SEC. 208. DISPOSITION OF RECEIPTS. 
Section 9 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1338) is amended— 
(1) by designating the existing text as sub-
section (a); 
(2) in subsection (a) (as so designated) by in-
serting ‘‘, if not paid as otherwise provided in this 
title’’ after ‘‘receipts’’; and 
(3) by adding the following: 
‘‘(b) TREATMENT OF OCS RECEIPTS FROM TRACTS 
COMPLETELY WITHIN 100 MILES OF THE COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2), (3), and (4). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2009, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region com-
pletely beyond 4 marine leagues from any 
coastline and completely within 100 miles 
of any coastline that were available for 
leasing under the 2002–2007 5-Year OCS 
Oil and Gas Leasing Program. 
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‘‘(ii) Lease tracts in production prior 
to October 1, 2008, completely beyond 4 
marine leagues from any coastline and 
completely within 100 miles of any coast-
line located on portions of the OCS that 
were not available for leasing under the 
2002–2007 5-Year OCS Oil and Gas Leas-
ing Program. 
‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2008, located in 
the Alaska OCS Region completely beyond 
4 marine leagues from any coastline and 
completely within 100 miles of the coast-
line. 
‘‘(B) The Secretary shall share the fol-
lowing percentages of OCS Receipts from the 
leases described in subparagraph (A) derived 
during the fiscal year indicated: 
‘‘(i) For fiscal year 2010, 5 percent. 
‘‘(ii) For fiscal year 2011, 10 percent. 
‘‘(iii) For fiscal year 2012, 14 per-
cent. 
‘‘(iv) For fiscal year 2013, 19 percent. 
‘‘(v) For fiscal year 2014, 23 percent. 
‘‘(vi) For fiscal year 2015, 27 percent. 
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‘‘(vii) For fiscal year 2016, 31 per-
cent. 
‘‘(viii) For fiscal year 2017, 35 per-
cent. 
‘‘(ix) For fiscal year 2018, 39 percent. 
‘‘(x) For fiscal year 2019, 43 percent. 
‘‘(xi) For fiscal year 2020, 47 percent. 
‘‘(xii) For fiscal year 2021 and each 
subsequent fiscal year, 50 percent. 
‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
106(2) of the American Energy Production and 
Price Reduction Act. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2009, the Secretary shall share 50 
percent of OCS Receipts derived from all leases lo-
cated completely beyond 4 marine leagues from any 
coastline and completely within 100 miles of any 
coastline not included within the provisions of para-
graph (2), and 100 percent of the balance of such 
OCS Receipts shall be directed toward reducing the 
national deficit and if such a deficit does not exist 
then the OCS Receipts shall be directed toward re-
ducing the national debt. 
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‘‘(4) RECEIPTS SHARING FROM TRACTS WITHIN 
4 MARINE LEAGUES OF ANY COASTLINE.— 
‘‘(A) AREAS
DESCRIBED
IN
PARAGRAPH 
(2).—Beginning October 1, 2009, and con-
tinuing through September 30, 2011, the Sec-
retary shall share 25 percent of OCS Receipts 
derived from all leases located within 4 marine 
leagues from any coastline within areas de-
scribed in paragraph (2). For each fiscal year 
after September 30, 2010, the Secretary shall 
increase the percent shared in 5 percent incre-
ments each fiscal year until the sharing rate for 
all leases located within 4 marine leagues from 
any coastline within areas described in para-
graph (2) becomes 75 percent. 
‘‘(B) AREAS
NOT
DESCRIBED
IN
PARA-
GRAPH
(2).—Beginning October 1, 2009, the 
Secretary shall share 75 percent of OCS Re-
ceipts derived from all leases located completely 
or partially within 4 marine leagues from any 
coastline within areas not described paragraph 
(2). 
‘‘(5) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
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account established by paragraph (1) that are 
shared under paragraphs (2), (3), and (4) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone within 100 miles of its 
coastline that generated royalties during the fis-
cal year, if the other producing States have a 
coastline point within 300 miles of any portion 
of the leased tract, in which case the amount al-
located for the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
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‘‘(c) TREATMENT OF OCS RECEIPTS FROM TRACTS 
PARTIALLY OR COMPLETELY BEYOND 100 MILES OF THE 
COASTLINE.— 
‘‘(1) DEPOSIT.—The Secretary shall deposit 
into a separate account in the Treasury the portion 
of OCS Receipts for each fiscal year that will be 
shared under paragraphs (2) and (3). 
