lessees and the public technical information about the 
causes and corrective actions taken. All data and reports 
related to any such incident shall be maintained in a data 
base available to the public. 
‘‘(h) OPERATOR’S ANNUAL CERTIFICATION.— 
‘‘(1) The Secretary, in cooperation with the 
Secretary of the department in which the Coast 
Guard is operating, shall require all operators of all 
new and existing drilling and production operations 
to annually certify that their operations are being 
conducted in accordance with applicable law and reg-
ulations. 
‘‘(2) Each certification shall include, but, not be 
limited to, statements that verify the operator has— 
‘‘(A) examined all well control system 
equipment (both surface and subsea) being used 
to ensure that it has been properly maintained 
and is capable of shutting in the well during 
emergency operations; 
‘‘(B) examined and conducted tests to en-
sure that the emergency equipment has been 
function-tested and is capable of addressing 
emergency situations; 
‘‘(C) reviewed all rig drilling, casing, ce-
menting, well abandonment (temporary and
permanent), completion, and workover practices 
to ensure that well control is not compromised 
at any point while emergency equipment is in-
stalled on the wellhead; 
‘‘(D) reviewed all emergency shutdown and 
dynamic positioning procedures that interface 
with emergency well control operations; 
‘‘(E) taken the necessary steps to ensure 
that all personnel involved in well operations 
are properly trained and capable of performing 
their tasks under both normal drilling and 
emergency well control operations; and 
‘‘(F) updated the operator’s response plan 
required under section 25(c)(7) and exploration 
plans required under section 11(c)(3) to reflect 
the best available technology, including the 
availability of such technology. 
‘‘(i) CEO STATEMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall not ap-
prove any application for a permit to drill a well 
under this Act unless such application is accom-
panied by a statement in which the chief executive 
officer of the applicant attests, in writing, that—
‘‘(A) the applicant is in compliance with all 
applicable environmental and natural resource 
conservation laws; 
‘‘(B) the applicant has the capability and 
technology to respond immediately and effec-
tively to a worst-case oil spill in real-world con-
ditions in the area of the proposed activity 
under the permit; 
‘‘(C) the applicant has an oil spill response 
plan that ensures that the applicant has the ca-
pacity to promptly control and stop a blowout 
in the event that well control measures fail; 
‘‘(D) the blowout preventer to be used dur-
ing the drilling of the well has redundant sys-
tems to prevent or stop a blowout for all fore-
seeable blowout scenarios and failure modes; 
‘‘(E) the well design is safe; and 
‘‘(F) the applicant has the capability to ex-
peditiously begin and complete a relief well if 
necessary in the event of a blowout. 
‘‘(2) CIVIL PENALTY.—Any chief executive offi-
cer who makes a false certification under paragraph 
(1) shall be liable for a civil penalty under section 
24.
‘‘(j) THIRD PARTY CERTIFICATION.—All operators 
that modify or upgrade any emergency equipment placed 
on any operation to prevent blow-outs or other well control 
events, shall have an independent third party conduct a 
detailed physical inspection and design review of such 
equipment within 30 days of its installation. The inde-
pendent third party shall certify that the equipment will 
operate as originally designed and any modifications or 
upgrades conducted after delivery have not compromised 
the design, performance, or functionality of the equip-
ment. Failure to comply with this subsection shall result 
in suspension of the lease.’’. 
(b) APPLICATION.—Section 22(i) of the Outer Conti-
nental Shelf Lands Act, as added by the amendments 
made by subsection (a), shall apply to approvals of appli-
cations for a permit to drill that are submitted after the 
end of the 6-month period beginning on the date of enact-
ment of this Act. 
SEC. 213. JUDICIAL REVIEW. 
Section 23(c)(3) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1349(c)(3)) is amended by striking 
‘‘sixty’’ and inserting ‘‘90’’.
SEC. 214. REMEDIES AND PENALTIES. 
(a) CIVIL PENALTY, GENERALLY.—Section 24(b) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1350(b)) is amended to read as follows: 
‘‘(b)(1) Except as provided in paragraph (2), any per-
son who fails to comply with any provision of this Act, 
or any term of a lease, license, or permit issued pursuant 
to this Act, or any regulation or order issued under this 
Act, shall be liable for a civil administrative penalty of not 
more than $75,000 for each day of the continuance of 
such failure. The Secretary may assess, collect, and com-
promise any such penalty. No penalty shall be assessed 
until the person charged with a violation has been given 
an opportunity for a hearing. The Secretary shall, by regu-
lation at least every 3 years, adjust the penalty specified 
in this paragraph to reflect any increases in the Consumer 
Price Index (all items, United States city average) as pre-
pared by the Department of Labor. 
