229 
‘‘future oil discharges.’’ and inserting the 
following: 
‘‘(B) CONDITIONS.—The Interagency Com-
mittee, acting through the Administrator of the 
National Oceanic and Atmospheric Administra-
tion, shall conduct research activities under 
subparagraph (A) for areas in which— 
‘‘(i) the amount of oil discharged ex-
ceeds 250,000 gallons; and 
‘‘(ii) a study of the long-term environ-
mental effects of the discharge would be of 
significant scientific value, especially for 
preventing or responding to future oil dis-
charges.’’; 
(ii) by striking ‘‘ATHOS I, and’’ and 
inserting ‘‘ATHOS I;’’; and 
(iii) by striking the period at the end 
and inserting ‘‘; Prince William Sound, 
where oil was discharged by the EXXON 
VALDEZ; and the Gulf of Mexico, where 
oil was discharged by the DEEPWATER 
HORIZON.’’; and 
(C) in subparagraph (C) by striking ‘‘Re-
search’’ and inserting ‘‘COORDINATION.—Re-
search’’. 
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230 
(5) 
DEMONSTRATION
PROJECTS.—Section 
7001(c)(6) of such Act (33 U.S.C. 2761(c)(6)) is 
amended— 
(A) by striking the first sentence and in-
serting the following: ‘‘The United States Coast 
Guard, in conjunction with such agencies as the 
President may designate, shall conduct a total 
of 2 port oil pollution minimization demonstra-
tion projects, 1 with the Ports of Los Angeles 
and Long Beach, California, and 1 with a port 
on the Great Lakes, for the purpose of devel-
oping and demonstrating integrated port oil 
pollution prevention and cleanup systems that 
utilize the information and implement the im-
proved practices and technologies developed 
from the research, development, and demonstra-
tion program established in this section.’’; and 
(B) in the second sentence by striking ‘‘oil 
spill’’ and inserting ‘‘oil discharge’’. 
(6) SIMULATED
ENVIRONMENTAL
TESTING.— 
Section 
7001(c)(7) 
of 
such 
Act 
(33 
U.S.C. 
2761(c)(7)) is amended by inserting ‘‘Oil pollution 
technology testing and evaluations shall be given pri-
ority over all other activities performed at such Re-
search Center.’’ after ‘‘evaluations.’’. 
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231 
(7) REGIONAL RESEARCH PROGRAM.— 
(A) IN GENERAL.—Section 7001(c)(8) of 
such Act (33 U.S.C. 2761(c)(8)) is amended— 
(i) in subparagraph (A)— 
(I) by striking ‘‘program of com-
petitive grants’’ and inserting ‘‘pro-
gram of peer-reviewed, competitive 
grants’’; and 
(II) by striking ‘‘(1989)’’ and in-
serting ‘‘(2009)’’; 
(ii) in subparagraph (C) by striking 
‘‘the entity or entities which’’ and inserting 
‘‘at least one entity that’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(H) In carrying out this paragraph, the 
Interagency Committee shall coordinate the 
program of peer-reviewed, competitive grants to 
universities or other research institutions, in-
cluding Minority Serving Institutions as defined 
under section 371(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1067q(a)), and provide 
consideration to such institutions in the rec-
ommendations for awarding grants.’’. 
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232 
(B) FUNDING.—Section 7001(c)(9) of such 
Act (33 U.S.C. 2761(c)(9)) is amended by 
striking ‘‘1991’’ and all that follows through 
‘‘shall be available’’ and inserting ‘‘2011, 2012, 
2013, 2014, and 2015, there are authorized to 
be appropriated from amounts in the Fund 
$12,000,000’’. 
(e) 
INTERNATIONAL
COOPERATION.—Section 
7001(d) of such Act (33 U.S.C. 2761(d)) is amended to 
read as follows: 
‘‘(d) INTERNATIONAL COOPERATION.—In accordance 
with the research plan submitted under subsection (b), the 
Interagency Committee shall engage in international co-
operation by— 
‘‘(1) harnessing global expertise through col-
laborative partnerships with foreign governments 
and research entities, and domestic and foreign pri-
vate actors, including nongovernmental organizations 
and private sector companies; and 
‘‘(2) leveraging public and private capital, tech-
nology, expertise, and services towards innovative 
models that can be instituted to conduct collabo-
rative oil pollution research, development, and dem-
onstration activities, including controlled field tests 
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of oil discharges and other activities designed to im-
prove oil recovery and cleanup.’’. 
(f) ANNUAL REPORTS.—Section 7001(e) of such Act 
(33 U.S.C. 2761(e)) is amended to read as follows: 
‘‘(e) ANNUAL REPORT.— 
‘‘(1) Concurrent with the submission to Con-
gress of the President’s annual budget request in 
each year after the date of enactment of the Oil Pol-
lution Research and Development Program Reau-
thorization Act of 2011, the Chair of the Inter-
agency Committee shall submit to Congress a report 
describing the— 
‘‘(A) activities carried out under this sec-
tion in the preceding fiscal year, including— 
‘‘(i) a description of major research 
conducted on oil discharge prevention, de-
tection, containment, recovery, and mitiga-
tion techniques in all environments by each 
agency described in subsection (a)(3)(A) 
and (B); and 
‘‘(ii) a summary of— 
‘‘(I) projects in which the agency 
contributed funding or other re-
sources; 
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234 
‘‘(II) major projects undertaken 
by State and tribal governments, and 
foreign governments; and 
‘‘(III) major projects undertaken 
by the private sector and educational 
institutions; 
‘‘(B) activities being carried out under this 
section in the current fiscal year, including a 
description of major research and development 
activities on oil discharge prevention, detection, 
containment, recovery, and mitigation tech-
nologies and techniques in all environments that 
each agency will conduct or contribute to; and 
‘‘(C) activities proposed to be carried out 
under this section in the subsequent fiscal year, 
including an analysis of how these activities will 
further the purposes of the program authorized 
by this section. 