‘‘(2) PHASED-IN RECEIPTS SHARING.— 
‘‘(A) Beginning October 1, 2009, the Sec-
retary shall share OCS Receipts derived from 
the following areas: 
‘‘(i) Lease tracts located on portions 
of the Gulf of Mexico OCS Region partially 
or completely beyond 100 miles of any 
coastline that were available for leasing 
under the 2002–2007 5-Year OCS Oil and 
Gas Leasing Program. 
‘‘(ii) Lease tracts in production prior 
to October 1, 2009, partially or completely 
beyond 100 miles of any coastline located 
on portions of the OCS that were not 
available for leasing under the 2002–2007 
5-Year OCS Oil and Gas Leasing Pro-
gram. 
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‘‘(iii) Lease tracts for which leases are 
issued prior to October 1, 2009, located in 
the Alaska OCS Region partially or com-
pletely beyond 100 miles of the coastline. 
‘‘(B) The Secretary shall share the fol-
lowing percentages of OCS Receipts from the 
leases described in subparagraph (A) derived 
during the fiscal year indicated: 
‘‘(i) For fiscal year 2010, 5 percent. 
‘‘(ii) For fiscal year 2011, 10 percent. 
‘‘(iii) For fiscal year 2012, 14 per-
cent. 
‘‘(iv) For fiscal year 2013, 19 percent. 
‘‘(v) For fiscal year 2014, 23 percent. 
‘‘(vi) For fiscal year 2015, 27 percent. 
‘‘(vii) For fiscal year 2016, 31 per-
cent. 
‘‘(viii) For fiscal year 2017, 35 per-
cent. 
‘‘(ix) For fiscal year 2018, 39 percent. 
‘‘(x) For fiscal year 2019, 43 percent. 
‘‘(xi) For fiscal year 2020, 47 percent. 
‘‘(xii) For fiscal year 2021 and each 
subsequent fiscal year, 50 percent. 
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‘‘(C) The provisions of this paragraph shall 
not apply to leases that could not have been 
issued but for section 5(k) of this Act or section 
106(2) of the American Energy Production and 
Price Reduction Act. 
‘‘(3) IMMEDIATE RECEIPTS SHARING.—Begin-
ning October 1, 2009, the Secretary shall share 50 
percent of OCS Receipts derived on and after Octo-
ber 1, 2009, from all leases located partially or com-
pletely beyond 100 miles of any coastline not in-
cluded within the provisions of paragraph (2), except 
that the Secretary shall only share 25 percent of 
such OCS Receipts derived from all such leases 
within a State’s Adjacent Zone if no leasing is al-
lowed within any portion of that State’s Adjacent 
Zone located completely within 100 miles of any 
coastline. 
‘‘(4) ALLOCATIONS.—The Secretary shall allo-
cate the OCS Receipts deposited into the separate 
account established by paragraph (1) that are 
shared under paragraphs (2) and (3) as follows: 
‘‘(A) BONUS BIDS.—Deposits derived from 
bonus bids from a leased tract, including inter-
est thereon, shall be allocated at the end of 
each fiscal year to the Adjacent State. 
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‘‘(B) ROYALTIES.—Deposits derived from 
royalties from a leased tract, including interest 
thereon, shall be allocated at the end of each 
fiscal year to the Adjacent State and any other 
producing State or States with a leased tract 
within its Adjacent Zone partially or completely 
beyond 100 miles of its coastline that generated 
royalties during the fiscal year, if the other pro-
ducing State or States have a coastline point 
within 300 miles of any portion of the leased 
tract, in which case the amount allocated for 
the leased tract shall be— 
‘‘(i) one-third to the Adjacent State; 
and 
‘‘(ii) two-thirds to each producing 
State, including the Adjacent State, in-
versely proportional to the distance be-
tween the nearest point on the coastline of 
the producing State and the geographic 
center of the leased tract. 
‘‘(d) TRANSMISSION OF ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the end of each fiscal year, the Secretary shall 
transmit— 
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‘‘(A) to each State 60 percent of such 
State’s allocations under subsections (b)(5)(A), 
(b)(5)(B), (c)(4)(A), and (c)(4)(B) for the im-
mediate prior fiscal year; 
‘‘(B) to each coastal county-equivalent and 
municipal political subdivision of such State a 
total of 40 percent of such State’s allocations 
under 
subsections 
(b)(5)(A), 
(b)(5)(B), 
(c)(4)(A), and (c)(4)(B), together with all ac-
crued interest thereon; and 
‘‘(C) the remaining allocations under sub-
sections (b)(5) and (c)(4), together with all ac-
crued interest thereon. 
