IIB 
113TH CONGRESS 
1ST SESSION H. R. 2231 
IN THE SENATE OF THE UNITED STATES 
JULY 8, 2013 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
AN ACT 
To amend the Outer Continental Shelf Lands Act to increase 
energy exploration and production on the Outer Conti-
nental Shelf, provide for equitable revenue sharing for 
all coastal States, implement the reorganization of the 
functions of the former Minerals Management Service 
into distinct and separate agencies, and for other pur-
poses. 
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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 ‘‘Offshore Energy and 
Jobs Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—OUTER CONTINENTAL SHELF LEASING PROGRAM 
REFORMS 
Sec. 101. Outer Continental Shelf leasing program reforms. 
Sec. 102. Domestic oil and natural gas production goal. 
Sec. 103. Development and submittal of new 5-year oil and gas leasing pro-
gram. 
Sec. 104. Rule of construction. 
TITLE II—DIRECTING THE PRESIDENT TO CONDUCT NEW OCS 
SALES IN VIRGINIA, SOUTH CAROLINA, AND CALIFORNIA 
Sec. 201. Requirement to conduct proposed oil and gas Lease Sale 220 on the 
Outer Continental Shelf offshore Virginia. 
Sec. 202. South Carolina lease sale. 
Sec. 203. Southern California existing infrastructure lease sale. 
Sec. 204. Environmental impact statement requirement. 
Sec. 205. National defense. 
Sec. 206. Eastern Gulf of Mexico not included. 
TITLE III—EQUITABLE SHARING OF OUTER CONTINENTAL 
SHELF REVENUES 
Sec. 301. Disposition of Outer Continental Shelf revenues to coastal States. 
TITLE IV—REORGANIZATION OF MINERALS MANAGEMENT 
AGENCIES OF THE DEPARTMENT OF THE INTERIOR 
Sec. 401. Establishment of Under Secretary for Energy, Lands, and Minerals 
and Assistant Secretary of Ocean Energy and Safety. 
Sec. 402. Bureau of Ocean Energy. 
Sec. 403. Ocean Energy Safety Service. 
Sec. 404. Office of Natural Resources revenue. 
Sec. 405. Ethics and drug testing. 
Sec. 406. Abolishment of Minerals Management Service. 
Sec. 407. Conforming amendments to Executive Schedule pay rates. 
Sec. 408. Outer Continental Shelf Energy Safety Advisory Board. 
Sec. 409. Outer Continental Shelf inspection fees. 
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Sec. 410. Prohibition on action based on National Ocean Policy developed 
under Executive Order No. 13547. 
TITLE V—UNITED STATES TERRITORIES 
Sec. 501. Application of Outer Continental Shelf Lands Act with respect to ter-
ritories of the United States. 
TITLE VI—MISCELLANEOUS PROVISIONS 
Sec. 601. Rules regarding distribution of revenues under Gulf of Mexico Energy 
Security Act of 2006. 
Sec. 602. Amount of distributed qualified outer Continental Shelf revenues. 
Sec. 603. Seismic testing in the Atlantic Outer Continental Shelf. 
TITLE VII—JUDICIAL REVIEW 
Sec. 701. Time for filing complaint. 
Sec. 702. District court deadline. 
Sec. 703. Ability to seek appellate review. 
Sec. 704. Limitation on scope of review and relief. 
Sec. 705. Legal fees. 
Sec. 706. Exclusion. 
Sec. 707. Definitions. 
TITLE I—OUTER CONTINENTAL 
SHELF 
LEASING 
PROGRAM 
REFORMS 
SEC. 101. OUTER CONTINENTAL SHELF LEASING PROGRAM 
REFORMS. 
Section 18(a) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1344(a)) is amended by adding at the end 
the following: 
‘‘(5)(A) In each oil and gas leasing program 
under this section, the Secretary shall make avail-
able for leasing and conduct lease sales including at 
least 50 percent of the available unleased acreage 
within each outer Continental Shelf planning area 
considered to have the largest undiscovered, tech-
nically recoverable oil and gas resources (on a total 
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btu basis) based upon the most recent national geo-
logic assessment of the outer Continental Shelf, with 
an emphasis on offering the most geologically pro-
spective parts of the planning area. 
‘‘(B) The Secretary shall include in each pro-
posed oil and gas leasing program under this section 
any State subdivision of an outer Continental Shelf 
planning area that the Governor of the State that 
represents that subdivision requests be made avail-
able for leasing. The Secretary may not remove such 
a subdivision from the program until publication of 
the final program, and shall include and consider all 
such subdivisions in any environmental review con-
ducted and statement prepared for such program 
under section 102(2) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)). 
‘‘(C) In this paragraph the term ‘available un-
leased acreage’ means that portion of the outer Con-
tinental Shelf that is not under lease at the time of 
a proposed lease sale, and that has not otherwise 
been made unavailable for leasing by law. 