‘‘(2) If the National Academy of Sciences pro-
vides recommendations on the research plan under 
subsection (b)(3), the Chair shall include, in the first 
annual report under paragraph (1) of this sub-
section, a description of those recommendations in-
corporated into the research plan, and a description 
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235 
of, and explanation for, any recommendations that 
are not included in such plan.’’. 
(g) ADVISORY COMMITTEE.—Section 7001 of such 
Act (33 U.S.C. 2761) is further amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) ADVISORY COMMITTEE.— 
‘‘(1) ESTABLISHMENT.—Not later than 90 days 
after the date of enactment of the Oil Pollution Re-
search and Development Program Reauthorization 
Act of 2011, the Chair of the Interagency Com-
mittee shall establish an advisory committee to be 
known as the Oil Pollution Research Advisory Com-
mittee (in this subsection referred to as the ‘advisory 
committee’). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The advisory com-
mittee shall be composed of members appointed 
by the Chair, in consultation with each member 
agency described in subsection (a)(3), includ-
ing— 
‘‘(i) individuals with extensive knowl-
edge and research experience or oper-
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236 
ational knowledge of prevention, detection, 
response, containment, and mitigation of 
oil discharges; 
‘‘(ii) individuals broadly representative 
of stakeholders affected by oil discharges; 
and 
‘‘(iii) other individuals, as determined 
by the Chair. 
‘‘(B) LIMITATIONS.—The Chair shall— 
‘‘(i) appoint no more than 25 mem-
bers that shall not include representatives 
of the Federal Government, but may in-
clude representatives from State, tribal, 
and local governments; and 
‘‘(ii) ensure that no class of individ-
uals described in clause (ii) or (iii) of sub-
paragraph (A) comprises more than 1⁄3 of 
the membership of the advisory committee. 
‘‘(C) TERMS OF SERVICE.— 
‘‘(i) IN GENERAL.—Members shall be 
appointed for a 3-year term and may serve 
for not more than 2 terms, except as pro-
vided in clause (iii). 
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‘‘(ii) VACANCIES.—Vacancy appoint-
ments shall be for the remainder of the un-
expired term of the vacancy. 
‘‘(iii) SPECIAL RULE.—If a member is 
appointed to fill a vacancy and the remain-
der of the unexpired term is less than 1 
year, the member may subsequently be ap-
pointed for 2 full terms. 
‘‘(D) COMPENSATION
AND
EXPENSES.— 
Members of the advisory committee shall not be 
compensated for service on the advisory com-
mittee, but may be allowed travel expenses, in-
cluding per diem in lieu of subsistence, in ac-
cordance with subchapter I of chapter 57 of 
title 5, United States Code. 
‘‘(3) DUTIES.—The advisory committee shall 
review, advise, and comment on Interagency Com-
mittee activities, including the following: 
‘‘(A) Management and functioning of the 
Interagency Committee. 
‘‘(B) Collaboration of the Interagency 
Committee and the agencies listed in subsection 
(a)(3)(B). 
‘‘(C) The research and technology develop-
ment of new or improved response capabilities. 
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‘‘(D) The use of cost-effective research 
mechanisms. 
‘‘(E) Research, computation, and modeling 
needs and other resources needed to develop a 
comprehensive program of oil pollution re-
search. 
‘‘(4) SUBCOMMITTEES.—The advisory com-
mittee may establish subcommittees of its members. 
‘‘(5) MEETINGS.—The advisory committee shall 
meet at least once per year and at other times at the 
call of the Chair of the Interagency Committee. 
‘‘(6) REPORT.—The advisory committee shall 
submit biennial reports to the Interagency Com-
mittee and Congress on the function, activities, and 
progress of the Interagency Committee and the pro-
grams established under this section. 
‘‘(7) EXPIRATION.—Section 14 of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the advisory committee.’’. 
(h) FUNDING.— 
(1) IN GENERAL.—Section 7001(g) of such Act, 
as redesignated by subsection (g) of this section, is 
amended to read as follows: 
‘‘(g) FUNDING.—From the amounts authorized in 
section 321 of the Implementing the Recommendations of 
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the BP Oil Spill Commission Act of 2011, there are au-
thorized to be appropriated— 
‘‘(1) $16,000,000 to the Administrator of the 
National Oceanic and Atmospheric Administration 
annually to carry out this section; and 
‘‘(2) $2,000,000 for each of fiscal years 2011, 
2012, 2013, and 2014 to carry out the activities in 
subsection (c)(6).’’. 
(i) ACCESS
TO
RESEARCH
DURING
AN
EMER-
GENCY.—Section 7001 of such Act (33 U.S.C. 2761) is 
amended by adding at the end the following new sub-
section: 
‘‘(h) ACCESS
TO RESEARCH DURING
AN EMER-
GENCY.—Any entity that receives Federal funding for re-
search, the methodologies or results of which may be use-
ful for response activities in the event of an oil discharge 
incident described in sections 300.300–334 of title 40 of 
the Code of Federal Regulations, shall, upon request to 
that entity, make the methodologies or results of such re-
search available to the Interagency Committee and the 
Federal On-Scene Coordinator (as defined in section 
311(a)(21) of the Federal Water Pollution Control Act 
(33 U.S.C. 1321(a)(21))). Any methodologies or research 
results made available under this subsection shall be for 
use only for purposes of the response activities with re-
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240 
spect to the oil discharge incident, and shall not be avail-
able for disclosure under section 552 of title 5, United 
States Code, or included in information made publicly 
available pursuant to this Act.’’. 
SEC. 635. OIL SPILL LIABILITY TRUST FUND. 
(a) ADVANCE PAYMENTS.—Section 1012 of the Oil 
Pollution Act of 1990 (33 U.S.C. 2712) is amended by 
adding at the end the following: 
‘‘(m) ADVANCE PAYMENTS.—The President shall 
promulgate regulations that allow advance payments to be 
made from the Fund to States and political subdivisions 
of States for actions taken to prepare for and mitigate 
substantial threats from the discharge of oil.’’. 
