(1) Preserving the ability of the Armed Forces 
of the United States to maintain an optimum state 
of readiness through their continued use of the 
Outer Continental Shelf. 
(2) Allowing effective exploration, development, 
and production of our Nation’s oil, gas, and renew-
able energy resources. 
(d) DEFINITIONS.—In this section: 
(1) LEASE SALE 220.—The term ‘‘Lease Sale 
220’’ means such lease sale referred to in the Re-
quest for Comments on the Draft Proposed 5-Year 
Outer Continental Shelf (OCS) Oil and Gas Leasing 
Program for 2010–2015 and Notice of Intent To 
Prepare an Environmental Impact Statement (EIS) 
for the Proposed 5-Year Program published January 
21, 2009 (74 Fed. Reg. 3631). 
(2) VIRGINIA LEASE SALE PLANNING AREA.— 
The term ‘‘Virginia lease sale planning area’’ means 
the area of the outer Continental Shelf (as that term 
is defined in the Outer Continental Shelf Lands Act 
(33 U.S.C. 1331 et seq.)) that is bounded by— 
(A) a northern boundary consisting of a 
straight line extending from the northernmost 
point of Virginia’s seaward boundary to the 
point on the seaward boundary of the United 
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States exclusive economic zone located at 37 de-
grees 17 minutes 1 second North latitude, 71 
degrees 5 minutes 16 seconds West longitude; 
and 
(B) a southern boundary consisting of a 
straight line extending from the southernmost 
point of Virginia’s seaward boundary to the 
point on the seaward boundary of the United 
States exclusive economic zone located at 36 de-
grees 31 minutes 58 seconds North latitude, 71 
degrees 30 minutes 1 second West longitude. 
SEC. 202. SOUTH CAROLINA LEASE SALE. 
Notwithstanding inclusion of the South Atlantic 
Outer Continental Shelf Planning Area in the Final Outer 
Continental Shelf Oil & Gas Leasing Program 2012–2017, 
the Secretary of the Interior shall conduct a lease sale not 
later than 2 years after the date of the enactment of this 
Act for areas off the coast of South Carolina determined 
by the Secretary to have the most geologically promising 
hydrocarbon resources and constituting not less than 25 
percent of the leasable area within the South Carolina off-
shore administrative boundaries depicted in the notice en-
titled ‘‘Federal Outer Continental Shelf (OCS) Adminis-
trative Boundaries Extending from the Submerged Lands 
Act Boundary seaward to the Limit of the United States 
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Outer Continental Shelf’’, published January 3, 2006 (71 
Fed. Reg. 127). 
SEC. 203. SOUTHERN CALIFORNIA EXISTING INFRASTRUC-
TURE LEASE SALE. 
(a) IN GENERAL.—The Secretary of the Interior shall 
offer for sale leases of tracts in the Santa Maria and 
Santa Barbara/Ventura Basins of the Southern California 
OCS Planning Area as soon as practicable, but not later 
than December 31, 2014. 
(b) USE OF EXISTING STRUCTURES OR ONSHORE- 
BASED DRILLING.—The Secretary of the Interior shall in-
clude in leases offered for sale under this lease sale such 
terms and conditions as are necessary to require that de-
velopment and production may occur only from offshore 
infrastructure in existence on the date of the enactment 
of this Act or from onshore-based, extended-reach drilling. 
SEC. 204. ENVIRONMENTAL IMPACT STATEMENT REQUIRE-
MENT. 
(a) IN GENERAL.—For the purposes of this Act, the 
Secretary of the Interior shall prepare a multisale environ-
mental impact statement under section 102 of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 4332) 
for all lease sales required under this title. 
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(b) ACTIONS TO BE CONSIDERED.—Notwithstanding 
section 102 of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332), in such statement— 
(1) the Secretary is not required to identify 
nonleasing alternative courses of action or to analyze 
the environmental effects of such alternative courses 
of action; and 
(2) the Secretary shall only— 
(A) identify a preferred action for leasing 
and not more than one alternative leasing pro-
posal; and 
(B) analyze the environmental effects and 
potential mitigation measures for such pre-
ferred action and such alternative leasing pro-
posal. 
