I 111th CONGRESS 1st Session H. R. 1143 IN THE HOUSE OF REPRESENTATIVES February 24, 2009 Mr. Poe of Texas introduced the following bill; which was referred to the Committee on Natural Resources A BILL To achieve greater national energy independence by limiting presidential withdrawals of offshore lands from disposition for exploration, development, or production of oil and gas, to authorize States to petition for authorization to conduct offshore oil and natural gas exploration and extraction in any area that is within 50 miles of the coastline of the State and within the seaward lateral boundaries of the State extended, to share offshore oil and gas revenues with States, and for other purposes.

1.

Short title

This Act may be cited as the Developing Resources Immediately and Long-Term through Leases on Our Nation’s Offshore Waters Act of 2009 or the DRILL NOW Act of 2009.

2.

Revocation of existing Presidential authority

Section 12(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1341(a)) is amended— (1)by striking the President and inserting (1) Except as provided in paragraph (2), the President; and (2)by adding at the end the following: , are hereby revoked. (2)(A)The President may not withdraw any lands of the outer Continental Shelf from disposition for exploration, development, or production of oil and gas, except as the President determines necessary for national security purposes. (B)This paragraph shall not affect any withdrawal in effect immediately before the enactment of the DRILL NOW Act of 2009 .

3.

Availability of certain areas for leasing

Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding at the end the following: (q)

Availability of Certain Areas for Leasing

(1)

Definitions

In this subsection: (A)

Coastal zone

The term coastal zone has the meaning that term has in section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453). (B)

Governor

The term Governor means the Governor of a State. (C)

Qualified revenues

The term qualified revenues means 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 the DRILL NOW Act of 2009 for natural gas exploration and extraction activities authorized by the Secretary under this subsection. (2)

Petition

(A)

In general

The Governor of a State may submit to the Secretary a petition requesting that the Secretary issue leases authorizing the conduct of oil and natural gas exploration and extraction activities in any area that is within 50 miles of the coastline of the State and within the lateral seaward boundaries of the State extended. (B)

Contents

In any petition under subparagraph (A), the Governor shall include a detailed plan of the proposed exploration and extraction activities, as applicable. (3)

Action by Secretary

(A)

In general

Subject to subparagraphs (B), (C), and (D), as soon as practicable after the date of receipt of a petition under paragraph (2), the Secretary shall approve or deny the petition. (B)

Requirements for exploration and extraction

The Secretary shall not approve a petition submitted under paragraph (2)(A) unless the State enacts a statute authorizing the issuance of leases for exploration and extraction of oil and natural gas in the coastal zone of the State. (C)

Consistency with legislation

The plan provided in the petition under paragraph (2)(B) shall be consistent with the statute described in subparagraph (B). (D)

Conflicts with military operations and national security

The Secretary shall not approve a petition for a drilling activity under this paragraph— (i)if the drilling activity would conflict with any military operation or national security, as determined by the President; or (ii)in any area that is withdrawn under section 12(a) for national security purposes. (4)

Disposition of revenues

Notwithstanding section 9, for each applicable fiscal year, the Secretary of the Treasury— (A)shall deposit 30 percent of qualified revenues in a separate account in the Treasury, which— (i)shall be known as the Clean and Alternative Energy Fund; and (ii)shall be available to the Secretary of Energy for making grants for research and development of clean and alternative energy; (B)in the case of a lease tract any portion of which is located within 50 miles of the coastline of one or more States that have a portion of such leased tract within the seaward lateral boundaries of such State extended— (i)shall pay, in accordance with clause (ii), an amount equal to 40 percent of qualified revenues under such lease to the States with respect to which the lease tract is so located and that have enacted a statute that establishes a plan for expenditure of those funds; and (ii)shall pay to each such State a portion of such amount that is proportional to the portion of the lease tract that is so located with respect to the State; and (C)shall deposit the remainder of qualified revenues in the general fund of the Treasury. (r)

Payment of revenues under certain existing leases

Of the funds that would be received by the United States as royalties under any Federal oil and gas lease of an area on the outer Continental Shelf located within 50 miles of the coastline of the State of Texas, Louisiana, Mississippi, or Alabama that is in effect on the date of enactment of the DRILL NOW Act of 2009 the Secretary of the Treasury— (1)shall deposit 30 percent in the Clean and Alternative Energy Fund established under subsection (q)(4)(A); (2)in the case of a lease tract any portion of which is located within 50 miles of the coastline of one or more such States that have a portion of such leased tract within the seaward lateral boundaries of such State extended— (A)shall pay, in accordance with subparagraph (B), an amount equal to 40 percent to the States with respect to which the lease tract is so located and that have enacted a statute that establishes a plan for expenditure of those funds; and (B)shall pay to each such State a portion of such amount that is proportional to the portion of the leased tract that is so located with respect to the State; and (3)shall deposit the remainder in the general fund of the Treasury. .