‘‘(2) ALLOCATIONS
TO
COASTAL
COUNTY- 
EQUIVALENT
POLITICAL
SUBDIVISIONS.—The Sec-
retary shall make an initial allocation of the OCS 
Receipts to be shared under paragraph (1)(B) as fol-
lows: 
‘‘(A) 25 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely more than 25 miles landward of 
the coastline and at least a part of which lies 
not more than 75 miles landward from the 
coastline, with the allocation among such coast-
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al county-equivalent political subdivisions based 
on population. 
‘‘(B) 75 percent shall be allocated to coast-
al county-equivalent political subdivisions that 
are completely or partially less than 25 miles 
landward of the coastline, with the allocation 
among such coastal county-equivalent political 
subdivisions to be further allocated as follows: 
‘‘(i) 25 percent shall be allocated 
based on the ratio of such coastal county- 
equivalent political subdivision’s population 
to the coastal population of all coastal 
county-equivalent political subdivisions in 
the State. 
‘‘(ii) 25 percent shall be allocated 
based on the ratio of such coastal county- 
equivalent political subdivision’s coastline 
miles to the coastline miles of all coastal 
county-equivalent political subdivisions in 
the State as calculated by the Secretary. 
In such calculations, coastal county-equiva-
lent political subdivisions without a coast-
line shall be considered to have 50 percent 
of the average coastline miles of the coast-
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al county-equivalent political subdivisions 
that do have coastlines. 
‘‘(iii) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on a 
formula that allocates the funds based on 
such coastal county-equivalent political 
subdivision’s relative distance from the 
leased tract. 
‘‘(iv) 25 percent shall be allocated to 
all coastal county-equivalent political sub-
divisions having a coastline point within 
300 miles of the leased tract for which 
OCS Receipts are being shared based on 
the relative level of outer Continental Shelf 
oil and gas activities in a coastal political 
subdivision compared to the level of outer 
Continental Shelf activities in all coastal 
political subdivisions in the State. The Sec-
retary shall define the term ‘outer Conti-
nental Shelf oil and gas activities’ for pur-
poses of this subparagraph to include, but 
not be limited to, construction of vessels, 
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drillships, and platforms involved in explo-
ration, production, and development on the 
outer Continental Shelf; support and sup-
ply bases, ports, and related activities; of-
fices of geologists, geophysicists, engineers, 
and other professionals involved in support 
of exploration, production, and develop-
ment of oil and gas on the outer Conti-
nental Shelf; pipelines and other means of 
transporting oil and gas production from 
the outer Continental Shelf; and processing 
and refining of oil and gas production from 
the outer Continental Shelf. For purposes 
of this subparagraph, if a coastal county- 
equivalent political subdivision does not 
have a coastline, its coastal point shall be 
the point on the coastline closest to it. 
‘‘(3) ALLOCATIONS TO COASTAL MUNICIPAL PO-
LITICAL
SUBDIVISIONS.—The initial allocation to 
each coastal county-equivalent political subdivision 
under paragraph (2) shall be further allocated to the 
coastal county-equivalent political subdivision and 
any coastal municipal political subdivisions located 
partially or wholly within the boundaries of the 
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coastal county-equivalent political subdivision as fol-
lows: 
‘‘(A) One-third shall be allocated to the 
coastal county-equivalent political subdivision. 
‘‘(B) Two-thirds shall be allocated on a per 
capita basis to the municipal political subdivi-
sions and the county-equivalent political sub-
division, with the allocation to the latter based 
upon its population not included within the 
boundaries of a municipal political subdivision. 
‘‘(e) INVESTMENT OF DEPOSITS.—Amounts depos-
ited under this section shall be invested by the Secretary 
of the Treasury in securities backed by the full faith and 
credit of the United States having maturities suitable to 
the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as 
determined by the Secretary of the Treasury. 
‘‘(f) USE OF FUNDS.—A recipient of funds under this 
section may use the funds for one or more of the following: 
‘‘(1) To reduce in-State college tuition at public 
institutions of higher learning and otherwise support 
public education, including career technical edu-
cation. 
‘‘(2) To make transportation infrastructure im-
provements. 
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‘‘(3) To reduce taxes. 
‘‘(4) To promote, fund, and provide for— 
‘‘(A) coastal or environmental restoration; 
‘‘(B) fish, wildlife, and marine life habitat 
enhancement; 
‘‘(C) waterways construction and mainte-
nance; 
‘‘(D) levee construction and maintenance 
and shore protection; and 
‘‘(E) marine and oceanographic education 
and research. 
