
tion officer undergo an employment investigation 
(including a criminal history record check). 
(5) LANGUAGE
REQUIREMENTS.—Individuals 
hired as inspectors must be able to read, speak, and 
write English well enough to— 
(A) carry out written and oral instructions 
regarding the proper performance of inspection 
duties; and 
(B) write inspection reports and state-
ments and log entries in the English language. 
(6) VETERANS
PREFERENCE.—The Director 
shall provide a preference for the hiring of an indi-
vidual as a inspection officer if the individual is a 
member or former member of the armed forces and 
is entitled, under statute, to retired, retirement, or 
retainer pay on account of service as a member of 
the armed forces. 
(7) ANNUAL PROFICIENCY REVIEW.— 
(A) ANNUAL PROFICIENCY REVIEW.—The 
Director shall provide that an annual evaluation 
of each individual assigned inspection duties is 
conducted and documented. 
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(B) CONTINUATION OF EMPLOYMENT.—An 
individual employed as an inspector may not 
continue to be employed in that capacity unless 
the evaluation demonstrates that the indi-
vidual— 
(i) continues to meet all qualifications 
and standards; 
(ii) has a satisfactory record of per-
formance and attention to duty based on 
the standards and requirements in the in-
spection program; and 
(iii) demonstrates the current knowl-
edge and skills necessary to courteously, 
vigilantly, and effectively perform Inspec-
tion functions. 
(8) LIMITATION ON RIGHT TO STRIKE.—Any 
individual that conducts permitting or inspections 
under this section may not participate in a strike, or 
assert the right to strike. 
(9) PERSONNEL AUTHORITY.—Notwithstanding 
any other provision of law, the Director may employ, 
appoint, discipline and terminate for cause, and fix 
the compensation, terms, and conditions of employ-
ment of Federal service for individuals as the em-
ployees of the Service in order to restore and main-
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tain the trust of the people of the United States in 
the accountability of the management of our Na-
tion’s energy safety program. 
(10) TRAINING ACADEMY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish and maintain a National Offshore En-
ergy Health and Safety Academy (referred to in 
this paragraph as the ‘‘Academy’’) as an agency 
of the Ocean Energy Safety Service. 
(B) FUNCTIONS OF ACADEMY.—The Sec-
retary, through the Academy, shall be respon-
sible for— 
(i) the initial and continued training 
of both newly hired and experienced off-
shore oil and gas inspectors in all aspects 
of health, safety, environmental, and oper-
ational inspections; 
(ii) the training of technical support 
personnel of the Bureau; 
(iii) any other training programs for 
offshore oil and gas inspectors, Bureau 
personnel, Department personnel, or other 
persons as the Secretary shall designate; 
and 
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(iv) certification of the successful 
completion of training programs for newly 
hired and experienced offshore oil and gas 
inspectors. 
(C) COOPERATIVE AGREEMENTS.— 
(i) IN GENERAL.—In performing func-
tions under this paragraph, and subject to 
clause (ii), the Secretary may enter into 
cooperative educational and training agree-
ments with educational institutions, related 
Federal academies, other Federal agencies, 
State governments, safety training firms, 
and oil and gas operators and related in-
dustries. 
(ii) TRAINING
REQUIREMENT.—Such 
training shall be conducted by the Acad-
emy in accordance with curriculum needs 
and assignment of instructional personnel 
established by the Secretary. 
(11) USE
OF
DEPARTMENT
PERSONNEL.—In 
performing functions under this subsection, the Sec-
retary shall use, to the extent practicable, the facili-
ties and personnel of the Department of the Interior. 
The Secretary may appoint or assign to the Acad-
emy such officers and employees as the Secretary 
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considers necessary for the performance of the du-
ties and functions of the Academy. 
(12) ADDITIONAL TRAINING PROGRAMS.— 
(A) IN
GENERAL.—The Secretary shall 
work with appropriate educational institutions, 
operators, and representatives of oil and gas 
workers to develop and maintain adequate pro-
grams with educational institutions and oil and 
gas operators that are designed— 
(i) to enable persons to qualify for po-
sitions in the administration of this Act; 
and 
(ii) to provide for the continuing edu-
cation of inspectors or other appropriate 
Department of the Interior personnel. 
