I 111th CONGRESS 2d Session H. R. 5973 IN THE HOUSE OF REPRESENTATIVES July 29, 2010 Mr. Poe of Texas (for himself, Mr. Olson, Mr. Bright, Mr. Paul, Mr. Scalise, Mr. Bonner, Mr. Barton of Texas, and Mr. Cao) introduced the following bill; which was referred to the Committee on Natural Resources A BILL To amend the Outer Continental Shelf Lands Act and the Gulf of Mexico Energy Security Act of 2006 to increase the percentage of revenues from new offshore leases that will be shared with coastal States to 50 percent.

1.

Short title

This Act may be cited as the Offshore Lease Fairness Act.

2.

Increased revenue sharing with States for leases within 3 miles of the coast line

(a)

Leases for activities authorized in OCS Lands Act

Section 8(g)(2) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(g)(2)) is amended by inserting after 27 percent of those revenues, the following: or, for leases entered into after the date of enactment of the Offshore Lease Fairness Act, 50 percent of those revenues, (b)

Leases for energy-Related activities

Section 8(p)(2)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)(2)(B)) is amended by inserting after 27 percent of the revenues received by the Federal Government as a result of payments under this section the following: , or, for any lease, easement, or right-of-way granted after the date of enactment of the Offshore Lease Fairness Act, 50 percent of those revenues,.

3.

Increased revenue sharing with States for leases beyond 3 miles of the coast line

(a)

Definition of new outer Continental Shelf revenues

Section 102 of the Gulf of Mexico Energy Security Act of 2006 (Public Law 109–432; 43 U.S.C. 1331 note) is amended— (1)by redesignating paragraphs (9) through (11) as paragraphs (10) through (12), respectively; (2)by inserting after paragraph (8) the following new paragraph: (9)

New outer Continental Shelf revenues

(A)

In general

The term new outer Continental Shelf revenues means all rentals, royalties, bonus bids, and other sums received by the United States from leases entered into after the period described in paragraph (10)(A)(i) for areas on the outer Continental Shelf (as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)). (B)

Exclusions

The term new outer Continental Shelf revenues does not include revenues and other amounts described in paragraph (10)(B). ; and (3)in subparagraph (A) of paragraph (10) (as redesignated by paragraph (1) of this subsection)— (A)in clause (i), by striking due and payable to the United States and all that follows through on or after the date of enactment of this Act and inserting received by the United States from leases entered into in the period beginning on December 20, 2006, and ending on the date of enactment of the Offshore Lease Fairness Act; and (B)in clause (ii), by striking on or after the date of enactment of this Act and inserting in the period described in clause (i). (b)

Disposition of new outer Continental Shelf revenues

The Gulf of Mexico Energy Security Act of 2006 (Public Law 109–432; 43 U.S.C. 1331 note) is amended by adding at the end the following new sections:

106.

Disposition of new outer Continental Shelf revenues

(a)

Disposition of revenues

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 fiscal year 2010 and each fiscal year thereafter— (1)50 percent of new outer Continental Shelf revenues shall be deposited in the general fund of the Treasury; and (2)50 percent of new outer Continental Shelf revenues shall be deposited in a special account in the Treasury, and the Secretary of the Treasury shall disburse such amount to coastal States under subsection (b). (b)

Allocation among coastal States

The amount made available under subsection (a)(2) shall be allocated to coastal States using rules substantially similar to the rules in paragraphs (1) and (2) of section 105(b), except that— (1)references in such paragraphs to Gulf producing States shall be treated as references to coastal States; and (2)new outer Continental Shelf revenues from leases in the Gulf of Mexico, the Atlantic Ocean, the Pacific Ocean, and the Arctic Ocean may only be allocated to States that are in, or that border on, the Gulf of Mexico, the Atlantic Ocean, the Pacific Ocean, and the Arctic Ocean, respectively.

107.

Timing and administration of disposition of revenues

(a)

Timing

Amounts required to be deposited under sections 105(a)(2) and 106(a)(2) for a fiscal year shall be made available in accordance with those sections for the subsequent fiscal year. (b)

Administration

Amounts made available under sections 105(a)(2) and 106(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. 4601–4 et seq.); or (C)any other provision of law.

. (c)

Conforming amendment

Section 105 of the Gulf of Mexico Energy Security Act of 2006 (Public Law 109–432; 43 U.S.C. 1331 note) is amended— (1)by striking subsections (c) and (e); and (2)by redesignating subsections (d) and (f) as subsections (c) and (d), respectively.