‘‘(5) To promote, fund, and provide for— 
‘‘(A) infrastructure associated with energy 
production activities conducted on the outer 
Continental Shelf; 
‘‘(B) energy demonstration projects; 
‘‘(C) supporting infrastructure for shore- 
based energy projects; 
‘‘(D) State geologic programs, including 
geologic mapping and data storage programs, 
and State geophysical data acquisition; 
‘‘(E) State seismic monitoring programs, 
including operation of monitoring stations; 
‘‘(F) development of oil and gas resources 
through enhanced recovery techniques; 
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‘‘(G) alternative energy development, in-
cluding biofuels, coal-to-liquids, oil shale, tar 
sands, geothermal, geopressure, wind, waves, 
currents, hydro, and other renewable energy; 
‘‘(H) energy efficiency and conservation 
programs; and 
‘‘(I) front-end engineering and design for 
facilities that produce liquid fuels from hydro-
carbons and other biological matter. 
‘‘(6) To promote, fund, and provide for— 
‘‘(A) historic preservation programs and 
projects; 
‘‘(B) natural disaster planning and re-
sponse; and 
‘‘(C) hurricane and natural disaster insur-
ance programs. 
‘‘(7) For any other purpose as determined by 
State law. 
‘‘(g) NO ACCOUNTING REQUIRED.—No recipient of 
funds under this section shall be required to account to 
the Federal Government for the expenditure of such 
funds, except as otherwise may be required by law. How-
ever, States may enact legislation providing for accounting 
for and auditing of such expenditures. Further, funds allo-
cated under this section to States and political subdivi-
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sions may be used as matching funds for other Federal 
programs. 
‘‘(h) EFFECT OF FUTURE LAWS.—Enactment of any 
future Federal statute that has the effect, as determined 
by the Secretary, of restricting any Federal agency from 
spending appropriated funds, or otherwise preventing it 
from fulfilling its pre-existing responsibilities as of the 
date of enactment of the statute, unless such responsibil-
ities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue 
any permit or other approval impacting on the OCS oil 
and gas leasing program, or any lease issued thereunder, 
or to implement any provision of this Act shall automati-
cally prohibit any sharing of OCS Receipts under this sec-
tion directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Sec-
retary shall make the determination of the existence of 
such restricting effects within 30 days of a petition by any 
outer Continental Shelf lessee or producing State. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) COASTAL COUNTY-EQUIVALENT POLITICAL 
SUBDIVISION.—The term ‘coastal county-equivalent 
political subdivision’ means a political jurisdiction 
immediately below the level of State government, in-
cluding a county, parish, borough in Alaska, inde-
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pendent municipality not part of a county, parish, or 
borough in Alaska, or other equivalent subdivision of 
a coastal State, that lies within the coastal zone. 
‘‘(2) COASTAL MUNICIPAL POLITICAL SUBDIVI-
SION.—The term ‘coastal municipal political subdivi-
sion’ means a municipality located within and part 
of a county, parish, borough in Alaska, or other 
equivalent subdivision of a State, all or part of which 
coastal municipal political subdivision lies within the 
coastal zone. 
‘‘(3) COASTAL POPULATION.—The term ‘coastal 
population’ means the population of all coastal coun-
ty-equivalent political subdivisions, as determined by 
the most recent official data of the Bureau of the 
Census. 
‘‘(4) COASTAL ZONE.—The term ‘coastal zone’ 
means that portion of a coastal State, including the 
entire territory of any coastal county-equivalent po-
litical subdivision at least a part of which lies within 
75 miles landward from the coastline, or a greater 
distance as determined by State law enacted to im-
plement this section. 
‘‘(5) BONUS
BIDS.—The term ‘bonus bids’ 
means all funds received by the Secretary to issue 
an outer Continental Shelf minerals lease. 
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‘‘(6) ROYALTIES.—The term ‘royalties’ means 
all funds received by the Secretary from production 
of oil or natural gas, or the sale of production taken 
in-kind, from an outer Continental Shelf minerals 
lease. 
‘‘(7) PRODUCING STATE.—The term ‘producing 
State’ means an Adjacent State having an Adjacent 
Zone containing leased tracts from which OCS re-
ceipts were derived. 
‘‘(8) OCS RECEIPTS.—The term ‘OCS Receipts’ 
means bonus bids, royalties, and conservation of re-
sources fees.’’. 
SEC. 209. RESERVATION OF LANDS AND RIGHTS. 
Section 12 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1341) is amended— 
(1) in subsection (a) by adding at the end the 
following: ‘‘The President may partially or com-
pletely revise or revoke any prior withdrawal made 
by the President under the authority of this section. 