‘‘(2) If a failure described in paragraph (1) con-
stitutes or constituted a threat of harm or damage to life 
(including fish and other aquatic life), property, any min-
eral deposit, or the marine, coastal, or human environ-
ment, a civil penalty of not more than $150,000 shall be 
assessed for each day of the continuance of the failure.’’. 
(b) KNOWING AND WILLFUL VIOLATIONS.—Section 
24(c) of the Outer Continental Shelf Lands Act (43
U.S.C. 1350(c)) is amended in paragraph (4) by striking 
‘‘$100,000’’ and inserting ‘‘$10,000,000’’. 
(c) OFFICERS AND AGENTS OF CORPORATIONS.— 
Section 24(d) of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1350(d)) is amended by inserting ‘‘, or with 
willful disregard,’’ after ‘‘knowingly and willfully’’. 
SEC. 215. UNIFORM PLANNING FOR OUTER CONTINENTAL 
SHELF. 
Section 25 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1351) is amended— 
(1) by striking ‘‘other than the Gulf of Mexico,’’ 
in each place it appears; 
(2) in subsection (c), by striking ‘‘and’’ after 
the semicolon at the end of paragraph (5), redesig-
nating paragraph (6) as paragraph (11), and insert-
ing after paragraph (5) the following new para-
graphs: 
‘‘(6) a detailed and accurate description of 
equipment to be used for the drilling of wells pursu-
ant to activities included in the development and 
production plan, including— 
‘‘(A) a description of the drilling unit or 
units; 
‘‘(B) a statement of the design and condi-
tion of major safety-related pieces of equip-
ment, including independent third-party certifi-
cation of such equipment; and 
‘‘(C) a description of any new technology 
to be used; 
‘‘(7) a scenario for the potential blowout of 
each well to be drilled as part of the plan involving 
the highest potential volume of liquid hydrocarbons, 
along with a complete description of a response plan 
to both control the blowout and manage the accom-
panying discharge of hydrocarbons, including the 
likelihood for surface intervention to stop the blow-
out, the availability of a rig to drill a relief well, an 
estimate of the time it would take to drill a relief 
well, a description of other technology that may be 
used to regain control of the well or capture escap-
ing hydrocarbons and the potential timeline for 
using that technology for its intended purpose, and 
the strategy, organization, and resources necessary 
to avoid harm to the environment from hydro-
carbons; 
‘‘(8) an analysis of the potential impacts of the 
worst-case-scenario discharge on the marine and 
coastal environments for activities conducted pursu-
ant to the proposed development and production 
plan;
‘‘(9) a comprehensive survey and characteriza-
tion of the coastal or marine environment within the 
area of operation, including bathymetry, currents 
and circulation patterns within the water column, 
and descriptions of benthic and pelagic environ-
ments; 
‘‘(10) a description of the technologies to be de-
ployed on the facilities to routinely observe and mon-
itor in real time the marine environment throughout 
the duration of operations, and a description of the 
process by which such observation data and informa-
tion will be made available to Federal regulators and 
to the System established under section 12304 of 
Public Law 111–11 (33 U.S.C. 3603); and’’; 
(3) in subsection (e), by striking so much as 
precedes paragraph (2) and inserting the following: 
‘‘(e)(1) The Secretary shall treat the approval of a 
development and production plan, or a significant revision 
of a development and production plan, as an agency action 
requiring preparation of an environmental assessment or 
environmental impact statement, in accordance with the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.).’’;
(4) by striking subsections (g) and (l), and re-
designating subsections (h) through (k) as sub-
sections (g) through and (j); and 
(5) in subsection (g), as so redesignated, by re-
designating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively, and inserting after para-
graph (1) the following: 
‘‘(2) The Secretary shall not approve a develop-
ment and production plan, or a significant revision 
to such a plan, unless— 
‘‘(A) the plan is in compliance with all 
other applicable environmental and natural re-
source conservation laws; and 
‘‘(B) the applicant has available oil spill re-
sponse and clean-up equipment and technology 
that has been demonstrated to be capable of ef-
fectively remediating the projected worst-case 
release of oil from activities conducted pursuant 
to the development and production plan.’’. 
SEC. 216. OIL AND GAS INFORMATION PROGRAM. 
