1.This Act may be cited as the
Gulf of Mexico Energy Security Act of
2006
.
2.In this Act:
(1)The term 181 Area means the area identified in
map 15, page 58, of the Proposed Final Outer Continental Shelf Oil and Gas
Leasing Program for 1997–2002, dated August 1996, of the Minerals Management
Service, available in the Office of the Director of the Minerals Management
Service, excluding the area offered in OCS Lease Sale 181, held on December 5,
2001.
(2)The term 181 South Area means any area—
(A)located—
(i)south of the 181
Area;
(ii)west of the
Military Mission Line; and
(iii)in the Central
Planning Area;
(B)excluded from the
Proposed Final Outer Continental Shelf Oil and Gas Leasing Program for
1997–2002, dated August 1996, of the Minerals Management Service; and
(C)included in the
areas considered for oil and gas leasing, as identified in map 8, page 37 of
the document entitled Draft Proposed Program Outer Continental Shelf Oil
and Gas Leasing Program 2007–2012
, dated February 2006.
(3)The term bonus or royalty credit
means a legal instrument or other written documentation, or an entry in an
account managed by the Secretary, that may be used in lieu of any other
monetary payment for—
(A)a bonus bid for a
lease on the outer Continental Shelf; or
(B)a royalty due on
oil or gas production from any lease located on the outer Continental
Shelf.
(4)The term Central Planning Area means
the Central Gulf of Mexico Planning Area of the outer Continental Shelf, as
designated in the document entitled Draft Proposed Program Outer
Continental Shelf Oil and Gas Leasing Program 2007–2012
, dated February
2006.
(5)The term Eastern Planning Area means
the Eastern Gulf of Mexico Planning Area of the outer Continental Shelf, as
designated in the document entitled Draft Proposed Program Outer
Continental Shelf Oil and Gas Leasing Program 2007–2012
, dated February
2006.
(6)The term 2002–2007 planning area means
any area—
(A)located
in—
(i)the
Eastern Planning Area, as designated in the Proposed Final Outer Continental
Shelf Oil and Gas Leasing Program 2002–2007, dated April 2002, of the Minerals
Management Service;
(ii)the Central
Planning Area, as designated in the Proposed Final Outer Continental Shelf Oil
and Gas Leasing Program 2002–2007, dated April 2002, of the Minerals Management
Service; or
(iii)the Western
Planning Area, as designated in the Proposed Final Outer Continental Shelf Oil
and Gas Leasing Program 2002–2007, dated April 2002, of the Minerals Management
Service; and
(B)not located
in—
(i)an
area in which no funds may be expended to conduct offshore preleasing, leasing,
and related activities under sections 104 through 106 of the Department of the
Interior, Environment, and Related Agencies Appropriations Act, 2006 (Public
Law 109–54; 119 Stat. 521) (as in effect on August 2, 2005);
(ii)an
area withdrawn from leasing under the Memorandum on Withdrawal of
Certain Areas of the United States Outer Continental Shelf from Leasing
Disposition
, from 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998;
or
(iii)the 181 Area or
181 South Area.
(7)The term Gulf producing State means each of
the States of Alabama, Louisiana, Mississippi, and Texas.
(8)The term Military Mission Line means
the north-south line at 86°41′ W. longitude.
(9)Qualified outer
Continental Shelf revenues
(A)The term qualified outer Continental Shelf
revenues means—
(i)in
the case of each of fiscal years 2007 through 2016, all rentals, royalties,
bonus bids, and other sums due and payable to the United States from leases
entered into on or after the date of enactment of this Act for—
(I)areas in the 181
Area located in the Eastern Planning Area; and
(II)the 181 South
Area; and
(ii)in
the case of fiscal year 2017 and each fiscal year thereafter, all rentals,
royalties, bonus bids, and other sums due and payable to the United States
received on or after October 1, 2016, from leases entered into on or after the
date of enactment of this Act for—
(I)the 181
Area;
(II)the 181 South
Area; and
(III)the 2002–2007
planning area.
(B)The
term qualified outer Continental Shelf revenues does not
include—
(i)revenues from the
forfeiture of a bond or other surety securing obligations other than royalties,
civil penalties, or royalties taken by the Secretary in-kind and not sold;
or
(ii)revenues
generated from leases subject to section 8(g) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(g)).
(10)Coastal
political subdivisionThe term coastal political
subdivision means a political subdivision of a Gulf producing State any
part of which political subdivision is—
(A)within the
coastal zone (as defined in section 304 of the Coastal Zone Management Act of
1972 (16 U.S.C. 1453)) of the Gulf producing State as of the date of enactment
of this Act; and
(B)not more than 200
nautical miles from the geographic center of any leased tract.