The President may not revise or revoke a withdrawal 
that is extended by a State under subsection (h), nor 
may the President withdraw from leasing any area 
for which a State failed to prohibit, or petition to 
prohibit, leasing under subsection (g). Further, in 
the area of the outer Continental Shelf more than 
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100 miles from any coastline, not more than 25 per-
cent of the acreage of any OCS Planning Area may 
be withdrawn from leasing under this section at any 
point in time. A withdrawal by the President may be 
for a term not to exceed 10 years. When considering 
potential uses of the outer Continental Shelf, to the 
maximum extent possible, the President shall accom-
modate competing interests and potential uses.’’; 
(2) by adding at the end the following: 
‘‘(g) AVAILABILITY FOR LEASING WITHIN CERTAIN 
AREAS OF THE OUTER CONTINENTAL SHELF.— 
‘‘(1) PROHIBITION AGAINST LEASING.— 
‘‘(A) UNAVAILABLE
FOR
LEASING
WITH-
OUT
STATE
REQUEST.—Except as otherwise 
provided in this subsection, from and after en-
actment of the American Energy Production 
and Price Reduction Act, the Secretary shall 
not offer for leasing for oil and gas, or natural 
gas, any area within 50 miles of the coastline 
that was withdrawn from disposition by leasing 
in the Atlantic OCS Region or the Pacific OCS 
Region, or the Gulf of Mexico OCS Region 
Eastern Planning Area, as depicted on the 
maps referred to in this subparagraph, under 
the ‘Memorandum on Withdrawal of Certain 
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Areas of the United States Outer Continental 
Shelf from Leasing Disposition’, 34 Weekly 
Comp. Pres. Doc. 1111, dated June 12, 1998, 
or any area within 50 miles of the coastline not 
withdrawn under that Memorandum that is in-
cluded within the Gulf of Mexico OCS Region 
Eastern Planning Area as indicated on the map 
entitled ‘Gulf of Mexico OCS Region State Ad-
jacent Zones and OCS Planning Areas’ or the 
Florida Straits Planning Area as indicated on 
the map entitled ‘Atlantic OCS Region State 
Adjacent Zones and OCS Planning Areas’, both 
of which are dated September 2005 and on file 
in the Office of the Director, Minerals Manage-
ment Service. 
‘‘(B) AREAS BETWEEN 50 AND 100 MILES 
FROM
THE
COASTLINE.—Unless an Adjacent 
State petitions under subsection (h) within one 
year after the date of the enactment of the 
American Energy Production and Price Reduc-
tion Act for natural gas leasing or by June 30, 
2010, for oil and gas leasing, the Secretary 
shall offer for leasing any area more than 50 
miles but less than 100 miles from the coastline 
that was withdrawn from disposition by leasing 
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in the Atlantic OCS Region, the Pacific OCS 
Region, or the Gulf of Mexico OCS Region 
Eastern Planning Area, as depicted on the 
maps referred to in this subparagraph, under 
the ‘Memorandum on Withdrawal of Certain 
Areas of the United States Outer Continental 
Shelf from Leasing Disposition’, 34 Weekly 
Comp. Pres. Doc. 1111, dated June 12, 1998, 
or any area more than 50 miles but less than 
100 miles of the coastline not withdrawn under 
that Memorandum that is included within the 
Gulf of Mexico OCS Region Eastern Planning 
Area as indicated on the map entitled ‘Gulf of 
Mexico OCS Region State Adjacent Zones and 
OCS Planning Areas’ or within the Florida 
Straits Planning Area as indicated on the map 
entitled ‘Atlantic OCS Region State Adjacent 
Zones and OCS Planning Areas’, both of which 
are dated September 2005 and on file in the 
Office of the Director, Minerals Management 
Service. 
‘‘(2) PETITION FOR LEASING.— 
‘‘(A) IN GENERAL.—The Governor of the 
State, upon concurrence of its legislature, may 
submit to the Secretary a petition requesting 
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that the Secretary make available any area that 
is within the State’s Adjacent Zone, included 
within the provisions of paragraph (1), and that 
(i) is greater than 25 miles from any point on 
the coastline of a Neighboring State for the 
conduct of offshore leasing, pre-leasing, and re-
lated activities with respect to natural gas leas-
ing; or (ii) is greater than 50 miles from any 
point on the coastline of a Neighboring State 
for the conduct of offshore leasing, pre-leasing, 
and related activities with respect to oil and gas 
leasing. The Adjacent State may also petition 
for leasing any other area within its Adjacent 
Zone if leasing is allowed in the similar area of 
the Adjacent Zone of the applicable Neigh-
boring State, or if not allowed, if the Neigh-
boring State, acting through its Governor, ex-
presses its concurrence with the petition. The 
Secretary shall only consider such a petition 
upon making a finding that leasing is allowed 
in the similar area of the Adjacent Zone of the 
applicable Neighboring State or upon receipt of 
the concurrence of the Neighboring State. The 
date of receipt by the Secretary of such concur-
rence by the Neighboring State shall constitute 
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the date of receipt of the petition for that area 
for which the concurrence applies. 