Section 26(a)(1) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1352(a)(1)) is amended by— 
(1) striking the period at the end of subpara-
graph (A) and inserting ‘‘, provided that such data 
shall be transmitted in electronic format either in
real-time or as quickly as practicable following the 
generation of such data.’’; and 
(2) striking subparagraph (C) and inserting the 
following: 
‘‘(C) Lessees engaged in drilling operations 
shall provide to the Secretary— 
‘‘(i) all daily reports generated by the 
lessee, or any daily reports generated by 
contractors or subcontractors engaged in 
or supporting drilling operations on the 
lessee’s lease, no more than 24 hours after 
the end of the day for which they should 
have been generated; 
‘‘(ii) documentation of blowout pre-
venter maintenance and repair, and any 
changes to design specifications of the 
blowout preventer, within 24 hours after 
such activity; and 
‘‘(iii) prompt or real-time trans-
mission of the electronic log from a blow-
out preventer control system.’’. 
SEC. 217. LIMITATION ON ROYALTY-IN-KIND PROGRAM. 
Section 27(a) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1353(a)) is amended by striking the period 
at the end of paragraph (1) and inserting ‘‘, except that
the Secretary shall not conduct a regular program to take 
oil and gas lease royalties in oil or gas.’’. 
SEC. 218. RESTRICTIONS ON EMPLOYMENT. 
Section 29 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1355) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘SEC. 29’’ and all that fol-
lows through ‘‘No full-time’’ and inserting the 
following: 
‘‘SEC. 29. RESTRICTIONS ON EMPLOYMENT. 
‘‘(a) IN GENERAL.—No full-time’’; and 
(B) by striking ‘‘, and who was at any 
time during the twelve months preceding the 
termination of his employment with the Depart-
ment compensated under the Executive Sched-
ule or compensated at or above the annual rate 
of basic pay for grade GS–16 of the General 
Schedule’’; 
(2) in paragraph (1)— 
(A) in subparagraph (A), by inserting ‘‘or 
advise’’ after ‘‘represent’’; 
(B) in subparagraph (B), by striking ‘‘with 
the intent to influence, make’’ and inserting 
‘‘act with the intent to influence, directly or in-
directly, or make’’; and
(C) in the matter following subparagraph 
(C)— 
(i) by inserting ‘‘inspection or enforce-
ment action,’’ before ‘‘or other particular 
matter’’; and 
(ii) by striking ‘‘or’’ at the end; 
(3) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘or 
advise’’ after ‘‘represent’’; 
(B) in subparagraph (B), by striking ‘‘with 
the intent to influence, make’’ and inserting 
‘‘act with the intent to influence, directly or in-
directly, or make’’; and 
(C) by striking the period at the end and 
inserting ‘‘; or’’; and 
(4) by adding at the end the following: 
‘‘(3) during the 2-year period beginning on the 
date on which the employment of the officer or em-
ployee ceased at the Department, accept employment 
or compensation from any party that has a direct 
and substantial interest— 
‘‘(A) that was pending under the official 
responsibility of the officer or employee as an 
officer at any point during the 2-year period
preceding the date of termination of the respon-
sibility; or 
‘‘(B) in which the officer or employee par-
ticipated personally and substantially as an offi-
cer or employee of the Department. 
‘‘(b) PRIOR DEALINGS.—No full-time officer or em-
ployee of the Department of the Interior who directly or 
indirectly discharged duties or responsibilities under this 
Act shall participate personally and substantially as a 
Federal officer or employee, through decision, approval, 
disapproval, recommendation, the rendering of advice, in-
vestigation, or otherwise, in a proceeding, application, re-
quest for a ruling or other determination, contract, claim, 
controversy, charge, accusation, inspection, enforcement 
action, or other particular matter in which, to the knowl-
edge of the officer or employee— 
‘‘(1) the officer or employee or the spouse, 
minor child, or general partner of the officer or em-
ployee has a financial interest; 
‘‘(2) any organization in which the officer or 
employee is serving as an officer, director, trustee, 
general partner, or employee has a financial interest; 
‘‘(3) any person or organization with whom the 
officer or employee is negotiating or has any ar-
rangement concerning prospective employment has a 
financial interest; or 
‘‘(4) any person or organization in which the of-
ficer or employee has, within the preceding 1-year 
period, served as an officer, director, trustee, general 
partner, agent, attorney, consultant, contractor, or 
employee. 
‘‘(c) GIFTS FROM OUTSIDE SOURCES.—No full-time 
officer or employee of the Department of the Interior who 
directly or indirectly discharges duties or responsibilities 
under this Act shall, directly or indirectly, solicit or accept 
any gift in violation of subpart B of part 2635 of title 
5, Code of Federal Regulations (or successor regulations). 
‘‘(d) PENALTY.—Any person that violates subsection 
(a) or (b) shall be punished in accordance with section 
216 of title 18, United States Code.’’. 
