‘‘SEC. 10. STATE APPROVAL REQUIREMENT WITH RESPECT 
TO OIL AND NATURAL GAS LEASING. 
‘‘(a) IN GENERAL.—The Secretary may not issue any 
lease authorizing exploration for, or development of, oil 
and natural gas in any area of the outer Continental Shelf 
that is located within 25 miles of the coastline of a State 
unless the State has enacted a law approving of the 
issuance of such leases by the Secretary. 
‘‘(b) STATE APPROVAL PERMANENT.—Repeal of 
such a law by a State shall have no effect for purposes 
of subsection (a).’’. 
SEC. 4. SHARING OF REVENUES. 
(a) IN GENERAL.—Section 8(g) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337(g)) is amended— 
(1) in paragraph (2) by striking ‘‘Notwith-
standing’’ and inserting ‘‘Except as provided in 
paragraph (6), and notwithstanding’’; 
(2) by redesignating paragraphs (6) and (7) as 
paragraphs (7) and (8); and 
(3) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) ROYALTIES UNDER QUALIFIED OIL AND 
GAS LEASES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), of amounts received by the 
United States as royalties under any qualified 
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oil and gas lease on submerged lands that are 
located within the seaward boundaries of a 
State established under section 4(a)(2)(A)— 
‘‘(i) 12.5 percent shall be deposited in 
the general fund of the Treasury; 
‘‘(ii) 12.5 percent shall be deposited in 
the Renewable Energy Reserve established 
by section 5 of the MORE Act of 2011; 
and 
‘‘(iii) 75 percent shall be paid to the 
States that are producing States with re-
spect to those submerged lands. 
‘‘(B) LEASE TRACTS WITHIN 25 MILES OF 
THE COASTLINE.—Of amounts received by the 
United States as royalties under any qualified 
oil and gas lease on submerged lands that are 
located within 25 miles of the coastline of a 
State and within the seaward boundaries of a 
State established under section 4(a)(2)(A)— 
‘‘(i) 5 percent shall be deposited in 
the general fund of the Treasury; 
‘‘(ii) 5 percent shall be deposited in 
the Renewable Energy Reserve established 
by section 5 of the MORE Act of 2011; 
and 
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‘‘(iii) 90 percent shall be paid to the 
States that are producing States with re-
spect to those submerged lands. 
‘‘(C) LEASED
TRACT
THAT
LIES
PAR-
TIALLY WITHIN THE SEAWARD BOUNDARIES OF 
A STATE.—In the case of a leased tract that lies 
partially within the seaward boundaries of a 
State, the amounts of royalties from such tract 
that are subject to subparagraph (A) or (B), as 
applicable, with respect to such State shall be 
a percentage of the total amounts of royalties 
from such tract that is equivalent to the total 
percentage of surface acreage of the tract that 
lies within such seaward boundaries. 
‘‘(D) DEFINITIONS.—In this paragraph: 
‘‘(i) ADJACENT
STATE.—The term 
‘adjacent State’ means, with respect to any 
program, plan, lease sale, leased tract or 
other activity, proposed, conducted, or ap-
proved pursuant to the provisions of this 
Act, any State the laws of which are de-
clared, pursuant to section 4(a)(2), to be 
the law of the United States for the por-
tion of the outer Continental Shelf on 
which such program, plan, lease sale, 
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leased tract, or activity appertains or is, or 
is proposed to be, conducted. 
‘‘(ii) ADJACENT
ZONE.—The term 
‘adjacent zone’ means, with respect to any 
program, plan, lease sale, leased tract, or 
other activity, proposed, conducted, or ap-
proved pursuant to the provisions of this 
Act, the portion of the outer Continental 
Shelf for which the laws of a particular ad-
jacent State are declared, pursuant to sec-
tion 4(a)(2), to be the law of the United 
States. 
‘‘(iii) PRODUCING STATE.—The term 
‘producing State’ means an adjacent State 
having an adjacent zone containing leased 
tracts from which are derived royalties 
under a lease under this Act. 
‘‘(iv) STATE.—The term ‘State’ in-
cludes Puerto Rico and the other terri-
tories of the United States. 
‘‘(v) 
QUALIFIED
OIL
AND
GAS 
LEASE.—The term ‘qualified oil and gas 
lease’ means a lease under this Act grant-
ed after the date of the enactment of the 
MORE Act of 2011 that authorizes devel-
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opment and production of oil and natural 
gas and associated condensate. 
‘‘(E) APPLICATION.—This paragraph shall 
apply to royalties received by the United States 
after September 30, 2011.’’. 
(b) ESTABLISHMENT OF STATE SEAWARD BOUND-
ARIES.—Section 4(a)(2)(A) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1333(a)(2)(A)) is amended in the 
first sentence by striking ‘‘, and the President’’ and all 
that follows through the end of the sentence and inserting 
the following: ‘‘. Such extended lines are deemed to be as 
indicated on the maps for each Outer Continental Shelf 
region entitled ‘Alaska OCS Region State Adjacent Zone 
and OCS Planning Areas’, ‘Pacific OCS Region State Ad-
jacent Zones and OCS Planning Areas’, ‘Gulf of Mexico 
OCS Region State Adjacent Zones and OCS Planning 
Areas’, and ‘Atlantic OCS Region State Adjacent Zones 
and OCS Planning Areas’, all of which are dated Sep-
tember 2005 and on file in the Office of the Director, Min-
erals Management Service. The preceding sentence shall 
not apply with respect to the treatment under section 105 
of the Gulf of Mexico Energy Security Act of 2006 (title 
I of division C of Public Law 109–432) of qualified outer 
Continental Shelf revenues deposited and disbursed under 
subsection (a)(2) of that section.’’. 
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