‘‘(B) LIMITATIONS
ON
LEASING.—In its 
petition, a State with an Adjacent Zone that 
contains leased tracts may condition new leas-
ing for oil and gas, or natural gas for tracts 
within 25 miles of the coastline by— 
‘‘(i) requiring a net reduction in the 
number of production platforms; 
‘‘(ii) requiring a net increase in the 
average distance of production platforms 
from the coastline; 
‘‘(iii) limiting permanent surface occu-
pancy on new leases to areas that are more 
than 10 miles from the coastline; 
‘‘(iv) limiting some tracts to being 
produced from shore or from platforms lo-
cated on other tracts; or 
‘‘(v) other conditions that the Adja-
cent State may deem appropriate as long 
as the Secretary does not determine that 
production is made economically or tech-
nically impracticable or otherwise impos-
sible. 
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‘‘(C) ACTION BY SECRETARY.—Not later 
than 90 days after receipt of a petition under 
subparagraph (A), the Secretary shall approve 
the petition, unless the Secretary determines 
that leasing the area would probably cause seri-
ous harm or damage to the marine resources of 
the State’s Adjacent Zone. Prior to approving 
the petition, the Secretary shall complete an en-
vironmental assessment that documents the an-
ticipated environmental effects of leasing in the 
area included within the scope of the petition. 
‘‘(D) FAILURE TO ACT.—If the Secretary 
fails to approve or deny a petition in accordance 
with subparagraph (C) the petition shall be con-
sidered to be approved 90 days after receipt of 
the petition. 
‘‘(E) AMENDMENT OF THE 5-YEAR LEAS-
ING
PROGRAM.—Notwithstanding section 18, 
within 180 days of the approval of a petition 
under subparagraph (C) or (D), after the expi-
ration of the time limits in paragraph (1)(B), 
the Secretary shall amend the current 5-Year 
Outer Continental Shelf Oil and Gas Leasing 
Program to include a lease sale or sales for at 
least 75 percent of the associated areas, unless 
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there are, from the date of approval, expiration 
of such time limits, as applicable, fewer than 12 
months remaining in the current 5-Year Leas-
ing Program in which case the Secretary shall 
include the associated areas within lease sales 
under the next 5-Year Leasing Program. For 
purposes of amending the 5-Year Program in 
accordance with this section, further consulta-
tions with States shall not be required. For 
purposes of this section, an environmental as-
sessment performed under the provisions of the 
National Environmental Policy Act of 1969 to 
assess the effects of approving the petition shall 
be sufficient to amend the 5-Year Leasing Pro-
gram. 
‘‘(h) OPTION
TO
EXTEND
WITHDRAWAL
FROM 
LEASING WITHIN CERTAIN AREAS OF THE OUTER CON-
TINENTAL SHELF.—A State, through its Governor and 
upon the concurrence of its legislature, may extend for a 
period of time of up to 5 years for each extension the with-
drawal from leasing for all or part of any area within the 
State’s Adjacent Zone located more than 50 miles, but less 
than 100 miles, from the coastline that is subject to sub-
section (g)(1)(B). A State may extend multiple times for 
any particular area but not more than once per calendar 
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year for any particular area. A State must prepare sepa-
rate extensions, with separate votes by its legislature, for 
oil and gas leasing and for natural gas leasing. An exten-
sion by a State may affect some areas to be withdrawn 
from all leasing and some areas to be withdrawn only from 
one type of leasing. 
‘‘(i) EFFECT OF OTHER LAWS.—Adoption by any 
Adjacent State of any constitutional provision, or enact-
ment of any State statute, that has the effect, as deter-
mined by the Secretary, of restricting either the Governor 
or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automati-
cally (1) prohibit any sharing of OCS Receipts under this 
Act with the Adjacent State, and its coastal political sub-
divisions, and (2) prohibit the Adjacent State from exer-
cising any authority under subsection (h), for the duration 
of the restriction. The Secretary shall make the determina-
tion of the existence of such restricting constitutional pro-
vision or State statute within 30 days of a petition by any 
outer Continental Shelf lessee or coastal State. 