SEC. 219. REPEAL OF ROYALTY RELIEF PROVISIONS. 
(a) REPEAL OF PROVISIONS OF ENERGY POLICY ACT 
OF 2005.—The following provisions of the Energy Policy 
Act of 2005 (Public Law 109–58) are repealed: 
(1) Section 344 (42 U.S.C. 15904; relating to 
incentives for natural gas production from deep wells 
in shallow waters of the Gulf of Mexico).
(2) Section 345 (42 U.S.C. 15905; relating to 
royalty relief for deep water production in the Gulf 
of Mexico). 
(b) REPEAL OF PROVISIONS RELATING TO PLAN-
NING AREAS OFFSHORE ALASKA.—Section 8(a)(3)(B) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ‘‘and in the Plan-
ning Areas offshore Alaska’’. 
SEC. 220. MANNING AND BUY- AND BUILD-AMERICAN RE-
QUIREMENTS. 
Section 30 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1356) is amended— 
(1) in subsection (a), by striking ‘‘shall issue 
regulations which’’ and inserting ‘‘shall issue regula-
tions that shall be supplemental to and complemen-
tary with and under no circumstances a substitution 
for the provisions of the Constitution and laws of the 
United States extended to the subsoil and seabed of 
the outer Continental Shelf pursuant to section 
4(a)(1) of this Act, except insofar as such laws 
would otherwise apply to individuals who have ex-
traordinary ability in the sciences, arts, education, 
or business, which has been demonstrated by sus-
tained national or international acclaim, and that’’; 
and
(2) by adding at the end the following: 
‘‘(d) BUY AND BUILD AMERICAN.—It is the intention 
of the Congress that this Act, among other things, result 
in a healthy and growing American industrial, manufac-
turing, transportation, and service sector employing the 
vast talents of America’s workforce to assist in the devel-
opment of energy from the outer Continental Shelf. More-
over, the Congress intends to monitor the deployment of 
personnel and material on the outer Continental Shelf to 
encourage the development of American technology and 
manufacturing to enable United States workers to benefit 
from this Act by good jobs and careers, as well as the 
establishment of important industrial facilities to support 
expanded access to American resources.’’. 
SEC. 221. NATIONAL COMMISSION ON THE BP DEEPWATER 
HORIZON OIL SPILL AND OFFSHORE DRILL-
ING. 
(a) TECHNICAL EXPERTISE.— 
(1) NATIONAL ACADEMY OF ENGINEERING AND 
NATIONAL
RESEARCH
COUNCIL.—The 
National 
Commission on the BP Deepwater Horizon Oil Spill 
and Offshore Drilling established under Executive 
Order No. 13543 of May 21, 2010 (referred to in 
this section as the ‘‘Commission’’) shall consult reg-
ularly, and in any event no less frequently than once
100 
per month, with the engineering and technology ex-
perts who are conducting the ‘‘Analysis of Causes of 
the Deepwater Horizon Explosion, Fire, and Oil 
Spill to Identify Measures to Prevent Similar Acci-
dents in the Future’’ for the National Academy of 
Engineering and the National Research Council. 
(2) OTHER TECHNICAL EXPERTS.—The Com-
mission also shall consult with other United States 
citizens with experience and expertise in such areas 
as— 
(A) engineering; 
(B) environmental compliance; 
(C) health and safety law (particularly oil 
spill legislation); 
(D) oil spill insurance policies; 
(E) public administration; 
(F) oil and gas exploration and production; 
(G) environmental cleanup; 
(H) fisheries and wildlife management; 
(I) marine safety; and 
(J) human factors affecting safety. 
(3) COMMISSION STAFF AND TECHNICAL EX-
PERTISE.—The Commission shall retain, as either a 
full-time employee or a contractor, one or more 
science and technology expert-advisors with experi-
101 
ence and expertise in petroleum engineering, rig 
safety, or drilling. 
(b) SUBPOENAS.— 
(1) SUBPOENA POWER.—The Commission may 
issue subpoenas in accordance with this subsection 
to compel the attendance and testimony of witnesses 
and the production of books, records, correspond-
ence, memoranda, and other documents. 
(2) ISSUANCE.— 
(A) AUTHORIZATION.—A subpoena may be 
issued under this subsection only by— 
(i) agreement of the Co-Chairs of the 
Commission; or 
(ii) the affirmative vote of a majority 
of the members of the Commission. 
