[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6401 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 6401

To promote the fair production of oil and gas on the Outer Continental 
                                 Shelf.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2006

Mr. Melancon (for himself and Mr. Abercrombie) introduced the following 
         bill; which was referred to the Committee on Resources

_______________________________________________________________________

                                 A BILL



To promote the fair production of oil and gas on the Outer Continental 
                                 Shelf.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LEASES, EASEMENTS, AND RIGHTS-OF-WAY ON THE OUTER 
              CONTINENTAL SHELF.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended by adding at the end the following:
    ``(q) Royalty Suspension Provisions.--
            ``(1) In general.--Subject to paragraphs (2) through (4), 
        the Secretary shall agree to a request by any lessee to amend 
        any lease issued as a result of a Central or Western Gulf of 
        Mexico lease sale held during the period beginning on January 
        1, 1998, and ending on December 31, 1999, to incorporate price 
        thresholds applicable to royalty suspension provisions in the 
        amount of $34.73 per barrel (2005 dollars) for oil and for 
        natural gas of $4.34 per million Btu (2005 dollars).
            ``(2) Adjustment.--The oil and natural gas price thresholds 
        established under paragraph (1) shall be adjusted during any 
        calendar year after 2005 by the percentage, if any, by which 
        the implicit price deflator for the gross domestic product as 
        computed and published by the Department of Commerce changed 
        during the preceding calendar year.
            ``(3) New royalty suspension volumes.--After the date of 
        enactment of this subsection, price thresholds shall apply to 
        any royalty suspension volumes granted by the Secretary.
            ``(4) Effective date.--Any amended lease shall impose the 
        new price thresholds effective beginning October 1, 2006.
    ``(r) Conservation of Resources Fees.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection, the Secretary shall establish, by 
        regulation, a conservation of resources fee for producing 
        leases that will apply to new and existing leases which shall 
        be established at $9 per barrel for oil and $1.25 per million 
        Btu for gas (2006 dollars).
            ``(2) Covered areas.--The fee shall only apply to leases 
        issued with deep water royalty relief for which royalties are 
        not being paid when prices exceed $34.73 per barrel for oil and 
        $4.34 per million Btu for natural gas (2005 dollars).
            ``(3) Effective date.--A fee imposed under this subsection 
        shall apply to production that occurs on or after October 1, 
        2006.''.

SEC. 2. COASTAL IMPACT ASSISTANCE PROGRAM.

    Section 31(b) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The'' and inserting the 
                following:
                    ``(A) Fiscal years 2007 through 2010.--The''; and
                    (B) by adding at the end the following:
                    ``(B) Certain royalty revenues.--Notwithstanding 
                section 9, of the amount of any royalty revenues 
                payable to the United States from any lease issued with 
                deep water royalty relief as the result of a Central or 
                Western Gulf of Mexico lease sale held during the 
                period beginning on January 1, 1998, and ending on 
                December 31, 1999, the Secretary of the Treasury shall 
                deposit--
                            ``(i) the amount of the royalty revenues in 
                        a special account in the Treasury, to be 
                        available to the Secretary of the Interior, 
                        without further appropriation, for each of 
                        fiscal years 2007 through 2016, for 
                        disbursement to Gulf producing States and 
                        coastal political subdivisions in accordance 
                        with this section, except that the amount made 
                        available under this clause shall not exceed a 
                        total of $5,450,000,000; and
                            ``(ii) any remainder of the royalty 
                        revenues in the general fund of the Treasury, 
                        to be used for deficit reduction.''; and
            (2) in paragraph (3)(B)--
                    (A) in clause (i), by striking ``and'' after the 
                semicolon at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) the amount of qualified outer 
                        Continental Shelf revenues for each of fiscal 
                        years 2011 through 2016 shall be determined 
                        using qualified outer Continental Shelf 
                        revenues received for fiscal year 2010.''.

SEC. 3. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.

    (a) Buy and Build American.--It is the intention of the Congress 
that this Act, among other things, result in a healthy and growing 
American industrial, manufacturing, transportation, and service sector 
employing the vast talents of America's workforce to assist in the 
development of affordable energy from the Outer Continental Shelf. 
Moreover, the Congress intends to monitor the deployment of personnel 
and material in the Outer Continental Shelf to encourage the 
development of American technology and manufacturing to enable United 
States workers to benefit from this Act by good jobs and careers, as 
well as the establishment of important industrial facilities to support 
expanded access to American resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 4(a)(1) 
of this Act, except insofar as such laws would otherwise apply to 
individuals who have extraordinary ability in the sciences, arts, 
education, or business, which has been demonstrated by sustained 
national or international acclaim, and that''.
                                 <all>