I 
108TH CONGRESS 
1ST SESSION 
H. R. 910
To provide for the distribution to coastal States and counties of revenues 
collected under the Outer Continental Shelf Lands Act. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2003
Mr. ROHRABACHER introduced the following bill; which was referred to the 
Committee on Resources 
A BILL 
To provide for the distribution to coastal States and counties 
of revenues collected under the Outer Continental Shelf 
Lands Act.
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 ‘‘Fair Disbursement of 
Offshore Oil Revenue Act of 2003’’. 
SEC. 2. FINDINGS. 
The Congress finds that—
(1) the demand for energy in the United States 
is increasing and will continue to increase for the 
foreseeable future;
(2) domestic production of oil and gas is declin-
ing; 
(3) the United States continues to be overly de-
pendent on foreign sources of oil and gas; 
(4) the Outer Continental Shelf contains signifi-
cant quantities of oil and gas that should be devel-
oped to meet United States energy needs while safe-
guarding important environmental values; 
(5) the exploration, development, and produc-
tion of Outer Continental Shelf resources, and the 
siting of related energy facilities, may impact various 
State and local governments; and 
(6) coastal States and counties should be pro-
vided with a share of the revenues derived from 
Outer Continental Shelf oil and gas leasing, explo-
ration, development, and production activities. 
SEC. 3. DEFINITIONS. 
For purposes of this Act—
(1) the term ‘‘coastal State’’ means any State 
of the United States bordering on the Atlantic 
Ocean, the Pacific Ocean, the Arctic Ocean, or the 
Gulf of Mexico; 
(2) the term ‘‘coastal county’’ means a unit of 
general government immediately below the level of 
State government, as determined by the Secretary
under section 6, with jurisdiction over lands along 
the coast line; 
(3) the term ‘‘coast line’’ has the meaning given 
such term under the Submerged Lands Act (43 
U.S.C. 1301 et seq.); 
(4) the term ‘‘Outer Continental Shelf’’ has the 
meaning given the term ‘‘outer Continental Shelf’’ 
under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.); 
(5) the term ‘‘Secretary’’ means the Secretary 
of the Interior; and 
(6) the term ‘‘revenues’’ means all bonuses, 
rents, royalties, and other moneys collected under 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.), and interest thereon. 
SEC. 4. COASTAL COMMUNITIES OUTER CONTINENTAL 
SHELF RECEIPT FUND. 
(a) ESTABLISHMENT.—There is established an inter-
est bearing account in the Treasury of the United States 
to be known as the Coastal Communities Outer Conti-
nental Shelf Receipt Fund (hereafter in this Act referred 
to as ‘‘the Fund’’). 
(b) PAYMENTS TO FUND.—Beginning in fiscal year 
2004, the Secretary shall pay into the Fund all revenues 
described in subsection (c) that are attributable to an
Outer Continental Shelf lease, any part of which is within 
200 geographical miles of the coast line. The Secretary 
may adjust amounts in the Fund at any time to account 
for overpayments, underpayments, and errors. 
(c) NEW REVENUES.—Subsection (b) shall apply only 
to—
(1) bonus revenues under a lease if no bonus 
revenues have been received by the Secretary under 
that lease before January 1, 2003; 
(2) rent revenues under a lease if no rent reve-
nues have been received by the Secretary under that 
lease before January 1, 2003; 
(3) royalty revenues under a lease if no royalty 
revenues have been received by the Secretary under 
that lease before January 1, 2003; and 
(4) other revenues under a lease if the lease 
was issued on or after January 1, 2003. 
SEC. 5. DISPOSITION OF FUND. 
(a) STATE SHARE.—(1) Six months after the end of 
fiscal year 2004, and annually thereafter, the Secretary 
shall pay from the Fund to each coastal State one-half 
of such revenues paid into the Fund with respect to the 
fiscal year most recently completed, and any interest 
earned thereon, as may be attributable to that State.
(2) In order to determine to which State revenues are 
attributable for purposes of this Act, the Secretary shall 
delimit the lateral boundaries between the coastal States 
to a point 200 geographic miles seaward of the coast line. 
