II Calendar No. 517 111th CONGRESS 2d Session H. R. 5716 IN THE SENATE OF THE UNITED STATES July 22, 2010 Received August 5, 2010 Read twice and placed on the calendar AN ACT To provide for enhancement of existing efforts in support of research, development, demonstration, and commercial application activities to advance technologies for the safe and environmentally responsible exploration, development, and production of oil and natural gas resources.

1.

Short title

This Act may be cited as the Safer Oil and Natural Gas Drilling Technology Research and Development Act.

2.

Subtitle amendment

Subtitle J of title IX of the Energy Policy Act of 2005 (42 U.S.C. 16371 et seq.) is amended in the subtitle heading by striking Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources and inserting Safer Oil and Natural Gas Drilling Technology Research and Development Program.

3.

Safer oil and natural gas drilling technology research and development program

(a)

Program authority

Section 999A of the Energy Policy Act of 2005 (42 U.S.C. 16371) is amended— (1)in subsection (a)— (A)by striking ultra-deepwater and inserting deepwater; and (B)by inserting well control and accident prevention, after safe operations,; (2)in subsection (b)— (A)by inserting , accident prevention and mitigation, after improving safety; (B)by striking paragraph (1) and inserting the following: (1)Deepwater architecture and technology, including those for drilling to formations in water depths greater than 1,000 feet. ; and (C)by striking paragraph (4) and inserting the following: (4)Complementary research carried out by the Department. ; (3)in subsection (d)— (A)in the subsection heading, by striking National Energy Technology Laboratory and inserting Department of Energy; and (B)by striking National Energy Technology Laboratory and inserting Office of Fossil Energy of the Department; (4)in subsection (e)— (A)in the subsection heading, by striking Secretary of the Interior and inserting Other Federal Agencies; and (B)by inserting and other agencies as appropriate, including those serving on, and collaborating with, the Interagency Coordinating Committee on Oil Pollution Research as established under section 7001 of the Oil Pollution Act of 1990 (33 U.S.C. 2761(a)) after Secretary of the Interior; and (5)by adding at the end the following: (f)

Partnerships

In carrying out the program under this subtitle, the Secretary shall seek to establish partnerships with eligible research performers, as described by section 999E, to undertake research and development not likely otherwise to be undertaken in the absence of support from the program. . (b)

Program elements

Section 999B of the Energy Policy Act of 2005 (42 U.S.C. 16372) is amended— (1)in the section heading, by striking Ultra-deepwater and unconventional onshore natural gas and other petroleum and inserting Safer oil and natural gas drilling technology; (2)by amending subsection (a) to read as follows: (a)

In general

The Secretary shall carry out the activities under section 999A to maximize the benefits of natural gas and other petroleum resources of the United States by advancing the safe and environmentally responsible exploration, development, and production of those resources. ; (3)in subsection (c)(1)— (A)by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and (B)by inserting after subparagraph (C) the following: (D)select projects on a competitive basis; ; (4)in subsection (c)(3)(A)(ii), by striking under subsection (f)(4); (5)in subsection (d)— (A)in paragraph (6), by striking ultra-deepwater and inserting deepwater; and (B)by striking paragraph (7) and inserting the following: (7)

Focus areas for awards

(A)

Deepwater resources

Awards from allocations under section 999H(d)(1) shall focus on research, development, demonstration, and commercial application activities in areas that include— (i)technologies and systems aimed at improving operational safety and reducing potential environmental impacts of deepwater exploration and production activities, including— (I)wellbore integrity, well control, and blowout prevention; (II)capture and containment of oil at or near the wellhead; and (III)expanding operational capabilities and efficiency of remotely operated devices and mechanics; (ii)safe and environmentally responsible deepwater exploration and production technologies, integrated systems, and architectures for enhancing oil and natural gas drilling and recovery, including under extreme conditions; (iii)methods and technologies for severe weather and ocean surface condition preparedness; (iv)utilization of exploration and production methods and materials that reduce the potential impact of such activities on the environment; and (v)other areas as determined appropriate by the Secretary. (B)