(B) JUSTICE
DEPARTMENT
COORDINA-
TION.— 
(i) NOTIFICATION.—The Commission 
shall notify the Attorney General or the 
Attorney General’s designee of the Com-
mission’s intent to issue a subpoena under 
this subsection, the identity of the recipi-
ent, and the nature of the testimony, docu-
ments, or other evidence (described in sub-
paragraph (A)) sought before issuing such
102 
a subpoena. The form and content of such 
notice shall be set forth in the guidelines 
issued under clause (iv). 
(ii) CONDITIONS FOR OBJECTION TO 
ISSUANCE.—The Commission may not 
issue a subpoena under authority of this 
Act if the Attorney General objects to the 
issuance of the subpoena on the basis that 
the subpoena is likely to interfere with 
any— 
(I) Federal or State criminal in-
vestigation or prosecution; 
(II) pending investigation under 
sections 3729 through 3732 of title 
31, United States Code (commonly 
known as the ‘‘Civil False Claims 
Act’’); 
(III) pending investigation under 
any other Federal statute providing 
for civil remedies; or 
(IV) civil litigation to which the 
United States or any of its agencies is 
or is likely to be a party. 
(iii) NOTIFICATION OF OBJECTION.— 
The Attorney General or relevant United
103 
States Attorney shall notify the Commis-
sion of an objection raised under this sub-
paragraph without unnecessary delay and 
as set forth in the guidelines issued under 
clause (iv). 
(iv) GUIDELINES.—As soon as prac-
ticable, but no later than 30 days after the 
date of the enactment of this Act, the At-
torney General, after consultation with the 
Commission, shall issue guidelines to carry 
out this paragraph. 
(C) SIGNATURE
AND
SERVICE.—A sub-
poena issued under this subsection may be— 
(i) issued under the signature of ei-
ther Co-Chair of the Commission or any 
member designated by a majority of the 
Commission; and 
(ii) served by any person designated 
by the Co-Chairs or a member designated 
by a majority of the Commission. 
(3) ENFORCEMENT.— 
(A) REQUIRED PROCEDURES.—In the case 
of contumacy of any person issued a subpoena 
under this subsection or refusal by such person 
to comply with the subpoena, the Commission
104 
may request the Attorney General to seek en-
forcement of the subpoena. Upon such request, 
the Attorney General may seek enforcement of 
the subpoena in a court described in subpara-
graph (B). The court in which the Attorney 
General seeks enforcement of the subpoena may 
issue an order requiring the subpoenaed person 
to appear at any designated place to testify or 
to produce documentary or other evidence de-
scribed in subparagraph (A) of paragraph (2), 
and may punish any failure to obey the order 
as a contempt of that court. 
(B) JURISDICTION FOR ENFORCEMENT.— 
Any United States district court for a judicial 
district in which a person issued a subpoena 
under this subsection resides, is served, or may 
be found, or where the subpoena is returnable, 
upon application of the Attorney General, shall 
have jurisdiction to enforce the subpoena as 
provided in subparagraph (A). 
(c) RECOMMENDATIONS AND PURPOSES.— 
(1) IN GENERAL.—The Commission shall de-
velop recommendations for—
105 
(A) improvements to Federal laws, regula-
tions, and industry practices applicable to off-
shore drilling that would— 
(i) ensure the effective oversight, in-
spection, monitoring, and response capa-
bilities; and 
(ii) protect the environment and nat-
ural resources; and 
(B) organizational or other reforms of 
Federal agencies or processes, including the 
creation of new agencies, as necessary, to en-
sure that the improvements described in para-
graph (1) are implemented and maintained. 
(2) GOALS.—In developing recommendations 
under paragraph (1), the Commission shall ensure 
that the following goals are met: 
(A) Ensuring the safe operation and main-
tenance of offshore drilling platforms or vessels. 
(B) Protecting the overall environment and 
natural resources surrounding ongoing and po-
tential offshore drilling sites. 
(C) Developing and maintaining Federal 
agency expertise on the safe and effective use of 
offshore drilling technologies, including tech-
106 
nologies to minimize the risk of release of oil 
from offshore drilling platforms or vessels. 
(D) Encouraging the development and im-
plementation of efficient and effective oil spill 
response techniques and technologies that mini-
mize or eliminate any adverse effects on natural 
resources or the environment that result from 
response activities. 
(E) Ensuring that the Federal agencies 
regulating offshore drilling are staffed with, and 
managed by, career professionals, who are— 
(i) permitted to exercise independent 
professional judgments and make safety 
the highest priority in carrying out their 
responsibilities; 
(ii) not subject to undue influence 
from regulated interests or political ap-
pointees; and 
(iii) subject to strict regulation to pre-
vent improper relationships with regulated 
interests and to eliminate real or perceived 
conflicts of interests. 