(b) OIL SPILL LIABILITY TRUST FUND.— 
(1) LIMITATIONS ON EXPENDITURES.—Section 
9509(c) of the Internal Revenue Code of 1986 (re-
lating to expenditures from the Oil Spill Liability 
Trust Fund) is amended— 
(A) by striking paragraph (2); 
(B) by striking ‘‘EXPENDITURES’’ and all 
that follows through ‘‘Amounts in’’ and insert-
ing ‘‘EXPENDITURES.—Amounts in’’; and 
(C) by redesignating subparagraphs (A) 
through (F) as paragraphs (1) through (6), re-
spectively, and indenting appropriately. 
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241 
(2) AUTHORITY TO BORROW.—Section 9509(d) 
of the Internal Revenue Code of 1986 (relating to 
authority to borrow for the Oil Spill Liability Trust 
Fund) is amended— 
(A) by striking paragraph (2); 
(B) by redesignating paragraph (3) as 
paragraph (2); and 
(C) in paragraph (2) (as so redesig-
nated)— 
(i) by striking subparagraph (B); and 
(ii) by redesignating subparagraph 
(C) as subparagraph (B). 
TITLE VII—DILIGENT DEVELOP-
MENT OF FEDERAL OIL AND 
GAS LEASES 
SEC. 701. CLARIFICATION. 
The lands subject to each lease that authorizes the 
exploration for or development or production of oil or nat-
ural gas that is issued under a provision of law described 
in section 702 shall be diligently developed for such pro-
duction by the person holding the lease in order to ensure 
timely production from the lease. 
SEC. 702. COVERED PROVISIONS. 
The provisions referred to in the above section are 
the following: 
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(1) Section 17 of the Mineral Leasing Act (30 
U.S.C. 226). 
(2) Section 107 of the Naval Petroleum Re-
serves Production Act of 1976 (42 U.S.C. 6506a). 
(3) The Outer Continental Shelf Lands Act (43 
11 U.S.C. 1331 et seq.). 
(4) The Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.). 
SEC. 703. REGULATIONS. 
The Secretary of the Interior shall issue regulations 
within 180 days after the date of enactment of this Act 
that establish what constitutes diligently developing for 
purposes of this title. 
SEC. 704. RESOURCE ESTIMATES AND LEASING PROGRAM 
MANAGEMENT INDICATORS. 
(a) IN GENERAL.—The Secretary of the Interior shall 
annually collect and report to Congress— 
(1) the number of leases and the number of 
acres of land under Federal onshore oil and gas 
lease, per State and per year the lease was issued— 
(A) on which seismic exploration activity is 
occurring or has occurred; 
(B) on which permits to drill have been ap-
plied for, but not yet awarded; 
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243 
(C) on which permits to drill have been ap-
proved, but no drilling has yet occurred; 
(D) on which wells have been drilled but 
no production has occurred; and 
(E) on which production is occurring; 
(2) resource estimates for and the number of 
acres of Federal onshore and offshore lands, by 
State or offshore planning area— 
(A) under lease, per year the lease was 
issued; 
(B) under lease and not producing, per 
year the lease was issued; 
(C) under lease and drilled, but not pro-
ducing, per year the lease was issued; 
(D) offered for lease in a lease sale con-
ducted during the previous year, but not leased; 
and 
(E) available for leasing but not under 
lease or offered for leasing in the previous year; 
(3) resource estimates for and the number of 
acres of unleased Federal onshore and offshore land 
available for oil and gas leasing; 
(4) resource estimates for and the number of 
acres of areas of the Outer Continental Shelf— 
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244 
(A) included in proposed sale areas in the 
most recent 5-year plan developed by the Sec-
retary pursuant to section 18 of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1344); and 
(B) available for oil and gas leasing but 
not included in the 5-year plan; 
(5) the number of leases and the number of 
acres of Federal onshore land, per Bureau of Land 
Management field office, offered in a lease sale con-
ducted during the previous year, including data on 
the number of protests filed and how many lease 
tracts were withdrawn as a result of such protests, 
and how many leases were offered and issued with 
stipulations as a result of those protests, including 
the name of the entity or entities filing the protests; 
(6) the number of applications for permits to 
drill received, approved, pending, and denied, in the 
previous year per Bureau of Land Management and 
Minerals Management Service field office; 
(7) the number of environmental inspections 
conducted per State and per Bureau of Land Man-
agement and Minerals Management Service field of-
fice in the previous year; and 
(8) the number of full time staff equivalent 
(FTEs) devoted to permit processing and oversight 
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per Bureau of Land Management and Minerals 
Management Service field office. 
(b) COVERED PROVISIONS.—Subsection (a) shall 
apply with respect to leases and land eligible for leasing 
pursuant to— 
(1) section 17 of the Mineral Leasing Act (30 
U.S.C. 226); 
(2) the Mineral Leasing Act for Acquired 
Lands (30 U.S.C. 351 et seq.); 
(3) section 107 of the Naval Petroleum Re-
serves Production Act of 1976 (42 U.S.C. 6506a);or 
(4) the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.). 
SEC. 705. PRODUCTION INCENTIVE FEE. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
shall, within 180 days after the date of enactment of this 
Act, issue regulations to establish an annual production 
incentive fee with respect to Federal onshore and offshore 
lands that are subject to a lease for production of oil or 
natural gas under which production is not occurring. Such 
fee shall apply with respect to lands that are subject to 
such a lease that is in effect on the date final regulations 
are promulgated under this subsection or that is issued 
thereafter. 
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(e) REGULATIONS.—The Secretary of the Interior 
may issue regulations to prevent evasion of the fee under 
this section. 
TITLE VIII—NATIONAL PETRO-
LEUM RESERVE IN ALASKA 
SEC. 801. ACCELERATION OF LEASE SALES FOR NATIONAL 
PETROLEUM RESERVE IN ALASKA. 