Unconventional onshore resources

Awards from allocations under section 999H(d)(2) shall focus on research, development, demonstration, and commercial application activities in areas that include— (i)advanced coalbed methane, deep drilling, natural gas production from tight sands, natural gas production from gas shales, stranded gas, innovative exploration and production techniques, and enhanced recovery techniques; (ii)increased efficiency of energy use in exploration and production activities; (iii)utilization of exploration and production methods and materials that reduce the potential impact of such activities on the environment; (iv)recovery, utilization, reduction, and improved management of produced water from exploration and production activities; and (v)accident prevention and mitigation of unconventional natural gas and other petroleum resources exploration and production. (C)

Small producers

Awards from allocations under section 999H(d)(3) shall be made to consortia consisting of small producers or organized primarily for the benefit of small producers, and shall focus on areas that include— (i)safety and accident prevention, environmental mitigation, waste reduction, reduction of energy use, and well control and systems integrity; (ii)complex geology involving rapid changes in the type and quality of the oil and gas reserves across the reservoir; (iii)low reservoir pressure and unconventional natural gas reservoirs in coalbeds, deep reservoirs, tight sands, or shales; and (iv)advancing energy efficient, safe, and environmentally responsible production of unconventional oil reservoirs in tar sands and oil shales. (D)

Safety, and accident prevention and mitigation, technology research and development by the department

Awards from allocations under section 999H(d)(4) shall focus on safety, and accident prevention and mitigation, research, development, demonstration, and commercial application activities in areas that may include— (i)improved technologies and best management practices for enhanced well integrity including— (I)cementing; (II)casing; (III)wellbore sealant technologies; (IV)well-plugging and abandonment; (V)improvement and standardization of blowout prevention devices; (VI)actuation and pressure testing; and (VII)other well control activities; (ii)research to aid in the development of industry best practices and standards for workforce training, design of safe workplace environments, and safety related decisionmaking processes, including by drawing on existing research into human factors and safety related practices in fields such as the nuclear energy, aviation, and automotive industries; (iii)secondary control systems to activate blowout prevention devices and terminate well-flow, including— (I)deadman switches; (II)automatic shears; and (III)remote acoustic switches; (iv)technologies and methods for accident mitigation, including— (I)capture, containment, or dispersing of oil at or near the wellhead; (II)estimating flow rate; (III)diagnostic sensors to determine equipment malfunction; and (IV)procedures to terminate flow; (v)continuing ongoing efforts, including in resource assessment and characterization, and in simulation of safe and effective drilling under extreme conditions, including high temperatures and pressures; (vi)development of methodologies for risk management decisionmaking, including comparative risk analysis and quantitative risk assessment of potential for failure in the technologies, management practices, and systems studies under this subsection; and (vii)other activities as described in this paragraph or as determined appropriate by the Secretary. ; (6)in subsection (e)— (A)in paragraph (2)— (i)in the second sentence of subparagraph (A), by inserting to the Secretary for review after submit; and (ii)in the first sentence of subparagraph (B), by striking Ultra-Deepwater and all that follows through and such Advisory Committees and inserting Program Advisory Committee established under section 999D(a), and the Advisory Committee; (B)in paragraph (4)— (i)by striking and at the end of subparagraph (A); (ii)by striking the period at the end of subparagraph (B) and inserting ; and; and (iii)by adding at the end the following new subparagraph: (C)a summary of ongoing and planned activities aimed at improving operational safety and reducing potential environmental impacts of exploration and production. ; and (C)by adding at the end the following: (6)

Research findings and recommendations for implementation

The Secretary shall publish in the Federal Register an annual report on the research findings of the program carried out under this section and any recommendations for implementation that the Secretary determines to be necessary. ; (7)in subsection (f)(2), by inserting In carrying out this subsection, the Secretary shall ensure that safety and accident prevention and mitigation be regularly included as specific focus areas for solicitations. after consortium.; (8)in subsection (i)— (A)in the subsection heading, by striking United States Geological Survey and inserting Department of the Interior; and (B)by striking , through the United States Geological Survey,; and (9)in subsection (j), by striking National Energy Technology Laboratory and inserting Office of Fossil Energy of the Department.

4.

Program advisory committee

Section 999D of the Energy Policy Act of 2005 (42 U.S.C. 16374) is amended to read as follows:

999D.