(3) REPORT
TO
CONGRESS.—In coordination 
with its final public report to the President, the 
Commission shall submit to Congress a report con-
107 
taining the recommendations developed under para-
graph (1). 
SEC. 222. COORDINATION AND CONSULTATION WITH AF-
FECTED STATE AND LOCAL GOVERNMENTS. 
Section 19 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1345) is amended— 
(1) by inserting ‘‘exploration plan or’’ before 
‘‘development and production plan’’ in each place it 
appears; and 
(2) by amending subsection (c) to read as fol-
lows: 
‘‘(c) ACCEPTANCE OR REJECTION OF RECOMMENDA-
TIONS.—The Secretary shall accept recommendations of 
the Governor and may accept recommendations of the ex-
ecutive of any affected local government if the Secretary 
determines, after having provided the opportunity for con-
sultation, that they provide for a reasonable balance be-
tween the national interest and the well-being of the citi-
zens of the affected State. For purposes of this subsection, 
a determination of the national interest shall be based on 
the desirability of obtaining oil and gas supplies in a bal-
anced manner and on protecting coastal and marine eco-
systems and the economies dependent on those eco-
systems. The Secretary shall provide an explanation to the 
Governor, in writing, of the reasons for his determination
108 
to accept or reject such Governor’s recommendations, or 
to implement any alternative identified in consultation 
with the Governor.’’. 
SEC. 223. IMPLEMENTATION. 
(a) NEW LEASES.—The provisions of this title and 
title VII shall apply to any lease that is issued under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) after the effective date of this Act. 
(b) EXISTING LEASES.—For all leases that were 
issued under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.) that are in effect on the effective 
date of this Act, the Secretary shall take action, consistent 
with the terms of those leases, to apply the requirements 
of this title and title VII to those leases. Such action may 
include, but is not limited to, promulgating regulations, 
renegotiating such existing leases, conditioning future 
leases on bringing such existing leases into full or partial 
compliance with this title and title VII, or taking any other 
actions authorized by law. 
SEC. 224. REPORT ON ENVIRONMENTAL BASELINE STUD-
IES. 
The Secretary of the Interior shall report to Congress 
within 6 months after the date of enactment of this Act 
on the costs of baseline environmental studies to gather, 
analyze, and characterize resource data necessary to im-
109 
plement the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 et seq.). The Secretary shall include in the 
report proposals of fees or other ways to recoup such costs 
from persons engaging or seeking to engage in activities 
on the Outer Continental Shelf to which that Act applies. 
SEC. 225. CUMULATIVE IMPACTS ON MARINE MAMMAL SPE-
CIES AND STOCKS AND SUBSISTENCE USE. 
Section 20 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1346) is further amended by adding at the 
end the following: 
‘‘(h) CUMULATIVE IMPACTS ON MARINE MAMMAL 
SPECIES AND STOCKS AND SUBSISTENCE USE.—In deter-
mining, pursuant to subparagraphs (A)(i) and (D)(i) of 
section 101(a)(5) of the Marine Mammal Protection Act 
of 1972 (16 U.S.C.1371(a)(5)), whether takings from 
specified activities administered under this title will have 
a negligible impact on a marine mammal species or stock, 
and not have an unmitigable adverse impact on the avail-
ability of such species or stock for taking for subsistence 
uses, the Secretary of Commerce or Interior shall incor-
porate any takings of such species or stock from any other 
reasonably foreseeable activities administered under this 
Act.’’.
110 
Subtitle B—Royalty Relief for 
American Consumers 
SEC. 231. SHORT TITLE. 
This subtitle may be cited as the ‘‘Royalty Relief for 
American Consumers Act of 2010’’. 
SEC. 232. ELIGIBILITY FOR NEW LEASES AND THE TRANS-
FER OF LEASES. 
(a) ISSUANCE OF NEW LEASES.— 
(1) IN
GENERAL.—The Secretary shall not 
issue any new lease that authorizes the production 
of oil or natural gas under the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) to a per-
son described in paragraph (2) unless the person has 
renegotiated each covered lease with respect to which 
the person is a lessee, to modify the payment re-
sponsibilities of the person to require the payment of 
royalties if the price of oil and natural gas is greater 
than or equal to the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)). 
(2) PERSONS DESCRIBED.—A person referred 
to in paragraph (1) is a person that— 
(A) is a lessee that—
111 
(i) holds a covered lease on the date 
on which the Secretary considers the 
issuance of the new lease; or 
(ii) was issued a covered lease before 
the date of enactment of this Act, but 
transferred the covered lease to another 
person or entity (including a subsidiary or 
affiliate of the lessee) after the date of en-
actment of this Act; or 
(B) any other person that has any direct 
or indirect interest in, or that derives any ben-
efit from, a covered lease. 