SEC. 205. NATIONAL DEFENSE. 
(a) NATIONAL DEFENSE AREAS.—This Act does not 
affect the existing authority of the Secretary of Defense, 
with the approval of the President, to designate national 
defense areas on the Outer Continental Shelf pursuant to 
section 12(d) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341(d)). 
(b) PROHIBITION ON CONFLICTS WITH MILITARY 
OPERATIONS.—No person may engage in any exploration, 
development, or production of oil or natural gas on the 
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Outer Continental Shelf under a lease issued under this 
Act that would conflict with any military operation, as de-
termined in accordance with the Memorandum of Agree-
ment between the Department of Defense and the Depart-
ment of the Interior on Mutual Concerns on the Outer 
Continental Shelf signed July 20, 1983, and any revision 
or replacement for that agreement that is agreed to by 
the Secretary of Defense and the Secretary of the Interior 
after that date but before the date of issuance of the lease 
under which such exploration, development, or production 
is conducted. 
SEC. 206. EASTERN GULF OF MEXICO NOT INCLUDED. 
Nothing in this Act affects restrictions on oil and gas 
leasing under the Gulf of Mexico Energy Security Act of 
2006 (title I of division C of Public Law 109–432; 43 
U.S.C. 1331 note). 
TITLE III—EQUITABLE SHARING 
OF 
OUTER 
CONTINENTAL 
SHELF REVENUES 
SEC. 301. DISPOSITION OF OUTER CONTINENTAL SHELF 
REVENUES TO COASTAL STATES. 
(a) IN GENERAL.—Section 9 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1338) is amended— 
(1) in the existing text— 
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(A) in the first sentence, by striking ‘‘All 
rentals,’’ and inserting the following: 
‘‘(c) DISPOSITION
OF
REVENUE
UNDER
OLD 
LEASES.—All rentals,’’; and 
(B) in subsection (c) (as designated by the 
amendment made by subparagraph (A) of this 
paragraph), by striking ‘‘for the period from 
June 5, 1950, to date, and thereafter’’ and in-
serting ‘‘in the period beginning June 5, 1950, 
and ending on the date of enactment of the Off-
shore Energy and Jobs Act’’; 
(2) by adding after subsection (c) (as so des-
ignated) the following: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) COASTAL
STATE.—The term ‘coastal 
State’ includes a territory of the United States. 
‘‘(2) NEW LEASING REVENUES.—The term ‘new 
leasing revenues’— 
‘‘(A) means amounts received by the 
United States as bonuses, rents, and royalties 
under leases for oil and gas, wind, tidal, or 
other energy exploration, development, and pro-
duction on areas of the outer Continental Shelf 
that are authorized to be made available for 
leasing as a result of enactment of the Offshore 
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Energy and Jobs Act and leasing under that 
Act; and 
‘‘(B) does not include amounts received by 
the United States under any lease of an area lo-
cated in the boundaries of the Central Gulf of 
Mexico and Western Gulf of Mexico Outer Con-
tinental Shelf Planning Areas on the date of en-
actment of the Offshore Energy and Jobs Act, 
including a lease issued before, on, or after 
such date of enactment.’’; and 
(3) by inserting before subsection (c) (as so 
designated) the following: 
‘‘(a) PAYMENT
OF NEW LEASING REVENUES
TO 
COASTAL STATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), of the amount of new leasing revenues re-
ceived by the United States each fiscal year, 37.5 
percent shall be allocated and paid in accordance 
with subsection (b) to coastal States that are af-
fected States with respect to the leases under which 
those revenues are received by the United States. 