Section 107(d) of the Naval Petroleum Reserves Pro-
duction Act of 1976 (42 U.S.C. 6506a(d)) is amended— 
(1) by striking ‘‘(d)’’ and all that follows 
through ‘‘; first lease sale’’ and inserting the fol-
lowing: 
‘‘(d) LEASE SALES.— 
‘‘(1) FIRST LEASE SALE.—The first lease sale’’; 
and 
(2) by adding at the end the following: 
‘‘(2) SUBSEQUENT
LEASE
SALES.—The Sec-
retary shall accelerate, to the maximum extent prac-
ticable, competitive and environmentally responsible 
leasing of oil and gas in the Reserve in accordance 
with this Act and all applicable environmental laws, 
including at least 1 lease sale during each of cal-
endar years 2011 through 2016.’’. 
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SEC. 802. NATIONAL PETROLEUM RESERVE IN ALASKA: 
PIPELINE CONSTRUCTION. 
The Federal Energy Regulatory Commission shall fa-
cilitate, in an environmentally responsible manner and in 
coordination with the Secretary of the Interior, the Sec-
retary of Transportation, the Secretary of Energy, and the 
State of Alaska, the construction of pipelines necessary to 
transport oil and natural gas from or through the National 
Petroleum Reserve in Alaska to existing transportation or 
processing infrastructure on the North Slope of Alaska. 
SEC. 803. PROJECT LABOR AGREEMENTS AND OTHER PIPE-
LINE REQUIREMENTS. 
(a) PROJECT LABOR AGREEMENTS.—The President, 
as a term and condition of any permit required under Fed-
eral law for the pipelines referred to in section 802, and 
in recognizing the Government’s interest in labor stability 
and in the ability of construction labor and management 
to meet the particular needs and conditions of such pipe-
lines to be developed under such permits and the special 
concerns of the holders of such permits, shall require that 
the operators of such pipelines and their agents and con-
tractors negotiate to obtain a project labor agreement for 
the employment of laborers and mechanics on production, 
maintenance, and construction for such pipelines. 
(b) PIPELINE MAINTENANCE.—The Secretary of 
Transportation shall require every pipeline operator au-
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thorized to transport oil and gas produced under Federal 
oil and gas leases in Alaska through the Trans-Alaska 
Pipeline, any pipeline constructed pursuant to this Act, 
or any other federally approved pipeline transporting oil 
and gas from the North Slope of Alaska, to certify to the 
Secretary of Transportation annually that such pipeline 
is being fully maintained and operated in an efficient man-
ner. The Secretary of Transportation shall assess appro-
priate civil penalties for violations of this requirement in 
the same manner as civil penalties are assessed for viola-
tions under section 60122(a)(1) of title 49, United States 
Code. 
SEC. 804. PROVISIONS RELATING TO LEASE TERMS IN THE 
NATIONAL PETROLEUM RESERVE IN ALASKA. 
Section 107 of the Naval Petroleum Reserves Produc-
tion Act of 1976 (as transferred, redesignated, moved, and 
amended by section 347 of the Energy Policy Act of 2005 
(119 Stat. 704; 42 U.S.C. 6506a)) is amended— 
(1) in subsection (i), by striking paragraphs (2) 
through (6); and 
(2) by striking subsection (k). 
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TITLE IX—STUDY OF ACTIONS 
TO IMPROVE THE ACCURACY 
OF COLLECTION OF ROYAL-
TIES 
SEC. 901. SHORT TITLE. 
This title may be cited as the ‘‘Study of Ways To 
Improve the Accuracy of the Collection of Federal Oil, 
Condensate, and Natural Gas Royalties Act of 2011’’. 
SEC. 902. STUDY OF ACTIONS TO IMPROVE THE ACCURACY 
OF COLLECTION OF FEDERAL OIL, CONDEN-
SATE, AND NATURAL GAS ROYALTIES. 
The Secretary of the Interior shall seek to enter into 
an arrangement with the National Academy of Engineer-
ing under which the Academy, by not later than six 
months after the date of the enactment of this Act, shall 
study and report to the Secretary regarding whether the 
accuracy of collection of royalties on production of oil, con-
densate, and natural gas under leases of Federal lands (in 
eluding submerged and deep water lands) and Indian 
lands would be improved by any of the following: 
(1) Requiring the installation of digital meters, 
calibrated at least monthly to an absolute zero value, 
for all lands from which natural gas (including con-
densate) is produced under such leases. 
(2) Requiring that— 
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(A) the size of every orifice plate on each 
natural gas well operated under such leases be 
inspected at least quarterly by the Secretary; 
and 
(B) chipped orifice plates and wrong-sized 
orifice plates be replaced immediately after 
those inspections and reported to the Secretary 
for retroactive volume measurement corrections 
and royalty payments with interest of 8 percent 
compounded monthly. 
(3) Requiring that any plug valves that are in 
natural gas gathering lines be removed and replaced 
with ball valves. 
(4) Requiring that— 
(A) all meter runs should be opened for in-
spection by the Secretary and the producer at 
all times; and 
(B) any welding or closing of the meter 
runs leading to the orifice plates should be pro-
hibited unless authorized by the Secretary. 
(5) Requiring the installation of straightening 
vanes approximately 10 feet before natural gas en-
ters each orifice meter, including each master meter 
and each sales meter. 
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(6) Requiring that all master meters be in-
spected and the results of such inspections be made 
available to the Secretary and the producers imme-
diately. 