(11)The
term Secretary means the Secretary of the Interior.
3.Offshore oil and gas
leasing in 181 Area and 181 South Area of Gulf of Mexico
(a)Except as provided in section 4, the Secretary shall offer
the 181 Area for oil and gas leasing pursuant to the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.) as soon as practicable, but not later than 1
year, after the date of enactment of this Act.
(b)181 South Area
lease saleThe Secretary shall offer the 181 South Area for oil
and gas leasing pursuant to the Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.) as soon as practicable after the date of enactment of this
Act.
(c)The 181 Area and 181 South Area shall be offered for
lease under this section notwithstanding the omission of the 181 Area or the
181 South Area from any outer Continental Shelf leasing program under section
18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344).
(d)Section 105 of the Department of the Interior,
Environment, and Related Agencies Appropriations Act, 2006 (Public Law 109–54;
119 Stat. 522) is amended by inserting (other than the 181 South Area
(as defined in section 2 of the Gulf of
Mexico Energy Security Act of 2006))
after lands
located outside Sale 181
.
4.Moratorium on
oil and gas leasing in certain areas of Gulf of Mexico
(a)Effective during the period beginning on the date of
enactment of this Act and ending on June 30, 2022, the Secretary shall not
offer for leasing, preleasing, or any related activity—
(1)any area east of
the Military Mission Line in the Gulf of Mexico;
(2)any area in the
Eastern Planning Area that is within 125 miles of the coastline of the State of
Florida; or
(3)any area in the
Central Planning Area that is—
(A)within—
(i)the
181 Area; and
(ii)100 miles of the
coastline of the State of Florida; or
(B)(i)outside the 181
Area;
(ii)east of the western edge of the
Pensacola Official Protraction Diagram (UTM X coordinate 1,393,920 (NAD 27
feet)); and
(iii)within 100 miles of the coastline
of the State of Florida.
(b)Notwithstanding subsection (a), the United States
reserves the right to designate by and through the Secretary of Defense, with
the approval of the President, national defense areas on the outer Continental
Shelf pursuant to section 12(d) of the Outer Continental Shelf Lands Act (43
U.S.C. 1341(d)).
(c)Exchange of
certain leases
(1)The Secretary shall permit any person that, as of the
date of enactment of this Act, has entered into an oil or gas lease with the
Secretary in any area described in paragraph (2) or (3) of subsection (a) to
exchange the lease for a bonus or royalty credit that may only be used in the
Gulf of Mexico.
(2)Valuation of
existing leaseThe amount of the bonus or royalty credit for a
lease to be exchanged shall be equal to—
(A)the amount of the
bonus bid; and
(B)any rental paid
for the lease as of the date the lessee notifies the Secretary of the decision
to exchange the lease.
(3)No bonus or royalty credit may be used under this
subsection in lieu of any payment due under, or to acquire any interest in, a
lease subject to the revenue distribution provisions of section 8(g) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)).
(4)Not
later than 1 year after the date of enactment of this Act, the Secretary shall
promulgate regulations that shall provide a process for—
(A)notification to
the Secretary of a decision to exchange an eligible lease;
(B)issuance of bonus
or royalty credits in exchange for relinquishment of the existing lease;
(C)transfer of the
bonus or royalty credit to any other person; and
(D)determining the
proper allocation of bonus or royalty credits to each lease interest
owner.
5.Disposition of
qualified outer Continental Shelf revenues from 181 Area, 181 South Area, and
2002–2007 planning areas of Gulf of Mexico
(a)Notwithstanding section 9 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1338) and subject to the other provisions of this section,
for each applicable fiscal year, the Secretary of the Treasury shall
deposit—
(1)50 percent of
qualified outer Continental Shelf revenues in the general fund of the Treasury;
and
(2)50 percent of
qualified outer Continental Shelf revenues in a special account in the Treasury
from which the Secretary shall disburse—
(A)75 percent to
Gulf producing States in accordance with subsection (b); and
(B)25 percent to
provide financial assistance to States in accordance with section 6 of the
Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460l–8), which shall be considered
income to the Land and Water Conservation Fund for purposes of section 2 of
that Act (16 U.S.C. 460l–5).
(b)Allocation
among Gulf producing States and coastal political subdivisions
(1)Allocation
among Gulf producing States for fiscal years 2007 through 2016
(A)Subject to
subparagraph (B), effective for each of fiscal years 2007 through 2016, the
amount made available under subsection (a)(2)(A) shall be allocated to each
Gulf producing State in amounts (based on a formula established by the
Secretary by regulation) that are inversely proportional to the respective
distances between the point on the coastline of each Gulf producing State that
is closest to the geographic center of the applicable leased tract and the
geographic center of the leased tract.