(3) MULTIPLE LESSEES.— 
(A) IN GENERAL.—For purposes of para-
graph (1), if there are multiple lessees that own 
a share of a covered lease, the Secretary may 
implement separate agreements with any lessee 
with a share of the covered lease that modifies 
the payment responsibilities with respect to the 
share of the lessee to include price thresholds 
that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of 
section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
112 
(B) TREATMENT OF SHARE AS COVERED 
LEASE.—Beginning on the effective date of an 
agreement under subparagraph (A), any share 
subject to the agreement shall not constitute a 
covered lease with respect to any lessees that 
entered into the agreement. 
(b) TRANSFERS.—A lessee or any other person who 
has any direct or indirect interest in, or who derives a 
benefit from, a lease shall not be eligible to obtain by sale 
or other transfer (including through a swap, spinoff, serv-
icing, or other agreement) any covered lease, the economic 
benefit of any covered lease, or any other lease for the 
production of oil or natural gas in the Gulf of Mexico 
under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.), unless the lessee or other person has— 
(1) renegotiated each covered lease with respect 
to which the lessee or person is a lessee, to modify 
the payment responsibilities of the lessee or person 
to include price thresholds that are equal to or less 
than the price thresholds described in clauses (v) 
through (vii) of section 8(a)(3)(C) of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); 
or 
(2) entered into an agreement with the Sec-
retary to modify the terms of all covered leases of
113 
the lessee or other person to include limitations on 
royalty relief based on market prices that are equal 
to or less than the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)). 
(c) USE OF AMOUNTS FOR DEFICIT REDUCTION.— 
Notwithstanding any other provision of law, any amounts 
received by the United States as rentals or royalties under 
covered leases shall be deposited in the Treasury and used 
for Federal budget deficit reduction or, if there is no Fed-
eral budget deficit, for reducing the Federal debt in such 
manner as the Secretary of the Treasury considers appro-
priate. 
(d) DEFINITIONS.—In this section— 
(1) COVERED
LEASE.—The term ‘‘covered 
lease’’ means a lease for oil or gas production in the 
Gulf of Mexico that is— 
(A) in existence on the date of enactment 
of this Act; 
(B) issued by the Department of the Inte-
rior under section 304 of the Outer Continental 
Shelf Deep Water Royalty Relief Act (43 
U.S.C. 1337 note; Public Law 104-58); and
114 
(C) not subject to limitations on royalty re-
lief based on market price that are equal to or 
less than the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of 
the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(C)). 
(2) LESSEE.—The term ‘‘lessee’’ includes any 
person or other entity that controls, is controlled by, 
or is in or under common control with, a lessee. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 233. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 
PROVISIONS. 
The Secretary of the Interior shall agree to a request 
by any lessee to amend any lease issued for any Central 
and Western Gulf of Mexico tract in the period of January 
1, 1996, through November 28, 2000, to incorporate price 
thresholds applicable to royalty suspension provisions, that 
are equal to or less than the price thresholds described 
in clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer 
Continental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1337(a)(3)(C)). Any amended lease shall impose the new 
or revised price thresholds effective October 1, 2010. Ex-
isting lease provisions shall prevail through September 30, 
2010.
115 
Subtitle C—Limitation on 
Moratorium 
SEC. 241. LIMITATION OF MORATORIUM ON CERTAIN PER-
MITTING AND DRILLING ACTIVITIES. 
(a) IN GENERAL.—The moratorium set forth in the 
decision memorandum of the Secretary of the Interior en-
titled ‘‘Decision memorandum regarding the suspension of 
certain offshore permitting and drilling activities on the 
Outer Continental Shelf’’ and dated July 12, 2010, and 
any suspension of operations issued in connection with the 
moratorium, shall not apply to an application for a permit 
to drill submitted on or after the effective date of this Act 
if the Secretary determines that the applicant— 
(1) has complied with the notice entitled ‘‘Na-
tional Notice to Lessees and Operators of Federal 
Oil and Gas Leases, Outer Continental Shelf 
(OCS)’’ dated June 8, 2010 (NTL No. 2010–N05) 
and the notice entitled ‘‘National Notice to Lessees 
and Operators of Federal Oil and Gas Leases, Outer 
Continental Shelf (OCS)’’ dated June 18, 2010 
(NTL No. 2010–N06); 
(2) has complied with additional safety meas-
ures recommended by the Secretary as of the date 
of the enactment of this Act; and
116 
(3) has completed all required safety inspec-
tions. 