‘‘(2) PHASE-IN.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), paragraph (1) shall be ap-
plied— 
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‘‘(i) with respect to new leasing reve-
nues under leases awarded under the first 
leasing program under section 18(a) that 
takes effect after the date of enactment of 
the Offshore Energy and Jobs Act, by sub-
stituting ‘12.5 percent’ for ‘37.5 percent’; 
and 
‘‘(ii) with respect to new leasing reve-
nues under leases awarded under the sec-
ond leasing program under section 18(a) 
that takes effect after the date of enact-
ment of the Offshore Energy and Jobs 
Act, by substituting ‘25 percent’ for ‘37.5 
percent’. 
‘‘(B) EXEMPTED
LEASE
SALES.—This 
paragraph shall not apply with respect to any 
lease issued under title II of the Offshore En-
ergy and Jobs Act. 
‘‘(b) ALLOCATION OF PAYMENTS.— 
‘‘(1) IN GENERAL.—The amount of new leasing 
revenues received by the United States with respect 
to a leased tract that are required to be paid to 
coastal States in accordance with this subsection 
each fiscal year shall be allocated among and paid 
to coastal States that are within 200 miles of the 
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leased tract, in amounts that are inversely propor-
tional to the respective distances between the point 
on the coastline of each such State that is closest to 
the geographic center of the lease tract, as deter-
mined by the Secretary. 
‘‘(2) MINIMUM AND MAXIMUM ALLOCATION.— 
The amount allocated to a coastal State under para-
graph (1) each fiscal year with respect to a leased 
tract shall be— 
‘‘(A) in the case of a coastal State that is 
the nearest State to the geographic center of 
the leased tract, not less than 25 percent of the 
total amounts allocated with respect to the 
leased tract; 
‘‘(B) in the case of any other coastal State, 
not less than 10 percent, and not more than 15 
percent, of the total amounts allocated with re-
spect to the leased tract; and 
‘‘(C) in the case of a coastal State that is 
the only coastal State within 200 miles of a 
least tract, 100 percent of the total amounts al-
located with respect to the leased tract. 
‘‘(3) ADMINISTRATION.—Amounts allocated to 
a coastal State under this subsection— 
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‘‘(A) shall be available to the coastal State 
without further appropriation; 
‘‘(B) shall remain available until expended; 
and 
‘‘(C) shall be in addition to any other 
amounts available to the coastal State under 
this Act. 
‘‘(4) USE OF FUNDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a coastal State may use 
funds allocated and paid to it under this sub-
section for any purpose as determined by the 
laws of that State. 
‘‘(B) RESTRICTION ON USE FOR MATCH-
ING.—Funds allocated and paid to a coastal 
State under this subsection may not be used as 
matching funds for any other Federal pro-
gram.’’. 
(b) LIMITATION ON APPLICATION.—This section and 
the amendment made by this section shall not affect the 
application of section 105 of the Gulf of Mexico Energy 
Security Act of 2006 (title I of division C of Public Law 
109–432; (43 U.S.C. 1331 note)), as in effect before the 
enactment of this Act, with respect to revenues received 
by the United States under oil and gas leases issued for 
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tracts located in the Western and Central Gulf of Mexico 
Outer Continental Shelf Planning Areas, including such 
leases issued on or after the date of the enactment of this 
Act. 
TITLE IV—REORGANIZATION OF 
MINERALS 
MANAGEMENT 
AGENCIES OF THE DEPART-
MENT OF THE INTERIOR 
SEC. 401. ESTABLISHMENT OF UNDER SECRETARY FOR EN-
ERGY, LANDS, AND MINERALS AND ASSIST-
ANT SECRETARY OF OCEAN ENERGY AND 
SAFETY. 
There shall be in the Department of the Interior— 
(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 
or, if directed by the Secretary, to the Deputy 
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 
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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; 
(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; 
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(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. 
SEC. 402. 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. 
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(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 
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-
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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 403 to be carried 
out through the Ocean Energy Safety Service; 
or 
(B) required by section 404 to be carried 
out through the Office of Natural Resources 
Revenue. 
(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 
U.S.C. 1701 et seq.) or of the Forest Service under the 
National Forest Management Act of 1976 (Public Law 
94–588). 
SEC. 403. 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— 
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(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 
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. 
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