I
105TH CONGRESS
2D SESSION
H. R. 4717
To provide Outer Continental Shelf Impact Assistance to State and local
governments, to amend the Land and Water Conservation Fund Act
of 1965, the Urban Park and Recreation Recovery Act of 1978, and
the Federal Aid in Wildlife Restoration Act (commonly referred to as
the Pittman-Robertson Act) to establish a fund to meet the outdoor
conservation and recreation needs of the American people, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 7, 1998
Mr. YOUNG of Alaska (for himself, Mr. DINGELL, Mr. TAUZIN, Mr. BAKER,
Mr. JOHN, Mr. CHAMBLISS, Mr. BOB SCHAFFER of Colorado, Mr.
LAMPSON, Mr. BARCIA, and Mr. JEFFERSON) introduced the following
bill; which was referred to the Committee on Resources
A BILL
To provide Outer Continental Shelf Impact Assistance to
State and local governments, to amend the Land and
Water Conservation Fund Act of 1965, the Urban Park
and Recreation Recovery Act of 1978, and the Federal
Aid in Wildlife Restoration Act (commonly referred to
as the Pittman-Robertson Act) to establish a fund to
meet the outdoor conservation and recreation needs of
the American people, and for other purposes.
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 ‘‘Conservation and Rein-
vestment Act of 1998’’.
TITLE I—OUTER CONTINENTAL
SHELF IMPACT ASSISTANCE
SEC. 101. FINDINGS.
The Congress finds and declares that—
(1) the Nation owns valuable mineral assets
that are located both onshore and on the Federal
Outer Continental Shelf and the policy of the Fed-
eral Government is to develop those resources for
the benefit of the Nation, under certain restrictions
that are designed to prevent environmental damage
and other adverse impacts;
(2) development of these resources of the Na-
tion is accompanied by unavoidable environmental
impacts and public service impacts in the States that
host this development whether the development oc-
curs onshore or on the Federal Outer Continental
Shelf;
(3) the Federal Government has a responsibility
to assist States that host the development of Federal
mineral assets to mitigate adverse environmental
and public service impacts incurred due to that de-
velopment;
(4) the Federal Government discharges its re-
sponsibility to States that host onshore Federal min-
eral development by sharing 50 percent of the reve-
nue derived from the mineral development with the
host State pursuant to section 35 of the Mineral
Leasing Act;
(5) today Federal mineral development is occur-
ring as far as 200 miles offshore and occurs off the
coasts of only 6 States and section 8(g) of the Outer
Continental Shelf Lands Act does not adequately
compensate these States for the onshore impacts of
the offshore Federal mineral development;
(6) Federal Outer Continental Shelf mineral de-
velopment is an important and secure source of our
Nation’s supply of oil and natural gas;
(7) the Outer Continental Shelf Advisory Com-
mittee of the Department of the Interior, consisting
of representatives of coastal States, recommended in
October 1997, that Federal mineral revenue derived
from the entire Outer Continental Shelf be shared
with all coastal States and territories to mitigate on-
shore impacts from Federal offshore mineral devel-
opment and for other environmental mitigation;
(8) Federal mineral assets are a nonrenewable,
capital asset of the Nation; the production and sale
of this asset produces revenue to the Nation that is
also a capital asset of the Nation; thus, a portion of
the revenue derived from the production and sale of
Federal mineral should be reinvested in the Nation
through environmental mitigation and public service
improvements; and
(9) it is fair to share a portion of the revenue
derived from Federal Outer Continental Shelf pro-
duction with the impacted States; an emphasis on
where this production takes place should not be con-
strued as incentive for development.
SEC. 102. DEFINITIONS.
For purposes of this title:
(1) The term ‘‘allocable share’’ means, for a
coastal State, that portion of revenue that is avail-
able to be distributed to that coastal State under
this title. For an eligible political subdivision of a
coastal State, such term means that portion of reve-
nue that is available to be distributed to that politi-
cal subdivision under this title.
(2) The term ‘‘coastal population’’ means the
population of all political subdivisions, as determined
by the most recent official data of the Census Bu-
reau, contained in whole or in part within the des-
ignated coastal boundary of a State as defined in a
State’s coastal zone management program under the
Coastal Zone Management Act (16 U.S.C. 1455).