‘‘(j) PROHIBITION ON LEASING EAST OF THE MILI-
TARY MISSION LINE.— 
‘‘(1) Notwithstanding any other provision of 
law, from and after the enactment of the American 
Energy Production and Price Reduction Act, prior 
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to January 1, 2022, no area of the outer Conti-
nental Shelf located in the Gulf of Mexico east of the 
military mission line may be offered for leasing for 
oil and gas or natural gas unless a waiver is issued 
by the Secretary of Defense. If such a waiver is 
granted, 62.5 percent of the OCS Receipts from a 
lease within such area issued because of such waiver 
shall be paid annually to the National Guards of all 
States having a point within 1,000 miles of such a 
lease, allocated among the States on a per capita 
basis using the entire population of such States. 
‘‘(2) In this subsection, the term ‘military mis-
sion line’ means a line located at 86 degrees, 41 
minutes West Longitude, and extending south from 
the coast of Florida to the outer boundary of United 
States territorial waters in the Gulf of Mexico.’’. 
SEC. 210. OUTER CONTINENTAL SHELF LEASING PROGRAM. 
Section 18 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1344) is amended— 
(1) in subsection (a), by adding at the end of 
paragraph (3) the following: ‘‘The Secretary shall, in 
each 5-Year Program, include lease sales that when 
viewed as a whole propose to offer for oil and gas 
or natural gas leasing at least 75 percent of the 
available unleased acreage within each OCS Plan-
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ning Area. Available unleased acreage is that portion 
of the outer Continental Shelf that is not under 
lease at the time of the proposed lease sale, and has 
not otherwise been made unavailable for leasing by 
law.’’; 
(2) in subsection (c), by striking so much as 
precedes paragraph (3) and inserting the following: 
‘‘(c)(1) During the preparation of any proposed leas-
ing program under this section, the Secretary shall con-
sider and analyze leasing throughout the entire outer Con-
tinental Shelf without regard to any other law affecting 
such leasing. During this preparation the Secretary shall 
invite and consider suggestions from any interested Fed-
eral agency, including the Attorney General, in consulta-
tion with the Federal Trade Commission, and from the 
Governor of any coastal State. The Secretary may also in-
vite or consider any suggestions from the executive of any 
local government in a coastal State that have been pre-
viously submitted to the Governor of such State, and from 
any other person. Further, the Secretary shall consult 
with the Secretary of Defense regarding military oper-
ational needs in the outer Continental Shelf. The Sec-
retary shall work with the Secretary of Defense to resolve 
any conflicts that might arise regarding offering any area 
of the outer Continental Shelf for oil and gas or natural 
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gas leasing. If the Secretaries are not able to resolve all 
such conflicts, any unresolved issues shall be elevated to 
the President for resolution. 
‘‘(2) After the consideration and analysis required by 
paragraph (1), including the consideration of the sugges-
tions received from any interested Federal agency, the 
Federal Trade Commission, the Governor of any coastal 
State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal 
Register a proposed leasing program accompanied by a 
draft environmental impact statement prepared pursuant 
to the National Environmental Policy Act of 1969. After 
the publishing of the proposed leasing program and during 
the comment period provided for on the draft environ-
mental impact statement, the Secretary shall submit a 
copy of the proposed program to the Governor of each af-
fected State for review and comment. The Governor may 
solicit comments from those executives of local govern-
ments in the Governor’s State that the Governor, in the 
discretion of the Governor, determines will be affected by 
the proposed program. If any comment by such Governor 
is received by the Secretary at least 15 days prior to sub-
mission to the Congress pursuant to paragraph (3) and 
includes a request for any modification of such proposed 
program, the Secretary shall reply in writing, granting or 
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denying such request in whole or in part, or granting such 
request in such modified form as the Secretary considers 
appropriate, and stating the Secretary’s reasons therefor. 
