SEC. 2. ROYALTIES AND OTHER PAYMENTS UNDER OFF-
SHORE OIL AND GAS LEASES . 
(a) APPLICATION OF ROYALTY TO OIL DISCHARGED 
UNDER OFFSHORE OIL AND GAS LEASES.—Section 8(a) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(9)(A) Notwithstanding the terms of any bidding 
otherwise authorized by paragraph (1) and the authority 
of the Secretary to reduce or eliminate royalty or net prof-
it share under paragraph (3), any royalty under a lease 
under this section shall apply to all oil that is removed 
under the lease and discharged into waters of the United 
States or ocean waters. 
‘‘(B) In this paragraph the term ‘discharged’ means 
any emission (other than natural seepage), intentional or 
unintentional, and includes, but is not limited to, spilling, 
leaking, pumping, pouring, emitting, emptying, or dump-
ing.’’. 
(b) MINIMUM ROYALTY UNDER OFFSHORE OIL AND 
GAS LEASES.—Section 8(a) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1336(a)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘121⁄2 per centum’’ each 
place it appears and inserting ‘‘20 percent’’; 
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(B) in subparagraph (H) by striking ‘‘12 
and 1⁄2 per centum’’ and inserting ‘‘20 per-
cent’’; 
(C) in paragraph (3)(C)(i), by inserting 
‘‘and paragraph (9)’’ after ‘‘other than this 
subparagraph’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(9) Notwithstanding any other provision of this Act, 
the royalty under any lease under this Act shall be not 
less than 20 percent in amount or value of production 
saved, removed, or sold.’’. 
(c) ENSURING FAIR RETURN
TO
THE AMERICAN 
TAXPAYER.—Section 8(a) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1336(a)) is further amended by 
adding at the end the following new paragraph: 
‘‘(10) The Secretary shall— 
‘‘(A) ensure that royalty and other payments 
required for each lease under this section provide a 
fair return to the United States; and 
‘‘(B) publish in the Federal Register for each 
such lease an explanation of how such royalty and 
other payments were derived.’’. 
(d) CONSIDERATION OF AVERAGE ROYALTY RATES 
IN OTHER COUNTRIES.—Section 8(a) of the Outer Conti-
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nental Shelf Lands Act (43 U.S.C. 1336(a)) is further 
amended by adding at the end the following new para-
graph: 
‘‘(11) In establishing the royalty and other payments 
required for a lease under this section, the Secretary shall 
consider average rates for those payments that are re-
quired by other countries.’’. 
(e) ELECTRONIC FLOW MONITORING SYSTEMS.— 
(1) REQUIREMENT.—Section 8(a) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1336(a)) is 
further amended by adding at the end the following 
new paragraph: 
‘‘(12) The Secretary shall— 
‘‘(A) require the use of an electronic flow moni-
toring system on each well drilled under a lease 
under this section that provides an accurate account-
ing of oil and gas removed under the lease; and 
‘‘(B) collect data produced by such system.’’. 
(2) RULEMAKING.—The Secretary of the Inte-
rior shall issue a rule within 90 days after the date 
of enactment of this Act to implement the amend-
ment made by this subsection, including the estab-
lishment of standards and specifications for elec-
tronic flow monitoring systems required under the 
amendment. 
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(f) REPEAL OF OUTER CONTINENTAL SHELF DEEP 
WATER AND DEEP GAS ROYALTY RELIEF.— 
(1) IN GENERAL.—Sections 344 and 345 of the 
Energy Policy Act of 2005 (42 U.S.C. 15904, 
15905) are repealed. 
(2) ADMINISTRATION.—The Secretary of the 
Interior shall not be required to provide for royalty 
relief in the lease sale terms beginning with the first 
lease sale held on or after the date of enactment of 
this Act for which a final notice of sale has not been 
published. 
Æ 
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