‘‘(6)(A) In the 5-year oil and gas leasing pro-
gram, the Secretary shall make available for leasing 
any outer Continental Shelf planning areas that— 
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‘‘(i) are estimated to contain more than 
2,500,000,000 barrels of oil; or 
‘‘(ii) are estimated to contain more than 
7,500,000,000,000 cubic feet of natural gas. 
‘‘(B) To determine the planning areas described 
in subparagraph (A), the Secretary shall use the 
document entitled ‘Minerals Management Service 
Assessment of Undiscovered Technically Recoverable 
Oil and Gas Resources of the Nation’s Outer Conti-
nental Shelf, 2006’.’’. 
SEC. 102. DOMESTIC OIL AND NATURAL GAS PRODUCTION 
GOAL. 
Section 18(b) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1344(b)) is amended to read as follows: 
‘‘(b) DOMESTIC OIL AND NATURAL GAS PRODUC-
TION GOAL.—– 
‘‘(1) IN GENERAL.—In developing a 5-year oil 
and gas leasing program, and subject to paragraph 
(2), the Secretary shall determine a domestic stra-
tegic production goal for the development of oil and 
natural gas as a result of that program. Such goal 
shall be— 
‘‘(A) the best estimate of the possible in-
crease in domestic production of oil and natural 
gas from the outer Continental Shelf; 
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‘‘(B) focused on meeting domestic demand 
for oil and natural gas and reducing the de-
pendence of the United States on foreign en-
ergy; and 
‘‘(C) focused on the production increases 
achieved by the leasing program at the end of 
the 15-year period beginning on the effective 
date of the program. 
‘‘(2) PROGRAM GOAL.—For purposes of the 5- 
year oil and gas leasing program, the production 
goal referred to in paragraph (1) shall be an in-
crease by 2032 of— 
‘‘(A) no less than 3,000,000 barrels in the 
amount of oil produced per day; and 
‘‘(B) no less than 10,000,000,000 cubic 
feet in the amount of natural gas produced per 
day. 
‘‘(3) REPORTING.—The Secretary shall report 
annually, beginning at the end of the 5-year period 
for which the program applies, to the Committee on 
Natural Resources of the House of Representatives 
and the Committee on Energy and Natural Re-
sources of the Senate on the progress of the pro-
gram in meeting the production goal. The Secretary 
shall identify in the report projections for production 
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and any problems with leasing, permitting, or pro-
duction that will prevent meeting the goal.’’. 
SEC. 103. DEVELOPMENT AND SUBMITTAL OF NEW 5-YEAR 
OIL AND GAS LEASING PROGRAM. 
(a) IN GENERAL.—The Secretary of the Interior 
shall— 
(1) by not later than July 15, 2014, publish 
and submit to Congress a new proposed oil and gas 
leasing program under section 18 of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1344) for the 
5-year period beginning on such date and ending 
July 15, 2020; and 
(2) by not later than July 15, 2015, approve a 
final oil and gas leasing program under such section 
for such period. 
(b) CONSIDERATION OF ALL AREAS.—In preparing 
such program the Secretary shall include consideration of 
areas of the Continental Shelf off the coasts of all States 
(as such term is defined in section 2 of that Act, as 
amended by this Act), that are subject to leasing under 
this Act. 
(c) TECHNICAL CORRECTION.—Section 18(d)(3) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1344(d)(3)) is amended by striking ‘‘or after eighteen 
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months following the date of enactment of this section, 
whichever first occurs,’’. 
SEC. 104. RULE OF CONSTRUCTION. 
Nothing in this Act shall be construed to authorize 
the issuance of a lease under the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) to any person des-
ignated for the imposition of sanctions pursuant to— 
(1) the Iran Sanctions Act of 1996 (50 U.S.C. 
1701 note), the Comprehensive Iran Sanctions, Ac-
countability and Divestiture Act of 2010 (22 U.S.C. 
8501 et seq.), the Iran Threat Reduction and Syria 
Human Rights Act of 2012 (22 U.S.C. 8701 et 
seq.), section 1245 of the National Defense Author-
ization Act for Fiscal Year 2012 (22 U.S.C. 8513a), 
or the Iran Freedom and Counter-Proliferation Act 
of 2012 (22 U.S.C. 8801 et seq.); 
(2) Executive Order No. 13622 (July 30, 
2012), Executive Order No. 13628 (October 9, 
2012), or Executive Order No. 13645 (June 3, 
2013); 
(3) Executive Order No. 13224 (September 23, 
2001) or Executive Order No. 13338 (May 11, 
2004); or 
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(4) the Syria Accountability and Lebanese Sov-
ereignty Restoration Act of 2003 (22 U.S.C. 2151 
note). 