Program advisory committee

(a)

Establishment

Not later than 90 days after the date of enactment of the Safer Oil and Natural Gas Drilling Technology Research and Development Act, the Secretary shall establish an advisory committee to be known as the Program Advisory Committee (referred to in this section as the Advisory Committee). (b)

Membership

(1)

In general

The Advisory Committee shall be composed of members appointed by the Secretary, each of whom shall be qualified by education, training, and experience to evaluate scientific and technical information relevant to the research, development, and demonstration under this subtitle. Members shall include— (A)individuals with extensive research experience or operational knowledge of oil and natural gas exploration and production; (B)individuals broadly representative of the affected interests in oil and natural gas production, including interests in environmental protection and operational safety; (C)State regulatory agency representatives; and (D)other individuals, as determined by the Secretary. (2)

Limitations

(A)

In general

The Advisory Committee shall not include individuals who are board members, officers, or employees of the program consortium. (B)

Categorical representation

In appointing members of the Advisory Committee, the Secretary shall ensure that no class of individuals described in any of subparagraphs (B), (C), or (D) of paragraph (1) comprises more than 1/3 of the membership of the Advisory Committee. (c)

Subcommittees

The Advisory Committee may establish subcommittees or ad hoc working groups for the research focus areas described in section 999B(d)(7). (d)

Duties

The Advisory Committee shall— (1)advise the Secretary on the development and implementation of programs under this subtitle; and (2)carry out section 999B(e)(2)(B). (e)

Compensation

A member of the Advisory Committee shall serve without compensation but shall be entitled to receive travel expenses in accordance with subchapter I of chapter 57 of title 5, United States Code. (f)

Prohibition

The Advisory Committee shall not make recommendations on funding awards to particular consortia or other entities, or for specific projects.

.

5.

Definitions

Section 999G of the Energy Policy Act of 2005 (42 U.S.C. 16377) is amended— (1)in paragraph (1), by striking 200 but less than 1,500 meters and inserting 1,000 feet; (2)by striking paragraphs (8), (9), and (10); (3)by redesignating paragraphs (2) through (7) and (11) as paragraphs (4) through (9) and (10), respectively; and (4)by inserting after paragraph (1) the following: (2)

Deepwater architecture

The term deepwater architecture means the integration of technologies for the safe and environmentally responsible exploration for, or production of, natural gas or other petroleum resources located at deepwater depths. (3)

Deepwater technology

The term deepwater technology means a discrete technology that is specially suited to address 1 or more challenges associated with the safe and environmentally responsible exploration for, or production of, natural gas or other petroleum resources located at deepwater depths. .

6.

Funding

Section 999H of the Energy Policy Act of 2005 (42 U.S.C. 16378) is amended— (1)in the first sentence of subsection (a) by striking Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund and inserting Safer Oil and Natural Gas Drilling Technology Research and Development Fund; (2)in subsection (d)— (A)in paragraph (1), by striking 35 percent and inserting 32.5 percent; (B)in paragraph (2), by striking 32.5 percent and inserting 25 percent; and (C)in paragraph (4)— (i)by striking 25 percent and inserting 35 percent; and (ii)by striking contract management, and all that follows through the period at the end and inserting and contract management.; (3)in subsection (f), by striking Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund and inserting Safer Oil and Natural Gas Drilling Technology Research and Development Fund; and (4)at the end of the section, by inserting the following new subsection: (g)

Coordination and nonduplication

The Secretary shall ensure, to the maximum extent practicable, that the research activities carried out by the consortium funded under paragraphs (1), (2), and (3) of subsection (d), and the research activities carried out by the Department of Energy as funded by subsection (d)(4), shall be coordinated and not duplicative of one another. .

7.

Conforming amendments

The table of contents of the Energy Policy Act of 2005 is amended— (1)by amending the item relating to subtitle J of title IX to read as follows: Subtitle J—Safer Oil and Natural Gas Drilling Technology Research and Development Program ; (2)by amending the item relating to section 999B to read as follows: Sec. 999B. Safer Oil and Natural Gas Drilling Technology Research and Development Program. ; and(3)by amending the item relating to section 999D to read as follows: Sec. 999D. Program Advisory Committee. .

Passed the House of Representatives July 21, 2010. Lorraine C. Miller, Clerk. August 5, 2010 Read twice and placed on the calendar