1.
This Act may be cited as the
Offshore Fairness Act of
2005
.
2.
The purposes of this Act are—
(1)
to provide equity to the States of Louisiana, Mississippi, and
Alabama with respect to the seaward boundaries of the States in the Gulf of
Mexico by extending the seaward boundaries from 3 geographical miles to 3
marine leagues if the State meets certain conditions not later than 5 years
after the date of enactment of this Act;
(2)
to convey to the States of Louisiana, Mississippi, and Alabama
the interest of the United States in the submerged land of the outer
Continental Shelf that is located in the extended seaward boundaries of the
States;
(3)
to provide that any mineral leases, easements, rights-of-use, and
rights-of-way issued by the Secretary of the Interior with respect to the
submerged land to be conveyed shall remain in full force and effect; and
(4)
in conveying the submerged land, to ensure that the rights of
lessees, operators, and holders of easements, rights-of-use, and rights-of-way
on the submerged land are protected.
3.
Seaward boundary extension
(a)
Title II of the Submerged Lands Act (43 U.S.C. 1311 et seq.) is
amended—
(1)
by redesignating section 11 as section 12; and
(2)
by inserting after section 10 the following:
11.
Extension of seaward boundaries of the states of louisiana,
mississippi, and alabama
(a)
In this section:
(1)
The term existing interest
means any lease,
easement, right-of-use, or right-of-way on, or for any natural resource or
minerals underlying, the expanded submerged land that is in existence on the
date of the conveyance of the expanded submerged land to the State under
subsection (b)(1).
(2)
Expanded seaward boundary
The term expanded seaward boundary
means the
seaward boundary of the State that is 3 marine leagues seaward of the coast
line of the State as of the day before the date of enactment of this
section.
(3)
The term expanded submerged land
means the area
of the outer Continental Shelf that is located between 3 geographical miles and
3 marine leagues seaward of the coast line of the State as of the day before
the date of enactment of this section.
(4)
The term interest
owner
means any person that owns or holds an existing interest in the
expanded submerged land or portion of an existing interest in the expanded
submerged land.
(5)
The term Secretary
means the Secretary of the
Interior.
(6)
The term State
means each of the States of
Louisiana, Mississippi, and Alabama.
(b)
Conveyance of expanded submerged land
(1)
If a State demonstrates to the satisfaction of the Secretary
that the conditions described in paragraph (2) will be met, the Secretary
shall, subject to valid existing rights and subsection (c), convey to the State
the interest of the United States in the expanded submerged land of the
State.
(2)
A conveyance under paragraph (1) shall be subject to the
condition that—
(A)
on conveyance of the interest of the United States in the
expanded submerged land to the State under paragraph (1)—
(i)
the Governor of the State (or a delegate of the Governor) shall
exercise the powers and duties of the Secretary under the terms of any existing
interest, subject to the requirement that the State and the officers of the
State may not exercise the powers to impose any burden or requirement on any
interest owner that is more onerous or strict than the burdens or requirements
imposed under applicable Federal law (including regulations) on owners or
holders of the same type of lease, easement, right-of-use, or right-of-way on
the outer Continental Shelf seaward of the expanded submerged land; and
(ii)
the State shall not impose
any administrative or judicial penalty or sanction on any interest owner that
is more severe than the penalty or sanction under Federal law (including
regulations) applicable to owners or holders of leases, easements,
rights-of-use, or rights-of-way on the outer Continental Shelf seaward of the
expanded submerged lands for the same act, omission, or violation;
(B)
not later than 5 years after the date of enactment of this
section—
(i)
the State shall enact laws or promulgate regulations with
respect to the environmental protection, safety, and operations of any platform
pipeline in existence on the date of conveyance to the State under paragraph
(1) that is affixed to or above the expanded submerged land that impose the
same requirements as Federal law (including regulations) applicable to a
platform pipeline on the outer Continental Shelf seaward of the expanded
submerged land; and
(ii)
the State shall enact laws or promulgate regulations for
determining the value of oil, gas, or other mineral production from existing
interests for royalty purposes that establish the same requirements as the
requirements under Federal law (including regulations) applicable to Federal
leases for the same minerals on the outer Continental Shelf seaward of the
expanded submerged land; and
(C)
the State laws and regulations enacted or promulgated under
subparagraph (B) shall provide that if Federal law (including regulations)
applicable to leases, easements, rights-of-use, or rights-of-way on the outer
Continental Shelf seaward of the expanded submerged land are modified after the
date on which the State laws and regulations are enacted or promulgated, the
State laws and regulations applicable to existing interests will be modified to
reflect the change in Federal laws (including regulations).
(c)
(1)
Mineral lease or unit divided
(A)
If any existing Federal oil and gas or other mineral lease or
unit would be divided by the expanded seaward boundary of a State, the interest
of the United States in the leased minerals underlying the portion of the lease
or unit that lies within the expanded submerged boundary shall not be
considered to be conveyed to the State until the date on which the lease or
unit expires or is relinquished by the United States.
(B)
Applicability for other purposes
Notwithstanding
subparagraph (A), the expanded seaward boundary of a State shall be the seaward
boundary of the State for all other purposes, including the distribution of
revenues under section 8(g)(2) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g)(2)).
(2)
Laws and regulations not sufficient
If the Secretary determines that any law or regulation enacted
or promulgated by a State under subparagraph (B) of subsection (b)(2) does not
meet the requirements of that subparagraph, the Secretary shall not convey the
expanded submerged land to the State.
(d)
Interest issued or granted by the state
This section does not apply to any interest in the expanded
submerged land that a State issues or grants after the date of conveyance of
the expanded submerged land to the State under subsection (b)(1).
(e)
(1)
By accepting conveyance of the expanded submerged land, the
State agrees to indemnify the United States for any liability to any interest
owner for the taking of any property interest or breach of contract
from—
(A)
the conveyance of the expanded submerged land to the State;
or
(B)
the State’s administration of any existing interest under
subsection (b)(2)(A)(i).
(2)
Deduction from oil and gas leasing revenues
The Secretary may deduct from the amounts otherwise payable to
the State under section 8(g)(2) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g)(2)) the amount of any final nonappealable judgment for a taking
or breach of contract described in paragraph (1).
.
(b)
Section 2(b) of the Submerged Lands Act (43 U.S.C. 1301(b)) is
amended by striking section 4 hereof
and inserting
section 4 or 11
.