Such boundaries shall be set according to the following 
principles, listed in order of the priority of their applica-
tion: 
(A) Any judicial decrees or interstate compacts 
delimiting lateral offshore boundaries between coast-
al States. 
(B) Principles of domestic and international law 
governing the delimitation of lateral offshore bound-
aries. 
(C) The desirability of following existing lease 
boundaries and block lines on the Secretary’s official 
protraction diagrams. 
(3) Each coastal State, before receiving funds under 
this subsection, shall annually enact the necessary legisla-
tion to provide any State permits required for onshore fa-
cilities needed to support offshore oil or gas development 
or production in the area adjacent to that coastal State. 
If a State fails to enact such legislation, the funds attrib-
utable to that State shall not be disbursed, and the Sec-
retary shall take into consideration that failure before of-
fering any additional leases for sale in the offshore area 
adjacent to that State. 
(b) COASTAL COUNTY SHARE.—(1) At the same time 
that the Secretary pays revenues to coastal States under 
subsection (a), the Secretary shall pay to coastal counties 
within that State the remaining one-half of the revenues, 
and any interest earned on those revenues, in the Fund 
for that fiscal year attributable to that State. 
(2) In order to determine to which coastal county rev-
enues are attributable for purposes of this Act, the Sec-
retary shall delimit the lateral boundaries between the 
coastal counties to a point 200 geographic miles seaward 
of the coast line. Such boundaries shall be set according 
to the following principles, listed in order of the priority 
of their application: 
(A) Existing boundaries between coastal coun-
ties with valid supporting legal authority. 
(B) The desirability of following existing lease 
boundaries and block lines on the Secretary’s official 
protraction diagrams. 
(C) The principle that, to the extent consistent 
with subparagraphs (A) and (B), the size of the 
coastal county’s adjacent offshore area, as a percent-
age of all of that State’s adjacent offshore areas, 
shall be based on a formula giving equal weight to—
(i) the coastal county’s coast line as a per-
centage of the State’s coast line, calculated 
using the same large-scale charts of the Na-
tional Ocean Service that are used to delimit 
the territorial sea under international law; and 
(ii) the coastal county’s population as a 
percentage of the population of all coastal coun-
ties in the State, calculated by the Secretary 
using the best available national census data. 
(3) Each coastal county, before receiving funds under 
this subsection, shall annually enact by county statute or 
ordinance the necessary legislation to provide the local 
permits required for onshore facilities needed to support 
offshore oil or gas development or production in the area 
adjacent to that coastal county, and the necessary legisla-
tion to expend such funds. If a county fails to enact such 
legislation, the funds attributable to that county shall not 
be disbursed, and the Secretary shall take into consider-
ation that failure before offering any additional leases for 
sale in the offshore area adjacent to that county. 
(c) USE OF FUNDS BY STATES.—Each coastal State 
shall use funds received pursuant to subsection (a)—
(1) to pay for the administrative costs the State 
incurs in the leasing and permitting process as spec-
ified in the Outer Continental Shelf Lands Act;
(2) for such environmental and natural resource 
projects as the State determines; or 
(3) for such educational projects as the State 
determines. 
(d) COUNTY DISTRIBUTION OF FUNDS.—Each coast-
al county shall develop a formula to allocate at least two-
thirds of the funds received pursuant to subsection (b) to 
local communities within its jurisdiction based on the 
proximity of these communities to the coast, except that 
funds shall be withheld from communities that the Sec-
retary determines have failed to issue permits required for 
onshore facilities needed to support offshore oil or gas de-
velopment or production in the area adjacent to that 
coastal county. 
SEC. 6. DESIGNATION OF COASTAL COUNTIES. 
For the purposes of this Act, the Secretary, after con-
sultation with the Governor of each coastal State, shall 
determine which counties, parishes, boroughs, tribal gov-
ernments, or other units of general government imme-
diately below the level of State government shall be des-
ignated as coastal counties. 
SEC. 7. LIMITATIONS ON APPLICABILITY OF BOUNDARIES. 
The boundaries and areas delimited under section 5 
are solely for the purposes of this Act.
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