(7) Requiring that— 
(A) all sampling of natural gas for heating 
content analysis be performed monthly up-
stream of each natural gas meter, including up-
stream of each master meter; 
(B) records of such sampling and heating 
content analysis be maintained by the pur-
chaser and made available to the Secretary and 
to the producer monthly; 
(C) probes for such upstream sampling be 
installed upstream within three feet of each 
natural gas meter; 
(D) any oil and natural gas lease for which 
heat content analysis is falsified shall be subject 
to cancellation; 
(E) natural gas sampling probes be lo-
cated— 
(i) upstream of the natural gas meter 
at all times; 
(ii) within a few feet of the natural 
gas meter; and 
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253 
(iii) after the natural gas goes 
through a Welker or Y–Z vanishing cham-
ber; and 
(F) temperature probes and testing probes 
be located between the natural gas sampling 
probe and the orifice of the natural gas meter. 
(8) Prohibiting the dilution of natural gas with 
inert nitrogen or inert carbon dioxide gas for royalty 
determination, sale, or resale at any point. 
(9) Requiring that both the measurement of the 
volume of natural gas and the heating content anal-
yses be reported only on the basis of 14.73 PSI and 
60 degrees Fahrenheit, regardless of the elevation 
above sea level of such volume measurement and 
heating content analysis, for both purchases and 
sales of natural gas. 
(10) Prohibiting the construction of bypass 
pipes that go around the natural gas meter, and im-
posing criminal penalties for any such construction 
or subsequent removal including, but not limited to, 
automatic cancellation of the lease. 
(11) Requiring that all natural gas sold to con-
sumers have a minimum BTU content of 960 at an 
atmospheric pressure of 14.73 PSI and be at a tem-
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254 
perature of 60 degrees Fahrenheit, as required by 
the State of Wyoming Public Utilities Commission. 
(12) Requiring that all natural gas sold in the 
USA will be on a MMBTU basis with the BTU con-
tent adjusted for elevation above sea level in higher 
altitudes. Thus all natural gas meters must correct 
for BTU content in higher elevations (altitudes). 
(13) Issuance by the Secretary of rules for the 
measurement at the wellhead of the standard volume 
of natural gas produced, based on independent in-
dustry standards such as those suggested by the 
American Society of Testing Materials (ASTM). 
(14) Requiring use of the fundamental orifice 
meter mass flow equation, as revised in 1990, for 
calculating the standard volume of natural gas pro-
duced. 
(15) Requiring the use of Fpv in standard vol-
ume measurement computations as described in the 
1992 American Gas Association Report No. 8 enti-
tled Compressibility Factor of Natural Gas and 
Other Related Hydrocarbon Gases. 
(16) Requiring that gathering lines must be 
constructed so as to have as few angles and turns 
as possible, with a maximum of three angles, before 
they connect with the natural gas meter. 
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(17) Requiring that for purposes of reporting 
the royalty value of natural gas, condensate, oil, and 
associated natural gases, such royalty value must be 
based upon the natural gas’ condensate’s, oil’s, and 
associated natural gases’ arm’s length, independent 
market value, as reported in independent, respected 
market reports such as Platts or Bloombergs, and 
not based upon industry controlled posted prices, 
such as Koch’s. 
(18) Requiring that royalties be paid on all the 
condensate recovered through purging gathering 
lines and pipelines with a cone-shaped device to push 
out condensate (popularly referred to as a pig) and 
on 
condensate 
recovered 
from 
separators, 
dehydrators, and processing plants. 
(19) Requiring that all royalty deductions for 
dehydration, treating, natural gas gathering, com-
pression, transportation, marketing, removal of im-
purities such as carbon dioxide (CO2), nitrogen (N2), 
hydrogen sulphide (H2S), mercaptain (HS), helium 
(He), and other similar charges on natural gas, con-
densate, and oil produced under such leases that are 
now in existence be eliminated. 
(20) Requiring that at all times— 
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256 
(A) the quantity, quality, and value ob-
tained for natural gas liquids (condensate) be 
reported to the Secretary; and 
(B) such reported value be based on fair 
independent arm’s length market value. 
(21) Issuance by the Secretary of regulations 
that prohibit venting or flaring (or both) of natural 
gas in cases for which technology exists to reason-
ably prevent it, strict enforcement of such prohibi-
tions, and cancellation of leases for violations. 
(22) Requiring lessees to pay full royalties on 
any natural gas that is vented, flared, or otherwise 
avoidably lost. 
(23)(A) Requiring payment of royalties on car-
bon dioxide at the wellhead used for tertiary oil re-
covery from depleted oil fields on the basis of 5 per-
cent of the West Texas Intermediate crude oil fair 
market price to be used for one MCF (1,000 cubic 
feet) of carbon dioxide gas. 
(B) Requiring that— 
(i) carbon dioxide used for edible purposes 
should be subjected to a royalty per thousand 
cubic feet (MCF) on the basis of the sales price 
at the downstream delivery point without de-
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257 
ducting for removal of impurities, processing, 
transportation, and marketing costs; 
(ii) such price to apply with respect to gas-
eous forms, liquid forms, and solid (dry ice) 
forms of carbon dioxide converted to equivalent 
MCF; and 
(iii) such royalty to apply with respect to 
both a direct producer of carbon dioxide and 
purchases of carbon dioxide from another per-
son that is either affiliated or not affiliated with 
the purchaser. 
(24) Requiring that— 
(A) royalties be paid on the fair market 
value of nitrogen extracted from such leases 
that is used industrially for well stimulation, 
helium recovery, or other uses; and 
(B) royalties be paid on the fair market 
value of ultimately processed helium recovered 
from such leases. 
(25) Allowing only 5 percent of the value of the 
elemental sulfur recovered during processing of hy-
drogen sulfide gas from such leases to be deducted 
for processing costs in determining royalty pay-
ments. 
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(26) Requiring that all heating content analysis 
of natural gas be conducted to a minimum level of 
C15. 
(27) Eliminating artificial conversion from dry 
BTU to wet BTU, and requiring that natural gas be 
analyzed and royalties paid for at all times on the 
basis of dry BTU only. 
(28) Requiring that natural gas sampling be 
performed at all times with a floating piston cylinder 
container at the same pressure intake as the pres-
sure of the natural gas gathering line. 