All such correspondence between the Secretary and the 
Governor of any affected State, together with any addi-
tional information and data relating thereto, shall accom-
pany such proposed program when it is submitted to the 
Congress.’’; and 
(3) by adding at the end the following: 
‘‘(i) PROJECTION OF STATE ADJACENT ZONE RE-
SOURCES AND STATE AND LOCAL GOVERNMENT SHARES 
OF OCS RECEIPTS.—Concurrent with the publication of 
the scoping notice at the beginning of the development of 
each 5-Year Outer Continental Shelf Oil and Gas Leasing 
Program, or as soon thereafter as possible, the Secretary 
shall— 
‘‘(1) provide to each Adjacent State a current 
estimate of proven and potential oil and gas re-
sources located within the State’s Adjacent Zone; 
and 
‘‘(2) provide to each Adjacent State, and coast-
al political subdivisions thereof, a best-efforts projec-
tion of the OCS Receipts that the Secretary expects 
will be shared with each Adjacent State, and its 
coastal political subdivisions, using the assumption 
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that the unleased tracts within the State’s Adjacent 
Zone are fully made available for leasing, including 
long-term projected OCS Receipts. In addition, the 
Secretary shall include a macroeconomic estimate of 
the impact of such leasing on the national economy 
and each State’s economy, including investment, 
jobs, revenues, personal income, and other cat-
egories.’’. 
SEC. 211. COORDINATION WITH ADJACENT STATES. 
Section 19 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1345) is amended— 
(1) in subsection (a) in the first sentence by in-
serting ‘‘, for any tract located within the Adjacent 
State’s Adjacent Zone,’’ after ‘‘government’’; and 
(2) by adding the following: 
‘‘(f)(1) No Federal agency may permit or otherwise 
approve, without the concurrence of the Adjacent State, 
the construction of a crude oil or petroleum products (or 
both) pipeline within the part of the Adjacent State’s Ad-
jacent Zone that is withdrawn from oil and gas or natural 
gas leasing, except that such a pipeline may be approved, 
without such Adjacent State’s concurrence, to pass 
through such Adjacent Zone if at least 50 percent of the 
production projected to be carried by the pipeline within 
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its first 10 years of operation is from areas of the Adja-
cent State’s Adjacent Zone. 
‘‘(2) No State may prohibit the construction within 
its Adjacent Zone or its State waters of a natural gas pipe-
line that will transport natural gas produced from the 
outer Continental Shelf. However, an Adjacent State may 
prevent a proposed natural gas pipeline landing location 
if it proposes two alternate landing locations in the Adja-
cent State, acceptable to the Adjacent State, located with-
in 50 miles on either side of the proposed landing loca-
tion.’’. 
SEC. 212. ENVIRONMENTAL STUDIES. 
Section 20(d) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1346) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following: 
‘‘(2) For all programs, lease sales, leases, and 
actions under this Act, the following shall apply re-
garding the application of the National Environ-
mental Policy Act of 1969: 
‘‘(A) Granting or directing lease suspen-
sions and the conduct of all preliminary activi-
ties on outer Continental Shelf tracts, including 
seismic activities, are categorically excluded 
from the need to prepare either an environ-
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mental assessment or an environmental impact 
statement, and the Secretary shall not be re-
quired to analyze whether any exceptions to a 
categorical exclusion apply for activities con-
ducted under the authority of this Act. 
‘‘(B) The environmental impact statement 
developed in support of each 5-Year Oil and 
Gas Leasing Program provides the environ-
mental analysis for all lease sales to be con-
ducted under the program and such sales shall 
not be subject to further environmental anal-
ysis. 
‘‘(C) Exploration plans shall not be subject 
to any requirement to prepare an environmental 
impact statement, and the Secretary may find 
that exploration plans are eligible for categor-
ical exclusion due to the impacts already being 
considered within an environmental impact 
statement or due to mitigation measures in-
cluded within the plan. 
‘‘(D) Within each OCS Planning Area, 
after the preparation of the first development 
and production plan environmental impact 
statement for a leased tract within the Area, fu-
ture development and production plans for 
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leased tracts within the Area shall only require 
the preparation of an environmental assessment 
unless the most recent development and produc-
tion plan environmental impact statement with-
in the Area was finalized more than 10 years 
prior to the date of the approval of the plan, in 
which case an environmental impact statement 
shall be required.’’. 
SEC. 213. OUTER CONTINENTAL SHELF INCOMPATIBLE 
USE. 
(a) IN GENERAL.—No Federal agency may permit 
construction or operation (or both) of any facility, or des-
ignate or maintain a restricted transportation corridor or 
operating area on the Federal outer Continental Shelf or 
in State waters, that will be incompatible with, as deter-
mined by the Secretary of the Interior, oil and gas or nat-
ural gas leasing and substantially full exploration and pro-
duction of tracts that are geologically prospective for oil 
or natural gas (or both). 
(b) EXCEPTIONS.—Subsection (a) shall not apply to 
any facility, transportation corridor, or operating area the 
construction, operation, designation, or maintenance of 
which is or will be— 
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