(B) FINANCIAL
AND
TECHNICAL
ASSIST-
ANCE.—The Secretary may provide financial 
and technical assistance to educational institu-
tions in carrying out this paragraph. 
(e) LIMITATION.—The Secretary shall not carry out 
through the Service any function, power, or duty that is— 
(1) required by section 2 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 4 to be carried out 
through the Office of Natural Resources Revenue. 
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SEC. 4. OFFICE OF NATURAL RESOURCES REVENUE. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Interior an Office of Natural Resources 
Revenue (referred to in this section as the ‘‘Office’’) to 
be headed by a Director of Natural Resources Revenue 
(referred to in this section as the ‘‘Director’’). 
(b) APPOINTMENT AND COMPENSATION.— 
(1) IN GENERAL.—The Director shall be ap-
pointed by the Secretary of the Interior. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior shall carry out, through the Office, all functions, 
powers, and duties vested in the Secretary and relat-
ing to the administration of offshore royalty and rev-
enue management functions. 
(2) SPECIFIC
AUTHORITIES.—The Secretary 
shall carry out, through the Office, all functions, 
powers, and duties previously assigned to the Min-
erals Management Service (including the authority 
to develop, promulgate, and enforce regulations) re-
garding offshore royalty and revenue collection; roy-
alty and revenue distribution; auditing and compli-
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ance; investigation and enforcement of royalty and 
revenue regulations; and asset management for on-
shore and offshore activities. 
(d) LIMITATION.—The Secretary shall not carry out 
through the Office any function, power, or duty that is— 
(1) required by section 2 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 3 to be carried out 
through the Ocean Energy Safety Service. 
SEC. 5. ETHICS AND DRUG TESTING. 
(a) CERTIFICATION.—The Secretary of the Interior 
shall certify annually that all Department of the Interior 
officers and employees having regular, direct contact with 
lessees, contractors, concessionaires, and other businesses 
interested before the Government as a function of their 
official duties, or conducting investigations, issuing per-
mits, or responsible for oversight of energy programs, are 
in full compliance with all Federal employee ethics laws 
and regulations under the Ethics in Government Act of 
1978 (5 U.S.C. App.) and part 2635 of title 5, Code of 
Federal Regulations, and all guidance issued under sub-
section (c). 
(b) DRUG TESTING.—The Secretary shall conduct a 
random drug testing program of all Department of the 
Interior personnel referred to in subsection (a). 
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(c) GUIDANCE.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall issue 
supplementary ethics and drug testing guidance for the 
employees for which certification is required under sub-
section (a). The Secretary shall update the supplementary 
ethics guidance not less than once every 3 years there-
after. 
SEC. 6. ABOLISHMENT OF MINERALS MANAGEMENT SERV-
ICE. 
(a) ABOLISHMENT.—The Minerals Management 
Service is abolished. 
(b) COMPLETED ADMINISTRATIVE ACTIONS.— 
(1) IN
GENERAL.—Completed administrative 
actions of the Minerals Management Service shall 
not be affected by the enactment of this Act, but 
shall continue in effect according to their terms until 
amended, modified, superseded, terminated, set 
aside, or revoked in accordance with law by an offi-
cer of the United States or a court of competent ju-
risdiction, or by operation of law. 
(2) COMPLETED ADMINISTRATIVE ACTION DE-
FINED.—For purposes of paragraph (1), the term 
‘‘completed administrative action’’ includes orders, 
determinations, 
memoranda 
of 
understanding, 
memoranda of agreements, rules, regulations, per-
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sonnel actions, permits, agreements, grants, con-
tracts, certificates, licenses, registrations, and privi-
leges. 