(B)The amount allocated to a Gulf producing State each
fiscal year under subparagraph (A) shall be at least 10 percent of the amounts
available under subsection (a)(2)(A).
(2)Allocation
among Gulf producing States for fiscal year 2017 and thereafter
(A)Subject to
subparagraphs (B) and (C), effective for fiscal year 2017 and each fiscal year
thereafter—
(i)the
amount made available under subsection (a)(2)(A) from any lease entered into
within the 181 Area or the 181 South Area shall be allocated to each Gulf
producing State in amounts (based on a formula established by the Secretary by
regulation) that are inversely proportional to the respective distances between
the point on the coastline of each Gulf producing State that is closest to the
geographic center of the applicable leased tract and the geographic center of
the leased tract; and
(ii)the amount made available under subsection
(a)(2)(A) from any lease entered into within the 2002–2007 planning area shall
be allocated to each Gulf producing State in amounts that are inversely
proportional to the respective distances between the point on the coastline of
each Gulf producing State that is closest to the geographic center of each
historical lease site and the geographic center of the historical lease site,
as determined by the Secretary.
(B)The amount allocated to a Gulf producing State each
fiscal year under subparagraph (A) shall be at least 10 percent of the amounts
available under subsection (a)(2)(A).
(C)
(i)Subject to clause (ii), for purposes of subparagraph
(A)(ii), the historical lease sites in the 2002–2007 planning area shall
include all leases entered into by the Secretary for an area in the Gulf of
Mexico during the period beginning on October 1, 1982 (or an earlier date if
practicable, as determined by the Secretary), and ending on December 31,
2015.
(ii)Effective
January 1, 2022, and every 5 years thereafter, the ending date described in
clause (i) shall be extended for an additional 5 calendar years.
(3)Payments to
coastal political subdivisions
(A)The Secretary shall pay 20 percent of the allocable share
of each Gulf producing State, as determined under paragraphs (1) and (2), to
the coastal political subdivisions of the Gulf producing State.
(B)The
amount paid by the Secretary to coastal political subdivisions shall be
allocated to each coastal political subdivision in accordance with
subparagraphs (B), (C), and (E) of section 31(b)(4) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1356a(b)(4)).
(c)The
amounts required to be deposited under paragraph (2) of subsection (a) for the
applicable fiscal year shall be made available in accordance with that
paragraph during the fiscal year immediately following the applicable fiscal
year.
(d)
(1)Subject to paragraph (2), each Gulf producing State and
coastal political subdivision shall use all amounts received under subsection
(b) in accordance with all applicable Federal and State laws, only for 1 or
more of the following purposes:
(A)Projects and
activities for the purposes of coastal protection, including conservation,
coastal restoration, hurricane protection, and infrastructure directly affected
by coastal wetland losses.
(B)Mitigation of
damage to fish, wildlife, or natural resources.
(C)Implementation of
a federally-approved marine, coastal, or comprehensive conservation management
plan.
(D)Mitigation of the
impact of outer Continental Shelf activities through the funding of onshore
infrastructure projects.
(E)Planning
assistance and the administrative costs of complying with this section.
(2)Not
more than 3 percent of amounts received by a Gulf producing State or coastal
political subdivision under subsection (b) may be used for the purposes
described in paragraph (1)(E).
(e)Amounts
made available under subsection (a)(2) shall—
(1)be made
available, without further appropriation, in accordance with this
section;
(2)remain available
until expended; and
(3)be in addition to
any amounts appropriated under—
(A)the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.);
(B)the
Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460l–4 et seq.); or
(C)any other
provision of law.
(f)Limitations on
amount of distributed qualified outer Continental Shelf revenues
(1)Subject to paragraph
(2), the total amount of qualified outer Continental Shelf revenues made
available under subsection (a)(2) shall not exceed $500,000,000 for each of
fiscal years 2016 through 2055.
(2)For
the purpose of paragraph (1), for each of fiscal years 2016 through 2055,
expenditures under subsection (a)(2) and shall be net of receipts from that
fiscal year from any area in the 181 Area in the Eastern Planning Area and the
181 South Area.
(3)If paragraph (1)
limits the amount of qualified outer Continental Shelf revenue that would be
paid under subparagraphs (A) and (B) of subsection (a)(2)—
(A)the Secretary shall reduce the amount of
qualified outer Continental Shelf revenue provided to each recipient on a pro
rata basis; and
(B)any remainder of the qualified outer
Continental Shelf revenues shall revert to the general fund of the
Treasury.
July 21, 2006
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