(3) The term ‘‘coastline’’ has the same meaning
that it has in the Submerged Lands Act (43 U.S.C.
1301 et seq.).
(4) The term ‘‘eligible political subdivision’’
means a political subdivision of a coastal State
which political subdivision has a seaward boundary
that lies within a distance of 200 miles from the ge-
ographic center of any leased tract. The Secretary
shall annually provide a list of all eligible political
subdivisions of each coastal State to the Governor of
such State.
(5) The term ‘‘political subdivision’’ means the
local political jurisdiction immediately below the level
of State government, including counties, parishes,
and boroughs. If State law recognizes an entity of
general government that functions in lieu of, and is
not within, a county, parish, or borough, the Sec-
retary may recognize an area under the jurisdiction
of such other entities of general government as a po-
litical subdivision for purposes of this title.
(6) The term ‘‘coastal State’’ means any State
of the United States bordering on the Atlantic
Ocean, the Pacific Ocean, the Arctic Ocean, the Ber-
ing Sea, the Gulf of Mexico, or any of the Great
Lakes, Puerto Rico, Guam, American Samoa, the
Virgin Islands, and the Commonwealth of the North-
ern Mariana Islands.
(7) The term ‘‘distance’’ means minimum great
circle distance, measured in statute miles.
(8) The term ‘‘fiscal year’’ means the Federal
Government’s accounting period which begins on Oc-
tober 1st and ends on September 30th, and is des-
ignated by the calendar year in which it ends.
(9) The term ‘‘Governor’’ means the highest
elected official of a coastal State.
(10) The term ‘‘leased tract’’ means a tract,
leased under section 8 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337) for the purpose
of drilling for, developing and producing oil and nat-
ural gas resources, which is a unit consisting of ei-
ther a block, a portion of a block, a combination of
blocks and/or portions of blocks, as specified in the
lease, and as depicted on an Outer Continental Shelf
Official Protraction Diagram.
(11) The term ‘‘qualified Outer Continental
Shelf revenues’’ means all moneys received by the
United States from each leased tract or portion of
a leased tract lying seaward of the zone defined and
governed by section 8(g) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(g)), or lying with-
in such zone but to which section 8(g) does not
apply, the geographic center of which lies within a
distance of 200 miles from any part of the coastline
of any coastal State, including bonus bids, rents,
royalties (including payments for royalty taken in
kind and sold), net profit share payments, and relat-
ed late-payment interest from natural gas and oil
leases issued pursuant to the Outer Continental
Shelf Lands Act.
(12) The term ‘‘Outer Continental Shelf’’
means all submerged lands lying seaward and out-
side of the area of ‘‘lands beneath navigable waters’’
as defined in section 2(a) of the Submerged lands
Act (43 U.S.C. 1301(a)), and of which the subsoil
and seabed appertain to the United States and are
subject to its jurisdiction and control.
(13) The term ‘‘Secretary’’ means the Secretary
of the Interior or the Secretary’s designee.
SEC. 103. IMPACT ASSISTANCE FORMULA AND PAYMENTS.
(a) ESTABLISHMENT OF FUND.—(1) There is estab-
lished in the Treasury of the United States a fund which
shall be known as the ‘‘Outer Continental Shelf Impact
Assistance Fund’’ (referred to in this Act as ‘‘the Fund’’).
The Secretary shall deposit in the Fund in this section
27 percent of the qualified Outer Continental Shelf reve-
nues.
(2) The Secretary of the Treasury shall invest mon-
eys in the Fund that are excess to expenditures at the
written request of the Secretary, in public debt securities
with maturities suitable to the needs of the Fund, as de-
termined by the Secretary, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding mar-
ketable obligations of the United States of comparable ma-
turity.
(b) PAYMENT TO STATES.—Notwithstanding section
9 of the Outer Continental Shelf Lands Act (43 U.S.C.
1338), the Secretary shall, without further appropriation,
make payments in each fiscal year to coastal States and
to eligible political subdivisions equal to the amount depos-
ited in the Fund for the prior fiscal year, together with
the portion of interest earned from investment of the
funds which corresponds to that amount (reduced by any
refunds paid under section 107(b)). Such payments shall
be allocated among the coastal States and eligible political
subdivisions as provided in this section.
(c) 
DETERMINATION
OF
STATES’ 
ALLOCABLE
SHARES.—