(29) Requiring use of natural gas filters with a 
minimum of 10 microns, and preferably 15 microns, 
both in the intake to natural gas sampling con-
tainers and in the exit from the natural gas sam-
pling containers into the chromatograph. 
(30) Mandate the use of a Quad Unit for both 
portable and stationary chromatographs in order to 
correct for the presence of nitrogen and oxygen, if 
any, in certain natural gas streams. 
(31) Require the calibration of all chro-
matograph equipment every three months and the 
use of only American Gas Association-approved 
standard comparison containers for such calibration. 
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259 
(32) Requiring payment of royalties on any 
such natural gas stored on Federal or Indian lands 
on the basis of corresponding storage charges for the 
use of Federal or Indian lands, respectively, for such 
storage service. 
(33) Imposing penalties for the intentional non-
payment of royalties for natural gas liquids recov-
ered— 
(A) from purging of natural gas gathering 
lines and natural gas pipelines; or 
(B) from field separators, dehydrators, and 
processing plants, 
including cancellation of oil and natural gas leases 
and criminal penalties. 
(34) Requiring that the separator, dehydrator, 
and natural gas meter be located within 100 feet of 
each natural gas wellhead. 
(35) Requiring that BTU heating content anal-
ysis be performed when the natural gas is at a tem-
perature of 140 to 150 degrees Fahrenheit at all 
times, as required by the American Gas Association 
(AGA) regulations. 
(36) Requiring that heating content analysis 
and volume measurements are identical at the sales 
point to what they are at the purchase point, after 
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260 
allowing for a small volume for leakage in old pipes, 
but with no allowance for heating content discrep-
ancy. 
(37) Verification by the Secretary that the spe-
cific gravity of natural gas produced under such 
leases, as measured at the meter run, corresponds to 
the heating content analysis data for such natural 
gas, in accordance with the Natural Gas Processors 
Association Publication 2145–71(1), entitled ‘‘Phys-
ical Constants Of Paraffin Hydrocarbons And Other 
Components Of Natural Gas’’, and reporting of all 
discrepancies immediately. 
(38) Prohibiting all deductions on royalty pay-
ments for marketing of natural gas, condensate, and 
oil by an affiliate or agent. 
(39) Requiring that all standards of the Amer-
ican Petroleum Institute, the American Gas Associa-
tion, the Gas Processors Association, and the Amer-
ican Society of Testing Materials, Minerals Manage-
ment Service Order No. 5, and all other Minerals 
Management Service orders be faithfully observed 
and applied, and willful misconduct of such stand-
ards and orders be subject to oil and gas lease can-
cellation. 
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261 
SEC. 903. DEFINITIONS. 
In this title: 
(1) COVERED
LANDS.—The term ‘‘covered 
lands’’ means— 
(A) all Federal onshore lands and offshore 
lands that are under the administrative jurisdic-
tion of the Department of the Interior for pur-
poses of oil and gas leasing; and 
(B) Indian onshore lands. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
TITLE X—OFFSHORE OIL AND 
GAS 
WORKER 
WHISTLE-
BLOWER PROTECTION 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Offshore Oil and Gas 
Worker Whistleblower Protection Act of 2011’’. 
SEC. 1002. WHISTLEBLOWER PROTECTIONS; EMPLOYEE 
PROTECTION FROM OTHER RETALIATION. 
(a) PROHIBITION AGAINST RETALIATION.— 
(1) IN GENERAL.—No employer may discharge 
or otherwise discriminate against a covered employee 
because the covered employee, whether at the cov-
ered employee’s initiative or in the ordinary course 
of the covered employee’s duties— 
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262 
(A) provided, caused to be provided, or is 
about to provide or cause to be provided to the 
employer or to a Federal or State government 
official, information relating to any violation of, 
or any act or omission the covered employee 
reasonably believes to be a violation of, any pro-
vision of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1301 et seq.), or any order, rule, 
regulation, standard, or prohibition under that 
Act, or exercised any rights provided to employ-
ees under that Act; 
(B) testified or is about to testify in a pro-
ceeding concerning such violation; 
(C) assisted or participated or is about to 
assist or participate in such a proceeding; 
(D) testified or is about to testify before 
Congress on any matter covered by such Act; 
(E) objected to, or refused to participate in 
any activity, policy, practice, or assigned task 
that the covered employee reasonably believed 
to be in violation of any provision of such Act, 
or any order, rule, regulation, standard, or ban 
under such Act; 
(F) reported to the employer or a State or 
Federal government official any of the following 
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263 
related to the employer’s activities described in 
section 1003(1): an illness, injury, unsafe condi-
tion, or information regarding the adequacy of 
any oil spill response plan required by law; or 
(G) refused to perform the covered employ-
ee’s duties, or exercised stop work authority, re-
lated to the employer’s activities described in 
section 1003(1) if the covered employee had a 
good faith belief that performing such duties 
could result in injury to or impairment of the 
health of the covered employee or other employ-
ees, or cause an oil spill to the environment. 
(2) GOOD
FAITH
BELIEF.—For purposes of 
paragraph (1)(E), the circumstances causing the 
covered employee’s good faith belief that performing 
such duties would pose a health and safety hazard 
shall be of such a nature that a reasonable person 
under circumstances confronting the covered em-
ployee would conclude there is such a hazard. 
(b) PROCESS.— 
(1) IN GENERAL.—A covered employee who be-
lieves that he or she has been discharged or other-
wise discriminated against (hereafter referred to as 
the ‘‘complainant’’) by any employer in violation of 
subsection (a)(1) may, not later than 180 days after 
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264 
the date on which such alleged violation occurs or 
the date on which the covered employee knows or 
should reasonably have known that such alleged vio-
lation occurred, file (or have any person file on his 
or her behalf) a complaint with the Secretary of 
Labor (referred to in this section as the ‘‘Sec-
retary’’) alleging such discharge or discrimination 
and identifying employer or employers responsible 
for such act. Upon receipt of such a complaint, the 
Secretary shall notify, in writing, the employer or 
employers named in the complaint of the filing of 
the complaint, of the allegations contained in the 
complaint, of the substance of evidence supporting 
the complaint, and of the opportunities that will be 
afforded to such person under paragraph (2). 
