SEC. 10102. DOMESTIC OIL AND NATURAL GAS PRODUC-
TION 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; 
‘‘(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 
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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 
and any problems with leasing, permitting, or pro-
duction that will prevent meeting the goal.’’. 
SEC. 10103. 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, 2015, 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 
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5-year period beginning on such date and ending 
July 15, 2021; and 
(2) by not later than July 15, 2016, 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 title), that are subject to leasing under 
this title. 
(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 
months following the date of enactment of this section, 
whichever first occurs,’’. 
SEC. 10104. RULE OF CONSTRUCTION. 
Nothing in this title 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 
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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 
(4) the Syria Accountability and Lebanese Sov-
ereignty Restoration Act of 2003 (22 U.S.C. 2151 
note). 
Subtitle B—Directing the President 
To Conduct New OCS Sales 
SEC. 10201. REQUIREMENT TO CONDUCT PROPOSED OIL 
AND GAS LEASE SALE 220 ON THE OUTER 
CONTINENTAL 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 
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(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 10205(b), issues a statement proposing deferral from 
a lease offering due to defense-related activities that are 
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 
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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 
States exclusive economic zone located at 37 de-
grees 17 minutes 1 second North latitude, 71 
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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. 10202. SOUTH CAROLINA LEASE SALE. 
Notwithstanding exclusion of the South Atlantic 
Outer Continental Shelf Planning Area from 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 en-
actment of this Act for areas off the coast of South Caro-
lina determined by the Secretary to have the most geologi-
cally promising hydrocarbon resources and constituting 
not less than 25 percent of the leasable area within the 
South Carolina offshore administrative boundaries de-
picted in the notice entitled ‘‘Federal Outer Continental 
Shelf (OCS) Administrative 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). 
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SEC. 10203. SOUTHERN CALIFORNIA EXISTING INFRA-
STRUCTURE 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, 2015. 
(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. 10204. ENVIRONMENTAL IMPACT STATEMENT RE-
QUIREMENT. 
(a) IN GENERAL.—For the purposes of this title, 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 subtitle. 
(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 
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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. 10205. NATIONAL DEFENSE. 
(a) NATIONAL DEFENSE AREAS.—This title 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 
title that would conflict with any military operation, as 
determined 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 
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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. 10206. EASTERN GULF OF MEXICO NOT INCLUDED. 
Nothing in this title 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). 
Subtitle C—Equitable Sharing of 
Outer Continental Shelf Revenues 
SEC. 10301. 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 
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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 
Lowering Gasoline Prices to Fuel an America 
That Works Act of 2014’’; 
(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 new areas of the outer Continental 
Shelf that are authorized to be made available 
for leasing as a result of enactment of the Low-
ering Gasoline Prices to Fuel an America That 
Works Act of 2014 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 
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Mexico and Western Gulf of Mexico Outer Con-
tinental Shelf Planning Areas on the date of en-
actment of the Lowering Gasoline Prices to 
Fuel an America That Works Act of 2014, in-
cluding 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— 
‘‘(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 
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the Lowering Gasoline Prices to Fuel an 
America That Works Act of 2014, 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 Lowering Gasoline Prices to 
Fuel an America That Works Act of 2014, 
by substituting ‘25 percent’ for ‘37.5 per-
cent’. 
‘‘(B) EXEMPTED
LEASE
SALES.—This 
paragraph shall not apply with respect to any 
lease issued under subtitle B of the Lowering 
Gasoline Prices to Fuel an America That 
Works Act of 2014. 
‘‘(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-
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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 
leased tract, 100 percent of the total amounts 
allocated with respect to the leased tract. 
‘‘(3) ADMINISTRATION.—Amounts allocated to 
a coastal State under this subsection— 
‘‘(A) shall be available to the coastal State 
without further appropriation; 
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‘‘(B) shall remain available until expended; 
‘‘(C) shall be in addition to any other 
amounts available to the coastal State under 
this Act; and 
‘‘(D) shall be distributed in the fiscal year 
following receipt. 
‘‘(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 
tracts located in the Western and Central Gulf of Mexico 
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Outer Continental Shelf Planning Areas, including such 
leases issued on or after the date of the enactment of this 
Act. 
Subtitle D—Reorganization of Min-
erals Management Agencies of 
the Department of the Interior 
SEC. 10401. 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— 
(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 
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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 
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. 10402. 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 
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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 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 
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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 10403 to be car-
ried out through the Ocean Energy Safety Serv-
ice; or 
(B) required by section 10404 to be car-
ried out through the Office of Natural Re-
sources 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. 10403. 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 
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(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. 
(2) SPECIFIC
AUTHORITIES.—The Director 
shall be responsible for all safety activities related to 
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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-
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; 
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(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 
(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)— 
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(A) shall be determined by the Secretary, 
subject to subparagraph (B); and 
(B) shall include— 
(i) 3 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 
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(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. 
(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 
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(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-
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. 
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(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 
(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 
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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 
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— 
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(i) to enable persons to qualify for po-
sitions in the administration of this title; 
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 10402 to be carried out 
through the Bureau of Ocean Energy; or 
(2) required by section 10404 to be carried out 
through the Office of Natural Resources Revenue. 
SEC. 10404. 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. 
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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 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 10402 to be carried out 
through the Bureau of Ocean Energy; or 
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(2) required by section 10403 to be carried out 
through the Ocean Energy Safety Service. 
SEC. 10405. 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. 10406. 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 title— 
(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 title 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 title 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 title, 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 title shall 
continue to apply. 
SEC. 10407. 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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