(b) DETERMINATION ON PERMIT.—Not later than 30 
days after the date on which the Secretary makes a deter-
mination that an applicant has complied with paragraphs 
(1), (2), and (3) of subsection (a), the Secretary shall 
make a determination on whether to issue the permit. 
(c) NO SUSPENSION OF CONSIDERATION.—No Fed-
eral entity shall suspend the active consideration of, or 
preparatory work for, permits required to resume or ad-
vance activities suspended in connection with the morato-
rium. 
(d) REPORT TO CONGRESS.—Not later than October 
31, 2010, the Secretary shall report to the House Com-
mittee on Natural Resources and the Senate Committee 
on Energy and Natural Resources on the status of: (1) 
the collection and analysis of evidence regarding the poten-
tial causes of the April 20, 2010 explosion and sinking 
of the Deepwater Horizon offshore drilling rig, including 
information collected by the Presidential Commission and 
other investigations; (2) implementation of safety reforms 
described in the May 27, 2010, Departmental report enti-
tled ‘‘Increased Safety Measures for Energy Development 
on the Outer Continental Shelf,’’; (3) the ability of opera-
tors in the Gulf of Mexico to respond effectively to an oil
117 
spill in light of the Deepwater Horizon incident; and (4) 
industry and government efforts to engineer, design, con-
struct and assemble wild well intervention and blowout 
containment resources necessary to contain an uncon-
trolled release of hydrocarbons in deep water should an-
other blowout occur. 
(e) SAVINGS CLAUSE.—Nothing herein affects the 
Secretary’s authority to suspend offshore drilling permit-
ting and drilling operations based on the threat of signifi-
cant, irreparable or immediate harm or damage to life, 
property, or the marine, coastal or human environment 
pursuant to the Outer Continental Shelf Lands Act (43 
U.S.C. 133 et seq.). 
TITLE III—OIL AND GAS 
ROYALTY REFORM 
SEC. 301. AMENDMENTS TO DEFINITIONS. 
Section 3 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1702) is amended— 
(1) in paragraph (8), by striking the semicolon 
and inserting ‘‘including but not limited to the Act 
of October 20, 1914 (38 Stat. 741); the Act of Feb-
ruary 25, 1920 (41 Stat. 437); the Act of April 17, 
1926 (44 Stat. 301); the Act of February 7, 1927 
(44 Stat. 1057); and all Acts heretofore or hereafter
118 
enacted that are amendatory of or supplementary to 
any of the foregoing Acts;’’; 
(2) in paragraph (20)(A), by striking ‘‘: Pro-
vided, That’’ and all that follows through ‘‘subject of 
the judicial proceeding’’; 
(3) in paragraph (20)(B), by striking ‘‘(with 
written notice to the lessee who designated the des-
ignee)’’; 
(4) in paragraph (23)(A), by striking ‘‘(with 
written notice to the lessee who designated the des-
ignee)’’; 
(5) by striking paragraph (24) and inserting 
the following: 
‘‘(24) ‘designee’ means a person who pays, off-
sets, or credits monies, makes adjustments, requests 
and receives refunds, or submits reports with respect 
to payments a lessee must make pursuant to section 
102(a);’’; 
(6) in paragraph (25)(B)— 
(A) by striking ‘‘(subject to the provisions 
of section 102(a) of this Act)’’; and 
(B) in clause (ii) by striking the matter 
after subclause (IV) and inserting the following: 
‘‘that arises from or relates to any lease, easement, right- 
of-way, permit, or other agreement regardless of form ad-
119 
ministered by the Secretary for, or any mineral leasing 
law related to, the exploration, production, and develop-
ment of oil and gas or other energy resource on Federal 
lands or the Outer Continental Shelf;’’. 
(7) in paragraph (29), by inserting ‘‘or permit’’ 
after ‘‘lease’’; and 
(8) by striking ‘‘and’’ after the semicolon at the 
end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting a semicolon, 
and by adding at the end the following new para-
graphs: 
‘‘(34) ‘compliance review’ means a full-scope or 
a limited-scope examination of a lessee’s lease ac-
counts to compare one or all elements of the royalty 
equation (volume, value, royalty rate, and allow-
ances) against anticipated elements of the royalty 
equation to test for variances; and 
‘‘(35) ‘marketing affiliate’ means an affiliate of 
a lessee whose function is to acquire the lessee’s pro-
duction and to market that production.’’. 
SEC. 302. COMPLIANCE REVIEWS. 
Section 101 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1711) is amended by 
adding at the end the following new subsection: