Outer Continental Shelf Lands Act Amendments
PL 95-372 (S.9), enacted 09/18/1978

PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT, e.29 
Public Law 95-372 
95th Congress 
An Act 
To establish a policy for the management of oil and natural gas in the Outer 
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Ck)ntinental Shelf; to protect the marine and coastal environment; to amend 
[S. 9] 
the Outer Continental Shelf Lands Act; and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress asserribled^ That this Act may be Outer 
cited as the "Outer Continental Shelf Lands Act Amendments of Continental Sbelf 
1978". 
Lands Act 
TABLE OF CONTENTS 
Amendments of 
1978. 
TITLE I—FINDINGS AND PURPOSES WITH RESPECT TO MANAGING 43 USC 1801 
THE RESOURCES OF THE OUTER CONTINENTAL SHELF 
note. 
Sec. 101. Findings. 
Sec. 102. Purposes. 
TITLE II—AMENDMENTS TO THE OUTER CONTINENTAL 
SHELF LANDS ACT 
Sec. 201. Definitions. 
Sec. 202. National policy for the Outer Continental Shelf. 
Sec. 203. Laws applicable to the Outer Continental Shelf. 
Sec. 204. Outer Continental Shelf exploration and development administration; 
Sec. 205. Revision of bidding and lease administration. 
Sec. 206. Outer Continental Shelf oil and gas exploration. 
Sec. 207. Annual report. 
Sec. 208. New sections of the Outer Continental Shelf Lands Act. 
"Sec. 18. Outer Continental Shelf leasing program. 
"Sec. 19. Coordination and consultation with affected States and local 
governments. 
"Sec. 20. Environmental studies. 
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"Sec. 21. Safety regulations. 
"Sec. 22. Enforcement. 
"Sec. 23. Citizen suits, court jurisdiction, and judicial review. 
"Sec. 24. Remedies and penalties. 
"Sec. 25. Oil and gas development and production. 
"Sec. 26. Outer Continental Shelf oil and gas information program. 
"Sec. 27. Federal purchase and disposition of oil and gas. 
"Sec. 28. Limitation on export. 
"Sec. 29. Restrictions on employment. 
"Sec. 30. Documentation, registry, and manning requirements.". 
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TITLE III—OFFSHORE OIL SPILL POLLUTION FUND 
Sec. 301. Definitions. 
Sec. 302. F^md establishment, administration, and financing. 
Sec. 303. Damages and claimants. 
Sec. 304. Liability. 
Sec. 305. Financial responsibility. 
Sec. 306. Notification, designation, and advertisement. 
Sec. 307. Claims settlement. 
Sec. 308. Subrogation. 
, 
Sec. 309. Jurisdiction and venue. 
Sec. 310. Relationship to other law. 
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Sec. 311. Prohibition. 
, 
Sec. 312. Penalties. 
Sec. 313. Authorization of appropriation. 
Sec. 314. Annual report. 
Sec, 315. Effective dates. 
92 STAT. 630 
PUBLIC LAW 95-372—SEPT. 18, 1978 
TITLE IV—FISHERMEN'S CONTINGENCY FUND 
Sec. 401. Definitions. 
Sec. 402. Establishment of the Fishermen's Contingency Fund; fee collection. 
Sec. 403. Duties and powers. 
Sec. 404. Burden of proof. 
Sec. 405. Claim procedures and subrogation of rights. 
Sec. 406. Annual report. 
Sec. 407. Survey of obstructions on the Outer Continental Shelf. 
TITLE V—AMENDMENTS TO THE COASTAL ZONE MANAGEMENT 
ACT OF 1972 
Sec. 501. Coastal energy impact program. 
Sec. 502. Authorization of appropriations. 
Sec. 503. Outer Continental Shelf grants. 
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Sec. 504. State management program. 
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TITLE VI—MISCELLANEOUS PROVISIONS 
Sec. 601. Review of shut-in or flaring wells. 
Sec. 602. Review and revision of royalty payments. 
Sec. 603. Natural gas distribution. 
Sec. 604. Antidiscrimination provisions. 
Sec. 605. Sunshine in Government. 
Sec. 606. Investigation of availability of oil and natural gas from the Outer 
Continental Shelf. 
Sec. 607. Recommendations for training program. 
Sec. 608. Relationship to existing law. 
TITLE I—FINDINGS AND PURPOSES WITH RESPECT TO 
MANAGING THE RESOURCES OF THE OUTER CONTI-
NENTAL SHELF 
riNDINGS 
43 use 1801. 
SEC. 101. The Congress finds and declares that— 
(1) the demand for energy in the United States is increasing 
and will continue to increase for the foreseeable future; 
(2) domestic production of oil and gas has declined in recent 
-, 
years; 
(3) the United States has become increasingly dependent upon 
imports of oil from foreign nations to meet domestic energy 
demand; 
(4) increasing reliance on imported oil is not inevitable, but is 
rather subject to significant reduction by increasing the develop-
ment of domestic sources of energy supply; 
(5) consumption of natural gas in the United States has greatly 
exceeded additions to domestic reserves in recent years; 
(6) technology is or can be made available which will allow sig-
nificantly increased domestic production of oil and gas without 
undue harm or damage to the environment; 
(7) the Outer Continental Shelf contains significant quantities 
of oil and natural gas and is a vital national resource reserve which 
must be carefully managed so as to realize fair value, to preserve 
and maintain competition, and to reflect the public interest; 
(8) there presently exists a variety of technological, economic, 
environmental, administrative, and legal problems which tend to 
retard the development of the oil and natural gas reserves of the 
Outer Continental Shelf; 
(9) environmental and safety regulations relating to activi-
ties on the Outer Continental Shelf should be reviewed in light of 
current technology and information; 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 631 
(10) the development, processing, and distribution of the oil 
and gas resources of the Outer Continental Shelf, and the siting 
of related energy facilities, may cause adverse impacts on various 
States and local governments; 
(11) policies, plans, and programs developed by States and 
local governments in response to activities on the Outer Conti-
nental Shelf cannot anticipate and ameliorate such adverse 
impacts unless such States, working in close cooperation with 
affected local governments, are provided with timely access to 
information regarding activities on the Outer Continental Shelf 
and an opportunity to review and comment on decisions relating 
to such activities; 
(12) funds must be made available to pay for the prompt 
removal of any oil spilled or discharged as a result of activities on 
the Outer Continental Shelf and for any damages to public or 
private interests caused by such spills or discharges; 
(13) because of the possible conflicts between exploitation of 
the oil and gas resources in the Outer Continental Shelf and other 
uses of the marine environment, including fish and shellfish 
growth and recovery, and recreational activity, the Federal Gov-
ernment must assume responsibility for the minimization or elimi-
nation of any conflict associated with such exploitation; 
(14) the oil and gas resources of the Outer Continental Shelf 
are limited, nonrenewable resources which must be developed in 
a manner which takes into consideration the Nation's long-range 
energy needs and also assures adequate protection of the renew-
able resources of the Outer Continental Shelf which are a con-
tinuing and increasingly important source of food and protein 
to the Nation and the world; and 
(15) funds must be made available to pay for damage to com-
mercial fishing vessels and gear resulting from activities involving 
oil and gas exploration, development, and production on the Outer 
Continental Shelf. 
PURPOSES 
SEC. 102. The purposes of this Act are to— 
43 USC 1802. 
(1) establish policies and procedures for managing the oil and 
natural gas resources of the Outer Continental Shelf which are 
intended to result in expedited exploration and development of 
the Outer Continental Shelf in order to achieve national eco-
nomic and energy policy goals, assure national security, reduce 
dependence on foreign sources, and maintain a favorable bal-
ance of payments in world trade; 
(2) preserve, protect, and develop oil and natural gas resources 
in the Outer Continental Shelf in a manner which is consistent 
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with the need (A) to make such resources available to meet the 
Nation's energy needs as rapidly as possible, (B) to balance 
orderly energy resource development with protection of the 
human, marine, and coastal environments, (C) to insure the public 
a fair and equitable return on the resources of the Outer Conti-
nental Shelf, and (D) to preserve and maintain free enterprise 
competition; 
(3) encourage development of new and improved teclmoloffy 
for energy resource production which will eliminate or minimize 
risk of damage to the human, marine, and coastal environments ; 
(4) provide States, and through States, local governments, 
which are impacted by Outer Continental Shelf oil and gas explo-
92 STAT. 632 
PUBLIC LAW 95-372—SEPT. 18, 1978 
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ration, development, and production with comprehensive assist-
ance in order to anticipate and plan for such impact, and thereby 
to assure adequate protection of the human environment; 
(5) assure that States, and through States, local governments, 
have timely access to information regarding activities on the 
Outer Continental Shelf, and opportunity to review and comment 
on decisions relating to such activities, in order to anticipate, 
ameliorate, and plan for the impacts of such activities; 
(6) assure that States, and through States, local governments, 
which are directly affected by exploration, development, and pro-
duction of oil and natural gas are provided an opportunity to par-
ticipate in policy and planning decisions relating to management 
of the resources of the Outer Continental Shelf; 
(7) minimize or eliminate conflicts between the exploration, 
development, and production of oil and natural gas, and the recov-
ery of other resources such as fish and shellfish; 
(8) establish an oilspill liability fund to pay for the prompt 
removal of any oil spilled or discharged as a result of activities on 
the Outer Continental Shelf and for any damages to public or 
private interests caused by such spills or discharges; 
(9) insure that the extent of oil and natural gas resources of the 
Outer Continental Shelf is assessed at the earliest practicable 
time; and 
(10) establish a fishermen's contingency fund to pay for dam-
ages to commercial fishing vessels and gear due to Outer Conti-
nental Shelf activities. 
TITLE II—AMENDMENTS TO THE OUTER CONTINENTAL 
SHELF LANDS ACT 
DEFINinONS 
SEO. 201. (a) Paragraphs (b) and (c) of section 2 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 (b) and (c)) are 
amended to read as follows: 
"(b) The term'Secretary'means the Secretary of the Interior, ex-
cept that with respect to functions under this Act transferred to, or 
vested in, the Secretary of Energy or the Federal Energy Regulatory 
Commission W or pursuant to the Department of Energy Organization 
Act (42 U.S.C. 7101 et seq.), the term 'Secretary' means the Secretary 
of Energy, or the Federal Energy Regulatory Commission, as the case 
may be; 
"(c) The term 'lease' means any form of authorization which is 
43 use 1337, 
issued under section 8 or maintained under section 6 of this Act and 
1335. 
which authorizes exploration for, and development and production of, 
minerals;". 
(b) Such section is further amended— 
(1) in paragraph (d), by striking out the period and inserting 
in lieu thereof a semicolon; and 
(2) by adding at the end thereof the following new paragraphs: 
" (e) The term 'coastal zone' means the coastal waters (including the 
lands therein and thereunder) and the adjacent shorelands (includ-
ing the waters therein and thereunder), strongly influenced by each 
other and in proximity to the shorelines of the several coastal States, 
and includes islands, transition and intertidal areas, salt marshes, 
wetlands, and beaches, which zone extends seaward to the outer limit 
of the United States territorial sea and extends inland from the shore-
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 633 
lines to the extent necessary to control shorelands, the uses of which 
have a direct and significant impact on the coastal waters, and the 
inward boundaries of which may be identified by the several coastal 
States, pursuant to the authority of section 305(b) (1) of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1454(b) (1)) ; 
"(f) The term'affected State'means, with respect to any program, 
plan, lease sale, or other activity, proposed, conducted, or approved 
pursuant to the provisions of this Act, any State— 
"(1) the laws of which are declared, pursuant to section 4(a) 
(2) of this Act, to be the law of the United States for the portion 
of the outer Continental Shelf on which such activity is, or is 
proposed to be, conducted; 
" (2) which is, or is proposed to be, directly connected by trans-
portation facilities to any artificial island or structure referred 
to in section 4(a) (1) of this Act j 
43 USC 1333. 
"(3) which is receiving, or m accordnace with the proposed 
activity will receive, oil for processing, refining, or transshipment 
which was extracted from the outer Continental Shelf and trans-
ported directly to such State by means of vessels or by a combina-
tion of means mcluding vessels; 
"(4) which is designated by the Secretary as a State in which 
there is a substantial probability of significant impact on or 
damage to the coastal, marine, or numan environment, or a State 
in which there will be significant changes in the social, govern-
mental, or economic infrastructure, resulting from the explora-
tion, development, and production of oil and gas anywhere on 
the outer Continental Shelf; or 
"(5) in which the Secretary finds that because of such activity 
there is, or will be, a significant risk of serious damage, due to 
factors such as prevailing winds and currents, to the marine or 
coastal environment in the event of any oilspill, blowout, or 
release of oil or gas from vessels, pipelines, or other transship-
ment facilities; 
"(g) The term 'marine environment' means the physical, atmos-
pheric, and biological components, conditions, and factors which 
interactively determine the productivity, state, condition, and quality 
of the marine ecosystem, including the waters of the high seas, the 
contiguous zone, transitional and mtertidal areas, salt marshes, and 
wetlands within the coastal zone and on the outer Continental Shelf; 
"(h) The term 'coastal environment' means the physical atmos-
pheric, and biological components, conditions, and factors which 
interactively determine the productivity, state, condition, and quality 
of the terrestrial ecosystem from the shoreline inward to the boundaries 
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of the coastal zone; 
"(i) The term'human environment'means the physical, social, and 
economic components, conditions, and factors which interactively 
determine the state, condition, and quality of living conditions, 
employment, and health of those affected, directly or indirectly, by 
activities occurring on the outer Continental Shelf; 
"(j) The term 'Governor' means the Governor of a State, or the 
person or entity designated by, or pursuant to. State law to exercise 
the powers granted to such Governor pursuant to this Act; 
"(k) The term 'exploration' means the process of searching for 
minerals, including (1) geophysical surveys where magnetic, gravity, 
seismic, or other systems are used to detect or imply the presence of 
such minerals, and (2) any drilling, whether on or off known geologi-
92 STAT. 634 
PUBLIC LAW 95-372—SEPT. 18, 1978 
cal structures, including the drilling of a well in which a discovery of 
oil or natural gas in paying quantities is made and the drilling of any 
additional delineation well after such discovery which is needed to 
delineate any reservoir and to enable the lessee to determine whether to 
proceed with development and production; 
" (1) The term 'development' means those activities which take place 
following discovery of minerals in paying quantities, including geo-
physical activity, drilling, platform construction, and operation of ail 
onshore support facilities, and which are for the purpose of ultimately 
producing the minerals discovered; 
"(m) The term 'production' means those activities which take place 
after the successful completion of any means for the removal of min-
erals, including such removal, field operations, transfer of minerals 
to shore, operation monitoring, maintenance, and work-over drilling; 
"(n) The term'antitrust law'means— 
" (1) the Sherman Act (15 U.S.C. 1 et seq.); 
"(2) the Clayton Act (15 U.S.C. 12 et seq.); 
" (3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.); 
"(4) the Wilson Tariff Act (15 U.S.C. Set seq.); or 
"(5) the Act of June 19,1936, chapter 592 (15 U.S.C. 13,13a, 
13b, and2La); 
"(o) The term 'fair market value' means the value of any mineral 
(1) computed at a unit price equivalent to the average unit price at 
which such mineral was sold pursuant to a lease during the period 
for which any royalty or net profit share is accrued or reserved to the 
United States pursuant to such lease, or (2) if there were no such 
sales, or if the Secretary finds that there were an insufficient number 
of such sales to equitably determine such value, computed at the aver-
age unit price at which such mineral was sold pursuant to other leases 
in the same region of the outer Continental Shelf during such period, 
or (3) if there were no sales of such mineral from such region during 
such period, or if the Secretary finds that there are an insufficient 
number of such sales to equitably determine such value, at an appro-
priate price determined by the Secretary; 
"(p) The term 'major Federal action' means any action or proposal 
by the Secretary which is subject to the provisions of section 102(2) 
(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2) (C)); and 
"(q) The term 'minerals' includes oil, gas, sulphur, geopressured-
geothermal and associated resources, and all other minerals which 
are authorized by an Act of Congress to be produced from 'public 
lands' as defined in section 103 of the Federal Land Policy and Man-
43 use 1702. 
agement Act of 1976.". 
NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF 
SEC. 202. Section 3 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1332) is amended to read as follows: 
"SEC. 3. NATIONAL POLICY FOR THE OUTER CONTINENTAL SHELF.— 
It is hereby declared to be the policy of the United States that— 
"(1) the subsoil and seabed of the outer Continental Shelf 
appertain to the United States and are subject to its jurisdiction, 
^ 
control, and power of disposition as provided in this Act; 
" (2) this Act shall be construed in such a manner that the char-
acter of the waters above the outer Continental Shelf as high seas 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 635 
and the right to navigation and fishing therein shall not be 
affected; 
"(3) the outer Continental Shelf is a vital national resource 
reserve held by the Federal Government for the public, which 
should be made available for expeditious and orderly development, 
subject to environmental safeguards, in a manner which is con-
sistent with the maintenance of competition and other national 
needs; 
"(4) since exploration, development, and production of the 
minerals of the outer Continental Shelf will have significant 
impacts on coastal and non-coastal areas of the coastal States, 
and on other affected States, and, in recognition of the national 
interest in the effective management of the marine, coastal, and 
human environments— 
"(A) such States and their affected local governments may 
require assistance in protecting their coastal zones and other 
affected areas from any temporary or permanent adverse 
effects of such impacts; and 
"(B) such States, and through such States, affected local 
governments, are entitled to an opportunity to participate, 
to the extent consistent with the national interest, in the policy 
and planning decisions made by the Federal Government 
relating to exploration for, and development and production 
of, minerals of the outer Continental Shelf; 
"(5) the rights and responsibilities of all States and, where 
appropriate, local governments, to preserve and protect their 
marine, human, and coastal environments through such means as 
regulation of land, air, and water uses, of safety, and of related 
development and activity should be considered and recognized; 
and 
"(6) operations in the outer Continental Shelf should be con-
ducted in a safe manner by well-trained personnel using tech-
nology, precautions, and techniques sufficient to prevent or mini-
mize the likelihood of blowouts, loss of well control, fires, spill-
ages, physical obstruction to other users of the waters or subsoil 
and seabed, or other occurrences which may cause damage to the 
environment or to property, or endanger life or health.". 
LAWS APPLICABLE TO THE OUTER CONTINENTAL 
SHELF 
SEC. 203. (a) Section 4(a) (1) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1333 (a) (1)) is amended— 
(1) by striking out "and fixed structures" and inserting in lieu 
thereof ", and all installations and other devices permanently or 
temporarily attached to the seabed,"; and 
(2) by striking out "removing, and transporting resources 
therefrom" and inserting in lieu thereof "or producing resources 
therefrom, or any such installation or other device (other than a 
ship or vessel) for the purpose of transporting such resources". 
(b) Section 4(a) (2) of such Act is amended by redesigning para-
graph (2) as (2)(A) and by adding at the end thereof the following 
new subparagraph: 
"(B) Within one year after the date of enactment of this subpara-
graph, the President shall establish procedures for setting any out-
standing international boundary dispute respecting the outer Conti-
nental Shelf.". 
39-194 O—80—pt. 1 
44 : QL3 
92 STAT. 636 
PUBLIC LAW 95-372--SEPT. 18, 1978 
43 use 1333. 
(c) Section 4(c) of such Act is amended by striking out "described 
in subsection (b)" and inserting in lieu thereof "conducted on the 
: 
outer Continental Shelf for the purpose of exploring for, developing, 
removing, or transporting by pipeline the natural resources, or involv-
ing rights to the natural resources, of the subsoil and seabed of the 
outer Continental Shelf". 
(d) Section 4(d) of such Act is amended to read as follows: 
29 use 167. 
"(d) For the purposes of the National Labor Relations Act, as 
amended, any unfair labor practice, as defined in such Act, occurring 
upon any artificial island, installation, or other device referred to in 
subsection (a) of this section shall be deemed to have occurred within 
the judicial district of the State, the laws of which apply to such arti-
ficial island, installation, or other device pursuant to such subsection, 
except that until the President determines the areas within which 
such State laws are applicable, the judicial district shall be that of the 
State nearest the place of location of such artificial island, installation, 
or other device.". 
43 use 1333. 
(e) Section 4 of such Act is amended— 
(1) in paragraph (1) of subsection (e), by striking out "the 
islands and structures referred to in subsection (a)", and inserting 
in lieu thereof "the artificial islands, installations, and other 
devices referred to in subsection (a) "; 
(2) in subsection (f), by striking out "artificial islands and 
fixed structures located on the outer Continental Shelf" and 
inserting in lieu thereof "the artificial islands, installations, and 
other devices referred to in subsection (a)"; and 
(3) in subsection (g), by striking out "the artificial islands and 
fixed structures referred to in subsection (a)" and inserting in 
lieu thereof "the artificial islands, installations, and other devices 
referred to in subsection (a)". 
(f) Section 4(e) (1) of such Act is amended by striking out "head" 
and inserting in lieu thereof "Secretary". 
(g) Section 4(e) (2) of such Act is amended to read as follows: 
" (2) The Secretary of the Department in which the Coast Guard is 
operating may mark for the protection of navigation any artificial 
island, installation, or other device referred to in subsection (a) when-
ever the owner has failed suitably to mark such island, installation, or 
other device in accordance with regulations issued under this Act, and 
the owner shall pay the cost of such marking.". 
(h) Section 4 of such Act is further amended by striking out sub-
section (b) and relettering subsections (c), (d), (e), (f), and (g) as 
subsections (b), (c), (d), (e), and (f), respectively. 
OUTER CONTINENTAL S H E U ' EXPLORATION AND DEVELOPMENT 
ADMINISTRATION 
Rules and 
SEC. 204. Section 5 of the Outer Continental Shelf Lands Act (43 
regulations. 
U.S.C. 1334) is amended to read as follows: 
"SEC. 5. ADMINISTRATION OF LEASING or THE OUTER CONTINENTAL 
SHELF.—(a) The Secretary shall administer the provisions of this Act 
relating to the leasing of the outer Continental Shelf, and shall 
prescribe such rules and regulations as may be necessary to carry out 
such provisions. The Secretary may at any time prescribe and amend 
such rules and regulations as he determines to be necessary and proper 
in order to provide for the prevention of waste and conservation of 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 637 
the natural resources of the outer Continental Shelf, and the protec-
tion of correlative rights therein, and, notwithstanding any other pro-
visions herein, such rules and regulations shall, as of their effective 
date, apply to all operations conducted under a lease issued or main-
tained under the provisions of this Act. In the enforcement of safety, 
environmental, and conservation laws and regulations, the Secretary 
shall cooperate with the relevant departments and agencies of the Fed-
eral Government and of the affected States. In the formulation and 
promulgation of regulations, the Secretary shall request and give due 
consideration to the views of the Attorney General with respect to 
matters which may affect competition. In considering any regulations 
and in preparing any such views, the Attorney General shall consult 
with the Federal Trade Commission. The regulations prescribed by the 
Secretary imder this subsection shall include, but not be limited to, 
provisions— 
"(1) for the suspension or temporary prohibition of any opera-
tion or activity, including production, pursuant to any lease or 
permit (A) at the request of a lessee, in the national interest, to 
facilitate proper development of a lease or to allow for the con-
struction or negotiation for use of transportation facilities, or (B) 
if there is a threat of serious, irreparable, or immediate harm or 
damage to life (including fish and other aquatic life), to property, 
to any mineral deposits (in areas leased or not leased), or to the 
marine, coastal, or human environment, and for the extension of 
any permit or lease affected by suspension or prohibition under 
clause (A) or (B) by a period equivalent to the period of such 
suspension or prohibition, except that no permit or lease shall be 
so extended when such suspension or prohibition is the result of 
gross negligence or willful violation of such lease or permit, or of 
regulations issued with respect to such lease or permit; 
" (2) with respect to cancellation of any lease or permit— 
"(A) that such cancellation may occur at any time, if the 
Secretary determines, after a hearing, that— 
"(i) continued activity pursuant to such lease or per-
mit would probably cause serious harm or damage to life 
(including fish and other aquatic life), to property, to 
any mineral (in areas leased or not leased), to the 
national security or defense, or to the marine, coastal, or 
human environment; 
" (ii) the threat of harm or damage will not disappear 
or decrease to an acceptable extent within a reasonable 
period of time; and 
"(iii) the advantages of cancellation outweigh the 
advantages of continuing such lease or permit in force; 
"(B) that such cancellation shall not occur unless and until 
operations under such lease or permit shall have been under 
suspension, or temporary prohibition, by the Secretary, with 
due extension of any lease or permit term continuously for a 
period of five years, or for a lesser period upon request of the 
lessee; 
"(C) that such cancellation shall entitle the lessee to receive 
such compensation as he shows to the Secretary as being equal 
to the lesser of (i) the fair value of the canceled rights as of 
the date of cancellation, taking account of both anticipated 
revenues from the lease and anticipated costs, including costs 
Federal Trade 
Commission, 
consultation. 
92 STAT. 638 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Judicial review. 
Pipeline rights-
of-way. 
Secretary of 
Energy, 
consultation. 
Notice and 
hearing. 
of compliance with all applicable regulations and operating 
orders, liability for cleanup costs or damages, or both, in the 
case of an oilspill, and all other costs reasonably anticipated 
on the lease, or (ii) the excess, if any, over the lessee's reve-
nues, from the lease (plus interest thereon from the date of 
receipt to date of reimbursement) of all consideration paid 
for the lease and all direct expenditures made by the lessee 
after the date of issuance of such lease and in connection with 
exploration or development, or both, pursuant to the lease 
(plus interest on such consideration and such expenditures 
from date of payment to date of reimbursement), except that 
(I) with respect to leases issued before the date of enactment 
of this subparagraph, such compensation shall be equal to the 
amount specified in clause (i) of this subparagraph; and (II) 
in the case of joint leases which are canceled due to the failure 
of one or more partners to exercise due diligence, the innocent 
parties shall have the right to seek damages for such loss from 
the responsible party or parties and the right to acquire the 
interests of the negligent party or parties and be issued the 
lease in question; 
" (3). for the assignment or relinquishment of a lease; 
" (4) for unitization, pooling, and drilling agreements; 
"(5) for the subsurface storage of oil and gas other than by 
the Federal Government; 
"(6) for drilling or easements necessary for exploration, 
development, and production; 
" (7) for the prompt and efficient exploration and development 
of a lease area; and 
"(8) for compliance with the national ambient air quality 
standards pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), 
to the extent that activities authorized under this Act significantly 
affect the air quality of any State. 
"(b) The issuance and continuance in effect of any lease, or of any 
assignment or other transfer of any lease, under the provisions of this 
Act shall be conditioned upon compliance with regulations issued 
under this Act. 
"(c) Whenever the owner of a nonproducing lease fails to comply 
with any of the provisions of this Act, or of the lease, or of the regu-
lations issued under this Act, such lease may be canceled by the Sec-
retary, subject to the right of judicial review as provided in this Act, 
if such default continues for the period of thirty days after mailing of 
notice by registered letter to the lease owner at his record post office 
address. 
"(d) Whenever the owner of any producing lease fails to comply 
with any of the provisions of this Act, of the lease, or of the regula-
tions issued under this Act, such lease may be forfeited and canceled 
by an appropriate proceeding in any United States district court hav-
ing jurisdiction under the provisions of this Act. 
"(e) Rights-of-way through the submerged lands of the outer Con-
tinental Shelf, whether or not such lands are included in a lease main-
tained or issued pursuant to this Act, may be granted by the 
Secretary for pipeline purposes for the transportation of oil, natural 
gas, sulphur, or other minerals, or under such regulations and upon 
such conditions as may be prescribed by the Secretary, or where appro-
priate the Secretary of Transportation, including (as provided in 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 639 
section 21 (b) of this Act) assuring maximum environmental protection 
by utilization of the best available and safest technologies, including 
the safest practices for pipeline burial and upon the express condition 
that oil or gas pipelines shall transport or purchase without discrim-
ination, oil or natural gas produced from submerged lands or outer 
Continental Shelf lands in the vicinity of the pipelines in such propor-
tionate amounts as the Federal Energy Regulatory Commission, in 
consultation with the Secretary of Energy, may, after a full hearing 
with due notice thereof to the interested parties, determine to be reason-
able, taking into account, among other things, conservation and the 
prevention of waste. Failure to comply with the provisions of this 
section or the regulations and conditions prescribed under this section 
shall be ground for forfeiture of the grant in an appropriate judicial 
proceeding instituted by the United States in any United States 
district court having jurisdiction under the provisions of this Act. 
"(f)(1) Except as provided in paragraph (2), every permit, license, 
easement, right-of-way, or other grant of authority for the transporta-
tion by pipeline on or across the outer Continental Shelf of oil or gas 
shall require that the pipeline be operated in accordance with the 
following competitive principles: 
"(A) The pipeline must provide open and nondiscriminatory 
access to both owner and nonowner shippers. 
"(B) Upon the specific request of one or more owner or non-
owner shippers able to provide a guaranteed level of throughput, 
and on the condition that the shipper or shippers requesting such 
expansion shall be responsible for bearing their proportionate 
share of the costs and risks related thereto, the Federal Energy 
Regulatory Commission may, upon finding, after a full hearing 
with due notice thereof to the interested parties, that such expan-
sion is within technological limits and economic feasibility, order 
a subsequent expansion of throughput capacity of any pipeline for 
which the permit, license, easement, right-of-way, or other grant 
of authority is approved or issued after the date of enactment of 
this subparagraph. This subparapragh shall not apply to any 
such grant of authority approved or issued for the Gulf of Mexico 
or the Santa Barbara Channel. 
" (2) The Federal Energj'^ Regulatory Commission may, by order or 
regulation, exempt from any or all of the requirements of paragraph 
(1) of this subsection any pipeline or class of pipelines which feeds 
into a facility where oil and gas are first collected or a facility where 
oil and gas are first separated, dehydrated, or otherwise processed. 
"(3) The Secretary of Energy and the Federal Energy Regulatory 
Commission shall consult with and give due consideration to the views 
of the Attorney General on specific conditions to be included in any 
permit, license, easement, right-of-way, or grant of authority in order 
to ensure that pipelines are operated in accordance with the competi-
tive principles set forth in paragraph (1) of this subsection. In prepar-
ing any such views, the Attorney General shall consult with the Federal 
Trade Commission. 
"(4) Nothing in this subsection shall be deemed to limit, abridge, 
or modify any authority of the United States under any other provi-
sion of law with respect to pipelines on or across the outer Continental 
Shelf. 
"(g) (1) The leasee shall produce any oil or gas, or both, obtained 
pursuant to an approved development and production plan, at rates 
Post, p. 654. 
Forfeiture of 
grant. 
Notice and 
hearing. 
Regulations. 
Attorney 
General, 
consultation. 
Federal Trade 
Commission, 
consultation. 
Presidential rule 
or order. 
92 STAT. 640 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Regulations. 
Department of 
Energy, 
notification. 
consistent with any rule or order issued by the President in accordance 
with any provision of law. 
" (2) If no rule or order referred to in paragraph (1) has been issued, 
the lessee shall produce such oil or gas, or both, at rates consistent with 
any regulation promulgated by the Secretary of Energy which is to 
assure the maximum rate of production which may be sustainexi with-
out loss of ultimate recovery of oil or gas, or both, under sound engi-
neering and economic principles, and which is safe for the duration 
of the activity covered by the approved plan. The Secretary may permit 
the lessee to vary such rates if he finds that such variance is necessary. 
" (h) The head of any Federal department or agency who takes any 
action which has a direct and significant effect on the outer Continen-
tal Shelf or its development shall promptly notify the Secretary of 
such action and the Secretary shall thereafter notify the Governor of 
any affected State and the Secretary may thereafter recommend such 
changes in such action as are considered appropriate. 
" (i) After the date of enactment of this section, no holder of any oil 
and gas lease issued or maintained pursuant to this Act shall be per-
mitted to flare natural gas from any well unless the Secretary finds 
that there is no practicable way to complete production of such gas, or 
that such flaring is necessary to alleviate a temporary emergency situa-
tion or to conduct testing or work-over operations.". 
REVISION OF BIDDIXG AND LEASE ADMINISTRATION 
SEC. 205. (a) Subsections (a) and (b) of section 8 of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1337 (a) and (b)) are amended 
to read as follows: 
Regulations. 
"(a)(1) The Secretary is authorized to grant to the highest respon-
sible qualified bidder or bidders by competitive bidding, under regula-
tions promulgated in advance, any oil and gas lease on submerged 
lands of the outer Continental Shelf which are not covered by leases 
43 use 1335. 
meeting the requirements of subsection (a) of section 6 of this Act. 
Such regulations may provide for the deposit of cash bids in an 
interest-bearing account until the Secretary announces his decision on 
whether to accept the bids, with the interest earned thereon to be paid 
to the Treasury as to bids that are accepted and to the unsuccessful bid-
ders as to bids that are rejected. The bidding shall be by sealed bid 
and, at the discretion of the Secretary, on the basis of— 
"(A) cash bonus bid with a royalty at not less than 121/^ per 
centum fixed by the Secretary in amount or value of the produc-
tion saved, removed, or sold; 
"(B) variable royalty bid based on a per centum in amount or 
value of the production saved, removed, or sold, with either a fixed 
work commitment based on dollar amount for exploration or a 
fixed cash bonus as determined by the Secretary, or both; 
"(C) cash bonus bid, or work commitment bid based on a dollar 
amount for exploration with a fixed cash bonus, and a diminish-
ing or sliding royalty based on such formulae as the Secretary 
shall determine as equitable to encourage continued production 
from the lease area as resources diminish, but not less than 121^ 
per centum at the beginning of the lease period in amount or 
value of the production saved, removed, or sold; 
'' 
" (D) cash bonus bid with a fixed share of the net profits of no 
less than 30 per centum to be derived from the production of oil 
and gas from the lease area; 
^ 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 641 
"(E) fixed cash bonus with the net profit share reserved as the 
bid variable; 
"(F) cash bonus bid with a royalty at no less than 121/^ per 
centum fixed by the Secretary in amount or value of the produc-
tion saved, removed, or sold and a fixed per centum share of net 
profits of no less than 30 per centum to be derived from the pro-
duction of oil and gas from the lease area; 
"(G) work commitment bid based on a dollar amount for 
exploration with a fixed cash bonus and a fixed royalty in amount 
or value of the production saved, removed, or sold; or 
"(H) subject to the requirements of paragraph (4) of this 
subsection, any modification of bidding systems authorized in 
subparagraphs (A) through (G), or any other systems of bid 
variables, terms, and conditions which the Secretary determines to 
be useful to accomplish the purposes and policies of this Act, 
except that no such bidding system or modification shall have more 
than one bid variable. 
" (2) The Secretary may, in his discretion, defer any part of the pay-
ment of the cash bonus, as authorized in paragraph (1) of this 
subsection, according to a schedule announced at the time of the 
announcement of the lease sale, but such payment shall be made in total 
no later than five years after the date of the lease sale. 
"(3) The Secretary may, in order to promote increased production 
on the lease area, through direct, secondary, or tertiary recovery means, 
reduce or eliminate any royalty or net profit share set forth in the lease 
for such area. 
" (4) (A) The Secretary of Energy shall submit any bidding system Report to 
authorized in subparagraph (H) of paragraph (1) to the Senate and Congress. 
House of Representatives. The Secretary may institute such bidding Resolution of 
system unless either the Senate or the House of Representatives passes disapproval, 
a resolution of disapproval within thirty days after receipt of the 
bidding system. 
"(B) Subparagraphs (C) through (J) of this paragraph are 
enacted by Congress— 
"(i) as an exercise of the rulemaking power of the Senate and 
the House of Representatives, respectively, and as such they 
are deemed a part of the rules of each House, respectively, but 
x 
they are applicable only with respect to the procedures to be fol-
lowed in that House in the case of resolutions described by this 
paragraph, and they supersede other rules only to the extent that 
they are inconsistent therewith; and 
"(ii) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner, and to the same 
extent as in the case of any other rule of that House. 
"(C) A resolution disapproving a bidding system submitted pur-
suant to this paragraph shall immediately be referred to a committee 
(and all resolutions with respect to the same request shall be referred 
to the same committee) by the President of the Senate or the Speaker 
of the House of Representatives, as the case may be. 
"(D) If the committee to which has been referred any resolution 
disapproving the bidding system of the Secretary has not reported 
the resolution at the end of ten calendar days after its referral, it shall 
be in order to move either to discharge the committee from further con-
sideration of the resolution or to discharge the committee from further 
92 STAT. 642 
PUBLIC LAW 95-372~SEPT. 18, 1978 
consideration of any other resolution with respect to the same bidding 
system which has been referred to the committee. 
"(E) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except that it may 
not be made after the committee has reported a resolution with respect 
to the same recommendation), and debate thereon shall be limited to 
not more than one hour, to be divided equally between those favoring 
and those opposing the resolution. An amendment to the motion shall 
not be in order, and it shall not be in order to move to reconsider the 
vote by which the motion is agreed to or disagreed to. 
"(F) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution with respect 
to the same bidding system. 
"(G) When the co-mmittee has reported, or has been discharged 
from further consideration of, a resolution as provided in this para-
graph, it shall be at any time thereafter in order (even though a pre-
vious motion to the same effect has been disagreed to) to move to 
proceed to the consideration of the resolution. The motion shall be 
highly privileged and shall not be debatable. An amendment to the 
motion shall not be in order, and it shall not be in order to move to 
reconsider the vote by which the motion is agreed to or disagreed to. 
"(H) Debate on the resolution is limited to not more than two 
hours, to be divided equally between those favoring and those oppos-
ing the resolution. A motion further to limit debate is not debatable. 
An amendment to, or motion to recommit, the resolution is not in 
order, and it is not in order to move to reconsider the vote by which 
the resolution is agreed to or disagreed to. 
" (I) Motions to postpone, made with respect to the discharge from 
the committee, or the consideration of a resolution with respect to a 
bidding system, and motions to proceed to the consideration of other 
business, shall be decided without debate. 
"(J) Appeals from the decisions of the Chair relating to the appli-
cation of the rules of the Senate or the House of Representatives, as 
the case may be, to the procedure relating to a resolution with respect 
to a bidding system shall be decided without debate. 
"(5) (A) During the five-year period commencing on the date of 
enactment of this subsection, the Secretary may, in order to obtain 
statistical information to determine which bidding alternatives will 
best accomplish the purposes and policies of this Act, require, as to 
no more than 10 per centum of the tracts offered each year, each 
bidder to submit bids for any area of the outer Continental Shelf in 
accordance with more than one of the bidding systems set forth in 
paragraph (1) of this subsection. For such statistical purposes, leases 
may be awarded using a bidding alternative selected at random for 
the acquisition of valid statistical data if such bidding alternative is 
otherwise consistent with the provisions of this Act. 
"(B) The bidding systems authorized by paragraph (1) of this 
subsection, other than the system authorized by subparagraph (A), 
shall be applied to not less than 20 per centum and not more than 
60 per centum of the total area offered for leasing each year during 
the five-year period beginning on the date of enactment of this sub-
section, unless the Secretary determines that the requirements set 
forth in this subparagraph are inconsistent with the purposes and 
policies of this Act. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. (343 
"(6) At least ninety days prior to notice of any lease sale under Rules, 
subparagraph (D), (E), (F), or, if appropriate, (H) of paragraph 
(1), the Secretary shall by regulation establish rules to govern the 
calculation of net profits. In me event of any dispute between the 
United States and a lessee concerning the calcula,tion of the net profits 
under the regulation issued pursuant to this paragraph, the burden of 
proof shall be on the lessee. 
"(7) After an oil and gas lease is granted pursuant to any of the 
work commitment options of paragraph (1) of this subsection— 
"(A) the lessee, at its option, shall deliver to the Secretary 
upon issuance of the lease either (i) a cash deposit for the full 
amount of the exploration work commitment, or (ii) a perform-
ance bond in form and substance and with a surety satisfactory 
to the Secretary, in the principal amount of such exploration 
work commitment assuring the Secretary that such commitment 
shall be faithfully discharged in accordance with this section, 
regulations, and the lease; and for purposes of this subparagraph, 
the principal amount of such cash deposit or bond may, in accord-
ance with regulations, be periodically reduced upon proof, satis-
factory to the Secretary, that a portion of the exploration work 
commitment has been satisfied; 
"(B) 50 per centum of all exploration expenditures on, or 
directly related to, the lease, including, but not limited to (i) geo-
logical investigations and related activities, (ii) geophysical 
investigations including seismic, geomagnetic, and gravity surveys, 
data processing and interpretation, and (iii) exploratory drilling, 
core drilling, redrilling, and well completion or abandonment, 
including the drilling of wells sufficient to determine the size and 
areal extent of any newly discovered field, and including the cost 
of mobilization and demobilization of drilling equipment, shall 
be included in satisfaction of the commitment, except that the 
lessee's general overhead cost shall not be so included against the 
work commitment, but its cost (including employee benefits) of 
employees directly assigned to such exploration work shall be so 
included; and 
"(C) if at the end of the primary term of the lease, including 
any extension thereof, the full dollar amount of the exploration 
work commitment has not been satisfied, the balance shall then be 
paid in cash to the Secretary. 
"(8) Not later than thirty days before any lease sale, the Secretary Notice, submittal 
shall submit to the Congress and publish in the Federal Register a to Congress, 
notice— 
Publication in 
" (A) identifying any bidding system which will be utilized for Federal Regisujr. 
such lease sale and the reasons for the utilization of such bidding 
system; and 
"(B) designating the lease tracts selected which are to be 
offered in such sale under the bidding system authorized by sub-
paragraph (A) of paragraph (1) and the lease tracts selected 
which are to be offered under any one or more of the bidding 
systems authorized by subparagraphs (B) through (H) of para-
graph (1), and the reasons such lease tracts are to be offered 
under a particular bidding system, 
"(9) Within six months after the end of each fiscal year, the Secre- Report to 
tary of Energy, in consultation with the Secretary of the Interior, Congress. 
92 STAT. 644 
PUBLIC LAW 95-372—SEPT. 18, 1978 
shall report to the Congress with respect to the use of various bidding 
options provided for in this subsection. Such report shall include— 
"(A) the schedule of all lease sales held during such year and 
the bidding system or systems utilized; 
"(B) the schedule of all lease sales to be held the following year 
and the bidding system or systems to be utilized; 
"(C) the benefits and costs associated with conducting lease 
sales using the various bidding systems; 
"(D) if applicable, the reasons why a particular bidding system 
has not been or will not be utilized; and 
"(E) if applicable, the reasons why more than 60 per centum 
or less than 20 per centum of the area leased in the past year, or 
to be offered for lease in the upcoming year, was or is to be leased 
under the bidding system authorized by subparagraph (A) of 
paragraph (1) of this subsection. 
"(b) An oil and gas lease issued pursuant to this section shall— 
"(1) be for a tract consisting of a compact area not exceeding 
five thousand seven hundred and sixty acres, as the Secretary may 
determine, unless the Secretary finds that a larger area is neces-
sary to comprise a reasonable economic production unit; 
" (2) be for an initial period of— 
"(A) five years; or 
"(B) not to exceed ten years where the Secretary finds that 
such longer period is necessary to encourage exploration and 
development in areas because of unusually deep water or 
other unusually adverse conditions, 
and as long after such initial period as oil or gas is produced 
from the area in paying quantities, or drilling or well reworking 
operations as approved by the Secretary are conducted thereon; 
"(3) require the payment of amount or value as determined by 
one of the bidding systems set forth in subsection (a) of this 
section; 
"(4) entitle the lessee to explore, develop, and produce the oil 
and gas contained within the lease area, conditioned upon due 
diligence requirements and the approval of the development and 
production plan required by this Act; 
"(5) provide for suspension or cancellation of the lease during 
the initial lease term or thereafter pursuant to section 5 of this 
43 use 1334. 
Act; 
"(6) contain such rental and other provisions as the Secretary 
may prescribe at the time of offering the area for lease; and 
" (7) provide a requirement that the lessee offer 20 per centum of 
the crude oil, condensate, and natural gas liquids produced on 
such lease, at the market value and point of delivery applicable to 
Federal royalty oil, to small or independent refiners as defined in 
15 use 751 note. 
the Emergency Petroleum Allocation Act of 1973.". 
(b) Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337) is further amended by striking out subsection (j), by relettering 
subsections (c) through (i), and all references thereto, as subsections 
(i) through (o), respectively, and by inserting immediately after sub-
section (b) the following new subsections: 
Review. 
"(c) (1) Following each notice of a proposed lease sale and before 
the acceptance of bids and the issuance of leases based on such bids, 
the Secretary shall allow the Attorney General, in consultation with 
the Federal Trade Commission, thirty days to review the results of 
such lease sale, except that the Attorney General, after consultation 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 645 
with the Federal Trade Commission, may agree to a shorter review 
period. 
"(2) The Attorney General may, in consultation with the Federal Antitrust review. 
Trade Commission, conduct such antitrust review on the likely eifects 
the issuance of such leases would have on competition as the Attorney 
General, after consultation with the Federal Trade Commission, deems 
appropriate and shall advise the Secretary with respect to such review. 
The Secretary shall provide such information as the Attorney General, 
after consultation with the Federal Trade Commission, may require 
in order to conduct any antitrust review pursuant to this paragraph 
and to make recommendations pursuant to paragraph (3) of this 
subsection. 
"(3) The Attorney General, after consultation with the Federal 
Trade Commission, may make such recommendations to the Secretary, 
including the nonacceptance of any bid, as may be appropriate to pre-
vent any situation inconsistent with the antitrust laws. If the Secre-
tary determines, or if the Attorney General advises the Secretary, after 
consultation with the Federal Trade Commission and prior to the is-
suance of any lease, that such lease may create or maintain a situation 
inconsistent with the antitrust laws, the Secretary may— 
"(A) refuse (i) to accept an otherwise qualified bid for such 
lease, or (ii) to issue such lease, notwithstanding subsection (a) 
of this section; or 
"(B) issue such lease, and notify the lessee and the Attorney 
General of the reason for such decision. 
" (4) (A) Nothing in this subsection shall restrict the power under 
any other Act or the common law of the Attorney General, the Federal 
Trade Commission, or any other Federal department or agency to 
secure information, conduct reviews, make recommendations, or seek 
appropriate relief. 
"(B) Neither the issuance of a lease nor anything in this subsection 
shall modify or abridge any private right of action under the anti-
trust laws. 
"(d) No bid for a lease may be submitted if the Secretary finds. Notice and 
after notice and hearing, that the bidder is not meeting due diligence hearing, 
requirements on other leases. 
"(e) No lease issued under this Act msLj be sold, exchanged, as-
signed, or otherwise transferred except with the approval of the 
Secretary. Prior to any such approval, the Secretary shall consult with 
and give due consideration to the views of the Attorney General. 
"(f) Nothing in this Act shall be deemed to convey to any person, 
association, corporation, or other business organization immunity 
from civil or criminal liability, or to create defenses to actions, under 
any antitrust law. 
• 
"(g)(1) At the time of soliciting nominations for the leasing of 
lands within three miles of the seaward boundary of any coastal State, 
the Secretary shall provide the Governor of such State— 
"(A) an identification and schedule of the areas and regions 
proposed to be offered for leasing; 
"(B) all information concerning the geographical, geological, 
and ecological characteristics of such regions; 
"(C) an estimate of the oil and gas reserves in the areas pro-
posed for leasing; and 
"(D) an identification of any field, geological structure, or trap 
located within three miles of the seaward boundary of such coastal 
State. 
92 STAT. 646 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Exemptions. 
"(2) After receipt of nominations for any area of the outer Conti-
nental Shelf within three miles of the seaward boundary of any coastal 
State, the Secretary shall inform the Governor of such coastal State of 
any such area which the Secretary believes should be given further 
consideration for leasing. The Secretary, in consultation with the Gov-
ernor of the coastal State, shall then, determine whether any such area 
may contain one or more oil or gas pools or fields underlying both the 
outer Continental Shelf and lands subject to the jurisdiction of such 
State. If, with respect to such area, the Secretary selects a tract or 
tracts which may contain one or more oil or gas pools or fields underly-
ing both the outer Continental Shelf and lands subject to the jurisdic-
tion of such State, the Secretary shall offer the Governor of such 
coastal State the opportunity to enter into an agreement concerning 
the disposition of revenues which may be generated by a Federal lease 
within such area in order to permit their fair and equitable division 
between the State and Federal Government. 
"(3) Within ninety days after the offer by the Secretary pursuant 
to paragraph (2) of this subsection, the Governor shall elect whether 
to enter into such agreement and shall notify the Secretary of his 
decision. If the Governor accepts the offer, the terms of any lease issued 
shall be consistent with the provisions of this Act, with applicable 
regulations, and, to the maximum extent practicable, with the applica-
ble laws of the coastal State. If the Governor declines the offer, or if 
the parties cannot agree to terms concerning the disposition of reve-
nues from such lease (by the time the Secretary determines to offer the 
area for lease), the Secretary may nevertheless proceed with the leas-
ing of the area. 
" (4) Notwithstanding any other provision of this Act, the Secretary 
shall deposit in a separate account in the Treasury of the United States 
all bonuses, royalities, and other revenues attributable to oil and gas 
pools underlying both the outer Continental Shelf and submerged 
lands subject to the jurisdiction of any coastal State until such time as 
the Secretary and the Governor of such coastal State agree on, or if the 
Secretary and the Governor of such coastal State cannot agree, as a 
district court of the United States determines, the fair and equitable 
disposition of such revenues and any interest which has accrued and 
the proper rate of payments to be deposited in the treasuries of the 
Federal Government and such coastal State. 
"(h) Nothing contained in this section shall be construed to alter, 
limit, or modify any claim of any State to any jurisdiction over, or any 
right, title, or interest in, any submerged lands.". 
(c) Subsection (c) of section 105 of the Energy Policy and Conser-
vation Act (42 U.S.C. 6213(c)) is amended to read as follows: 
"(c) The Secretary may, in his discretion, consider a request from 
any person described in subsection (a) of this section for an exemption 
from the prohibition of this section. In considering any such request, 
the Secretary may exempt bidding for leases for lands in any area 
only if the Secretary finds, on the record after opportunity for an 
agency hearing, that— 
"(1) such lands have extremely high cost exploration or devel-
opment problems; and 
"(2) exploration and development will not occur on such lands 
unless such exemption is granted. 
Findings of the Secretary under this subsection shall be final, and shall 
not be invalidated unless found to be arbitrary or capricious.". 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 647 
OUTER CONTINENTAL SHELF OIL AND GAS EXPLORATION 
Sec. 206. Section 11 of the Outer Continental Shelf Lands Act (43 
XJ.S.C. 1340) is amended— 
(1) by inserting " (a) (1)" immediately before "Any"; and 
(2) by adding at the end thereof the following: 
"(2) The provisions of paragraph (1) of this subsection shall not 
apply to any person conducting explorations pursuant to an approved 
exploration plan on any area under lease to such person pursuant to 
the provisions of this Act. 
"(b) Except as provided in subsection (f) of this section, beginning 
ninety days after the date of enactment of this subsection, no explora-
tion pursuant to any oil and gas lease issued or maintained under this 
Act may be undertaken by the holder of such lease, except in accord-
ance with the provisions of this section. 
" (c) (1) Except as otherwise provided in the Act, prior to commenc- Exploration plan, 
ing exploration pursuant to any oil and gas lease issued or maintained 
under this Act, the holder thereof shall submit an exploration plan to 
the Secretary for approval. Such plan may apply to more than one 
lease held by a lessee in any one region of the outer Continental Shelf, 
or by a group of lessees acting under a unitization, pooling, or drilling 
agreement, and shall be approved by the Secretary if he finds that such 
plan is consistent with the provisions of this Act, regulations pre-
scribed under this Act, including regulations prescribed by the Secre-
tary pui-suant to paragraph (8) of section 5(a) of this Act, and the 43 USC 1334. 
provisions of such lease. The Secretary shall require such modifications 
of such plan as are necessary to achieve such consistency. The Secre-
tary shall approve such plan, as submitted or imodified, within thirty 
days of its submission, except that the Secretary shall disappixxve such 
plan if he determines that (A) any proposed activity under such plan 
would result in any condition described in section 5(a)(2)(A)(i)of 
this Act, and (B) such proposed activity cannot be modified to avoid 
such condition. If the Secretary disapproves a plan under the preced-
ing sentence, he may, subject to section 5(a) (2) (B) of this Act, cancel 
such lease and the lessee shall be entitled to compensation in accordance 
with the regulations prescribed under section 5(a) (2) (C) (i) or (ii) 
of this Act. 
"(2) The Secretary shall not grant any license or permit for any 
activity described in detail in an exploration plan and affecting any 
land use or water use in the coastal zone of a State with a coastal zone 
management program approved pursuant to section 306 of the Coastal 
Zone Management Act of 1972 (16 U.S.C. 1455), unless the State 
concurs or is conclusively presumed to concur with the consistency 
certification accompanying such plan pursuant to section 307(c) 
(3) (B) (i) or (ii) of such Act, or the Secretary of Commerce makes 16 USC 1456. 
the finding authorized by section 307(c) (3) (B) (iii) of such Act. 
"(3) An exploration plan submitted under this subsection shall in- Regulations, 
elude, in the degree of detail which the Secretary may by regulation 
require— 
"(A) a schedule of anticipated exploration activities to be 
understaken; 
"(B) a description of equipment to be used for such activities; 
"(C) the general location of each well to be drilled; and 
. j 
"(D) such other information deemed pertinent by the Sec-
retary. 
92 STAT. 648 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Regulations. 
43 use 1334. 
Regulations. 
43 use 1301. 
43 use 1343. 
" (4) The Secretary may, by regulation, require that such plan be 
accompanied by a general statement of development and production 
intentions which shall be for planning purposes only and which shall 
not be binding on any party. 
" (d) The Secretary may, by regulation, require any lessee operating 
under an approved exploration plan to obtain a permit prior to drilling 
anv well in accordance with such plan. 
"(e) (1) If a si^ificant revision of an exploration plan approved 
under this subsection is submitted to the Secretary, the process to be 
used for the approval of such revision shall be the same as set forth 
in subsection (c) of this section. 
"(2) All exploration activities pursuant to any lease shall be con-
ducted in accordance with an approved exploration plan or an ap-
proved revision of such plan. 
"(f)(1) Exploration activities pursuant to any lease for which a 
drilling permit has been issued or for which an exploration plan has 
been approved, prior to ninety days after the date of enactment of 
this subsection, shall be considered in compliance with this section, 
except that the Secretary may, in accordance with section 5(a)(1)(B) 
of this Act, order a suspension or temporary prohibition of any ex-
ploration activities and require a revised exploration plan. 
"(2) The Secretary may require the holder of a lease described in 
paragraph (1) of this subsection to supply a general statement in 
accordance with subsection (c) (4) of this section, or to submit other 
information. 
"(3) Nothing in this subsection shall be construed to amend the 
terms of any permit or plan to which this subsection applies. 
"(g) Any permit for geological explorations authorized by this 
section shall be issued only if the Secretary determines, in accordance 
with regulations issued by the Secretary, that— 
" (1) the applicant for such permit is qualified; 
"(2) the exploration will not interfere with or endanger oper-
ations under any lease issued or maintained pursuant to this Act; 
and 
"(3) such exploration will not be unduly harmful to aquatic 
life in the area, result in pollution, create hazardous or unsafe 
conditions, unreasonably interfere with other uses of the area, or 
disturb any site, structure, or object of historical or archeological 
significance. 
"(h) The Secretary shall not issue a lease or permit for, or other-
wise allow, exploration, development, or production activities within 
fifteen miles of the boundaries of the Point Reyes Wilderness as 
depicted on a map entitled 'Wilderness Plan, Point Reyes National 
Seashore', numbered 612-90.000-B and dated September 1976, unless 
the State of California issues a lease or permit for, or otherwise allows, 
exploration, development, or production activities on lands beneath 
navigable waters (as such term is defined in section 2 of the Sub-
merged Lands Act) of such State which are adjacent to such 
Wilderness.". 
ANNUAL REPORT 
SEC. 207. (a) Section 15 of the Outer Continental Shelf Lands Act 
(43 XJ.S.C. 1344) is amended to read as follows: 
"SEC. 15. ANNUAL REPORT BY SECRETARY TO CONGRESS.—^Within 
six months after the end of each fiscal year, the Secretary shall submit 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. (349 
Attorney 
General, 
consultation. 
to the President of the Senate and the Speaker of the House of Eep-
resentatives the following reports: 
"(1) A report on the leasing and production program in the 
outer Continental Shelf during such fiscaJ year, which shall 
include— 
"(A) a detailed accounting of all moneys received and 
expended; 
"(B) a detailed accounting of all exploration, exploratory 
drilling, leasing, development, and production activities; 
"(C) a summary of management, supervision, and enforce-
ment activities; 
"(D) a list of all shut-in and flaring wells; and 
"(E) recommendations to the Congress (i) for improve-
ments in management, safety, and amount of production from 
leasing and operations in the outer Continental Shelf, and 
(ii) for resolution of jurisdictional conflicts or ambiguities. 
"(2) A report prepared after consultation with the Attorney 
General, with recommendations for promoting competition in 
the leasing of outer Continental Shelf lands, which shall include 
any recommendations or findings by the Attorney General and 
any plans for implementing recommended administrative changes 
and drafts of any proposed legislation, and which shall contain— 
" (A) an evaluation of tne competitive bidding systems per-
mitted under the provisions of section 8 of this Act, and, if 43 USC 1337. 
applicable, the reasons why a particular bidding system has 
not been utilized; 
"(B) an evaluation of alternative bidding systems not per-
mitted under section 8 of this Act, and why such system or 
systems should or should not be utilized; 
"(C) an evaluation of the effectiveness of restrictions on 
joint bidding in promoting competition and, if applicable, 
any suggested administrative or legislative action on joint 
bidding; 
"(D) an evaluation of present measures and a description 
of any additional measures to encourage entry of new com-
petitors; and 
"(E) an evaluation of present measures and a description 
of additional measures dealing with supplies of oil and gas to 
independent refiners and di^ributors.". 
NEW SECTIONS OF THE OUTER CONTINENTAL SHELF LANDS ACT 
SEC. 208. The Outer Continental Shelf Lands Act (43 U.S.C. 1331 
©t seq.) is amended by adding at the end thereof the following new 
sections: 
"SEC. 18. OUTER CONTINENTAL SHELF LEASING PROGRAM.—(a) The 
43 USC 1344. 
Secretary, pursuant to procedures set forth in subsections (c) and (d) 
of this section, shall prepare and periodically revise, and maintain an 
oil and gas leasing program to implement the policies of this Act^ The 
leasing program shall consist of a schedule of proposed lease sales indi-
cating, as precisely as possible, the size, timing, and location of leasing 
activity which he determines will best meet national energy needs for 
the five-year period following its approval or reapproval. Such leasing 
program shall be prepared and maintained in a manner consistent with 
the following principles: 
92 STAT. 650 
PUBLIC LAW 95-372—SEPT. 18, 1978 
"(1) Management of the outer Continental Shelf shall be 
conducted in a manner which considers economic, social, and 
environmental values of the renewable and nonrenewable resources 
contained in the outer Continental Shelf, and the potential impact 
of oil and gas exploration on other resource values of the outer 
Continental 
Shelf 
and the marine, coastal, and human 
environments. 
" (2) Timing and location of exploration, development, and pro-
duction of oil and gas among the oil- and gas-bearing physio-
graphic regions of the outer Continental Shelf shall be based on a 
consideration of— 
"(A) existing information concerning the geographical, 
geological, and ecological characteristics of such regions; 
"(B) an equitable sharing of developmental benefits and 
environmental risks among the various regions; 
"(C) the location of such regions with respect to, and the 
relative needs of, regional and national energy markets; 
"(D) the location of such regions with respect to other 
uses of the sea and seabed, including fisheries, navigation, 
existing or proposed sealanes, potential sites of deepwater 
ports, and other anticipated uses of the resources and space of 
the outer Continental Shelf; 
"(E) the interest of potential oil and gas producers in the 
development of oil and gas resources as indicated by explora-
tion or nomination; 
" (F) laws, goals, and policies of affected States which have 
been specifically identified by the Governors of such States as 
relevant matters for the Secretary's consideration; 
"(G) the relative environmental sensitivity and marine 
productivity of different areas of the outer Continental Shelf; 
and 
"(H) relevant environmental and predictive information 
for different areas of the outer Continental Shelf. 
"(3) The Secretary shall select the timing and location of leas-
ing, to the maximum extent practicable, so as to obtain a proper 
balance between the potential for environmental damage, the 
potential for the discovery of oil and gas, and the potential for 
adverse impact on the coastal zone. 
Fair market 
" (4) Leasing activities shall be conducted to assure receipt of 
value. 
fair market value for the lands leased and the rights conveyed by 
the Federal Government. 
Appropriations 
" (b) The leasing program shall include estimates of the appropria-
and staff, 
tions and staff required to— 
estimates. 
«(]^\ obtain resource information and any other information 
needed to prepare the leasing program required by this section; 
"(2) analyze and interpret the exploratory data and any other 
information which may be compiled under the authority of this 
Act; 
Environmental 
"(3) conduct environmental studies and prepare any environ-
studies and 
mental impact statement required in accordance with this Act and 
impact statement. 
^j^]^ section 102(2) (C) of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4332(2) (C)); and 
"(4) supervise operations conducted pursuant to each lease in 
the manner necessary to assure due diligence in the exploration 
and development of the lease area and compliance with the require-
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 651 
ments of applicable law and regulations, and with the terms of the 
lease. 
"(c) (1) During the preparation of any proposed leasing program 
under this section, the Secretary shall invite and consider suggestions 
for such program from any interested Federal agency, including the 
Attorney General, in consultation with the Federal Trade Commission, 
and from the Governor of any State which may become an affected 
State under such proposed program. The Secretary may also invite 
or consider any suggestions from the executive of any affected local 
government in such an affected State, which have been previously sub-
mitted to the Governor of such State, and from any other person. 
"(2) After such preparation and at least sixty days prior to publi-
cation of a proposed leasing program in the Federal Register pursuant 
to paragraph (3) of this subsection, the Secretary shall submit a copy 
of such proposed program to the Governor of each affected State for 
review and comment. The Governor may solicit conmients from those 
executives of local governments in his State which he, in his discretion, 
determinee will be affected by the proposed program. If any comment 
by such Governor is received by the Secretary at least fifteen days prior 
to submission to the Congress pursuant to such paragraph (3) and 
includes a request for any modification of such proposed program, the 
Secretary shall reply in writing, granting or denying such request in 
whole or in part, or granting such request in such modified form as the 
Secretary considers appropriate, and stating his reasons therefor. All 
such correspondence between the Secretary and the Governor of any 
affected State, together with any additional information and data relat-
ing thereto, sthall accompany such proposed program when it is sub-
mitted to the Congress. 
" (3) Within nine months after the date of enactment of this section, 
the Secretary shall submit a proposed leasing program to the Congress, 
the Attorney General, and the Governors of affected States, and shall 
publish such proposed program in the Federal Register. Each Gover-
nor shall, upon request, submit a copy of the proposed leasing program 
to the executive of any local government affected by the proposed 
program. 
"(d) (1) Within ninety days after the date of publication of a pro-
posed leasing program, the Attorney General may, after consultation 
with the Federal Trade Commission, submit comments on the antici-
pated effects of such proposed program upon competition. Any State, 
local government, or other person may submit comments and recom-
mendations as to any aspect of such proposed program. 
"(2) At least sixty days prior to approving a proposed leasing pro-
gram, the Secretary shall submit it to the President and the Congress, 
together with any comments received. Such submission shall indicate 
why any specific recommendation of the Attorney General or a State 
or local government was not accepted. 
"(3) After the leasing program has been approved by the Secre-
tary, or after eighteen months following the date of enactment of this 
section, whichever first occurs, no lease shall be issued unless it is for an 
area included in the approved leasing program and unless it contains 
provisions consistent with the approved leasing program, except that 
leasing shall be permitted to contmue until such program is approved 
and for so long thereafter as such program is under judicial or admin-
istrative review pursuant to the provisions of this Act. 
Publication in 
Federal Register. 
Leasing prograra, 
submittal to 
Congress. 
Publication in 
Federal Register. 
Leasing program, 
submittal to 
President and 
Congress. 
39-194 O—80—pt. 1 
45 : QL3 
92 STAT. 652 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Review. 
Regulations. 
Public notice. 
State and local 
governments, 
consultation. 
Infonnation, 
availability to 
Secretary. 
43 u s e 1345. 
"(e) The Secretary shall review the leasing program approved 
under this section at least once each year. He may revise and reapprove 
such program, at any time, and such revision and reapproval, except 
in the case of a revision which is not significant, shall be in the same 
manner as originally developed. 
"(f) The Secretary shall, by reflation, establish procedures for— 
"(1) receipt and consideration of nominations for any area to 
be offered for lease or to be excluded from leasing; 
"(2) public notice of and participation in development of the 
leasing program; 
"(3) review by State and local governments which may be 
impacted by the proposed leasing; 
"(4) periodic consultation with State and local governments, 
oil and gas lessees and permittees, and representatives of other 
individuals or organizations engaged in activity in or on the outer 
Continental Shelf, including those involved in fish and shellfish 
recovery, and recreational activities; and 
"(5) consideration of the coastal zone management program 
being developed or administered by an affected coastal State 
pursuant to section 305 or section 306 of the Coastal Zone Man-
agement Act of 1972 (16 U.S.C. 1454,1455). ^ ^ 
Such procedures shall be applicable to any significant revision or 
reapproval of the leasing program. 
"(g) The Secretary may obtain from public sources, or purchase 
from private sources, any survey, data, report, or other information 
(including interpretations of such data, survey, report, or other infor-
mation) which may be necessary to assist him in preparing any envi-
ronmental impact statement and in making other evaluations required 
by this Act. Data of a classified nature provided to the Secretary 
under the provisions of this subsection shall remain confidential for 
such period of time as agreed to by the head of the department or 
agency from whom the information is requested. The Secretary shall 
maintain the confidentiality of all privileged or proprietary data or 
information for such period of time as is provided for in this Act, 
established by regulation, or agreed to by the parties. 
"(h) The heads of all Federal departments and agencies shall pro-
vide the Secretary with any nonpriviledged or nonproprietary infor-
mation he requests to assist him in preparing the leasing program and 
may provide the Secretary with any privileged or proprietary infor-
mation he requests to assist him in preparing the leasing program. 
Privileged or proprietary information provided to the Secretary under 
the provisions of this subsection shall remain confidential for such 
period of time as agreed to by the head of the department or agency 
from whom the information is requested. In addition, the Secretary 
shall utilize the existing capabilities and resources of such Federal 
departments and agencies by appropriate agreement. 
"SEC. 19. COORDINATION AND CONSULTATION WITH AFFECTED STATES 
A
N
D LOCAL GOVERNMENTS.—(a) Any Governor of any affected State 
or the executive of any affected local government in such State may 
submit recommendations to the Secretary regarding the size, timing, 
or location of a proposed lease sale or with respect to a proposed 
development and production plan. Prior to submitting recommenda-
tions to the Secretary, the executive of any affected local government 
in any affected State must forward his recommendations to the Gov-
ernor of such State. 
-
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 653 
"(b) Such recommendations shall be submitted within sixty days 
after notice of such proposed lease sale or after receipt of such devel-
opment and production plan. 
" (c) The Secretary shall accept recommendations of the Governor 
and may accept recommendations of the executive of any affected 
local government if he determines, after having provided the oppor-
tunity for consultation, that they provide for a reasonable balance 
between the national interest and the well-being of the citizens 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 balanced manner and on the findings, pur-
poses, and policies of this Act. The Secretary shall communicate to the 
Governor, in writing, the reasons for his determination to accept or 
reject such Governor's recommendations, or to implement any altema- 
;>;. 
tive means identified in consultation with the Governor to provide for 
a reasonable balance between the national interest and the well-being 
of the citizens of the affected State. 
"(d) The Secretary's determination that recommendations provide, 
or do not provide, for a reasonable balance between the national 
interest and the well-being of the citizens of the affected State shall 
be final and shall not, alone, be a basis for invalidation of a proposed 
lease sale or a proposed development and production plan in any suit 
or judicial review pursuant to section 23 of this Act, unless found to Post, p. 657. 
be arbitrary or capricious. 
"(e) The Secretary is authorized to enter into cooperative agree-
ments with affected States for purposes which are consistent with this 
Act and other applicable Federal law. Such agreements may include, 
but need not be limited to, the sharing of information (in accordance 
with the provisions of section 26 of this Act), the joint utilization of Post, p. 664. 
available expertise, the facilitating of permitting procedures, joint 
planning and review, and the formation of joint surveillance and mon-
itoring arrangements to carry out applicable Federal and State laws, 
.j.ffcs>«, 
regulations, and stipulations relevant to outer Continental Shelf opera-
tions both onshore and offshore. 
"SEC. 20. ENVIRONMENTAL STUDIES.— (a) (1) The Secretary shall 43 USC 1346. 
conduct a study of any area or region included in any oil and gas lease 
sale in order to establish information needed for assessment and man-
agement of environmental impacts on the human, marine, and coastal 
environments of the outer Continental Shelf and the coastal areas 
which may be affected by oil and gas development in such area or 
region. 
"(2) Each study required by paragraph (1) of this subsection shall Effective date, 
be commenced not later than six months after the date of enactment Notice, 
of this section with respect to anv area or region where a lease sale has publication, 
been held or announced by publication of a notice of proposed lease 
sale before such date of enactment, and not later than six months prior 
to the holding of a lease sale with respect to any area or region where 
no lease sale has been held or scheduled before such date of enactment. 
The Secretary may utilize information collected in any study prior to 
such date of enactment. 
"(3) In addition to developing environmental information, any 
study of an area or region, to the extent practicable, shall be designed 
, 
to predict impacts on the marine biota which may result from chronic 
low level pollution or large spills associated with outer Continental 
Shelf production, from the introduction of drill cuttings and drilling 
92 STAT. 654 
PUBLIC LAW 95-372—SEPT. 18, 1978 
muds in the area, and from the laying of pipe to serve the offshore 
production area, and the impacts of development offshore on the 
affected and coastal areas. 
"(b) Subsequent to the leasing and developing of any area or 
region, the Secretary shall conduct such additional studies to establish 
environmental information as he deems necessary and shall monitor 
the human, marine, and coastal environments of such area or region in 
a manner designed to provide time-series and data trend information 
which can be used for comparison with any previously collected data 
for the purpose of identifying any significant changes in the quality 
and productivity of such environments, for establishing trends in the 
areas studied and monitored, and for designing experiments to iden-
tify the causes of such changes. 
Regulations. 
"(c) The Secretary shall, by regulation, establish procedures for 
carrying out his duties under this section, and shall plan and carry out 
such duties in full cooperation with affected States. To the extent that 
other Federal agencies have prepared environmental impact state-
ments, are conducting studies, or are monitoring the affected human, 
marine, or coastal environment, the Secretary may utilize the infor-
mation derived therefrom in lieu of directly conducting such activities. 
The Secretary may also utilize information obtained from any State or 
local government, or from any person, for the purposes of this section. 
For the purpose of carrying out his responsibilities under this section, 
the Secretary may by agreement utilize, with or without reimburse-
ment, the services, personnel, or facilities of any Federal, State, or 
local government agency. 
"(d) The Secretary shall consider available relevant environmental 
information in making decisions (including those relating to explora-
•' ' 
tion plans, drilling permits, and development and production plans), 
in developing appropriate regulations and lease conditions, and in 
issuing operating orders. 
"(e) As soon as practicable after the end of each fiscal year, the 
Secretary shall submit to the Congress and make available to the 
general public an assessment of the cumulative effect of activities con-
ducted under this Act on the human, marine, and coastal environments. 
"(f) In executing his responsibilities under this section, the Secre-
tary shall, to the maximum extent practicable, enter into appropriate 
arrangements to utilize on a reimbursable basis the capabilities of the 
Department of Commerce. In carrying out such arrangements, the 
Secretary of Commerce is authorized to enter into contracts or grants 
with any person, organization, or entity with funds appropriated to 
the Secretary of the Interior pursuant to this Act. 
"SEC. 21. SAFETT REGULATIONS.—(a) Upon the date of enactment 
of this section, the Secretary and the Secretary of the Department in 
which the Coast Guard is operating shall, in consultation with each 
other and, as appropriate, with the heads of other Federal departments 
and agencies, promptly commence a joint study of the adequacy of 
existing safety and health regulations and of the technology, equip-
ment, and techniques available for the exploration, development, and 
Submittal to 
production of the minerals of the outer Continental Shelf. The results 
President and 
of such study shall be submitted to the President who shall submit 
Congress. 
^ plan to the Congress of his proposals to promote safety and health 
in the exploration, development, and production of the minerals of the 
outer Continental Shelf. 
Information, 
submittal to 
Congress and 
availability to 
public. 
Contracts or 
grants. 
Study. 
43 u s e 1347. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 655 
43 use 1333. 
Studies. 
"(b) In exercising their respective responsibilities for the artificial 
islands, installations, and other devices referred to in section 4(a) (1) 
of this Act, the Secretary, and the Secretary of the Department in 
which the Coast Guard is operating, shall require, on all new drilling 
and production operations and, wherever practicable, on existing oper-
ations, the use of the best available and safest technologies which the 
Secretary determines to be economically feasible, wherever failure of 
equipment would have a significant effect on safety, health, or the 
environment, except where the Secretary determines that the incre-
mental benefits are clearly insufficient to justify the incremental costs 
of utilizing such technologies. 
"(c) The Secretary of the Department in which the Coast Guard 
is operating shall promulgate regulations or standards applying to 
unregulated hazardous working conditions related to activities on the 
outer Continental Shelf when he determines such regulations or stand-
ards are necessary. The Secretary of the Department in which the 
Coast Guard is operating may from time to time modify any regula-
tions, interim or final, dealing with hazardous working conditions on 
the outer Continental Shelf. 
"(d) Nothing in this Act shall affect the authority provided by 
law to the Secretary of Labor for the protection of occupational safety 
and health, the authority provided by law to the Administrator of 
the Environmental Protection Agency for the protection of the 
environment, or the authority provided by law to the Secretary of 
Transportation with respect to pipeline safety. 
"(e) The Secretary of Commerce, in cooperation with the Secretary 
of the Department m which the Coast Guard is operating, and the 
Director of the National Institute of Occupational Safety and 
Health, shall conduct studies of underwater diving techniques and 
equipment suitable for protection of human safety and improvement 
of diver performance. Such studies shall include, but need not be 
limited to, decompression and excursion table development and 
improvement and all aspects of diver physiological restraints and pro-
tective gear for exposure to hostile environments. 
"(f) (1) In administering the provisions of this section, the Secre-
tary shall consult and coordinate with the heads of other appropriate 
Federal departments and agencies for purposes of assuring that, to the 
maximum extent practicable, inconsistent or duplicative requirements 
are not imposed. 
"(2) The Secretary shall make available to any interested person a 
compilation of all safety and other regulations wKich are prepared and 
promulgated by any Federal department or agency and applicable to 
activities on the outer Continental Shelf. Such compilation shall be 
revised and updated annually. 
"SEC. 22. ENFORCEMENT.— (a) The Secretary, the Secretary of the 43 USC 1348. 
Department in which the Coast Guard is operating, and the Secretary 
of the Army shall enforce safety and environmental regulations pro-
mulgated pursuant to this Act. Each such Federal department may by 
agreement utilize, with or without reimbursement, the services, person- 
»' 
nel, or facilities of other Federal departments and agencies for the 
enforcement of their respective regulations. 
"(b) It shall be the duty of any holder of a lease or permit under , 
this Act to— 
"(1) maintain all places of employment within the lease area 
or within the area covered by such permit in compliance with 
i^^y.'H 
Information, 
availability to 
public. 
92 STAT. 656 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Regulations. 
Investigation and 
report. 
Review. 
Witnesses and 
other evidence. 
occupational safety and health standards and, in addition, free 
from recognized hazards to employees of the lease holder or per-
mit holder or of any contractor or subcontractor operating within 
such lease area or within the area covered by such permit on the 
outer Continental Shelf; 
"(2) maintain all operations within such lease area or within 
the area covered by such permit in compliance with regulations 
intended to protect persons, property, and the environment on the 
outer Continental Shelf; and 
"(3) allow prompt access, at the site of any operation subject 
to safety regulations, to any inspector, and to provide such docu-
ments and records which are pertinent to occupational or public 
health, safety, or environmental protection, as may be requested. 
"(c) The Secretary and the Secretarjr of the Department in which 
the Coast Guard is operating shall individually, or jointly if they so 
agree, promulgate regulations to provide for— 
"(1) scheduled onsite inspection, at least once a year, of each 
facility on the outer Continental Shelf which is subject to any 
environmental or safety regulation promulgated pursuant to this 
Act, which inspection shall include all safety equipment designed 
to prevent or ameliorate blowouts, fires, spillages, or other major 
accidents; and 
"(2) periodic onsite inspection without advance notice to the 
operator of such facility to assure compliance with such environ-
mental or safety regulations. 
"(d) (1) The Secretary or the Secretary of the Department in which 
the Coast Guard is operating shall make an investigation and public 
report on each major fire and each major oil spillage occurring as a 
result of operations conducted pursuant to this Act, and may, in his 
discretion, make an investigation and report of lesser oil spillages. For 
purposes of this subsection, a major oil spillage is any spillage in one 
instance of more than two hundred barrels of oil during a period of 
thirty days. All holders of leases or permits issued or maintained 
under this Act shall cooperate with the appropriate Secretary in the 
course of any such investigation. 
"(2) The Secretary or the Secretary of the Department in which 
the Coast Guard is operating shall make an investigation and public 
report on any death or serious injury occurring as a result of opera-
tions conducted pursuant to this Act, and may, in his discretion, make 
an investigation and report of any injury. For purposes of this subsec-
tion, a serious injury is one resulting in substantial impairment of any 
bodily unit or function. All holders of leases or permits issued or main-
tained under this Act shall cooperate with the appropriate Secretary 
in the course of any such investigation. 
"(e) The Secretary, or, in the case of occupational safety and 
healthj the Secretary of the Department in which the Coast Guard is 
operating, may review any allegation from any person of the existence 
of a violation of a safety regulation issued under this Act. 
"(f) In any investigation conducted pursuant to this section, the 
Secretary or the Secretary of the Department in which the Coast 
Guard is operating shall have power to summon witnesses and to 
require the production of books, papers, documents, and any other evi-
dence. Attendance of witnesses or the production of books, papers, 
documents, or any other evidence shall be compelled by a similar proc-
ess, as in the district courts of the United States. Such Secretary, or his 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 657 
designee, shall administer all necessary oaths to any witnesses sum-
moned before such investigation. 
" (g) The Secretary shall, after consultation with the Secretary of Report to 
the Department in which the Coast Guard, is operating, include in his Congress, 
annual report to the Congress required by section 15 of this 43 USC1343. 
Act the number of violations of safety regulations reported or alleged, 
any investigations undertaken, the results of such investigations, and 
any administrative or judicial action taken as a result of such investi-
gations, and the results of the diving studies conducted under section 
21 (e) of this Act. 
^«^' P- 654. 
SEC. 
23. 
CITIZEN SUITS, COURT JURISDICTION, AND JUDICIAL 43 USC 1349. 
KEVIBW.—(a) (1) Except as provided in this section, any person hav-
ing a valid legal interest which is or may be adversely affected may 
commence a civil action on his own behalf to compel compliance with 
this Act against any person, including the United States, and any 
other government instrumentality or agency (to the extent permitted 
by the eleventh amendment to the Constitution) for any alleged vio- USC prec. 
title 
1. 
lation of any provision of this Act or any regulation promulgated 
under this Act, or of the terms of any permit or lease issued by the 
Secretary under this Act. 
"(2) Except as provided in paragraph (3) of this subsection, no 
action may be commenced under subsection (a) (1) of this section— 
"(A) prior to sixty days after the plaintiff has given notice 
of the alleged violation, in writing under oath, to the Secretary 
and any other appropirate Federal oiRcial, to the State in which 
the violation allegedly occurred or is occurring, and to any alleged 
violator; or 
"(B) if the Attorney General has commenced and is diligently 
prosecuting a civil action in a court of the United States or a State 
with respect to such matter, but in any such action in a court of 
the United States any person having a legal interest which is 
or may be adversely affected may intervene as a matter of right. 
"(3) An action may be brought under this subsection immediately 
after notification of the alleged violation in any case in which the 
alleged violation constitutes an imminent threat to the public health or 
safety or would immediately affect a legal interest of the plaintiff. 
" (4) In any action commenced pursuant to this section, the Attorney 
General, upon the request of the Secretary or any other appropirate 
Federal official, may intervene as a matter of right. 
"(5) A court, in issuing any final order in any action brought pur-
suant to subsection (a)(1) or subsection (c) of this section, may award 
costs of litigation, including reasonable attorney and expert witness 
fees, to any party, whenever such court determines such award is appro-
priate. The court may, if a temporary restraining order or prelimi-
nary injunction is sought, require the filing of a bond or equivalent 
security in a sufficient amount to compensate for any loss or damage 
suffered, in accordance with the Federal Rules of Civil Procedure. 
"(6) Except as provided in subsection (c) of this section, all suits 
challenging actions or decisions allegedly in violation of, or seeking 
enforcement of, the provisions of this Act, or any regulation promul-
gated under this Act, or the terms of any permit or lease issued by the 
Secretary under this Act, shall be undertaken in accordance with the 
procedures described in this subsection. Nothing in this section shall 
restrict any right which any person or class of persons may have under 
any other Act or common law to seek appropriate relief. 
"(b) (1) Except as provided in subsection (c) of this section, the 
district courts of the United States shall have jurisdiction of cases and 
92 STAT. 658 
PUBLIC LAW 95-372—SEPT. 18, 1978 
controversies arising out of, or in connection with (A) any operation 
conducted on the outer Continental Shelf which involves exploration, 
development, or production of the minerals, of the subsoil and seabed 
of the outer Continental Shelf, or which involves rights to such min-
erals, or (B) the cancellation, suspension, or termination of a lease or 
permit under this Act. Proceedings with respect to any such case or 
controversy may be instituted in the judicial district in which any 
defendant resides or may be found, or in the judicial district of the 
State nearest the place the cause of action arose. 
" (2) Any resident of the United States who is injured in any manner 
through the failure of any operator to comply with any rule, regula-
tion, order, or permit issued pursuant to this Act may bring an action 
for damages (including reasonable attorney and expert witness fees) 
only in the judicial district having jurisdiction under paragraph (1) 
of this subsection. 
"(c) (1) Any action of the Secretary to approve a leasing program 
Ante, p. 649. 
pursuant to section 18 of this Act shall be subject to judicial review 
only in the United States Court of Appeal for the District of 
Columbia. 
"(2) Any action of the Secretary to approve, require modification 
of, or disapprove any exploration plan or any development and pro-
duction plan under this Act shall be subject to judicial review only in 
a United States court of appeals for a circuit in which an affected State 
is located. 
"(3) The judicial review specified in paragraphs (1) and (2) of 
this subsection shall be available only to a person who (A) partici-
pated in the administrative proceedings related to the actions specified 
in such paragraphs, (B) is adversely affected or aggrieved by such 
action, (C) files a petition for review of the Secretary's action within 
sixty days after the date of such action, and (D) promptly transmits 
copies of the petition to the Secretary and to the Attorney General. 
"(4) Any action of the Secretary specified in paragraph (1) or (2) 
shall only be subject to review pursuant to the provisions of this sub-
section, and shall be specifically excluded from citizen suits which are 
permitted pursuant to subsection (a) of this section. 
"(5) The Secretary shall file in the appropriate court the record 
of any public hearings required by this Act and any additional infor-
mation upon which the Secretary based his decision, as required by sec-
tion 2112 of title 28, United States Code. Specific objections to the 
action of the Secretary shall be considered by the court only if the 
issues upon which such objections are based have been submitted to the 
Secretary during the administrative proceedings related to the actions 
involved. 
" (6) The court of appeals conducting a proceeding pursuant to this 
subsection shall consider the matter under review solely on the record 
made before the Secretary. The findings of the Secretary, if supported 
by substantial evidence on the record considered as a whole, shall be 
conclusive. The court may afiirm, vacate, or modify any order or deci-
sion or may remand the proceedings to the Secretary for such further 
action as it may direct. 
"(7) Upon the filing of the record with the court, pursuant to para-
graph (5), the jurisdiction of the court shall be exclusive and its judg-
ment shall be final, except that such judgment shall be subject to 
review by the Supreme Court of the United States upon writ of 
certiorari. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
93 STAT. 659 
"(d) Except as to causes of action which the court considers of 
greater importance, any action under this section shall take precedence 
on the docket over all other causes of action and shall be set for hearing 
at the earliest practical date and expedited in every way. 
"SEC. 24. REMEDIES AND PENALTIES.— (a) At the request of the 
43 USC 1350. 
Secretary, the Secretary of the Army, or the Secretary of the Depart-
ment in which the Coast Guard is operating, the Attorney General 
or a United States attorney shall institute a civil action in the district 
court of the United States for the district in which the affected opera-
tion is located for a temporary restraining order, injunction, or other 
appropriate remedy to enforce any provision of this Act, any i-egulr-
tion or order issued under this Act, or any term of a lease, licenpo, or 
permit issued pursuant to this Act. 
"(b) If any person 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, after notice of such 
failure and expiration of any reasonable period allowed for cori'ective 
action, such pei-son shall be liable for a civil j^enalty of not more than 
$10,000 for each day of the continuance of such failure. The Secretary 
may assess, collect, and compromise any such penalty. No penalty shall 
Hearing, 
be assessed until the person charged with a violation has been given an 
opportunity for a hearing. 
"(c) Any person who knowingly and willfully (1) violates any pro-
vision of this Act, any term of a lease, license, or permit issued pursuant 
to this Act, or any regulation or order issued under the authority of this 
Act designed to protect health, safety, or the environment or conserve 
natural resources, (2) makes any false statement, representation, or 
certification in any application, record, report, or other document filed 
or required to be maintained under this Act, (3) falsifies, tampers with, 
or renders inaccurate any monitoring device or method of record 
required to be maintained under this Act, or (4) reveals any data or 
information required to be kept confidential by this Act shall, upon 
conviction, be punished by a fine of not more than $100,000, or by 
imprisonment for not more than ten years, or both. Each day that a 
violation under clause (1) of this subsection continues, or each day 
that any monitoring device or data recorder remains inoperative or 
inaccurate because of any activity described in clause (3) of this sub-
section, shall constitute a separate violation. 
"(d) Whenever a corporation or other entity is subject to prosecu-
tion under subsection (c) of this section, any officer or agent of such 
corporation or entity who knowingly and willfully authorized, ordered, 
or carried out the proscribed activity shall be subject to the same fines 
or imprisonment, or both, as provided for under subsection (c) of this 
section. 
" (e) The remedies and penalties prescribed in this Act shall be con-
current and cumulative and the exercise of one shall not preclude the 
exercise of the others. Further, the remedies and penalties prescribed in 
this Act shall be in addition to any other remedies and penalties 
afforded by any other law or regulation. 
"SEC. 25. O I L AND GAS DEVELOPMENT AND PRODUCTION.—(a)(1) 
Plan, submittal to 
Prior to development and production pursuant to an oil and gas lease 
Secretary, 
issued after the date of enactment of this section in any area of the outer 
43 USC 1351. 
Continental Shelf, other than the Gulf of Mexico, or issued or main-
tained prior to such date of enactment in any area of the outer Con-
tinental Shelf, other than the Gulf of Mexico, with respect to which no 
92 STAT. 660 
PUBLIC LAW 95-372—SEPT. 18, 1978 
oil or gas has been discovered in paying quantities prior to such date of 
enactment, the lessee shall submit a development and production plan 
(hereinafter in this section referred to as a 'plan') to the Secretary, for 
approval pursuant to this section, 
" (2) A plan shall be accompanied by a statement describing all 
facilities and operations, other than those on the outer Continental 
Shelf, proposed by the lessee and known by him (whether or not owned 
or operated by such lessee) which will be constructed or utilized in the 
development and production of oil or gas from the lease area, including 
the location and site of such facilities and operations, the land, labor, 
material, and energy requirements associated with such facilities and 
operations, and all environmental and safety safeguards to be imple-
mented. 
Plan, availability 
"(3) Except for any privileged or proprietary information (as such 
to public. 
term is defined in regulations issued by the Secretary), the Secretary, 
within ten days after receipt of a plan and statement, shall (A) submit 
such plan and statement to the Governor of any affected State, and, 
upon i-equest, to the executive of any affected local government, and 
(B) make such plan and statement available to any appropriate inter-
state regional entity and the public. 
" (b) After the date of enactment of this section, no oil and gas lease 
may be issued pursuant to this Act in any region of the outer Conti-
nental Shelf, other than the Gulf of Mexico, unless such lease requires 
that development and production activities be carried out in accord-
ance with a plan which complies with the requirements of this section. 
" (c) A plan may apply to more than one oil and gas lease, and shall 
set forth, in the degree of detail established by regulations issued by 
the Secretary— 
" (1) the specific work to be performed; 
" (2) a description of all facilities and operations located on the 
outer Continental Shelf which are proposed by the lessee or known 
by him (whether or not owned or operated by such lessee) to be 
directly related to the proposed development, including the loca-
tion and size of such facilities and operations, and the land, labor, 
material, and energy requirements associated with such facilities 
and operations; 
"(3) the environmental safeguards to be implemented on the 
outer Continental Shelf and how such safeguards are to be imple-
mented ; 
" (4) all safety standards to be met and how such standards are 
to be met; 
"(5) an expected rate of development and production and a 
time schedule for performance; and 
"(6) such other relevant information as the Secretary may by 
regulation require. 
"(d) The Secretary shall not grant any license or permit for any 
activity described in detail in a plan and affecting any land use or 
water use in the coastal zone of a State with a coastal zone management 
program approved pursuant to section 306 of the Coastal Zone Manage-
ment Act of 1972 (16 U.S.C. 1455), unless the State concurs or is con-
clusively presumed to concur with the consistency certification accom-
panying such plan pursuant to section 307(c) (3)(B) (i) or (ii) of 
16 use 1456. 
such Act, or the Secretary of Commerce makes the finding authorized 
by section 307(c) (3) (B) (iii) of such Act. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 661 
"(e) (1) At least once the Secretary shall declare the approval of a 
development and production plan in any area or region (as defined by 
the Secretary) of the outer Continental Shelf, other than the Gulf of 
Mexico, to be a major Federal action. 
" (2) The Secretary may require lessees of tracts for which develop-
ment and production plans have not been approved, to submit pre-
liminary or final plans for their leases, prior to or immediately after 
a determination by the Secretary that the procedures under the 
National Environmental Policy Act of 1969 sihall commence. 
"(f) If approval of a development and production plan is found 
to be a major Federal action, the Secretary shall transmit the draft 
environmental impact statement to the Governor of any affected State, 
and upon request, to the executive of any local government, and shall 
make such draft available to any appropriate interstate regional 
entity and the public. 
" (g) If approval of a development and production plan is not found 
to be a major Federal action, the Governor of any affected State and 
the executive of any affected local government shall have sixty days 
from the date of receipt of the plan from the Secretary to submit com-
ments and recommendations. Prior to submitting recommendations to 
the Secretary, the executive of any affected local government must for-
ward his recommendations to the Governor of his State. Such com-
ments and recommendations shall be made available to the public upon 
request. In addition, any interested person may submit comments and 
recommendations. 
"(h)(1) After reviewing the record of any public hearing held 
with respect to the approval of a plan pursuant to the National Envi-
ronmental Policy Act of 1969 or the comments and recommendations 
submitted under subsection (g) of this section, the Secretary shall, 
within sixty days after the release of the final environmental impact 
statement prepared pursuant to the National Environmental Policy 
Act of 1969 in accordance with subsection (e) of this section, or sixty 
days after the period provided for comment under subsection (g) of 
this section, approve, disapprove, or require modifications of the plan. 
The Secretary shall require modification of a plan if he determines that 
the lessee has failed to make adequate provision in such plan for safe 
operations on the lease area or for protection of the human, marine, or 
coastal environment, including compliance with the regulations pre-
scribed by the Secretary pursuant to paragraph (8) of section 5(a) of 
this Act. Any modification required by the Secretary which involves 
activities for which a Federal license or permit is required and which 
affects any land use or water use in the coastal zone of a State with a 
coastal zone management program approved pursuant to section 306 of 
the Coastal Zone Management Act of 1972 (16 U.S.C. 1455) must re-
ceive concurrence by such State with respect to the consistency certifi-
cation accompanying such plan pursuant to section 307(c) (3) (B) (i) 
or (ii) of such Act unless the Secretary of Commerce makes the finding 
authorized by section 307(c) (3) (B) (iii) of such Act. The Secretary 
shall disapprove a plan— 
" (A) if the lessee fails to demonstrate that he can comply with 
the recjuirements of this Act or other applicable Federal law, 
including the regulations prescribed by the Secretary pursuant to 
paragraph (8) of section 5(a) of this Act; 
"(B) if any of the activities described in detail in the plan for 
which a Federal license or permit is required and which affects 
42 use 4321 
note. 
Environmental 
impact statement 
draft, availability 
to public. 
Public hearing. 
42 use 4321 
note. 
'jc •-
16 use 1456. 
Disapproval of 
plan. 
92 STAT. 662 
PUBLIC LAW 95-372—SEPT. 18, 1978 
any land use or water use in the coastal zone of a State with a 
coastal zone management program approved pursuant to section 
306 of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1455] do not receive concurrence by such State with respect to the 
consistency certification accompanying such plan pursuant to sec-
16 use 1456. 
tion 307(c) (3) (B) (i) or (ii) of such Act and the Secretary of 
Commerce does not make the finding authorized by section 307(c) 
(3)(B)(iii) ofsuchAct; 
"(C) if operations threaten national security or national 
defense; or 
"(D) if the Secretary determines, because of exceptional geo-
logical conditions in the lease areas, exceptional resource values 
in the marine or coastal environment, or other exceptional circum-
stances, that (i) implementation of the plan would probably 
cause serious harm or damage to life (including fish and other 
aquatic life), to property, to any mineral deposits (in areas leased 
or not leased), to the national security or defense, or to the marine, 
coastal or human environments, (ii) the threat of harm or dam-
age will not disappear or decrease to an acceptable extent within a 
reasonable period of time, and (iii) the advantages of disap-
proving the plan outweigh the advantages of development and 
production. 
" (2) (A) If a plan is disapproved— 
"(i) under subparagraph (A) of paragraph (1); or 
"(ii) under suoparagraph (B) of paragraph (1) with respect 
y 
to a lease issued after approval of a coastal zone management pro-
gram pursuant to the Coastal Zone Management Act of 1972 (16 
U.aC. 1455), 
the lessee shall not be entitled to compensation because of such dis-
approval. 
"(B) If a plan is disapproved— 
"(i) under subparagraph (C) or (D) of paragraph (1); or 
"(ii) under subparagraph (B) of paragraph (1) with respect 
to a lease issued before approval of a coastal zone management 
16 use 1451 
program pursuant to the Coastal Zone Management Act of 1972, 
note. 
and such approval occurs after the lessee has submitted a plan to 
the Secretary, 
the term of the lease shall be duly extended, and at any time within 
five years after such disapproval, the lessee may reapply for approval 
of the same or a modified plan, and the Secretary shall approve, dis-
approve, or require modifications of such plan in accordance witli this 
subsection. 
4 
"(C) Upon expiration of the five-year period described in subpara-
graph (B) of this paragraph, or, in the Secretary's discretion, at an 
earlier time upon request of a lessee, if the Secretary has not approved 
a plan, the Secretary shall cancel the lease and the lessee shall be 
entitled to receive compensation in accordance with section 5(a) (2) 
43 use 1334. 
(C) of this Act. The Secretary may, at any time within the five-year 
period described in subparagraph (B) of this paragraph, require the 
lessee to submit a development and production plan for approval, dis-
approval, or modification. If the lessee fails to submit a required plan 
expeditiously and in ^ood faith, the Secretary shall find that the lessee 
has not been duly diligent in pursuing his obligations under the lease, 
and shall immediately initiate procedures to cancel such lease, without 
compensation, under the provisions of section 5(c) of this Act. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 663 
"(3) The Secretary shall, from time to time, review each plan Review, 
approved under this section. Such review shall be based upon changes 
in available information and other onshore or offshore conditions 
affecting or impacted by development and production pursuant to such 
plan. If the review indicates that the plan should be revised to meet the 
requirements of this subsection, the Secretary shall require such 
revision. 
"(i) The Secretary may approve any revision of an approved plan 
proposed by the lessee if he determines that such revision will lead to 
greater recovery of oil and natural gas, improve the efficiency, safety, 
and environmental protection of the recovery operation, is the only 
means available to avoid substantial economic hardship to the lessee, 
or is otherwise not inconsistent with the provisions of this Act, to the 
extent such revision is consistent with protection of the human, ma-
rine, and coastal environments. Any revision of an approved plan 
which the Secretary determines is significant shall be reviewed in 
accordance with subsections (d) through (f) of this section. 
"(j) Whenever the owner of any lease fails to submit a plan in 
accordance with regulations issued under this section, or fails to com-
ply with an approved plan, the lease may be canceled in accordance 
with sections 5 (c) and (d). Termination of a lease because of failure 
to comply with an approved plan, including required modifications 
or revisions, shall not entitle a lessee to any compensation. 
" (k) If any development and production plan submitted to the Sec-
retary pursuant to this section provides for the production and trans-
portation of natural gas, the lessee shall contemporaneously submit to 
the Federal Energy Regulatory Commission that portion of such plan 
which relates to production of natural gas and the facilities for trans-
portation of natural gas. The Secretary and the Federal Energy Regu-
latory Commission shall agree as to which of them shall prepare an 
environmental impact statement pursuant to the National Environ-
mental Policy Act of 1969 applicable to such portion of such plan, or 
conduct studies as to the effect on the environment of implementing it. 
Thereafter, the findings and recommendations by the agency prepar-
ing such environmental impact statement or conducting such studies 
pursuant to such agreement shall be adopted by the other agency, and 
such other agency shall not independently prepare another environ-
mental impact statement or duplicate such studies with respect to such 
portion of such plan, but the Federal Energy Regulatory Commission, 
m connection with its review of an application for a certificate of 
r 
public convenience and necessity applicable to such transportation 
facilities pursuant to section 7 of the Natural Gas Act (15 U.S.C. 717), 
may prepare such environmental studies or statement relevant to cer-
tification of such transportation facilities as have not been covered 
by an environmental impact statement or studies prepared by the 
Secretary. The Secretary, in consultation with the Federal Energy Rules. 
Regulatory Commission, shall promulgate rules to implement this 
subsection, but the Federal Energy Regulatory Commission shall 
retain sole authority with respect to rules and procedures applicable 
to the filing of any application with the Commission and to all aspects 
of the Commission's review of, and action on, any such application. 
"(1) The Secretary may require the provisions of this section to 
apply to an oil and gas lease issued or maintained under this Act, 
which is located in that area of the Gulf of Mexico which is adjacent 
43 use 1334. 
Plan, transmittiU 
to Federal Energy 
Regulatory 
Commission. 
42 u s e 4321 
note. 
92 STAT. 664 
PUBLIC LAW 95-372—SEPT. 18, 1978 
to the State of Florida, as determined pursuant to section 4(a) (2) of 
43 use 1333. 
this Act. 
43 use 1352. 
"SEC. 26. OUTER CONTINENTAL SHELF OIL AND GAS INFORMATION 
PROGRAM.—(a) (1) (A) Any lessee or permittee conducting any explo-
ration for, or development or production of, oil or gas pursuant to 
this Act shall provide the Secretary access to all data and information 
(including processed, analyzed, and interpreted information) obtained 
from such activity and shall provide copies of such data and informa-
Regulations. 
tion as the Secretary may request. Such data and information shall be 
provided in accordance with regulations which the Secretary shall 
prescribe. 
"(B) If an interpretation provided pursuant to subparagraph (A) 
of this paragraph is made in good faith by the lessee or permittee, 
such lessee or permittee shall not be held responsible for any conse-
quence of the use of or reliance upon such interpretation. 
"(C) Whenever any data and information is provided to the Secre-
tary, pursuant to subparagraph (A) of this paragraph— 
"(i) by a lessee, in the form and manner of processing which is 
utilized by such lessee in the normal conduct of his business, the 
Secretary shall pay the reasonable cost of reproducing such data 
and information; 
"(ii) by a lessee, in such other form and manner of processing 
as the Secretary may request, the Secretary shall pay the reason-
able cost of processing and reproducing such data and informa-
tion; 
"(iii) by a permittee, in the form and manner of processing 
which is utilized by such permittee in the normal conduct of his 
business, the Secretary shall pay such permittee the reasonable 
cost of reproducing such data and information for the Secretary 
and shall pay at the lowest rate available to any purchaser for 
processing such data and information the costs attributable to such 
> • • 
processing; and 
"(iv) by a permittee, in such other form and manner of proc-
essing as the Secretary may request, the Secretary shall pay such 
permittee the reasonable cost of processing and reproducing such 
data and information for the Secretary, 
pursuant to such regulations as he may prescribe. 
"(2) Each Federal department and agency shall provide the Sec-
retary with any data obtained by such Federal department or agency 
43 use 1340. 
pursuant to section 11 of this Act, and any other information which 
may be necessary or useful to assist him in carrying out the provisions 
of this Act. 
"(b)(1) Data and information provided to the Secretary pursuant 
to subsection (a) of this section shall be processed, analyzed, and inter-
preted by the Secretary for purposes of carrying out his duties under 
this Act. 
Data, submittal to 
" (2) As soon as practicable after information provided to the Sec-
State and local 
retary pursuant to subsection (a) of this section is processed, analyzed, 
governments. 
and interpreted, the Secretary shall make available to the affected 
States, and upon request, to any affected local government, a summary 
of data designed to assist them in planning for the onshore impacts of 
possible oil and gas development and production. Such summary shall 
include estimates of (A) the oil and gas reserves in areas leased or to 
be leased, (B) the size and timing of development if and when oil or 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 665 
Privileged 
information, 
transmittal to 
affected State. 
gas, or both, is found, (C) the location of pipelines, and (D) the 
general location and nature of onshore facilities. 
"(c) The Secretary shall prescribe regulations to (1) assure that Regulations 
the confidentiality of privileged or proprietary information received 
by the Secretary under this section will be maintained, and (2) set 
forth the time periods and conditions which shall be applicable to the 
release of such information. Such regulations shall include a provision 
that no such information will be transmitted to any affected State 
unless the lessee, or the permittee and all persons to whom such per-
mittee has sold such information under promise of confidentiality, 
agree to such transmittal. 
"(d) (1) The Secretary shall transmit to any affected State— 
"(A) an index, and upon request copies of, all relevant actual 
or proposed programs, plans, reports, environmental impact state-
ments, tract nominations (including negative nominations) and 
other lease sale information, any similar type of relevant informa-
tion, and all modifications and revisions thereof and comments 
thereon, prepared or obtained by the Secretary pursuant to this 
Act, but no information transmitted by the Secretary under this 
subsection shall identify any particular tract with the name or 
names of any particular party so as not to compromise the com-
petitive position of any party or parties participating in the 
nominations ; 
"(B) (i) the summary of data prepared by the Secretary pur-
suant to subsection (b) (2) of this section, and (ii) any other 
processed, analyzed, or interpreted data prepared by the Secre-
tary pursuant to subsection (b) (1) of this section, unless the Sec-
retary determines that transmittal of such data prepared pursuant 
to such subsection (b) (1) would unduly damage the competitive 
position of the lessee or permittee who provided the Secretary 
with the information which the Secretary had processed, ana-
lyzed, or interpreted; and 
"(C) any relevant information received by the Secretary pur-
suant to subsection (a) of this section, subject to any applicable 
requirements as to confidentiality which are set forth in regula-
tions prescribed under subsection (c) of this section. 
"(2) Notwithstanding the provisions of any regulation required 
pursuant to the second sentence of subsection (c) of this section, the 
Governor of any affected State may designate an appropriate State 
official to inspect, at a regional location which the Secretary shall des-
ignate, any privileged information received by the Secretary regard-
ing any activity adjacent to such State, except that no such inspection 
shall take place prior to the sale of a lease covering the area in which 
such activity was conducted. Knowledge obtained by such State dur-
ing such inspection shall be subject to applicable requirements as to 
confidentiality which are set forth in regulations prescribed under sub-
section (c) of this section. 
"(e) Prior to transmitting any privileged information to any State, 
or granting such State access to such information, the Secretary shall 
enter into a written agreement with the Governor of such State in 
which such State agrees, as a condition precedent to receiving or being 
granted access to such information, to waive the defenses set forth in 
subsection (f) (2) of this section, and to hold the United States harm-
less from any violations of the regulations prescribed pursuant to sub-
section (c) that the State or its employees may commit. 
92 STAT. 666 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Civil action. 
"(f) (1) Whenever any employee of the Federal Government or of 
any State reveals information in violation of the regulations pre-
scribed pursuant to subsection (c) of this section, the lessee or per-
mittee who supplied such information to the Secretary or to any other 
Federal official, and any person to whom such lessee or permittee has 
sold such information under promise of confidentiality, may commence 
a civil action for damages in the appropriate district court of the 
United States against the Federal Government or such State, as the 
case may be. 
"(2) In any action commenced against the Federal Government or 
a State pursuant to paragraph (1) of this subsection, the Federal Gov-
ernment or such State, as the case may be, may not raise as a defense 
(A) any claim of sovereign immunity, or (B) any claim that the 
employee who revealed the privileged information which is the basis of 
such suit was acting outside the scope of his employment in revealing 
such information. 
"(g) Any provision of State or local law which provides for public 
access to any privileged information received or obtained by any per-
son pursuant to this Act is expressly preempted by the provisions of 
this section, to the extent that it applies to such information. 
"(h) If the Secretary finds that any State cannot or does not comply 
with the regulations issued under subsection (c) of this section, he 
shall thereafter withhold transmittal and deny inspection of privi-
leged information to such State until he finds that such State can and 
will comply with such regulations. 
43 use 1353. 
"SEC. 27. FEDERAL PURCHASE AND DISPOSITION or OIL AND GAS.— 
(a) (1) Except as may be necessary to comply with the provisions of 
43 use 1335, 
sections 6 and 7 of this Act, all royalties or net profit shares, or both, 
1336. 
accruing to the United States under any oil and gas lease issued or 
maintained in accordance with this Act, shall, on demand of the Secre-
tary, be paid in oil or gas. 
"(2) The United States shall have the right to purchase not to 
exceed 16% per centum by volume of the oil and gas produced pur-
suant to a lease issued or maintained in accordance with this Act, at 
the regulated price, or, if no regulated price applies, at the fair market 
value at the well head of the oil and gas saved, removed, or sold, ex-
cept that any oil or gas obtained by the United States as royalty or 
net profit share shall be credited against the amount that may be 
purchased under this subsection. 
"(3) Title to any royalty, net profit share, or purchased oil or gas 
may be transferred, upon request, by the Secretary to the Secretary 
of Defense, to the Administrator of the General Services Administra-
tion, or to the Secretary of Energy, for disposal within the Federal 
Government. 
"(b) (1) The Secretary, except as provided in this subsection, may 
offer to the public and sell by competitive bidding for not more than 
its regulated price, or, if no regulated price applies, not less than its 
fair market value, any part of the oil (A) obtained by the United 
States pursuant to any lease as royalty or net profit share, or (B) 
purchased by the United States pursuant to subsection (a) (2) of this 
section. 
Allocation or 
"(2) Whenever, after consultation with the Secretary of Energy, 
lottery sale. 
the Secretary determines that small refiners do not have access to ade-
quate supplies of oil at equitable prices, the Secretary may dispose 
of any oil which is taken as a royalty or net profit share accruing or 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 667 
reserved to the United States pursuant to any lease issued or main-
tained under this Act, or purchased by the United States pursuant to 
subsection (a) (2) of this section, by conducting a lottery for the sale 
of such oil, or may equitably allocate such oil among the competitors 
for the purchase of such oil, at the regulated price, or if no regiilated 
price applies, at its fair market value. The Secretary shall limit par-
ticipation in any allocation or lottery sale to assure such access and 
shall publish notice of such allocation or sale, and the terms thereof, at 
least thirty days in advance. Such notice shall include qualifications for 
participation, the amount of oil to be sold, and any limitation in the 
amount of oil which any participant may be entitled to purchase. 
"(3) The Secretary may only sell or otherwise dispose of oil 
described in paragraph (1) of this subsection in accordance with any 
provision of law, or regulations issued in accordance with such provi-
sions, which provide for the Secretary of Energy to allocate, transfer, 
exchange, or sell oil in amounts or at prices determined by such pro-
vision of law or regulations. 
"(c)(1) Except as provided in paragraph (2) of this subsection, 
the Secretary, pursuant to such terms as he determines, many offer to 
the public and sell by competitive bidding for not more than its regu-
lated price, or, if no regulated price applies, not less than its fair 
market value any part of the gas (A) obtained by the United States 
pursuant to a lease as royalty or net profit share, or (B) purchased by 
the United States pursuant to subsection (a) (2) of this section. 
"(2) Whenever, after consultation with and advice from the Sec-
retary of Energy, the Federal Energy Regulatory Commission deter-
mines that an emergency shortage of natural gas is threatening to 
cause severe economic or social dislocation in any region of the United 
States and that such region can be serviced in a practical, feasible, and 
efficient manner by royalty, net profit share, or purchased gas obtained 
pursuant to the provisions of this section, the Secretary of the Interior 
may allocate or conduct a lottery for the sale of such gas, and shall 
limit participation in any allocation or lottery sale of such gas to 
any person servicing such region, but he shall not sell any such gas for 
more than its regulated price, or, if no regulated price applies, less 
than its fair market value. Prior to selling or allocating any gas pur-
suant to this subsection, the Secretary shall consult with the Federal 
Energy Regulatory Commission. 
"(d) The lessee shall take any Federal oil or gas for which no 
acceptable bids are received, as determined bv the Secretary, and which 
is not transferred pursuant to subsection (a) (3) of this section, and 
shall pay to the United States a cash amount equal to the regulated 
price, or, if no regulated price applies, the fair market value of the oil 
or gas so obtained. 
" (e) As used in this section— 
"(1) the term 'regulated price' means the highest price— 
"(A) at which oil many be sold pursuant to the Emer-
gency Petroleum Allocation Act of 1973 and any rule or order 
issued under such Act; 
" (B). at which natural gas may be sold to natural-gas com-
panies pursuant to the Natural Gas Act, any other Act, reg-
ulations governing natural gas pricing, or any rule or order 
issued under any such Act or any such regulations; or 
"(C) at which either Federal oil or gas may be sold under 
any other provision of law or rule or order thereunder which 
Notice. 
Regulations. 
Natural gas 
emergency. 
Allocation or 
lottery sale. 
Federal Energy 
Regulatory 
Commission, 
consultation. 
"Regulated 
price." 
15 u s e 751 note. 
15 u s e 717w. 
39-194 O—80—pt. 1 
46 ; QL3 
92 STAT. 668 
PUBLIC LAW 95-372—SEPT. 18, 1978 
43 use 1341. 
43 use 1354. 
Presidential 
findings, 
publication. 
Presidential 
report to 
eongress. 
Resolution of 
disapproval. 
43 use 1355. 
3 CFR, 1977 
eomp., p. 142. 
5 u s e 5332 note. 
sets a price (or manner for determining a price) for oil or 
gas; and 
"(2) the term 'small refiner' has the meaning given such term 
by Small Business Administration Standards 128.3-8 (d) and (g), 
as in effect on the date of enactment of this section or as there-
after revised or amended. 
"(f) N'othing in this section shall prohibit the right of the United 
States to purchase any oil or gas produced on the outer Continental 
Shelf as provided by section 12 (b) of this Act. 
"SEC. 28. LIMITATION" ON EXPORT.—(a) Except as provided in sub-
section (d) of this section, any oil or gas produced from the outer 
Continental Shelf shall be subject to the requirements and provisions 
of the Export Administration Act of 1969 (50 App. U.S.C. 2401 et 
seq.). 
(b) Before any oil or gas subject to this section may be exported 
under the requirements and provisions of the Export Administration 
Act of 1969, the President shall make and publish an express finding 
that such exports will not increase reliance on imported oil or gas, are 
in the national interest, and are in accord with the provisions of the 
Export Administration Act of 1969. 
"(c) The President shall submit reports to the Congress containing 
findings made under this section, and after the date of receipt of such 
report Congress shall have a period of sixt^^ calendar days, thirty 
days of which Congress must have been in session, to consider whether 
exports under the terms of this section are in the national interest. 
If the Congress within such time period passes a concurrent resolution 
of disapproval stating disagreement with the President's finding con-
cerning the national interest, further exports made pursuant to such 
Presidential finding shall cease. 
"(d) The provisions of this section shall not apply to any oil or gas 
which is either exchanged in similar quantity for convenience or 
increased efficiency of transportation with persons or the government of 
a foreign state, or which is temporarily exported for convenience or 
increased efficiency of transportation across parts of an adjacent for-
eign state and reenters the United States, or which is exchanged or 
exported pursuant to an existing international agreement. 
"SEC. 29. RESTRICTIONS ON EMPLOYMENT.—No full-time officer or 
employee of the Department of the Interior who directly or indirectly 
discharged duties or responsibilities under this Act, and who was at 
any time during the twelve months preceding the termination of his 
employment with the Department compensated under the Executive 
Schedule or compensated at or above the annual rate of basic pay for 
grade GS-16 of the General Schedule shall— 
"(1) within two years after his employment with the Depart-
ment has ceased— 
"(A) knowingly act as agent or attorney for, or otherwise 
represent, any other person (except the United States) in 
any formal or informal appearance before; 
"(B) with the intent to influence, make any oral or written 
communication on behalf of any other person (except the 
United States) to; or 
"(C) knowingly aid or assist in representing any other 
person (except the United States) in any formal or informal 
appearance before, 
any department, agency, or court of the United States, or any 
officer or employee thereof, in connection with any judicial or 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 669 
other proceeding, application, request for a ruling or other deter-
mination, regulation, order, lease, permit, rulemaking, or other 
particular matter involving a specific party or parties in which 
the United States is a party or has a direct and substantial inter-
est which was actually pending under his official responsibility 
as an officer or employee within a period of one year prior to the 
termination of such responsibility or in which he participated 
personally and substantially as an officer or employee; or 
"(2) within one year after his employment with the Depart-
ment has ceased— 
"(A) knowingly act as agent or attorney for, or otherwise 
represent, any other person (except the United States) in 
any formal or informal appearance before; or 
"(B) with the intent to influence, make any oral or written 
communication on behalf of any other person (except the 
United States) to, 
the Department of the Interior, or any officer or employee there-
of, in connection with any judicial, rulemaking, regulation, order, 
lease, permit, regulation, or other particular matter which is 
pending before the Department of the Interior or in which the 
Department has a direct and substantial interest. 
- s ; 
"SEC. 30. DOCUMENTATION, KEGISTRY, AND MANNING REQUIRE- 43 USC1356. 
MENTS.—(a) Within six months after the date of enactment of this Regulations, 
section, the Secretary of the Department in which the Coast Guard is 
operating shall issue regulations w'hich require that any vessel, rig, 
platform, or other vehicle or structure— 
"(1) which is used at any time after the one-year period begin-
ning on the effective date of sudh regulations for activities pursu-
ant to this Act and which is built or rebuilt at any time after such 
one-year period, when required to be documented by the laws of 
the United States, be documented under the laws of the United 
States; 
"(2) which is used for activities pursuant to this Act, comply, 
except as provided in subsection (b), with such minimum stand-
ards of design, construction, alteration, and repair as the Secretary 
or the Secretary of the Department in which the Coast Guard is 
operating establishes; and 
"(3) which is used at any time after the one-year period begin-
ning on the effective date of such regulations for activities pursu-
ant to this Act, be manned or crewed, except as provided in 
subsection (c), by citizens of the United States or aliens lawfully 
admitted to the United States for permanent residence. 
"(b) The regulations issued under subsection (a) (2) of this section 
shall not apply to any vessel, rig, platform, or other vehicle or struc-
ture built prior to the date of enactment of this section, until such 
time after such date as such vehicle or structure is rebuilt. 
"(c) The regulations issued under subsection (a) (3) of this section 
^all not apply— 
"(1) to any vessel, rig, platform, or other vehicle or structure 
if— 
"(A) specific contractual provisions or national registry 
maiming requirements in effect on the date of enactment of 
this section provide to the contrary; 
"(B) there are not a sufficient number of citizens of the 
United States, or aliens lawfully admitted to the United 
92 STAT. 670 
PUBLIC LAW 95-372—SEPT. 18, 1978 
States for permanent residence, qualified and available for 
such work; or 
"(C) the President makes a specific finding, with respect 
to the particular vessel, rig, platform, or other vehicle or 
structure, that application would not be consistent with the 
national interest; and 
"(2) to any vessel, rig, platform, or other vehicle or structure, 
over 50 percent of which is owned by citizens of a foreign nation 
or with respect to which the citizens of a foreign nation have the 
right effectively to control, except to the extent and to the degree 
that the President determines that the government of such for-
eign nation or any of its political subdivisions has implemented, 
by statute, regulation, policy, or practice, a national manning 
requirement for equipment engaged in the exploration, develop-
ment, or production of oil and gas in its offshore areas.". 
TITLE III—OFFSHORE OIL SPILL POLLUTION FUND 
DEFINITIONS 
43 use 1811. 
SEC. 301. For the purposes of this title, the term— 
(1) "Secretary" means the Secretary of Transportation; 
(2) "Fund" means the Offshore Oil Pollution Compensation 
Fund established under section 302 of this title; 
(3) "person" means an individual, firm, corporation, association, 
partnership, consortium, joint venture, or governmental entity; 
(4) "incident" means any occurrence or series of related occur-
rences, involving one or more offshore facilities or vessels, or any 
combination thereof, which causes or poses an imminent threat of 
oil pollution; 
(5) "vessel" means every description of watercraft or other con-
trivance, whether or not self-propelled, which is operating in the 
waters above the Outer Continental Shelf (as the term "outer 
Continental Shelf" is defined in section 2(a) of the Outer Con-
tinental Shelf Lands Act (43 U.S.C. 1331 (a))), or whidi is operat-
ing in the waters above submerged lands seaward from the 
coastline of a State (as the term "submerged lands" is described 
in section 2(a) of the Submerged Lands Act (43 U.S.C. 1301 
(a) (2))), and which is transporting oil directly from an offshore 
facility; 
(6) "public vessel" means a vessel which— 
(A) is owned or chartered by demise, and operated by (i) 
the United States, (ii) a State or political subdivision thereof, 
or (iii) a foreign government; and 
(B) is not engaged in commercial service; 
(7) "facility" means a structure, or group of structures (other 
than a ve^el or vessels), used for the purpose of transporting, 
drilling for, producing, processing, storing, transferring, or other-
wise handling oil; 
(8) "offshore facility" includes any oil refinery, drilling struc-
ture, oil storage or transfer terminal, or pipeline, or any appur-
tenance related to any of the foregoing, which is used to drill for, 
produce, store, handle, transfer, process, or transport oil produced 
from the Outer Continental Shelf (as the term "outer Continental 
Shelf" is defined in section 2(a) of the Outer Continental Shelf 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 671 
Lands Act (43 U.S.C. 1331(a))), and is located on the Outer 
Continental Shelf, except that such term does not include (A) a 
vessel, or (B) a deepwater port (as the term "deepwater port" is 
defined in section 3(10) of the Deepwater Port Act of 1974 (33 
U.S.C. 1502)); 
(9) "oil pollution" means— 
(A) the presence of oil either in an unlawful quantity or 
which has been discharged at an unlawful rate (i) in or on the 
waters above submerged lands seaward from the coastline of a 
State (as the term "submerged lands" is described in section 
2(a)(2) of the Submerged Lands Act (43 U.S.C. 1301(a) 
(2))), or on the adjacent shoreline of such a State, or (ii) 
on the waters of the contiguous zone established by the 
United States under Article 24 of the Convention on the Ter-
ritorial Sea and the Contiguous Zone (15 UST 1606); or 
(B) the presence of oil in or on the waters of the high seas 
outside the territorial limits of .the United States— 
(i) when discharged in connection with activities con-
ducted under the Outer Continental Shelf Lands Act (43 
U.S.C. 1331 etseq.); or 
(ii) causing injury to or loss of natural resources 
belonging to, appertaining to, or under the exclusive man- 
g 
agement authority of, the United States; or 
(C) the presence of oil in or on the territorial sea, navigable 
;t; 
or internal waters, or adjacent shoreline of a foreign country, 
in a case where damages are recoverable by a foreign claimant 
under this title; 
(10) "United States claimant" means any person residing in the 
United States, the Government of the United States or an agency 
thereof, or the government of a State or a political subdivision 
thereof, who asserts a claim under this title; 
(11) "foreign claimant" means any person residing in a foreign 
country, the government of a foreign country, or any agency or 
political subdivision thereof, who asserts a claim under this title; 
(12) "LTnited States" includes and "State" means the several 
States of the United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Canal Zone, Guam, American 
Samoa, the United States Virgin Islands, the Commonwealth of 
the Northern Mariana Islands, the Trust Territory of the Pacific 
Islands, and any other territory or possession over which the 
United States has jurisdiction; 
(13) "oil" means petroleum, including crude oil or any fraction 
or residue therefrom; 
(14) "cleanup costs" means costs of reasonable measures taken, 
after an incident has occurred, to prevent, minimize, or mitigate 
oil pollution from such incident; 
(15) "damages" means compensation sought pursuant to this 
title by any person suffering any direct and actual injury proxi-
mately caused by the discharge of oil from an offshore facility or 
vessel, except that such term does not include cleanup costs: 
(16) "person in charge" means the individual immediately 
responsible for the operation of a vessel or offshore facility; 
(17) "claim" means a demand in writing for a sum certain; 
(18) "discharge" means any emission, intentional or uninten-
tional, and includes spilling, leaking, pumping, pouring, empty-
ing, or dumping; 
92 STAT. 672 
PUBLIC LAW 95-372—SEPT. 18, 1978 
33 use 1321. 
33 use 1474. 
(19) "owner" means any person holding title to, or in the 
absence of title, any other indicia of ownership of, a vessel or off-
shore facility, whether by lease, permit, contract, license, or other 
form of agreement, or with respect to any offshof^ facility aban-
doned without prior approval of the Secretary of the Interior, the 
person who owned such offshore facility immediately prior to such 
abandonment, except that such term does not include a person 
who, without participating in the management or operation of a 
vessel or offshore facility, holds indicia of ownership primarily to 
protect his security interest in the vessel or offshore facility; 
(20) "operator" means— 
(A) in the case of a vessel, a charterer by demise or any 
other person, except the owner, who is responsible for the 
operation, manning, victualing, and supplying of the vessel; 
or 
(B) in the case of an offshore facility, any person, except 
the owner, who is responsible for the operation of such facil-
ity by agreement with the owner; 
(21) "property" means littoral, riparian, or marine property; 
(22) "removal costs" means^— 
(A) costs incurred under subsection (c), (d), or (1) of 
section 311 of the Federal Water Pollution Control Act, and 
section 5 of the Intervention on the High Seas Act; and 
(B) cleanup costs, other than the costs described in sub-
paragraph (A); 
(23) "guarantor" means the person, other than the owner or 
operator, who provides evidence of financial responsibility for an 
owner or operator; 
(24) "gross ton" means a unit of 100 cubic feet for the purpose 
of measuring the total unit capacity of a vessel; and 
(25) "barrel" means 42 United States gallons at 60 degrees 
Fahrenheit. 
Offshore Oil 
Pollution 
eompensation 
Fund. 
43 use 1812. 
FUND ESTABLISHMENT, ADMINISTRATION, AND FINANCING 
SEC. 302. (a) There is hereby established in the Treasury of the 
United States on Offshore Oil Pollution Compensation Fund in an 
amount not to exceed $200,000,000, except that such limitation shall be 
increased to the extent necessary to permit any moneys recovered or 
collected which are referred to in subsection (b) (2) of this section to 
be paid into the Fund. The Fund shall be administered by the Secre-
tary and the Secretary of the Treasury as specified in this title. The 
Fund may sue and be sued in its own name. 
(b) The Fund shall be composed of— 
(1) all fees collected pursuant to subsection (d) of this section; 
and 
(2) all other moneys recovered or collected on behalf of the 
Fund under section 308 or any other provision of this title. 
(c) The Fund shall be immediately available for— 
(1) removal costs described in section 301 (22); 
(2) the processing and settlement of claims under section 307 
of this title (including the costs of assessing injury to, or destruc-
tion of, natural resources); and 
(3) subject to such amounts as are provided in appropriation 
Acts, all administrative and personnel costs of the Federal Gov-
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 673 
Regulations. 
Publication in 
Federal Register. 
eminent incident to the administration of this title, including, but 
not limited to, the claims settlement activities and adjudicatory 
and judicial proceedings, whether or not such costs are recoverable 
under section 308 of this title. 
The Secretary is authorized to promulgate regulations designating the Regulations. 
person or persons who may obligate available money in the Fund for 
such purposes. 
(d)(1) The Secretary shall levy and the Secretary of the Treasury 
^all collect a fee of not to exceed 3 cents per barrel on oil obtained 
from the Outer Continental Shelf, which shall be imposed on the 
owner of the oil when such oil is produced. 
(2) The Secretary of the Treasury, after consulting with the Secre-
tary, may promulgate reasonable regulations relating to the collection 
of the fees authorized by paragraph (1) of this subsection and, from 
time to time, the modification thereof. Any modification shall become 
effective on the date specified in the regulation making such modifica-
tion, but no earlier than the ninetieth day following the date such 
regulation is published in the Federal Register. Any modification of 
the fee shall be designed to insure that the Fund is maintained at a 
level of not less than $100,000,000 and not more than $200,000,000. No 
regulation that sets or modifies fees, whether or not in effect, may be 
stayed by any court pending completion of judicial review of such 
regulation. 
(3) (A) Any person who fails to collect or pay any fee as required Civil penalty, 
by any regulation promulgated under paragraph (2) of this subsection 
shall be liable for a civil penalty not to exceed $10,000, to be assessed 
by the Secretary of the Treasury, in addition to the fee required to be 
collected or paid and the interest on such fee at the rate such fee would 
have earned if collected or paid when due and invested in special obli-
gations of the United States in accordance with subsection (e) (2) of 
this section. Upon the failure of any person so liable to pay any pen-
alty, fee, or interest upon demand, the Attorney General may, at the 
request of the Secretary of the Treasury, bring an action in the name 
of the Fund against that person for such amount. 
(B) Any person who falsifies records or documents required to be 
maintained under any regulation promulgated imder this subsection 
shall be subject to prosecution for a violation of section 1001 of title 
18, United States Code. 
(4) The Secretary of the Treasury may, by regulation, designate 
the reaconably necessary records and documents to be kept by persons 
from whom fees are to be collected pursuant to paragraph (1) of this 
subsection, and the Secretary of the Treasury and the Comptroller 
General of the United States shall have access to such records and 
documents for the purpose of audit and examination. 
(e) (1) The Secretary shall determine the level of funding required 
for immediate access in order to meet potential obligations of the 
Fund. 
(2) The Secretary of the Treasury may invest any excess in the 
Fund, above the level determined under paragraph (1) of this sub-
section, in interest-bearing special obligations of the United States. 
Such special obligations may be redeemed at any time in accordance Regulations, 
with the terms of the special issue and pursuant to regulations promul-
gated by the Secretary of the Treasury. The interest on, and the pro-
ceeds from the sale of, any obligations held in the Fund shall be 
deposited in and credited to the Fimd. 
Violation, 
prosecution. 
Regulations. 
Audit and 
examination. 
92 STAT. 674 
PUBLIC LAW 95-372—SEPT. 18, 1978 
(f) If at any time the moneys available in the Fimd are insufficient 
to meet the obligations of the Fund, the Secretary shall issue to the 
Secretary of the Treasury notes or other obligations in the forms and 
denominations, bearing the interest rates and maturities, and subject 
.srci, 
to such terms and conditions as may be prescribed by the Secretary 
of the Treasury. Redemption of such notes or other obligations shall be 
made by the Secretary from moneys in the Fund. Such notes or other 
obligations shall bear interest at a rate determined by the Secretary 
of the Treasury, taking into consideration the average market yield 
on outstanding marketable obligations of comparable maturity. The 
Secretary of the Treasury shall purchase any notes or other obliga-
tions issued under this subsection and, for that purpose, he is author-
ized to use as a public debt transaction the proceeds from the sale of 
31 use 774. 
any securities issued under the Second Liberty Bond Act. The purpose 
for which securities may be issued under that Act are extended to 
include any purchase of such notes or other obligations. The Secretary 
of the Treasury may at any time sell any of the notes or other obliga-
tions acquired by him under this subsection. All redemptions, pur-
chases, and sales by the Secretary of the Treasury of such notes or 
other obligations shall be treated as public debt transactions of the 
United States. 
DAMAGES AND CLAIMANTS 
' 
43 use 1813. 
SEC. 303. (a) Claims for economic loss, arising out of or directly 
resulting from oil pollution, may be asserted for— 
(1) removal costs; and 
(2) damages, including— 
(A) injury to, or destruction of, real or personal property; 
(B) loss of use of real or personal property; 
j 
(C) injury to, or destruction of, natural resources; 
(D) loss of use of natural resources; 
(E) loss of profits or impairment of earning capacity due 
to injury to, or destruction of, real or personal property or 
natural resources; and 
(F) loss of tax revenue for a period of one year due to 
injury to real or personal property. 
(b) A claim authorized by subsection (a) of this section may be 
asserted— 
(1) under paragraph (1), by any claimant, except that the 
owner or operator of a vessel or offshore facility involved in an 
v;o.T, 
incident may assert such a claim only if he can show— 
(A) that he is entitled to a defense to liability under sec-
tion 304 (c) (1) or 304(c) (2) of this title; or 
(B) if not entitled to such a defense to liability, that he 
; 
is entitled to a limitation of liability under section 304(b), 
except that if he is not entitled to such a defense to liability 
but is entitled to such a limitation of liability, such claim may 
be asserted only as to the removal costs incurred in excess of 
that limitation; 
(2) under paragraphs (2) (A), (B), and (D), by any United 
.arjj. 
States claimant if the property involved is owned or leased, or 
the natural resource involved is utilized, by the claimant; 
(3) under paragraph (2) (C), by the President, as trustees for 
natural resources over which the Federal Government has sover-
eign rights or exercises exclusive management authority, or by 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 675 
any State for natural resources within the boundary of the State 
belonging to, managed by, controlled by, or appertaining to the 
State, and sums recovered under paragraph (2) (C) shall be 
available for use to restore, rehabilitate, or acquire the equivalent 
of such natural resources by the appropriate agencies of the Fed-
eral Government or the State, but the measure of such damages 
shall not be limited by the sums which can be used to restore or 
replace such resources; 
(4) under paragraph (2) (E), by any United States claimant 
if the claimant derives at least 25 per centum of his earnings from 
activities which utilize the property or natural resource; 
(5) under paragraph (2) (F), by the Federal Government and 
any State or political subdivision thereof; 
(6) under paragraphs (2) (A) through (E), by a foreign 
claimant to the same extent that a United States claimant may 
assert a claim if— 
(A) the oil pollution occurred in or on the territorial sea, 
navigable waters or internal waters, or adjacent shoreline of 
a foreign country of which the claimant is a resident; 
CB) the claimant is not otherwise compensated for his loss; 
(C) the oil was discharged from an offshore facility or 
from a vessel in connection with activities conducted under 
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.) ; and 
(D) recovery is authorized by a treaty or an executive 
agreement between the United States and the foreign country 
involved, or the Secretary of State, in consultation with the 
Attorney General and other appropriate officials, certifies that 
such country provides a comparable remedy for United States 
claimants; 
-'5 
.. 
(7) under paragraph (1) or (2), by the Attorney General, 
"' 
on his own motion or at the request of the Secretary, on behalf 
of any group of United States claimants who may assert a claim 
uiider this subsection, when he determines that the claimants 
would be more adequately represented as a class in asserting their 
claimis. 
(c) If the Attorney General fails to take action under paragraph 
(7) of subsection (b) within sixty days of the date on which the Sec-
retary designates a source under section 306 of this title, any member 
of a group described in such paragraph may maintain a class action 
to recover damages on behalf of that group. Failure of the Attorney 
General to take action shall have no bearing on any class action main-
tained by any claimant for damages authorized by this section. 
LIABILITY 
SEC. 304. (a) Subject to the provisions of subsections (b) and (c) 43 USC 1814. 
of this section, the owner and operator of a vessel other than a public 
vessel, or of an offshore facility, which is the source of oil pollution, 
or poses a threat of oil pollution in circumstances which justify the 
incurrence of the type of costs described in section 301(22) of this 
title, shall be jointly, severally, and strictly liable for all loss for 
which a claim may be asserted under section 303 of this title. 
(b) Except when the incident is caused primarily by willful mis-
conduct or gross negligence, within the privity or knowledge of the 
92 STAT. 676 
PUBLIC LAW 95-372—SEPT. 18, 1978 
owner or operator, or is caused primarily by a violation, within the 
privity or knowledge of the owner or operator, of applicable safety, 
construction, or operating standards or regulations of the Federal 
Government, the total of the liability under subsection (a) of this 
section incurred by, or on behalf of, the owner or operator shall be— 
(1) in the case of a vessel, limited to $250,000 or $300 per gross 
ton, whichever is greater, except when the owner or operator of 
a vessel fails or refuses to provide all reasonable cooperation and 
assistance requested by the responsible Federal official in further-
ance of cleanup activities; or 
(2) in the case of an offshore facility, the total of removal and 
cleanup costs, and an amount limited to $35,000,000 for all 
damages. 
(c) There shall be no liability under subsection (a) of this section— 
(1) if the incident is caused solely by any act of war, hostilities, 
civil war, or insurrection, or by an unanticipated grave natural 
disaster or other natural phenomenon of an exceptional, inevit-
able, and irresistable character, the effect of which could not have 
been prevented or avoided by the exercise of due care or foresight; 
or 
(2) if the incident is caused solely by the negligent or inten-
tional act of the damaged party or any third party (including any 
government entity). 
(d) Notwithstanding the limitations, exceptions, or defenses of 
subsection (b) or (c) of this section, all costs of removal incurred by 
the Federal Government or any State or local official or agency in 
connection with a discharge of oil from any offshore facility or vessel 
shall be borne by the owner and operator of the offshore facility or 
vessel from which the discharge occurred. 
Report to 
(e) The Secretary shall, from time to time, report to Congress on 
Congress. 
the desirability of adjusting the monetary limitation of liability speci-
fied in subsection (b) of this section. 
(f) (1) Subject to the provisions of paragraph (2) of this subsec-
tion, the Fund shall be liable, without any limitation, for all losses for 
which a claim may be asserted under section 303 of this title, to the 
extent that such losses are not otherwise compensated. 
(2) Except for the removal costs specified in section 301(22), there 
shall be no liability under paragraph (1) of this subsection— 
(A) as to a particular claimant, where the incident or economic 
loss is caused, in whole or in part, by the gross negligence or will-
ful misconduct of that claimant; or 
(B) as to a particular claimant, to the extent that the incident 
or economic loss is caused by the negligence of that claimant. 
(g) (1) In addition to the losses for which claims may be asserted 
under section 303 of this title, and without regard to the limitation of 
liability provided in subsection (b) of this section, the owner, operator, 
* 
or guarantor of an offshore facility or vessel shall be liable to the 
claimant for interest on the amount paid in satisfaction of the claim 
for the period from the date upon which the claim is presented to such 
person to the date upon which the claimant is paid, inclusive, less the 
period, if any, from the date upon which such owner, operator, or guar-
antor offers the claimant an amount equal to or greater than the amount 
finally paid in satisfaction of the claim to the date upon which the 
claimant accepts such amount, inclusive. However, if such owner, 
operator, or guarantor offers the claimant, within sixty days of the date 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 677 
upon which the claim is presented, or of the date upon which advertis-
ing is commenced pursuant to section 306 of this title, whichever is 
later, an amount equal to or greater than the amount finally paid in 
satisfaction of the claim, the owner, operator, or guarantor shall be 
liable for the interest provided in this paragraph only from the date 
the offer is accepted by the claimant to the date upon which payment 
is made to the claimant, inclusive. 
(2) The interest provided in paragraph (1) of this subsection shall 
be calculated at the average of the highest rate for commercial and 
finance company paper of maturities of one hundred and eighty days 
or less obtaining on each of the days included within the period for 
which interest must be paid to the claimant, as published in the Federal 
Reserve Bulletin. 
(h) Nothing in this title shall bar a cause of action that an owner 
or operator, subject to liability under subsection (a) of this section, or 
a guarantor, has or would have, by reason of subrogation or otherwise, 
against any person. 
(i) To the extent that they are in conflict or otherwise inconsistent 
with any other provision of law relating to liability or the limitation 
thereof, the provisions of this section shall supersede such other pro-
vision of law, including section 4283(a) of the Revised Statutes (46 
U.S.C.183(a)). 
FINANCIAL, RESPGNSIBIIrlTY 
Regulations. 
43 use 1815. 
SEC. 305. (a)(1) The owner or operator of any vessel (except a 
non-self-propelled barge that does not carry oil as fuel or cargo) 
which uses an offshore facility shall establish and maintain, in accord-
ance with regulations promulgated by the President, evidence of 
financial responsibility sufficient to satisfy the maximum amount of 
liability to which the owner or operator of such vessel would be exposed 
in a case where he would be entitled to limit his liability in accordance 
with the provisions of section 304(b) of this title. Financial responsi-
bility may be established by any one, or any combination, of the fol-
lowing methods, acceptable to the President: evidence of insurance, 
guarantee, surety bond, or qualification as a self-insurer. Any bond 
filed shall be issued by a bonding company authorized to do business 
in the United States. In any case where an owner or operator owns, 
;.. ^ci'l 
operates, or charters more than one vessel subject to this subsection, 
evidence of financial responsibility need be established only to meet 
the maximum liability applicable to the largest of such vessels. 
(2) The Secretary, in accordance with regulations promulgated by Regulations, 
him, shall— 
(A) deny entry to any port or place in the United States or to 
the navigable waters to; and 
(B) detain at the port or place in the United States from which 
it is about to depart for any other port or place in the United 
States, 
any A^essel subject to this subsection which, upon request, does not 
produce certification furnished by the President that such vessel is 
in compliance wath the financial responsibility provisions of paragraph 
(1) of this subsection. 
(3) The Secretary, in accordance with regulations promulgated by Regulations, 
him, shall have access to all offshore facilities and vessels conducting 
activities under the Outer Continental Shelf Lands Act, and such 43 USC 1331 
facilities and vessels shall, upon request, show certification of finan- note. 
cial responsibility. 
92 STAT. 678 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Regulations. 
Study. 
Report. 
(b) The owner or operator of an offshore facility which (1) is used 
for drilling for, producing, or processing oil, or (2) has the capacity 
to transport, store, transfer, or otherwise handle more than one thou-
sand barrels of oil at any one time, shall establish and maintain, in 
accordance with regulations promulgated by the President, evidence of 
financial responsibility sufficient to satisfy the maximum amount of 
liability to which the owner or operator of such facility would be 
exposed in a case where he would be entitled to limit his liability in 
accordance with the provisions of section 304(b) of this title, or 
$35,000,000, whichever is less. 
(c) Any claim authorized by section 303(a) may 
be asserted 
directly against any guarantor providing evidence of financial respon-
sibility for any owner or operator of an offshore facility or vessel as 
required under this section. In defending such claim, the guarantor 
shall be entitled to invoke all rights and defenses which would be 
available to such owner or operator under this title. Such guarantor 
shall also be entitled to invoke the defense that the incident was caused 
by the willful misconduct of such owner or operator, but shall not be 
entitled to invoke any other defense which such guarantor might be 
entitled to invoke in proceedings brought by such owner or operator 
against such guarantor. 
(d) The President shall conduct a study to determine— 
(1) whether adequate private oil pollution insurance protec-
tion is available on reasonable terms and conditions to the owners 
and operators of vessels, onshore facilities, and offshore facilities; 
and 
(2) whether the market for such insurance is sufficiently com-
petitive to assure purchasers of features such as a reasonable range 
of deductibles, coinsurance provisions, and exclusions. 
The President shall submit the results of his study, together with his 
recommendation, within one year after the date of enactment of this 
title, and shall submit an interim report on his study within three 
months after such date of enactment. 
NOTIFICATION, DESIGNATION, AND ADVERTISEMENT 
43 use 1816. 
SEC. 306. (a) The person in charge of a vessel or offshore facility 
which is involved in an incident shall immediately notify the Secre-
tary of the incident as soon as he has knowledge thereof. Notification 
received pursuant to this subsection or information obtained by the 
« 
exploitation of such notification shall not be used against such person 
or his employer in any criminal cavse, other than a case involving prose-
cution for perjury or for giving a false statement. 
(b) (1) When the Secretary receives information pursuant to sub-
section (a) of this section or otherwise of an incident which involves 
oil pollution, the Secretary shall, where possible, designate the source 
or sources of the oil pollution and shall immediately notify the owner 
and operator of such source and the guarantor of such designation. 
Regulations. 
(2) When a source designated under paragraph (1) of this subsec-
tion is a vessel or offshore facility and the owner, operator, or guaran-
tor fails to inform the Secretary, within five days after receiving 
notification of the designation, of his denial of such desiarnation, such 
owner, operator, or guarantor, as required by regulations promul-
: 
gated bv the Secretary, shall advertise the designation and the proce-
dures by which claims may be presented to him. If advertisement is 
not made in accordance with this paragraph, the Secretary shall, as 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 679 
he finds necessary, and at the expense of the owner, operator, or guar-
antor involved, advertise the designation and the procedures by wliich 
claims may be presented to such owner, operator, or guarantor. 
(c) In a case where— 
(1) the owner, operator, and guarantor all deny a designation 
in accordance with paragraph (2) of subsection (b) of this section; 
(2) the source of the discharge was a public vessel; or 
(3) the Secretary is unable to designate the source or sources 
of the discharge under paragraph (1) of such subsection (b), 
the Secretary shall advertise or otherwise notify potential claimants 
of the procedures by which claims may be presented to the Fund. 
(d) Advertisement under subsection (b) of this section shall com- Effective date, 
mence no later than fifteen days after the date of the designation made 
under such subsection and shall continue for a period of no less than 
thirty days. 
CLAIMS 
SETTLEMENT 
SEC. 307. (a) Except as provided in subsection (b) of this section, 43 USC 1817. 
all claims shall be presented to the owner, operator, or guarantor. 
(b) All claims shall be presented to the Fund— 
(1) where the Secretary has advertised or otherwise notified 
claimants in accordance with section 306(c) of this title; or 
(2) where the owner or operator may recover under the provi-
sions of section 303 (b)(1) of this title. 
(c) In the case of a claim presented in accordance with subsection 
(a) of this section, and in which— 
(1) the person to whom the claim is presented denies all liabil-
ity for the claim, for any reason; or 
(2) the claim is not settled by any person by payment to the 
claimant within sixty days from the date upon which (A) the 
claim is presented, or (B) advertising is commenced pursuant to 
section 306 (b)(2), whichever is later, 
the claimant may elect to commence an action in court against the 
owner, operator, or guarantor, or to present the claim to the Fund, that 
election to be irrevocable and exclusive. 
(d) In the case of a claim presented in accordance with subsection 
(a) of this section, where full and ade(]^uate compensation is unavail-
able, either because the claim exceeds a limit of liability invoked under 
section 304(b) of this title or because the owner, operator, and guaran-
tor to whom the claim is presented are financially incapable of meeting 
their obligations in full, a claim for the uncompensated damages may 
be presented to the Fund. 
(e) In the case of a claim which is presented to any person, pursu-
ant to subsection (a) of this section, and which is being presented to 
the Fund, pursuant to subsection (c) or (d) of this section, such per-
son, at the request of the claimant, shall transmit the claim and sup-
porting documents to the Fund. The Secretary may, by regulation, Regulations, 
prescribe the documents to be transmitted and the terms under which 
they are to be transmitted. 
(f) In the case of a claim presented to the Fund, pursuant to sub-
section (b), (c), or (d) of this section, and in which the Fund— 
(1) denies all liability for the claim, for any reason; or 
(2) does not settle the claim by payment to the claimant within 
sixtv days after the date upon which (A) the claim is presented 
to the Fund, or (B) advertising is commenced pursuant to section 
306 (c) of this title, whichever is later, 
92 STAT. 680 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Regulations. 
Contract. 
Review and audit. 
Panel. 
18 u s e 201 et 
18 u s e 201 note. 
the claimant may submit the dispute to the Secretary for decision in 
accordance with section 554 of title 5, United States Code. However, a 
claimant who has presented a claim to the Fund pursuant to such sub-
section (b) may elect to commence an action in court against the Fund 
in lieu of submission of the dispute to the Secretary for decision, that 
election to be irrevocable and exclusive. 
(g) (1) The Secretary shall promulgate regulations which establish 
uniform procedures and standards for the appraisal and settlement of 
claims against the Fund. 
(2) Except as provided in paragraph (3) of this subsection, the 
Secretary shall use the facilities and services of private insurance and 
claims adjusting organizations or State agencies in processing claims 
against the Fund and may contract to pay compensation for those 
facilities and services. Any contract made under the provisions of this 
paragraph may be made without regard to the provisions of section 
3709 of the Kevised Statutes (41 U.S.C. 5) upon a showing by 
the Secretary that advertising is not reasonably practicable. The 
Secretary may make advance payments to a contractor for serv-
ices and facilities, and the Secretary may advance to the contractor 
funds to be used for the payment of claims. The Secretary may review 
and audit claim payments made pursuant to this subsection. A pay-
ment to a claimant for a single claim in excess of $100,000, or two or 
more claims aggregating in excess of $200,000, shall be first approved 
by the Secretary. When the services of a State agency are used in 
processing and settling claims, no payment may be made on a claim 
asserted by or on behalf of such State or any of its agencies or sub-
divisions unless the payment has been approved by the Secretary. 
(3) To the extent necessitated by extraordinary circumstances, 
where the services of such private organizations or State agencies are 
inadequate, the Secretary may use Federal personnel to process claims 
against the Fund. 
(h) Notwithstanding subsection (b) of section 556 of title 5, United 
States Code, the Secretary is authorized to appoint, from time to time 
for a period of not to exceed one hundred and eighty days, one or 
more panels, each comprised of three individuals, to hear and decide 
disputes submitted to the Secretary pursuant to subsection (f) of this 
section. At least one member of each panel shall be qualified to conduct 
adjudicatory proceedings and shall preside over the activities of the 
panel. Each member of a panel shall possess competence in the evalu-
ation and assessment of property damage and the economic losses 
resulting therefrom. Panel members may be appointed from private 
life or from any Federal agency except the staff administering the 
Fund. Each panel member appointed from private life shall receive a 
per diem compensation, and each panel member shall receive necessary 
traveling and other expenses while engaged in the work of a panel. 
The provisions of chapter 11 of title 18, United States Code, and of 
Executive Order 11222, as amended, regarding special Government 
employees, shall apply to panel members appointed from private life. 
(i) (1) Upon receipt of a request for a decision from a claimant, 
properly made, the Secretary shall refer the dispute to (A) an 
administrative law judge appointed under section 3105 of title 5, 
United States Code, or (B) a panel appointed under subsection (h) of 
this section. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 681 
(2) The administrative law judge and each member of a panel to 
which a dispute is referred for decision shall be a resident of the 
United States judicial circuit within which the damage complained of 
occurred, or, if the damage complained of occurred within two or 
more circuits, of any of the affected circuits, or, if the damage occurred 
outside any circuit, of the nearest circuit. 
(3) Upon receipt of a dispute, the administrative law judge or 
panel shall adjudicate the case and render a decision in accordance 
with section 554 of title 5, United States Code. In any proceeding sub- Subpena. 
ject to this subsection, the presiding officer may require by subpena any 
S
erson to appear and testify or to appear and produce books, papers, 
ocuments, or tangible things at a hearing or deposition at any desig-
nated place. Subpenas shall be issued and enforced in accordance with 
procedures in subsection (d) of section 555 of title 5, United States 
Code, and rules promulgated by the Secretary. If a person fails or 
't 
- J r^ 
refuses to obey a subpena, the Secretary may invoke the aid of the dis-
trict court of the United States where the person is found, resides, or 
transacts business in requiring the attendance and testimony of the 
person and the production by him of books, papers, documents, or any 
tangible things. 
(4) A hearing conducted under this subsection shall be conducted 
within the United States judicial district within which, or nearest to 
which, the damage complained of occurred, or, if the damage com-
S
lained of occurred within two or more districts, in any of the affected 
istricts, or if the damage occurred outside any district, in the nearest 
district. 
(5) The decision of the administrative law judge or panel under Final order, 
this subsection shall be the final order of the Secretary, except that Regulations, 
the Secretary, in his discretion and in accordance with regulations 
which he may promulgate, may review the decision upon his own ini-
tiative or upon exception of the claimant or the Fund. 
(6) Final orders of the Secretary made under this subsection shall 
be reviewable pursuant to section 702 of title 5, United States Code, 
in the district courts of the United States. 
(j)(l) In any action brought pursuant to this title against an 
owner, operator, or guarantor, both the plaintiff and defendant shall 
serve a copy of the complaint and all subsequent pleadings therein 
upon the Fund at the same time such pleadings are served upon the 
opposing parties. 
(2) The Fund may intervene in any action described in paragraph 
(1) of this subsection as a matter of right. 
(3) In any action described in paragraph (1) of this subsection to 
which the Fund is a party, if the owner, operator, or guarantor admits 
liability under this title, the Fund upon its motion shall be dismissed 
therefrom to the extent of the admitted liability. 
(4) If the Fund receives from either the plaintiff or the defendant 
notice of an action described in paragraph (1) of this subsection, the 
fund shall be bound by any judgment entered therein, whether or not 
the Fund was a party to the action. 
(5) If neither the plaintiff nor the defendant gives notice of an 
action described in paragraph (1) of this subsection to the Fund, the 
limitation of liability otherwise permitted by section 304(b) of this 
title shall not be available to the defendant, and the plaintiff shall not 
recover from the Fund any sums not paid by the defendant. 
92 STAT. 682 
PUBLIC LAW 95-372—SEPT. 18, 1978 
(k) In any action brought against the Fund under this title, the 
plaintiff may join any owner, operator, or guarantor, and the Fund 
may join any person who is or may be liable to the Fund under any 
provision of this title. 
(1) No claim may be presented, nor may an action be commenced 
for economic losses recoverable under this title, unless such claim is 
presented to, or such action is commenced against, the owner, oper-
ator, or guarantor, or the Fund, as to their respective liabilities, within 
i;.,: ' 
three years after the date of discovery of the economic loss for which 
a claim may be asserted under section 303(a) of this title, or within 
six years of the date of the incident which resulted in such loss, which-
ever is earlier. 
SUBROGATION 
43 use 1818. 
SEC. 308. (a) Any person or governmental entity, including the 
Fund, who pays compensation to any claimant for an economic loss, 
compensable under section 303 of this title, shall be subrogated to all 
rights, claims, and causes of action which such claimant has under 
this title. 
(b) Upon request of the Secretary, the Attorney General may com-
mence an action, on behalf of the Fund, for the compensation paid by 
the Fund to any claimant pursuant to this title. Such an action may 
be commenced against any owner, operator, or guarantor, or against 
any other person or governmental entity, who is liable, pursuant to 
any law, to the compensated claimant or to the Fund, for economic 
losses for which the compensation was paid. 
(c) In any claim or action by the Fund against any owner, operator, 
or guarantor, pursuant to the provisions of subsection (a) or (b), the 
Fund shall recover— 
(1) for a claim presented to the Fund (where there has been a 
denial of source designation) pursuant to section 307(b)(1) of 
this title, or (where there has been a denial of liability) pursuant 
to section 307 (c) (1) of this title— 
(A) subject only to the limitation of liability to which the 
defendant is entitled under section 304(b) of this title, the 
amount the Fund has paid to the claimant, without reduc-
tion ; 
(B) interest on such amount, at the rate calculated in 
accordance with section 304(g) (2) of this title, from the date 
upon which the claim is presented by the claimant to the 
defendant to the date upon which the Fund is paid by the 
defendant, inclusive, less the period, if any, from the date 
upon which the Fund offers to the claimant the amount 
finally paid by the Fund to the claimant in satisfaction of 
the claim against the Fund to the date upon which the claim-
ant accepts that offer, inclusive; and 
(C) all costs incurred by the Fund by reason of the claim, 
both of the claimant against the Fund and the Fund against 
the defendant, including, but not limited to, processing costs, 
investigating costs, court costs, and attorneys' fees; and 
(2) for a claim presented to the Fund pursuant to section 307 
(c) (2) of this title— 
(A) in which the amount the Fund has paid to the claim-
ant exceeds the largest amount, if any, the defendant offered 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 683 
to the claimant in satisfaction of the claim of the claimant 
against the defendant— 
'^ 
(i) subject to dispute by the defendant as to any 
excess over the amount offered to the claimant by the 
defendant, the amount the Fund has paid to the 
claimant; 
(ii) interest, at the rate calculated in accordance with 
,, 
section 304(g) (2) of this title, for the period specified 
in paragraph (1) (B) of this subsection; and 
(iii) all costs incurred by the Fund by reason of the 
claim of the Fund against the defendant, including, but 
not limited to, processing costs, investigating costs, court 
costs, and attorneys'fees; or 
(B) in which the amount the Fund has paid to the claim-
ant is less than or equal to the largest amount the defendant 
offered to the claimant in satisfaction of the claim of the 
claimant against the def 
endant—-
(i) the amount which the Fund has paid to the claim-
ant, without reduction; 
(ii) interest, at the rate calculated in accordance with 
section 304 (g) (2) of this title, from the date upon which 
the claim is presented by the claimant to the defendant 
to the date upon which the defendant offered to the 
claimant the largest amount referred to in this subpara-
graph, except that if the defendant tenders the offer of 
the largest amount referred to in this subparagraph 
within sixty days after the date upon which the claim 
©f the claimant is either presented to the defendant or 
advertising is commenced pursuant to section 306 of this 
title, the defendant shall not be liable for interest for 
that period; and 
r,, 
p,j n 
(iii) interest from the date upon which the claim of 
the Fund against the defendant is presented to the 
defendant to the date upon which the Fund is paid, inclu-
sive, less the period, if any, from the date upon which 
' 
the defendant offers to the Fund the amount finally paid 
to the Fund in satisfaction of the claim of the Fund 
-u. >
3 ' *^' 
to the date upon which the Fund accepts that offer, 
inclusive. 
(d) The Fund shall pay over to the claimant that portion of any 
interest the Fund recovers, pursuant to subsection (c) (1) and (2) (A), 
for the period from the date upon which the claim of the claimant is 
presented to the defendant to the date upon which the claimant is paid 
by the Fund, inclusive, less the period from the date upon which the 
Fund offers to the claimant the amount finally paid to the claimant in 
satisfaction of the claim to the date upon which the claimant accepts 
Such offer, inclusive. 
(e) The Fund is entitled to recover for all interest and costs speci-
fied in subsection (c) of this section without regard to any limitation 
of liability to which the defendant may otherwise be entitled under 
this title. 
• 
JURISDICTION AND VENUE 
SEC. 309. (a) The United States district courts shall have original 43 USC 1819. 
and exclusive jurisdiction of all controversies arising under this title, 
without regard to the citizenship of the parties or the amount in 
controversy. 
39-194 O—80—pt. 1 
47 : QL3 
92 STAT. 684 
PUBLIC LAW 95-372—SEPT. 18, 1978 
(b) Venue shall lie in any district wherein the injury complained 
of occurred, or wherein the defendant resides, may be found, or has 
his principal office. For the purposes of this section, the Fund shall 
reside in the District of Columbia. 
43 use 1820. 
43 use 1821. 
43 use 1822. 
Notice and 
hearing. 
,Qmi :)hu 1
-
RELATIONSHIP TO OTHER LAW 
SEC. 310. (a) Any person who receives compensation for damages 
or removal costs pursuant to this title shall be precluded from recover-
ing compensation for the same damages or removal costs pursuant to 
any other State or Federal law. Any person who receives compensa-
tion for damages or removal costs pursuant to any other State or 
Federal law shall be precluded from receiving compensation for the 
same damages or removal costs under this title. 
(b) No owner or operator of an offshore facility or vessel who 
establishes and maintains evidence of financial responsibility in accord-
ance with this section shall be required under any State law, rule, 
or regulation to establish any other evidence of financial responsibility 
in connection with liability for the discharge of oil from such offshore 
facility or vessel. Evidence of compliance with the financial responsi-
bility requirement of this section shall be accepted h^ a State in lieu 
of any other requirement of financial responsibility imposed by such 
State in connection with liability for the discharge of oil from such 
offshore facility or vessel. 
(c) Except as otherwise provided in this title, this title shall not be 
interpreted to preempt the field of liability or to preclude any State 
from imposing additional requirements or liability for any discharge 
of oil resulting in damages or removal costs within the jurisdiction 
of such State. 
PROHTBITrON 
SEC. 311. The discharge of oil from any offshore facility or vessel, 
in quantities which the President under section 311(b) of the Federal 
Water Pollution Control Act (33 U.S.C. 1321(b)) determines to be 
harmful, is prohibited. 
PENALTIES 
SEC. 312. (a) (1) Any person who fails to comply with the require-
ments of section 305 of this title, the regulations promulgated there-
under, or any denial or detention order, shall be subject to a civil 
penalty of not to exceed $10,000. 
(2) The civil penalty described in paragraph (1) of this subsection 
may be assessed and compromised by the President or his designee, in 
connection with section 30.5(a) (1) of this title, and by the Secretary, 
in connection with section 305(a) (3) and section 305(b) of this title. 
No penalty shall be assessed until notice and an opportunity for hear-
ing on the alleged violation have been given. In determining the 
amount of the penalty or the amount agreed upon in compromise, the 
demonstrated good faith of the party shall be taken into consideration. 
(3) At the request of the official assessing a pnenalty under this sub-
section, the Attorney General may bring an action in the name of the 
Fund to collect the penalty assessed. 
(b) Any person in charge who is subject to the jurisdiction of the 
United States and who fails to give the notification required by section 
306(a) of this title shall, upon conviction, be fined not more than 
$10,000 or imprisoned for not more than one year, or both. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 685 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 313. (a) There is authorized to be appropriated for the admin- 43 USC 1823. 
istration of this title $10,000,000 for the fiscal year ending September 
30, 1979, $5,000,000 for the fiscal year ending September 30,1980, and 
$5,000,000 for the fiscal year ending September 30,1981. 
(b) There are also authorized to be appropriated to the Fund, from 
time to time, such amounts as may be necessary to carry out the pur-
poses of the applicable provisions of this title, including the entering 
into contracts, any disbursements of funds, and the issurance of notes or 
other obligations pursuant to section 302 (f) of this title. 
(c) Notwithstanding any other provision of this title, the authority 
to make contracts, to make disbursements, to issue notes or other obliga-
tions pursuant to section 302(f) of this title, to charge and collect fees 
pursuant to section 302 (d) of this title, or to exercise any other spend-
ing authority shall be effective only to the extent provided, without 
fiscal year limitation, in appropriation Acts enacted after the date of 
enactment of this title. 
ANNUAL REPORT 
SEC. 314. Within six months after the end of each fiscal year, the 43 USC 1824. 
Secretary shall submit to the Congress (1) a report on the administra-
tion of the Fund during such fiscal year, and (2) his recommendations 
for such legislative changes as he finds necessary or appropriate to 
improve the management of the Fund and the administration of the 
liability provisions of this title. 
EFFECTIVE DATES 
SEC. 315. (a) This section, subsection (e) of section 304, subsection 43 USC 1811 
(d) of section 305, and all provisions of this title authorizing the dele- note, 
gation of authority or the promulgation of regulations shall be effective 
on the date of enactment of this title. 
(b) All other provisions of this title, and rules and regulations pro-
mulgated pursuant to such provisions, shall be effective on the one 
hundred and eightieth day after the date of enactment of this title. 
TITLE IV—FISHERMEN'S CONTINGENCY FUND 
>f''* 'i4-
DEFINITIONS 
SEC. 401. As used in this title, the term— 
43 USC 1841. 
(1) "citizen of the United States" means any pei'son who is a 
United States citizen by law, birth, or naturalization, any State, 
any agency of a State or a group of States, or any corporation, 
partnership, or association organized under the laws of any State 
which has as its president or other chief executive officer and as 
its chairman of the board of directors, or holder of a similar office, 
a person who is a United States citizen by law, birth, or naturaliza-
tion, and which has at least 75 per centum of the interest of therein 
owned by citizens of the United States. Seventy-five per centum 
of the interest in the corporation shall not be deemed to be owned 
by citizens of the United States— 
(A) if the title to 75 per centum of its stock is not vested in 
such citizens free from any trust or fiduciary obligation in 
'-^'' '^'^^*-
favor of any person not a citizen of the United States; 
' '*" 
92 STAT. 686 
PUBLIC LAW 95-372—SEPT. 18, 1978 
Mm. 'im u-
(B) if 75 per centum of the voting power in such corpora-
tion is not vested in citizens of the United States; 
(C) if through any contract or under-standing it is so ar-
ranged that more than 25 per centum of the voting power may 
be exercised, directly or indirectly, in behalf of any person 
who is not a citizen of the United States; or 
, 
(D) if by any other means whatsoever control of any inter-
est in the corporation in excess of 25 per centum is conferred 
upon or permitted to be exercised by any person who is not a 
citizen of the United States; 
(2) "commercial fisherman" means any citizen of the United 
States who owns, operates, or derives income from being employed 
on a commercial fishing vessel; 
(3) "commercial fishing vessel" means any vessel, boat, ship, or 
other craft which is (A) documented under the laws of the United 
States or, if under five net tons, registered under the laws of any 
State, and (B) used for, equipped to be used for, or of a type 
which is normally used for commercial purposes for the catching, 
taking, or harvesting of fish or the aiding or assisting at sea of any 
t^„^, 
activity related to the catching, taking, or harvesting of fish, 
including, but not limited to, preparation, supply, storage, 
refrigeration, transportation, or processing; 
(4) "fish" means finfish, mollusks, crustaceans, and all other 
forms of marine animal and plant life other than marine mam-
mals, birds, and highly migiutory species; 
(5) "fishing gear" means (A) any commercial fishing vessel, and 
(B) any equipment of such vessel, whether or not attached to such 
a vessel; 
ll«,j ;t,i ! y; 
(6) "Fund" means the Fishermen's Contingency Fund estab-
• 
lished under section 402 of this title; and 
(7) "Secretary" means the Secretary of Commerce or the 
designee of such Secretary, 
ESTABLISHMENT OF THE F I S H E R M E N ' S CONTINGENCY FUND,* FEE 
COLLECTION 
43 use 1842. 
SEC. 402. (a) There is hereby established in the Treasury of the 
United States a Fishermen's Contingency Fund. The Fund shall be 
available to the Secretary without fiscal year limitation as a revolving 
fund for the purpose of making payments pursuant to this section. 
„ , 
The total amount in the Fund shall at no time exceed $1,000,000. 
Amounts paid pursuant to the provisions of subsections (c) and (d) 
of this section shall be deposited in the Fund. The Fund may sue or 
be sued in its own name. 
(b) The Secretary is authorized to establish and maintain an area 
account within the Fund for any area of the Outer Continental Shelf 
for purposes of providing reasonable compensation for damages to, or 
loss of, fishing gear and any resulting economic loss to commercial 
fishermen due to activities related to oil and gas exploration, develop-
ment, and production in such area. 
(c) Upon establishment of an area account for any area of the Outer 
Continental Shelf pursuant to subsection (b) of this section, any 
holder of a lease issued or maintained under the Outer Continental 
43 use 1331 
Shelf Lands Act for any tract in such area and any holder of an 
note. 
exploration permit, or of an easement or right-of-way for the con-r 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 687 
Ji^j ti' 
struction of a pipeline in such area, shall pay an amount specified by 
the Secretary for the purpose of the establishment and maintenance of 
an area account for such area. The Secretary of the Interior shall col-
lect such amount and deposit it to the credit of such area account 
within the Fund. In any calendar year, no holder of a lease, permit, 
easement, or right-of-way shall be required to pay an amount in excess 
of $5,000 per lease, permit, easement, or right-of-way. 
(d) Subject to subsection (a) of this section, each area account 
established pursuant to this section shall be maintained at a level not 
to exceed $100,000 and, if depleted, shall be replenished by assessments 
of holders of leases, permits, easements, and rights-of-way in such area. 
(e) Amounts in each such area account shall be available for dis-
bursement and shall be disbursed, subject to such amounts as are pro-
vided in appropriations Acts, for only the following purposes: 
(1) Administrative and personnel expenses of such area account 
and administrative and personnel expenses of the Fund which 
relate to such area account, except that amounts disbursed for such 
expenses in any fiscal year shall not exceed 15 per centum of the 
amounts deposited in such revolving account in such fiscal year. 
(2) The payment of any claim in accordance with procedures 
established under this section for damages suffered as a result of 
activities in the area for which such area account was established. 
(3) Reasonable attorney's fees awarded pursuant to section 405 
(e) of this title. 
DUTIES AND POWERS 
SEC. 403. (a) In carrying out the provisions of this title, the Secre- 43 USC 1843. 
tary shall— 
(1) prescribe, and from time to time amend, regulations for the Regulations, 
filing, processing, and fair and expeditious settlement of claims 
pursuant to this title, including a time limitation on the filing of 
such claims; and 
(2) identify and classify all potential hazards to commercial 
fishing caused by Outer Continental Shelf oil and gas exploration, 
development, and production activities, including all obstructions 
on the bottom, throughout the water column, and on the siirf 
ace. 
(b) The Secretary of the Interior shall establish regulations requir- Regulations, 
ing all materials, equipment, tools, containers, and all other items used 
on the Outer Continental Shelf to be properly color coded, stamped, or 
labeled, wherever practicable, with the owner's identification prior to 
actual use. 
(c)(1) Payments shall be disbursed by the Secretary from the 
appropriate area account to compensate commercial fishermen for 
actual and consequential damages, including loss of profits, due to dam-
ages to, or loss of, fishing gear by materials, equipment, tools, con-
tainers, or other items associated with oil and gas exploration, 
development, or production activities in such area, whether or not such 
damage occurred in such area. 
(2) Notwithstanding the provisions of paragraph (1) of this sub-
section, no payment may be made by the Secretary from any area 
account established under this title— 
(A) when the damage set forth in a claim was caused by mate- 
, ^
^
^ 
rials, equipment, tools, containers, or other items attributable to 
a financially responsible party; 
92 STAT. 688 
PUBLIC LAW 95-372—SEPT. 18, 1978 
(B) to the extent that damages were caused by the negligence 
or fault of the commercial fisherman making the claim; 
(C) if the damage set forth in the claim was sustained prior to 
the date of enactment of this title; 
(D) in the case of a claim for damage to, or loss of, fishing gear, 
in an amount in excess of the replacement value of the fishing gear 
with respect to which the claim is filed; 
(E) in the case of a claim for loss of profits (i) for any period 
in excess of 6 months, and (ii) unless such claim is supported by 
records with respect to the claimant's profits during the previous 
12-month period; and 
(F) for any portion of the damages claimed with respect to 
which the claimant has or will receive compensation from 
insurance. 
BURDEN OF PROOF 
43 use 1844. 
SEC. 404. With respect to any claim for damages filed pursuant to 
this title, there shall be a presumption that such claim is valid if the 
claimant establishes that— 
(1) the commercial fishing vessel was being used for fishing 
and was located in an area affected by Outer Continental Shelf 
activities; 
(2) a report on the location of the material, equipment, tool, 
container, or other item which caused such damages and the 
nature of such damages was made within five days after the date 
on which such damages were discovered; 
^: 
: • - i 
(3) there was no record on nautical charts or the Notice to 
Mariners on the date such damages were sustained that such 
material, equipment, tool, container, or other item existed in such 
area; and 
(4) there was no proper surface marker or lighted buoy which 
was attached or closely anchored to such material, equipment, 
tool, container, or other item. 
• I 
• 
'_ 
CLAIM PROCEDURES AND SUBROGATION OF RIGHTS 
43 use 1845. 
SEC. 405. (a) Any commercial fisherman suffering damages com-
pensable under this title may file a claim for compensation with the 
Secretary, except that no such claim may be filed more than 60 days 
after the date of discovery of the damages with respect to which such 
claim is made. 
(b) Upon receipt of any claim under this section, the Secretary 
shall— 
(1) transmit a copy of the claim to the Secretary of the 
Interior; and 
(2) refer such matter to a hearing examiner appointed under 
section 3105 of title 5, United States Code. 
(c) The Secretary of the Interior shall make reasonable efforts to 
notify all persons known to have engaged in activities associated with 
Outer Continental Shelf energy activity in the vicinity. Each such 
person shall promptly notify the Secretary and the 'Secretary of the 
Interior as to whether he admits or denies responsibility for the dam-
Hearing, 
ages claimed. Any such person, including lessees or permittees or their 
contractors or subcontractors, may submit evidence at any hearing 
conducted with respect to such claim. 
- 
' 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 689 
(d) The heaidng examiner shall, within 120 days after such matter 
is referred to him by the Secretary, adjudicate the case and render a 
decision in accordance with section 554 of title 5, United States Code. 
(e) If the decision of the hearing examiner is in favor of the com-
mercial fisherman filing the claim, such hearing examiner shall include, 
as part of the amount certified to the Secretary under subsection (h)(1) 
of this section, reasonable attorneys' fees incurred by such commercial 
fisherman in pursuing such claim. 
(f) (1) For purposes of any hearing conducted pursuant to this 
section, the hearing examiner shall have the power to administer oaths 
and subpena the attendance or testimony of witnesses and the produc-
tion of books, records, and other evidence relative or pertinent to the 
issues being presented for determination. 
(2) In any hearing conducted pursuant to this section with respect 
to a claim for damages resulting from activities on any area of the 
Outer Continental Shelf, the hearing examiner shall consider evidence 
^ '•'' 
' ' * 
of oibstructions in such area which have been identified pursuant to 
the survey conducted under section 407 of this title. 
(g) A hearing conducted under this section shall be conducted within 
the United States judicial district within which the matter giving rise 
to the claim occurred, or, if such matter occurred within two or more 
districts, in any of the affected districts, or, if such matter occurred 
outside of any district, in the nearest district. 
(h) (1) Upon a decision by the hearing examiner and in the absence 
of a request for Judicial review, any amount to be paid, subject to the 
"
^ " " 
limitations of this section, shall be certified to the Secretary, who shall 
promptly disburse the award. Sndh decision shall not be reviewable 
by the Secretary. 
(2) Upon payment of a claim by the Secretary pursuant to this 
subsection, the Secretary shall acquire by subrogation all rights of 
the claimant against any person found to be responsible for the dam-
ages with respect to which such claim was made. 
(3) Any person who denies responsibility for damages with respect 
to which a claim is made and who is subquently found to be respon-
sible for such damages, and any commercial fisherman who files a 
claim for damages and who is subsequently found to be responsible 
for such damages, shall pay the costs of the proceedings under this 
section with respect to such claim. 
(i) Any person who suffers legal wrong or who is adversely affected Judicial review, 
or aggrieved by the decision of a he-aring examiner under this section 
may, no later than 60 days after such decision is made, seek judicial 
review of such decision in the United ^States court of appeals for the 
, 
circuit in which the damage occurred, or if such damage occurred 
outside of any circuit, in the United States court of appeals for the 
nearest circuit. 
ANNUAL REPORT 
SEC. 406. (a) The Secretary shall submit an annual report to the 43 USC 1846. 
Congress which shall set forth— 
(1) a description of the types of damages set forth in claims 
filed, with the Secretary during the previous year for compensation 
from the Fund; 
(2) the amount of compensation awarded to claimants during 
the previous year; and 
(3) the number of cases during the previous year in which 
damages were determined to be the responsibility of a lessee or 
92 STAT. 690 
PUBLIC LAW 95-372—SEPT. 18, 1978 
permittee conducting operations on the Outer Continental Shelf, 
or the contractor or subcontractor of such a lessee or permittee. 
(b) In addition to the material described in subsection (a) of this 
section, the Secretary shall, after consultation with the Secretary of 
the Interior, include in the first annual report an evaluation of the 
feasibility and comparative cost of preventing or reducing obstructions 
on the Outer Continental Shelf which pose potential hazards to com-
mercial fishing or fishing gear by (1) imposing fines or penalties on 
lessees or permittees, or contractors or subcontractors of lessees or 
permittees, who are responsible for such obstructions, or (2) requiring 
the bonding of such lessees or permittees or such contractors or 
subcontractors. 
SURVEY o r OBSTRUCTIONS ON THE OUTER CONTINENTAL SHELF 
43 use 1847. 
SEC. 407. (a) The Secretary, in cooperation with the Secretary of 
the Interior, shall conduct a two-year survey of obstructions on the 
Outer Continental Shelf. Such survey shall be conducted for purposes 
1 
of identifying (1) natural Ob^ructions on the Outer Continental Shelf 
which pose potential hazards to commercial fishing or fishing gear, and 
(2) in addition, in the case of areas in which oil and gas exploration, 
development, or production is taking place, manmade obstructions 
relating to such activities which pose potential hazards to commercial 
fishing or fishing gear. 
Regulations. 
(b) The Secretary shall, on the basis of the survey conducted under 
this section, and regulations promulgated under section 403(a) of this 
title, develop charts for commercial fishermen identifying obstructions 
on the Outer Continental Shelf. 
(c) During the first six months of the survey conducted under this 
section, the Secretary shall concentrate on areas of the Outer Conti-
nental Shelf where oil and gas production has commenced or is 
expected to commence prior to the expiration of the two-year period 
of such survey. 
TITLE V—AMENDMENTS TO THE COASTAL ZONE 
MANAGEMENT ACT OF 1972 
COASTAL ENERGY IMPACT PROGRAM 
V.'nv' 
' i 
-'J . 
Sec. 501. (a) Paragraph (2) of section 308(b) of the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1456a(b)(2)) is amended— 
(1) by striking out "The amounts granted" and inserting in lieu 
thereof "Subject to paragraph (3), the amounts payable"; 
(2) by striking out "(A), (B), (C), and (D)" and inserting in 
lieu thereof " (A), (B), and (C)" ; 
(3) in subparagraph (A), by striking out "one-third" and 
inserting in lieu thereof "one-half" ; 
(K- 
(4) in subparagraph (B), by striking out "one-sixth" and 
inserting in lieu thereof "one-quarter"; 
(5) in subparagraph (C), by striking out "one-sixth" and in-
serting in lieu thereof "one-quarter"; and 
(6) by striking and subparagraph (D). 
(b) Such section 308 (b) is amended— 
(1) by renumbering paragraphs (3) through (5), and any ref-
erences thereto, as paragraphs (4) through (6), respectively; and 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 691 
(2) by inserting after paragraph (2) the following new para-
graph : 
"(3)(A)(i) After making the calculations required under para- Appropriation 
graph (2) for any fiscal year, the Secretary shall— 
adjustments. 
"(I) with respect to any coastal state which, based on such cal-
culations, would receive an amount which is less than 2 per centum 
of the amount appropriated for such fiscal year, increase the 
'^ 
amount appropriated for such fiscal year, increase the amount 
^
^ 
payalble to such coastal state to 2 per centum of such appropriated 
amount; and 
" (II) with respect to any coastal state which, in such fiscal year, 
would not receive a grant under paragraph (2), make a gi'ant to 
such coastal state in an amount equal to 2 per centum of the total 
' 
*
^
- J '^f 
amount appropriated for making grants to all states under para-
graph (2) in such fiscal year if any other coastal state in the same 
region will receive a grant under such paragraph in such fiscal 
year, except that a coastal state shall not receive a grant under this 
subclause unless the Secretary determines that it is being or will 
be impacted by outer Continental Shelf energy activity and that 
it will be able to expend or commit the proceeds of such grant in 
.s-ns/i 
accordance with the purposes set forth in paragraph (5). 
"(ii) For purposes of this subparagraph— 
" (I) the states of Connecticut, Delaware, Georgia, Maine, Mary-
land, Massachusetts, New Hampshire, New Jersey, New York, 
North Carolina, Pennsylvania, Rhode Island, South Carolina, and 
Virginia, the Commonwealth of Puerto Rico, and the Virgin 
Islands (the Atlantic coastal states) shall constitute one 'region'; 
"(II) the states of Alabama, Florida, Louisiana, Mississippi, 
and Texas (the Gulf coastal states) shall constitute one 'region'; 
"(III) the states of California, Hawaii, Oregon, and Washing-
ton (the Pacific coastal states) shall constitute one 'region'; and 
"(IV) the state of Alaska shall constitute one 'region'. 
"(B) If, after the calculations required under subparagraph (A), 
the total amount of funds appropriated for making grants to coastal 
states in any fiscal year pureuant to this subsection is less than the total 
amount of grants payable to all coastal states in such fiscal year, there 
shall be deducted from the amount payable to each coastal state which 
will receive more than 2 per centum of the amount of funds so appro-
priated an amount equal to the product of— 
" (i) the amount by which the total amount of grants payable to 
all coastal states in such fiscal year exceeds the total amount of 
funds appropriated for making such grants; multiplied by 
" (ii) a fraction, the numerator of which is the amount of grants 
payable to such coastal state in such fiscal year reduced by an 
amount equal to 2 per centum of the total amount appropriated for 
such fiscal year and the denominator of which is the total amount 
of grants payable to coastal states which, in such fiscal year, will 
c
^ - ; g^ 
receive more than 2 per centum of the amount of funds so appro- 
J^j<^g, 
priated, reduced by an amount equal to the product of 2 per cen-
tum of the total amount appropriated for such fiscal year 
multiplied by the number of such coastal states. 
"(C) (i) If, after the calculations required under subparagraph (B) 
for any fiscal year, any coastal state would receive an amount which is 
greater than 37i^ per centum of the amount appropriated for such 
fiscal year, the Secretary shall reduce the amount payable to such 
coastal state to 37i/^ per centum of such appropriated amount. 
92 STAT. 692 
PUBLIC LAW 95-372—SEPT. 18, 1978 
"Payable 
proportionately. 
16 u s e 1456a. 
Rules. 
"(ii) An^ amount not payable to a coastal state in a fiscal year due 
to a reduction under clause (i) shall be payable proportionately to all 
coastal states which are to receive more than 2 per centum and less than 
371/^ per centum of the amount appropriated for such fiscal year, 
except that in no event shall any coastal state receive more than 37l^ 
per centum of such appropriated amount. 
"(iii) For purposes of this subparagraph, the term 'payable propor-
tionately' means payment in any fiscal year in accordance with the pro-
visions of paragraph (2), except that in making calculations under 
such paragraph the Secretary shall only include those coastal states 
which are to receive more than 2 per centum and less than 37i/^ per 
centum of the amount appropriated for such fiscal year.". 
(c)(1) Paragraph (5) (B) (i) of such section 308(b) (as renum-
bered by subsection (b) of this section) is amended to read as follows: 
"(i) necessary to provide new or improved public facilities 
and public services which are required as a result of outer 
Continental Shelf energy activity;". 
(2) Paragraph (5) (B) of such section 308(b) (as so renumbered) is 
amended by adding at the end thereof the following new sentence: 
"The Secretary may, pursuant to criteria promulgated by rule, 
describe geographic areas in which public facilities and public 
services referred to in clause (i) shall be presumed to be required 
as a result of outer Continental Shelf energy activity for purposes 
of disbursing the proceeds of grants under this subsection.". 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 502. Paragraph (3) of section 318(a) of the Coastal Zone Man-
agement Act of 1972 (16 U.S.C. 1464(a) (3)), is amended to read as 
follows: 
"(3) such sums, not to exceed $50,000,000 for each of the fiscal 
years ending September 30,1977, and September 30,1978, and not 
to exceed $130,000,000 per fiscal year for each of the fiscal years 
occurring during the period beginning on October 1, 1978, and 
ending September 30, 1988, as may be necessary for grants under 
section 308(b) ;". 
43 use 1331 
note. 
OUTER CONTINENTAL SHELF GRANTS 
SEC. 503. (a) Section 308(c) of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1456a(c)) is amended— 
(1) by inserting "(1)" immediately after "(c)"; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) The Secretary shall make grants imder this paragraph to any 
coastal state which the Secretary finds is likely to be affected by outer 
Continental Shelf energy activities. Such grants shall be used by such 
state to carry and its responsibilities under the Outer Continental 
Shelf Lands Act. The amount of any such grant shall not exceed 80 
per centum of the cost of carrying out such responsibilities,". 
(b) Section 308 (a) (1) of the Coastal Zone Management Act of 1972 
(16 U.S.C. 1456a (a) (1)) is amended— 
(1) in subparagraph (B) thereof, by striking out "subsection 
(c)" and inserting in lieu thereof "subsection (c) (1)"; and 
(2) by redesignating subparagraphs (C) through (F), and any 
references thereto, as subparagraphs (D) through (G), respec-
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 693 
tively, and inserting immediately after subparagraph (B) the 
following new subparagraph: 
" (C) grants, under subsection (c) (2), to coastal states to carry 
out their responsibilities under the Outer Continental Shelf Lands 
Act;". 
(c) Section 308(h) of the Coastal Zone Management Act of 1972 
(16 IJ.S.C. 1456a(h)) is amended by striking out "subsections (c)" 
each place it appears and inserting in lieu thereof "subsections (c) 
(I)"-
(d) Section 308(k)(l) of the Coastal Zone Management Act of 
1972 (16 U.S.C. 1456a(k) (1)) is amended by striking out "and (c)" 
and inserting in lieu thereof "and (c) (1)". 
(e) Section 318(a) of the Coastal Zone Management Act of 1972 
(16 U.S.C. 1464(a)) is amended— 
(1) by redesignating paragraphs (4) through (8), and all ref-
erences thereto, as paragraphs (5) through (9), respectively; and 
(2) by inserting immediately after paragraph (3) the follow-
ing new paragraph: 
"(4) such sums, not to exceed $5,000,000 for each of the fiscal 
years ending September 30, 1979, September 30, 1980, Septem-
ber 30,1981, September 30,1982, and September 30,1983, as may 
be necessary for grants under section 308(c) (2), to remain avail-
able until expended;". 
(f) Section 318(b) of the Coastal Zone Management Act of 1972 
(16 U.S.C. 1464(b)) is amended— 
(1) by striking out "subsection (b)" and inserting in lieu 
thereof "subsections (b) and (c) (2)"; and 
(2) by striking out "subsections (c)" and inserting in lieu 
thereof "subsections (c) (1)". 
43 use 1331 
note. 
Funds, 
availability. 
STATE MANAGEMENT PROGRAM 
SEC. 504. Section 307(c) (3) (B) (ii) of the Coastal Zone Manage-
ment Act of 1972 (16 U.S.C. 1456(c) (3) (B) (ii)) is amended to read 
as follows: 
"(ii) concurrence by such state with such certification is con-
clusively presumed as provided for in subparagraph (A), except 
if such state fails to concur with or object to such certification 
within three months after receipt of its copy of such certification 
and supporting information, such state shall provide the Secre-
tary, the appropriate federal agency, and such person with a 
written statement describing the status of review and the basis 
for further delay in issuing a final decision, and if such statement 
is not so provided, concurrence by such state with such certifica-
, J tion shall be conclusively presumed; or". 
i>. 
TITLE VI—MISCELLANEOUS PROVISIONS 
• 1 iss-i-'v/s 
REVIEW o r SHUT-IN OR FLARING WEIXS 
SEC. 601. (a) In a report submitted within six months after the 43 USC 18f>l. 
date of enactment of this Act, and his annual report thereafter, the 
Secretary of the Interior shall list all shut-in oil and gas wells and 
wells flaring natural gas on leases issued under the Outer Continental 
Shelf Lands Act. Each such report shall be submitted to the Comp- 43 USC 1331 
note. 
Report to 
Comptroller 
General. 
92 STAT. 694 
PUBLIC LAW 95-372—SEPT. 18, 1978 
troUer General and shall indicate why each well is shut-in or flaring 
natural gas, and whether the Secretary intends to require production 
on such a shut-in well or order cessation flaring. 
Report to 
(b) Within six months after receipt of the Secretary's report, the 
Congress. 
Comptroller General shall review and evaluate the methodology used 
by the Secretary in allowing the wells to be shut-in or to flare natural 
gas and submit his findings and recommendations to the Congress. 
REVIEW AND REVISION OF ROYALTY PAYMENTS 
Report to 
SEC. 602. As soon as feasible and no later than ninety days after the 
Congress. 
date of enactment of this Act, and annually thereafter, the Secretaiy 
30 use 237. 
of the Interior shall submit a report or reports to the Congress describ-
ing the extent, during the two-year period preceding such report, of 
delinquent royalty accounts under leases issued under any Act which 
regulates the development of oil and gas on Federal lands, and what 
new auditing, post-auditing, and accounting procedures have been 
adopted to assure accurate and timely payment of royalties and net 
profit shares. Such report or reports shall include any recommenda-
. 
tions for corrective action which the Secretary of the Interior deter-
'*'' 
mines to be appropriate. 
NATURAL GAS DISTRIBUTION 
43 use 1862. 
SEC. 603. (a) The purpose of this section is to encourage expanded 
participation by local distribution companies in acquisition of leases 
and development of natural gas resources on the Outer Continental 
Shelf by facilitating the transportation in interstate commerce of nat-
ural gas, which is produced from a lease located on the Outer Conti-
nental Shelf and owned, in whole or in part, by a local distribution 
company, from such lease to the service area of such local distribution 
company. 
Publication in 
(b) The Federal Energy Regulatory Commission shall, after oppor-
Federal Register, tunity for presentation of written and oral views, promulgate and 
publish in the Federal Register a statement of Commission policy 
which carries out the purpose of this section and sets forth the stand-
ards under which the Commission will consider applications for, and, 
as appropriate, issue certificates of public convenience and necessity, 
15 use 717f. 
pursuant to section 7 of the Natural Gas Act, for the transportation in 
interstate commerce of natural gas, which is produced from a lease 
located on the Outer Continental Shelf and owned, in whole or in part, 
by a local distribution company, from such lease to the service area of 
such local distribution company. Such statement of policy shall spec-
ify the criteria, limitations, or requirements the Commission will 
apply in determing— 
(1) whether the application of any local distribution company 
qualifies for consideration under the statement of policy; and 
(2) whether the public convenience and necessity will be served 
by the issuance of the requested certificate of transportation. 
Such statement of policy shall also set forth the terms or limitations 
on which the Commission may condition, pursuant to section 7 of the 
••-"' 
Natural Gas Act, the issuance of a certificate of transportation under 
such statement of policy. To the maximum extent practicable, such 
statement shall be promulgated and published within one year after 
the date of enactment of this section. 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 695 
(c) For purposes of this section, the term— 
(1) "local distribution company" means any person— 
(A) engaged in the distribution of natural gas at retail, 
including any subsidiary or affiliate thereof engaged in the 
exploration and production of natural gas; and 
(B) regulated, or operated as a public utility, by a State or 
local government or agency thereof; 
(2) "interstate commerce" shall have the same meaning as such 
term has under section 2 (7) of the Natural Gas Act; and 
(3) "Commission" means the Federal Energy Eegulatory 
Commission. 
ANTroiSCRIMINATION 
PROVISIONS 
Definitions. 
15 u s e 717a. 
43 u s e 1863. 
SEC. 604. Each agency or department given responsibility for the 
S
romulgation or enforcement of regulations under this Act or the 
uter Continental Shelf Lands Act shall take such affirmative action 43 USe 1331 et 
as deemed necessary to prohibit all unlawful employment practices and seq. 
to assure that no person shall, on the grounds of race, creed, color, 
national origin, or sex, be excluded from receiving or participating in 
any activity, sale, or employment, conducted pursuant to the provi-
sions of this Act or the Outer Continental Shelf Lands Act. The Rules, 
agency or department shall promulgate such rules as it deems neces-
sary to carry out the purposes of this section, and any rules promul-
gated under this section, whether through agency and department 
provisions or rules, shall be similar to those established and in effect 
under title VI and title VII of the Civil Rights Act of 1964. 
42 use 200(>d, 
2000e. 
SUNSHINE IN 
GOVERNMENT 
43 use 1331 
note. 
SEC. 605. (a) Each officer or employee of the Department of the 43 USe 186^1 
Interior who— 
(1) performs any function or duty under this Act or the Outer 
Continental Shelf Lands Act, as amended by this Act; and 
(2) has any known financial interest in any person who (A) 
applies for or receives any permit or lease under, or (B) is other-
wise subject to the provisions of this Act or the Outer Continental 
Shelf Lands Act, 
shall, beginning on February 1, 1979, annually file with the Secretary 
of the Interior a written statement concerning all such interests held 
by such officer or employee during the preceeding calendar year. Such 
statement shall be available to the public, 
(b) The Secretary of the Interior shall— 
(1) within ninety days after the date of enactment of this Act— 
(A) define the term "known financial interest" for pur-
poses of subsection (a) of this section; and 
(B) establish the methods by which the requirement to file 
written statements specified in subsection (a) of this section 
will be monitored and enforced, including appropriate pro-
visions for the filling by such officers and emplovees of such 
statements and the review by the Secretary of such state-
ments; and 
(2) report to the Congress on June 1 of each calendar year with 
respect to such disclosures and the actions taken in regard thereto 
during the preceding calendar year. 
"Known financial 
interest." 
Report to 
eongress. 
92 STAT. 696 
PUBLIC LAW 95-372—SEPT. 18, 1978 
-mmim-l:,} 
i^) ^^ *
^
^
® rules prescribed in subsection (b) of this section, the Sec-
retary may identity specific positions within the Department of the 
Interior which are of a nonregulatory or nonpolicymaking nature and 
provide that officers or employees occupying such positions shall be 
exempt from the requirements of this section. 
Penalty. 
(d) Any officer or employee who is subject to, and knowingly vio-
lates, this section shall be fined not more than $2,500 or imprisoned not 
more than one year, or both. 
INVESTIGATION OF AVAILABILITY OF OIL AND NATURAL GAS FROM THE 
OUTER CONTINENTAL SHELF 
43 use 1865. 
SEC. 606. (a) The Congress hereby finds that— 
(1) there is a serious lack of adequate basic energy information 
available to the Congress and the Secretary of the Interior with 
respect to the availability of oil and natural gas from the Outer 
H i 
Continental Shelf; 
(2) there is currently an urgent need for such information; 
(3) the existing collection of information by Federal depart-
ments and agencies relevant to the determination of the availabil-
ity of such oil and natural gas is uncoordinated, is jurisdictionally 
eoii.; 
limited in scope, and relies too heavily on unverified information 
from industry sources; 
(4) adequate, reliable, and comprehensive information with 
respect to the availability of such oil and natural gas is essential 
to the national security of the United States; and 
,fe<^ 
(5) this lack of adequate reserve data requires a reexamination 
* 
of past data as well as the acquisition of adequate current data. 
(b) The purpose of this section is to enable the Secretary of the 
Interior and the Congress to gain the best possible knowledge of the 
''^'-- 
status of Outer Continental Shelf oil and natural gas reserves, 
resources, productive capacity, and production available to meet cur-
rent and future energy supply emergencies, to gain accurate knowledge 
•' 
of the potential quantity of oil and natural gas resources which could 
be made available to meet such emergencies, and to aid in establishing 
energy pricing and conservation policies. 
(c) The Secretary of the Interior shall conduct a continuing inves-
tigation, based on data and information which he determines has been 
adequately and independently audited and verified, for the purpose of 
determining the availability of all oil and natural gas produced or 
located on the Outer Continental Shelf. 
(d) The investigation conducted pursuant to this section shall 
include, among other items— 
( l ) ( A ) a determination of the maximum attainable rate of 
^^i^^*^ 
production (MAR) of crude oil and natural gas from significant 
fields on the Outer Continental Shelf; and 
(B) an analysis of whether the actual production has been less 
than the MAR and, if so, the reasons for the differences; 
(2) an estimate of the total discovered crude oil and natural gas 
reserves by fields (including proved and indicated reserves) and 
undiscovered crude oil and natural gas resources (including hypo-
thetical and speculative resources) of the Outer Continental 
Shelf; 
(3) the relationship of any and all such information to the 
requirements of conservation, industry, commerce, and the national 
defense; and 
PUBLIC LAW 95-372—SEPT. 18, 1978 
92 STAT. 697 
Report to 
Congress. 
(4) an independent evaluation of trade association procedures 
for estimating Outer Continental Shelf reserves, ultimate recov-
ery, and productive capacity for years in which trade associations 
made such estimates. In order to provide maximum opportunity 
for evaluation and continuity, the Secretary shall obtain all the 
available data and other records, including a description of the 
methodology and estim;ating procedures, which the trade associa-
tions used in compiling their data with respect to the reserves. 
(e) The Secretary shall, not later than one year after the date of 
enactment of this section, submit an initial report to the Congress. The 
initial report shall include cost estimates for the separate components 
of the continuing investigation and a time schedule for meeting all of 
its specifications. The schedule shall provide for producing all the 
information required in subsections (d) (1) (A), (d) (2), and (d) (3) 
of this section on the day following the first complete calendar year 
after such date of enactment, and every two years thereafter. The Effective dates 
Secretary shall make separate reports on the data acquired pursuant 
to subsection (d) (4) of this section as follows: 
(1) Within six months after the date of enactment of this sec-
tion, a report on the acquisition and details of trade association 
data and information. 
(2) Within twelve months after submission of the report 
required by subsection (e) (1) of this section, an evaluation of the 
trade a,ssociation materials. 
(3) Within twelve months after submission of the report 
required by paragraph (2) of this subsection, a report on the rela-
tionship between trade association data and the new data collected 
under this section. 
(f) The Secretary of the Interior shall consult with the Federal 
Trade Commission regarding categories of information acquired pur-
suant to this section. Notwithstanding any other provision of law, the 
Secretary of the Interior shall, upon request of the Federal Trade 
Commission, make available to such Commission any information 
acquired under this section. 
(g) For purposes of this section, the term— 
(1) "maximum attainable rate of production" or "MAR" means 
the maximum rate of production of crude oil and natural gas 
which may be produced under actual operating conditions with-
out loss of ultimate recovery of crude oil and natural gas; and 
(2) "Outer Continental Shelf" has the meaning given such 
term in section 2(a) of the Outer Continental Shelf Lands Act. 43 USC 1331. 
Federal Trade 
Commission, 
consultation. 
Definitions. 
RECOMMENDATIONS FOR TRAINING PROGRAM 
SEC. 607. Not later than ninety days after the date of enactment of 
this Act, the Secretary of the Interior, in consultation with the Secre-
tary of the Department in which the Coast Guard is operating, shall 
prepare and submit to the Congress a report which sets forth the rec-
ommendations of the Secretary for a program to assure that any 
individual— 
(1) who is employed on any artificial island, installation, or 
other device located on the Outer Continental Shelf; and 
(2) who, as part of such employment, operates, or supervises 
the operation of pollution-prevention equipment, 
is properly trained to operate, or supervise the operation of, such 
equipment, as the case may be. 
Report to 
Congress. 
43 USC 1348 
note. 
92 STAT. 698 
PUBLIC LAW 95-372—SEPT. 18, 1978 
RELATIONSHIP TO EXISTING LAW 
43 use 1866. 
SEC. 608. (a) Except as otherwise expressly provided in this Act, 
nothing in this Act shall be construed to amend, modify, or repeal 
16 use 1451 
any provision of the Coastal Zone Management Act of 1972, the 
°°*®- 
National Environmental Policy Act of 1969, the Mining and Mineral 
f 
2 y SC 4321 
Policy Act of 1970, or any other Act. 
(b) Nothing in this Act or any amendment made by this Act to 
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
or any other Act shall be construed to affect or modify the provisions 
of the Department of Energy Organization Act (42 U.S.C. 7101 et 
seq.) whicn provide for the transferring and vesting of functions to 
and in the Secretary of Energy or any component of the Department 
of Energy. 
Approved September 18, 1978. 
note 
30 u s e 21a note 
LEGISLATIVE HISTORY: 
HOUSE REPORTS No. 95-590 accompanying H.R. 1614 (Ad Hoc Select Committee on 
the Outer Continental Shelf) and No. 95-1474 (Comm. of Confer-
ence). 
SENATE REPORTS No. 95-284 (Comm. on Energy and Natural Resources) and No. 
95-1091 (Comm. of Conference). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): July 14, 15, considered and passed Senate. 
Vol. 124 (1978): Jan. 25, 26, 31, Feb. 1, 2, H.R. 1614 considered and passed 
House; proceedings vacated and S. 9, amended, passed in lieu. 
Aug. 17, House agreed to conference report. 
Aug. 22, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 14, No. 38 (1978): Sept. 18, Presidential statement.