(c) PENDING PROCEEDINGS.—Subject to the author-
ity of the Secretary of the Interior and the officers of the 
Department of the Interior under this Act— 
(1) pending proceedings in the Minerals Man-
agement Service, including notices of proposed rule-
making, and applications for licenses, permits, cer-
tificates, grants, and financial assistance, shall con-
tinue, notwithstanding the enactment of this Act or 
the vesting of functions of the Service in another 
agency, unless discontinued or modified under the 
same terms and conditions and to the same extent 
that such discontinuance or modification could have 
occurred if this Act had not been enacted; and 
(2) orders issued in such proceedings, and ap-
peals therefrom, and payments made pursuant to 
such orders, shall issue in the same manner and on 
the same terms as if this Act had not been enacted, 
and any such orders shall continue in effect until 
amended, modified, superseded, terminated, set 
aside, or revoked by an officer of the United States 
or a court of competent jurisdiction, or by operation 
of law. 
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(d) PENDING CIVIL ACTIONS.—Subject to the au-
thority of the Secretary of the Interior or any officer of 
the Department of the Interior under this Act, pending 
civil actions shall continue notwithstanding the enactment 
of this Act, and in such civil actions, proceedings shall be 
had, appeals taken, and judgments rendered and enforced 
in the same manner and with the same effect as if such 
enactment had not occurred. 
(e) REFERENCES.—References relating to the Min-
erals Management Service in statutes, Executive orders, 
rules, regulations, directives, or delegations of authority 
that precede the effective date of this Act are deemed to 
refer, as appropriate, to the Department, to its officers, 
employees, or agents, or to its corresponding organiza-
tional units or functions. Statutory reporting requirements 
that applied in relation to the Minerals Management Serv-
ice immediately before the effective date of this Act shall 
continue to apply. 
SEC. 
7. 
CONFORMING 
AMENDMENTS 
TO 
EXECUTIVE 
SCHEDULE PAY RATES. 
(a) UNDER SECRETARY FOR ENERGY, LANDS, AND 
MINERALS.—Section 5314 of title 5, United States Code, 
is amended by inserting after the item relating to ‘‘Under 
Secretaries of the Treasury (3)’’ the following: 
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‘‘Under Secretary for Energy, Lands, and Min-
erals, Department of the Interior.’’. 
(b) ASSISTANT SECRETARIES.—Section 5315 of title 
5, United States Code, is amended by striking ‘‘Assistant 
Secretaries, Department of the Interior (6)’’ and inserting 
the following: 
‘‘Assistant Secretaries, Department of the Inte-
rior (7).’’. 
(c) DIRECTORS.—Section 5316 of title 5, United 
States Code, is amended by striking ‘‘Director, Bureau of 
Mines, Department of the Interior.’’ and inserting the fol-
lowing new items: 
‘‘Director, Bureau of Ocean Energy, Depart-
ment of the Interior. 
‘‘Director, Ocean Energy Safety Service, De-
partment of the Interior. 
‘‘Director, Office of Natural Resources Rev-
enue, Department of the Interior.’’. 
SEC. 8. OUTER CONTINENTAL SHELF ENERGY SAFETY AD-
VISORY BOARD. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
shall establish, under the Federal Advisory Committee 
Act, an Outer Continental Shelf Energy Safety Advisory 
Board (referred to in this section as the ‘‘Board’’)— 
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(1) to provide the Secretary and the Directors 
established by this Act with independent scientific 
and technical advice on safe, responsible, and timely 
mineral and renewable energy exploration, develop-
ment, and production activities; and 
(2) to review operations of the National Off-
shore Energy Health and Safety Academy estab-
lished under section 3(d), including submitting to 
the Secretary recommendations of curriculum to en-
sure training scientific and technical advancements. 
(b) MEMBERSHIP.— 
(1) SIZE.—The Board shall consist of not more 
than 11 members, who— 
(A) shall be appointed by the Secretary 
based on their expertise in oil and gas drilling, 
well design, operations, well containment and 
oil spill response; and 
(B) must have significant scientific, engi-
neering, management, and other credentials and 
a history of working in the field related to safe 
energy exploration, development, and produc-
tion activities. 
(2) CONSULTATION
AND
NOMINATIONS.—The 
Secretary shall consult with the National Academy 
of Sciences and the National Academy of Engineer-
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