(2) INVESTIGATION.— 
(A) IN GENERAL.—Not later than 90 days 
after the date of receipt of a complaint filed 
under paragraph (1) the Secretary shall initiate 
an investigation and determine whether there is 
reasonable cause to believe that the complaint 
has merit and notify, in writing, the complain-
ant and the employer or employers alleged to 
have committed a violation of subsection (a)(1) 
of the Secretary’s findings. The Secretary shall, 
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265 
during such investigation afford the complain-
ant and the employer or employers named in 
the complaint an opportunity to submit to the 
Secretary a written response to the complaint 
and an opportunity to meet with a representa-
tive of the Secretary to present statements from 
witnesses. The complainant shall be provided 
with an opportunity to review the information 
and evidence provided by employer or employers 
to the Secretary, and to review any response or 
rebuttal by such the complaint, as part of such 
investigation. 
(B) REASONABLE CAUSE FOUND; PRELIMI-
NARY ORDER.—If the Secretary concludes that 
there is reasonable cause to believe that a viola-
tion of subsection (a)(1) has occurred, the Sec-
retary shall accompany the Secretary’s findings 
with a preliminary order providing the relief 
prescribed by paragraph (3)(B). Not later than 
30 days after the date of notification of find-
ings under this paragraph, the employer or em-
ployers alleged to have committed the violation 
or the complainant may file objections to the 
findings or preliminary order, or both, and re-
quest a hearing on the record before an admin-
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266 
istrative law judge of the Department of Labor. 
The filing of such objections shall not operate 
to stay any reinstatement remedy contained in 
the preliminary order. Any such hearing shall 
be conducted expeditiously. If a hearing is not 
requested in such 30-day period, the prelimi-
nary order shall be deemed a final order that is 
not subject to judicial review. The Secretary of 
Labor is authorized to enforce preliminary rein-
statement orders in the United States district 
court for the district in which the violation was 
found to occur, or in the United States district 
court for the District of Columbia. 
(C) DISMISSAL OF COMPLAINT.— 
(i) STANDARD FOR COMPLAINANT.— 
The Secretary shall dismiss a complaint 
filed under this subsection and shall not 
conduct an investigation otherwise required 
under subparagraph (A) unless the com-
plainant makes a prima facie showing that 
any behavior described in subparagraphs 
(A) through (G) of subsection (a)(1) was a 
contributing factor in the adverse action 
alleged in the complaint. 
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267 
(ii) STANDARD FOR EMPLOYER.—Not-
withstanding a finding by the Secretary 
that the complainant has made the show-
ing required under clause (i), no investiga-
tion otherwise required under subpara-
graph (A) shall be conducted if the em-
ployer demonstrates, by clear and con-
vincing evidence, that the employer would 
have taken the same adverse action in the 
absence of that behavior. 
(iii) 
VIOLATION
STANDARD.—The 
Secretary may determine that a violation 
of subsection (a)(1) has occurred only if 
the complainant demonstrates that any be-
havior described in subparagraphs (A) 
through (G) of such subsection was a con-
tributing factor in the adverse action al-
leged in the complaint. 
(iv) RELIEF STANDARD.—Relief may 
not be ordered under subparagraph (A) if 
the employer demonstrates by clear and 
convincing evidence that the employer 
would have taken the same adverse action 
in the absence of that behavior. 
(3) ORDERS.— 
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268 
(A) IN GENERAL.—Not later than 90 days 
after the receipt of a request for a hearing 
under subsection (b)(2)(B), the administrative 
law judge shall issue findings of fact and order 
the relief provided under this paragraph or 
deny the complaint. At any time before issuance 
of an order, a proceeding under this subsection 
may be terminated on the basis of a settlement 
agreement entered into by the Secretary, the 
complainant, and the person alleged to have 
committed the violation. Such a settlement may 
not be agreed by such parties if it contains con-
ditions which conflict with rights protected 
under this title, are contrary to public policy, or 
include a restriction on a complainant’s right to 
future employment with employers other than 
the specific employers named in the complaint. 
(B) CONTENT OF ORDER.—If, in response 
to a complaint filed under paragraph (1), the 
administrative law judge determines that a vio-
lation of subsection (a)(1) has occurred, the ad-
ministrative law judge shall order the employer 
or employers who committed such violation— 
(i) to take affirmative action to abate 
the violation; 
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(ii) to reinstate the complainant to his 
or her former position together with com-
pensation (including back pay and prejudg-
ment interest) and restore the terms, con-
ditions, and privileges associated with his 
or her employment; and 
(iii) to provide compensatory and con-
sequential damages, and, as appropriate, 
exemplary damages to the complainant. 
(C) ATTORNEY FEES.—If such an order is 
issued under this paragraph, the Secretary, at 
the request of the complainant, shall assess 
against the employer or employers a sum equal 
to the aggregate amount of all costs and ex-
penses (including attorneys’ and expert witness 
fees) reasonably incurred by the complainant 
for, or in connection with, the bringing of the 
complaint upon which the order was issued at 
the conclusion of any stage of the proceeding. 
(D) BAD FAITH CLAIM.—If the Secretary 
finds that a complaint under paragraph (1) is 
frivolous or has been brought in bad faith, the 
Secretary may award to the prevailing employer 
reasonable 
attorneys’ 
fees, 
not 
exceeding 
$1,000, to be paid by the complainant. 