TITLE 
II—DIRECTING 
THE 
PRESIDENT 
TO 
CONDUCT 
NEW OCS SALES IN VIRGINIA, 
SOUTH CAROLINA, AND CALI-
FORNIA 
SEC. 201. REQUIREMENT TO CONDUCT PROPOSED OIL AND 
GAS LEASE SALE 220 ON THE OUTER CONTI-
NENTAL SHELF OFFSHORE VIRGINIA. 
(a) IN GENERAL.—Notwithstanding the exclusion of 
Lease Sale 220 in the Final Outer Continental Shelf Oil 
& Gas Leasing Program 2012–2017, the Secretary of the 
Interior shall conduct offshore oil and gas Lease Sale 220 
under section 8 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1337) as soon as practicable, but not later 
than one year after the date of enactment of this Act. 
(b) REQUIREMENT TO MAKE REPLACEMENT LEASE 
BLOCKS AVAILABLE.—For each lease block in a proposed 
lease sale under this section for which the Secretary of 
Defense, in consultation with the Secretary of the Interior, 
under the Memorandum of Agreement referred to in sec-
tion 205(b), issues a statement proposing deferral from 
a lease offering due to defense-related activities that are 
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irreconcilable with mineral exploration and development, 
the Secretary of the Interior, in consultation with the Sec-
retary of Defense, shall make available in the same lease 
sale one other lease block in the Virginia lease sale plan-
ning area that is acceptable for oil and gas exploration 
and production in order to mitigate conflict. 
(c) BALANCING MILITARY AND ENERGY PRODUC-
TION GOALS.—In recognition that the Outer Continental 
Shelf oil and gas leasing program and the domestic energy 
resources produced therefrom are integral to national se-
curity, the Secretary of the Interior and the Secretary of 
Defense shall work jointly in implementing this section in 
order to ensure achievement of the following common 
goals: 
(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 
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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 
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. 
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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 
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 
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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. 
(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-
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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 
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. 
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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— 
(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: 
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‘‘(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 new areas of the outer Continental 
Shelf that are authorized to be made available 
for leasing as a result of enactment of the Off-
shore 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: 
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‘‘(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— 
‘‘(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 
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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 
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 
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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 
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. 
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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 
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-
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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; 
(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 
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(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. 
(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.— 
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(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-
ment, and production, and the use of third 
party contracting for necessary environmental 
analysis for the development of such resources. 
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(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— 
(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. 
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(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. 
(2) SPECIFIC
AUTHORITIES.—The Director 
shall be responsible for all safety activities related to 
exploration and development of renewable and min-
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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-
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-
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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 
(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 
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(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. 
(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. 
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(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. 
(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, 
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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-
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 Safety Academy (referred to in this para-
graph 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— 
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(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 
(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, 
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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 
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 
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(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 402 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 404 to be carried out 
through the Office of Natural Resources Revenue. 
SEC. 404. 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 
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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-
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 402 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 403 to be carried out 
through the Ocean Energy Safety Service. 
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SEC. 405. 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). 
(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. 
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SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT 
SERVICE. 
(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-
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-
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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. 
(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. 
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(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. 407. 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: 
‘‘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 of the Interior (6).’’ and inserting the fol-
lowing: 
‘‘Assistant Secretaries, Department of the Inte-
rior (7).’’. 
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(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. 408. OUTER CONTINENTAL SHELF ENERGY SAFETY 
ADVISORY 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’’)— 
(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 403(d), including submitting to 
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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-
ing to identify potential candidates for the Board 
and shall take nominations from the public. 
(3) TERM.—The Secretary shall appoint Board 
members to staggered terms of not more than 4 
years, and shall not appoint a member for more 
than 2 consecutive terms. 
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(4) BALANCE.—In appointing members to the 
Board, the Secretary shall ensure a balanced rep-
resentation of industry and research interests. 
(c) CHAIR.—The Secretary shall appoint the Chair 
for the Board from among its members. 
(d) MEETINGS.—The Board shall meet not less than 
3 times per year and shall host, at least once per year, 
a public forum to review and assess the overall energy 
safety performance of Outer Continental Shelf mineral 
and renewable energy resource activities. 
(e) OFFSHORE DRILLING SAFETY ASSESSMENTS 
AND RECOMMENDATIONS.—As part of its duties under 
this section, the Board shall, by not later than 180 days 
after the date of enactment of this section and every 5 
years thereafter, submit to the Secretary a report that— 
(1) assesses offshore oil and gas well control 
technologies, practices, voluntary standards, and 
regulations in the United States and elsewhere; and 
(2) as appropriate, recommends modifications 
to the regulations issued under this Act to ensure 
adequate protection of safety and the environment, 
including recommendations on how to reduce regula-
tions and administrative actions that are duplicative 
or unnecessary. 
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