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(E) ADMINISTRATIVE APPEAL.—Not later 
than 30 days after the receipt of findings of 
fact or an order under subparagraph (B), the 
employer or employers alleged to have com-
mitted the violation or the complainant may 
file, with objections, an administrative appeal 
with the Secretary, who may designate such ap-
peal to a review board. In reviewing a decision 
and order of the administrative law judge, the 
Secretary shall affirm the decision and order if 
it is determined that the factual findings set 
forth therein are supported by substantial evi-
dence and the decision and order are made in 
accordance with applicable law. The Secretary 
shall issue a final decision and order affirming, 
or reversing, in whole or in part, the decision 
under review within 90 days after receipt of the 
administrative appeal under this subparagraph. 
If it is determined that a violation of subsection 
(a)(1) has occurred, the Secretary shall order 
relief provided under subparagraphs (B) and 
(C). Such decision shall constitute a final agen-
cy action with respect to the matter appealed. 
(4) ACTION IN COURT.— 
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271 
(A) IN
GENERAL.—If the Secretary has 
not issued a final decision within 330 days after 
the filing of the complaint, the complainant 
may bring an action at law or equity for de 
novo review in the appropriate district court of 
the United States, which action shall, at the re-
quest of either party to such action, be tried by 
the court with a jury. The proceedings shall be 
governed by the same legal burdens of proof 
specified in paragraph (2)(C). 
(B) RELIEF.—The court may award all 
appropriate relief including injunctive relief, 
compensatory and consequential damages, in-
cluding— 
(i) reinstatement with the same se-
niority status that the covered employee 
would have had, but for the discharge or 
discrimination; 
(ii) the amount of back pay sufficient 
to make the covered employee whole, with 
prejudgment interest; 
(iii) exemplary damages, as appro-
priate; and 
(iv) litigation costs, including reason-
able attorney fees and expert witness fees. 
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(5) REVIEW.— 
(A) IN GENERAL.—Any person aggrieved 
by a final order issued under paragraph (3) or 
a judgment or order under paragraph (4) may 
obtain review of the order in the appropriate 
United States Court of Appeals. The petition 
for review must be filed not later than 60 days 
after the date of the issuance of the final order 
of the Secretary. Review shall be in accordance 
with chapter 7 of title 5, United States Code. 
The commencement of proceedings under this 
subparagraph shall not, unless ordered by the 
court, operate as a stay of the order. 
(B) NO
OTHER
JUDICIAL
REVIEW.—An 
order of the Secretary with respect to which re-
view could have been obtained under subpara-
graph (A) shall not be subject to judicial review 
in any other proceeding. 
(6) FAILURE TO COMPLY WITH ORDER.—When-
ever any employer has failed to comply with an order 
issued under paragraph (3), the Secretary may ob-
tain in a civil action in the United States district 
court for the district in which the violation was 
found to occur, or in the United States district court 
for the District of Columbia, all appropriate relief 
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including, but not limited to, injunctive relief and 
compensatory damages. 
(7) CIVIL ACTION TO REQUIRE COMPLIANCE.— 
(A) IN GENERAL.—Whenever an employer 
has failed to comply with an order issued under 
paragraph (3), the complainant on whose behalf 
the order was issued may obtain in a civil ac-
tion in an appropriate United States district 
court against the employer to whom the order 
was issued, all appropriate relief. 
(B) AWARD.—The court, in issuing any 
final order under this paragraph, may award 
costs of litigation (including reasonable attor-
neys’ and expert witness fees) to any party 
whenever the court determines such award is 
appropriate. 
(c) CONSTRUCTION.— 
(1) EFFECT ON OTHER LAWS.—Nothing in this 
section preempts or diminishes any other safeguards 
against discrimination, demotion, discharge, suspen-
sion, threats, harassment, reprimand, retaliation, or 
any other manner of discrimination provided by Fed-
eral or State law. 
(2) RIGHTS OF EMPLOYEES.—Nothing in this 
section shall be construed to diminish the rights, 
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privileges, or remedies of any employee under any 
Federal or State law or under any collective bar-
gaining agreement. The rights and remedies in this 
section may not be waived by any agreement, policy, 
form, or condition of employment. 
(d) ENFORCEMENT
OF NONDISCRETIONARY DU-
TIES.—Any nondiscretionary duty imposed by this section 
shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28, United States Code. 
(e) POSTING OF NOTICE AND TRAINING.—All em-
ployers shall post a notice which has been approved as to 
form and content by the Secretary of Labor in a con-
spicuous location in the place of employment where cov-
ered employees frequent which explains employee rights 
and remedies under this section. Each employer shall pro-
vide training to covered employees of their rights under 
this section within 30 days of employment, and at not less 
than once every 12 months thereafter, and provide covered 
employees with a card which contains a toll free telephone 
number at the Department of Labor which covered em-
ployees can call to get information or file a complaint 
under this section. 
(f) DESIGNATION BY THE SECRETARY.—The Sec-
retary of Labor shall, within 30 days of the date of enact-
ment of this Act, designate by order the appropriate agen-
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cy officials to receive, investigate, and adjudicate com-
plaints of violations of subsection (a)(1). 
SEC. 1003. DEFINITIONS. 
As used in this title the following definitions apply: 
(1) The term ‘‘covered employee’’— 
(A) means an individual performing serv-
ices on behalf of an employer that is engaged 
in activities on or in waters above the Outer 
Continental Shelf related to— 
(i) supporting, or carrying out explo-
ration, 
development, 
production, 
proc-
essing, or transportation of oil or gas; or 
(ii) oil spill cleanup, emergency re-
sponse, environmental surveillance, protec-
tion, or restoration, or other oil spill activi-
ties related to occupational safety and 
health; and 
(B) includes an applicant for such employ-
ment. 
(2) The term ‘‘employer’’ means one or more 
individuals, partnerships, associations, corporations, 
trusts, unincorporated organizations, nongovern-
mental organizations, or trustees, and includes any 
agent, contractor, subcontractor, grantee or consult-
ant of such employer. 
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advisory committee under the Federal Advisory Com-
mittee Act (5 U.S.C. App.). 
Æ 
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